CHALLENGES IN CUSTOMER RETENTION IN BANKS

Dr. B. Anbazhagan, Associate Professor, Sourashtra College, Madurai.

B.C. Karthickeyan, MBA student, Institute of Cooperative Management, Madurai

ABSTRACT: The customers switching behavior is very severe in retail banking. In recent years, after
liberalization and operations of foreign banks in India, entire banking sector face challenges related
to customer switching. Diversified product offering, high quality of differentiated services, those
banks which deliver a customer focused high quality service alone can survive and retain its
customers. This study focuses on switching behavior of customers and suggests remedies and
strategies for customer retention.
Key words: Customer switching, retention, retail banking.
INTRODUCTION
In an era of mature and intense competitive pressures, many firms are focusing their efforts on
maintaining a loyal customer base. This is particularly true in the financial services sector where
deregulation has created an environment that allows consumers considerable choice in satisfying their
financial needs. In response, many retail banks are directing their strategies towards increasing customer
satisfaction and loyalty through improved service quality.
Improving customer satisfaction, and hereby retention rates, can come a variety of activities
available to the firm. The existing evidence suggests that major gains in customer satisfaction are likely
to come from improvement in Service quality, Service features and Customer complaint handling.
SERVICE FAILURES
Service failures are identified and classified in retail banking as
1. Banking procedures; Bureaucracy and slow banking; and Failure to keep customer fully aware of
their banking situation.
2. Mistakes
3. Employee behavior and training; Employee ignorant of certain banking procedures; and
Employee unwilling or slow to help the customer.
4. Financial/technical failures; Long and / or unorganized queues; ATMs out of order; Limited
network of ATMs; Limited network of branches; and Incomprehensible statement of accounts,
terms of loans, convention, etc.
5. Actions or omissions of the bank that are against the sense of fair trade.
RECOVERY STRATEGIES
The recovery strategies usually adopted by the banks are:
1.
Corrections: making things right, eliminating the cause of the initial dissatisfaction;
2.
Exceptional treatment of the complaining customers;
3.
Explanations with respect to what the bank had done wrong, had not done wrong and / or what
the customer do to avoid the same problem again;
4.
Apologies; e.g. from an employer or manager;
5.
Compensation: monetary or other;
6.
Redirection of the complaint to another employee or higher level of management;
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7.
Nothing, in response to the complaint.
The Antecedents of Switching Behaviour
The switching antecedents are several. It may be related to the specific problems, events and
non-service factors. The five major casual factors for switching behaviour among the customer in
banking are:
1. Core Service Failures
: Incidents due to mistakes or other technical problems with the service
2.Service encounter failures
: Problems due to the interaction between the service employee and
customer.
3. Service recovery failures
: Problems arising due to the failure of the service firm to resolve
previous complaints or problems.
4. Inconvenience
: Incidents where the customer felt inconvenienced by aspects of the
service, for example, waiting in queues or operating hours.
5. Pricing
: Problems associated with fees, charges, prices and price deals
associated with the service
REVIEW:
Kabiru Maitama Kura et al (2012) examined the antecedents of customer switching behaviour in
Nigerian banking industry. Customer switching behaviour in banks has become an important issue for
discussion among the researchers, policy makers and other stakeholders of the banks. From the
marketing literature, two antecedents of customer switching behaviour were obtained from factor
analysis, namely; assurance and empathy. The findings of this study revealed that there is a significant
positive relationship between: assurance and word of mouth communication; empathy and word of
mouth communication. The study also found a significant negative relationship between word of mouth
communication and customer switching.
OBJECTIVES OF THE STUDY
The specified objectives of the present study are:
1. To reveal the profile of the customers in retail banking;
2. To identify the important determinants of customer exit from the previous bank;
NEED FOR THE STUDY
Customer switching in service environments, that is customer sailing to one service provider
from another, is a well-researched topic in the services marketing and relationship marketing literature.
Much of the work has been in the realism of profitability of customer retention or minimization of
customer churn in services markets by studies carried out by Reich held (2006), Love man (2008) and
Garland (2010). Minimization of customer churn is a priority for most banks. Personal retail banking is a
typical subscription market characterized by customers not regularly switching among reparative of
brands (unlike fast moving goods), and giving most of their banking business to one or two suppliers for
long periods of time. Customer switching, defection or exit research in retail banking has received recent
attention from authors such as Ennew and Binks (2007), Danenberg, Sharp (2009) and Trulik and Smith
(2010). Hence, the present study focuses on the switching behaviour among the customers in retail
banking.
DATA
In the present study, the data used to fulfil the objectives of the study is only primary data.
SAMPLING PLAN
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Since the present study focuses on the customers in public, private and new private sector banks,
the sample of the study are drawn at the convenience of the researcher. A sample of 50 customers each
from the selected category of banks has been included for the study.
MEASUREMENTS
Customers are asked to mention determinants of their exit from previous commercial banks,
expectations and perception on the services offered by the present banks, service failure in the present
bank and their switching intentions
ANALYSIS PLAN
In order to fulfil the objectives of the study, the following statistical tools have been used
according to the nature of data and also the objectives of the study. The used statistical tools are:
1. Factor analysis
2. One way analysis of variance and
3. Index generation
LIMITATIONS
The present study is subjected with the following limitations.
1. No scientific sampling is applied
2. The study is confined to Retail Banking
3. The included banks are from public, private and new private sector.
4. The primary data collected from the customers are subjected with memory bias
5. The linear relationship is assigned between the dependent and independent variables
MAJOR FINDINGS
Determinants of the Customers Exit from the Previous Bank
The customers exit from the previous bank because of several reasons. The switching behaviour
is also termed as defection or customer exit. It refers to the decision a customer makes to stop
purchasing particular services or patronising the service firm completely (Bolton and Brmkhurst, 1993).
The antecedents of switching behaviour and the customers exit are several. It is related to service quality
and satisfaction (Zeithaml et.al; 1996). It may be related to specific problems, events and non-services
(Gardial et al., 1996). Keaveney (1995) identified five major causal factors for customer exit.
1. Core Service failures: Incidents due to mistakes or other technical problems in the service
2. Service Encounter failures: Problems due to the interaction between the service employee and
customers
3. Service Recovery Failures: Problems arising due to the failure of the service firm to resolve previous
complaints or problems.
4. Inconvenience : Incidents where the customer felt inconvenienced by aspects of the service for
example waiting in queues or operating hours
5. Pricing: Problems associated with fees, charges, forces and price deals associated with the service.
The determinants of customers exit in Retail Banking are identified from the previous reviews .
The identified determinants are inaccessibility poor in correction, inflexibility among the employees,
mistakes, lack of professionalism, rude, waiting timefor service, non-competitive borrowing rate, unfair
fees and charges, lack of information, unfair levy charges, non-competitive interest on savings, no
financial advice, denied service, un-knowledgeable employees, employees unwillingness to help, less
range of banking services, refusal of overdraft facilities, location of the bank, unsatisfactory problem
solved and poor response on complaint. The customers are asked to rate the above said 21 determinants
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at five point scale namely strongly agree, agree, moderate, disagree and strongly disagree. The mainly
assigned are 5,4,3,2 and 1 respectively.
The mean score of each determinant are calculated to exhibit the importance of determinants of
customer exit. The one way analysis of variance have been executed to analyse the significant difference
among the customers in three group of banks regarding their perception on the determinants of customer
exit. The results are shown in Table 1.

TABLE 1
Mean Score of various Determinants of Customer Exit from Previous Bank
Sl.No.
Determinants
Mean Score among Customers in
PSBs
PrSBs
NPrSBs
1.
Inaccessibility
3.9582
2.8105 2.3156
2.
Poor in Correction
3.8056
3.1136 3.2676
3.
Inflexibility among the Employees
3.7956
2.5055 2.8617
4.
Mistakes
3.6805
2.7078 2.5766
5.
Lack of Professionalism
3.9189
2.7642 2.4022
6.
Rude
4.0145
3.6856 3.1144
7.
Waiting Time for Service
3.4559
3.5083 2.8956
8.
Borrowing Rate
2.5702
3.6145 3.8182
9.
Fees and Charges
2.4405
2.9707 3.4066
10.
Lack of Information
3.8615
3.0256 3.2127
11.
Unfair Levy Charges
2.6036
3.4541 3.6185
12.
Non Competing Interest on Savings
3.7705
3.0956 3.2146
13.
No Financial Advice
3.8081
2.9142 2.4545
14.
Denied Service
2.9634
3.2689 2.3089
15.
Unknowledgeable Employees
2.8108
3.3144 2.1135
16.
Employees Unwillingness to help
3.8087
2.5345 2.4647
17.
Less Range of Banking Services
2.3034
3.8683 3.4075
18.
Refusal of Overdraft Facilities
3.4241
3.2189 3.1144
19.
Location of the Bank
3.1143
2.5696 2.8945
20.
Unsatisfactory Problem Solved
3.7808
2.9913 2.5663
21.
Poor Response on complaint
3.8089
2.5037 204402
* Significant at 5 per cent level.
The important determinants of customers exit among the customer in public sector banks are
Rude, lack of Professionalism, Inaccessibility and poor response on complaint since the respective mean
scores are 4.0145, 3.9189, 3.9582 and 3.8089 respectively. Among the customers in private sector banks,
these important determinants are less range of banking services, non-competitive borrowing rate and
rude since its measures are 3.8683, 3.0956 and 3.6856 respectively. The important determinants of
customers exit are non-competitive borrowing rate, unfair levy charges and less range of banking
services since its mean scores are 3.2146, 3.6185 and 3.4075 respectively. Regarding the perception on
the determinants of customer exit the significant difference among the customers in these group of banks
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FStatistics
5.1144*
2.0891
3.6309*
3.1416*
3.8084*
2.9196
1.3362
3.0689*
3.0114*
0.9697
3.0443*
0.8184
3.4962*
2.7084
3.2146*
3.3907*
4.1126*
0.5081
0.9173
3.1339*
3.2096*

is identified in the case of inaccessibility, inflexibility among the employees, mistakes, lack of
professionalism, non-competitive borrowing rate, unfair fees and charges, unfair levy charges, no
financial advice, unknowledgeable employees, employees willingness to help lesser range of banking
services, unsatisfactory problem solved and poor response
IMPORTANT EXPECTATIONS FROM THE PRESENT BANK
The important expectations from the present bank among the customers are narrated with the
help of factor analysis for further analysis. The score of the 19 expectations from the banks are included
for the analysis. Initially, the validity of data for factor analysis has been tested with the help of KMO
measures and Bartletts test of Sphericity. Since the above measures satisfy the validity of data, the factor
analysis has been executed. It results in four important expectations among the customers namely Value
Added Service, Service Quality, Product and Price. The Expectations included in the above said four
factors, its factor Loading, Reliability Co-efficient, Eigen Value and the Percent of Variation explained
by these factors are shown in Table. To find out the significant difference among the customers
belonging to these groups of banks regarding their level of expectation on four factors, the results are
shown in Table 2
TABLE 2
Important Expectations from the Present Banks
Factors
Expectations
Factor
Reliability Eigen
Percent of
Leading Co-efficient Value
variation
explained
Value Added Service
Premium Payment
0.8506
0.7568
3.1447
25.08
IT Clearance
0.8133
Financial Advice
0.7382
ATMs
0.6446
Remittance for various
0.6099
obligations
Credit and Debit Cards
0.5385
Service Quality
Reliability
0.9347
Responsiveness
0.8206
Right-at-first
0.7193
Competence
0.6391
Timeliness
0.5962
Product
Range of Loans
0.9337
Range of Deposits
0.8208
Range of Services
0.7069
Range of rate of Interest
0.6124
Price
Lesser Rate of Interest
0.8962
Lesser Fees
0.7411
Lesser Fines
0.6908
Lesser Charges
0.5817
KMO Measures of Sampling Adequacy 0.6914

0.7424

2.6808

19.36

0.7982

2.1423

16.72

0.7082

1.4643

14.13

Bontletts Test of Sphericity : ChiSquare : 82.43*

Significant at Zero Percent Level 75.29
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The narrated four factors explain the various expectations included in the study to the extent of
75.29 percent. The most important expectations among the customers are Value Added Service. It
includes six expectations with the reliability coefficient of 0.7568. It infers that the included six
expectations explain the value added service to the extent of 75.68 percent. The Eigen Value and the
Percent of variation explained by this factor are 3.1447 and 25.08 percent respectively.
The Second important factor is Service Quality. It consists of five expectations with the
reliability coefficient of 0.7424. The Eigen Value and the percent of variation explained by this factor are
2.6808 and 19.36 percent respectively. The last two factors narrated by the factor analysis are product
and price. The product consists of four expectations with the reliability coefficient of 0.7982 whereas the
price factor includes the same four expectations with the reliability coefficient of 0.7082. The factor
analysis results in four important factors.
CUSTOMER RETENTION STRATEGIES
1. Market Penetration Strategy
It is an act of satisfying the present needs of the present customers. This strategy aims to
avoiding possible loss due to probable obsolescence of bank services on account of ever changing
environment: because satisfying the same need of the same customer over a span of time results in
diminishing marginal utility for bank services.
2. Market Development Strategy
It is a strategy of satisfying current needs of new customers. This strategy aims at increasing the
bank market share and its profitability by covering untouched market segments by proper sales
promotion policies.
3. Product Development Strategy
It is a strategy of satisfying new needs of present customers. Basically, customers needs are
repetitive, multiplicative and dynamic in nature. They go on varying in nature and number with the
march of time. Therefore, this strategy aims at exploring the new wants and thereby innovating new
deposit schemes, credit schemes, ancillary services, etc.
4. Product Diversification Strategy
It is a strategy of satisfying new needs of new customers. Besides, controlled credit-based and
deposit-based services the banks have to increase their service-base by way of service diversification.
For example, tax plans for salaried people and businessmen, wealth tax planning for industrialists, gift
tax planning for donors, investment counselling for savers, factoring for businessmen, travellers cheques
and credit, debit-cum ATMs for tourists etc., project feasibility guidance for entrepreneur etc. must be
undertaken and strengthen the existing schemes on a massive scale to satisfy all types of customers.
5. Strategic Customer Relationships
Although the decision ultimately rests with the customer as to whether or not a relationship will
exist this can play a part in influencing this decision. However, this needs a carefully planned through a
reliable strategy and a genuine understanding of customers. The managers are needed to find out about
customers whole lives, not just the time that they use banks product or service. If the Managers find out
what problems or challenges they face then more often than not they will be able to find a service that
fills a need or solves a problem.
CONCLUSION
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The study concludes that the important determinants of customers exit from the previous banks
are service encounter failure, service recovery failure, core service failure, pricing and inconvenience.
The important factors among the customers in public sector banks are service encounter and recovery
failure whereas in private sector banks this is service recovery failure. In the case of new private sector
banks, it is pricing factor. The customers select the present banks for its value added service, service
quality, product and price. The customers perception on the above said four factors are not up to their
level of expectation, expectation especially in private and new private sector banks. The important
service failure identified in the present banks among the customers are unwilling employee and
unjustifiable high rate in private and new private sector banks whereas slow approval of proposal in
public sector banks. Maximum number of customers has the switching intention. The significantly
influencing independent variables on the switching intention are SERVQUAL score. On value added
service and service quality. Maximum number of customers prefers public sector banks from private
and new private sector banks influence or they prefer other banks within the same category of banks.
Hence, the study concludes that the customers switching behaviour is very severe in retail banking. If
the bank is delivering the customaries products, they can retain the customers.
REFERENCES
1. Hirschman, A.O (1970), Exit, Price and Loyalty, Harvard University Press, Cambridge M.A,
Stewart, K. (1994), Customers Exit: Loyalty issues in Retail Banking: Irish Marketing
Review, Vol. 7, pp. 45-53.
2. Bolton, R.N. Brmkhurst ,T.M. (1995), The Relationship between Customer ComplResearch, Vol.
22, pp.92-100.
3. Zeithaml, V.A, Berry, L.L. Parasuraman, A (1996), The Behavioral Consequences of Service
Quality, Journal of Marketing, Vol. 60, pp.31-46.
4. Gardial S. Flint, D. Woodraffe, R (1996), Trigger Events: Exploring the Relationship between
Critical events and Consumers Evaluations, Standards, Emotions, Values and Behavior, Journal
of Consumer Satisfaction, Dissatisfaction and Complain Behavior, Vol.9, pp.35-49.
5. Keaveney, S.M. (1995), Customers Switching Behavior in Service Industries- an Exploratory
Theory, Journal of Marketing, Vol.59, No.2, pp.71-82.
6. Reichheld, F.F., Consumer Buying intentions and Purchase Profitability: An Experiment in survey
design, International Journal of Bank Marketing, 16(3), pp.19-32.
7. Loveman, G., Employee Satisfaction, customer loyalty, and financial performance, Journal of
Service Research, 1(1), pp.18-31.
8. Garland, R., Non-financial drivers of customer profitability in personal retail banking, Journal of
Targeting, Measurement and analysis in Marketing, 10(3), pp.232-248.
9. Ennew, C., Bink, M., The impact of service quality and service characteristics on customer
retention: Small business and their banks in the UK, British Journal of Management, 7(1), 2007,
pp.219-230.
10. Danenberg, N. Sharp, Examine the predictive ability of two loyalty segmentation approaches,
Proceedings of market research society of Australia Conference, 2009, pp.1-16.

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A STUDY ON PRE-PURCHASE BEHAVIOR OF CONSUMER DURABLES IN CHENNAI

CITY
Ms. R.Priya, Assistant Profrssor, DOMS, MSCAS, Sholinganallur, Chennai.
Dr.N.Rajasekar, Professor, Thiagarajar College, Madurai.

Abstract: Marketing is possibly the most important activity a business can partake in. Even the most
brilliant products and services wont survive without marketing efforts. The marketing umbrella
covers many different fields, from advertising to public relations to promotions to sales. Marketing
combines all of these fields in order to introduce product or service to potential customers. If youre
not using the channels in the best way, your potential customers wont know about your product or
service. The entry of multinational players the competition in the two durables segment is increasing.
As a result customers are getting a wider choice of brands at different price slots and at high
standards of quality. Under this scenario this study explores individual consumer buying dynamics
and consumer buying behaviour. It will be helpful to producers to design and redesign marketing
strategies to influence consumption decision of buyer. The present paper is undertaken to study the
influence of pre-purchase behavioural factors of the durable buyers and their responses to
understand the perceptions about time elapsed between conceiving of idea and realization of it,
demographic factors influence over it, and different sources of information pursued by the customer
before making the purchase.
INTRODUCTION
Consumer behaviour studies how things like thoughts, culture and motivations impact how and
why people buy products and services. Consumer behaviour is a specialty area that studies how our
thoughts, beliefs, feelings and perceptions influence how people buy and relate to goods and services.
Consumer behaviour is useful in how consumers choose businesses, products and services, the thought
processes and emotions behind consumer decisions, How
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Environmental variables such as friends, family, media and culture influence buying decisions, what
motivates people to choose one product over another, how personal factors and individual difference
affect people's buying choices, what marketers can do to effectively reach out to their target customers.
PRE-PURCHASE BEHAVIOR
It has been set as one of the objectives of this study to examine the relative importance of the
information sources used by the consumer; were collected from the buyers of durables in the district. In
addition to the above, the influence of demographic variables over the time gap between contemplation
of buying and actual buying of durables is also undertaken.
The variables selected are:
_ Time gap between intention and actual purchase
_ Type of Information sources explored by the customer before making purchase.
REVIEW OF LITERATURE
Aradhana Krishna (2003) viewed that buyers purchase behaviours can be influenced not only by
the current prices of a product but also by those prices expect in the future.
Bhawaniprasad and Kumari (1987) have analyzed Impact of advertising on consumer durables
markets: A study of Refrigerator consumer, in this study a ranking/importance of refrigerator
among other consumer durables is studied. Study of 200 owners of Allwyn refrigerator in the
twin cities of Hyderabad and Secunderabad and Districts of Nizamabad and Karimnagar in
Andhra Pradesh indicates that a very positive impact of advertising is found on the consumer
durables market.
Bayus (1991) studied The consumer durable replacement buyer, and found that replacements
account for a substantial portion of the sale of consumer durables in the U S. Results of
replacement of automobiles indicate that early replacement buyers are more concerned with
styling and image and less concerned with costs than late replacement buyers.
Gupta & Verma (2000) have done a study under convenience sampling of 50 household of New
Delhi by questionnaire. It indicates that husbands influence is considerably higher that the
wives. Children also play an active role in brand selection of CTV.
Jain and Sharma (2000) studied 584 respondents out of 800 questionnaires of Delhi in five
professional category observed that selected products represent different product categories in
terms of both durability and frequency of purchase as required. Study shows that the levels of
consumer involvement differ across products. As against non-durables, consumer perceives
durables as more involving products.
Mujahid-Mukhtar E, Mukhtar H (1991) has studied role of decision making for household
durables: good measure of women's power within a household in Pakistan. It is their influence in
the purchase of new home improvement technology good (cars, appliances, etc.), whos expense
and life-long nature makes their purchase an important decision. The study identified various
cultural and economic factors that affect women's decision making power
SRI IMRB (2000) evaluated a comparison of the education and income levels of different
clusters, and it indicated that those who give higher priority to consumer electronic products are
more educated and affluent. The study also revealed that transportation durables preceded
consumer electronic products in the acquisition hierarchy, suggesting a tactical approach.
Venkteshwar and Rao (2000) have focused on tracing and identifying the elements in consumer
decision-making; the research has studied 200 urban workingwomen belonging to different
occupation, educational and income groups. Study observed television as a major source of
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information, for 65.5% consumers. While group forces affects 50% respondents. Surprisingly
45%-employed women still feel radio as a source of information
IMPORTANCE OF THE STUDY
The trends of liberalization, privatization and globalization had given a high impetus to the
durables industry and in specific to the motor bike industry. A few decades ago there were only few
durable manufacturers and models, today there are a dozen manufacturers and a few dozen durable
models in the country. In this context a study of buying behaviour of durable buyers would be relevant in
throwing light upon the various dimensions of purchase behaviour. In a fierce competitive market
analysis of factors that influence purchase decisions are prerequisite for the manufacturers of durables,
because it enables them to have an understanding of the current and future trends of durables purchasers.
It can also help the marketers of durables based on consumer behaviour to formulate marketing
strategies regarding their product positioning and targeting.
STATEMENT OF THE PROBLEM
Due to the stiff competition in the durables segment customers have a wider choice in terms of
number of brands, models and features at different price slots, and all these transformed the expectations
of the customers. Now the customers are expecting the manufacturers to provide the products as per
their tastes, preferences, habits, and lifestyles. The study of pre purchase behaviour of durable buys is
more appropriate to todays marketing environment because customers are more conscious and
particular about the products and services they want to have. If the firm/marketer fails to understand
what their customers want, the products launched by the firm will be rejected in the market. In order to
improve the new product success rate and to ensure customer acceptance one has to make an effort to
learn everything what one could about their prospective customers regarding their needs, preferences,
changing lifestyles, income levels and their purchasing patterns.
OBJECTIVES OF THE STUDY
1. To ascertain the time gap between intention (contemplation) to buy and actual purchase of durables by
the customers.
2. To analyze the demographic factors influence over the time gap between intention to buy and actual
purchase of durables.
3. To study and evaluate the different sources of information used by the customers and their role in the
purchase decision.
HYPOTHESES
1. There is no significant difference among various advertisements which are as source of information in
the purchase decision.
2. There is no significant difference of demographic factors influence over the time gap of contemplation
of buying and actual buying of durables.
TIME GAP BETWEEN INTENTION TO BUY AND ACTUAL PURCHASE
Consumers delay a purchase decision because they are too busy, do not like shopping, fear of
making wrong decisions, price may decrease or better item may be available, social risk (not meeting
approval of society).
In addition to the above factors the customer have to consider various other factors while purchasing
a durables namely selection of dealer, taking the advantage of discount facility, choice of model, wait for
auspicious day, mode of payment i.e. to buy in cash or credit or hire purchase etc. The time taken by the
consumer from the time he/she first thought of purchasing a product to actual purchase is an important
issue. In other words it can be said that it is the gestation period between need recognition and actual
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purchase. The first step in any type of consumer decision process is problem recognition. This occurs
when an individual perceives a difference between an ideal and actual state of affairs at any given point
of time. When it occurs, the human system is energized, and goals orientation starts. Seemingly
unrelated activities now become organized to satisfy this state of arousal. In other words it can be said
that, the system is turned on and activated to engage in purposeful activity. So it is at this stage that the
consumer starts thinking of purchasing a product, this is called contemplation.
FINDINGS
1. Demographic factors showed an impact over the purchase decision of the durable buyers.
2. 60.72% Respondents are in the age group of 26-45 years.
3. There are 71% respondents whose income level is between Rs10, 001 to 30,000.
4. Respondents who are graduates and post graduates are 63.8%, below intermediate are 27.3%.
5. 46.82% respondents are private employees, 22.22% are business people, 19.04% are students, and
7.14% are government employees.
6. It is observed that 52.11% respondents took up to a month time to purchase the durables from the time
of contemplation, and 35.31% respondents took 1 to 3 months time to purchase the durables from the
time of contemplation.
7. 40.48% respondents are in the age group of 26-35 years out of which 45.86% respondent took a
month time.
8. Out of 52.11% respondents who took up to one month time, 51.88% and 24.81% respondents are in
the category of Private employees and Business respectively.
9. The study revealed that 24.18% respondents received information about the product through press
advertisement. And 23.85%respondents used Word of Mouth advertisement as a means to get the
required information about the product, 20.38%, 20.28% and 11.31% respondents used Out Door
advertisement, Electronic media advertisement and Direct advertisement respectively to get information
about the product.
10. News paper received highest responses of 56.3% out of the responses who responded to the question
of print media.
11. In the Outdoor advertisement category, 21.4% respondents favoured show room displays; and 13.1%
respondents favoured Boards, 11.5% respondents said they came to know about the product through
exhibitions
12. Out of 152 respondents, 67.1% respondents said that they came to know about the product through
Television (TV).
13. Among the word of mouth communication, friends played a key role in spreading the message
because 56.0% respondents saying that they came to know about the product through friends.
14. From the hypothesis testing it is concluded that there is significant difference among different
sources of information.
RECOMMENDATIONS/SUGGESTIONS
1. Students and private employees are taking up to a month time to realize the sale and they are in the
age group of 26-35 years, so focus more on this segment because this age group people change their
mind frequently.
2. Financial problem and waiting for special occasion are the main reasons for waiting to take decision
so; the companies must see that some kind of financial arrangement should be made either with banks or
with private financial institutions so as to provide quick and soft loans to customers.
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3. Follow up of customers should be made after the first enquiry of the customer regarding the product;
otherwise sometimes customers may lose interest.
4. Generally few people use multiple sources of information, in addition to a single source of
information to have an idea about the product they intend to buy. From the research it is evident that
people used a combination of information sources, among these displays and demonstrations played a
key role in spreading the product information so put more emphasis on this.
5. News papers, displays, television price list proved to be effective in spreading the communication so
lay more emphasis on this too.
6. Friends in the category of word of mouth plays critical role in spreading the communication, so
develop customer relationship development programs to encourage the customers to spread good word
of mouth publicity regarding the product.
CONCLUSION
From the Chi-Square test it is evident that demographic factors of the durables buyers showed
influence over the purchase decision of durables with respect to time gap, it is also evident that
consumers are not buying the product immediately after getting off idea, invariably they are taking some
time to purchase the product, majority of the customers are taking one to three months time gap between
contemplation to buy and actual buying of the product. Customers are using multiple sources of
information to know about the product. Out of the available sources of information newspapers,
television, price list and displays remained as an important source of information. Friends are the most
important source of information in the category of word of mouth publicity.
REFERENCES
ALBA JOSEPH W (1994). Dimensions of Consumer Experts: Journal of Consumer Research Vol
24.
BHASKAR RAO N. The Eighties Buying Binge The Economic Times Brand equity, July 3,
19991.
DEEPA RAO: Consumer A King, A Slave and an Advisory, Indian Journal of Marketing, Vol
XXIX, March 1999.
KHARKIWALE F.I.: Consumer Awareness, Indian Journal of Marketing, Vol XXIX, April 1999.
MUKESH DHUNNA: An analysis of Consumer Behaviour, Indian Journal of Marketing,
VoXXXVIII, March 1995.
SENGUPTHA J.S.: Consumer Behaviour on Durables: Analyses, Southern economist, March
2011
RAVICHANDRAN.M. (1988). Consumer perceptions and purchase Decisions. A study of
Urban and semi urban consumers of durable goods. Unpublished PhD Dissertation, Dept of
Commerce, University of Madras (June).
RONALD P.HILL. (1987). The Buying process: Effects of and on consumer mood states.
Advances in consumer research, vol.XIV, and p.435.
SEKAR.S, Consumer values in product consumption patterns, a study based on selected
income groups in madras city. Dept of commerce, University of Madras 1985.
TERRENCE V. OBRIEN, Tracking Consumer Decision-making . Journal of Marketing,
January. Vol.35 (1); pp.34-40.

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CHALLENGES OF LEADER IN THE 21ST CENTURY

Dr. A.Ashok Kumar, Professor, Karpagam University, Coimbatore.
Mrs. R.Preetha, Lecturer, Karpagam University, Coimbatore

ABSTRACT: Idealizing leadership blinds us to its real essence. Leadership must be better aligned
with a world that is too complex and fast changing for one person to provide all the answers. It
explains about the roles have to play by the leader to overcome the challenges. In summary, the 21st
century poses a range of challenges to organizational leaders. Globalization, talent shortage,
demands for flattened hierarchies and the search for the right kind of leadership force leaders to
adapt.
INTRODUCTION
The ideal leader has vision, charisma, integrity, emotional intelligence, an inspiring delivery and
sterling character. But if there are leaders who dont fit this image, then we cannot use our ideal to define
leadership in general.
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Idealizing leadership blinds us to its real essence. We need to stop viewing the leader as a type of
person in charge of a group. Instead, we need to see how leadership can come from anyone who shows it
as in an occasional, discrete act of influence. Leadership must be better aligned with a world that is too
complex and fast changing for one person to provide all the answers. If crowds are wiser than
individuals, then the lone, heroic, ideal leader is a liability.
IN 21st CENTURY
It presents many new challenges for both employees and business leaders. In an interconnected,
fast moving world, the leader has to learn cognitive flexibility, stress tolerance, and divergent thinking.
While technology can make us more effective, new theories of leadership emphasize the importance of
trust and establishing long-term relationships. In a competitive world, the leaders with novel ideas, who
are willing to take risks, inspire and motivate, and build new strategic partnerships to address global
challenges. In these endeavours, leaders need to incorporate skills that are more in the realm of
psychology and cognitive science. The leader should possess the below mentioned uniqueness.
CONTRIBUTE INIMITABILITY
To stand out, you have to be original. Being original involves taking time to really think about
material that you hear or read. A leader should have an original perspective that inspires people. The
leader should find a novel way to communicate key concepts or approach a problem.
ACT SUCCESSFULLY
Its not about getting things done quickly or doing the most activities in the shortest time. The
leader should take time to formulate a vision and set priorities and goals. Find a balance between doing
the urgent and important things.
BE ELASTIC
The truth is that everybody makes mistakes. The bigger your goals, the more mistakes you will
make. Being innovative means trying new things; and venturing where nobody has gone before. Its
easier to do things the way theyve always been done, but your long-term impact will be less.
If the leader want to have a memorable and long-term impact, then the leader will have to take
strategic risks, and that may mean failing or messing up sometimes. Self-confidence is the key. This
comes from having prior successful experiences. Even if youre doing something new, remember your
prior successes, and the personal qualities you have that created them.
EMBRACE CHANGE
We live in a time of rapid technological, geographical, and economic change. Old formulas don't
predict as well, anymore. New knowledge about the brain and human genome is already leading to
radical new ways of viewing the world. Mobile technology makes the world smaller and increases the
access and knowledge of constituents who previously had no voice. This creates many challenges, but
also opens the door to new opportunities.
GENERATIONAL SHIFT IN ATTITUDES
If you dont know whether you are a baby boomer, generation X or generation Y you need to find
out fast, before you make the major mistake of assuming that other generations are motivated by the
same things that motivate you.
SOCIAL MEDIA AND THE WEB
Are you a bit sceptical about all this social media stuff especially Twitter? Yep, that used to be
me. This is what changed my mind: who influences you more, formal company advertising or what your
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friends and other people like you say about a product or service? Thats why social media is big and will
only get bigger. Business leaders who dont get it will struggle.
FLEXIBLE WORKING
As frugal times continue why would any organisation want to pay for offices and desks that are
unused half the time? If your company hasnt yet moved towards flexible working it soon will. Flexible
hours, flexible workplace (including home working) and flexible contracts
SUSTAINABILITY
The hard facts of rising energy prices and climate change on the one hand, and the beliefs and
values of Gen Y on the other, are driving every organisation to become more sustainable. Becoming
sustainable while to make profits is a major challenge for every organisation and every leader.
DOING MORE WITH LESS
Whether you live in rapidly growing China or recession hit Europe the days of organisational
profligacy are over. Every business is learning to do a lot more with a lot less, and the most successful
leaders will be those who can triumph with frugality.
Leadership is confronted with large changes and challenges in the 21st century.
Due to digitalization and interconnectivity, value is usually not created locally anymore, but
across borders and even continents; complexity thereby naturally increases, minimizing the
predictability of future developments. Organizational boundaries are becoming progressively pervasive
and working relationships more and more flexible. Innovation is often created outside the firm,
enhancing interdependencies. Knowledge grows exponentially, speeding up business and creating
immediate pressure to act. Little time remains to develop long term strategies. Leaders are increasingly
in the public eye, with numerous stakeholder groups enforcing their claims. All these changes pose
sufficient challenges to organizational leaders: The racial diversity of the workforce increases, making
cross-cultural leadership skills necessary.
Globalization and diversity, being able to effectively lead multinational companies and a racially
diverse group of employees requires the acquirement of cross-cultural leadership skills.

Effects of leaders' emotion display on trust, power, and willingness to lead

In summary, the 21st century poses a range of challenges to organizational leaders.
Globalization, talent shortage, demands for flattened hierarchies and the search for the right kind of
leadership force leaders to adapt. Cross-cultural leadership training, improvement of selection and
assessment processes as well as shared and collective ways of exerting leadership might support leaders
in mastering these challenges. On the behavioral side, instead of focusing on leadership styles, leaders
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should concentrate on building trusting and just relationships with their followers. Showing positive
emotions towards followers might be an effective tool to reach this goal.
REFERENCES
www.21stcenturyleader.co.uk/.../six-challenges-for-21st-century-leaders
www.theguardian.com/.../future-leaders-sustainability-21st-century
www.psychology.edu/blog/the-21st-century-leadership-challenge/
www.ascd.org/...leadership/.../21st-Century-Skills@-The-Challenges-Ahead.aspx
www.leadership.org.uk/files/uploads/55.pdf
www.achieveglobal.com/.../AchieveGlobal_21st_Century_Leader_Report.pdf

The Impact of TV Advertisement on Buying Behaviour:

A Comparative Study of Urban and Rural Teenagers in Chennai.
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Mrs. M. Rajee, Research Scholar, SCSVMV University, Kanchipuram.

Dr. K. Shyama Sundar, Research Supervisor, SCSVMV University, Kanchipuram.

Abstract: This study aims to establish whether the residential background of consumers has a varying
influence on their buying decisions due to the influence of TV advertising. The study was conducted
on 256 teenagers of Chennai (135 male and 121 female) of which 126 were rural and 130 were
urban. The data was analysed by applying counts, percentages, means and ANOVA. The study
suggests that rural teenagers like television advertising more than their urban counterparts. TV
advertising has enhanced their involvement in product selection and purchase, they prefer to buy TV
advertised products and it is helpful in buying the new products. The urban teenagers do not buy TV
advertised products if they do not require those brands. They also like the advertisements of the
products that they are using and believe that products are as good as expected from TV
advertisements. Male teenagers buying behaviour is more influenced by television advertisements
than their female counterparts.
Key Words: Teenagers, impact, television, advertising, rural
Introduction
Advertising is the non-personal communication of the information usually paid for and
persuasive in nature about products, services or ideas by identified sponsors through the various media
(Datta, 2008). The advertiser intends to spread his ideas about the products and offerings among the
prospects. Popularization of the products is thus, the basic aim of advertising (Ramaswami &
Namakumari, 2004). The majority of the marketers use mass media for their marketing communications.
The choice of media is dependent upon the nature of the message and the intended target audience (Etzel
et al, 2008). Television advertising is the best selling and economical media ever invented. It has a
potential advertising impact unmatched by any other media (Saxena, 2005). The advantage of television
over the other mediums is that it is perceived as a combination of audio and video features; it provides
products with instant validity and prominence and offers the greatest possibility for creative advertising
(Kavitha, 2006). Over a longer period of time, the TV set has become a permanent fixture in all upper
and middle class households, and it is not uncommon even in the poorer society of urban areas and rural
households (Shah & DSouza, 2008). Reactions to TV advertisements seem to be stronger than the
reaction to print advertisements (Corlis, 1999). The advertisers find it more effective to use television
rather than print media to reach consumers, partly due to low literacy rate (Ciochetto, 2004). TV
advertising not only change emotions but give substantial message exerting a far reaching influence on
the daily lives of people (Kotwal et al, 2008).
Advertisers through television can reach a whole spectrum of consumers. The children are
exposed to an overwhelming amount of advertising (Cruz, 2004). A young child in the age group of 1319 constitutes teenager. Almost every child and teenager in India is a regular viewer of television. They
spend most of their free time in front of television, watching programmes and channels of their choice
(Dubey &Patel, 2004). They watch nearly 20,000 TV commercials a year. The majority of children
believe television advertisements to be informative and most children respond to them favourably (Cruz,
2004). They also exert a substantial influence on their parents consumer decision making and spending
(Hawkins et al, 2001). The greater TV exposure is associated with more requests for the advertised
products (Robertson & Rossiter, 1977). Parents in dual income families have more discretionary income
and are busier and feeling guiltier and therefore are softer when it comes to teenagers requests (Sellers,
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1989). Marketers, who take advantage of young peoples power to influence family purchase, choose
commercials or television programmes that reach children or teenage youth together with their parents
(Kraak & Pelletier, 1998). The teenagers have become a strong influencing group and even have the
ability to influence the purchase decisions in the family from cakes to cars (Shashidhar & Adivi, 2006).
India is a developing country and majority of the people are living in rural areas (Census, 2001). Rural
consumers are fundamentally different from their urban counterparts socially, psychologically,
physiologically and literally (Selvaraj, 2007). The total size of rural market is 123000 crore, which
includes 65,000 crore FMCG and 5,000 crore durables, 45,000 crore agri inputs and 8,000 crore two and
four wheelers market. The size of rural market is bigger than the urban for both FMCG and durables as
it accounts 53 and 59 percent of the market share respectively (Kashyap & Raut, 2008). Hence, the
buying behaviour of rural consumers has become a hot-topic for discussion because rural India, in recent
days, is enthusiastically consuming everything from shampoo to motor cycles (Nagaraja, 2004). Having
realized the varying effects of TV advertising not only on the purchasing pattern but also on the total
lifestyle of teenagers, this paper is an endeavour to study the impact of TV advertisements on the buying
behaviour of the male and female teenagers of different residential backgrounds.
Review of Literature
Indian advertising is a billion dollar industry today, and at a growth rate of 40-50% per annum,
one of the fastest growing industries in the country (Unnikrishnan & Bajpai, 1996). The
television medium is the most attractive and important place to advertise. Most of the young
people remain glued to the television and enjoy what they see. As a wide range of products and
services are consumed or used by children, many companies tend to target them (Chandok,
2005). The National Readership Survey IV and V estimated that 77% of urban population and
30% of rural population has access to TV sets. The rural viewership is expected to go up to 4548% by 2020.
As the number of TV sets increases, the appetite for entertainment of Indian viewers has
increased dramatically but there is fragmentation of viewership due to availability of variety of
channel/programme options. These programmes reach to nearly 90% population of which 500
million Indians (nearly fifty percent of population) watch television regularly as per Statistics of
Doordarshan and other researchers (Saxena, 2005). Saksena (1990) found that teenagers were
influenced by TV advertisement and mostly purchased those brands and products which are
advertised more on television.
The girl teenagers are more attracted toward TV advertisements featuring celebrities, children or
jingles (Dubey & Patel, 2004). While purchasing cosmetics, toiletries, stationary, gifts and cards,
the girls give importance to informational input by the TV advertisements into their decision to
buy. It was also found that girls had positive attitude towards TV commercials (Kotwal et al,
2008). The reason for higher response rate among females for products could be the higher
number of advertisements is targeted at them (Dubey & Patel, 2004).
In the recent past rural India has been witnessing a sea change particularly in the standard of
living and life styles. With the population of over one billion, India is on the threshold of
becoming one of the worlds foremost consumer markets. About a quarter of this huge mass of
consumers is urbanized and about three-quarter are rural (Sehrawet & Kundu, 2007). Ramana
Rao (1997) observed that the boom in rural areas is caused by factors such as increased
discretionary income, rural development schemes, improved infrastructure, increased awareness,
expanding private TV channel coverage and emphasis on rural market by companies.Thus, it can
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be said the marketers and advertisers who are having eyes on this market, must perceive
opportunities to target rural consumers of India which is full of young generation (Selvaraj,
2007). Kaur and Kaur (2002) explored fashion awareness among rural and urban adolescents.
They observed that television is the most important media of information regarding fashion
awareness among rural and urban respondents.
North and Kotze (2001) observed that parents can use television advertisements in various ways
as a means of communicating and educating their children on consumer matters. According to
Liebeck (1998) teenagers are now more knowledgeable. They are truly the internet generation,
and get their news and information primarily from television. Atkin (1978) observed that children
or adolescents are most influential when they are primary customers. There is a substantial
variation in the amount of teenagers influence in purchase decision for products for their own
use and for their family (Cotte & Wood, 2004).
All the products used by a customer are not necessarily those of advertisements they liked. The
key lies not only in the attractiveness of the advertisements, but also the interest of the target
(Dubey & Patel, 2004). For advertisers, India could represent a golden opportunity for airing
television advertisements (Fam & Waller, 2008).

Objective of the Study

To study the impact of TV advertisement on the buying behaviour of teenagers in Chennai
Hypothesis of the Study
H01 There is no significant difference in the opinion of rural and urban teenagers regarding the
influence of TV advertising on their buying behaviour.
H02 There is no significant difference in the opinion of male and female teenagers regarding the
influence of TV advertising on their buying behaviour.
Research Methodology
The present study is focused on the school/college going teenagers of Chennai to know the
influence of TV advertising on their buying behaviour. While conducting the survey, due care was given
to the respondents of different walks of life, i.e. different gender, area of residence, educational
standards, economic backgrounds and age groups. It was decided to involve teenagers in the age group
of 13-19 studying in, grade 7-9, 10-11 and 12 & above in the survey and were regular viewers of TV. A
comprehensive questionnaire was constructed covering 30 variables related to the impact of TV
advertising. Besides general information about the respondents, different issues related to the impact of
TV advertisements were addressed. Out of these only one issue related to buying behaviour was
considered.
Analysis & findings
Only 14dependent variables (Table 1) related to this study out of the total 30 dependent variables
were selected and analysed. All the responses on variables related to this study were obtained on 5-point
scale (from point 5 for strongly agreeing with the statement to point 1 for strongly disagreeing). The one
way analysis of variance (ANOVA) has been applied to analyse the dependent variables from the point
of view of gender and area of residence. The scale of variables was also put to reliability test and the
obtained value of Cronbachs alpha was 0.759, which is considered satisfactory.
Table: 1 Description of Variables
Variable No. Description
V1
I like TV Advertisements
V2
I often wants Products seen in TV Advertisements
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V3
V4
V5
V6
V7
V8
V9
V10
V11
V12
V13
V14

TV Advertisements increases the frequency of purchase

Exposure to TV Advertisements has enhanced my involvement in purchasing
I mostly purchase products shown in TV advertisements
I feel TV advertisements makes the purchase of the products easier
I have started experimenting news products due to TV Advertisements
I committed in the process of Buying TV Advertised Products
I feel the demand for products purchased shown in TV Advertisement
I feel good to watch the TV ads
TV ads help me to find the Superior Products
TV Advertisements induce me to buy the Products, even though I do not require them.
My family members collectively decide to buy the products shown in TV advertisements.
Quality of Product is as good as expected from TV Advertisements
As mentioned in the research methodology, the scale consisting of 30 dependent variables
was analysed related to the impact of TV advertising. Out of these only one issue related to buying
behaviour was considered. Therefore, only 14 variables relating to this study were selected and analysed.
The results of ANOVA state that there is no significant difference in the views of male and female
teenagers (P0.52) on the liking of TV advertisements. This is also evident from the minimal variations
in the mean scores (i.e. male, x = 3.89 and female x =3.85). Further, the rural and urban consumers
vary significantly (P0.03) on this issue. Mean scores also reveal that the rural teenagers (x =3.93) like
television advertisements more than their urban counterparts (x = 3.81). Teenagers of different gender
groups (P0.17) and residential background (P0.77) do not vary in their views on the variable that they
often want products seen in TV advertisements. This is also endorsed by the mean scores. The variable
that the frequency of purchase increases due to TV advertisements has an insignificant influence on
teenagers of different gender groups (P0.29) However, the impact of this variable differs significantly
(P0.00) according to the residential background. Rural teenagers (x =3.62) are comparatively more
influenced than the urban (x =3.33) respondents on this parameter.
Conclusion
The study suggests that rural teenagers like television advertising more than their urban
counterparts. TV advertising has enhanced their involvement in product selection and purchase. They
prefer to buy and experiment with the new products. Rural teenagers collectively decide with their
family members, products to be purchased due to exposure to TV advertisements while it is not so with
their urban counterparts. The urban teenagers do not agree to buy the advertised products if they do not
require them. They like the advertisements of the products they are already using and believe that the
quality of the product is as good as expected from TV advertisements. It can also be concluded that there
is a considerable variation in the perception of both rural and urban teenagers on the issue that demand
for product purchase is influenced by TV advertisements. Further, the study also revealed that the buying
behaviour of male teenagers is more influenced by television advertisements than their female
counterparts.
References
[1] Atkin Charles K. (1978) Observation of Parent-child Interaction in Supermarket Decision -Making,
Journal of Marketing, Vol. 42, No. 4, pp. 41-45.
[2] Beatty Sharon E. and Talpade Salil (1994) Adolescent Influence in FamilyDecision Making: A
Replication with Extension, Journal of Consumer Research, Vol. 21, No. 2, pp. 332-341.
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[3] Chandok Anil (November, 2005) Impact of Advertisements on Childrens Buying Behaviour,
Marketing Mastermind, pp. 41-46.
[4] Ciochetto, L. (2004), Advertising and Globalisation in India, Massey University,
Wellington,NewZealand.www.arts.manchester.ac.uk/ecmsas/panels/ecmsaspanel17to24/panelpdfs/File
uploadmax10Mb, 134388, en.pdf, accessed on 19.01.2007.
[5] Cotte, J. and Wood, S. L. (2004) Families and Innovative Consumer Behaviour: A Triadic Analysis
of Sibling and Parental Influence, Journal of Consumer Research, Vol. 31, No. 1. pp. 78-86.
[6] Datta Srinivasa (April, 2008) Advertisements Do They Match Consumer Preferences? Marketing
Mastermind, pp.59-62
[7] Dubey Jayashree and Patel Rajni P. (2004) Ads that Work with Youth, Indian Management, Vol.
43, No. 10, pp. 68-74.
[8] Etzel Michael, Walker Bruce J., Stanton William and Pandit Ajay (2008), Marketing- Concepts and
Cases, 13th Edition, Tata Macgraw, New Delhi.
[9] Fam Kim-Shyam and Waller David S. (2008) A Study of Liked/Disliked Television Commercials in
India, Indian Journal of Marketing, Vol. 38, No. 2, pp.3-10.
[10] Fox, R.F. (1996), Harvesting Minds: How TV Commercials Control Kids,New Haven, CT: Praeger.
[11] http://www.censusindia.gov.in/census_data_2001 accessed on September 30, 2008.
[12] Hawkins, D., Best, r. and Coney, K. (2001), consumer Behaviour: Building Marketing Strategy, 8th
Edition, Mc Graw Hills, Boston.
[13] Kaur, H. and Kaur, R. (2002) Fashion Awareness among Rural and Urban Adolescents, Journal of
Social Research, Vol. 43, No. 1, pp. 37-40.
[14] Kavitha G. (2006) A Study On The Effectiveness Of The Advertising Techniques Used In The
Personal Care Segment Of Women Consumers, Indian Journal of Marketing, Vol. 36, No. 8, pp. 12-16.
[15] Kotwal Nidhi, Gupta Neelima and Devi Arjee (2008) Impact of T.V Advertisements on Buying
Pattern of Adolescent Girls, Journal of Social Sciences, Vol. 16, No. 1, pp. 51-55.

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THE IMPACT OF ADVERTISING ON BUSINESS

Mr. R.Arun Prasath, Assistant Professor, Thiagarajar College, Madurai.
Ms. S.Padma Praba, Assistant Professor, Thiagarajar College, Madurai.

ABSTRACT Advertising is one of the most important things present in or society today. Advertising
helps to keep the consumers informed about whatever new products or services are available in the
market at their disposal. In the modern business society advertisement is a heart of the business, so
each and every firm should concentrate in the effective advertisement strategy to attract the different
level of age groups. The good advertisement should follow the advertisement ethics. Due to highly
competitive nature of market and change in customer response pattern, the agencies of today not only
make print or TV ads, but also are involved in identifying alternative avenues of communications for
more effective use of their ad-budgets to become more than a single service provider. Known as 360degree approach or Below the Line (BTL) or Through the Tine (TTL) activities, these include rural
marketing, entertainment, events, outdoor and health care Promotions. Social media advertising
offers a potentially unique advertising opportunity. As a general trend, personalized advertisements
are gaining popularity for a wide range of products and services.
Keywords: Advertising, Social media, Health care Promotions.
INTRODUCTION
In ancient times the most common form of advertising was by word of mouth. Advertising is the
life of trade. Advertisements can be placed on a variety of media. Television, radio, magazines and
newspapers dominated the advertising world throughout the 20th century, but the Internet has continued
to gain popularity among advertisers since its initial rapid growth in the 1990s. Advertising is not limited
to media options; ads can be placed in physical locations, such as billboards and shop windows, as well.
As advertising media changes, business practices change in response, ensuring that the business world,
and specifically marketing departments, never lies stagnant.
Advertising is everywhere, from television to billboards, newspapers and the Internet. Items are
sold through effective advertising, which helps businesses and also stimulates the economy.Advertising
is the no personal communication of information usually paid for and usually persuasive in nature about
products, services of ideas by identified sponsors through the various media.
ETHICS OF ADVERTISING
General

Principles of the moral order must be applied to the domain of media

Human freedom has a purpose: making an authentic moral response. All attempts to inform and
persuade must respect the purposes of human freedom if they are to be moral.
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Morally good advertising therefore is that advertising that seeks to move people to choose and
act rationally in morally good ways; morally evil advertising seeks to move people to do evil
deeds that are self-destructive and destructive of authentic community
Means and techniques of advertising must also be considered: manipulative, exploitative, corrupt
and corrupting methods of persuasion and motivation

Three Specific Moral Principles of Advertising Ethics

RESPECT TRUTHFULNESS (Deception Objection)
Never directly intend to deceive and Never use simply untrue advertising. Do not distort
the truth by implying things that are not so or withholding relevant facts. "Puffery" is
acceptable where it is consonant with recognized and accepted rhetorical and symbolic
practice
RESPECT THE DIGNITY OF EACH HUMAN PERSON (attacks autonomy objection)
Do not exploit our "lower inclinations" to compromise our capacity to reflect or decide
either through its content or through its impact: using appeals to lust, vanity, envy and
greed, and other human weakness and give special care to the weak and vulnerable:
children, young people, the elderly, the poor, and the culturally disadvantaged.
RESPECT SOCIAL RESPONSIBILITIES (promotes consumption, empties communication)
Example: Concern for the ecologyadvertising should not favour a lavish lifestyle which
wastes resources and despoils the environment. Advertising should not reduce human
progress to acquiring material goods and cultivating a lavish lifestyle

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THE IMPACT OF ADVERTISING ON BUSINESS

Purpose: Advertising strategies serve a variety of purposes. For new companies, brands or
products, ads can serve to inform customers about the new product and stimulate interest in the
marketplace. For existing players, ads can remind customers of the product's value, suggest new uses
for the product or encourage repeat purchases through promotions.

Competitive Advantage: Advertising can have a large impact on new businesses by creating
large barriers to entry in established markets. Well-known companies with large advertising budgets
and market-wide name recognition can have a significant competitive advantage over fledgling
competitors. Companies with large budgets can also create counter-campaigns to negate the effects of
new companies' advertising efforts.

Considerations : Businesses can choose to produce advertisements in-house using the expertise
of the owner or by employing specialists in their marketing departments or to use the services of an
advertising agency. The importance of advertising to all types of businesses has given rise to an
entire industry of professional advertising consultants and ad production agencies. Using an ad
agency can help you to produce high-impact advertising campaigns, but the cost can be high for
newer companies.

Future : As a general trend, personalized advertisements are gaining popularity for a wide range
of products and services. Intelligent ad placement mechanisms, such as Google's Ad Words and Face
book ads, ensure that ads are viewed by the right people, maximizing the efficiency of advertising
expenses. Advertisements sent to email and cellular phones can also be highly personalized, sending
the viewers ads that for products complementary to things they have recently purchased.
Information: Advertisement supplies consumers with information about products and services.
This information is broadcast for the open market, and discusses specials, sales, and new lines of
products and services. A consumer also learns about the comparisons between features, benefits and
options of different products and services through advertisement.
Brand Identity: Brand identity is one of the biggest functions and effects of advertisement. By
selling products and services through advertisements, businesses differentiate themselves from one
another. The right advertising campaign defines a companys unique brand, which helps consumers
build emotional relationships with that brand. This increases the likelihood that consumers will buy
from that company.
Purchase Persuasion: Powerful and captivating advertisements persuade consumers to purchase
a new product, try out services, and fulfil voids they feel are present in their lives. In fact, persuasion
is one of the main functions of advertising, which is why many firms strive to create powerful
impacts that reach customers on emotional and physical levels.
Education: Advertising serves as a form of consumer education. Not all advertisements sell a
product or service; sometimes they sell a concept. Government agencies use advertisement as a way
to educate and compel consumers to act a specific way. The Social and Cultural Effects of
Advertising notes that advertising is geared toward the ideas of art, religion, sexual attraction and
myth. Advertising also educates consumers on what products and services out are there, how much
they should pay, and what they can expect with certain purchases.
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SOCIAL MEDIA ADVERTISING

Social media marketing programs usually centre on efforts to create content that attracts attention
and encourages readers to share it with their social networks. The resulting electronic word of mouth
(eWoM) refers to any statement consumers share via the Internet (e.g., web sites, social networks, instant
messages, news feeds) about an event, product, service, brand or company. The main advantage of social
media marketing is cost-related. The majority of social media sites are free to access, create a profile and
post information. The advantage of reaching your targeted market for little or no cash investment is
substantial, and the audience wanting your information voluntarily joins or follows you. Pay-per-click
advertisements on sites such as Face book are "geo-targeted" according to specific criteria, to reach the
correct audience. The viral nature of social media means that each person who reads your posts has the
capability to spread the news farther within his own network, so information can reach a large number of
people in a short time.
SOCIAL MEDIA PLATFORMS
Face book and Twitter are the social media platforms most commonly used for marketing. Face
book offers the option of creating a fan page for a company or product, while Twitter makes use of 140character posts that users follow. Blogs are online journals written by users, which can be influential in
spreading news and information. YouTube is a repository for podcasts and video clips, with a viewership
of millions around the globe. Social bookmarking sites such as Delicious and Digg enable users to share
links to information with friends and followers.Most popular social networking sites includes Twitter,
Face book, LinkedIn, Yelp, Foursquare, Instagram, YouTube, Delicious & Digg, Blogs, Meet up,
MySpace, Ning, Classmates , Tagged, Pinterest, Foursquare , Reddit
CONCLUSION
Advertising campaign involves designing a series of advertisements and placing them in various
advertising media to reach a desired target group. There is a recent trend that advertising and its
messages along with signature songs, puch lines etc. are gaining too much popularity so that the people
began to enjoy them as pure form of entertainment without having any effect on them in their attitude
and behaviour. The Internet has reduced the cost and increased the speed of information transfer. This
has transformed the economic landscape, allowing new and exciting ways to generate revenue that
include and differ from traditional economic models. Advertising is a using powerful media to control
peoples' choices. We also have power, the power to choose, the power to think for ourselves, and the
power to influence others. How we use that power is central to the creation of good and healthy society.
If we allow others to control us without employing our power, we give up too much. If we allow others
to misuse their power in our society we allow them to determine the future for us.
REFERENCES
Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2008). Marketing defined.
Principles of marketing (5th Ed.)P.17. Retrieved 2009-10-23.
Inc. Technology Brent Leary Article Technology.inc.com. 22 March 2010. Retrieved 24 April
2012..
Kleppner, Otto, Advertising Procedure, Englewood Cliffs, N.J., Prentice-Hall, 1966
Johnson, J. Douuglas, Advertising Today. Chicago: Science Research Associates, 1978. ISBN
0-574-19355-3.
www.ebizmba.com
www.socialmedia.com
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CHALLENGES AND OPPORTUNITIES OF CURRENT MARKET SCENARIO

Mr. R. Arun Prasath, Assistant Professor, Thiagarajar College, Madurai.
Ms. T. Kayalvizhi, Assistant Professor , Lady Doak College,Madurai.

ABSTRACT: Adapt to your customer's needs. They expect it. Marketing includes all of the activities
necessary to move a product from the producer to the consumer. Think of marketing as a bridge from
the producer to the consumer. Marketing today remains a great challenge, in large part because of
the consistently changing technology and media landscape. The hurdles are constantly addressed on
a tactical level by informational sources, yet the problems persist. Marketing is faced with some
daunting challenges in the next decade. Change is everywhere. New categories are emerging and
receding at a rapid rate.
Keywords: Marketing, Customer, Producer, Challenge
INTRODUCTION
The management process through which goods and services move from concept to the customer.
It includes the coordination of four elements called the 4 Ps of Marketing. Identification, selection and
development of a product, Determination of its price, selection of a distribution channel to reach the
customers place, and development and implementation of a promotional strategy. Marketing includes
all of the activities necessary to move a product from the producer to the consumer. Think of marketing
as a bridge from the producer to the consumer. Marketing starts with market research, a learning process
in which marketers get to know everything they can about the needs and wants of consumers, and it ends
when somebody buys something. Many companies feel that services provided to customers after the
purchase also are an important part of marketing. All of these enterprises -- production, advertising,
transportation, processing, packaging, and selling -- are included in the marketing process.
MARKETING
Marketing deals with identifying and meeting human and social needs. The aim of marketing is
to make selling superfluous. It is to know and understand the customers so well that the product or
service fits him and sells itself. Marketing should target the customers who are ready to buy. The
development of strong relationships requires the understanding of capabilities and resources of
different groups as well as their needs, Goals and desires. The social marketing concept calls upon
marketers to builds social and ethical consideration into their marketing practices. They must balance
the conflicting criteria of company profits, consumer satisfaction and public interest. Marketing
activities are numerous and varied because they basically include everything needed to get a product
off the drawing board and into the hands of the customer. According to Dr.Philip
Kotler marketing defines as the science and art of exploring, creating, and delivering value to satisfy
the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines
measures and quantifies the size of the identified market and the profit potential. It pinpoints which
segments the company is capable of serving best and it designs and promotes the appropriate products
and services.
ORIGIN OF MARKET
A barter system is an old method of exchange. The system has been used for centuries and long
before money was invented. People exchanged services and goods for other services and goods in return.
Today, bartering has made a comeback using techniques that are more sophisticated to aid in trading; for
instance, the Internet. In ancient times, this system involved people in the same area, however today
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bartering is global. The value of bartering items can be negotiated with the other party. Bartering doesn't
involve money which is one of the advantages. You can buy items by exchanging an item you have but
no longer want or need. Generally, trading in this manner is done through online auctions and swap
markets. There is no common medium of exchange in which tradable commodities can be converted into
or a standardized system of value applied to those commodities. With the decline in the Barter system as
a reliable and useful form of trade or business transaction, it was replaced by the use of commodity
money. A key feature is that both the buyer and seller of goods and services recognize and accept the
value of the tokens as if there were the actual goods themselves.
RECENT GLOBAL MARKETING CHALLENGES
Marketing today remains a great challenge, in large part because of the consistently changing
technology and media landscape. The hurdles are constantly addressed on a tactical level by
informational sources, yet the problems persist. It may be time to take a step back on a macro level and
look at how education and information sources are meeting these challenges.
Rapidly Evolving Media: Media evolution remains a huge issue. It is necessary to come up with the
money to become comfortable, even the first wave of major social networks had some staying power.
Today, media evolves so quickly that volatility needs to be expected. Marketers need to move off of
channel specific strategies, and need to adapt a truly liquid approach to communications. Meaning,
deliver a complete content and engagement effort to serve stakeholders wherever they are, and how they
like to receive information in that specific medium. Further, they need to adapt an attitude
of constant experimentation.
Technology adoption and automation: its an ongoing theme that marketers and bloggers discuss,
balancing human intelligence, strategy, and frankly, likeability with the precision of data and analysis
gleaned from Big Data. Theres a great deal of professional fear with technology. Some of this deals
with nomenclature and the failure of tech and social media firms to make their products easily accessible
to the common person. It also need information and education to get much more specific here, refine
roles, better define which data sets matter, as well as how humans can best master these new evolving
tools.
Transition to Internet: The Internet is accessible everywhere (mobile, at storefront, augmented
reality) now, or close to it. The first stab at managing the current design movement, but the market will
soon discover that while at least making web pages palatable across the board, it going to need custom
environments to differentiate. Scenario building and mapping content to access method and
corresponding usage pattern is the right course here. Theres nothing wrong with a few mobile specific
pages. As marketing IT budgets increase, developing specific experiences for each type of medium will
best serve stakeholders and brands alike.
Video and Visual Skills Missing: The visual revolution is most essential and small or medium
businesses are not competing effectively. Some of that is a financial resource, but most of it is training
and skill set. Todays communicators are writers, pitchers (PR), or networkers. They dont hunk visually,
pun intended. The next generation of communicators will have a combined skill set of visual and print
media, so it need to get them into the workforce quickly.

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Time: Companies also are doing things faster. According to the Marketing Profs survey, not having
enough time to execute programs was tied with not having enough budgets for the biggest marketing
challenge. Innovations in technology, such as email and wireless Internet, are standard ways of getting
things done. This allows companies to do more in less time. However, these innovations also create new
time-management challenges.
NEW MARKET OPPORTUNITIES: A market opportunity product or a service, based on either
one technology or several, fulfils the need(s) of a (preferably increasing) market better than the
competition and better than substitution-technologies within the given environmental frame (e.g. society,
politics, legislation, etc.). Nothing is more important for any enterprise than to find and exploit
new market opportunities. Even when business is robust, there is always the need to hunt for new turf, to
guard against the time when a strong product or service category will become static or declining. Skill in
finding new market opportunities is the lifeblood of business worldwide.Global marketing expansion is
being widely promoted in both the professional and domestic communities. Domestic markets alone
cannot provide the revenue and growth opportunities required by many business organizations. Many
business firms want to sell in international markets but lack the expertise and financial resources to sell
overseas effectively. In domestic markets, manufacturers representatives currently provide the sales
function for many such firms, especially small manufacturers.
Social Media Marketing: Social media marketing is uncharted territory for many companies, largely
because of regulatory issues and concerns over its measurability. Marketers in certain industries, such as
the pharmaceutical industry, have been hesitant to market their products via social media channels
because these channels present legal and regulatory hurdles. The FDA has many rules in place that limit
how pharmaceutical brands can interact with consumers. Social media presents both a challenge and an
opportunity for many companies. Social Media provides you better opportunity to engage with your
customers through various prominent social media channels like- Face book, LinkedIn, Twitter,
YouTube, Pinterest & Tumbler.
Search Engine Marketing: Search Engine Marketing is an online marketing strategy and technique
which involves paid website promotion on search engines like Google, Bing & Yahoo. Search engine
marketing is the most effective way for quick traffic, lead generation and increase high ROI (Return on
Investment).
Pay Per Click (PPC) : Pay per click (PPC) (also called cost per click) is an internet advertising model
used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner)
when the ad is clicked. It is defined simply as the amount spent to get an advertisement clicked. Pay
Per Click is an most popular internet marketing technique used to drive quick traffic to your websites
and increase ROI. Our Google and Bing certified professionals ensure that your every campaign is
continuously optimized for maximizing ROI with less cost.
Local Social Pages: Most likely, brands have local pages for their locations on Face book, even if they
haven't set them up. Fortunately, Face book gives brands a way to control their individual location pages
with their Parent-Child functionality. Brands can associate local pages with their parent master account,
disable posts, and take control of their local presence on Face book. Content like the cover photo
cascades down to child local pages, helping marketers keep their local message consistent with their
national campaigns. Face book is increasingly important to any local marketing strategy. Since the
launch of Graph Search, Face book has captured as much as 13% of local search. As Instagram ads
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become available, and mobile makes up a large share of revenues from Twitter, marketers will drive foot
traffic from localized ads on social networks when people are on the go.
CONCLUSION
Marketing is faced with some daunting challenges in the next decade. Change is everywhere.
New categories are emerging and receding at a rapid rate. Communication is increasingly fragmented
and under the control of the audience rather than the brand. The fast moving digital world adds new
options and complexity. Any company engaging in global marketing operations is faced with a number
of very important strategic decisions.

ROLE OF NGOS IN PROMOTING SHG IN DINDIGUL DISTRICT

Mr. L.Eswaran, Assistant Professor, Parvathys Arts and Science College, Dindigul
Ms. R.Jeenath, Assistant Professor, Parvathys Arts and Science College, Dindigul

Introduction
The term, Non Governmental organisation or NGO, came into use in 1945 because of the
need for the UN to differentiate in its charter between participation rights for intergovernmental
specialized agencies and those for internal private organisations. At the UN, virtually all types of private
bodies can be recognized as NGOs. They only have to be independent from government control, not
seeking to challenge governments either as a political party or by a narrow focus on human rights, non
profit making and non criminal. A nongovernmental organization (NGO) is an organization
independent of the government whose primary mission is not commercial, but focuses on social,
cultural, environmental, educational and other types of issues, these organizations often work locally and
internationally in the field of development.
A voluntary agency is an organization entity set up by a group of persons on their own initiative
or partly by an outside motivation to help the people of a locality to undertake activities in a reliant
manner (partly or wholly) to satisfy needs and also being them and the public sector retention services
closer to on other and for more equitable and effective development of the various sections of the rural
poor.
Voluntary organization
1. To increase the standard of living of target groups
2. To encourage and enlist total participation in planning and implementation of programme
3. To increase the bargaining power through group action
4. To promote cooperative and group action for the village development need
5. To establish a feedback mechanism from where a constant dialogue could take place between
government functionaries or village level and voluntary bodies.
6. To make beneficiary group, self reliant i.e. group or individual increasingly learn things in the
right prospective.
Self help groups
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The SHGs comprise very poor people who do not have access to formal financial institutions.
They act as the forum for the members to provide space and support to each others. It also enables the
members learn to cooperate and work in a group environment. The SHGs significantly contribute to the
empowerment of poor women.
Statement of the problem.
In present study is an attempt to understand the problem of womens empowerment. In
connection with this an attempt has been made to find out the reasons and forms of rural women
empowerment and also know the institutional support system available for the empowering women.
Hence, the NGO acts as the promoting agency for the SHGs.
Objective of the study
There following are the objective of the study:
a. Identify the services provided by the NGO and analyse their benefits to SHGs
b. Identify the constraints in SHGs and NGOs
c. Recommended strategies to strengthen SHG
d. To know about the activities of NGOs in field of women Self Help groups
Area of the study
The study has selected SPACE, a Non Governmental organization working in Sanarpatti block.
Methodology: The methodology used in the study was interviewing the coordinator, self help group
members and also collecting data from their documented reports.
Sources of study: The sources of data are secondary in nature. Secondary data was collected from the
records of the NGOs and the secondary data from the members of NGOs.
Scope of the study: The present study covers the working of the SPACE in women upliftment. It also
covers the training programmes and activities related to others.
Tools for data collection: An interview schedule was used to collect data from the members. It was
presented modified and finalized in accordance with the requirement of the study.
Analysis of data: The collected data were analysed by means of percentage
Limitations of the study: Due to time constraints only one NGO was taken up to the study.
Analysis and discussion: SPACE NGO is located in Sanarpatti block, Dindigul district, Mr.Ramesh is
the managing of the NGO.
Table.3.1 Details of SHGs in NGOs in Sanarpatti block
S.N
Village
Name of the Group
Mahalir or Non Mahalir
1.
Sanarpatti
Vanavil
Non Mahalir
2.
Virachinnampatti
Annai madha
Non Mahalir
3
Pungampadi
Roja vanam
Non Mahalir
4
Paradhesipatti
Seelaikari amman
Non Mahalir
5
Pannapatti
Sarojini
Non Mahalir
6
Ragalapuram
Annai durga
Non Mahalir
7
Kodikapatti
Deepam
Non Mahalir
8
Manchanayakanpatti Annai therasa
Non Mahalir
9
Punnapatti
Thajmahal
Non Mahalir
10.
Avilipatti
Thamarai
Non Mahalir
Source: NGO secondary data
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The present study is about the number of account holders of SHG with this NGO are 10 groups.
The SHG members conduct monthly evening meeting. The meeting is held in the common place. A
member from the NGO and all the SHG members attend the meeting. All the SHGs were given loan by
the NGOs as well as bank. The group opened account in canara bank, state bank in Sanarpatti. The group
get loan through the SGSY assistance and SHG Bank linkage. All the SHGs repay the loans properly
without any problem. The bank has no problems in implementing the SHG programme.
Table 3.1Multiple Loan Details
S.No
Name of the SHGs
I Loan
II Loan
III Loan
1
Vanavil
25,000
50,000
1,00,000
2
Annai madha
75,000
1,00,000
2,50,000
3
Roja vanam
25,000
50,000
1,00,000
4
Seelaikari amman
25,000
50,000
1,00,000
5
Sarojini
25,000
50,000
1,00,000
6
Annai durga
75,000
50,000
1,00,000
7
Deepam
25,000
50,000
1,00,000
8
Annai therasa
25,000
50,000
1,00,000
9
Thajmahal
25,000
50,000
1,00,000
10
Thamarai
75,000
50,000
1,00,000
Source: NGO Secondary data
The table 3.2 express that the conditunues loan amount distributed the bank. The highest amount
taken annai madha SHG. Training conducted by NGos
S.No
Type of Training
Duration
Impact
1.
Tailoring
One month (3 days)
Good
2.
Embroiding
Weekly (3 days)
Good
3.
Accounts training
Weekly (3 days)
Good
4.
Animator training
Weekly ( 3 Days)
Good
5.
Representative trainingWeekly ( 3 days)
Good
6.
Herbal training
Weekly ( 3 days)
Good
Source: NGO secondary data
Challenges faced by the NGO
The SPACE NGO mostly facing the difficulty from the SHG. Because they did not repay
the loan. The full responsibility fall on the head of the NGO
To reduce this problem the NGO get loan with subsidy for the SHG
The NGO arranges loan for 3 members in one group. Once these 3 members pay their
credit regularly others members will get loan.
Group insurance should be promoted among the members.
The NGO get 10% money from the SHG members loan and on completion of repayment
they will be returned for the members.(ready, recovery)
Some SHG members do not repay the loan deliberately and the family members do not
the responsibility. Due to this reason the NGO get signature from her husband/ son when
they get loan.
Findings
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A case study was undertaken on The Role of NGO in Promoting SHGs, SPACE NGO in
Sanarpatti Block, Dindigul District was the selected NGO.
The NGO was registered in 1990and started functioning 1990.
The NGO promotes 10 SHG from 10 villages
The NGO has received loan from Bank
The SHG maintain all the necessary records and book keeping.
Suggestion
Following suggestions are made to improve the activities of the NGOs.
Executive training programmes for the secretaries and other executive staff need to be conducted
to improve their skills
The groups should be trained well to promote group harmony.
The NGO does not appoint field level coordinators as a used of which monitoring become
difficult.
Conclusion
To conclude, the Sanarpatti SHGs have been motivated people to participate for growth of the
SHGs. SHGs promote women empowerment, child development not only to the members of affiliated
SHGs but also the community at large.
Reference books
Vasudeva Rao, Self Help Groups and Social Change, social welfare, Vol. 50, No.2, May -2003
Sooryamoorthy, Micro Finance and Self Help Groups in Kerala, Social Action, Vol. 55, No.1.
Lalitha.N, (2005) Micro Finance & Rural development, January.
MICRO CREDIT FOR MICRO ENTERPRISE DEVELOPMENT - CHALLENGES FACED BY
SHGS IN KANYAKUMARI DISTRICT
Ms. K.Vinodha devi, Research Scholar, PG & Research Centre St Hindu College, Nagercoil.

Introduction
Micro credit as a tool of rural development through the development of micro enterprises was
introduced to the economy because formal credit institutions (capital markets) and informal lending
system either failed to deliver the goods or not very much conducive to the growth of micro enterprises.
As we know the economic giants of the world developed their economies by relying on formal credit
institutions through the development of their capital markets. But these formal credit institutions have on
the whole failed to provide credit to the poor in the underdeveloped countries for many obvious reasons
(Von Pischke 1991, pp.143-168). In recent days, SHGs were initiated by the government throughout the
nation to promote women based micro enterprises. A great sum of fund has been injected into the rural
economy by linking SGSY scheme with SHGs in 1992. Many women self-help groups (SHGs) were
formed and training has been provided to their members to start micro enterprises. This chapter assesses
the impacts of microcredit intervention in promoting micro enterprises among rural women of Kanya
kumari District. It examines the key factors that influence the growth of microenterprises and also the
factors which hinder the growth of micro enterprises in rural areas.
Statement of problem
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Kanyakumari district comes in the second place in terms of urbanization and first in the place
of literacy rate in Tamilnadu. Despite of its high literacy rate and widespread infrastructure facilities it
lags far behind in micro enterprise development. Development programmes have laid the foundation for
the progress of micro enterprise in rural areas but still now a large group of people has been excluded
from the development paradigm. The development programmes in this district are designed mostly
selective in nature as they are intended to benefit specific target groups, mostly weaker sections of the
society. The ultimate aim of these programmes is to create employment opportunities among the
underprivileged section fulfilling the co-objective of bringing down the income disparity and other
irregularities that co-exists. One of the development schemes which were sponsored both by state and
central government is SGSY scheme. The scheme aims at establishing a large number of micro
enterprises in rural areas. The study aims at evaluating the role of micro credit in addressing the issues
of micro enterprise development in Kanyakumari District.
Methodology
The study is descriptive in nature pursuing into the assessment of the effectiveness of micro
credit in micro enterprise development. Multi stage random sampling method was adopted to select
samples for the present research. As the research focus on micro enterprise development in rural areas,
town panchayats and municipalities were excluded from the study and the self-help groups belong to
village panchayat alone were selected. The list of self help groups belong to village panchayat was
collected from Mahalir thittam office of Kanyakumari District. A total of 400 SHGs was selected from
different village panchayats of Kanyakumari district.
1.1 Micro-enterprises promoted by rural women
Micro enterprises are businesses in which people invest small amounts of capital for getting
some return. Promoting microenterprises in rural area of Kanyakumari was stated as a difficult task by
the NGOs and government officials. A number of factors were hampering the growth of micro
enterprises in Kanyakumari district. The numbers of SHG members started micro enterprises after
joining SHGs are given below
TABLE.1.1 Micro-enterprises promoted by rural women before and after joining SHG
S.No

Particulars

Before Joining

After Joining

No of Respondents Percentage

No of Respondents Percentage

1
2
3

Self Employed(Micro enterprises) 92

23
141
35.25
Wage Earners
264
66
236
59
Un employed
44
11
23
5.75
Total
400
100
400
100
Source: Primary data
Table: 1.1 clearly states that there was a shift in the self employment after joining SHGs. It was
increased to 35.25 percent from 23 percent and there was a reduction in the percentage of wage earners
and unemployed women after joining SHGs.
It was inferred that even after joining SHGs majority of the respondents are remaining as wage
earners. This shows that there are factor which needs to be noticed to promote micro enterprises in
Kanyakumari district.
1.2 Nature of Micro enterprises selected by SHG members
The nature of micro enterprises selected by SHG members are based on a number of factors.
TABLE: 1.2 Micro enterprises started by SHG members
S.No

Occupation

No of respondents

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33

Percentage

1
2
3
4
5
6
7
8

Agriculture and Agro-based

Manufacturing or service sector
Clothing Business
Handcraft
Food related Business
Grocery
Toiletry articles
Others
Total

52
20
12
11
19
10
9
8
141

36.8
14.2
8.5
8.3
13.5
7.0
7
6.8
100

Source: Primary data

The table clearly shows that most of the respondents (36.8 percent) are engaged in agriculture or
agro based business.14.2 percent of the respondents are engaging in manufacturing or service sector.
Others are engaging in different economic activities.
It is inferred that nature of Microenterprises selected by rural women are changing slowly from
agriculture and agro based work to other sectors due to various reasons but still agriculture related works
are dominating in Kanyakumari district.
1.3 Area of Operation of Micro-enterprises
Women mobility in India is highly limited and has become a problem due to traditional values
and inability to drive vehicles. Moving alone and asking for a room to stay out in the night for business
purposes are still not allowed in rural areas. One of the major obstacles which hinders the
entrepreneurial development of women is they are less mobile. Women are forced to work near the home
due to various social and cultural reasons and they are less mobile compare to their counterpart .In case
of starting a business, they are more likely to undertake a business which demands short-distance. It
limits the choices in selecting businesses and becomes the reason for less earning than men at the same
age, occupation, and educational level. The areas where micro enterprises were started are given below.
TABLE: 1.3 Area of Operation of Micro-enterprises
S.No
Area
No of respondents
Percentage
1
Home-based
89
63.12
2
Newly constructed
16
11.3
3
Leased/Rent
22
15.6
4
Others
14
9.9
Total
141
100
Source: Primary data
The table states that many women owned enterprises (63.12 percent) are home based
businesses. The reason stated was access to affordable and flexible childcare and flexible working
arrangements according to their household needs. Another important reason was the cultural barrier
which does not permit women to work in a external environment.
1.4 Factor influences the Selection of Micro enterprises
A number of factors influence the selection of microenterprises by women. In a country like
India, some kinds of work are socially constituted as 'women's work' while others are 'men's work', as a
result of social values and the division of labour inside and outside the household.
The factors influencing the business opportunities of women are stated below.
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TABLE: 1.4 Factor influences the Selection of Micro enterprises

S.No
Factors
No of respondents
Percentage
1
Based on Natural resources
21
14.8
2
Based on ancillary business opportunity
3
2.12
3
Based on skill
59
41.8
4
Based on traditional business
21
14.8
5
Based on seasonal business
7
4.96
6
Based on Agriculture
28
19.85
7
Others
2
1.42
Total
141
100
Source: Primary data
The table clearly shows that most of them selected the business activities based on the skill they
already possessed. The women who are already trained in tailoring, coconut leaves weaving are
continuing the work on the basis of the skill they possess. 19.85 percent of the sample SHG members
stated that they selected because of the agricultural activities they belongs. 14.8 percent of respondents
select the business because of the availability of natural resources and because it was their traditional
business.
1.5 Factors motivates SHG members to start Micro-enterprises
Women traditionally have responsibility for household management; this does not permit women
to spend more time on micro-enterprises activities. Another key factor which usually limits women
entrepreneurial activity is child care. The reason for selecting the particular micro-enterprises are given
below
Table: 1.5 Factors motivates SHG members to start Micro-enterprises
S.No
Factors
No of respondents Percentage
1
Education and Training Received
16
11.34
2
Parents/Spouse encouragement
7
4.96
3
Friends & Relatives in this field
2
1.42
4
Availability of Market
21
14.8
5
Government incentives & concession 5
3.54
6
Independent
54
38.29
7
NGOs
19
13.47
8
Self-Motivation/Creativity
3
2.13
9
To gain status
11
7.8
10
Others
3
2.13
Total
141
100
Source: Primary data
The table shows that most of the sample respondents (38.29 percent) have stated the feeling of
independent has been the major reason for starting the micro enterprises.13.47 percent of the SHG
members have stated the motivation and training provided by the NGOs make them to start micro
enterprises.14.8 percent of the respondents have stated that availability of market for the product
motivate them to start micro-enterprises.
1.6 Increases in the Level of Income after Joining SHGs
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The number of sample SHG members stated there was an increase in the income level after
joining SHGs are given below
TABLE: 1.6 Increases in the Level of Income after Joining SHGs
S.No
Income
No of respondents Percentage
1
Increased
112
79.4
2
No change
27
19.1
3
Decreased
2
1.4
Total
141
100
Source: primary data
The table states that 79.4 percent of the sample respondents have stated that there was a increase
in the level of income after joining SHGs .The reason stated was due to various training programme and
accessibility timely fund the efficiency of business have increased.19.1 percent of the respondents have
stated that there was no change in their income level after joining in SHGs.
1.7 Amount of Profit earned by the Sample SHG members
The amount of profit earned by the sample SHG members before and after joining SHGs are given
below
TABLE: 1.7 Amount of Profit earned by the Sample SHG members
S.No Amount
Before Joining
Average
After Joining
Average
No
ofpercentage
No
ofPercentage
respondents
respondents
1
Below 1000 68
48.2
689
22
15.6
750
2
1000-2000 36
25.5
1425
78
55.3
1600
3
4
5
6

2000-3000 23
14.9
2325
26
18.4
2400
3000-4000 12
8.5
3200
13
9.2
3250
4000-5000 1
2.1
4250
1
.7
4500
Above 5000 1
.07
5500
1
.7
5500
Total
141
100
141
100
Source: Primary data
The table clearly shows that there was a increase in the level of income after joining SHGs.
Most of the respondents earned below 1000 before joining in SHGs and it was reduced to 15.6 percent
after joining SHGs.25.5 percent of the sample SHG members earned 1000 to 2000 before joining SHGs
and it was increased to 55.3 percent after joining SHGs and there was no change seen in the income
level between 4000 to 5000 and above 5000.
1.8 Challenges faced by SHG members in starting Micro enterprises
The traditions and customs prevailed in Indian societies towards women stand as an obstacle
before them to grow and prosper. Castes and religions dominate with one another and hinder women
entrepreneurs too. In rural areas, they face more social and cultural barriers equal to financial barrier
TABLE: 1.8 Challenges before SHG members in starting Micro enterprises
S.No
Challenges
SHG members
No
ofPercentage
respondents
1
Economic barrier
54
38.29
2
Household work/childcare
21
14.9
36
36
36
36

3
4
5
6

Family members
Lack of knowledge/guidance
Cultural barrier
Others
Total

18
24
5
19
141

12.77
17.02
3.5
13.47
100

Source: Primary data

.
The table clearly shows that economic barrier as the primary problem for the women
interested in starting enterprises. Access to sources of finance is essential for the creation of a selfemployed activity or a microenterprise. Smaller firms in rural areas usually do not have any access to
funds from traditional financial Institutions due to Economic Viability of MFI, 17.02 percent of the rural
women face the problem of lack of awareness and knowledge though they are interested to start
business.
Conclusion
The study states that microcredit is a necessary condition for microenterprise development as
most of the women stated economic barrier as one of the greater challenge. Other areas like motivation
of micro-entrepreneurs, technical training, establishing market linkages for inputs and outputs, common
infrastructure etc also taken into concern to stimulate micro enterprise development in Kanyakumari
district.
REFERENCES
Von Pischke (1991): Finance at the Frontier, World Bank, Washington.
Prasant Sarangi Self-Help Groups-An Experiment in Orissa, Kurushetra, Vol.51, No.4,
Feb.2003
Chiranjeevulu, T., Empowering Women through Self-help Groups, Kurushetra, Vol.51, No.5,
March 2003.
WWW.NABARD.COM

WORKLIFE BALANCE OF WOMEN

Mrs. S. Susila, Associate Professor, Sri Adi Chunchanagiri Womens College
Cumbum

ABSTRACT Work-life balance is about creating and maintaining supportive and healthy work
environments, which will enable employees to have balance between work and personal
responsibilities and thus strengthen employee loyalty and productivity Todays workers have many
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competing responsibilities such as work, children, housework, volunteering, spouse and elderly
parent care and this places stress on individuals, families and the communities in which they reside.
Work-life conflict is a serious problem that impacts workers, their employers and communities. This
study was conducted to identify the work life balance of women employees and to provide suitable
suggestions to balance their work life.
INTRODUCTION
No other country has a more pristine, record of reverence for women than India. Women in the
Vedic period enjoyed complete freedom and equality. Women had a great responsibility to play as
homemakers. Technical and industrial advancements on one side have made life easy, while on the other
side the role of women has also changed considerably. Women play a dynamic role in their home
activities as wives, as mother responsible for the development of their children and as homemaker in
charge of their homes. In recent times with the increase in educational facilities and widespread changes
women have gradually started taking employment outside the home.
The question of work family
balance has increasingly come to the force over the past two decades. Foremost reason is the changing
roles of women. Work family balance refers to having enough time to fulfil activities in both work and
family contexts.
OBJECTIVE OF THE STUDY
The objective the study is to identify the work life balance of women employees and to provide
suggestions to balance their work life.
METHODOLOGY
The primary data were collected by using well structured questionnaire and approached every
sample population. In addition to the primary data obtain through questionnaire the secondary data were
also collected. Accurate result could be given only in census method of collecting data. Since the
population is large, field of investigation is very wide and time duration is less Simple random Sampling
Method was used for collecting data. The population at Theni district was divided into various Taluks
and a sample of 5 women employees from each were selected for enquiry. Totally 50 samples were
selected.
LIMITATION
The present study is confined to the women entrepreneurs of Theni District only. Hence it is a
study at micro level. For the purpose of analysis half-yearly data have been used and hence the
inferences and conclusion drawn from the present study may or may not apply to the similar situations.
FINDINGS
1. 80% of women with more than 10 years of service are able to balance their work and life
whereas 70% of women with less than 10 years of service are not able to balance their work and
life.
2. 85% of women employees feel that the organization does not take initiatives to manage work life
of its employees.
3. 60% of the respondents think that the policy for work Life Management helps to increase
productivity of the organization.
4. 40% of the women employees think that they have no time and energy to engage in any leisure
activities that they want to do.
SUGGESTIONS
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Many strategies are identified for achieving work family balance. Family gives women
happiness; work gives women self-esteem. For this reason, it is important to keep a balance in their life.
Women should not feel guilty for having a family and wanting to spend some quality time with them.
There are many ways to make life easier.
Choose the mate carefully: It is difficult and time consuming to work full-time and have a family. It is
virtually impossible to work full time and handle all the traditional female roles of wives housekeeper,
care giver and cook. So the women has to find a male who values the job equally and will share
willingly and equally in household responsibilities.
Gets lots of outside household help: To spend quality time with children, spouse, business, society etc
hire someone to have household help. By careful thinking multi-role player might be able to find ways
of doing some jobs in less time, find alternative activities, find someone else to take over some jobs and
perhaps eliminate some as being unnecessary.
Build a strong support network: Women have to build a strong support network. They have to make
arrangements ahead of time with other friends and neighbours.
Form friendship with other working families: Being working women, she has to make relationship with
other working families. It can provide valuable information and emotional support. This is true for both
men and women.
Forget about domestic perfection: It is impractical to have a perfect home. They have to make priories to
spend time with children and family members rather than to spend time in straightening in all household
activities. It may create great satisfaction.
Time Management: Efficient management of time, permits a person enjoys life, remain relaxed and
productive. Inefficient management of time leaves one tense and worried. Such people are likely to be
less productive and are always in a hurry to catch up with their jobs. It leads one to think in advance of
the many work problems that one faces.
Crisis Management: Managing a crisis is wise, but prevention is wiser. If one does not anticipate the
resultant crisis from the problems that surrounded him, his life will be reduced to nothing, like the
haystack kept close to fire. In modern days remedies have been well planned and streamlined to face all
kinds of situations especially in the field of Trade, Commerce, Science and Technology. Management
science categories a variety of issues and offers reasonable methods of tackling the situations.
Delegation:
Delegation helps women in maintaining healthy relationship among their family members and
working environment. To play multirole successfully women has to learn how to delegate work in home
as well as in workplace.
CONCLUSION
People who are not able to create a work-life balance can suffer from stress, burnout, and
physical ailments like heart disease. It is clear that if we want to get life, we have to give life and
through this constant process of give and take policy alone life can attain its real fullness, real expansion,
real perfection and real achievement. Life is full of compromises. The earlier one realizes the better it is
for a free, smooth and enjoyable life, especially for the present day woman who has so many things to
achieve and wants to be Complete. She has to compete with every trifling situations and circumstance,
fighting with all odds, at all times. Everyone has their own stuff to deal with the only thing that separates
is a simple decision to change mind.
CUSTOMER RELATIONSHIP MARKETING ORIENTATION AMONG INSURANCE
AGENTS
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Dr. B. Anbazhagan., Associate Professor, Sourashtra College, Madurai.

Mr. K.A.Gopinath, MBA Student, Institute of Cooperative Management, Madurai.

ABSTRACT: Businesses that handle well succeed referrals and repeat sales are the lifeblood of
business. They are also a direct result of effective customer relationship management. Financial
Services industry is part of an economy & successful operation of the industry sets impetus for other
industries and development of an economy. customer relationship building especially for retail
investors from life insurance sector and its management in general, based on the principles of
Relationship management in service organizations.
INTRODUCTION
Prior to 1956, there were about 245 insurance companies, which operated in India. The
insurance coverage was mostly confined to life and vehicles. The Government of India felt that a strict
Government Control of Insurance Industry is required and nationalized the insurance industry in 1956.
Life Insurance Company of India (LIC) was formed in September 1956 by an Act of Parliament, the LIC
Act with a capital contribution of Rs.50 million from the Government of India. Over the years the
Insurance business has grown enormously and collected funds both in linked and non-linked sectors. In
the end of year 2012, there are 44 new private players have come into existence. It is felt that the
changing demographic profile of Indian population, growth of the economy, change over to new
technologies, affordability and created awareness are likely to push the demand for the insurance cover
further.
NEED FOR THE STUDY
The insurance companies are growing especially after the globalization. The number of agents in
the life insurance sector is also growing at a faster rate. The successful attainment of goals among the
agents rests on their quality of service and the extent of customer orientation. Unless they satisfy their
customers, the competitors may edge over the advantage to them. Since, their service especially
customerized service, service quality and relationship marketing orientation are essential for their
performance in the field. Hence, the present study focuses on the aspect of identifying the factor leading
to the success of the career among the agents especially through Relationship Marketing Orientation.
STATEMENT OF THE PROBLEM
The service quality and relationship marketing are the priority areas for research. Despite the
importance of relationship management in services marketing in the overall success of the firm, research
in this area is limited. Further, the studies are related to the performance of the company but not the
agents. Today lakhs and lakhs of youngster are doing agency work on behalf of their insurance
companies. But they do not know how to enrich their activities to perform better. If they know the
concepts of customer orientation, relationship marketing, customer relationship building practices, they
may do better than what they have been doing. Hence it is essential to understand the factors behind the
success of agents in the life insurance markets with their understating of Relationship Marketing
Orientation among them.
OBJECTIVES OF THE STUDY: The present study focuses the following objectives. They are
i)
To reveal the socio-economic profile of the agents.
ii)
To identify the factors related to Relationship Marketing Orientation.
iii)

To suggest the suitable suggestions to improve their performance.

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SAMPLING FRAMEWORK: The applied sampling framework for the present study is purposive
sampling. Out of the total agents in the selected insurance companies, 300 agents from three insurance
companies are selected purposively for the study. No scientific sampling procedures have been followed
to select the sample units. 104 agents completed the survey. The response rate is 35.00 %.
DATA SOURCES
Primary data were collected from the agents in Life insurance market. The identified public and private
players are Life Insurance Corporation of India; and Max Life Insurance Company and ICICI Prudential
Life Insurance Company. Secondary data were collected from the existing marketing literature to learn
the research done in the general area in which the specific problem falls.
REVIEW
Relationship Management and Customer Relationship Management (CRM).The key objective of
relationship marketing is to establish a one to one relationship with all the customers. This might have
sounded like a daydream few years ago; but thanks to the technological breakthrough and technological
solutions available this is very much a reality today. CRM is considered as a tool specially designed for
one-to-one customer communication (Peppers and Rogers, 1999) . CRM applications link front office
and back office operations with the companys customer touch points (Fickel, 1999). The following are
the touch points the company can use to reach out to their customers: the Internet, e-mail sales, direct
mail, telemarketing operations, call centres, advertising, fax, pagers, stores and kiosks (Eckerson and
Watson, 2000). Software vendors such as Oracle, SAP, People Soft, Clarify, SAS, and Siebel are now
offering ready to use CRM applications to organizations. (Injazz J. Chen and Karen Popovich 2003) .
Many CRM software vendors lure Customer orientation has been explained in different ways (Kohli and
Jaworski, 1993 ; Narver and Slater, 1990 ). It is a combination of the cognitive and behaviour style of
the employees which gets reflected in their interaction with the customer. These styles influence the
customers to make good purchase decisions, helping to assess their needs, describing products
accordingly by avoiding deceptive or manipulative tactics and avoiding the use of high pressure
(Beardin et al., 1993 ). In recent years, there has been a renewed interest in issues related to customer
orientation (Liu, 1995 ; Deng; Dart, 1994 ). These studies have shown that customer orientation is
critical to business profitability (Donaldson, 1993 ) a necessary antecedent of competitive advantage
(Ganesan, 1994 ) and a hall mark of successful business (Hall, 1992 ).
RELATIONSHIP MARKETING ORIENTATION AMONG AGENTS: It is commonly accepted
that the application of marketing principle in the insurance industry is a very recent phenomenon .Much
contemporary research in financial services marketing covers issues surrounding customer care, service
quality and customer satisfaction (Crosby et al. 1990 ; Bitner et al., 1990 ), which are terms given to the
buyer-supplier interaction that take place during the purchase and post-purchase service provided by life
insurance firms. The sales people have the opportunity to act as agents for improving the overall
performance system of service based firms. Ultimately, if the life insurance agent is effective an
insurance programme will be recommended that is tailored to the individual customer needs. However,
what is important in this situation is the interpersonal interaction between sales person and client (Levitt,
1986) , because it is the form of this association which is important in relational communication regards
the notion of an interpersonal relationship as an important unit of study for understanding how an agents
effectiveness can be increased. As a result, the present study intends to focus on the profile of the agents
and their relationship marketing orientation. Even though the profile of the agents is multi-faceted, the
present study confines it to age, gender, marital status, level of education, occupational background,
family income, nature of work, years of experience, independency in agency work, other business and
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personality index among the customers. The performance of the agents is rated only by their annual
turnover. The factors leading to their success in their business are too many, but the present study
confine it to customers orientation, relationship marketing orientation, critical factor for success and
customers relationship building practices among the agents.
Annual Turnover Achieved by the Agents
One of the important Achievements by the agents is their annual turnover. Since the annual
turnover is the important indicator of the performance of the agents, it is included in the present study.
The annual turnover achieved in the last year by the agents has been included for the study. These
amounts are confined to less than Rs.30 lakhs, Rs.30 lakhs to 60.00 lakhs and above 60 lakhs.
Annual Turnover Achieved by the Agents
Sl.No.

Annual Turnover Achieved in lakhs

Mean score among agents in

Total

Private Sector(MAX & ICICI)

PublicSector(LIC)
1.
2.
3.

Less than 30 (Group I)

30 60 (Group II)
Above 60 (Group III)
Total

18
16
21
55

9
15
25
49

27
31
46
104

* Significant at five per cent level.

The important annual turnover achieved among the agent is above RS.60.00 lakhs and Rs.30.00
to 60.00 lakhs which constitute 50.28 and 29.61 per cent to the total respectively. The most important
annual turnover achieved among the agents in public player is above Rs.60 lakhs which constitute 47.42
per cent to its total respectively. Among the agents in private sector, this is also above 60 lakhs which
constitutes 53.66 per cent to its total respectively.
Nature of Work in the Present Job
The nature of work in the present job may be full time or part time work. The nature of work
may have its own impact on the application of relationship marketing in their field and also their
achievement and profit earned through the job. In general, the full timers may be very active and
adjustable in the field of agent work compared to the part timers. The part timers may have lesser time
and knowledge on the relationship marketing in their field.
Nature of Work in the Present Job as Agent
Sl.No.
1.
2.

Nature of Work
Full time
Part time
Total

Number of Agents in
Group I
Group II
16
17
11
14
27
31

Total
Group II
31
15
46

64
40
104

The important nature of work among the agents in the present study is full time which
constitutes 62.01 per cent to the total whereas the part-timers constitute 37.99 per cent to the total.
Among the agents in Group-I, the full time agents constitute 61.11 per cent to its total whereas among
the agents in Group-II, full time agents constitutes 54.72 per cent to its total. Among the Group-III
agents, the full time agents constitute 66.67 per cent to its total. The analysis reveals that the more
prevalent nature of work among the agents in public sector is full time whereas in the private sector, it is
part time.
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Reasons for Choosing Agency in the Life Insurance Sector

The agency work may have been selected for various reasons by the agents. Since there is more
than one reason to choose the agency work, the agents are asked to rate the given reasons at a five point
scale namely highly important, important, moderate, not important and not at all important. The reasons
are identified from reviews. The identified reasons are higher income, growing industry, low
investment, less risk, flexi hours, having a relative in the field, fathers occupation, familys financial
position, achievement orientation and motivated by the sector. The assigned scores on these scales are 5,
4, 3, 2 and 1 respectively. The mean score of various reasons have been computed to exhibit the most
common reasons for choosing agency work in the life insurance field. The significant differences
among the agents in three groups have been analysed regarding each reason for choosing the agency
work with the help of one-way analysis of variance
Reasons for Choosing Agency in Life Insurance Sector
Sl.No.

Reasons

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Higher Income
Growing Industry
Low Investment
Less Risk
Flexi Hour
Relatives in the field
Fathers occupation
Familys financial position
Achievement orientation
Motivated by the sector

Mean score among agents in

Group I
Group II
Group II
2.8968
3.6069
3.9868
3.5033
3.4407
3.7142
3.1144
3.9698
3.5344
3.0785
3.8884
3.9791
2.4586
3.5451
3.8086
3.4508
2.3311
3.9962
3.2143
2.0869
3.6643
3.4401
3.1148
3.9291
2.8691
3.9193
3.3342
2.5608
3.8611
3.4086

F-statistics
3.8184*
1.4562
3.2661*
3.3084*
3.0017*
3.6168*
2.9969*
2.0661
3.1447*
3.2469*

* Significant at five per cent level.

The important reasons for choosing agency work among the agents in group-I are growing
industry, relatives in the field and familys financial position since their mean scores are 3.5033, 3.4508
and 3.4401 respectively. Among the agents in group-II, these reasons are low investment, achievement
orientation and less risk since their mean scores are 3.9698, 3.9193 and 3.8884 respectively. Among the
group-III agents, these are relatives the field, higher income and less risk since their respective mean
scores are 3.9962, 3.9868 and 3.9791. Regarding the perception of various reasons for choosing the
agency in life insurance sector, the significant difference among the two group of agents have been
identified in the perception on higher income, low investment, less risk, flexi hour, relatives in the field,
fathers occupation, achievement orientation and motivated by the sector since their respective F
statistics are significant at five per cent level.
SUGGESTIONS
Since the customers orientation among the agents is essential for their success in their careers,
the agents have to develop their customer orientation. For that the insurance companies have to provide
proper training and counseling to their agents when they start their career. After that a periodic refresher
course on these aspects are highly essential to enrich their performance. The agents have to understand
the importance of communication in their career. They have to communicate properly any events related
to their field. They should communicate their products/services though the understandable language
among their customers. The relationship marketing orientation is not sudden outcome. It has to be
developed gradually in their career. The agents understand the way in which they have to create a trust
and bonding with their customers. They have to deliver the personalized service to their customers in
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order to increase their business. Since, the service quality is an important tool which can be utilized as a
non-price competitive measure, the agents have to read and attend the special camps to enrich their
service quality. The service should be customized service because of the requirements of different
customers are different.The agents should do their agency business in a specialized manner. For that
they have to understand the customer relationship building practices in the life insurance market. They
should get a fuller involvement in all these aspects in order to achieve more in their business.
CONCLUSION
The study conclude that the factors leading to the success of the agents career in the life
insurance market are their customer orientation, relationship market orientation, and customers
relationship building practices. These factors are significantly and positively influencing the annual
performance of the agents in the life insurance market. Hence, it is concluded that the pre requisite for
the success of agents in life insurance market are their relationship marketing and customers orientation.
If the agents are practicing on these two aspects, they can perform better in the market.
REFERENCES
1.
Abratt, R and Russel, J. (1999), Relationship marketing in private banking in South Africa,
International Journal of Bank Marketing, 17/1, pp.2-19.
2.
Afshin Rahnama; Abbas Alaei; Javad Shafaee and Ali Ari(2012), Evaluation of Relationship
Marketing Dimension Effect on Degree of Customer's Loyalty of Insurance Industry in Iran,
Journal of Basic and Applied Scientific Research, 2(2):1842-1848
3.
Anderson, J.C. and Narus, J.A., (1990), A Model of Distributor firm and manufacturer firm
working partnership, Journal of Marketing, Vol.54, pp.42-58.
4.
Andrew D. Pressey and Brian P. Mathews (2000), Barriers to relationship marketing in
consumer retailing, Journal of Services Marketing, Vol.14 No.3, pp.272-286.
5.
Batterly, R. (2003), Leading Through Relationship Marketing, Tata McGraw Hill, New Delhi.
6.
Beardin, W.O., Netemeyer, R.G., and Mobly, M.F., (1993): Hand book of Marketing Scales
Multi Item Measures for Marketing and Customer Behaviour Research, Newbury Park,
C.A.Sage.
7.
Bendapudi, N. and Berry, L.C. (1997), Customers Motivation for maintaining relationship with
service provides, Journal of Retailing, 73 (1), pp.15-37.
8.
Berry, L.L., Zeithaml, V.A., and Parasuraman, A., (1990), Five Imperatives for Improving
Service Quality, Sloan Management Review, 31 (4), pp.29-38.
9.
Bitner, M.J., (1995), Building service relationship: Its all about promises, Journal of the
Academy of Marketing Science, 23 (4), pp.246-251.
10.
Bitner, M.J., B.H. Booms and M.S. Tetreault, (1990), The Service Encounter: Diagnosing
favourable and unfavourable incidents, Journal of Marketing, 54 (January), pp.71-84.
11.
Brunner, J.A., Cheu, J., Sun, C. and Zhou, N., (1989), The Role of Guandi in Negotiations in
the Pacific Basin, Journal of Global Marketing, Vol.2, pp.7-23.
12.
Callaghan, M., Mc Phail, J. and You, O.H.M., (1995), Dimensions of Relationship Marketing
Orientation, Proceedings of the Seventh Bimanual World Marketing Congress, Melbourne, July.

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THE CHALLENGES AND COMPETITION IN THE 21ST ERA OF MARKETING.

Ms. R. Naveena , Lecturer, Thiagarajar College, Madurai.
Mr. N. Syed Ibrahim, BBA Student, Thiagarajar College, Madurai.

ABSTRACT: The World has changed a lot during this millennium and it still keeps changing. In
early periods, People needs and wants are high but low in supply, brand selection and preference.
But, in this 21st Century, People have lot of opportunities. Where n number of sellers is wandering in
the market to catch n number of buyers with the help of powerful tool named marketing in an
efficient and effective way. Now the world has shrunken in the palm of hand. Due to this, Buyers are
now aware & beware of every good and bad. Overall, organizations must adapt management to be
truly successful in the global marketplace. Hence this paper includes the challenges and
opportunities that organizations are facing in era of globalization, when the whole earth has become
a single market place. Both theoretical considerations will be applied to the selected practical cases
from international and national markets.
Key words: Millennium Challenges, globalization, global market place, Starbucks, Coffee inn.
INTRODUCTION
Marketing: Marketing is the process of communicating the value of a product or service to customers,
for the purpose of influencing buyer behaviour and/or precipitate behavioural change.
Earlier approaches: The marketing orientation evolved from earlier orientations, namely,
The Production orientation (until 1950s). A firm focusing on a production orientation specializes in
producing as much as possible of a given product or service. Thus, this signifies a firm exploiting
economies of scale until the minimum efficient scale is reached. A production orientation may be
deployed when a high demand for a product or service exists, coupled with a good certainty that
consumer tastes will not rapidly alter (similar to the sales orientation). Profit Driver: Production
methods
The Product orientation (until 1960s). A firm employing a product orientation is chiefly concerned
with the quality of its own product. A firm would also assume that as long as its product was of a high
standard, people would buy and consume the product. Profit Driver: Quality of Product
The Selling orientation (1950s to 1960s) A firm using a sales orientation focuses primarily on the
selling/promotion of a particular product, and not determining new consumer desires as such.
Consequently, this entails simply selling an already existing product, and using promotion techniques to
attain the highest sales possible. Such an orientation may suit scenarios in which a firm holds dead stock,
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or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes
that would diminish demand. Profit Drivers: Selling methods
Modern Approaches
Marketing (1970s to Present Day) The 'marketing orientation' is perhaps the most common orientation
used in contemporary marketing. It involves a firm essentially basing its marketing plans around the
marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm
would employ market research to gauge consumer desires, use R&D (research and development) to
develop a product attuned to the revealed information, and then utilize promotion techniques to ensure
persons know the product exists. Profit Drivers: Needs and wants of customers
Holistic marketing (21st Century) The holistic marketing concept looks at marketing as a complex
activity and acknowledges that everything matters in marketing - and that a broad and integrated
perspective is necessary in developing, designing and implementing marketing programs and activities.
The four components that characterize holistic marketing are relationship marketing, internal marketing,
integrated marketing, and socially responsive marketing. Profit Drivers: Everything matters in
marketing.
Challenges of Marketing in a 21st Century: The concept of Marketing has changed dramatically in
recent decades, and recently the focus has moved more and more customers (compared to the products
and the sale of) global marketing and various technology issues that impact on the market. In addition,
there is a renewed emphasis on marketing to create and innovate with new and better products and
services and not only compete with other companies and marketing following the guidelines established
by competitors.
Marketing faces challenges in the 21st century to meet the following factors:
The threat of the new entrants- Which is the ratio of new to the industry and the proportion is higher,
the greater the intensity of competition.
Bargaining power of buyers- When the competition becomes intense and the number of producers is
greater, the buyer has more options for switching product, this will increase the purchasing power of the
buyer.
Threat of substitutes- The term for the more obvious is the threat of new competitors results in greater
competition and thus increases the number of substitutes.
Bargaining power of suppliers- Large number of suppliers, provide the strongest purchasing power of
the manufacturer client and vice versa.
The rivalry between competing firms in the industry- The large number of manufacturers and
likewise most of the variety of products increases the rivalry between competitors.
CASE STUDIES
THE CASE OF STARBUCKS (THE USA)
Probably one of the most famous brands in the United States and now in the whole world,
reflecting the specific lifestyle of the few generations, is definitely Starbucks. Starbucks is the largest
coffee-house company in the world, offering a wide range of various coffees, hot and cold coffee and
non-coffee drinks, sandwiches and sweet snacks.
Founded in 1979, only as a coffee bean retailer Starbucks became a coffee-house selling coffee
drinks as well as beans, when its present headmaster Howard Schultz came in and bought the company
from its former owners in 1987. Since then, an extraordinary quick expansion in the Unites States, and
from 1996 in the whole world, has begun. Now, Starbucks owns approximately 16 000 stores in the
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world and announces about opening 900 new stores outside United States in 2009 (on the other hand,
Starbucks is closing the same amount of stores in the United States).
It is obvious, that such a big success would be impossible without well selected and formulated
marketing philosophy. As one of the most innovative companies in the world Starbucks has chosen
social-ethical marketing orientation and declares care for the environment and common wealth as well as
for people. The main idea of their philosophy is defined in the Starbucks mission statement. Starbucks
has two mission statements which are placed in the official companys website: To inspire and nurture
human spirit one person, one cup, and one neighbourhood at a time and Starbucks is committed to a
role of environmental leadership in all facets of our business Social-ethical marketing orientation is
getting a trendy buzz word, as environmental and ecological problems are on the increase. Some years
ago Starbucks was criticised for wasting resources by using paper and plastic cups, for wasting water
and even funding Israel army. Now this company is shown as the best example of environmental
friendly business in the business schools around the world. Starbucks announces its corporate social
responsibility Annual reports for the public; here the company describes their attention to the employees,
customers and the environment, manifesting marketing orientation, market
Orientation and holistic marketing orientation. They started to use cups from recycled paper or
biodegradable plastic. Social responsibility is also emphasised in their coffee-bars design, posters and
various promotional campaigns (the integrated marketing sub-orientation in the holistic marketing
orientation). According to Granules et al (2008), the main idea of marketing orientation is to create the
circle of loyal clients rather than one-time buyers. Starbucks could be called a champion in this field too.
The chairman of Starbucks Howard Schultz explains, that a person gets more than just coffee when
he/she visits Starbucks he gets great people, first-rate music and a comfortable and upbeat meeting
place. Thats why people all around the world are willing to pay for coffee more than in other coffeebars they buy and experience, not a drink (the selling orientation). According to Howard Schultz,
Starbucks build personal relationships with each of their customers (this implies the relationship
marketing sub-orientation in the holistic marketing orientation). Even the waiters at Starbucks are called
baristas to make them feel exceptional and proud about their workplace, not to feel just simple service
workers (internal marketing sub-orientation in the holistic marketing orientation). Another core element
of marketing concept is to appeal to customers needs. Starbucks does everything to achieve its
costumers satisfaction. They were the first who offered free internet at their coffee-bars and started to
open the stores 10 minutes before the actual opening time just to make customers always feel welcome
and happy. Viral marketing has also become one of the most important features of Starbucks. You can
hardly find and advertisement in any newspaper or marketplace, but they build extremely strong
relationships by using social networks, internet and mouth-to-mouth marketing, which means Starbucks
meets the marketing challenges of
a) The digital age, Value proposition, Connecting to customers, Corporate social responsibility, Green
issues, Overall revised marketing strategy , Market shrinking factors (as Starbucks was forced to close
down 600 coffee-bars in the USA during the economic slowdown).
THE CASE OF COFFEE INN (LITHUANIA)
The other company selected for a comparative study is a national company, located only in
Lithuania. Coffee Inn is a coffee-bars chain opened a few years ago in Vilnius, the capital city of the
country. Started from just one coffee-bar, Coffee Inn now owns 7 coffee-bars in Vilnius and one in
Kaunas in 2007 (Vaitiekuniene, 2007). At first, Coffee Inn came into the market with the same concept
as Starbucks did. It sells coffee and various coffee drinks, served in paper cups, sandwiches and desserts
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in small, cosy coffee-bars, located in the city centre. The main difference between Starbucks and Coffee
Inn is that Starbucks is a big global company (the globalisation challenge) and can afford applying
social-ethical marketing orientation, while Coffee Inn is still too small to afford huge investments for
various social projects and campaigns and it has chosen the marketing orientation. However, Coffee Inn
expands constantly, therefore, sooner or later this company will also apply social-ethical marketing
orientation (now Coffee Inn supports various cultural festivals, such as cultural night Teb nie naktis , or
Street music day , not financially, but by helping to promote them, or by prolonging their opening hours
during these festivals). The main idea, the co-owner of Coffee Inn Nidas Kiuberis explains, is that they
sell a feeling of pleasure rather than just a cup of coffee (Obcarskaite, 2009). It seems extremely similar
to Starbucks idea. The waiters are called baristas too, Coffee Inn also offers free internet access and their
menu is quite similar to Starbucks one. Lithuanians sometimes even claim that Coffee Inn tries to copy
Starbucks. On the other hand, there are a lot of cafeterias offering similar Facilities (e .g. Vero Cafe,
Double Coffee and etc.), and Coffee Inn is not an exception. However, Coffee Inn is a lot smaller as
coffee-bars chain than Starbucks and for this reason it is much easier to control it. Being small enables
Coffee Inn to be more flexible and to react to customers demands and wants quicker and to create new
demands and wants at the same time (marketing orientation). Coffee Inn constantly offers new drinks,
snacks and other features (product orientation). They were one of the first who invited customers to
come together with their pets, set free book collection and invited everyone to come to read or to donate
a book (the communication challenge). While talking about customers loyalty, new technologies play an
important part here too (the technological challenge): Coffee Inn keeps exceptionally close relationships
with its customers using Face book social network, writing the blog and honestly replying to all the
letters and comments. The co-owner Nidas Kiuberis maintains the Coffee Inn blog himself this is very
important, as customers notice, that director of the company itself pays attention to their opinion
(Milieus, 2008). Nidas Kiuberis explains, they are following guerrilla marketing ideas, because it is
the best solution for a small business without large budget, where creativity and energy are the most
important things (Obcarskaite, 2009). Viral marketing and personal blog writing costs nothing and
gives better results, than advertisement on TV your loyalty for customers loyalty, these are the things
every company seeks, especially in a crisis time (Obcarskaite, 2009). As a result, Coffee Inn has created
a steady circle of loyal customers, who are indifferent to similar competitors, such as Vero Cafe, offers.
CONCLUSION
In the 21st Century, each ones taste and preference has been changed. People are not satisfied
with the product alone but they expect delighters. They want a close relationship with sellers for forward
and backward feedback. This can be achieved with the advent of modern technologies like Social Media
Marketing, Websites, LinkedIn, Face book, YouTube, Twitter etc., and also they want relationship higher
than just being a buyer and Seller. Consumer want seller to find their additional need to be fulfilled by
Seller. Those who have been adapting themselves to the modern environment with their own interest can
achieve greater than Sky. Sky is the only limit for Achievers.

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A STUDY ON CHALLENGES ON EMPLOYEE LIVELIHOOD AT IDDUKKI DISTRICT KERALA

Ms. Ezhlilalarasi, Research Scholar, Karpagam University.

Abstract: Cardamom is the seed of a perennial plant called Elettaria cardamom which belongs to
the family Zingiberaceae (ginger family). One of the most expensive spices in the world, second
only to saffron, it has been used for medicinal and culinary purposes for millennia and is currently
used in many cuisines the world over in both its natural and ground forms. Cardamom works are
financially above average of national GDP but the education level has been low compared to the
Keralas 100% literacy. The institutional role played by government has declined over time and
that should be strengthened.
Introduction: The definition used by Department of Foreign and International Development (DFID)
incorporates these sentiments. 'A livelihood comprises the capabilities, assets (including both material
and social resources) and activities required for a means of living. A livelihood is sustainable when it can
cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets both
now and in the future, while not undermining the natural resource base' (Chambers, R. and G.Conway,
1992). Cardamom is the seed of a perennial plant called Elettaria cardamom which belongs to the family
Zingiberaceae (ginger family). One of the most expensive spices in the world, second only to saffron, it
has been used for medicinal and culinary purposes for millennia and is currently used in many cuisines
the world over in both its natural and ground forms.
Climate and soil
Ideal climatic and soil conditions for cardamom are as follows:
Natural habitat: Evergreen forests of Western Ghats
Altitude: 600 to 1200 m above MSL
Annual rainfall: 1500 to 4000 mm
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Temperature: 10 to 35C. Considerable variations both in the total rainfall pattern and its
distribution are noticed in the cardamom tracts.
Soil type preferred: Forest loamy soils.
Soil pH: 4.2 to 6.8, generally acidic in nature.
Soil nutrient status: High in organic matter and nitrogen, low to medium in available phosphorus
and medium to high in available potassium.
Production of cardamom in India
India has been a dominant player in the context of cardamom production. It was the leader in the
spice production until Guatemala overtook Indias lead recently. Still, India is now the second largest
producer of cardamom in the world. It produces around 11500 metric tons of cardamom every year. The
cardamom cultivation is concentrated on the Western Ghats area in the country and it is also termed as
Cardamom hills. The states in India that are indulged in the production of cardamom are Kerala,
Karnataka and Tamil Nadu Kerala is the maximum contributor of cardamom to the country having a
share of around 70% in the total production. Karnataka shares around 20% production and Tamil Nadu
shares the rest. Kerala includes cardamom-growing districts like Udumbanchola taluka, Peeremedu
taluka, Devikulam taluka. Shimoga constitutes the major district, which grows this spice in Karnataka.
The Indian production got reduced in recent times and so is the area covered under the cardamom
cultivation but the productivity that was around 46 Kg/Hectare in 1970s increased up to 210 Kg/hectare
in 2003-04.
Market Influencing Factors are quality of the cardamom, Production status in competing countries
like Guatemala, Annual production and Weather conditions in the country, Domestic consumption
demand, Seasonal variations and time of arrival of the crop in the market etc..
Major trading centres of cardamom
The major trading centers in India in which cardamom is traded are
Vandanmedu (Kerala).
Saklashpur (Karnataka).
Bodinayakanur (Tamil Nadu).
Mercara (Karnataka)
Kumily (Kerala).
Medikeri (Karnataka).
Thekkady (Kerala).
Mangalore (Karnataka).
Cumbum (Andhra Pradesh).
Mumbai (Maharashtra).
Pattiveeranpatti (Tamil Nadu).
Virudhunagar (Tamil Nadu).
Cochin (Kerala).
Thevaram (Tamil Nadu)
Thodupuzha (Kerala).
Also, cardamom is traded in Indian commodity exchanges namely, National Multi Commodity
Exchange of India and Multi Commodity Exchange of India ltd.
1.2.1Objectives of the study:
Socio-economic condition
Land and building holding pattern
Dimensions of the study: Education status of the work force, Land holdings of the work force, Status
of ownership currently living in house, Area of residing house, Type of residing house, Bank a/c,
Monthly income, Voter participation, Nativity., Annual working days, Average wage rate, Source of
water.
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Research methodology:
This study is based on descriptive research. This is based on random sampling. Data collection is
primary data. Tools used is simple percentage
Objective 1: Socio-economic condition
Demographic variables: Classification of respondents based on gender
S.No Gender
No of Respondents
% of Respondents
1
Male
38
63.3
2
Female
22
36.7
Total
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100
Classification of respondents based on age:
Frequency Percentage Valid Percentage
Valid
16-20
2
3.1
3.3
20-25
2
3.1
3.3
25-30
5
7.7
8.3
30-35
6
9.2
10.0
35-40
21
32.3
35.0
40-45
12
18.5
20.0
45-50
8
12.3
13.3
50-55
2
3.1
3.3
55-60
2
3.1
3.3
Total
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92.3
100
Interpretation:
40% of the employees are belongs to the age of 35-40
20% of the employees are belongs to the age of 40-45
15% of the employees are belongs to the age of 45-50
10% of the employees are belongs to the age of 30-35
5% of the employees are belongs to the age of 16-20
5% of the employees are belongs to the age of 50-55
5% of the employees are belongs to the age of 55-60
Classification of respondents based on experience
Valid < than 1 Year
1-5yrs
5-10yrs
10-15yrs
15-20Yrs
2025yrs
25-30yrs
30-35yrs
35-40yrs
Total

Frequency

Percent

Valid Percent

5
11
7
6
9
8
7
5
2
60

7.7
16.9
10.8
9.2
13.8
12.3
10.8
7.7
3.1
92.3

8.3
18.3
11.7
10.0
15.0
13.3
11.7
8.3
3.3
100.0

Interpretation:
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Cumulative
Percent
8.3
26.7
38.3
48.3
63.3
76.7
88.3
96.7
100.0

1. 17% of the respondents having 1-5 yrs of experience.

2. 15% of the respondents having 10-15 yrs of experience.
3. 14% of the respondents having 20-25 yrs of experience.
Variables of the study:
Classification of respondents based on their bank a/c, voter participation, nativity:
Variable
Parameters
Cardamm
Parameters
Cardamom
Bank account
Possessing
43
Not Possessing
17
Voter Participation
Voting
60
Not Voting
0
Nativity
Kerala
3
Others
57
Interpretation:
43 respondents possessing bank account.
All the respondents are voting.
Nativity of respondents is not from Kerala
Classification of ownership status of the respondents, area of residing house, monthly earnings of the
respondents:
Variable
parameters cardamom
parameters cardamom parameters cardamom
owner ship status own
31
Lease
5
Rent
24
area of residing
house
less than 50 1
100-200
31
above 200 28
monthly earnings of
respondents
1500-2500
0
5000-7000 0
7000 above 60
Interpretation:
31 of the respondents own the house.
28 of the respondents are residing in 100-200 sqft houses.
All the respondents are earning above 7000.
Classification of respondents based on Landholdings, type of residing house:
Variable
land
holdings
respondents

of

type of residing house

Parameters

cardamom

no land
lessthan10
cents
upto10 cents
10=50 cents
Normal
Aluminium
asbestos sheet
thatch house

24

the
2
6
28
25
22
3
10

Interpretation:
28 of the respondents holding 10-50 cents.
25 of the respondents residing in normal houses.
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Classification of respondents based on the Education status , source of water.

Parameter
Cardamom
Parameter
Illerate
22
Well
Primary
6
Rain
Educational Status
source of water Tap
up to 10th
7
10th
14
Canal
10+2
8
well\rain
upper schooling
3
Interpretation:
22 of the respondents are illiterate
38 of the respondents get water from rain.

Cardamom
0
38
0
11
11

Findings:
1. 60% of the employees are male gender
2. 40% of the employees are belongs to the age of 35-40
3. 17% of the respondents having 1-5 yrs of experience
4. 37% of the respondents are illiterate. Well below Kerala standard
5. 55% of the respondents are living in their own house.
6. 45 % of the respondents holding above 50 cents of land
7. 55% of the respondents residing house are 200-500 sqft.
8. 42% of the respondents residing house is normal.
9. 70% of the respondents having bank a/c.
10. All the respondents are participating in election.
11. 55% of the respondents working days are 250-300 days.
12. All the respondents wage rate is Rs 300/
13. The median per capita income of the respondents is 75,000 rupees.
14. 65% of the respondents source water from rain
Suggestions:
1. Female participation should increase in this job
2. Local Government should provide safe drinking water facilities to the residents.
3. Measures to improve literacy rate which is low compared to Kerala average
Conclusion:
Cardamom works are financially above average of national GDP but the education level has been low
compared to the Keralas 100% literacy. The institutional role played by government has declined over
time and that should be strengthened. Jenakeeiya Ausutranam people planning should be implemented
and the people should be included in the decision making process.
The high water turnout (95%) and high median wage shows gains made by people movement in early
independent India, since everyone has their home & some cultivated land, is much more egalitarian than
rest of India .but low education. Level (37%) shows that in no investments made in physical
infrastructure that has been made a drag on standard of living.
BIBLIOGRAPHY
1. Bhowmik, Sharit Kumar (1980), The Plantation as a Social System,
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2.
3.
4.
5.
6.

Economic and Political Weekly 15(36), pp. 1524-1527.

Bhowmik, Sharit Kumar (1982), Class Formation in Plantation System,
Economic and Political Weekly, 17 (30), p. 1180.
Government of Kerala (2006), Panchayath Level Statistics- Idukki
District, Department of Economics and Statistics,
Thiruvananthapuram.
7. ILO Report (2001).
8. ILO Report (1993).

CHALLENGES AND SOLLUTIONS IN MARKETING

Mr. S.Lakshmanaraj, Internal Auditor, Chennai Silks (Corporate), Thirupur

INTRODUCTION: Lots and Lots of opportunities are there in Marketing, the challenges are lot more
than that of opportunities as the forum is free for all. In this paper Ive noted the challenges and the
solutions for the marketing people.
CHALLENGES:
1. Technology adoption and automation: An ongoing challenge is balancing human intelligence,
strategy, and likability with the precision of analysis gleaned from big data. Theres much professional
fear of technology. Some deals with nomenclature and the failure of tech and social media firms to make
their products easily accessible. We also need information and education to get more specific, refine
roles, and better define which data sets matter, as well as how people can master these evolving tools.
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2. Integration: Marketing in the Round (co-authored with Gini Dietrich) has been out for a year, and
most marketers agree that integration should occur in marketing, but it remains a huge issue. People still
think in silos and are not stretching to create better results by teaming with other communicators.
3. Rapidly evolving media: Media evolution remains a huge issue. It used to be that you could become
comfortable for a short period of time. Even the first wave of major social networks (MySpace, Face
book, Twitter) had staying power. Today, media evolves quickly, and volatility is part of the game. What
worked last year wont this year? Look no further than the decrease Face book has suffered in tactical
viability for some types of business. Marketers have to move away from channel-specific strategies and
must adopt a truly liquid approach to communication. They must deliver a complete content and
engagement effort to serve stakeholders wherever they are and however they like to receive information
in that channel. Further, businesses should adopt an attitude of ongoing experimentation.
4. Transition to the Internet: The Internet is accessible everywhereor close to it. The current
responsive-design movement addresses the shift temporarily, but the market will soon discover that
although making one-size-fits-all Web pages may be attractive, we need custom environments to
differentiate. Theres nothing wrong with a few mobile-specific pages. As marketing IT budgets
increase, developing specific experiences for each conduit will best serve stakeholders and brands alike.
5. Video and visual skills missing: The visual revolution is here, and most small and mid-size
businesses are not competing effectively. Some of that lag is a matter of financial resources, but most of
it is training and skill sets. Todays communicators are writers, pitchers (PR), or networkers. They dont
think visually. The next generation of communicators will have a combined skill set of visual and verbal
creativity. We need to get them into the workforce quickly. Seasoned executives would benefit from
training as well.
6. Nurturing skills for inbound marketing: A majority of leads expected to come via online content
and other forms inbound marketing. To succeed communicators have to understand customer
experiences and needs and must build more intelligent conversion paths on their sites, in call centers,
and in stores. Through the use of data analysis and intelligent content, nurturing customers should
become more customized and targeted toward niches.
7. Stuck in social media/community management: Perhaps this is a function of the social media
expert/blogger, but the general conversation online seems to lag the challenges that CMOs face. Singleperson or small social media consultancies with fewer than 10 people dont deal with enterprise-level
issues like this. Instead, they are often limited in conversation to their tactical area of expertise.
SOLUTIONS:
1. Research Content: Research is always a fundamental component of problem solving. Before you
allocate resources to solve a problem, you must first ensure there's not an existing solution already. What
does your industry need that it doesn't already have? Brainstorm potential gaps within your niche,
whether that gap is content, resources, products, or tools. After you've compiled such a list, spend time
searching the web to make sure your idea doesn't already exist.
2. Ask Your Audience a Question: What better way to find a targeted problem worth solving than
posing a question to your consumer base/audience? That's precisely what Dinesh Agarwal did when, on
Reddit, he asked if there were any small SEO tools people wanted to see built and have free access to.
There are an abundance of tools meant to accommodate the average SEO is her/his everyday work. And
most of us in the SEO industry are always finding a need for a new tool.
3. Create an Industry Survey: Sometimes it isn't enough to ask your audience a single question. If you
really want to dig deep into industry problems, you're going to need to ask a conglomerate of questions.
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Not only are surveys routinely linked to, but they offer branding opportunities and place
your company as a thought leader within your industry. Marketers love data, and Moz is at the forefront
of collecting data
4. Talk to Industry Experts: If you're looking for a more targeted industry problem, you could try
speaking to experts/influencers as well. Of course, you'd need the leverage to gain these people's
attention, first. One truth about experts, no matter the industry, is that they love sharing their opinions.
This is commonly how they become recognized as experts..
5. Create a List of Persona Pain Points: Creating a list of persona pain points is a common marketing
strategy to address the needs of your audience. A persona pain point is an issue your target audience
needs solved. Make a list of these issues, and find a way to accommodate them.
7. Watch Industry Forums: It's the internet age; there are forums for everything. Forums are the clubs
of the World Wide Web; a collection of individuals who all share a common passion (or severe distaste)
for something. If you aren't observing forums where your customers are most likely to gather and
interact, you're making a mistake. Participation isn't a necessity, but you should at least be keeping an
eye on the grumblings on relevant forums. If you're looking to pinpoint problems to alleviate, forums
can be a hot bed.
8. Watch Competitors:"Keep your friends close and your enemies closer." Sun Tzu Enemies may be
an inflammatory term to use for your competitors, but the point remains the same. Mirroring strategies
and opportunities from your competitor is an age-old marketing trick.
CONCLUSION:
Its easy to adopt an idea rather than implementing new idea without knowing that the new idea
for us is already implemented by others. Hence do research to find the existing solutions.
REFERENCE:
www.pragmaticmarketing.com/.../ten-marketing-challenges
www.marketing.about.com
www.marketingprofs.com/topic/all

CHALLENGES AND COMPETITIONS IN NEW ERA OF MARKETING

Mr. T.Ragu Pandi , BBA Student , Mary Matha College Of Arts And Science ,Theni

INTRODUCTION
The concept of marketing has changed dramatically in recent decades, and recently the focus has
moved more and more customers (compared to the products and the sale of) global marketing and
various technology issues that impact on the market. In addition, there is a renewed emphasis on
marketing to create and innovate with new and better products and services and not only compete with
other companies and marketing following the guidelines established by competitors. Marketing is
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defined as the process of determining the needs and wants of consumers and being able to deliver
products that satisfy those needs and wants. Marketing includes all of the activities necessary to move a
product from the producer to the consumer.
PORTER 5 FORCES OF COMPETITION MODEL
Marketing faces challenges in the 21st century to meet the following parameters:
1. The threat of the new entrants - which is the ratio of new to the industry, and the proportion
is higher, the greater the intensity of competition.
2. Bargaining power of buyers When the competition becomes intense and the number of
producers is greater, the buyer has more options for switching product, this will increase the purchasing
power of the buyer.
3. Threat of substitutes - the term for the more obvious is the threat of new competitors results in
greater competition and thus increases the number of substitutes.
4. Bargaining power of suppliers - large number of suppliers, provide the strongest purchasing
power of the manufacturer client and vice versa.
5. The rivalry between competing firms in the industry - the large number of manufacturers and
likewise most of the variety of products increases the rivalry between competitors.
VIRAL MARKETING
Viral Marketing started out as individuals forwarded emails from one person to another, but
evolved into an extreme complex advertising medium that many companies are currently utilizing. Viral
Marketing includes the use of downloads from websites and promotional incentives. The users of this
marketing medium are using local contacts and intimate market knowledge to build stronger
relationships than those developed through more impersonal media. The issue of hand, is this an
unethical marketing or business tactic. On the Internet, Viral Marketing is any marketing technique that
includes Web sites or users to pass on a marketing message to other sites or users, creating a potentially
exponential growth in the messages visibility and effect.
HISTORY OF VIRAL MARKETING
The term Viral Marketing was established by Steve Jurveston in 1997 in a Netscape Newsletter.
Jurveston described the promotional campaign that he was utilizing to promote his new internet based email program, Hotmail.His success did not come from an intensive advertising campaign, but from users
and everyday consumers of the Internet. Viral Marketing strategies attempt to harness the power of
trusted recommendations of friends and colleagues. The Viral message can spread either intentionally or
unintentionally. When consumers find a goods or service compelling, they spread the news intentionally
when they communicate to others.

ELEMENTS OF A VIRAL MARKETING STRATEGY

A Viral Marketing strategy need not contain all these elements, but the more elements it embraces, the
more powerful the results are likely to be. An effective Viral Marketing strategy there six basic elements.
1. Gives Away Valuable Products or Services.Free is the most powerful word in a marketers
vocabulary. Most Viral Marketing programs give away valuable products or services to attract
attention. Free e-mail services, free information, free cool buttons, free software programs that
perform powerful functions but not as much as you get in the pro version. Give away
something, sell something.
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2. Provides For Effortless Transfer To Others. Public health nurses offer sage advice at flu

3.

4.

5.

6.

season: Stay away from people who cough, wash your hands often, and dont touch your eyes,
nose, or mouth. Viruses only spread when theyre easy to transmit. Viral Marketing works
famously on the Internet because instant combination is easy and inexpensive.
Scales Easily From Small to Very Large. To spread like wild fire, the transmission method
must be rapidly scalable from small to very large. The weakness of the Hotmail model is that a
free email service requires its own mail servers to transmit the message. You must build in
scalability to your viral model.
Exploits Common Motivations and Behaviours. Clever Viral Marketing plans like advantage
of common human motivations. The resulting urge to communicate producers millions of Web
sites and billions of email messages. Design a marketing that builds on common motivations and
behaviours for its transmission and you has a winner.
Utilizes Existing Communication Networks. Most people are social. Social scientists tell us
that each person has a network of 8 to 12 people in his or her network of friends, family, and
associates. A persons broader network may consist of corers, hundreds, or thousands of people,
depending upon his or her position in society.
Takes Advantage of others Resources. The most creative Viral Marketing plans use others
resources to get the word out. Affiliate programs, for example, place text or graphic links on
others websites. Authors, who give away free articles, seek to position their articles on others
web pages. Now someone elses news print or web page is relaying your marketing message.

VIRAL CYCLE TIME

Antonio Rodriguez built Tabblo around the same time that YouTube was built. Both sites
were viral, but while Tabblo was reasonably successful, YouTube exploded and amassed users at a rate
that had not been seen before on the Internet.
The full Viral Cycle involves several steps that work in a loop:

The Viral Cycle Time is the time that it takes for this cycle to complete. In YouTubes case the Viral
Cycle Time was extremely short: a user would come to the site, see a funny video, and immediately send
the link on to their friends. Tabblo, on the other hand, had a much longer cycle time. A consumer would
post some photos on the site and invite their friends.
ADVANTAGES OF VIRAL MARKETING
It is an inexpensive way for marketers to promote their goods and services. It is essence an e-mail that
is sent to individuals on a mailing list with the intent that those recipients will forward the message to
their families, friends, colleagues, and constitutions. Viral Marketing can be used very inexpensively
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with e-mail, chat rooms, and bulletin boards. It is a very cost effective way to reach large target
audiences. It adds a personal touch with the consumer, because in many cases the email or information
was forwarded to them from someone they know and/or trust. This party endorsement is convincing and
powerful because we all rely on the opinions of trusted friends and family.
Encouragement to users spreads the information and creates the potential for exponential growth for
exposure, influence and demand
Viral marketing is generally used in a discreet, subtle, and unique way. It entertains the recipients and
their attention. It encourages e-mail sharing by placing a message in a signature file, as, requesting
referrals. Incentives are used as rewards to consumers for using their product or service. This has proved
to be an effective inexpensive way to reach their target market.
DISADVANTAGES OF VIRAL MARKETING
Viral marketing appears to be an open invitation to spammers to make some quick money by using
friendship to sell their goods and services. Another perspective of viral marketing is that it is an e-mail
pyramid selling scheme. What is interesting is if you check out a recent Viral Marketing message that
you have received, the numbers identifying the person who is supposed to get the referral credit is
supposed to get the credit were rarely repeated, which indicated that somebody was keeping the
spammers under control. Sometimes you will note that there is a list of cancelled accounts, which
include some of the identification numbers of those spammed by readers.
Consumers lack of trust is illustrated by a recent privacy survey conducted by IBM in which 78 % of
responding U.S. consumers stated they did not complete online purchases because they were concerned
about their personal data might be used by the site or identity theft. A similar survey conducted by
Jupiter supported the IBM findings. Jupiter found that 58 % of respondents worry about companies
selling their personal information to others. Marketers face unique challenges created by e-commerce.
To overcome this negative perception, marketers must gain the trust of consumers and identify their
privacy policies explicitly on their sites. Consumers are being overwhelmed by a significant number of
viral marketing messages and promotions. Consumers are becoming annoyed and frustrated at the
number of emails addressed to them from viral marketers. Viral Marketing requires at tremendous
amount of computer literate programming support and viral marketers assume that the consumer has the
technological skills and know how to react positively to their viral marketing program.
CONCLUSIONS AND RECOMMENDATIONS
The evidence is overwhelming that there are some serious ethical questions and concerns with
viral marketing. The success or failure of a technology implementation project is determined in the
initial phases of the project - like anything you build: the design and the foundations must be sound. The
analysis phase should be conducted by a team of experts including key business representatives and
experienced consultants. Only after a meaningful analysis phase, can a realistic plan be developed and
maybe even a revised business case. By trying to fit an implementation into an unrealistic plan the
expected benefits will not be achieved and the project will go over time and over budget - in other words
the project will fail. Viral Marketing will continue to grow and the consumer will lead the charge on the
future direction and success of viral marketing.
EMERGING CHALLENGES IN THE FIELD OF HUMAN RESOURCE MANAGEMENT
Dr. S.Chitra, Principal & Associate Professor, Nadar Saraswathi College of Arts & Science, Theni.
Ms. J.Krishnaveni, Lecturer, Nadar Saraswathi College Of Arts & Science, Theni.
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ABSTRACT: Firms have the capital, technology and human resources but the HR is the one who
can propel all other resources to face the challenges of modern business. This millennium is driven
by the globalization, liberalization and technological development. This expansion of international
business has concomitant with international movement of labour. This emerging complexities and
international employees created various challenges to the HR managers. The understanding and
identification of the challenges in this modern business era is vital to capture its essential attributes.
Hence, this study is done on this perspective of stating the emerging HR challenges and suggestions
to overcome in order to sustain success.
Introduction
The approach of the past two decades has brought about new challenges for human resources
departments and practitioners around the world. These new challenges raise questions about the nature
of HR practices and the role of HR professionals, this imply new approaches for the HR functions to the
achievement of global mobility, efficiency and competitiveness. By conceiving these perspectives in the
mind, this study has evolved with the objective of identifying the various challenges and the strategies to
overcome.
Objectives of the Study
The main objective of this paper is to perceive the challenges of the new era in terms of HRM
and with the acquaintance of these challenges, the HR managers and practitioners may equipped
themselves to respond by taking advantage of gradual profound changes in the nature of the field,
current practices and overall human resource management policies, mission and vision in order to
overcome these challenges of modern business environment.
Human Resource Management challenges
The international movement of labor has the issues associated with the management of human
resources across International borders are increasingly important to international human resource
managers and academics. This poses a lot of challenges to HR managers;

Attracting, motivating, and retaining employees

HR benchmarking and measurement
Employee benefits and compensation programs including pensions
Executive compensation and HR governance
Global work force mobility and expatriate planning
Transaction-related human resource issues
HR function effectiveness and service delivery

In the Survey of Global HR Challenges: Yesterday, Today and Tomorrow, conducted by

PricewaterhouseCoopers on behalf of the World Federation of Personnel Management Associations
(WFPMA), they revealed several challenges for human resource management i.e. leadership
development, organizational effectiveness, change management, compensation, health and safety, staff
retention, learning and development, succession planning. Staffing: recruitment and skill labour.
Recruitment and Retention
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Organisations promote the idea that employees are their biggest source of competitive advantage. Yet,
too many organisations are unprepared for the challenge of finding, motivating and retaining skilled and
talented individuals in todays labour market (Hartel, & Fujimoto 2010). Attention has been drawn to an
imminent shortage of capable workers by a number of global studies. According to two global surveys,
conducted by McKinsey Quarterly in 2006 and 2007, finding talented people is the single most
important challenge for organisations worldwide (Guthridge, Komm, & Lawson, 2008).
Work life balance
Employees have changing needs and organisations are required to respond to these flexible work
styles. Many employees are now looking for more than just remuneration and organisations need to
understand this quest in order to assist their staff to have a better balance. Organisations responses to
employees needs may range from providing flexible work arrangements to addressing employees
growing desire to have more family-friendly working environments. HR practitioners need to be
significantly more proactive in their approach towards improving work-life policies.
Workforce Diversity
Managing diversity is the practice of understanding and embracing social differences for the
mutual benefit of both employees and organisations (Wilson, Gahlout, Liu, & Mouly, 2005). A major
challenge for HR practitioners in the future will be coordinating work efforts of diverse organisational
members in accomplishing the organisational goals to retain their workers.
Baby Boomers
According to the U.S. Bureau of Labour Statistics (BLS) Employment Outlook: 2010-2020
report published in the January 2012 issue of Monthly Labour Review, slower population growth will
lead to a decreasing rate of growth in the overall labour force from 2010 to 2020. The BLS also forecasts
that there will be 54.8 million total job openings in the 2010-2020 time periods with well over half
61.6% from replacement needs. These are jobs that result from the direct replacements of workers
who retire or otherwise permanently leave an occupation. A rise in replacement needs is expected in
virtually every occupation including occupations in declining industries. HR professionals potentially
experience challenges related to the replacement of older workers with younger generation, who may not
be far enough along in their careers to replace retiring workers at higher levels.
Suggestions
HR practitioners have a key role to play in ensuring that organisations have a continuous supply
of suitably qualified and trained employees. Reaching the best candidates in the market requires an
advanced approach to sourcing talents. There is a need to renovate current recruiting and staffing
processes and HR practitioners need to work closely with other departments and pay special attention to
staffing issues (Strack et al., 2008). HR professionals may use social networking sites for recruiting,
employer branding and other purposes, updating technology use policies for employees, expanding the
use of e-learning, and expanding the use of technology-based employee and manager self-service
applications.
More flexible time-off arrangements can also encourage more education and training, which
ultimately addresses the issue of skill shortages. If organisations accept that HR practices are potentially
going to produce beneficial outcomes for the organisation and the employee which may help them to
have good balance between work and life.
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The HR managers and other authorities must invest time and effort to formally ingrain diversity
into the culture if they want to maximise the potential of all available talent from various backgrounds,
experiences and cultures. They should effectively implement diversity management programmes and
deal with the application of legislative issues of diversity management.
Many organizations are already actively developing their next generation of leaders to prepare
for the replacement of aging workforce through Succession planning with the aid of 360 degree
feedback system.
Conclusion
However potential human resource is essential to gain competitive advantage over others and enable a
company to compete in the foreign market. Therefore all the HR Managers are in the need to aware of
all the challenges and to come up with several strategies to develop and retain such human resource
which makes an organisation successful in the field of globalisation. Today, many business leaders and
executives view HR as a non-strategic cost centre instead of a core, profit-contributing function. With an
eye on the future, HR professionals in countries around the globe will continue to place talent
management as their highest priority. They will also plan ahead by focusing on the next generation of
leaders, by preparing for a changing workforce and by finding ways to engage employees more
effectively. In addition, they must continue to manage their own professional growth through building up
their HR competencies, acquiring the needed training and education, and continuously learning from
their HR peers and other business colleagues through associations, online groups and educational bodies.
Reference
Guthridge, M., Komm, A. B., & Lawson, E. 2008. Making talent a strategic priority. The
McKinsey Quarterly, 1, 49-59.
Hartel, C. E. J., & Fujimoto, Y. 2010. Human resource management: Transforming theory into
innovative practice. Australia: Pearson Education.
Strack, R., Dyer, A., Caye, J., Minto, A., Leicht, M., Francoeur, F., et al. (2008). Creating people
advantage: How to address HR challenges worldwide through 2015. USA: World Federation of
Personnel Management Association.
Wilson, M., Gahlout, P., Liu, L., & Mouly, S. 2005. A rose by another name: The effect of
ethnicity and name on access to employment. University of Auckland Business Review, 7(2), 65-72.
www.shrm.org/research

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IMPACT OF INFLATION ON MONEY SUPPLY

Mrs.Susheela Sankar, Associate Professor, Nadar Saraswathi College of Arts & Science, Theni
Mrs.C.Keerthika, Lecturer, Nadar Saraswathi College of Arts & Science, Theni

ABSTRACT: Currency is an integral component of modern civilization. This paper attempts to

investigate the impact of Money supply on Inflation rate in India. Inflation is a sign that, an economy
is growing. In some situations, little inflation can be just as bad as hyper-inflation. Inflation rates in
India are usually quoted as changes in the Wholesale Price Index, for all commodities. The WPI
measures the price of a representative basket of wholesale goods. The Reserve Bank Endeavours to
ensure the availability of adequate quantities of reasonably good quality notes and coins to meet the
demand for cash transactions in the country. This paper aims to find the impact of inflation on
money supply. Here we encountered the details on deflation and its impact on the money supply, in
which we found that to liquidate the currency in India RBI, published excess coins and notes
comparatively. Issuing banknotes with ever-larger numbers of zeros will not solve the underlying
problem; the Indian government needs to take steps to prevent hyperinflation. One way to head off a
hyperinflationary crisis is to raise interest rates, therefore discouraging borrowings.
INTRODUCTION:
Currency is an integral component of modern civilization. This paper attempts to investigate
the impact of Money supply on Inflation rate in India. Inflation is a sign that, an economy is growing.
In some situations, little inflation can be just as bad as hyper-inflation.
INFLATION:
. Inflation rates in India are usually quoted as changes in the Wholesale Price Index, for all
commodities. The WPI measures the price of a representative basket of wholesale goods. In India, this
basket is composed of three groups:
Primary Articles (20.1% of total weight),
Fuel and Power (14.9%) &
Manufactured Products (65%).
Thus the latest WPI has a basket of 676 items with 5482 quotations.
Historically, from 1969 until 2013, the inflation rate in India averaged 7.7% reaching an all time
high of 34.7% in September 1974 and a record low of -11.3% in May 1976.
Critics in Measuring Inflation:
The major criticism for this index is that 'the general public does not buy at the wholesale
level',
WPI does not give the actual feeling of the amount of pressure borne by the general public.
Wholesale price index does not capture the price movement of services and is hybrid of
consumer and producer price quotes.
Causes of Inflation:
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Demand-Pull Inflation - This theory can be summarized as "too much money chasing too few
goods". In other words, if demand is growing faster than supply, prices will increase. This usually
occurs in growing economies .It implies that if the money supply is in high volume then eventually
the inflation happens.
Cost-Push Inflation - When companies' costs go up, they need to increase prices to maintain their
profit margins. Increased costs can include things such as wages, taxes, or increased costs of imports.
MONEY SUPPLY
Money as a means of payment consists of coins, paper money and withdraw able bank
deposits. Today, credit cards and electronic cash form an important component of the payment
system. Notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500
and Rs.1000.Coins in India is available in denominations of 50 paisa, one rupee, two rupees and five
rupees. Coins up to 50 paise are called 'small coins'. The Reserve Bank can also issue notes in the
denominations of one thousand rupees, five thousand rupees and ten thousand rupees, or any other
denomination that the Central Government may specify. There cannot, though, be notes in
denominations higher than ten thousand rupees in terms of the current provisions of the Reserve Bank
of India Act, 1934. Coins can be issued up to the denomination of Rs.1000.Recognizing the important
role that currency plays in the smooth functioning of an economy, its management has in modern
times been vested with the central bank of a country, in the expectation that such an arrangement will
lead to a standardization of the currency and prevent its debasing either by private merchants or by
governments. The Reserve Bank of India Act 1934 specifies the central banks objective as regulating
the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in
India Thus currency management, which was originally the primary function of a central bank,
still continues to be one of its major functions.
The central bank is entrusted with the responsibility of ensuring that the aggregate supply as
well as the denominational structure closely corresponds to what is demanded by residents. Hence the
need for paying close attention to the factors that influence currency demand by households, firms,
financial intermediaries, the government sector and (to some extent) the external sector. In India,
Reserve Bank is entrusted with the responsibility of currency management. The Reserve Bank
Endeavours to ensure the availability of adequate quantities of reasonably good quality notes and
coins to meet the demand for cash transactions in the country.
MONEY SUPPLY AND INFLATION
There is a puzzle formation between low-rate of inflation and a high growth of money supply.
When the current rate of inflation is low, a high worth of money supply necessitate the tightening of
liquidity and an increased interest rate for a moderate aggregate demand and the avoidance of any
potential problems.
The Figure.1 shows the change in inflation rate for the last 10 years.

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The Figure.2 shows the change in currency production (2003 2012)

The Table 1 shows the rate of change in currency and inflation from 2003 201
YEAR

AVERAGE INFLATION CURRENCY

RATE
SUPPLY

2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

6.74
7.06
7.17
5.87
5.14
8.43
2.3
9.38
9.58
7.5
6.21

CHANGE IN
INFLATION

1.029329515
1.324462645
1.70542159
2.21503777
2.877665175
3.611094312
4.357021345
5.40580139
6.187080575
7.13638211
Correlation

CHANGE IN CURRENCY
SUPPLY

0.32
0.11
-1.3
-0.73
3.29
-6.13
7.08
0.2
-2.08

0.380958945
0.50961618
0.662627405
0.733429137
0.745927033
1.048780045
0.781279185
0.949301535

0.298947915

Analysis on Deflation:
Deflation is the opposite of inflation. Deflation refers to situation, where there is decline in
general price levels. Thus, deflation occurs when the inflation rate falls below 0% (or it is negative
inflation rate). Deflation increases the real value of money and allows one to buy more goods with
the same amount of money over time. Deflation can occur owing to reduction in the supply of
money or credit. Deflation can also occur due to direct contractions in spending, either in the form
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of a reduction in government spending, personal spending or investment spending. Deflation has

often had the side effect of increasing unemployment in an economy, since the process often leads to
a lower level of demand in the economy.
The Deflation happened in the month of July and August 2009 (figure 3)

But there is a high rate of change in money supply at the same deflation period. (figure 4 )

While a fall in prices may sound like good news to most laymen, economists see this as an ominous sign
of a collapse in demand in the economy. A recent Citibank report echoed this concern in the Indian
context saying that the present trend of decline in inflation was not because of any improved efficiency
in the economy but because of falling demand. The report warned that this trend would weaken
economic activity and discourage investments, which would affect the economy in the longer term.

The rapid decline in Wholesale Price Index (WPI) inflation, which has come down from its peak level of
around 13% in August 2008 to less than 1% in April 2009, allowed the RBI to completely shift its focus
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from inflation to growth. Since October 2008, the RBI has injected a considerable amount of liquidity
into the economy through a series of policy rate cuts. The cash reserve ratios of banks has been brought
down from 9% to 5%, while the repo rate15 has been slashed by 425 basis points. Further, in order to
discourage the banks from parking overnight funds with the RBI, the reverse repo rate16 has been
gradually reduced from 6.0% in November 2008 to 3.25% in April 2009. The statutory liquidity ratio
(SLR) has been lowered by one percentage point. Apart from this, some special refinancing schemes
have also been announced to improve the liquidity for certain sectors. The cash reserve ratios reduction
of 400 basis points since September 2008 alone has led to an injection of US$32.7 billion. In addition,
another sum of US$12.9 billion has been injected through unwinding the market stabilization scheme.
As of April 2009, a cumulative amount of nearly US$80 billion has been pumped in to the system (RBI
2009d).
Stagflation:
Stagflation refers to economic condition where economic growth is very slow or stagnant and
prices are rising. The term stagflation was coined by British politician Iain Macleod, who used the
phrase in his speech to parliament in 1965, when he said: We now have the worst of both worlds - not
just inflation on the one side or stagnation on the other. We have a sort of stagflation situation.
The side effects of stagflation are increase in unemployment- accompanied by a rise in prices, or
inflation. Stagflation occurs when the economy isn't growing but prices are going up. At international
level, this happened during mid 1970s, when world oil prices rose dramatically, fuelling sharp inflation
in developed countries.
Hyperinflation:
Hyperinflation is a situation where the price increases are too sharp. Hyperinflation often occurs
when there is a large increase in the money supply, which is not supported by growth in Gross Domestic
Product (GDP). Such a situation results in an imbalance in the supply and demand for the money. In
this remains unchecked; it results into sharp increase in prices and depreciation of the domestic currency.
India is at risk of hyperinflation because the growth rate of its GDP, which had been growing strongly
since economic liberalization in 1991, has been dropping since 2010. The result is that peoples both
inside and outside India are starting to lose faith in the value of the Indian rupee. There are already signs
that wealthy Indians are trying to protect themselves from hyperinflation by exchanging their monetary
wealth for tangible assets such as gold.
Suggestion:
The first thing that the Indian government will need to do is to approve the circulation of
banknotes of higher denominations. For the first time in 2011-2012, as many Rs 1,000 notes
were printed as Rs 500 ones. The Reserve Bank of India (RBI) is currently allowed to print notes in
denominations of up to Rs 10,000 but even these notes will quickly lose their value if hyperinflation
occurs. Issuing banknotes with ever-larger numbers of zeros will not solve the underlying problem; the
Indian government needs to take steps to prevent hyperinflation. One way to head off an
hyperinflationary crisis is to raise interest rates, therefore discouraging borrowing. During periods of
hyperinflation, banks actually lose money on loans, as the money they are repaid is worth less in real
terms than the amount they lent out. Raising interest rates protects the banks from financial catastrophe.
Conclusion
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In this paper we have attempted to present the main trends in the composition of Indian currency
over the past few decades. The standard determinants of this composition such as inflation have also
been examined. Weve also analyzed the reason why money supply is becoming high in the Deflation
scenario. That the average value of a currency note did not keep pace with inflation. However, the
analysis needs further refinement to take into account other factors, such as the underground economy
and currency substitutes for payment (such as credit/debit cards, internet banking and cheque payments).
The non-availability of reliable and adequate data on these factors is, however, a major hurdle to such an
extensive analysis.
REFERENCE
The race against hyperinflation - July 31, 2012 Ranjan Varma - Economic times Article
Indias GDP: http://www.tradingeconomics.com/india/gdp-growth
Indias inflation rate: http://www.tradingeconomics.com/inflation-rates-list-by-country

Modeling
currency
Demand
in
India:
An
D.M.Nachane,A.B.Chakraborty,A.K.Mitra,Sanjib
-http://www.rbi.org.in/scripts/statistics.aspx
Coins and Currency - http://www.rbi.org.in/scripts/statistics.aspx

Empirical

study

Bordoloi.

STRATEGIES AND CHALLENGES TO WITHSTAND IN THE BUSINESS FIELD

Mrs. J.Malarvizhi, Assistant Professor, Nadar Saraswathi College of Arts & Science, Theni

Abstract Business man must know not only national business event and also international events
and assess their significance in wider national, regional, or worldwide contexts. It is possible for
managers to know everything about national cultures and international trends, international
business challenges. A small business is almost like a family, and, like many families, they can
work well, or they can be dysfunctional. In big companies, the human resource challenge is politics
and fit in the workplace. Businessmen have to create business idea; the next challenge is raising
capital in business. To overcome the challenge of raising capital, business man must develop the
ability to sell idea and vision to potential investors. Finding good employees is a minor task
compared to the business challenge of forging your hired employees into a team. The next
challenge is finding good customers to sell our products as well as retain them. Competition is the
next challenge. Business man will face when starting a business. Most individuals see competition
as a plague but I see competition as a good challenge. Business man must identify the competitor;
spot out the competitors strengths and weaknesses. The business marketing strategies is to build a
brand for our business. Identify and assess your company's current marketing efforts. Rate your
company with our survey and target problem areas by understanding challenges, issues and
strategies.
Introduction
Starting a business is like jumping out of an aeroplane without a parachute. Todays business is so
complex one. Each business man has to analysis 360 degree environment to start and run the business in
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successful way. Business man must know not only national business event and also international events
and assess their significance in wider national, regional, or worldwide contexts. It is possible for
managers to know everything about national cultures and international trends, international business
challenges.
Predictable changes:
Competitive change, market change, occupational specialization; increasing levels of
affluence and income; changes in gender roles, attitudes towards authority and sexual norms; broader
political participation, technology change, social &cultural change, environmental change ,time to time
customer needs and wants also changed. Every business man observes the changes then they can do
analysis in an effective manner.
Challenges for Raising Capital
After developing business idea, the next challenge we are going to face when starting a
business from scratch is that of raising capital. As a business man, we are the only one that knows
business our idea to the core. You are the only one that knows the story of our future.
To overcome the challenge of raising capital, business man must develop the ability to sell idea and
vision to potential investors. When I say sell your ideas, I mean improving your communication skill
and your manner of presentation. In the game of raising capital, you must have a good story to tell;
backed by a strong business plan and good persuasion skills. We must know how to pitch angel investors
and venture capitalists alike.
Challenges to maintain surplus cash
A healthy profit may look nice on our financial statements, but if capital expenditures or
receivable collections are draining our cash, you wont be able to stay in business for long. Too often
executives and small business owners fail to focus enough on cash flow generation. In order to head off
this problem, businesses must either be adequately capitalized and must shore up cash reserves to meet
all obligations as they are needed and to handle downturns and emergencies that may arise
Challenges for finding potential employees
Business owners know how difficult it is to find a hardworking, trustworthy employee. Most
employees want to work less and get paid more. Finding a good employee who will be passionate about
delivering his or her services is quite difficult. Finding good employees is a minor task compared to the
business challenge of forging your hired employees into a team. You may have great employees but if
they cant act as a team, they are worthless and will yield nothing but stagnation. A football team may
have great skilful players but if they fail to play as a team, their possessed skill is useless.
Strategies to retain customers
The next challenge is finding good customers to sell our products as well as retain them. Note
the keyword good customers. In the process of building a business, we will come to find out that there
are good customers as well as bad customers. We must be on guard for bad customers. Good customers
are really hard to find. A good customer will be loyal to our company and will be willing to forgive you
if you make a mistake and apologize. A good customer will try to do the right thing that will benefit both
himself and your company mutually. Bad customers will always look for loopholes in the companys
policy to exploit and make a few gains. Bad customers will always try to exploit the companys goodwill
and look for ways to rip off the company. Bad customers are responsible for bad debts. Good customers
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build our business and bad customers will always try to liquidate our business. Just as you fire
employees, we must also be prepared to fire bad customers without hesitation.
Face competitive situation
Competition is the next challenge. Business man will face when starting a business. Most
individuals see competition as a plague but I see competition as a good challenge. I see competition as a
benchmark for creativity, the main engine that stimulates innovation and production of quality products
at great prices. Without competition, there will be no innovation and without innovation, the world will
be stagnant. According to me If you dont have a competitive advantage, dont compete. I see
competition as a welcomed challenge and I want you to do the same. Competition keeps us on our toes
and drives us to constantly improve our products and services. But we must be warned. Competition can
make our business lose its relevance in the eye of our customers so we must always be on guard.
Unexpected challenges
These business challenges, if not handled properly can ruin our plan to build a successful
business. Another challenge we must expect is an unforeseen increase in business expenses. If not
handled properly, it might result in constant negative cash flow and eventually; business failure.
Exit strategy
Business men have to face the challenge of determining your exit strategy. We have to plan
our exit strategy before we even start the business. Most entrepreneurs run their business without any
plans to exit and even if they have an exit strategy, they find it difficult to implement it.

Strategies to spot out the competitors

.
Business man must identify the competitor; spot out the competitors strengths and
weaknesses, and plan our strategy based on the information gathered. Concentrate all our attacking effort
on our competitors weaknesses while avoiding and defending against the strengths.
Marketing strategies
The business marketing strategies is to build a brand for our business. We may say we dont
have the huge marketing budget of the big corporations but we can build a brand in our own little way.
By emphasizing on quality, striving to fulfil our brand promise and working on our overall
brand image; we can build a strong brand image for our business. Most of the popular brands in the
world today were smaller brands of yesterday. If we consistently invest in building a brand for our
business; well stay ahead of competition.
Conclusion
A major challenge for all companies are identifying, assessing, and mitigating risks,
including human and financial capital, in addition to the macro economy. We believe, to do well into the
future, companies must resolve that problem solving is the key to business, then develop a robust
problem-solving capability at all levels. Finally each and every business man has to face all the
challenges in business and use strategies to run the business in profitable way
REFERENCE:
Francis cherunalim Business Environment
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Prasad. K Strategic Human Resource Management, Text & Cases, Macmillan, 2008
Philip Kotler Marketing Management

FISCAL DEFICIT AND ITS FINANCING IN INDIA

Mrs. M. Thangeswari, Associate Professor, Nadar Saraswathi College of Arts & Science, Theni.
Mrs. B.Vijayasamundeeswari, Lecturer, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT: Every year, the Government puts out a plan for its income and expenditure for the
coming year. A budget is said to have a fiscal deficit when the Government's expenditure exceeds its
income. When this happens, the Government needs additional funds. There are two ways for the
Government to arrange these additional funds. The Government can borrow either from the citizens
themselves or from other countries or organizations like the World Bank or the IMF. The Government
borrowing money to spend on programmers that lead to increased economic productivity or is it
spending on unproductive programs. Government directly giving money (or amenities) to sections of
people, without creating conditions for them to be more economically productive is dangerous.
KEYWORDS: Deficit, Receipts, Expenditure, Components.
INTRODUCTION:
Fiscal deficit is the difference between the governments expenditures and its revenues
(excluding the money its borrowed). A countrys fiscal deficit is usually communicated as a percentage
of its gross domestic product (GDP).
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In 1980, the growing burden of non-development expenditure caused deterioration in the fiscal
situation of India. Later this resulted in a fiscal crisis at the beginning of 1991-1992. Fiscal deficit is
expressed as a percent of GDP which indicates capacity of a country to borrow in relation to what it
produces. High % to GDP means government is borrowing beyond its capacity in relation to what its
producing which is its income. Considering that the Indian economy is growing between 5 to 5.5 percent
in the financial year ended March 2013, fiscal deficit is definitely a challenge to the economy. According
to the World Bank, growth in India is projected to rise to 6.5 percent and 6.7 percent in FY2014 and
FY2015, respectively. And in April, Finance Minister, P Chidambaram has brought it down from 4.9
percent last year to 4.8 percent of the GDP in 2013-14.

OBJECTIVES FOR THE STUDY:

To know the causes and effects of Fiscal Deficit in Indian Economy.
To list the components of Deficit Financing.
To analyze the relationship between Gross Fiscal Deficit and its corresponding financing.
METHODOLOGY:
This study based on only secondary data from Reserve Bank of India Website and Publication.
The data collected from the year 1984-85 to 2013-14.
For analyzing the above collected data trend analysis and correlation techniques were used.
CAUSES FOR FISCAL DEFICIT:
Government spending, inflation and lower revenue are some of the main factors to fiscal deficit.
The government is spending too much while it is earning less.
If the government lowered taxes or provided tax concessions to a particular group of people,
then it leading to an increase in fiscal deficit and cutting of custom duty and excise duty will lead
to declining revenues.
Slow economic growth or sluggish economic activities.
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 Fiscal deficit increased due to the bailouts in corporate sector and high subsidies. The money that
the government earns through non-tax revenue is not big and the money it earns from taxes is not
enough to meet the expenses for the public.
EFFECTS OF FISCAL DEFICIT:
A high fiscal deficit could pose an inflation risk, minimize the growth of the economy, doubt the
governments abilities; it could affect the countrys sovereign rating, which in turn will limit
foreign investors from looking at India as one of the investment hubs.
The government expenditure puts pressure on interest rates creating a negative impact on
savings. The Indian government can choose to import money into the country to balance the
fiscal deficit, but this move could appreciate the countrys currency and the government will
have to pay interest on its borrowings, eventually increasing the deficit and affect the countrys
economic growth. Therefore, delay in adjusting high fiscal deficit shows that the government
cannot control its finances properly.
The high fiscal deficit is that it leads to higher interest rates, disturbing the entire economy.
Hence, fiscal deficit leads to a slow progress of the nation.
COMPONENTS OF DEFICIT FINANCING
Tax revenue (net to centre) means tax revenue to government after adjusting for tax revenue to
states as around 30% of tax revenue is shared with states and 70% is retained by central
government.
Other receipt under capital receipts is basically disinvestments. Borrowings which are part of
capital receipts is excluded while calculating fiscal deficit as it is for funding the deficit.
High fiscal deficit may discourage foreign investment in the country.
The government has to borrow additional funds to solve fiscal deficit, which put extra burden on
the government for payment of interest. It further worsens the fiscal imbalance.
GOVERNMENT RECEIPTS
Government draws its receipts primarily through tax which is part of revenue receipts.
Revenue receipts are operating revenue which occurs in normal course of business. It is divided
into tax and non-tax revenue.
The contribution from direct tax has been increasing over indirect tax.
Corporate tax contributes to around 66% of direct tax while excise duty contributes around 42%
to indirect tax (as per FY13).
Over the years the service tax contribution towards indirect tax has been increasing from around
4% in 2000 to 23% 2013(BE) which depicts contribution of service sector in GDP has been
increasing.
Non Tax revenue is interest receipts, dividends or receipts through railways etc. Government
receives interest or dividends on back of its investments or loans its gives.
Capital receipts do not occur during normal course of business. Its when government sells assets
or borrows and is divided into debt and non-debt capital receipts.
Non debt is when government sells its assets or stakes or recovers loans which doesnt result into
repayment of receipt while debt capital receipt are government borrowing and is mainly incurred
to fund the fiscal deficit.
Though disinvestments shows contributing 72% towards capital receipts, to total receipts it
contributes only around 2%.
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 Also when government disinvests, it does get one time amount but loses out on regular income it

receives from the companies it has stake which contributes towards it non tax revenue receipt.
GOVERNMENT EXPENDITURE
India follows a plan based on the model of economy and therefore expenditure is divided into
revenue and capital plan and non-plan expenditure.
Plan expenditure is expense on schemes, projects which is budgeted by the government while
non-plan expenditure is towards maintenance and support activities.
Revenue expenditure is routine government expenditure and does not create any asset for the
government.
Revenue expenditure is basically consumption expenditure of government.
Revenue plan expenditure is expense towards various schemes and services provided by
government while non-plan expense includes interest payments, subsidies, grants to states etc.
Interest payment forms around 37% of revenue non plan expenditure while subsidies (major one
includes food, petroleum, and fertilizer) form around 22% of non-plan expense.
Capital expenditure creates asset for the government. It doesnt include operating expense and is
taken as expense for investment which will reap benefits in future.
Capital plan expense is basically expense on development related to infrastructure, machinery
etc., which develops the economy as whole. Non plan part is expense on defence, loans to states
etc., which will provide income and benefits to government in future.
Fiscal deficit on back of higher capital expenditure is not as bad as it creates assets for the
government which will in future increase its receipts. However fiscal deficit on back of revenue
expenditure is not good sign as it indicates government is using its receipts and borrowing to
finance its consumption rather than investing which in turn hurts economic growth and adds to
government debt.
GROWTH OF FISCAL DEFICIT OVER 30 YEARS FROM 1984 2013:
The amount of Government expenditures were increased by every year due to public expense for
maintenance and support activities, subsidies, etc.

In Every Year the growth of gross fiscal deficit was increased due to less export and more
spending of government.
GROSS FISCAL DEFICIT AND ITS FINANCING:
The Gross Fiscal Deficit is financed through external finance and internal finance such as market
borrowings, other borrowings, etc.
Correlations

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GROSSFISCAL
DEFICIT
TOTAL

GROSSFISCALDEFICIT
1

Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
.818**
Sig. (2-tailed)
.000
**. Correlation is significant at the 0.01 level (2-tailed).

TOTAL
.818**
.000
1

The above results shows that the gross fiscal deficit and the total financing are positively
correlated by r=0.818. It reveals that the deficit balance of payment is equally financed by the
borrowings, etc.
CONCLUSION
The fiscal imbalance still continues as the Government has failed to reduce its own expenditure.
The extravagant expenditure done by politicians and minister continues without any restriction. The
populist policy followed by the Government, failure to reduce fertilizer subsidy, and massive burden of
interest payment has still not take out the Indian economy from a situation of severe fiscal imbalances.
So the Government must take some immediate steps to check the borrowings and also encourage the
exporters to export more and reduce the quantity of imports by importers to improve the balance of
payment.
BIBILIOGRAPHY
http://en.wikipedia.org/wiki/Economy_of_India
http://www.tradingeconomics.com/india/government-budget
http://economictimes.indiatimes.com/topic/India-Fiscal-deficit
http://www.livemint.com/Politics/NRgNTPuyDHOBYjAV7fYsaI/Indias-external-debt-falls-to-4003-bnas-of-September.html
http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=State%20Finances%20:%20A%20Study
%20of%20Budgets
http://planningcommission.nic.in/data/datatable/index.php?data=datatab
A STUDY ON CUSTOMERS BUYING BEHAVIOUR OF SMART PHONES WITH SPECIAL
REFERENCE TO THENI DISTRICT
Ms. M.Anitha, LECTURER, NADAR SARASWATHI COLLEGE OF ARTS & SCIENCE

ABSTRACT: World is contracting with the growth of mobile phone technology. As the number of
users is increasing day by day, facilities are also increasing. Starting with simple regular handsets
which were used just for making phone calls, mobiles have changed our lives and have become part
of it. Now they are not used just for making calls but they have innumerable uses and can be used as
a Camera, Music player, Tablet PC, T.V, Web browser etc. In the past few years, mobile phones
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occupied a wide space in the life of every person. Nowadays even children possess mobile phones. The
consumers make mobile phones as a fashion object with special accessories and gadgets, which will
reflect their personality. This study gives a complete view about the customers perception towards
android mobiles (specific brand) than regular mobile phones. A sample size of 100 from Theni district
was selected to analyze.
INTRODUCTION
World is contracting with the growth of mobile phone technology. Starting with simple regular handsets
it has been developed to smart phone world. A Smartphone is a mobile phone that offers more advanced
computing ability and connectivity than a contemporary feature phone. There are a lot of many helpful
things that can come from the use of these phones. This invention has gone a long way in helping a
person keep their life on track and preventing any confusion. Then, there are those people that think that
these are just an expensive toy and not worthy. The truth is that these people need to take a moment to
stop and look at the many features that are associated with these phones and see all of the advancements
that have been made to make a person's life easier on a regular basis. The consumers make mobile
phones as a fashion object with special accessories and gadgets, which will reflect their personality. In
India, the major players like Nokia, Samsung, Panasonic, Sony Ericsson, Karbonn etc. introduce user
friendly models of smart phones which will satisfy the customers expectations. This study gives a
complete view about the customers perception towards android mobiles (specific company) than regular
mobile phones.
OBJECTIVES OF THE STUDY
To evaluate the impact of Socio Economic factors on customer satisfaction
To spot the primary reasons for customers preference towards android mobile phones.
To analyze the users level of satisfaction towards android mobile phones.
To study the various problems faced by the users of android mobile phones.
RESEARCH METHODOLOGY
This study is an empirical analysis encompassing complementary approaches in the analysis of
the satisfaction. This study is based on survey research method where random cluster sampling method
is adopted. This study has been complied with the help of primary data collected from 100 sample
respondents of Smart phone users (selected brand). The data was collected through a well structured
questionnaire with 5 point Likert scale for measuring the satisfaction level of customers in using smart
phones. For analyzing the data Chi square test, ranking analysis and Percentage analysis were used.
Demographic details of the respondents
The study first analyzes the Socio Economic factors and their relationship with the satisfaction level of
customer.
The data reveals that the majority of respondents have higher level of satisfaction in buying smart
phones.
The data reveals that the majority of male respondents (59.67%) and female respondents (56.26%) were
with high level of satisfaction in using smart phones
The data reveals that the overwhelming majority of respondents fall under the age categories of 26 35
and 18 25 among them 50 % and 56.66 % respondents were highly satisfied. This shows that the
majority users of smart phones were youngster.
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There is a mixed response to the above question. The data suggested that the overwhelming majority of
respondents falls under the category of SSLC among them 51.72% of respondents were highly satisfied.
But respondents who have the educational qualification of HSC where only 17 among them 64.71% of
respondents were highly satisfied. This is the highest percentage in case of high level of satisfaction.
Among the total respondents majority of them were professionals with satisfaction levels of 64.52% as
highly satisfied, 25.81% as moderately satisfied and 9.68% were less satisfied.
The data reveals that majority of the respondents fall under the income group of above 20,000. Among
them 68.29% were highly satisfied. 21.95% of them were moderately satisfied and only 9.76 % were
less satisfied with smart phones.
Factors Influencing Customers to Buy Smart Phones
S.No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

FeaturesTotal Score
Mean Score Rank
HD Display
710
7.10
IV
HDR Video Camera
515
5.15
VI
Design & Durability
600
6.00
V
Touch Screen
269
2.69
XIII
Processor & Battery
331
3.31
VIII
Price
325
3.25
X
Model
328
3.28
XI
USB / HDMI port
321
3.21
XII
Good OS
820
8.20
II
GPS
370
3.70
VII
Digital Media
330
3.30
IX
accessibility
12.
Apps
830
8.30
I
13.
Wi Fi / 3G
730
7.30
III
Total
6479
64.79
The data clearly reveals about ranks of different features of smart phones. It is seen that highest score is
for Apps (830) and it has I rank among all the features of smart phone. It implies that most customers
buy smart phones for various apps available in it. This plays a vital role in satisfying customers. Further,
II rank can be observed to Operating System available in smart phones with a score of 820 points and
mean as 8.2. It indicates that users satisfaction is influenced by Good Operating System. Wi Fi / 3G
features has III place among the all other features with an aggregate score of 730 points and a mean
score of 7.3. It reveals that user satisfaction is influenced by the Internet accessibility. The next feature
which has more satisfaction of the users is HD Display. The last feature which has gained user
satisfaction is Touch Screen. This may be due to availability of touch screen option in regular handset
too.
Problems faced by Smart Phones
S.No
1.
2.
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Features
Screen issues
Over heating

Total Score
325
328

Mean Score
3.25
3.28

3.
4.
5.

Battery Life
Phone & Text issues
Apps crashing

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331
330

The data clearly reveals that major problem encountered by smart phone users is battery life. Hence the
battery life feature should be enhanced by the companies for customer satisfaction. The next problem
faced by the users is the screen issues of smart phones with an aggregate score of 325 and mean score of
3.25. Users are also less satisfied with the models available in smart phones, it may be due to
unawareness of usage of particular models of smart phones available in the market. Hence, the
companies should concentrate on educating the users about the availability of various models of smart
phones. An attempt should be made to improve the memory size also so as to satisfy the customers.
Some of the users have also faced problem in phone and text issues. Steps should be taken to eliminate
these technical problems.
CONCLUSION
The study revealed some of the problems regularly encountered by the users such as low battery life,
Screen issues, overheating, Apps crashing and phone & text issues. So as to have a sustained users
satisfaction these features may be enhanced.

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3.21
3.31
3.30

CHALLENGES TO WITHSTAND IN BUSINESS MARKET

Ms. A.Jenifer, Lecturer, Nadar Saraswathi College of Arts And Science, Theni.

Abstract: Growing businesses face a range of challenges. As a business grows, different problems and
opportunities demand different solutions - what worked a year ago might now be not the best approach.
Executives across a broad-spectrum of industries face and have to manage common performance and
performance related issues. This paper highlights the particular risks and mistakes that most commonly affect
growing businesses and outlines what you can do about them.
Introduction:
Business isn't something you do as a one-off when you launch it. Business conditions change continually, so
your market research should be continuous as well. Otherwise you run the risk of making business decisions
based on out-of-date information, which can lead to business failure. Business Performance is an interwoven
tapestry of perceptions, competency, execution, social/political issues, relationships and demonstrable
metrics. Rarely does an executive lose his or her job for simply failing to produce some tangible metric. It
does happen but usually that is not the whole story or even the main theme of the story. The problems are
often identified in difficult to understand terms that lack specificity but more often than not they boil down to
one or more of the following issues.
1. Getting Overwhelmed By Growth
Growth is change. Growth requires more processes, controls and people. Too much growth too quickly can
create financial, quality, and reputational risks that, if not properly managed, can lead to the demise of the
business. Keeping tabs on all of these factors can easily overwhelm business owners.
2. Knowing When to Say No
Most successful start-ups have a plethora of opportunities. The challenge is choosing the right ones. Good
opportunities are those that will enhance your companys strengths and result in a compelling customer value
proposition. Opportunities that dont fall into that category should be met with a no, thank you.
3. Learning To Efficitively Delegate
For a business to grow, the entrepreneur must grow. When growth begins, youll quickly find that you can do
only so much and that you need help from others to properly serve customers. You must evolve from being a
doer to a manager of employees and then eventually to a manager of managers (a leader).
4. Transitioning From Owner To Leader
When you get to the point where youre delegating tasks and relying on your employees to drive your
business, you must also transition from thinking of yourself as just a business owner and start developing as a
leader and coach. Evolving toward becoming a leader and coach is challenging, because both roles require
emotional intelligence, people engagement and the ability to relate to individuals in a way that they find
meaningful.
5. Smart Hiring
Hiring mistakes are costly, time consuming and create quality and financial control risks for small businesses.
When confronted with impending growth, entrepreneurs often panic and hire employees too quickly, making
snap decisions based on little data.
In my research, bad hiring practices often continued when entrepreneurs tried to hire managers who needed
to have functional or technical experience. In many cases, the companies had to make multiple costly hires
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for the same position before finding someone with the right competencies who also fit the company culture.
Many of these entrepreneurs frequently stated that they should have hired more slowly and fired more
quickly.
6. Cash Flow Managing
Many times entrepreneurs get overly engaged in the joy of growth and lose sight of the need to manage cash
on a daily basis. Cash flow management during growth periods is critical, because in many cases growth
requires investments in people, technology, supplies, etc., ahead of the receipt of cash from customers. Thus,
there is often a mismatch between expenditures and receipts.
This might sound simple, but it can be a major issue if not handled properly. Entrepreneurs have to
understand that they may not be able to afford all the available growth. The amount of cash available for
investment can limit growth, especially in todays economy when many small businesses cant get loans or
credit lines.
7. Spending Too Much of Time Putting Out Fires
A high-growth environment is hectic, sometimes chaotic, with multiple mistakes needing to be corrected
almost every day. Entrepreneurs can easily get sucked into playing the role of firefighter, spending their
days putting out fires. The problem with that is that growth requires the entrepreneur to plan for more growth,
to put in place new and better processes, and to be constantly upgrading processes and resetting priorities.
8. Creating a High Performance Crew
Entrepreneurs often struggle with creating a high-performance family or team environment. The challenge,
of course, arises when someone in the family just isnt meeting expectations and has to be terminated
because they couldnt grow their skills as the business grew. Here entrepreneurs face an uphill battle in
balancing loyalty and changing performance needs.
Let someone go who everyone else at the company loves and youve created morale and emotional issues.
9. Welcoming the Upgrading Will Never Ends
The people, processes, structure, and controls needed to manage a business with 1 million of revenue
generally do not work for a business with 10 million of revenue.
Entrepreneurs often learn the hard way that growth means continual change. And as you grow, the
solutions that worked at one level will most likely not work at the next. Inflection points for the companies
Successful entrepreneurs and their employees are open to learning and adapting in an incremental, iterative,
and experimental fashion. The hard truth is that growing businesses generally do not experience much
sameness or predictability until they become quite large, but learn to manage these changes properly, and you
can keep the ship pointed in the right direction.
10. Self-Assessment
Certain assessment surveys can facilitate a leaders understanding of their present management style and
abilities. Drawing upon these assessment results will allow a leader to develop their skills further.
Conclusion:
This paper brings you the risks and mistakes that most commonly affect growing businesses and outlines
what you can do about them. Take all the valid points in concern to achieve a good position in this modern
business era.
References:

Competing for the Future (1996), by Gary Hamel and C.K. Prahalad.
Leading Change (1996), by John P. Kotter.
Who Moved My Cheese? (1998), by Spencer Johnson.
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www.smartbusiness.ae

CHALLENGES FACED BY THE INDIAN ENTREPRENEURS AND GROWTH OF

ENTREPRENEURSHIP
Ms. S.Vijayalakshmi, Lecturer, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT: This paper provides detailed information about the challenges faced by the Indian
entrepreneurs and growth of entrepreneurship. It examines the development and challenges of the
entrepreneurship and entrepreneurs. . In India the entrepreneurs make the barriers as the key
attractive forces for enter into newer markets, which in turn will help the Indian entrepreneurs to
grow faster. The paper includes entrepreneurial spirit, Indian entrepreneurship, business cycle, risk to
Indian business growth and the major challenges faced by entrepreneurs. This paper concludes with
the market conditions have been very encouraging to many young engineering graduates who strongly
believe that they have the technical knowledge and skills to attract new customers.
INTRODUCTION
The Challenge is a call to prove or justify something According to the entrepreneurs the biggest
challenge to an entrepreneur is the entrepreneur him/herself: Fear, self doubt, lack of focus, and self-sabotage
can bring down even the most brilliant entrepreneur with the best idea. Nearly 60% Indians possess strong
entrepreneurial qualities optimism, business-mindedness, persistence. Yet most Indians do not want to start
their own business. Why? A look around may be sufficient to see ample reasons that prove to be a hindrance
to the entrepreneurial spirit:

Bureaucratic potholes that ensure that a good number of early days are spent running from one table
to another, from one department to another to get the necessary permissions in place.
Poor infrastructure facilities prove to be a huge hurdle to the distribution network. Scarcity of
electricity, a good number of non-motor able roads, the problems are many.
Gallups recent study found that only about 22% of aspiring entrepreneurs have the adequate access to
training.
Lack of right type of funding options is a major problem as many VCs are ready to invest in specific
sectors only and may not be open to funding new ventures in diverse non-traditional sectors (eg: nonIT).
Personal risk such as uncertainty of success, financial risk such as loss of savings.
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Entrepreneurship in India comes with its huge share of cultural bottlenecks. There is a never-ending
family pressure for job security through traditional means.
Educational system in India is held within rigid boundaries one that prepares students to take up
traditional employment rather than instilling the confidence to do something that one likes.
Inability to find trusted business partners
Mechanisms for protection of entrepreneurs.

INDIAN ENTREPRENEURSHIP:
Before 1991, Indian business success was a function of ambition, licenses, government contacts, and
an understanding of the bureaucratic system. Decisions were based on connections, rather than the market or
competition. Business goals reflected a continuation of the Swadeshi movement, which promoted import
substitution to attain economic freedom from the West. Pre-1991 policies were inward looking and geared
towards the attainment of self-reliance. During this era, entrepreneurship was subdued, capital was limited
and India had very few success stories.
In 1991, the Indian government liberalized the economy, thus changing the competitive landscape. Family
businesses, which dominated Indian markets, now faced competition from multinationals that had superior
technology, financial strength and deeper managerial resources. Thus, Indian businesses had to change their
focus and re-orient their outlook outward. A few existing Indian business families adapted to the new
economic policy while others struggled. Importantly, a new breed of business was born, one that focused on
ICT (Information and Communication Technology) and created wealth for owners and employees.
For the old business houses, success had come from the close-knit joint family structure that fosters
family values, teamwork, tenacity and continuity. Under this structure, generations lived and worked together
under one roof, reaffirming the Weberian values and trust that have built successful businesses. Wealth from
the businesses supported the joint family by providing a social safety net for members.
Liberalization, however, changed the very nature of the joint family. If large Indian businesses were to
succeed, the family would have to re-orient itself to compete in a global, competitive environment.
Post liberalization, IT businesses succeeded because they were customer focused and professionally
managed. The old, family-managed businesses, which formed the backbone of the economy, needed to
evolve and become more institutional, if they were to extend their life cycle. Below, using the Indian
mythology trinity of creation, preservation and destruction
Obstacles for Indian Business Growth
The entrepreneurs in India will develop and grow if the economy continues to grow on a sustainable
basis. The risk to the Indias growth is Terrorism, Corruption (Politically) etc. As investment increases
foreign businesses can invest in India.
1. Terrorism:
Terrorism is attributable to religions and naxals. The terrorism creates uncertainty and delays the
investment in any countries. So its necessary to comprehend a country culture, constitution and the response
to terrorism. Culture is there in myths, television, religion and history. Indian culture is tolerable and has
many differences. To distinguish between the Europe and India Indian has many divergent countries.
Whereas Europe has independent countries. The skill in entrepreneurship and flexible to grow in spite of all
the challenges.
2. Political risks:
India is a country with the lot of complexities and the political parties that are in India is abundant.
The parties have involved addressing the needs and they gave the lower groups a way to the national level.
The future will characterize with the combining of the politics into business.
3. Economic Reforms
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Growth needs to continue and India needs another dose of reform, aimed at markets for inputs, from
electricity to labour and land. If we are to continue to maintain the growth trajectory, the market for inputs
needs to be liberalized. These are difficult political decisions and coalition politics will make the process
slower and difficult. It will be easier for the government to address and repair old infrastructure through
public private partnerships. India is going through a structural not a cyclical change; hence, the process is
slow and driven by the political process. We need investments in power, roads, ports and bridges.
CHALLENGES FACED BY ENTREPRENEURS
Globalization
Few year before the entrepreneurs in India had to fight the national competition. The thing has
changed right now that is it became more complex than it was before. Almost all countries have the
economies and the globe became a giant market. Few years back the Indian entrepreneurs had to fight
regional and national competition. However, today, the scenario has changed and become much more
complex than what it was earlier. Now, almost all countries have opened up their economies, and the world
(globe) has become one giant global market. To lead themselves in this globalization the entrepreneurs have
to prepare themselves with new innovative business ideas and skills .
Liberalization
It is the process of giving freedom to do. India started the process of liberalization in case of business,
trade for the sake of growth of the organization and economical development of the Indian economy. As an
initial thing they granted liberty to have private Entrepreneurs to start any business of their choice and in
their domain. Liberalization brought many entrepreneurs and new business arising. Now the challenge is here
is how to take the advantage of liberalization into the business in India. However, Indian entrepreneurs can
beat the enormous competition by focusing more on the selling high-quality yet unique good and services at a
lowest price.
Adapting to modern technology
Science and Technology have developed in a vast arena. It not only improves the quality but also
producing good and best services with the reduction in the cost of production. The reduction in cost increased
the process of production. High-Quality commodities, Low cost of productions, faster production and make
highly competitive environment. The Indian Entrepreneurs are in need or mandatorily in need for to keep
pace with the emerging technologies as much as possible and to adapt to the new technology. Old machines
are replaced. This is the challenge for the Indian Entrepreneurs to train the employee very well to make the
handle the modern technology in an efficient manner.
Workforce in India
The workforce has a remarkable change. The stat indicates the male domination is going down as
days passes by. A new era of highly qualified educated Indian women have entered to work in any companies
besides the culture and barriers faced in the society. Women in India are now as professional managers,
efficient employees, more hardworking than men today in the companies. This presence of women in the
society has brought new challenges in the Indian entrepreneurs. Now the challenge is that the entrepreneurs
should provide the environment in the women can work.
"India will likely provide the largest increase to the global labour force over the next few decades.
Our projections suggest that its labour force may rise by 110 million this decade," said the study, India's
Rising Labour Force. The Indian entrepreneur has to face this challenge by training and developing these
young minds and motivating them continuously.
Marketing is a big challenge
The Five big Marketing Challenge in todays scenario are spending money on advertising that doesnt get a
good return, Partnerships that take time and resources, but dont pay off, Keeping customers engaged,
Educating customers on all that we offer, Developing employees who are passionate about our product or
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services. Advertisement is the one major key factor for the marketing which is used by the entrepreneurs
through media such as television, internet, radio, newspapers etc. The entrepreneur has to select the efficient
and experienced marketing team. She/he must motivate the team in order to get a greater improvement in the
business. They must give training which will develop the team into a better one. Motivating is to give them
high salaries, attractive incentive and good commissions. Indian entrepreneur must try his level best to satisfy
needs and expectations of his customers.
Managing the finance of business
Finance is the life blood of a business. It can either make a business or break it. Under-capitalization
and Over- capitalization are very harmful to the business. Managing the finance of his business is a big
challenge for an Indian Entrepreneur. He must manage both Fixed and Working capital properly. He must
borrow money from the right source. He must manage his Cash Flow properly. He must invest his excess
funds correctly. He must create sufficient Reserves and surpluses. He must provide enough depreciation for
his fixed assets, so that he can replace them when they become old and outdated. He must provide for repairs
and maintenance of machines. He must also take steps to provide for but avoid bad debts.
Challenges in the field of production
The Indian entrepreneurs have to face many challenges in the field of production. They must replace
all outdated plants and machineries with new modern ones. They must provide continuous training to their
production staff. They must use good quality raw- materials to produce high quality finished goods. They
must have a good Inventory Control system. This will avoid Over-stocking and Under- stocking. Overstocking will block the working capital, and Under-stocking will block the production process. Indian
entrepreneurs should use a part of their profits for Research and Development(R & D). They must pay special
attention to Quality Control (QC). Now- a-days most companies also use Total Quality Management (TQM)
to ensure their finished goods are of good quality.
Balancing economic and social Objectives
This is also a big challenge before Indian entrepreneurs. They must balance between earning high
profit and doing social-welfare activities. They must use modern machines without causing unemployment
and harm to the environment. They must earn a profit without reducing quality of their goods and services.
They must earn a profit without charging high prices for their products. They must not cause any type of
pollution in the society. They must accept their communal responsibilities and donate a small part of their
profit (money) for social causes. They must pay all their taxes and duties.
Social Challenges
Family challenges are always at the top because that is what matter the most but at times social
challenges also are very important. It is happening in terms where you will have lot of challenges to be faced
because the improvement in the business will be a quite delay than being an employee but the future growth
is very large which patients is very important. On looking the people when the entrepreneurs lose the
confidence inside him/her then it will be a failure which should be taken care of.
Technological Challenges
Indian education system lags too much from the Job industry as a whole but then it lags even more
when it comes to online entrepreneurship. This does makes entrepreneurs life that much more difficult on
technology front.
Financial Challenges
Financial challenges are a lot different in India especially for online entrepreneurs. When you are
starting out as an entrepreneur you dont opt for venture funding but try to go with funding from small to
medium business people. Many such non technical business people dont understand the online business
models as a whole and so getting an initial business funding from them becomes challenging.
Teaming Challenges
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Indians are more inclined towards job in big companies than towards a partnership or even working in
small start-ups. You can have the hardest time finding the right team of people to get yourself moving. this
problem to find the right balance of people to work is very difficult.
Motivation and dedication
Indian women/men come across several barriers before coming for a working environment it is not
only India but all the continents, countries, states, cities. The thing that is more needed for the growth of the
organization is that the employees should be treated in a good manner that they work with dedication. The
thing to make them do the work with a piece of dedication it is done by appropriate actions taken by the
entrepreneur. The entrepreneur should make a more number of activities which motivates them and which
makes them self dedicate them self to get into the business.
CONCLUSION
Today's promising market conditions have been very encouraging to many young engineering
graduates who strongly believe that they have the technical knowledge and skills to attract new customers.
These young Indian entrepreneurs are not the typical and conventional business entrepreneur. They are the
children of many business professionals. As elite graduates of IITs, National Institutes of Technology, Indian
Institute of Science, and the IIMs, this new young breed of worthy entrepreneurs have targeted their efforts
on innovative ways to technologically address the genuine needs of millions of people. There is no denying
the fact that most of the developed economies are very much relying on their new strategies formulated by
the entrepreneurs.
BIBILIOGRAPHY:
www.iveybusinessjournal.com
www.publishingindia.com
www.quora.com

FISCAL DEFICIT - REASONS AND RECOVERING STEPS

Ms. P. Bharathi, Assistant Professor, Nadar Saraswathi College of Arts & Science, Theni
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Ms. R. Lavanya, Research Scholar, Nadar Saraswathi College of Arts & Science, Theni

Abstract: This paper examines the long term profile of fiscal deficit and debt relative to GDP in India,
with a view to analysing debt-deficit sustainability issues along with the considerations relevant for
determining suitable medium and short-term fiscal policy stance. The presence of high inflation raises
questions about the usefulness of the conventional measure of the fiscal deficit as a necessary fiscal
adjustment. The impact of debt and fiscal deficit on growth and interest rates that arises from their effect
on saving and investment are critical in any examination of sustainability of debt and deficit. It is argued
that large structural primary deficits and interest payments relative to GDP had an adverse effect on
growth in recent years. The Fiscal Responsibility and Budget management Act (FRBMA) of the central
government has certain positive features. While the fiscal deficit target has been defined, it should be
considered in conjunction with a target debt-GDP ratio. Further, the central FRBMA should be
supplemented by state level fiscal responsibility legislations and an effective hard budget constraint on sub
national borrowing. The basic aim of the study is to examine both the short run and long run relationship
between fiscal deficit and economic growth in India. The study suggests the reduction of subsidies and
invests this money in health, education, infrastructure sectors such as power and roads etc., so that it will
enhance the productivity of both human capital and physical capital, which will go a long way in
increasing the per capita income of the people.
Key word: GDP, FRBMA
INTRODUCTION
DEFICIT
A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets.
A deficit is the opposite of a surplus.
FISCAL DEFICIT
The difference between total revenue and total expenditure of the government is termed as fiscal
deficit. It is an indication of the total borrowings needed by the government. While calculating the total
revenue, borrowings are not included.
When a government's total expenditures exceed the revenue that it generates (excluding money from
borrowings). Deficit differs from debt, which is an accumulation of yearly deficits. Trade deficits (also called
current account deficits) occur when a country imports more than it exports. The difference between exports
and imports is called net exports.
Generally fiscal deficit takes place due to either revenue deficit or a major hike in capital expenditure.
Capital expenditure is incurred to create long-term assets such as factories, buildings and other development.
A deficit is usually financed through borrowing from either the central bank of the country or raising money
from capital markets by issuing different instruments like treasury bills and bonds.
THE PRIMARY COMPONENT OF FISCAL DEFICIT:
The primary component of fiscal deficit includes revenue deficit and capital expenditure.
Revenue deficit:
It is an economic phenomenon, where the net amount received fails to meet the predicted net amount
to be received.
Capital expenditure:
It is the fund used by an establishment to produce physical assets like property, equipments or
industrial buildings. Capital expenditure is made by the establishment to consistently maintain the
operational activities.
FORMAT OF FISCAL DEFICIT:
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TOTAL EXPENDITURE:
Revenue expenditure
capital expenditure
Less:
TOTAL RECEIPTS:
Revenue receipts
Recovering of loans
Other capital receipts
FISCAL DEFICIT

**
**

**

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**

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REASONS OF FISCAL DEFICIT

Some of the causes of fiscal deficit are Increase in Subsidies, Huge Borrowings, Weak revenue, Tax
Evasion, Payment of Interest, defence expenditure, poor performance of public sector.
Increase in subsidies:
The government has been providing subsidies on a number of items such as fertilizers, exports, food
items, etc. This has resulted in a fiscal imbalance. The major subsidies provided by the Central Government
of India have increased over the years resulting in fiscal imbalance. Subsidies directly increase the fiscal
deficit. Therefore, the subsidies provided by the government in various consumables like oil, gas, food etc.
directly increases the fiscal deficit.
Payment of Interest:
One of the main causes of fiscal deficit is the interest paid by the government on both the domestic
and foreign loans. According to Trading Economics Indian governments debt to GDP ratio has been
forecasted to 67.53% for the calendar year 2013. This has resulted in increased interest burden on the
government.
Defence Expenditure:
The defence expenditure is increasing over the years. The government has limited scope to reduce
defence budget due to security problems across the Indian borders.
Poor Performance of Public Sector:
The poor performance of public sector has also resulted in fiscal imbalance. The poor performance of
public sector is due to various reasons such as political interference, inefficiency and corruption of
management, low labour efficiency, lack of professionalism, surplus staff, etc.
Excessive Government borrowings:
The internal and external debt of the government has increased considerably during the past few
decades. Due to the debts the government has to incur high expenditure in form of interest payments.
Tax Evasion: Indian tax system is made up of complex procedures with numerous exemptions. A
corruption is rampant at all levels, which leads to the fiscal imbalance.
Weak Revenue Mobilization:
While increase in government expenditure has been the major cause of fiscal imbalance, inadequate
rise in revenue receipts also contributed to fiscal imbalance. The revenue receipts of the centre, consisting of
tax revenue, net of state's share and non-tax revenue has increased at slower rate than that of growth in
expenditure.
Huge Borrowings: The gap between expenditure and revenue is financed through loans, both internal and
external. The borrowings have been spent on unproductive purposes as well. The huge borrowings resulted in
large
interest
payments.

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RECOVERING STEPS TO FISCAL DEFICIT:

Measures To Overcome Fiscal Deficit:
The fiscal imbalance can be corrected by adopting following two methods:1. Reducing Government Expenditure.
2. Raising proper financial resources (funds) for productive purposes.
A. Reduce Government Expenditure:
Suggested ways by which government's expenditure can be reduced are:1. Reduction in Interest Burden:
Over the years, there has been considerable increase in Government borrowings. As a result, the
interest payment of the Government has increased considerably. The interest payment has been the single
major component of revenue expenditure of both the state and central government. Therefore, there is a need
to reduce government borrowings so as to reduce interest burden, which in turn would reduce Government
expenditure.
2. Reducing Subsidies
The government of India has been providing subsidies on a number of items such as food, fertilizers,
education, interest to priority section, and so on. Because of the massive amounts of subsidies, the
government expenditure has increased over the years. Therefore there is need to reduce government
subsidies.
3. Reduction in Government Overheads
The public sectors and government departments are subject to high overheads. There is often
overstaffing due to poor manpower planning. Also, there are huge overheads in respect of maintenance of
machines, consumption of energy, and so on. Some of the overheads can be easily reduced.
B. Raise Government Funds
Suggested ways by which government's funds can be raised are:1. Collection of user charges
The government should take adequate measures to collect user charges from the consumer in respect
of public utilities like water supply, electricity, irrigation, transport, etc. The user charges are subsidized in
case of certain services.

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2. Improvement in Performance of PSUs

Due to poor performance of PSUs, the government loses a good amount of revenue by way of
dividends. Therefore, the government should make every effort to improve efficiency and performance of
public sector units (PSUs), which in turn would enable the government to obtain more funds for productive
expenditure.
3. Proper Mobilization of Tax Resources
In India there is a good deal of tax evasion both of direct and indirect taxes.
The tax evasion is due to the following reasons:1. High tax rates,
2. Too many formalities and documentation work, Therefore, the government should make proper
efforts to simplify the tax procedures, and at the same time take appropriate measures to reduce tax
evasion.
Government Takes Several Measures to Contain Fiscal Deficit
In September, the Cabinet Committee on Economic Affairs (CCEA) allowed 51 per cent FDI in
multi-brand retail and 49 per cent investment by foreign airlines in Indian carriers. Besides, last month the
government approved a proposal to hike foreign investment ceiling in the insurance sector to 49 per cent
from the present 26 per cent. Also, it allowed FDI in pension funds and said the limit could go up 49 per cent
in line with the cap in insurance sector.
Government has imposed economy measures like rationalization of expenditure and optimization of
available resources with a view to improve macroeconomic environment. These include a ban on holding of
meetings and conferences at five star hotels, restrictions on foreign travel and ban on creation of Plan and
Non-Plan posts. Ministries/Departments have been advised that posts that have remained vacant for more
than a year shall not be revived except under very rare and unavoidable circumstances and after seeking
clearance of the Department of Expenditure. Apart from the measures indicated above, the Government has
taken the following steps to contain fiscal deficit:
i) Government has reverted back to the path of fiscal consolidation with gradual exit from the expansionary
measures in calibrated manner.
ii) Government has also introduced Medium-term Expenditure Framework Expenditure Statement, setting
forth a three-year rolling target for expenditure indicators with a view to undertaking a de-novo exercise for
allocating resources for prioritized schemes and weeding out other that have outlived their utility. It would
also encourage efficiencies in expenditure management.
iii) Government has also decided to adopt the following plan of fiscal consolidation during the period of the
12th Plan i.e. from 2012-13 to 2016-17.
Year
Fiscal deficit (%)
2012-13
5.3
2013-14
4.8
2014-15
4.2
2015-16
3.6
2016-17
3.0
This was stated by the Minister of State for Finance, Shri Namo Narain Meena in a written reply to a
question in the Lok Sabah today.
New Fiscal Policy of India:
In view of the economic liberalization in the recent years, certain themes have been emphasized in the
New Fiscal Policy of India. They are:1. Simplification of tax structure and laws.
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2. Reasonable direct taxes and better administration.

3. Stable tax policy environment.
4. Weightage to resource allocation and equity consequences of taxation.
5. More reliance on fiscal and financial instrument in managing the economy.
CONCLUSION
The fiscal imbalances however still continue as the Government has failed to reduce its own
expenditure. The extravagant expenditure done by politicians and minister continues without any restriction.
The populist policy followed by the Government, failure to reduce fertilizer subsidy, and massive burden of
interest payment has still not take out the Indian economy from a situation of severe fiscal imbalances. The
Fiscal measures adopted by the Government of India would reduce the inflation, reduce the deficit in balance
of payments and promote growth and generate employment. The effects of the new fiscal policy are likely to
be favorable to the Indian economy.

MAJOR LEADERSHIP CHALLENGES IN THE 21st CENTURY

Mrs. T.Krishnaveni, Assistant Professor, Nadar Saraswathi College of Arts & Science, Theni.
Ms. R.Rathna, Research Scholar, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT: The concept of leadership has undergone a sea from the concept of born leader to
situation leader and to effective leader. Views, assumption and theories of leadership have changed
significantly in recent year. Business and industry have set managers more as leaders, to achieve the
challenges. The quality of leadership provided by the managers determines the degree of success of
business. Some people are born leaders and need little training or development. But many managers are
not born with qualitative leadership skills. Such managers need training and development to acquire and
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develop leadership skills. However, born leaders can be more efficient with training. For example,
Mahatma Gandhi, Jamshedji Tata and Dhirubhai Ambani belong to the born leaders category, whereas
Vikram Singh of Hindustan Aluminium and Pardhasaradhi of Hindustan Lever belong to the made
leaders category.
SOME SPECIAL LEADERSHIP PROGRMME NAMES
Women leadership
Stepping into leadership
Leadership skills for top management
Personal leadership for future business leaders
On the job training.
INTRODUCTION
A leader is a person who guides and directs others, called followers. He gives focus to the efforts of
his followers. The manager, as a leader, influences his subordinates to indulge in such activities as are vital
for the accomplishment of the enterprise goal.
The concept of leadership has undergone a sea from the concept of born leader to situation leader
and to effective leader. Views, assumption and theories of leadership have changed significantly in recent
year. Business and industry have set managers more as leaders, to achieve the challenges. The quality of
leadership provided by the managers determines the degree of success of business. Some people are born
leaders and need little training or development. But many managers are not born with qualitative leadership
skills. Such managers need training and development to acquire and develop leadership skills. However, born
leaders can be more efficient with training.
For example, Mahatma Gandhi, Jamshedji Tata and Dhirubhai Ambani belong to the born
leaders category, whereas Vikram Singh of Hindustan Aluminium and Pardhasaradhi of Hindustan Lever
belong to the made leaders category.
DEFINITIONS
Leadership is the ability of a manager to induce subordinates to work with confidence and zeal
Koontz and ODonnell.
Leadership is the activity of influencing people to strive willingly for mutual objectives George
R.Terry
LEADER VS MANAGER
Leadership and management are two distinctive and complementary systems of action. Each has its
own function and characteristic activities. Both are necessary for success in an increasingly complex and
volatile business environmentstrong leadership with weak management is no better, and is sometimes
actually worse, than the reverse. The real challenge is to combine strong leadership and strong management
and use each to balance the other. John Kotter
Often a distinction is made between leadership and management, although sometimes, it would seem,
for the sake of it. Individuals cannot simply be classified as either one or the other both leadership and
management skills are needed for success. At times leaders will need to manage tasks and projects, and
managers will need to influence and inspire people. Managers are not confined to management and leaders
are not restricted to leadership - the critical issue is about getting the right balance for the job you do.
Management is generally seen to involve overseeing day-to-day operations, accomplishing goals and
achieving tasks, while leadership spans a wider remit that includes influencing and inspiring others,
generating ideas and defining a strategy and vision. In the table below you will see a direct comparison
between leadership and management activities. An individual can be a great leader, a great manager, or both,
but each area requires the mastery of slightly different skills and competencies.
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Management Produces Order &

Consistency

Leadership Produces Change &

Movement

Planning and budgeting

Establishing agendas
Setting timetables
Allocating Resources

Establishing direction
Creating a vision
Clarifying the big picture
Setting strategies

Organizing and staffing

Provide structure
Making job placements
Establishing rules and procedures

Aligning people
Communicating goals
Seeking commitment
Building teams and coalitions

Controlling and Problem Solving

Developing incentives
Generating creative solutions
Taking corrective action

Motivating and Inspiring

Inspiring and energize
Empowering subordinates
Satisfying unmet needs

SOME TRAITS OR CHARACTERISTICS OF EFFECTIVE LEADERSHIP IDENTIFIED

The wrote by Vardallas include: a powerful business and people acumen; an embracing of diversity;
the ability to inspire (rather than motivate) people to achieve; a clear vision of seeing the possibilities and the
preferred future for their organization; the ability to build partnerships and alliances; being servant leaders to
their clients and a facilitator for change, and having a curiosity of the world.
LEADERSHIP QUALITIES
"Top heavy" leadership is generally considered ineffective. The ability to delegate downwards is
essential. A board of directors is not supposed to carry out the day-to-day work of a global corporation.
Instead, directors employ workers and appoint a chief executive officer to manage the workers. Appointments
serve other personal and political goals also. An effective leader may need to create or adapt a hierarchy.
To be a successful leader, a person is expected to possess the following qualities:
Self confidence
Foresight
Sense of Judgment
Communicating skills
Sound physical health
EFFECTIVE LEADERSHIP
"Good leaders manage the dream, embrace error, encourage reflective back talk, foster dissent, see the
long view, and create strategic alliances and partnerships," wrote Warren Bennis in his seminal 1990 work
"On Becoming a Leader." Effective leadership revolves around vision, direction and change. Many
authorities agree leaders are made not born, and most people have the capacity for leadership.
Effective leadership is one of the key factors of how the success of organizations will be measured in
the 21st century, according to John A. Vardallas, founder of business website TheAmericanBoomeR. In "The
Traits Shared by Effective Leadership," published in the Credit Union Journal (February, 2006), he states:
"With the events unfolding in the international arena, there is a good deal of uncertainty from a business and
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economic standpoint. One of the key areas of concern is the competency of our leaders. Our religious,
political, corporate business and even cultural social scions have come into question by us Americans of
late."
TASK ACHIEVEMENT
Leaders ability to continue to the task accomplishment depends on:
Planning in advance the process of task accomplishment.
Determining all kinds of resources necessary to accomplish the task and provide them.
Making the organizational structure as adaptable as possible to do the task efficiently.
LEADERS POWER
The leaders influence over followers depends on various factors like: The nature of the leader , The
nature of the followers , The leaders behaviour, Organizational situation, Followers behaviour, andLeaders
capacity to influence followers The important sources of power of the leader includes Reward power,
Coercive power, Legitimate power, Expert power, Referent power
SOME SPECIAL LEADERSHIP PROGRMME NAMES
Women leadership
Stepping into leadership
Leadership skills for top management
Personal leadership for future business leaders
On the job training
PERSONAL LEADERSHIP FOR FUTURE BUSINESS LEADERS
The Personal Leadership for Future Business Leaders Programme is designed to demystify leadership
and helps executive make this transition from top level managers to inspiring leaders. It helps distinguish
between leadership and managerial prowess. The Programme covers different aspects of leadership like
ways to influence the team, finding innovative ways to marshal resources and bringing synergy to the entire
team while staying focused on the bottom line.
LEADERSHIP SKILLS FOR TOP MANAGEMENT
Leadership and change dominate most corporate agendas. Based on 18 years of research and
experimentation at the London Business School (LBS) on the interpersonal skills of leaders, this Programme
helps leaders to assess and enhance their leadership skills. Six sets of leadership skills essential for managing
change are included: Planning, Structuring, Motivating, Rewarding, Institutionalizing, and Managing the
Politics in Change initiatives. The Programme will assess your leadership potential and competencies in
confidence and help you develop an action plan to enhance your leadership skills. Particular emphasis will
be placed on the relationships and behavior of the top team in any change exercise.
STEPPING INTO LEADERSHIP
The pressures on todays frontline managers are relentless in terms of expectations from customers,
senior managers, external suppliers and their staff. The contributions of these managers have a direct impact
on the quality of products/ services that the customers receive. As a frontline manager you need an array of
managerial and interpersonal skills to cope with these pressures, and still deliver ever improving results. This
program is specifically designed to help you lay a strong foundation to your managerial career by learning
the right approach to leadership.

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WOMEN LEADERSHIP
Despite recent strides in womens advancement into leadership positions in India and elsewhere,
women leaders are still not represented in significant numbers in most organizations. Women represent only
11% of Indias CEOs and only 5.3% of the board directorships on the Bombay Stock Exchange. These
statistics suggest that theres a huge opportunity awaiting women for roles of leadership in a rapidly changing
global economy
THE PROBLEM WITH LEADERSHIP STUDIES
These one-discipline scholars are easily recognized because they almost always put an adjective in
front of the word leadership, such as business leadership, educational leadership, or political leadership; and
they strongly hold the assumption that leadership as practiced in the particular profession they are studying is
different from leadership as practiced in other professions. The same can be said for leadership practitioners-those who lead organizations--and those who are responsible for professional training and development in
leadership. Most of these leadership experts are heavily involved in only one profession either as trainers or
as leaders, and by far the largest percentage is in business organizations. Educational and political
organizations have their share. Making leadership and management development measure up.This ability is
widely regarded as rooted in the personal attributes, knowledge and skills needed to set high goals and
objectives and to influence others in order to achieve them. Thus, in leadership development there may be
more emphasis on personal characteristics than in management development. These personal attributes have
been interpreted by some as constituting 'emotional intelligence' (Goleman et al. 2002), covering self-and
social awareness, self-and relationship management, and commitment to approaching people and situations
with vision and command. As a result, the need for reflective learning, coaching and feedback is emphasized
(Dearborn 2002).
STRATEGIC CHALLENGES FOR HUMAN RESOURCE MANAGERS & LEADERS:
Many strategic challenges are faced by organizations as a new century unfolds before us. Fred
Luthans has stated, Trying to effectively manage 21 st century organizations has become the harsh reality.
Today management professors, practitioners, or students-the major challenges are in todays environment,
and the answer will be fairly consistent: An uncertain economy and turbulent geopolitics preoccupy
everyones concerns. However, at the organization level, advanced information technology, globalization,
diversity, and trying to solve ethical problems and dilemmas come to the force. the 21 st century environment
requires new thinking and new ways of managing.
STRATEGIC CHALLENGES FOR LEADERSHIP: Greater involvement in the Overall business, To act
as Business Partner, To manage Intellectual & Organizational capital, Environmental Challenge, Managing
Global Workforce, To build a highly committed & competent Workforce, Matching Individual &
Organizational needs, Changing personal Values of the workforce, Changing Expectations of CitizenEmployees, Decline Productivity & increasing Laws, To balance work & life, Making HR Activities Ethical,
Attitude towards Unions, International Orientation, New Areas of Focus
FEEDBACK AND PERFORMANCE
Your ability to manage individual performance effectively is vital to the success of your team, your
department, and ultimately, your organisation. Providing regular opportunities to review performance will
help you create relevant development opportunities, helping each team member progress towards their career
goals whilst contributing to organisational success. It is also important to use a range of tools and techniques
to manage the performance of your team. Relying on a single method reduces the effectiveness of
performance management and employees can start to lose confidence in your ability to measure and review
their performance objectively.
REFERENCE BOOKS:
Leadership in organizations: current issues & key trends --- JOHN STOREY.
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Leadership for twenty first century --- BY JOSEPH. C. ROST.

Personal and Human Resource Management --- P.SUBBA RAO.
Human Resource Management --- G.S.SUDHA.
Human Resource Management --- J.JAYASANKAR.
WEB ADDRESS
http://ceeprogrammes.isb.edu/open/open_programme_women_leadership.htm?
management=WomenLeadership&addurl=WL0214
GROWTH AND IMPLEMENTATION OF TECHNOLOGY IN BUSINESS
Ms. S. Mathumitha, M.com, M.phil, Lecturer, Nadar Saraswathi College of Arts & Science, Theni
Ms. R.Ramya Research scholar, Nadar Saraswathi College of Arts & Science, Theni

ABSTRACT: The barter system existed in the initial stage of marketing the caveman with his surplus
products, approached and tried to exchange his products by accepting the products he needed exchange of
products at the time human beings were in nomadic hunter stage. In this primitive period the beings were
nothing more than hunters or gatherers. The knowledge we gain every day through various media like
books, newspaper, screen, radio, TV, internet are the result of fast improving technology it opens up to all
the world of our music. This paper studies the impact of Information and Communication Technology
(I1CT) use on economic growth and business in different countries and regions of the world. The results
indicate that there is a positive relationship between growth rate of real GDP per capita and use index (as
measured by the number of internet users, fixed broadband internet subscribers and the number of mobile
subscription per 100 inhabitants) for 159 countries over the world. The recent years technology growth in
business will be increased global customers, new customers, no need for intermediaries, comparison
shopping etc.
Introduction
Technological changes have given rise to a new society based on knowledge and they have also
created new avenues of development, employment, investment and entertainment. Internet is emerging as a
powerful medium to reach the mass. Academics have undergone tremendous change over the years,
assuming new dimensions influenced by technology driven applications. Management education is no
exception to this trend. Traditional commerce and management education methods are observed to be
inadequate. Quality service package delivery is a formidable task for all institutions of management
education. To achieve long-term sustainable advantages in business and management education, more
attention to the issues of service, quality and cost in the national and international markets is
required Information technology has influenced the very nature of business and management libraries. The
conventional set up of brick and mortar libraries that store information within a constrained physical space
have given way to data centers that integrate data sources around the globe by the means of networking.
Objectives
To reduce the cost
To minimize product cycle times
To get faster customer response
To improve service quality
Importance
Small business owners can use technology to reduce business costs. Business technology helps
automate back office functions, such as record keeping, accounting and payroll. Business owners can also use
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technology to create secure environments for maintaining sensitive business or consumer information. Many
types of business technology or software programs are user-friendly. This allows business owners with a
minor background in information technology to use computer hardware and software.
Features
Business technology can help small businesses improve their communication processes. Emails,
texting, websites and personal digital products applications, known as apps," can help companies improve
communication with consumers. Using several types of information technology communication methods
allow companies to saturate the economic market with their message. Companies may also receive more
consumer feedback through these electronic communication methods. These methods also allow companies
to reach consumers through mobile devices in a real-time format.
Function
Small businesses can increase their employees' productivity through the use of technology. Computer
programs and business software usually allow employees to process more information than manual methods.
Business owners can also implement business technology to reduce the amount of human labour in business
functions. This allows small businesses to avoid paying labour costs along with employee benefits. Business
owners may also choose to expand operations using technology rather than employees if the technology will
provide better production output.
Potential
Technology allows small businesses to reach new economic markets. Rather than just selling
consumer goods or services in the local market, small businesses can reach regional, national and
international markets. Retail websites are the most common way small businesses sell products in several
different economic markets. Websites represent a low-cost option that consumers can access 24/7 when
needing to purchase goods or services. Small business owners can also use Internet advertising to reach new
markets and customers through carefully placed web banners or ads.
Growth and risk of technology in business
India is one of the leading offshore destinations in delivering engineering research and development
(ER&D) services with a market share of 22 per cent. The market in India is expected to grow to US$ 42
billion by 2020, as per a Zinnov study titled, 'Engineering R&D: Advantage India'
The information technology (IT) and business process outsourcing (BPO) sector of India is expected to
register a growth of 11 per cent and revenue of US$ 75 billion-US$ 77 billion during 2012-13, according to
National Association of Software and Services Companies (Nasscom)
The public cloud services market in India is projected to grow to US$ 326.2 million, registering 32.4 per cent
growth in 2012, highlighted a report by Gartner.
In addition, India has become a key contributor in global research and of growth in the Asia-Pacific (APAC)
region, playing host to one-third of top 1,000 R&D spenders in the world, according to a Zinnov study titled
'Global R&D Benchmarking Study'.
The Rise of Technology in business
A larger part of internet is the web technology. This is a part which combines each and every divisions
of a business model. The technology revolution for the last 15 years has triggered a huge growth and a
massive educated and technology focused workforce which is leading India to become one of the top
economies of the world by 2020.
For example:
Any new product of the chocolates of Cadbury is introduced in the market; the first approach is to
create a website giving the vital information like why, how they created, how one can purchase the new
products. Website made the first impression, and a successful medium of connecting with the world-wide
distributors. It gives a new angle to market a product by connecting with the concerned sales organization.
ROLE OF TOP MANAGEMENT IN TECHNOLOGY
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Top management is essential to the effective implementation of strategic change. Top management
provides a role model for other managers to use in assessing the salient environmental variables, their
relationship to the organization, and the appropriateness of the organization's response to these variables. Top
management also shapes the perceived relationships among organization components.
BUSINESS PROCESS IN TECHNOLOGY
Business processes integrating modern technology solicits identifying the business requirements
and evaluating the business processes according to its objectives and goals. These changes should benefit the
company and the consumers.

Factors affecting technology based business

Organisational change is usually quite difficult especially when a high number of people are involved as
routines will be modified. It is recommended to inform employees in advance and keep them up to date
encouraging feedback when making such change.
SCA (Sustainable Competitive Advantage) looking at technology from a positive perspective instead of a
necessary evil. Traditional models are changing and advantages can be achieved by investing in modern
technology but just purchasing technology for the sake of having it is not enough, implementing a strategic
plan is the key in order to succeed.
Costs involved a necessary expense in todays emerging environment. However, its understandable that
some organisations are hesitant to invest due to systems being outdated quite often, but the ones who view
this investment as an opportunity to gain competitive advantage and have a well-developed strategy attached,
could benefit immensely.
Efficiency productivity, reducing manual labour costs, cost-effective overall factor as it can simplify, speed
up and enhance accuracy (or e.g. departments can interact or check a particular issue or status of an
order/delivery/service from different locations in the Value Chain).
Information Security/Contingency Planning Technology provides a lot of advantages but we should also
take into consideration the responsibilities that come with it. Businesses should take into account the rise in
data breaching and various cyber-crime elements and must invest in effective ways of preventing or
combating these factors. Imagine if an important process becomes unavailable suddenly or a system is
hacked. Businesses must have these contingency plans in place in order to protect their valuable assets.
Effects of Technology in Business
Outsourcing refers to the practice of hiring employees who work outside the company or remotely -and even halfway across the world. Companies can outsource duties such as computer programming and
telephone customer service. Radio frequency identification (RFID) technology is infiltrating and changing
business significantly in a few ways.
Advantages of technology in business
Round the clock business is 24 hours a day and seven days a week in used.
It is easy to reach the global customers.
The cost of acquiring new customers is relatively cheaper.
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 Through internet one can directly approach the customers and suppliers.
The customer service is improved and it results in higher satisfaction and more sales.
Disadvantage of technology in business
The customers are fearful of sending their credit card numbers over the internet.
Not suitable for small traders are not able to fight with business giants.
During heavy shopping seasons is not able to deliver goods in time.
CONCLUSION
Today information is available in variety of forms like CD-ROMs, online databases, e-journals, etc.
Inventions of devices like CD-ROMs and flash memory cards, which have huge storage capacities, have
changed the outlook of libraries. These digital sources of information and storage devices bring drastic
changes in the management libraries because of their distinct advantages in convenience of searching, low
search times, most up-to-date information, etc. These digital sources also require considerable expenses in
infrastructure development.
DEVELOPING THE GLOBAL CUSTOMER RELATIONSHIP
Mrs. A.Mangala vigneswari., Lecturer, Nadar Saraswathi College of Arts & Science, Theni.
Ms. L.Vasanthi, Research scholar, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT Marketing is the management process responsible for identifying customers requirements
profitably. In fact, marketing involves ten types of entities: good, services, experience, events, persons,
place, properties, organizations, information and ideas. In this customer is the king of marketing area at
all times. The production and all other activities centre round the customer. The customer relationship as
a whole can consist of multiple different relationships of customers and suppliers units and these
relationships can be overlapping. Even when all the customers are multinationals, they might need to be
handled in completely different ways. Depending on a culture and geographical location, customer might
need traditional global customer relationship manager or could be easily contacted by any suppliers
employee. The customers role when dealing with these challenges is also of vast importance since it is
seen that none of the viewpoints alone can sufficiently describe the diversity of managing dynamic global
customer relationships in dispersed business organization. The challenges of the relationships also
change in time, depending of the development phase of the relationship.
Introduction
Marketing is the management process responsible for identifying customers requirements profitably. In fact,
marketing involves ten types of entities: good, services, experience, events, persons, place, properties,
organizations, information and ideas.Global marketing are a firm's ability to market to almost all countries on
the planet. With extensive reach, the need for a firm's product or services is established. The global firm
retains the capability, reach, knowledge, staff, skills, insights, and expertise to deliver value to customers
worldwide. The firm understands the requirement to service customers locally with global standard solutions
or products, and localizes that product as required to maintain an optimal balance of cost, efficiency,
customization and localization in a control-customization continuum to best meet local, national and global
requirements to position itself against or with competitors, partners, alliances, substitutes and defend against
new global and local market entrants per country, region or city. The firm will price its products appropriately
worldwide, nationally and locally, and promote, deliver access and information to its customers in the most
cost-effective way. The firm also needs to understand, research, measure and develop loyalty for its brand
and global brand equity for the long term.
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GLOBAL MARKETING SPECIALIZATION

Global marketing is a field of study in general business management to provide valuable products,
solutions and services to customers locally, nationally, internationally and worldwide.
Global marketing activities
Market and product selection
Market Entry
Distribution Channels
Pricing for Global Markets
International Marketing Research
Marketing Communication
Procedure Complexities
Organization for International Marketing
Elements of the global marketing
Not only do standard marketing approaches, strategies, tactics and processes apply, global marketing
requires an understanding of global finance, global operations and distribution, government relations, global
human capital management and resource allocation, distributed technology development and management,
global business logic, inter firm and global competitiveness, exporting, joint ventures, foreign direct
investments and global risk management.
Customer
A customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product, or
idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration. Customers
are generally categorized into two types:

An intermediate customer or trade customer (more informally: "the trade") who is a dealer that
purchases goods for re-sale.
An ultimate customer who does not in turn re-sell the things bought but either passes them to the
consumer or actually is the consumer.
A customer may or may not also be a consumer, but the two notions are distinct, even though the terms
are commonly confused. A customer purchases goods; a consumer uses them.
Tennant also categorizes customers another way, that is employed out with the fields of marketing. Whilst
the intermediate/ultimate categorization is used by marketers, market regulation, and economists, in the
world of customer service customers are categorized more often into two classes:

An external customer of an organization is a customer who is not directly connected to that

organization.
An internal customer is a customer who is directly connected to an organization, and is usually (but
not necessarily) internal to the organization. Internal customers are usually stakeholders, employees,
or shareholders, but the definition also encompasses creditors and external regulators.

CATEGORIES OF CUSTOMERS
Based upon the retail the customers are categorized.
Loyal Customers: They represent no more than 20 percent of our customer base, but make up more
than 50 percent of our sales.
Discount Customers: They shop our stores frequently, but make their decisions based on the size of
our markdowns.
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Impulse Customers: They do not have buying a particular item at the top of their To Do list, but
come into the store on a whim. They will purchase what seems good at the time.
Need-Based Customers: They have a specific intention to buy a particular type of item.
Wandering Customers: They have no specific need or desire in mind when they come into the store.
Rather, they want a sense of experience and/or community.
CUSTOMER RELATIONSHIP
In CRM the alphabet R means relationship. But there is always an ambiguity to understand the actual
meaning of this relationship. This relationship between supplier and customer is not a personal relationship or
a one-time transaction relationship; for example buying a refrigerator from a consumers outlet would not be
called as a relationship. Relationship between any two parties is actually the interaction or transaction done
between the two over-times or consists of a continuous series of synergistic episode of interaction many a
times. This relationship only exists when the two parties diverge from a state of autonomy to mutual or
interdependent. Occasionally having a cup of a tea from a caf does not mean that there is a relationship. If
the customer returns to the caf and orders the same tea again because he likes the environment and taste or
the method of making tea, more looks like a relationship.
Relationship with customers can change from time to time because it is evolved under distinguished
situations. Following are the stages from where the relationship with customers can evolve Exploration- Exploration is the process when customer investigates or tests the suppliers capabilities
and performance or cross verifies the products or brands usefulness. If the test results fail to satisfy
customers demands, the relationship can drastically come to an end.
Awareness- Awareness is the process when the customer understands the motivational values of
supplier or the products he sells.
Expansion- Expansion is the process when the supplier wins customers faith and customer falls
under huge interdependence of the supplier. This is time when there are more chances of business
with that particular customer and expand business.
Commitment- Commitment is a powerful stage when suppliers learn to adapting business rules and
goal to excel.
Dissolution- Dissolution is a stage when customer requirement suddenly changes and he looks for
better perspectives. This sudden change is the end of relationship.
Relationship can come to an end due to many reasons like - customer is not satisfied with the services of
supplier or customer diverges to other better brands and products. Suppliers can also prefer to break
relationships due to customer failing to be a part to increase sales volume or when the suppliers are entangled
with fraud cases.
1. Trust: Trust means confidence and security in any relationship and can be treated as the biggest
investment in building long term relationships. Trust is developed between the two parties when they
experience flawless and satisfied motives between each other.
2. Commitment: Commitment is yet another milestone that should be achieved to set a long term
mutual relationship. Commitment can only be attained when there is mutual trust and the two parties
share each others values. In a committed relationship both suppliers and customers strive to uphold
the relationship and never want to exit which in turn results in building the relationship stronger and
sharper.
Relationship is always mutual or reciprocal so it is important for both supplier and customers to stick to
common guideline to attain better relationship among each other. There is lot of involvement of cost, efforts
and time in striving developed relationships between the two parties but the outcome is always inevitable.

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DEVELOPING GREAT GLOBAL CUSTOMER RELATIONSHIP

The relationship between you and your overseas customer shouldn't end when a sale is made. If
anything, it requires more attention. Once you've completed the initial import or export transaction, you must
expect to provide a broad spectrum of "valued-add" services in order to encourage repeat business. The kind
of follow-up "care and feeding" of overseas customers that will keep them coming back. In other words, how
to develop great global customer relations.
Make Customers Your No. 1 Priority

Let's go back to basics for a minute. What drives your import/export business efforts? What are you
really in it for? To make a ton of money? To achieve total quality control? To order around a bunch of
employees and be the big fish in your pond?
Keep in Touch with Your Customer

The first step in developing great global customer relations is to say, wholeheartedly and preferably in
person or via Skype, "Thank you for your business!" Then follow up by expressing further sincere
appreciation via email. These are musts, absolutes, and givens.
Satisfy Your Customer

Whether importing or exporting, you can deliver the right product, the right service, the right price -but do you deliver satisfaction?
Deliver on Your Promises

If you promised the moon, deliver it along with a handful of stars. You want to shine in your
customer's eyes. Delivering on your promises is doing what you say you are going to do when you say you
are going to do it. Every time you follow through on a commitment, small or large, you build trust.
Go beyond Expectations

If your customer wants ordinary service, let them do business with your chief rival. Don't waste time
worrying about whether they'll appreciate it or not. Delight your customer beyond all measure. You've either
bought their product (imported) or sold them on yours (exported), now astonish them with your out-of-thebox thinking by going way beyond the call of duty.
Involve Your Customer

Don't just get your customer to purchase your product, give them a reason to care -- get them
involved. If you are considering a new product for market, ask your customer for comments about the
packaging, pricing, flavors, technology and distribution, so you can determine whether or not the product will
be a good fit for their sales and distribution channels.
Become Your Customer's Partner

One of the best ways to strengthen ties with your customer is to develop a product, market or
distribution channel together. Pooling resources like contacts, skilled staff, production facilities or joint
financing for a project can kick a business relationship into high gear. When you work together to make your
efforts succeed, you both win.
Exchange Information with Your Customer

There are always opportunities for you to become your customer's "partner" in many of their
endeavors. Just keep an eye out for how you can help them to get where they want to go, not only in terms of
importing and exporting but personally, spiritually and intellectually.
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 Arrange Introductions for Your Customer

Arranging an introduction to an important business contact is a gesture that demonstrates the utmost
respect and appreciation in the import/export marketplace. Such an introduction can be one of the most
valuable services you can offer your customers.
Build Interdependency with Your Customer

You have served your customer, satisfied them, gone beyond their expectations, and helped them to
grow. But have you built a bond with them that encourages them to look to you when there is a problem, or
when they need an experienced importer's/exporter's advice?
CONCLUSION
The customer relationship as a whole can consist of multiple different relationships of customers and
suppliers units and these relationships can be overlapping. Even when all the customers are multinationals,
they might need to be handled in completely different ways. Depending on a culture and geographical
location, customer might need traditional global customer relationship manager or could be easily contacted
by any suppliers employee. The role of social relationships varies as well as the need to use engineering
offices as intermediaries. The customers may be more active with one division than the other and therefore
one division might have plenty of tacit knowledge on how to deal with customer successfully, which is not
communicated to others effectively. Its stated that managing global customers is the different challenges
faced by the organization, since it helps to create a wider and more profound understanding of the whole
phenomenon by not concentrating only for example on organizations internal issues. The customers role
when dealing with these challenges is also of vast importance since it is seen that none of the viewpoints
alone can sufficiently describe the diversity of managing dynamic global customer relationships in dispersed
business organization. The challenges of the relationships also change in time, depending of the development
phase of the relationship.
References
Books
Principles of marketing - Philip Kotler and Gary Armstrong.
Marketing management R.S.N.Pillai and Bagavathi.
Marketing management V.S.Ramasamy and S.Namakumari

CHALLENGES IN IMPLEMENTATION OF TECHNOLOGY IN BUSINESS

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Ms. G.Pooranam, Aisstant Professor, Nadar Saraswathi College of Arts & Science, Theni
Ms. N.Nalini, Research scholar,Nadar Saraswathi College of Arts & Science, Theni.

Implementation of New Technology

As time goes by the people get older and older, they keep up with current events and get wiser.
This is the same mentality that to be need in our business. In order to stay current with events and remain
competitive, they must keep up with the times. As they become more technologically advance, the way they
use to run business, may not be the most productive and efficient way to do so anymore. Our operation
systems and methods start becoming obsolete or just old, and in order to be efficient and competitive in
todays business market, implementation of system upgrades will be needed. But before upgrading, the
business needs to know the pros and cons of new technology implementation. The idea of implementing new
technology systems to upgrade old ones is to improve performance, make things simpler and improve the
quality of work effective and efficient.
Business Implementation Challenges
1. Cost and overall integration:
The Hardware, Software and re-engineering cost of switching from a manual-read bar code system to
an RFID (Radio-frequency identification) system are significant. Cost estimates in current literature are in
line with $400,000 for warehouse conversion, $100,000 per store conversion and $35 to $45 million to
integrate the RFID system into the entire organization. These estimates point to software modifications and
integration of the RFID data into a firms overall architecture as the leading cost. For many firms,
understanding how to maximize the use RFID data in their specific business application vice viewing it in the
context of replacing bar code data will be a strategic implementation challenge.
2. Cultural:
With implementation of RFID systems changes will come for employees across the organization.
Many employees will have to modify how they conduct their daily routine, while not fully understanding and
appreciating the value of RFID systems to the organization as a whole. Re-training of employees in
warehouse, retail floor and cooperate supply management and IT systems personnel will be required.
Successful implementation by early movers show that top management need to fully embrace RFID system
implementation for the program to be successful.
3. Mandate issues:
With many large retailers mandating either Gen1 or Gen2 RFID systems, manufactures and smaller
retailers will find themselves having to adopt RFID technology to remain suppliers to the large retailers or
have the ability to utilize RFID tags (for smaller retailers) as manufactures covert to RFID systems. Smaller
retailers will be faced with weighing the cost of implementing RFID systems while balancing the cost with
expected (and desired) benefits. Additionally, RFID early movers who invested in Gen1 RFID systems will
be faced with determining when and how to convert to Gen2 systems.
SaaS
Software as a service (SaaS), sometimes referred to as "on-demand software" supplied by ISVs or
"Application-Service-Providers" (ASPs), is a software delivery model in which software and
associated data are centrally hosted on the cloud. SaaS is typically accessed by users using a thin client via
a web browser. SaaS has become a common delivery model for many business applications, including Office
& Messaging software, DBMS software, Management software, CAD software, Development
software, Gamification,Virtualization, accounting, collaboration, customer relationship
management (CRM), management information systems (MIS), enterprise resource planning (ERP),
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invoicing, human resource management (HRM), content management (CM) and service desk
management. SaaS has been incorporated into the strategy of all leading enterprise software companies. One
of the biggest selling points for these companies is the potential to reduce IT support costs by outsourcing
hardware and software maintenance and support to the SaaS provider.
Common SaaS problems that occur after implementation
SaaS has many advantages but there are still a number of problems that a business may encounter
when dealing with SaaS. Detailed below are some of the most common problems that business may face
when using SaaS.
1. An internet connection is required at all times
One of the biggest drawbacks of SaaS is the fact that employee's can no longer work offline when
SaaS software services are used and that they must be connected to the internet whenever they need to use
these SaaS software services.
For employees working from within their businesses headquarters or for employees who have a
dedicated internet connection at home, this is not too much of a problem. However, for employees who work
from a mobile device such as a laptop or for employees who are constantly on the move, this is obviously a
problem.
2. The security and control of our data is no longer in our own hands
When using SaaS, some if not all of the data of a business will be stored on their SaaS service
provider's data centres. Although most businesses will be happy after implementing SaaS, because they no
longer have to deal with the management of software applications, most businesses will not like the idea of
giving control of their data to someone else. A business has no idea how their SaaS service provider will
secure their data and what backup procedures that their service provider will have in place. The only thing
that a business can go by, is the word of their service provider confirming that they will ensure that their
clients data will be well looked after.
3. Management can no longer control what version of a software application that the concern
going to use
Although SaaS is great because software applications are constantly up to date, sometimes a business
is better of using an older version of a software application but SaaS just does not allow this.
Again this is good because a business is constantly up to date but the fact that businesses do not have
the choice to use older versions of a software application is the negative thing.
4. Management lose their freedom and are effectively at the control of their software vendor
This is the main problem with SaaS, the fact that businesses lose their freedom and are effectively at
the will of their SaaS service provider.
For example, with a traditional software application, a business pays for this software application
with a single upfront payment. After this, the software application is effectively in their control and they can
do whatever they want with it (as long as they are not breaching their software vendor's terms and conditions,
such as copyright, licensing, etc).
However, with SaaS software services a business must continuously keep paying their SaaS service
provider in order to access the software services that they require. If they accidentally fail to pay their service
provider for one month (if they are paying monthly), then they risk losing their software services.
Challenges must be overcome before the companies are to absorb new technologies efficiently
The some of the challenges managers must overcome if companies are to absorb new technologies
efficiently.
A Dual Role
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Those who manage technological change must often serve as both technical developers and
implementers. As a rule, one organization develops the technology and then hands it off to users, who are less
technically skilled but quite knowledgeable about their own areas of application. In practice, however, the
user organization is often not willingor ableto take on responsibility for the technology at the point in its
evolution at which the development group wants to hand it over. The person responsible for implementation
whether located in the developing organization, the user organization, or in some intermediary position
has to design the hand-off so that it is almost invisible. That is, before the baton changes hands, the runners
should have been running in parallel for a long time. The implementation manager has to integrate the
perspectives and the needs of both developers and users.
Marketing executives worry about how to position their product in relation to all competitive products
and are concerned with distribution channels and the infrastructure needed to support product use.
Adoption of a marketing perspective encourages implementation managers to seek user involvement
in the:
(1) Early identification and enhancement of the fit between a product and user needs,
(2) Preparation of the user organization to receive the innovation, and
(3) Shifting of ownership of the innovation to users.
Marketing Perspective
A marketing perspective helps to prepare an organization to receive new technologys design phase
boosts user satisfaction is quite well known, but the proper extent, timing, and type of user involvement will
vary greatly from company to company.
For example, software developers in an electronic office equipment company established a user
design group to work with developers on a strategically important piece of applications software when the
program was still in the prototype stage. Prospective users could try out the software on the same computer
employed by the programs developers.
The extremely tight communication loop that resulted allowed daily feedback from users to designers
on their preferences and problems. This degree of immediacy may be unusual, but managers can almost
always get some information from potential users that will improve product design.
Many implementation efforts fail because someone underestimated the scope or importance of such
preparation. Indeed, the organizational hills are full of managers who believe that an innovations technical
superiority and strategic importance will guarantee acceptance. Therefore, they pour abundant resources into
the purchase or development of the technology but very little into its implementation.
The Challenges of Implementing New Technology on the Business Process
1. Not Understanding the Business Needs
A critical failure which can occur at the beginning of a project happens long before the concern
selects a technology, define a standard or develop a new process. It is the fundamental problem of not
understanding the business requirements and defining those requirements clearly and concisely. If concern is
not clearly articulate the user requirements it is impossible to determine if the potential solution could ever
meet the user needs. This requirement has been listed on almost every request for proposal or set of customer
requirements our company has seen.
2. Lack of Leadership
Another problem that can arise early in a project is either the lack of clear vision or the inability to
communicate that vision to the business. The most basic issue which occurs is that the senior leader
responsible for solving the business problem does not really understands the problem.
They do not take the time to submerge themselves into the process challenges their staff are
encountering and drill into specific requirements around what needs to change. Instead they throw around a
few buzz words such as data warehouse workflow, and standards and pick a technology that also
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includes those same buzz words within their marketing material. As is fairly obvious, this leads to significant
headache and frustration when the rubber meets the road and the users are trying to figure out how to define
their process around this new technology.
Another fundamental issue often encountered is a leader who has a clear vision and understands the
specific business needs, but fails to communicate that message to the all layers of the business.
3. Unrealistic Expectations
Probably the single most critical challenge in implementing change is related to the last section and
revolves around the ability of senior management to understand and manage expectations.
4. Wrong Team
Another key component in having a successful implementation is to make sure the right people
leading and participating on the project team.
E-procurement
E-Procurement is the new paradigm in procurement which acts as information hub to support
business planning and decision making. It improves performance of routine tasks like transaction processing,
monitoring and enforcement of regulatory compliance. It increases transparency, eliminates middlemen
overhead cost, improves competition amongst suppliers and eases management reporting.
Challenges in E-procurement in India
There are a number of requirements relating to e-procurement like technology, objectives,
information, staffing and skills. Therefore, its implementation may not be simple and this leads to certain
challenges in E-procurement. According to Sumanjeet (2010), the major challenges of e-procurement in
Indian context are poor telecom infrastructure, readiness of customers and vendors government policies, high
cost of internet usage and education. Also another factor that is responsible for the poor implementation of ecommerce in India is poor legal regime for e- commerce other factors such as initial investment, suppliers
adaptability to change, skill sets/knowledge pool, incompatibility of software/data migration issues,
weakness in the legal framework are few important challenges.
1. Huge Initial Investment
E-procurement requires new IT systems that are often a significant financial investment. Moreover,
problems like technical issues hinder implementation for both buyer and supplier.
2. Suppliers Resistance to Changes
Buyers have to deal with the technological immaturity and unpreparedness from the suppliers side
during the course of implementing e-purchasing initiatives (Rebecca Angeles and Ravi Nath, 2007).
A study by Min and Galle (2001) indicates that small firms are generally resistant to innovation and
also lack the technical competence in relation to personnel as well as IT infrastructure that is required for
responding to buyer through e-procurement.
3. Limited Knowledge Pool
The consultant expertise on advanced procurement initiatives is still a relatively grey area because of
typical differences among industries in its procurement strategies. Moreover, in contrast to large firms,
smaller firms have more expectations from consultants with regard to guidance (Rebecca Angeles and Ravi
Nath, 2007).
4. Incompatible Software Migration
When a new software system is procured, the transfer of data and control standards becomes an uphill task as
the data becomes incompatible with the new software.
5. Nascent Market Place
Since transaction using e-procurement is a relatively new area, it is very likely that less developed
marketplaces may not be able to offer services like e-RFQ, reverse/forward auctions, dynamic bidding, and ecatalogue creation & maintenance to subscriber firms.
6. Weakness of IT Act
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The present IT Act in India is weak and a sound legal framework is vital for the success of e-commerce in
India. Hence, there is a strong need to introduce separate law for
E-commerce in India as the existing laws is incapable to deal with the various issues that are emerging with
the increasing implementation of e-commerce in India.
7. Legal Issues
In relation to legal issues regarding e-procurement, privacy and security have been major issues as
customers information and data has to pass through many levels (Sumanjeet, 2010). It is an obligation for
business to ensure that the personal information of customer is secure. Moreover, disputes due to domain
names are becoming common on account of cyber-squatting.
Challenges affecting the use of HR technologies
The use of the technology oriented processes in an organization are affected by various
Factors, which are highlighted as follows:
Employee orientation
The employees of the organization needs to be convinced by the fact the use of technology in the
processes will help in generating better and improved results compared to the existing processes.
Work Culture
Work culture also affects the acceptance of the implementation of new system in an organisation. The
dimensions of better results can be timely and accurate information, ease of use and completion of work in
lesser time.
Security Concerns
A system or technique designed for one country may not be effective in other country.
Implementation issues across boundaries come with the challenges of data privacy and data movement across
boundaries.
Cost factor
Cost is an important factor to be taken into consideration before implementation of the e- systems.
The companies must prioritise and take the decisions of acceptance and implementation of e-systems on the
basis of vital, essential and desirable operations.
Training and learning
The process of training and adaptation to the new e-system be a cumbersome and time consuming
process. It may be challenging for the users if they do not find it user friendly.
Technical limitation
An organization cannot depend on technological websites or software completely to handle every
issues related to HR.
A website cannot ever replace a skilled professional. Employees may not be able to make senses of
choice from the website and may need to discuss the issues personally with HR experts or professionals, in
case of doubts, faced by them.
Conclusion
In todays scenario technology implementation in business is a important factor to retain in the
competitive world. The technology implementation is on developing trend. The technology which is used in
business has so many advantages as well as it has so many problems too. To reduce its problems the
technology developers has develope it more.
Reference
http://searchitchannel.techtarget.com/feature/Common-SaaS-problems-that-occur-after-implementation
http://searchitchannel.techtarget.com/feature/Common-SaaS-problems-that-occur-after-implementation
http://www.studymode.com/essays/Implementation-Of-New-Technology-337932.html
Books
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Frontiers of electronic commerce - Ravi Kalakota, Andrew B. Whinston

MODERN MARKETING CONCEPT AND CHALLENGES

Ms. N.Renisha, Lecturer, Nadar Saraswathi College of Arts & Science, Theni
Ms. S.Sheeladevi, Research Scholar, Nadar Saraswathi College of Arts & Science, Theni

Abstract: Marketing is a process that affects our lives. We are consumers, but many of us are part of
marketing like salespersons, wholesalers, Retailers, Raw material suppliers and so force. As we know, the
concept of marketing is constantly redefined. Marketing defines activities that create value through
exchange between parties. This concept is a traditional definition of marketing. That used in many
companies and organization, but in the globalization age, another concept is created that called modern
marketing. In this article we tried to examine the concept of modern marketing, role and characteristics
and challenges of its usage in companies and firms.
Introduction
World is constantly changing. Creating new industries and products show this fact. A few years ago,
speed of these changes, maybe was every couple of years or every decade, but now, every year or every
month we are seeing new goods and products that in the past there was not any kind of them. Before 2007,
nobody even thinks that one day someone will make phones that work with touching our hands. But today,
these phones are inseparable parts of our lives and without smart phones; our lives maybe seem too hard.
Emerging new products needs new markets and finding new markets needs new marketing that called
modern marketing. So in the globalization age, we need to consider the concept of modern marketing and its
role and place at the companies and organizations.
Marketing

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Marketing has been viewed traditionally as the business actives. Business organizations exist to
satisfy human needs, especially material needs. Consequently, one way to define marketing is from the
business perspective. For instance, marketing has been defined as the delivery of a higher standard of living.
Because marketing activities bring about exchanges, marketing is an essential function in an
economic system. In a free enterprise economy, resources are allocated by interaction of supply and demand
in the market place. Marketing activities and institution provide the frame work and a mechanism for this
inters action and the exchange taking place.
Marketing concept
The marketing concept is aimed at orienting a firm completely toward its customers. As such, a
customer focus should permeate every department from production to finance to human resources. All major
decision should be based on the relevant market considerations.
This course is based on the modern approach to marketing, which embraces the marketing concept.
There are three basic propositions of the this approach.
A. Customer focus
Managers must shift their focus from an internal company perspective to the customers
viewpoint. Successful marketing requires a complete understanding of buyers and their needs.
B. Coordination
All elements of the marketing program known as the marketing mix constitute an interrelated
system, and therefore the program must be viewed and planned as a whole. Also, marketing itself must be
closely interrelated with other business activities.
C. Profit orientation
Profit, not just increased sales, is the goal of a firm. Because customer satisfaction is the path
to profitability, customer focus is the logical focal point for profit planning.
Marketing mix
A marketing mix is the set of controllable variables and their levels that the firm uses to influence its
target market. Mc carthy popularized a four factor classification of these tools called the four Ps: product,
price, place and promotion.
Product
decisions relate to product or service range.
Price
price should be set for each product/service.
Place
identification and selection of channels for distribution and deciding what levels
of service are appropriate thus defining the logistics involved.
Promotion to communicate with the target market and persuade the people concerned to
buy.
Modern Marketing
Modern marketing possesses special characteristics. Modern marketing covers all business activities
in order to ascertain the demand, product planning, distribution and facilitating the entire marketing process.
The features of modern marketing are discussed next.
1. Consumer orientation
Modern marketing recognizes consumers supremacy in marketing. The managerial attention was
focused on the market and the consumer. The management becomes consumer or marketing oriented.
Consumer becomes the pivot of all business decisions. Creation of satisfied customers is the main goal of
modern marketing. Profit can be earned only by serving the consumers need.
2. Modern marketing beings with the customer

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Now, the production is carried on in large quantity. Market has developed from national to
international. Earning profit is possible only through the consumers satisfaction. To satisfy a customer, his
needs are to be known. Under consumer oriented marketing, it becomes essential to know what the consumer
needs. Modern marketing begins with the consumer and ends with the consumer.
3. Modern marketing begins before production
In early periods, there were fewer competitions and as such sales were easily made. But now this
stage has changed. The consumer looks for the usefulness and acceptability of a product. As such it has
become essential to find out the needs and desires of consumers, through marketing research. Thus, product
planning and development is undertaken before the actual production takes place.
4. Modern marketing is a guiding element
At present competition is more acute, because many entrepreneurs produce similar commodities.
They decide what product to purchase and what product not to purchase.
Development of Modern Marketing
The period the human society is going through is now reflected in various specialized works by
names that express its traits (characteristics) in comparison with previous periods: the new economy, the
knowledge economy, etc.. In the new economy, each science redefines its object, method, and scientific tool.
Marketing is no exception to this trend, its contents being continuously redefined and reflected in the
framework of some concepts that reported in previous stages of marketing development are grouped in a new
concept, called modern marketing. Modern marketing traces its origin to the primitive forms of trade. As
people began to adopt the techniques of work specialization, a need for individuals and organizations to
facilitate the process of exchange emerged. Until about 1900, however, marketing was little more than
physical distribution. We can trace the development of modern marketing through three stages the production
era, the Product era and the era of the sales.
Production Era
The production era, one of the oldest in business, holds that consumers prefer products that are widely
available and inexpensive. Managers of production-oriented businesses concentrate on achieving high
production efficiency, low costs, and mass distribution. This orientation makes sense in developing countries,
where consumers are more interested in obtaining the product than in its features. It is also used when a
company wants to expand the market. Texas Instruments is a leading exponent of this concept. It concentrates
on building production volume and upgrading technology in order to bring costs down, leading to lower
prices and expansion of the market. This orientation has also been a key strategy of many Japanese
companies.
Product Era
Other businesses are guided by the product concept, which holds that consumers favour those
products that offer the most quality, performance, or innovative features. Managers in these organizations
focus on making superior products and improving them over time, assuming that buyers can appraise quality
and performance.
Selling Era
The selling era, another common business orientation, holds that consumers and businesses, if left
alone, will ordinarily not buy enough of the organizations products. The organization must, therefore,
undertake an aggressive selling and promotion effort. This concept assumes that consumers must be coaxed
into buying, so the company has a battery of selling and promotion tools to stimulate buying.
Societal Marketing Era
Some have questioned whether the marketing concept is an appropriate philosophy in an age of
environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and
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neglected social services. All companies that successfully satisfy consumer want necessarily acting in the
best, long-run interests of consumers and society.
Social Responsibility in Marketing
Being socially responsible means an organization shows concern for the people and environment in
which it transacts business. It also means that these values are communicated and enforced by everyone in
the organization and, in some cases, with business partners, such as those who sell products to the company
(e.g., supplier of raw material for product production) and those who help the company distribute and sell to
other customers (e.g., retail stores).
The Role of Modern Marketing
The key objective of an organizations marketing efforts is to develop satisfying relationships with
customers that benefit both the customer and the organization. These efforts lead marketing to serve an
important role within most organizations and within society. As was mentioned, modern marketing is a very
new concept that needs companies and marketers pay attention to it.
Characteristics of Modern Marketers
Two days, that modern marketing is created for responding Companies needs, it is important that the
marketer become modern too. In this way, the person can coordinate himself for herself with modern
marketing. Paul Christ has enumerated five characteristics for modern marketers. They include:
Basic Business Skills
Marketers are first and foremost business people who must perform necessary tasks required of all
successful business people. These basic skills include problem analysis and decision-making, oral and written
communication, basic quantitative skills, and working well with others.
Understanding Marketings Impact
Marketers must know how their decisions will impact other areas of the Company and others business
partners. They must realize that marketing decisions are not made in isolation and that decisions made by the
marketing team could lead to problems for others. For example, making a decision to run a special sale that
significantly lowers the price of a product could present supply problems if the production area is not
informed well in advance of the sale.
Technology Savvy
Todays marketers must have a strong understanding of technology on two fronts. First,
marketers must be skilled in using technology as part of their everyday activities. Second, business
opportunities as well as potential threats. For instance, the rapid growth of search engines requires marketers
to firmly understand how these fit within an overall marketing strategy.
Need for a Global Perspective
In this world there is no internet worlds in nothing Thanks in large part to the Internet; nearly any
company can conduct business on a global scale. Yet, just having a website that is accessible to hundreds of
millions of people worldwide does not guarantee success. Marketers selling internationally must understand
the nuances of international trade and cultural differences that exist between markets.
Information Seeker
The field of marketing is dynamic. Changes occur continually and often quickly. Marketers must
maintain close contact with these changes through a steady diet of information.
Modern Marketing Challenges
The future isnt ahead of us. It has already happened, says marketing teacher Kotler. And this future
which we are seeing today has brought with it many opportunities as well as challenges. While on the one
hand globalization and liberalization have brought down geographical barriers, technological advancement
has made the world a smaller place. This has opened up immense business opportunities in the shape of the
entire globe being one huge market; it has also posed threats to existing market share with the entry of
foreign giants in the domestic markets. This change in the marketing environment necessitates a re-look at
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the entire marketing function and strategy. The four pillars of marketing strategy have, been product, price,
promotion and place. However, they have acquired newer dimensions in changing times.
On the other hand, we can say, modern marketing challenges are the same old challenges of the
marketing. So we have to manage marketing mix correctly. It means that our products must be related with
costumers needs and they should have suitable price and also, we must deliver them in the right time and
right place. We must care about selling them and their facilities. In modern marketing we have to pay
attention to these four pillars and try to do each of them in the best way.
Conclusion
As is mentioned, modern marketing is a new concept and challenges that represents the needs and
values of costumers and society, not just corporate and benefits. Companies seek their advantages and they
do not care about basic principal that what kind of goals and values individuals and society have. Therefore,
companies should be familiar with this modern and strategic principal and we must draw their attention to the
aims and interests of the people and not just companys. It is possible by expansion of modern marketing
concept and challenges encouraging companies to replace it rather than the traditional way.
Reference
1. Armstrong, G., & Kotler, P. (2005). Marketing: An introduction (7th ed.). Upper Saddle
River, New Jersey: Pearson Prentice-Hall.
2. Chandler A.D. JR.(1962). Strategy and Structure, Cambridge, mass: The M. I. T. Press.
3. Christ, P. (2012). KnowThis: Marketing Basics, Paperback - 6.69" x 9.61"; Digital eBook
format, by KnowThis Media.
4. Kleiman,D. (2012), The President of MITX, The Massachusetts Innovation & Technology Exchange,

The Nonprofit Trade Association Focused on Digital Marketing and Internet Business in New
England and The Creators of Future M Boston.
5. Kalpana ,A.(2000). learning and development professional and the chief synergist of Kiai
People Solutions at Delhi.
6. Kotler, P. (2003), Marketing Management 11th ED, Prentice All: USA.
7. Kotler, P. (1991), Marketing Management. Analysis, Planning, and Control, 7th ed.,
Prentice-Hall, Englewood Cliffs, NJ
8. Trader, J. (2008). How Do You Do It Joe? Retrieved May 11, 2008, from
http://www.traderjoes.com/how_we_do_biz.htm

MAJOR LEADERSHIP CHALLENGES IN 21ST CENTURY

Ms. T. Shanmuga Priya, MBA Student, Nadar Saraswathi College of Arts and Science, Theni

ABSTRACT: The Leadership Challenge is a global campaign to liberate the leader in everyone. We
believe that teams, businesses and even the world get better when ordinary people enable those around
them to achieve extra-ordinary things. Leadership is a measurable, learnable, and teachable set of
behaviours. Leadership continues to prove its effectiveness in cultivating and liberating the leadership
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potential in anyoneat any level, in any organizationwho chooses to accept the challenge to lead. In
this paper, I dealt the leadership challenges faced by business and how it can be overcome in upcoming
days.
INTRODUCTION
The life of modern-day leaders is more demanding than ever. Inside their organizations, they need to
motivate a diverse group of women and men, work across organizational boundaries, improve efficiency and
achieve growth. Externally, they face a complex and globalised environment. They have to manage the
requirements of government, keep ahead of competitors, and exceed the expectations of other stakeholders.
And within this global environment, there are many cultural considerations leaders must navigate to be
effective. They must work across cultural boundaries and alongside others who, at times, are very different
from them and have different ways of getting work done. These are difficult challenges, developing leaders
who can face these challenges requires a comprehensive response. Of course, some training needs and
content can be derived from organizational strategy and planned change initiatives. Yet other needs and
challenges arise that strategy or change initiatives do not anticipate.
LEADERSHIP DEVELOPMENT
The best leaders understand the present is nothing more than a platform for the envisioning of,
and positioning for, the future. If you want to lead more effectively, shorten the distance between the futures
and present. Inspiring innovation and leading change call for more than process they require the adoption of
a cultural mindset. Leaders who protect the status quo through control must surrender to change in order to
secure the future for their organization. Dont be the leader who rewards herd mentality, and me too thinking.
Dont be the leader who encourages people not to fail or not to take risks. Be the leader who both models and
gives permission to do the exact opposite of the aforementioned be a leader who leads.
There are some that can see it in themselves; there are those that need to be informed. Talent needs to be
nurtured: Many times it takes someone else to recognize that an individual can think beyond their job, can
think bigger, and have the potential to make a bigger impact.
Morrison goes on to point out the barriers to leadership development. These need to be minimized.
Prejudice: Assumptions people hold which prevents them from seeing the new, which is clearly the
requirement of a leader.
Poor career planning: Leaders do not just happen, and the only person responsible for becoming a
leader is the individual.
Poor work environment. The work environment should encourage creative and innovative thinking
that also allows the potential leader to fail, so as to learn.
Lack of organization acceptance: leadership is a political game, and the key is to win the key
influencers.
CHALLENGES
Smart leaders challenge everything especially conventional thought, best practices, and
dominant logic. When I refer to dominant logic Im referencing existing behaviors/practices, which lock
companies into a pattern of once productive thinking that no longer is (false truths held as real). Anything in
business can be improved, everything can be re-imagined, and many things can flat out be eliminated. The
trick knows what items to focus on. While the following list is clearly not exhaustive, it identifies 10 things
all leaders should challenge:
1. Challenge The Foundation Bad things happen when your foundation is shaky. The best leaders stand
for something bigger than themselves, and theyre driven by more than just profit motive. They understand
the value of a purpose driven business. If what Ive just said doesnt make any sense, its time to start the reimagination process.

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2. Challenge The Destination Leadership isnt destination based its a continuum. Great leaders think
beyond the outcome. They think about what if and whats next. They dont get trapped in the journey to a
specific destination, but remain in constant search of discovery in order to seek new and better opportunities.
3. Challenge The Promise Is your brand promise on target? Is it deliverable? Is it sustainable? If you
cannot keep your promise to customers, you wont have much of a business to worry about. Few things
hinder the advance of a business like a brand in need of a refresh.
4. Challenge the Model - Not all business models are created equal. Furthermore, just because you have a
business model doesnt mean its the right one, or that its sustainable. Break the business model down from
the revenue engine all the way down to the distribution model and delivery strategy. Does it afford you a
competitive advantage moving forward, or does it need to be re-imagined?
5. Challenge The Information Not all inputs are created equal. Dont think big data think good data.
Smart leaders understand theres a difference between gut instincts, data, information and knowledge.
Always challenge the information, but recognize theres a difference between being a skeptic and being
discerning. Lastly, its always worth reimagining how you process information to yield better decisions.
6. Challenge The Organization - The Matrix model has been around for nearly 30 years. While many
organizations have killed the Matrix, some have readopted it, others have remained trapped in the Matrix for
decades, but virtually every large enterprise using it is over-matrixes. I can think of no better target for reimagination than the Matrix. For those of you not trapped in the Matrix, youre not off the hook. Any
organizational structure can be remained and improved.
7. Challenge The Culture - Every organization has a culture. Some are carefully created and curate by
design, and others evolve by default. The bottom line is culture can be a significant asset or a tremendous
liability. Leaders who fail to constantly challenge cultural norms and constructs are failing themselves and
those they lead.
8. Challenge The Talent - Many things benefit from compromise, but talent is not one of them. If you settle
for anything less than acquiring, deploying, developing, and retaining the best talent possible, shame on you.
Ive often said, leaders deserve the teams they build. If you cannot seamlessly mobilize and deploy the best
talent to your greatest opportunities or your biggest risks you have a problem. If succession isnt an enterprise
wide concern there is trouble on the horizon.
9. Challenge The Complex - Dont fall into the trap of believing sophistication is synonymous with
complexity its not. Great leaders challenge all things complex, and if theyre smart, they look to simplify
everything. Whether its strategy, organization, process, or execution, if its complex it needs to be reimagined.
10. Challenge Yourself - The truth is most leaders are skilled at challenging others, but are woefully
inadequate when it comes to challenging themselves, or allowing others to challenge them. When leaders
hold themselves to a higher standard of rigor, discipline, accountability, and transparency everyone wins.
CHALLENGES FOR WORLD LEADERS
The most frequently mentioned challenge for India, China and the United States is developing
managerial effectiveness, which requires a focus on very specific skills such as prioritization, time
management, and decision-making. So what can a leader do to nurture this skill? Goal-setting is importantbe proactive in setting goals, and with setting the timelines and deadlines required to meet those goals. It is
also crucial to delegate more. Delegating can, in fact, make you more productive by empowering the people
to whom you have given work. The other three challenges - inspiring others (top challenge in Singapore),
developing employees (top challenge in Egypt), and leading a team (top challenge in Spain) - are all related
to the relationship-oriented part of leadership. Leaders must focus on production as well as demonstrate
interpersonal skill. Many times people are uncomfortable with change. It is also critical to embrace emotional
reactions to change.
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GROOMING TOP LEADERS

Business and public service leaders who are fully prepared to run global organizations are in
short supply and in demand as never before. Strategies to prepare today's managers for future leadership roles
must be crafted carefully and cannot be left to chance. Coursework and training are important but not entirely
sufficient. Organizations must also create systems and processes that enable managers to enhance their
leadership skills through experience. This work involves offering a clear sense of what needs to be learned,
providing colleagues who support their development efforts, and promoting effective developmental
practices, such as reflection, dialogue, intentional goal setting and feedback. Organizations are pursuing fastpaced, global growth to improve their profitability. They are aided by breakthroughs in telecommunication
technologies that enable interconnectivity and make it easier to create a global footprint. To succeed on a
continually evolving, volatile and complex global stage, however, organizations must complement their
ambitious business growth strategies with sensible leadership development strategies that ensure they have
the talent ready to implement their plans.
NEED FOR MORE AND BETTER
It is misguided to believe that some individuals are born with superior leadership talent and
that we simply need to identify and rank-order them to fill our talent pipelines. Nor is it fruitful to rely on
past selection and development practices. The context for business is changing so fast that new, carefully
crafted strategies are needed based on the best knowledge available. Leadership development cannot be left
to chance. CCL's research shows that the challenges leaders face around the world are more similar than
different. Even though they may feel alone in facing their challenges, it is likely that one leader's challenge is
the same as others several time zones away. So take solace in the fact that you are not alone. For those who
work in training and development, knowing the challenges leaders face can be the catalyst for developmental
initiatives aimed at strengthening their skills. At the same time, we also recognize that there is often a cultural
appropriateness or awareness of how to do certain things in select cultures that must always be considered
carefully as well. In creating training and development initiatives aimed at helping leaders with these
challenges, it is essential to be aware of the cultural nuances.
CONCLUSION
Many executives recognize the challenges, but are unsure what steps to take to overcome
them. First and foremost, they need to take a fresh, holistic look at their leadership development practices.
Their goal should be to develop a sustainable leadership pipeline throughout the organizational pyramid: a
well-rounded leadership team to complement the required skills at the top, a team of successors right behind
them, a strong bench of high-potential individuals identified and developed in the middle, and a cadre of
young, industry-ready talent. The pipeline should also include advancement opportunities for technical
specialists. Companies will need to invest in replicating and implementing specific interventions that have
been successful at global companies (and a small number of Indian companies), instead of generic initiatives.
This means making talent management a key component of HR strategy, and making HR a key participant in
the firms decision-making processes. By taking these steps, companies can fill their immediate gaps while
building the enterprise capabilities necessary to ensure that they thrive in the long run. But only in companies
whose leaders endorse this approach wholeheartedly, and where it can become ingrained in the companys
culture, will such changes take hold. Talent is Indias greatest opportunity, but it is also one of its biggest
challenges. The same is true for more and more businesses in other developing regions around the world. In
each of them, it falls to todays executives to ensure strong leadership for generations to come.
References
Websites:
www.forbes.com
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www.business-standard.com
www.entrepreneur.com
www.leadershipchallenge.com

Book: Organizational behaviour by Khanka

CHALLENGES IN WORKING ENVIRONMENT OF THE ORGANIZATION
Ms. S.Saranyaa, MBA Student, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT: Work environment is one of the essential processes in an organization. The workers and
employees in factories are very often exposed to additional risks of environmental pollution,
occupational diseases and injuries. Working conditions include all aspects of work such as physical,
social, economic, legal and human. So managements new challenge is to create a healthy work
environment that attracts keeps and motivates the employees. The data was collected from the 120
employees about the work environment in the Michael raj textiles. The overall view of the employees
are analyzed that they are satisfied with the work environment of the company.
INTRODUCTION:
Work environment involves the physical geographical location as well as the immediate surroundings
of the work place such as a construction site or office building. It typically involves other factors relating to
the place of employment such as the quality of the air, noise level. It is important to understand that a healthy
work environment must take into account the culture of the work place which reflects the attitudes and
behaviours of its employees.
SCOPE OF THE STUDY:
The purpose of this study is to examine the relationship between personality, work environment
preferences and the outcome variables, performance and commitment. The key factors in the employees
work environment that impact greatly on their level of motivation and performance along to the effect of
employees health on their work performance.
OBJECTIVES:
PRIMARY OBJECTIVES:
To find out factors influencing womens perception towards the working environment.
To know the company structure and performance of business environment.
SECONDARY OBJECTIVES:
To understand the relationship between the employees and their working environment.
To find out the perception of employees towards work environment.
To know the satisfaction of female employees and suggestions related to the work environment
DATA COLLECTION:
The primary data are collected through the questionnaire. The secondary data are collected through the
books and through websites.
Healthy work environment:
Healthy work environment not only benefits employees through improved health and wellness but
also benefits customers, shareholders and communities
Take a comprehensive approach to promoting health and wellness
encourage workers to take responsibility for their own health, safety and wellness and contribute to
creating a healthy work environment
create environments that make the healthy choice the easy choice
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 provide information and resources to assist their workers to make healthy lifestyle choices and to
achieve and maintain good health
promote work-life balance and make work a healthy life experience
create a healthy physical, social and psychological work environment as a core business
Building a Foundation for Success
A healthy organization creates healthy outcomes for its people improved health and well-being, and for the
organization reduced costs and improved performance. These healthy outcomes depend on whether: the
business values its employees, safety comes first , jobs are challenging, employees have control over work
load and work pace, employees have a say in workplace decisions, relationships are based on trust, respect,
and fairness, employees have adequate resources to do their job , supervisors support employees , employees
have opportunities for training and development, communication is two-way and open, employees are
recognized for their contributions, pay and benefits provide an adequate and secure living standard
ERGONOMICS:
Ergonomics is the scientific study of the relationship between man and his working environment. It
takes into consideration not only the physical environment in which man works but also his tools, materials
and the method and organization of his work. It is concerned with the whole man-the physical, mental,
biological and behavioural aspects.
BENEFIT OF HEALTHY WORK ENVIRONMENT:
Research shows that healthy people working in a healthy environment are key to business success. Thats
because a healthy workplace improves productivity and reduces employers costs. A healthy workplace will
Improve employee health outcomes, Make it easier to attract and retain qualified employeesLower
absenteeism, Reduce health benefit costs, Enhance morale
Healthy Work Environments are good for Business
People who have a supportive supervisor, flexible work places, and low job stress report greater
work-life balance.
Job stress has been linked causally to heart disease, depression, diabetes, asthma, migraines, and
ulcers.
Obesity in the workforce imposes costs on employers, including workers compensation claims,
medical benefit costs, and absenteeism.
Workplace health promotion interventions that are comprehensive, well-designed, and successfully
implemented will have a positive return-on-investment.
Multi-component worksite health promotion programs which track return on investment result in
average reductions in sick leave, health plan costs, workers compensation and
CHALLENGES IN WORK ENVIRONMENT:
Work environment is one of the essential one for the organization to attract the employees to work
efficiently. It must be suitable for the employees to work with passion. Now-a-days there are both male and
female employees are working in an organization. They have the equal rights for working in the company. So
the female employees must need more security to work freely.
There are various facilities such as ventilation, lighting, transport facilities, canteen facilities, water
facilities, sanitary facilities. These all facilities must be provided in the company for the welfare of the
employees. Then only they can achieve the expected return from the employees in the form of work.
FACTORIES ACT, 1948:
The physical aspects of working conditions are regulated under the factories act, 1948
HEALTH
Cleanliness (sec 11)
Disposal of wastes and effluents (sec12)
Proper ventilation and temperature (sec 13)
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 Protection against dust and fumes (sec 14)

Protection from glare or shadow in working rooms (sec 17)

SAFETY:
Dangerous part of the machinery should be fenced by safeguards of substantial construction (sec 21)
Prohibition of employment of young person to operate dangerous machines without proper training
and adequate supervision (sec 23)
Prohibition of employment of women or children near cotton openers (sec 27)
EMPLOYMENT OF WOMEN:
An adult female worker is always treated on a par with the male worker. She is exempted from the
following provisions
She is not allowed to work near a machinery in motion (sec 22)
Females are prohibited from being employed near cotton openers. They may be employed at the
feeding end but not at the delivery end.
In a factory, where more than 30 adult female workers are employed crches must be provided.
A woman shall not be required or allowed to work in a factory for more than 48 hours in a week or 9
hours a day. Women workers are allowed to work only between 6 am and 7 pm. No female worker
shall be asked to work between 10 pm and 5 am.
WELFARE FACILITIES:
It is the major wants and needs for the employees to work comfortably in the firm. There are various
facilities such as lighting, ventilation, water facilities, sanitary facilities, transport facilities, canteen facilities
safety and security. These are all including in the working environment. If there is sufficient welfare facilities
the employees will work with more fulfilments.
WORKING TIME POLICY:
Working time issues have implications for occupational safety and health. Long working hours on a
continuous basis can increase health problems and associated costs, both human and financial.
The factories act stipulates a maximum of 48 hours work in a week. Overtime should not exceed eight
hours in a week and compensation for overtime should double the normal wage. In some sectors workers get
whether they work or not overtime for more hours than are stipulated as the maximum under the law.
OVERVIEW OF THE COMPANY ENVIRONMENT:
The work environment of the company was satisfied for the employees. There are various facilities
in the company such as transport facilities, canteen facilities, water facilities, sanitary facilities. The working
hours were very suitable for the employees to work. There is no restriction for taking leave in the company.
The employees are coming to the company they are doing their works and getting their wages for their dayto-day work in every weekend. There is no rules and regulations for taking prior permission. Mostly female
employees are working in this company. There is more safety for the employees to work in the company.
Employees are coming to the company through the transport provided by the company. The safety measures
are taken in the company very effectively. So the employees are working in the company without any
frustration. If the work environment is good in the company the employees will adapt to the company and do
their work effectively to achieve the success of the company.
CONCLUSION:
So work environment is the essential one for the organization to enrich the employees and to achieve
the goals and objectives of the company. Work environment plays the major role in an organization.
REFERENCES:
Industrial relations - c.s. venkata ratnam
Industrial relations & labour legislations M.R. Sreenivasan
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MAJOR LEADERSHIP CHALLENGES IN 21ST CENTURY

Ms. D. Renugadevi, MBA Student, Nadar Saraswathi College of arts and science, Theni.
Ms. R. Durga devi, MBA Student, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT: This paper is an attempt to show that leadership is not confined at the top level alone.
How leadership can be achieved across all the sectors and at all levels. This paper deals with human
emotions, courage, honesty, honour, justice, patience, compassion and also ego. It can offer likely
solutions to business executives when faced with baffling solutions .The most important role of leaders
has been to solve the problem and challenges faced in a environment.
INTRODUCTION:
In todays highly volatile, uncertain and fiercely competitive business environment, we seek leaders
who can overcome these challenges through good leadership skills, better decision making and by offering
practical as well as humanistic solutions. Successful organizations need leaders at all levels they are doing
well because they have leaders. Profitable organizations deliberately and systematically develop people to be
real leaders, to be people with their own points of view, who motivate others to action. They use every
opportunity to promote and encourage leadership at all levels within the organization, and their top leaders
are personally committed to developing other leaders. Innovative ideas are the engines of organizations
success and effective leaders are the driving force behind those ideas. Successful organizations understand
that effective leaders, not just at the top, but all through the organization, from the CEO to the Team members
in each department. This new age will be increasingly challenging in new ways not before experienced. This
suggests that a new kind of leaders is needed, and this paper outlines the most challenging of current of the
21st century leader.
Good leaders never stop learning:
Are leaders born or made? That never-ending debate is central to this paper. But the purpose here is
not to take sides since the clear answer is Both.
To explain how a leader can hold opposing views in his mind, and come up with a decision which
captures the best of both views. Leaders mobilize people .Their role is to undertake challenging goals that
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involve change. Leaders are active instead of reactive. They shape ideas instead of responding to them. They
adopt a personal and active attitude towards challenging goals.
I am now more convinced than ever that good leaders develop through constant learning about their
personalities, relationships and careers, not to mention the kind of leader they want to become. And although
there are no silver bullets for becoming a good leader because everyone takes a custom-made path the
journeys of the leaders I interviewed share several elements that can help management educators and
organizations develop the worlds next generation of good business leaders while assisting the existing
supply to become even better at their jobs.
Performing, or excelling in a role;
Risking, or taking chances to lead and to learn;
Stretching, or going beyond ones own personal comfort zone;
Learning, or taking the time to reflect on past events to discern the lessons they offer;
Self-awareness, or deliberately seeking to know ones personal strengths and weaknesses;
Trusting, or relying on ones abilities and those of others to build a reputation for being trustworthy;
Adapting, or the ability to act appropriately in different situations;
Mentoring, or learning from other leaders and role models how to develop as a leader;
Observing, or watching others and oneself to better understand events and situations;
o Integrating, or having the capacity to see and understand the big picture.
The best leaders consult with a mix of people, with different perspectives, backgrounds and knowledge
to predict, access and manage risk. They consult with others not only within their own immediate spheres of
influence but in other industries and sectors.

The new leadership challenge:

The complexity of globalization and technology are putting demands on leaders that render old
models of leadership woefully inadequate. Leaders today must be highly flexible, comfortable with fastchanging environments and capable of utilizing multiple leadership styles. The critical component of
effective leadership today is the ability to see reality as clearly and as objectively as possible. This is a far
more complex process than most leaders realize. Only those who have a stable and authentic sense of self,
who know their blind spots, fears, and shortcomings, can view the unfolding of the world around them with
equanimity and objectivity, and thus enable themselves to see the opportunities and challenges that arise.
Without this self knowledge, and even if their business strategies and initiatives are right, leaders will be
ineffective because their organizations will execute sub-optimally
BUILDING LEADERSHIP AT ALL LEVELS:
Leaders at all levels within the organization act to show that influence is two way. They draw on the
collective knowledge, experience and personal interest of the wide.
Leaders reinforce a culture where staff and employees feel able and confident to take lead roles within
the organization. Current and future leaders learn with and from others, formally and informally, prompting
reflection and change. Such modelling and training promotes the conditions through which the organization
sustains excellence.
Leaders create conditions where staff-members have confidence in exercising their initiative and in
grasping opportunities to share knowledge and assume responsibility. They recognize completing forms of
leadership and the capacity of people and teams to achieve a positive impact on the life of organization.
QUALITIES TO INCREASE THE EFFECTIVENESS OF LEADERSHIP AT ALL LEVELS:
Mentoring Others:
Achieving outcomes through the efforts of other Staff members and developing the skills, knowledge
and attitudes of these members to enhance performance. That is why employee mentoring programs are
becoming increasingly common in both larger and smaller businesses. Just as large corporations find that
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there are a number of advantages to having a corporate mentoring program; smaller businesses find that
mentoring in the workplace offers a number of distinct advantages -advantages for the company itself, for
those who are being mentored who will benefit from learning their position in a more effective way and for
the mentors who are able to connect with new staff members and to foster community within the office.
Workplace learning:
Master of Business Leadership is strongly workplace-focused and will allow you to develop skills and
knowledge that can be readily applied in your professional life. The course provides rigorous assignments
that have both a theoretical base and a strong practical emphasis. Assessments are designed so that students
are able to directly apply their learning to the workplace. These assignments are tremendous learning
opportunities which enable students to test their knowledge and ideas, and receive expert feedback.
Developing Capability & Capacity:
Webster's defines potential as "having capacity for existence, but not yet existing; having force or
power; anything that may be possible." Begin by asking yourself a few questions. Do my existing employees
have the capacity to do more and be more? Is it possible I have overlooked some hidden talent or ability that
one or more of my employees possess? After you have identified untapped potential in your employees, you
must provide them with motive and opportunity. A motive is something that impels or incitesa person to a
certain course of action. Increasing the knowledge, skills and attitudes of an organization so that it is better
prepared to cope with uncertainty, ambiguity and unexpected change. The most successful business
owners/managers are exemplary at developing and leading their people.
Potential leaders do not need to be at the top of their organization in order to develop relationships
with others and motivate people to work with them. Leaders should be able to exert their influence from
anywhere in the organization.

THE CHALLENGES 360-DEGREE LEADERS FACE:

Leaders in the middle of an organization often experience frustration and struggle to succeed. There
are three common challenges that leaders in the middle of an organization face. Recognizing and identifying
these challenges enables leaders to devise solutions and resolve issues.
Challenge # It is referred to as the tension challenge, where leaders may not be sure of where they stand.
While they may have some power, authority, and access to resources, they also experience restrictions in
other areas and can get in trouble by overstepping their authority. Good managers think in terms of
opportunities and learn to take initiative without overstepping their boundaries. Tension impacts leaders by
empowerment, initiative, environment, job parameters, and appreciation. Leaders must empower others to
make their own judgments and take appropriate action.
Challenge #2 It is one of frustration, where the issue becomes how to follow an ineffective leader. Being in
this position naturally causes frustration. Insecure leaders can cause this frustration because they can be selfabsorbed, controlling, and fearful of being outshone. These leaders tend to react to situations with anger
when something makes them look bad, maintain the status quo to avoid change, and keep the team constantly
off balance. Frustration is also caused by the leader without vision who fails to provide the passion, direction,
or motivation to progress forward in an often unsupportive environment.
Challenge #3: It is the vision challenge. The more leaders invest in the vision, the more fulfilments theyll
have in bringing the vision to fruition. Leaders who continually communicate the companys vision in every
direction will more effectively fulfil their role in the middle. Leaders from the middle, however, are often
asked to achieve a vision other than their own, and one they did not actually generate.
CONCLUSION:
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Leadership makes a compelling case for a strategic and concerted approach to individual and
collective leadership development to build our country's leadership. If we want the right supply of leaders,
we need to develop leadership in all sectors at all levels and face the challenges. It is a long-term
commitment and a collaborative endeavour. Initiating leadership development from the first day employees
join ensures that a company can build layers of leaders.
REFERENCE:
Websites:
.http://iveybusinessjournal.com/leadership
http://www.vsrdjournals.com/MBA
http://www.csu.edu.au/courses
http://www.slideshare.net
http://www.iupindia.in
Book:
Organizational Behaviour Aswathappa.
Effective Leadership style-Lussier.

Challenges in Employees Attrition rate of Businesses in India

Ms. U.Aishwarya, MBA Student, Nadar Saraswathi College of arts and science, Theni.

Abstract: Attrition is a critical issue and pretty high in the industries in India these days. Though the term
ATTRITION is common, many would be at a loss to define what actually Attrition is, Attrition is said to
be the gradual reduction in the number of employees through retirement, resignation or death. It can also
be said as Employee Turnover or Employee Defection Whenever a well-trained and well-adapted
employee leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge and
business relationships. Modern managers and personnel administrators are greatly interested in reducing
Attrition in the organization, in such a way that it will contribute to the maximum effectiveness, growth,
and progress of the organization. Secondary data is used to collect data for this study. From the study it is
identified that the lack in growth opportunities and the family issues are the major problems for the
occurrence of attrition in the company.
Introduction:
Attrition means reduction of Employees in the organization. Attrition is said to be the gradual reduction
in the number of employees through retirement, resignation or death. It can also be said as Employee
Turnover or Employee Defection. Whenever the organization loss the well trained employees, it affects the
organization a lot. It may decrease the growth of the organization. Now a days Attrition is the major problem
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that highlights by all the organizations. In India all BPO sector has the Attrition problem that was identified
from the survey conducted in August 2011-2012. Attrition has always been a sensitive issue with IT firms.
Despite offering the highest salaries across all business segments, the industry has been plagued with attrition
across the board, particularly in the past few years. This ever-growing wage inflation and attrition rates lead
to financial pressures on firms. The organizations in India should create some opportunities for the growth of
their employees through adopting new Innovative Technologies, Effective training programs. That will help
Indian organizations to reduce Attrition rate of Employees.
Challenges in Attrition:
Attrition management was ranked first by HR professionals as the most challenging, among the
various workforce management processes that they are charged with.
For every level in the organization, there were different sets of reasons for attrition most often
requiring strategies for retention.
Employee engagement is a leading Attrition strategy employed in India.
Objectives of the study:
Is to reveal the key factors that impact attrition.
To identify what are the factors that makes Employee dissatisfaction.
To find solution for reducing Attrition rate in India.
Scope of the study:
To determine effect of attrition on the business in India.
Determination of solutions to avoid or to control attrition in the businesses.
To suggest proper measures.
Impact of Attrition:
Increase in different costs- recruitment, training, lost productivity, hire costs, lost sales cost.
Low employee morale
Reducing value of an organization reputation hampers.
Research Methodology:
The Datas for this study was collected through Secondary data collection method. Secondary
data means data that are already available i.e., they refer to the data which have already been collected and
analyzed by someone else. The sources used for collecting secondary data for this study is Internet, books,
magazines, newspapers and public records and documents.
ATTRITION OCCURS DUE TO INEFFECTIVE MANAGERS
BEENA HANDA, Vice-President-HRM of Claris Life sciences, says
Attrition also happens when people hate their working conditions, do not like their team-mates or
perhaps do not like what they are doing. There are also cases when people leave their job for family reasons
or when they wish to migrate. For example, girls often leave their jobs when they get married and shift to
another city,
Beyond a point, an employee's primary need has less to do with money, and more to do with how he's
treated and how valued he feels. Much of this depends directly on the immediate manager. And yet, bad
bosses seem to happen to good people everywhere. A Fortune magazine survey some years ago found that
nearly 75 per cent of employees have suffered at the hands of difficult superiors.
A WORKFORCE MAGAZINE ARTICLE, "Knowing how to keep your best and brightest," reported
the results of interviews with 20,000 departing workers. The main reason that employees chose to leave was
poor management. HR magazine found that 95 percent of exiting employees attributed their search for a new
position to an ineffective manager.
FIVE PRINCIPAL REASONS FOR WHICH THE EMPLOYEE CHANGE JOBS
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It doesn't feel good around here. This is a corporate culture issue in most cases. Workers are also
concerned with the company's reputation; the physical conditions of comfort, convenience, and safety,
and the clarity of mission.

They wouldn't miss me if I were gone. Even though leaders do value employees, they don't tell them
often enough. If people don't feel important, they're not motivated to stay. No one wants to be a
commodity, easily replaced by someone off the street. If they are regarded as expendable, they'll leave
for a position where they're appreciated.

I don't get the support I need to get my job done. Contrary to opinions heard all-too-often from
management, people really do want to do a good job. When they're frustrated by too many rules, red
tape, or incompetent supervisors or co-workers, people look for other opportunities.

There's no opportunity for advancement. No, we're not talking about promotions, although many
deserving people would like to move up. The issue here is learning. People want to learn, to sharpen
their skills and pick-up new ones. They want to improve their capacity to perform a wide variety of
jobs. Call it career security. The desire is for training and development. If workers can't find the
growth opportunities with one company, they'll seek another employer where they can learn.

Compensation is the last reason people most leave. That's a brash statement, but it's true. Workers
want fair compensation, but the first four aspects must be strong. If they're not, but money's high,
you'll hear people say "you can't pay me enough to stay here."

Attrition Scenario in India

Almost all the sectors in India are facing attrition, but the reasons and effects are unique to
each sector. The attrition rates of different sector are

The BPO sector has highest attrition rate i.e. 50%. The aviation sector, pulsating with the early of
numerous private players, has thrown up irresistible opportunities, fueling attrition to 46%. In case of Service
sector highest attrition levels are seen in sales. One reason for this is the fact that companies in the FMCG
sector are themselves hiring more salespeople. Another reason is that insurance and telecommunications
sectors are also hiring people. At PepsiCo India, according to Pavan Bhatia, executive director, human
resources of the company, the proportion of people hired in sales to total hires increased from 20% in 2006 to
70% in 2007. Leading business chambers of commerce and industries, Confederation of Indian Industry
(CII), Federation of Indian Chambers of Commerce and Industry (FICCI), Associated Chambers of
Commerce and Industry of India (Assocham) and Indian Merchants Chamber (IMC) also facing a major
problem of attrition. The attrition rate among these organizations ranges between 6% to well over 35%.
Sources at these organization said that though they revise salary and remuneration by at least 25 to 30%
annually, it seems it was quite inadequate compared to the market trend. CII, which has total employee
strength of around 550 across India, has the attrition rate of 5 to 6%. FICCI, which has almost equal strength
of Employees, the attrition is almost upto 20

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The country wise attrition rate is shown in the Figure. The highest is United State with
42% followed by Australia & Europe with a global average of 24 %. Comparatively India has only 18%
which is creating havoc in different sectors. Due to the competition and demand for skilled employees in the
industry, many companies when they start a new business they are ready to pay more than the industry
standard. Often this creates spike. The current employer may match the salary to the resigned but he cannot
revise to all employees in the company.
Suggestions and Recommendations
Very few employees are only comfortable with their salary in India. So low salary is one of the
problems. So the Suggestion is to provide salary, which satisfies its employees at least to some extent.
Many of the employees are not satisfied with the working environment and employee motivation. So
the companies in India should give attention to the factors which it can improve itself internally.
The companies in India should recruit many new employees. So, there will be a decrease level in
work pressure among employees. And it helps to reduce the Attrition rate.
The Organizations in India should provide some opportunities for the growth of their employees
through adopting new Innovative Technologies, Effective training programs.
Conclusion:
To control the attrition level in India the Businesses should focus on,
What the employees really expect from the organization?
The common reasons for which the employees feel to change their job?
What makes employee to get dissatisfy in the organization?
BIBILIOGRAPHY
Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age international
(P) Ltd., Publishers, Second Edition,2004.
Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons Publishers, Thirty Fourth Editions,
2005.
WEBSITES
www.pppkainya.com
www.attrition.org/attrition/about.html
www.answers/topic/attriton.com
www.geocites.com/tutor19US/attrition.html
www.bpotimes.com

CHALLENGES TO MEET GLOBAL CUSTOMER RELATIONSHIP MANAGEMENT

Ms. S.Thanalakshmi, MBA, Nadar Saraswathi College of Arts And Science, Theni.

Abstract: My topic is challenges to meet global customer relationship. I include the contents like
introduction about customer. It denotes who buy the goods and services in a market. And I include
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customer services, customer relationship management, benefits of customer relationship management.

I mainly consider the topic challenges to meet global customer relationship management and then
provide some suggestions for my topic.
INTRODUCTION
customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service,
product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration.
Customers are generally categorized into two types:
An intermediate customer or trade customer who is a dealer that purchases goods for re-sale.
An ultimate customer who does not in turn re-sell the things bought but either passes them to the
consumer or actually is the consumer.
A customer may or may not also be a consumer, but the two notions are distinct, even though
the terms are commonly confused. Customer purchases goods a consumer uses them. An ultimate customer
may be a consumer as well, but just as equally may have purchased items for someone else to consume. An
intermediate customer is not a consumer at all. The situation is somewhat complicated in that ultimate
customers of so-called industrial goods and services who are entities such as government bodies,
manufacturers, and educational and medical institutions either themselves use up the goods and services that
they buy, or incorporate them into other finished products, and so are technically consumers too. However,
they are rarely called that, but are rather called industrial customers or business-to-business customers.
Similarly, customers who buy services rather than goods are rarely called consumers. Customer service is the
provision of service to customers before, during and after a purchase. The importance of customer service may vary
by product or service, industry and customer. The perception of success of such interactions will be dependent on
employees "who can adjust themselves to the personality of the guest. From that perspective, customer service should
be included as part of an overall approach to systematic improvement.

CHALLENGES
MAKE MONITORING INTEGRAL TO TRAINING:
Using Quality Balance to record customer interactions, and Quality Evaluation to measure associate
performance online, Starwood could calibrate performance scoring among agents, evaluate customer service
skills, and maintain important facets of customer connection--from problem-solving to politeness. Capturing
both the voice and data aspects of customer interaction, Starwood now has clearer visibility into how
associates use the reservation system--from navigation to how they use information.
IMPROVE DATA ACCESS:
Customers, employees, and independent broker insurance agents. To help reps gain easier access to the
information they needed to service these constituents. Customer service reps' ability to deliver the level of
service required to help customers understand how ANICO's products differ from those offered by its
competitors' systems.
SUPPORT INTERNAL CUSTOMERS:
In turn, human resources (HR) professionals were frequently distracted from their primary
responsibilities, instead answering employees' questions. "We had fragmented, inconsistent support."We had
fragmented, inconsistent support. Most important, we could not measure it," says Annette Leaser, director of
global HR processes and information management at HP.

INTEGRATE SELF-SERVICE:
With the digital imaging boom speeding the pace at Eastman Kodak, the company needed a scalable
method to provide customer service and support that would efficiently handle these growing numbers.
Conducting customer surveys to find out how consumers preferred to find answers to their questions, Kodak
discovered that a high percentage of customers often visited its Web site first. The company then did
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additional surveys--this time in the call centre--asking its customers if they had viewed the Web site prior to
placing their telephone inquiry. The response for many was yes, but in doing so, they had not found their
answers.
CREATE A SINGLE SOURCE OF CUSTOMER INFORMATION:
The South African Revenue Service (SARS) had faced the daunting task of having to work with
fragmented taxpayer information held in eight disparate systems. Officials were required to pull an
individual's information from 10 to 30 different IT systems (based on taxpayer subcategories) and to
manually re-enter each piece of information to obtain a complete view. Managing approximately nine million
taxpayers, business duties like accurate debt equalization became increasingly challenging, resulting in a loss
of tax revenues and customs dues--and frequent taxpayer frustration.
SUPPORT CHANNEL PARTNERS:
Open wave, a provider of mobile Internet software, needed to support an increasing number of
external developers who were building applications and offering services based on Open waves technology.
Its developer base had climbed to more than 100,000, and support volumes were increasing by as much as 50
percent each month, with support requests often highly complex and mission critical.
PROVIDE MULTICHANNEL ACCESS:
Consumer Healthcare Division came to the realization that it needed to upgrade its customer contact
technology to keep pace with its competitors. The company's existing system didn't allow for easily routed
information, and this was hindering its ability to automate processes. "We knew call volumes would increase
through acquisitions and product introductions and we weren't confident our current technology could meet
the increased demand.
MAKE SERVICE DELIVERY UNIFORM ACROSS ALL OPERATIONS:
As a supplier of hardware and software solutions for midrange computer networks, Overland serves
more than 75,000 customer sites around the world. In light of its continuing and rapid expansion, superior
customer service and support became more crucial to the company than ever before. The problem was,
Overland Storage had no single repository for call and support information integration; none of the company
databases was linked. In addition, multiple global locations were operating on separate systems, leaving field
agents without the ability to access data. Overland had three main goals: to allow customers to control the
level of support they received, to streamline support activities and automate internal processes, and to unite
support across the entire company and throughout its global operations.
SUGGESTIONS:
Not having any way for customers to make their complaints to you
Not having a system to record complaints
Failing to acknowledge there is a problem
Not taking responsibility for the problem, and repeatedly giving the customer the run-around by
making them deal with other staff
Blaming the customer for the problem, or saying no-one else has complained
Lack of knowledge of the problem
Lack of knowledge of consumer law
Taking too long to respond
Having staff with no authority to make decisions to help the customer
Offering no solution or offering a solution which is unlikely to resolve the problem
Promising to contact the customer and not doing so.
REPORTING THE PROBLEM
Ensure that your contact details are readily available to customers eg, in the Yellow Pages of the
telephone book.
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WHEN THE PROBLEM IS ACCRUED:

Thank the customer for bringing the problem to your attention.
Treat the customer with empathy, courtesy, patience, honesty and fairness.
Speak to the customer in person, and do not rely solely on written complaints, or records of
conversations.
Show the customer that you clearly understand their problem by listening and taking notes.
Ask questions to clarify the situation.
Do not jump to conclusions, apportion blame, or become defensive.
Summaries back to the customer your understanding of the problem.
Respond to the problem quickly, tell the customer how it will be handled and tell them when they can
expect a response.
SOLVING THE PROBLEM
Tell the customer you are taking responsibility for dealing with the problem.
Familiarize yourself with any background information. This could include checking internal records,
speaking to staff and checking how this compares with the customer's version of events.
Be solution-focused by involving the customer in this process.
Make sure the customer is happy with the proposed solution before going ahead.
FOLLOWING UP AFTER THE PROBLEM
Keep a record of the complaint, and what you have agreed with the customer.
Invite the customer to inform you promptly if they are not satisfied.
Keep a record of all problems and complaints raised.
Use these records to help you evaluate your complaints handling systems. They can help you identify
recurring problems with particular goods you sell or services you offer.
CONCLUSION:
Customers are playing a vital role of every business. We need rectify such challenges in customer
relationship for successful business. Then evaluate our customer feedback will be lead to idea for continuous
growth in our business. So every business considers customer needs and wants.
REFERENCES:
www.ask.com
www.forbers.com
www.conference-board.org

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CHALLENGES TOWITHSTAND IN BUSINESS FIELD

Ms. P.Deepa, MBA Student, Nadar Saraswathi College of Arts & Science, Theni.
Ms. P.Saraswathi, MBA Student, Nadar Saraswathi College of Arts & Science, Theni.

Abstract: In today, by presenting expert viewpoints and analyses. The invited authors are economists,
political scientists, industry pioneers and business analysts, all leaders and insiders, with names that are
familiar to meet a business challenges. It looks at the policies needed to sustain strong growth while
maintaining financial stability in the face of massive flows of global challenges. It critically examines the
performance of various components of the sector. Access to expert knowledge allows executives to develop
innovative and more effective solutions to business issues, be it leadership, management, sales, marketing,
human relations, etc. The challenge that executives face is how to acquire, in the fastest possible time, the
knowledge they and their organisation need to make informed decisions.
Introduction
Starting a business can be risky, and not all businesses succeed. New businesses often fail during the
early years. We recommend that you seriously consider the following causes for business failure.
Understanding what can go wrong, and how these challenges would affect you and your family, can help you
to decide if you are ready to start a business.
Market potential: Before you start your business, thoroughly research your market. Many businesses fail
because the market for their products or services is too small to support them. It isn't enough to know that a
market exists for a product or service, you must also investigate the strengths and weaknesses of existing and
potential businesses so you don't underestimate the strength of your competition.
Capital: Carefully consider your capital requirements when planning your business. You will need enough
capital to sustain your business until it begins to break even or consistently return a profit. Learn more about
funding your business. You could also use financial benchmarking data to find out what funding might be
required to start your business.
Business plan: Prepare a detailed business plan to help you set out clear goals for sales, growth and
expenses. Operating without a business plan can cause a business to lose direction and exceed its budget.
Growth :Carefully plan growth to give your business a much greater chance of success. Some businesses
expand too quickly, putting pressure on their financial and management structures and damaging the quality
of their products or services.
Location: You may struggle to attract customers if your business is difficult to find, hard to access, and
surrounded by competitors. Retail businesses in particular require a prominent and easily accessible location
The challenges of growing a business - and how to meet them
Growing businesses face a range of challenges. As a business grows, different problems and
opportunities demand different solutions - what worked a year ago might now be not the best approach. All
too often, avoidable mistakes turn what could have been a great business into an also-ran. Recognizing and
overcoming the common pitfalls associated with growth is essential if your business is to continue to grow
and thrive. Crucially, you need to ensure that the steps you take today don't themselves create additional
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problems for the future. Effective leadership will help you make the most of the opportunities, creating
sustainable growth for the future.
Keeping up with the market
Market research isn't something you do as a one-off when you launch your business. Business
conditions change continually, so your market research should be continuous as well. Otherwise you run the
risk of making business decisions based on out-of-date information, which can lead to business failure.
The more you succeed, the more competitors notice - and react to - what you are doing. A marketleading offer one day may be no better than average a few months later.
Apparently loyal customers can be quick to find alternative suppliers who provide a better deal.
As products (and services) age, sales growth and profit margins get squeezed. Understanding where
your products are in their lifecycles can help you work out how to maximize overall profitability. At the same
time, you need to invest in innovation to build a stream of new, profitable products to market.
Information sources
Published information can provide useful insights into market conditions and trends. As a growing
business, your own experience can be even more valuable.
You should be able to build up an in-depth picture of what customers want, how they behave and
which of your marketing approaches work best.
Taking the time to talk to key customers pays off. Your suppliers and other business partners can be
important sources of market information. You should encourage your employees to share what they know
about customers and the market. Effective IT systems can also make it easier to share and analyze key
information such as customers' purchasing behavior and preferences.
You may want to carry out extra research as well - for example, to test customer reaction to a new
product. You might do this yourself, or use a freelance researcher or market research agency.
Planning ahead
The plan that made sense for you a year ago isn't necessarily right for you now. Market conditions
continually change, so you need to revisit and update your business plan regularly. See the page in this guide
on keeping up with the market.
As your business grows, your strategy needs to evolve to suit your changed circumstances. For
example, your focus is likely to change from winning new customers to building profitable relationships and
maximizing growth with existing customers. Existing business relationships often have greater potential for
profit and can also provide reliable cash flow. Newer relationships may increase turnover, but the profit
margins may be lower, which may not be sustainable. See the page in this guide on cash flow and financial
management.
At the same time, every business needs to be alert to new opportunities. There are obvious risks to
relying solely on existing customers. Diversifying your customer base spreads those risks.
Cash flow and financial management
Good cash flow control is important for any business. For a growing business, it's crucial - cash
constraints can be the biggest factor limiting growth and overtrading can be fatal.
Making the best use of your finances should be a key element in business planning and assessing new
opportunities. With limited resources, you may need to pass up promising opportunities if pursuing them
would mean starving your core business of essential funding.
Every element of working capital should be carefully controlled to maximize your free cash flow.
Effective credit management and tight control of overdue debts are essential. You may also want to consider
raising financing against trade debts.
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Problem solving
New businesses often run in perpetual crisis mode. Every day brings new challenges that urgently
need resolving and management spends most of their time troubleshooting.
As your business grows, this approach simply doesn't work. While a short-term crisis is always
urgent, it may not matter nearly as much as other things you could be doing. Spending your time soothing an
irritated customer might help protect that one relationship - but focusing instead on recruiting the right
salesperson could lay the foundations of substantial new sales for years to come. As your business grows, you
also need to be alert to new problems and priorities.
The right systems
All businesses produce and rely on large volumes of information - financial records, interactions with
customers and other business contacts, employee details, regulatory requirements and so on. It's too much to
keep track of - let alone use effectively - without the right systems.
Responsibilities and tasks can be delegated as your business grows, but without solid management
information systems you cannot manage effectively. The larger your business grows, the harder it is to ensure
that information is shared and different functions work together effectively. Putting the right infrastructure in
place is an essential part of helping your business to grow.
Documentation, policies and procedures also become increasingly important. The informality that
might work with one or two employees and a handful of customers simply isn't practical in a growing
business. You need proper contracts, clear terms and conditions, effective employment procedures and so on.
Skills and attitudes
Entrepreneurs are the driving force behind creating and growing new businesses. All too often, they
are also the people holding them back.
The abilities that can help you launch a business are not the same as those you need to help it grow.
It's vital not to fool yourself into valuing your own abilities too highly. The chances are that you'll need
training to learn the skills and attitudes required by someone who is leading growth.
To grow your business, you need to learn to delegate properly, trusting your management team and
giving up day-to-day control of every detail. It's all too easy to stifle creativity and motivation with excessive
interference. As the business becomes more complex, you also need to develop your time management skills
and learn to focus on what's really important.
As your business grows, you may need to bring in outsiders to help. You'll want to delegate
responsibility for particular areas to different specialists, or appoint a non-executive director or two to
strengthen your board. As you start tackling a new opportunity, someone who has experience of that activity
can be vital.
For many successful entrepreneurs, learning to listen to - and take - advice is one of the hardest
challenges they face. But it may also be essential if you are going to make the most of your opportunities.
Some entrepreneurs, recognizing their own limitations, even appoint someone else to act as managing
director or chairman.
Welcoming change

Changing to suppliers who can grow with you and meet your new priorities. As your business grows,
consistent quality and reliability may be more important than simply getting the cheapest offer.

Renegotiating contracts to take account of increased volume.

Training and developing employees. Your own role will also evolve as the business grows. See the
page in this guide on skills and attitudes.
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Making sure that you keep up to date with new technologies.

Conclusion
Every business needs to know where it stands and how strong it is at maintaining this position to
ensure that it successfully stands out to potential buyers. A business interested in strong positioning on the
market needs to examine how it ranks compared to competitors. This includes the business resources as
well. It will need to be established whether or not a business is even competitive or not. Evaluating your
business as having strong or high competitive strengths, might help you attain a strong competitive position,
along with a distinct competitive advantage. Being aware of a business strengths as well as weaknesses is
essential when creating a strategy for making a business stand out. Keep in mind that a business rivals are
just as interested in weaknesses, because these are the very factors that will be exploited on their behalf.
References
http://www.rapidfinder.co.in
www.vsrdjournal.com
www.wikipedia.com

CHALLENGES AND COMPETITION IN NEW BUSINESS AREA OF MARKET

Ms. R.Nanthini, MBA Student, Nadar Saraswathi College Of Arts & Science, Theni.

ABSTRACT: In the struggle to move beyond cost-cutting to growth, organizations must look to totally
new sources of top-line product revenue. To drive new revenue, companies are increasingly exploring
how to best identify and enter new markets. The idea is to take shapes from the starting images and create
a new image. Multi-national organizations, 93% of the respondents were at least maintaining if not
damping up their focus on broadening the customer base and entering new markets. Entering new
markets is critical to growth but can have enormous potential for both business opportunity and risk. It
can stretch resources and expose a company to unexpected risks, which might not only thwart a successful
market entry.
INTRODUCTION : Some companies thrive by outperforming the competition in a niche market or within a
specific geographic area. But most businesses seek to expand into new markets in order to leverage current
success, enjoy economies of scale, grow revenues and products, and reduce overall risk and create a more
stable business model. Should business enter new markets? If the answer is "yes," but pause and reflect first.
If you're considering expansion, either targeting new territories or new customers, the odds are you've
enjoyed some level of success in your current market: you know your market, know your customers, and
know how to serve that market and those customers. Entering a new market is less comfortable; in effect you
must prove yourself to a new customer base. On the other hand, you know your current products and
services, have administrative and distribution systems in place, etc., so you don't have to re-invent the wheel.
Your goal is to determine ways to extend your operation into new markets.
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Competitor array
One common and useful technique is constructing a competitor array. The steps include:
Define your industry - scope and nature of the industry
Determine who your competitors are
Determine who your customers are and what benefits they expect
Determine what the key success factors are in your industry
Rank the key success factors by giving each one a weighting - The sum of all the weightings must add
up to one.
Rate each competitor on each of the key success factors
Multiply each cell in the matrix by the factor weighting.
Competitor profiling
The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals offers a
legitimate source of competitive advantage. The raw material of competitive advantage consists of offering
superior customer value in the firms chosen market. The definitive characteristic of customer value is the
adjective, superior. Profiling facilitates this strategic objective in three important ways. First, profiling can
reveal strategic weaknesses in rivals that the firm may exploit. Second, the proactive stance of competitor
profiling will allow the firm to anticipate the strategic response of their rivals to the firms planned strategies,
the strategies of other competing firms, and changes in the environment. Third, this proactive knowledge will
give the firms strategic agility. Offensive strategy can be implemented more quickly in order to exploit
opportunities and capitalize on strengths. Similarly, defensive strategy can be employed more deftly in order
to counter the threat of rival firms from exploiting the firms own weaknesses.
A common technique is to create detailed profiles on each of your major competitors. These profiles give an
in-depth description of the competitor's background, finances, products, markets, facilities, personnel, and
strategies. This involves:
Background: Location of offices, plants, and online presences, History - key personalities, dates, events, and
trends, Ownership, corporate governance, and organizational structure
Financials: P-E ratios, dividend policy, and profitability, Various financial ratios, liquidity, and cash flow,
Profit growth profile; method of growth (organic or acquisitive)
Products: Products offered, depth and breadth of product line, and product portfolio balance, New products
developed, new product success rate, and R&D strengths, Brands, strength of brand portfolio, brand loyalty
and brand awareness, Patents and licenses, Quality control conformance, Reverse engineering.
Marketing: Segments served, market shares, customer base, growth rate, and customer loyalty, Promotional
mix, promotional budgets, advertising themes, ad agency used, sales force success rate, online, Promotional
strategy, Distribution channels used (direct & indirect), exclusivity agreements, alliances, and geographical
coverage, Pricing, discounts, and allowances
Facilities: Plant capacity, capacity utilization rate, age of plant, plant efficiency, capital investment,
Location, shipping logistics, and product mix by plant
Personnel: Number of employees, key employees, and skill sets, Strength of management, and management
style, Compensation, benefits, and employee morale & retention rates
Corporate and marketing strategies: Objectives, mission statement, growth plans, acquisitions, and
divestitures, Marketing strategies
Business competitors
Businesses exist in a competitive environment. For example, supermarkets are in fierce competition with
each other to provide the best possible value for money goods, and to offer the most suitable range of
products for their customers. Businesses compete in many ways. One of the most obvious ways is over price.
For example, book sellers on the Internet compete to supply the same book at the cheapest price to
customers.
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Direct competitor
Within a market businesses are faced by direct competitors. These are firms that produce the same or
very similar goods e.g. fruit and vegetable sellers on a Saturday market. However, most products are
differentiated in some way. For example, although soap powders may look highly similar each will offer
some form of special ingredient that sets them apart. Indeed, in recent years differentiation in this market has
been increasingly differentiated by the development of dissolvable sachets of liquid, solid tablets and other
forms of detergent.
Learning about your competitors
Read about your competitors. Look for articles or ads in the trade press or mainstream publications.
Read their marketing literature. Check their entries in directories and phone books. If they are an online
business, ask for a trial of their service
Go to exhibitions
At exhibitions and trade fairs check which of your competitors are also exhibiting. Look at their
stands and promotional activities. Note how busy they are and who visits them.
Go online
Look at competitors' websites. Find out how they compare to yours. Check any interactive parts of the
site to see if you could improve on it for your own website. Is the information free of charge? Is it easy to
find? Business websites often give much information that businesses haven't traditionally revealed - from the
history of the company to biographies of the staff. Use a search engine to track down similar products.
Let's look at two new market efforts: geographic expansion and customer expansion.
Geographic Expansion
Geographic expansion is the most common way to enter new markets. (Keep in mind geographic
expansion includes taking your business online, since by definition online sales open you up to as broad a
territory as you choose.) If you decide to expand geographically, start small. Stick to what you know well. If
you run a restaurant in a relatively small town, choose another small town with reasonably similar
demographics, customer profiles, and household incomes. (While this is a simple example, "home-style
cooking" restaurants may be a huge hit in rural areas; they may be much less successful in major cities.) It
may be tempting to transplant a successful market to an area with a massive number of potential customers,
but that strategy can also be risky. By sticking to markets with similar characteristics you limit the risk of the
unknown and make it more likely that you can run your new operation using similar practices and
procedures.
Before you expand:
Make sure you develop guidelines, processes, and service standards so that start-up is easier and all
locations operate in a similar fashion. (Know what works, and then ensure that what works is what is done.)
Consider the impact on administrative tasks and costs. Will you need additional administrative staffing and
resources? What licenses and permits will you need? Is your accounting system set up to handle multiple
locations efficiently? Don't just think of costs in terms of opening the new location; think about the cost
impact on the rest of your business, too. Conduct market research and a competitive analysis in the new
location. Are there differences you will need to adapt to? Can you compete effectively? Can you differentiate
your business from others in the area? Assess the effect on current revenues and profits. Customer
Expansion
Expanding your business does not always require setting up new locations in new areas. Often you
can grow your business by targeting new customer segments in your existing territory. Start by evaluating
current customers. What products or services do they consume and what needs do those products and
services meet? Then think about other customer segments that could enjoy similar benefits. Can you adapt to
meet the needs of different customers? For example, if you provide heating and cooling services for
residential customers, can you offer emergency service?
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Before you expand:

Consider your current operations. Think about why you are successful, (or are not as successful as you
wish). What are the key factors? How can you leverage or adapt to those key factors to service a new
customer base? Consider the profile and demographics of your target customers. How are they different than
current customers? What are their needs? How can you meet those needs? How can you market and advertise
to those customers? Evaluate your competition. Who services those customers today? What are their
strengths and weaknesses? Decide how you will differentiate yourself and compete. Customers need reasons
to switch; make sure you give them those reasons.
Entering new markets: Five forces of competition in Share
The competition is always something that needs to be considered when youre researching potential
new markets for your product or service. And the level of competition within a market can make it easier or
more difficult for you to enter and succeed. You may find that a market is already saturated with products or
services like yours, which can either turn you off of the market or give you the chance to come up with new
creative marketing ideas. Alternately, you may find theres a demand for your product or service that
currently isnt being fulfilled in a market. Regardless, being aware of the competition youre up against will
help you move forward, either into the market or on to different markets.
CONCLUSION
Starting up in business is an exciting challenge. However, it is necessary to have a good idea, a clear
understanding of the new market and financial knowledge and skills to support the business' development.
A detailed new market business plan will help a avoid business failure by: Researching the new market,
Assessing the competition, Predicting revenue and costs accurately , Securing adequate finance.
REFERENCE:
1.http://businesscasestudies.co.uk/barclays/supporting-new-business-startups/conclusion.html#axzz2rZf8VRS9
2. en.wikipedia.org/wiki/market
BOOK:
1. Global marketing management-Warren J.Keegan
2. Marketing management- Philip kottler

IMPACT OF BUSINESS STRATEGY IN E-BUSINESS

Ms. K. Divya, MBA Student, Nadar Saraswathi College of Arts and Science. Theni

Abstract This paper describes the application of electronic business (e-business) in the regulation of
key in global level , as one of the e-government services In addition to the development of the
information society of India may be defined as the use of information and communication technologies
(ICT) within the enterprise activities generating business. E-Business constitutes the exchange of
products and services between businesses, groups and individuals and is seen as one of the essential
activities of any business. E-business methods enable companies to push integration of their internal
and external data processing systems to obtain more flexible performance, to work more closely with
suppliers and partners, and to better satisfy the needs and expectations of their customers and for
effective and efficient management of their internal functions
INTRODUCTION
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 E-Business is the term used to describe the information system and application that support and drive
process most of the using web technologies.
E-BUSINESS allows companies to companies to link their internal and external process more
efficiently and work more closely with suppliers and partners to better satisfy the needs and
expectations of their customers leading to improvements in overall business performance.
E-BUSINESS PROCESS
Selling process and are completed when agreement or reached between the buyer and seller to
transfer the ownership or right to used goods or services completed transaction may has a zero price.
The e-business used to give a payment and payment processing and other electronic links with suppliers as
well as production control and process more directly related to the production process
PROFIT LEVEL OF E-BUSINESS
Employees -1,09,800
Net income- 39 million
Total asset 32.555
Total profit 8.19 billion
E-business mainly used by some countries : USA, Asia, Western-Europe, Eastern-Europe, Africa,
Middle-East
ONLINE BUSINESS: Online goods and services, Books , Pharmacy, Ticket, Flower delivery, Foods and
services
IMPACT OF E-BUSINESS:
Government, international, organization and the private sector are encourage to promote the benefit of
international trade and the use of e-business and promote the use of e-business models in developing
countries and its stimulate private sector investment faster new applications content development and
public/private partnership.
E-business stimulates economic growth and job creation as an element of strategy for poverty
reduction through this E-business.
USES OF E-BUSINESS:
Its increasing the relationship in social level.
Exchanging or buying and selling of commodities.
Interchange of ideas, opinions and sentiment
Transportation from place to place
Recruiting new employees
IMPORTANCE OF E-BUSINESS
E-business is concerned with the growth and development of new existing business in the direction
of more electronically mediated enterprises.
E-business is important because use of the internet has become such a common place resource for
most people the internet has become a more convenient way of making everyday purchase this benefit
not only the customer but business as well as business are able to reach a huge audience and
consumer base purely though E-business
Its used to sharing transaction information electronically with their successful implementation of Ebusiness and measuring the value of customer.
Indians vs Chines
Indians prefer email and surfing to online shopping, being generally reluctant to use credit cards.
Chinese users are predominantly young (18-30) and with high school education: their preferred use
of the Internet is:
COMPARISION
Differences in government initiatives, infrastructure, business experience and culture intervene to make ebusiness vary with the country concerned. China with India offers an instructive comparison, the world's
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largest communist country with the world's largest democracy. Both have large and growing Internet
populations. Both face immense problems of poverty, and inequalities between urban and rural Internet
access
Internet
Country
Population (millions)
Penetratio GNI Per Capita
n
USA

313

78.2%

$47,020

India

1,189

8.4%

$3,560

China

1,338

36.3%

$7,570

Business in both China and India is traditionally much more person-to-person than in the west, and
additionally suffers from mass poverty, illiteracy, and (in India particularly) endemic corruption.
Chinese cultural characteristics that influence IT adoption include a preference not to live in debt, a
desire to touch and feel articles before buying them, a fear of a disappointing shopping experience,
security issues with providing credit or debit card numbers to strangers, and an ineffective distribution
system where purchased items can be delayed or lost in transit.
CONCLUSION
E-business is a successful business and its helping for make successful new future, this business is
represents a completely new and profitable way to do business, here companies may increase their
profits further and users may find the desired product or service easily without the hassle of shopping
around.
REFERENCES:
Websites:
http://www.quora.com
http://www.ehow.com
E-business:http://faq.bloglins.com|refs

IMPACT OF BUSINESS STRATEGY IN E-BUSINESS

Ms. N.Suganya, MBA Student Nadar Saraswathi College Of Arts & Science, Theni.

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ABSTRACT: Although electronic business (e-business) is often associated with the World Wide Web,
this is only one aspect of the subject. In fact e-business technologies cover a wide range of technologies
and applications. E-business technologies are a collection of technologies that make use of the Internet.
They include web sites, browsers, electronic procurement software, desk-top video conferencing tools,
intelligent database search engines, computer supported co-operative working packages, and many
other technologies, as well as the web-enabling of more traditional and familiar software such as
Enterprise Resource Planning (ERP) Systems. The Internet itself is just a collection of computers
networked together using public telephone lines, leased lines and other equipment (for example,
routers that direct packets of information to their destination).
INTRODUCTION:
Introduction to e-business and its enabling technologies including email, EDI, EFT, bar-coding,
electronic catalogues, smart cards and CALS. Associated electronic processes and systems including on-line
business, the Internet and World Wide Web (WWW). Other issues include international standards, ethics,
privacy, accounting, legal and security issues; the impact on the workplace; corporate, national and global
information infrastructures; aligning information technology to business strategy; electronic marketing
worldwide; internationalization , government policies, strategies and leadership.
The e-Business Challenge
In todays business climate, e-Business can have an impact on every facet of the organization,
including processes, applications, staffing, infrastructure, relationships, sales, and sales channels. Not only is
e- Business transforming companies and industries, its doing so at an accelerating rate. Business cycles that
use to be measured in years are now measured in days. Competition in the future, even today in certain
industries, will not be company against company but supply chain against supply chain. Companies will be
only as strong as the weakest link in their supply chain. The winners will be companies that can build up, or
tear down, electronic B2B relationships rapidly and seamlessly.
As part of this transformation, enterprise borders are starting to disappear. E-Business is all about
providing open access to infrastructure services, data, and applications. Partners, suppliers, customers and, in
some cases, even your competition (or co-operation) will be able to peer into your corporate nervous system.
Hopefully, all of this will be for the better. But, if not handled correctly, sometimes it may be for the
worse. Customer expectations are rising mercilessly in terms of the speed and reliability they expect from
your e-Business applications. Studies show that Web customers will wait only eight seconds for a page view,
even if they are on a slow connection that you have no control over. Not only are your external customers
expectations rising but so are the expectations of your internal customers. They cant watch the news or read
an airline magazine without being reminded about what is possible in e-Business.
1. Gaining and Maintaining Commitment from Management
It's hard to justify the implementation of new technologies that haven't proven their value, and it's
equally difficult to quantify some of the benefits of business process automation in real dollars and cents. If
your company is in the middle market (with revenues between $50 and $500 million), your management may
be particularly difficult to convince - as middle-market companies tend not to be early adopters.
2. Maintaining IT Resources
The Year 2000 has absorbed a large segment of the IT resource pool, and this draw should continue
through the year 2001. Legacy-system changes also continue to tie up IT resources, and as new enterprise
resource planning (ERP) packages replace legacy systems, many resources are being dedicated to that
segment of IT as well. Despite their scarcity, IT resources are essential to the automation of external business
processes. In particular, you face the challenge of maintaining human resources. The key is to provide a
forward-thinking work environment. Most IT professionals enjoy being "re-tooled" to keep up with the
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market. Of course, competitive salaries and deferred benefits are also important long-term considerations that
play a major role in retaining employees. In brief, don't sit back and watch them, or someone will steal them
away.
3. Determining E-Business Applications
Selecting the right applications is important as you automate internal and external procedures. Which
of your internal processes or transaction exchanges should you automate, and in what priority? Before you
decide how to arrange your business operations, ask yourself:
What information is exchanged among departments or divisions?
Is the information available through other sources?
How is the information documented?
What transactions are exchanged with customers and suppliers?
What are the transaction volumes?
How many copies are produced?
How are copies routed?
With your answers, you can focus your efforts on the areas that
are the most paper and labor intensive
require excessive manual processing
will be most accelerated by workflow automation
4. Integrating Internet Technologies and Existing Business Processes
Many IT executives feel they must find a place for Internet technologies in their businesses as soon
as possible. They should focus instead on the business requirements and opportunities that exist for them and
their trading partners. Once these parameters are identified, it's easier to determine how Internet technologies
can help automate and streamline related business activities. Remember: Just because a technology is "hot"
doesn't mean you should use it.
5. Multiple Systems Support
Multiple systems support has been a challenge since the early electronic data interchange (EDI) days,
and it continues as such with e-business applications. All trading partners simply won't be able (or willing) to
use a new automated system. Furthermore, not every aspect of a business process may be fully automated at
once. For example, a company may offer an online catalogue for selection and ordering but continue to print
and mail invoices.The customers and suppliers must be allowed to continue to use their existing systems for a
reasonable period of time. Support (financial and otherwise) of your trading partners can help expedite their
use of newer systems. In the meantime, maintaining multiple systems is a cumbersome but necessary cost of
doing business.
6. Security
Security concerns related to e-business are twofold. First, there is the threat of outsider access to
business documents exchanged over the Internet, a value-added network (VAN), or a direct communications
link. The other concern, which is relatively new, involves the vulnerability of internal systems.Most
organizations offer some type of outside access to internal systems. Even if you have no direct link to an ISP,
outsiders can intrude if an employee dials out and surfs the Net. To address security concerns, many
businesses install firewall technologies, define use policies, and tighten employee access to outside lines and
networks.
7. Change Management
E-business redefines rules, recasts careers, and sometimes eliminates entire business procedures.
This means you should educate personnel - from data-entry clerks to executives - to anticipate and embrace
changes. Consider forming a cross-company task force to lead and participate in all your e- business planning
and activities. Also, make sure you have an e-business champion at the executive level to support your cause.
8. Outsourcing EDI and E-Commerce Operations
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In the last year, there's been a lot of hype about outsourcing e-business operations. In reality,
however, there isn't a lot of outsourcing going on yet. Many companies consider outsourcing their e-business
efforts in response to internal resource constraints. Indeed, outsourcing can relieve you of having to manage
an entirely different line of business. It seems most appropriate for companies whose automated operations
consume so much effort that they potentially detract from the management of the core business.
9. Rollout
Before you implement your e-business solution, you should have a solid rollout plan that include
a list of trading partners who are at least fairly committed to using the system
a strategy to advertise the new environment
a budgetary schedule for trading-partner assistance
a system for gathering and responding to feedback from your users
Many smaller customers and suppliers may not have sufficient budgets and other resources to participate
right away. You may want to offer special incentives (such as discounts or special payment terms) to trading
partners who commit to joining your network.
10. Legal Considerations
When you roll out your e-business system, you have so much else to consider that it's easy to simply
forget your legal rights and liabilities. Bear in mind that there are few e-business legal precedents, and only a
few states have defined any e-commerce rules. This leaves much open to interpretation in the future.
Your best approach to potential legal issues is to work collaboratively with your trading partners to
define the new rules of conducting business. Once you've hammered out an agreement, put it in writing. As
new transactions appear online and user access rights are modified, occasional adjustments to your legal
policies will be necessary.
CONCLUSION
E-business does not only include the buying and selling of goods and services, but also servicing
customers, collaborating with business partners, and conducting electronic transactions within an
organization. Organizations need to be absolutely clear on their E-business project objectives. The worldwide
business goal is creating a connection, implementing tangible solutions and helping the company to come up
with an actionable plan to success. Also, companies have to deal with the benefits and limitations of ebusiness. An e-business organization interacts with employees, customers, suppliers and business partners
using Internet based technologies, improving its performance. The benefits of e-business will affect
organizations, consumers, and society. The limitations of e-business can be classified as technological and
non-technological. Despite these limitations, e-business is expanding rapidly.
Reference:
www.academia.edu/.../The_Impact_of_Electronic_Business_on_the_Org..
www.researchgate.net/...e-business_strategy...impact.../9fcfd50d1cf3bbd...
Book:
Modern Marketing R.S.N. Pillai Bagavathi

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FISCAL DEFICIT - REASONS AND RECOVERY STEPS

Ms. R.Vennila, MBA Student Nadar Saraswathi College of Arts and Science, Theni.

ABSTRACT: My topic is fiscal deficit reasons and recovery steps. In this topic I am including what is
fiscal deficit the government have to spend the revenue for development our country. Then I give the
reasons for fiscal deficit and recovery steps. The fiscal deficit leads to the inflation of our country.
Then I include why the rupee crossed 65 against dollar. Last I conclude my topic.
INTRODUCTION
In economics and political science, fiscal policy is the use of government revenue collection
(taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy
are changes in the level and composition of taxation and government spending in various sectors. A deficit is
the amount by which a sum falls short of some reference amount. Fiscal deficit is an economic phenomenon,
where the Government's total expenditure surpasses the revenue generated. It is the difference between the
government's total receipts (excluding borrowing) and total expenditure. Fiscal deficit gives the signal to the
government about the total borrowing requirements from all sources. Components of fiscal deficit. The
primary component of fiscal deficit includes revenue deficit and capital expenditure.
Revenue deficit: It
is an economic phenomenon, where the net amount received fails to meet the predicted net amount to be
received. Capital expenditure: It is the fund used by an establishment to produce physical assets like property,
equipments or industrial buildings. Capital expenditure is made by the establishment to consistently maintain
the operational activities. In India, the fiscal deficit is financed by obtaining funds from Reserve Bank of
India, called deficit financing. The fiscal deficit is also financed by obtaining funds from the money market
(primarily from banks). Fiscal deficit lead to inflation.
REASONS FOR FISCAL DEFICIT: Rupee weakness, GDP growth, Current account deficit, Foreign
reserves, Short term debt, FII investment, Elections
FISCAL DEFICIT FOR 2013-2014
In 2013-14 fiscal deficits below 4.8%: India will limit the fiscal deficit for 2013-14 to below
4.8 percent of gross domestic product, finance minister P Chidambaram said on Wednesday. In 2013-14 fiscal
deficits below 4.8%: Money control Bureau India will limit the fiscal deficit for 2013-14 to below 4.8 percent
of gross domestic product, finance minister P Chidambaram said on Wednesday. Speaking at the India
Summit conference organized by The Economist magazine in New Delhi, Chidambaram said the fiscal
deficit target is a red line that would never, never be breached. The fiscal deficit for 2012-13 is expected to be
at around 5 percent of gross domestic product, government sources said earlier this month. Right now, he
said, the current account deficit (CAD) situation is more worrying than fiscal deficit. The minister expects
CAD to be below 5 percent in 2012-13. The growth projections in the world economy, it may be difficult to
dramatically increase exports and India may have to look at ways to restrain imports.However, he dismissed
fears about Indias deficit being mainly financed by short-term volatile foreign institutional investor inflows.
Chidambaram said foreign institutional investments in India have always seen a growth except for one year
after the global financial crisis. The FIIs have invested about USD 11 billion into India year-to-date, he
highlighted. He expects Indias growth to be better than most of its BRICS peers. Committing to carry
forward the economic reforms programme in the remaining term of UPA-II, Finance Minister P
Chidambaram today said the government will take more executive actions in the next two to four months and
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sought cooperation of the main opposition party to push through important bills in Parliament. Ruling out
early elections, the Minister said the government would last for 13 months more and would continue to take
small but significant steps to ensure that the country achieves its potential growth rate of 8 per cent. "There is
much more to be done. The remaining bills have to be passed. There are many more executive actions that
have to be taken... some of these are executive actions which we will take in the next 2-4 months," the FM
said. The minister sought cooperation of the Opposition party to ensure passage of the land, insurance and
Goods and Services Tax (GST) bills in Parliament, saying the economic issues should be dealt in a bipartisan
manner. There is a 70 percent chance of the GST being rolled out in the remaining 13 months of the Congress
party-led United Progressive Alliance governments tenure, he said. "We will continue to take small
significant steps. We will also take forward some big ideas. India's economy will continue to reform,
RECOVERY STEPS
Reduce current expenditure by 7 billion by 2014, bringing spending back to 2007 levels.
Reduce the cost of the public sector pay and pensions bill, social welfare, and public service
programmes.
Achieve savings in social welfare expenditure of 2.8 billion by 2014 through a combination of
enhanced control measures, labour activation, structural reform measures, a fall in the Live
Register, and, if necessary, further rate reductions.
Cut public service staff numbers by 24,750 over 2008 levels, back to levels last seen in 2005.
Reduce the public sector pay bill by about 1.2 billion between 2010 and 2014.
Make more effective use of staffing resources with redeployment of staff within and across sectors
of the public service to meet priority needs.
Reform work practices to provide more efficient public services with scarcer resources.
Introduce a reformed pension scheme for new entrants to the public service and reduce their pay by
10%.
Introduce a pension deduction for public service pensioners to yield 100 million in savings.
Reduce non-pay and non-social welfare spending by 3 billion over the period.
Increase the student contribution to the costs of third level education.
Reform and update the existing budget system beginning in Budget 2011.
CONCLUSION
Now a days these are the reasons are making the fiscal deficit and the government take these
steps means they have to recovery the problems. Our economy is beginning to recover. There will be a small
increase in GDP this year. Given the 7.6% decline recorded in 2009 that in itself is remarkable. The impact of
our improved competitiveness can already be seen in our healthy export figures. Both our foreign owned and
indigenous exporting companies have been extremely resilient throughout the downturn. Even in the difficult
trading circumstances of this year, they have increased their market share.
REFERENCES
www.investopedia.com
www.profit.ndtv.com/news/forex/article-7
www.livemint.com

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CHALLENGES IN IMPLEMENTATION OF TECHNOLOGY IN BUSINESS

Mrs. A.Nandhini, MBA, Nadar Saraswathi College of Arts and Science, Theni.

ABSTRACT: Technology offers the potential to change the process of business to support alternative
ways of working. An efficient business offer substantial improvements in productivity and in customer
satisfaction by making available online, real-time information networked around the organization,
giving full visibility. Thus, information is shared within and between the organization and decisions are
made on the basis of this shared information. The technology needed to promote and support change,
be it large or small, strategic or operational, if used appropriately offers the chance to improve
business, in turn, leading to increased productivity and profitability. However, despite the benefits
associated with it, implementation of this technology is not always easy. The present study has been
undertaken to understand the challenges faced in implementing technology in business. The study was
conducted using the analyzing method.
INTRODUCTION
Businesses have been at the forefront of technology for ages. Whatever can speed production will
draw in more business? As computers emerged in the 20th century, they promised a new age of information
technology. But in order to reap the benefits, businesses needed to adapt and change their infrastructure. For
example, American Airlines started using a computerized flight booking system, and Bank of America took
on an automated check-processing system. Introducing technological change into an organization presents a
different set of challenges to management than does the work of competent project administration.
Frequently, however, the managers responsible for shepherding a technical innovation into routine use are
much better equipped by education and experience to guide that innovations development than to manage its
implementation. The challenges managers must overcome if companies are to absorb new technologies
efficiently. We also suggest strategies managers can use to address these difficulties. Although the examples
we cite are all computer related and come from the experience of large manufacturers, the issues raised and
strategies proposed apply every bit as well to small businesses, to service operationsin fact, to any
organization where technological innovation flourishes.
TECHNOLOGY IMPLEMENTATION
Whether a company is just starting up with the latest technology or is well established and undergoing
a technological renovation, the success or failure of organizational change falls squarely on the planning and
implementation processes. Effective management during the planning process is needed to ensure that a solid
foundation, for initial or coming changes, is laid. The structural soundness of the planning and
implementation processes is dependent upon open communication. With these constructs in mind, an
examination of how new technology systems should be introduced into a company or organization can be
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carried out. The resistance to change and the effects change has on organizational culture shapes how
information is shared, and with whom. In terms of project, implementation, and training plans the inclusion
or exclusion of technical and nontechnical staff must be considered. The same is true for the eventual
establishment of support strategies.
A Dual Role
Those who manage technological change must often serve as both technical developers and
implementers. As a rule, one organization develops the technology and then hands it off to users, who are less
technically skilled but quite knowledgeable about their own areas of application. In practice, however, the
user organization is often not willingor ableto take on responsibility for the technology at the point in its
evolution at which the development group wants to hand it over. The person responsible for implementation
whether located in the developing organization, the user organization, or in some intermediary position
has to design the hand-off so that it is almost invisible. That is, before the baton changes hands, the runners
should have been running in parallel for a long time. The implementation manager has to integrate the
perspectives and the needs of both developers and users.
Perhaps the easiest way to accomplish this task is to think of implementation as an internal marketing,
not selling, job. This distinction is important because selling starts with a finished product; marketing, with
research on user needs and preferences. Marketing executives worry about how to position their product in
relation to all competitive products and are concerned with distribution channels and the infrastructure
needed to support product use.
Adoption of a marketing perspective encourages implementation managers to seek user involvement
in the: (1) early identification and enhancement of the fit between a product and user needs, (2) preparation
of the user organization to receive the innovation, and (3) shifting of ownership of the innovation to users.
THE CHANGE CHALLENGE
The change challenge that faces IT and other departments when new technology initiatives are
introduced is to engage the staff most impacted, exactly those who often feel quite threatened by these kinds
of initiatives. They have these emotional reactions because they often have insufficient information about the
scope of the change, the training implications, and the potential impact on role changes. The information
vacuum is often filled with rumours instead of integrating and engaging all employees with the technology
and business process improvement activities.
Some examples of how this could be addressed are presented below:
The engagement of all staff in a visioning process that encourages their participation in,
understanding of, and contribution to future goals
The creation of internal change agent groups who facilitate the communication process between
staff and management
The encouragement of the development of more participative leadership practices in traditionally
hierarchically structured organizations
The importance of managing organizational change effectively has compelled a growing number of
organizations to incorporate the discipline into major initiatives of all sorts, from the introduction of IT
software packages to business process and organizational structure changes. The contribution of effective
change management/leadership to the achievement of positive results cannot be ignored. For example,
Statistics Canada has reported that Canadian firms have achieved performance improvements of 46 percent
for process innovation, 32 percent for product innovation and 25 percent for productivity improvement, when
combining high usage of innovative Human Resource Management (HRM) practices with high usage of
information and communication technologies (ICT), in change initiatives. When firms do not include, or use
only low levels of HRM practices, and only rely on high ICT for benefits, the resulting productivity
improvements were noticeably smaller: 24 percent for process innovation, 14 percent for product innovation
and 9 percent for productivity improvement1. These findings have served to reinforce the importance of
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engaging employees in any IT initiative, establishing alignment through an industry best-practice change
process, establishing a common vision for the end-state, and to maximizing the benefits derived.
Using Technology to Stay Competitive
As a business owner, it is vital that you understand and use advanced technologies. Technology can
help increase business efficiency and even expand operations.
Accounting software
This is important, even if you have your own accountant or bookkeeper. Accounting software allows
you to see your profits and losses at a glance. It can also help you design and maintain a budget for your
business.
Planning software or tools
A calendar system is a must. There are many online planning systems that can be utilized to help you keep
your calendar organized. Find a system that meets your business' needs and be sure to stick with it.
Time tracking software
A time tracking device will help you determine what tasks result in a profit and what tasks do not.
This will help you determine what tasks can be eliminated, outsourced, or improved. If youre looking at
software that requires a fee, ask for a free trial first to make sure its the right software for you.

Email management
As a business owner, you probably use several email accounts to manage the various aspects of your
company. If you streamline these emails to one account, you'll be able to stay organized and abreast of your
emails.
Mobile internet access
Access to the internet on your mobile device will not only make your life easier, it will also help you
maintain a positive reputation for your business. For example, if you are able to follow up with a client by
email immediately after a meeting, you will be showing that you are accessible, timely and professional.
Once you decide which types of technology are right for you and your business, you'll be on your way to
being more organized and efficient than ever.The strategic challenges facing Apple Computer. The fast pace
of technological change and competition are the challenges that Apple Computer is facing. Its strategic
moves into communication devices and portable devices for downloading music and movies the company is
in stiff competition from all venues. With no entry barrier in this business Apple has competitors, with lower
priced imitation products which will threaten to lessen the value of Apple products and its strategy success.
CONCLUSION
Now days, technological implementation is necessary. Because it is used to satisfying their customers
in business. In that case the business facing the various challenges in technological implementation. That
should be overcome by the business through the predict action for succession their implementation of
technology. The business must analyze about the various technology for expanding their business through
technology.

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CHALLENGES TO MEET GLOBAL CUSTOMER RELATIONSHIP MANAGEMENT

Ms. K. Malathi, MBA Student, Nadar Saraswathi College Of Arts& Science, Theni.

ABSTRACT: Over the past few decades, cross-border business has experienced unparalleled growth.
This growth is due to advances in communication and information technologies, privatization and
deregulation in emerging economies, and emergence of the global consumer. As the era of globalization
continues to manifest through the emergence of global companies, the importance of customer
relationship management (CRM) in these companies has become increasingly significant. Global CRM
(GCRM) is the strategic application of the processes and practices of CRM by firms operating in
multiple countries or by firms serving customers who span multiple countries, which incorporates
relevant differences in business practices, competition, regulatory characteristics, country
characteristics, and consumer characteristics to CRM strategies to maximize customer value across the
global customer portfolio of the firm. In this article, the authors present an overview of the GCRM
environment and the challenges in formulation and implementation of CRM across national
boundaries as a source of sustained advantage. The authors also provide a conceptual framework for
GCRM and recommendations for future research in Global CRM.
INTRODUCTION
Understanding Customer Relationship Management will help you get the most from your Sugar
implementation. Relationship Management (CRM) is a set of technology-enabled business processes that
enable you to create more consistent and profitable interactions with your customers. Most companies engage
in some form of customer relationship management. When a company builds a customer list, assigns
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opportunities to sales representatives, or handles customer support cases, they are undertaking CRM-related
activities.CRM applications standardize, automate, and share these activities across organizations to improve
how companies interact with their customers.
Growth Drivers of Indian Luxury Car Market
Youngest Population
India has the youngest population in the world. India has worlds 17% (765 million) of working
population (17-64 years) as per a Morgan Stanley report. The philosophy of this younger population is quiet
different than others. Demand for young engineers, MBAs, CAs, and doctors is greater than ever as Indian, as
well as MNCs, are expanding like never before. They want to work & enjoy. A substantial part of their
income goes into leisure activities like dining out, travelling, owning latest gadgets, cars, and so forth. This
has caused the demand for these kind of products & services to soar. Average age of luxury car buyers has
constantly been decreasing. In case of BMW it has come down to just 40 years. Figure 1 gives a clear picture
of this phenomenon.
Easy Financing
Getting a car financed in India is very easy if one has got positive credentials in terms of income.
Interest rates are very competitive due to a large number of private & public sector banks. Banks are ready,
more than they ever to fund. As much as 95% of the showroom price of the vehicle is being funded by many
banks. Manufacturers have corporate tie-ups with banks for smooth & easy financing. This has positively
contributed to the growth of Indian automobile industry & luxury car market for that matter.
High Disposable Income
Now days Indians are saving less & spending more. Their disposable income has increased as a result
of their changed life style which demands a living which is high class. An EMI of Rs. 40000 for a family of
two, with both of them working & earning Rs. 70,000, is an easy task. People are keener now a days to
experience life style commodities and their rising income levels are helping them in it.
Rising Number of Millionaires
Growth of Indian economy has been faster than other emerging economies during recent times.
Globally, India had the highest growth-rate (22.7%) of millionaire population during the year 2007 (see Figure
2). India added 23,000 millionaires from 2006 to 2007, taking total figure to around 123,000 millionaires;
wealth as measured in US Dollars (Merrill Lynch Cap Gemini Report).
CRM Challenges
CRM strategies and implementation can deliver great benefits - but only if companies do it
right.Customer centricity is the key to success in any business today. Building lasting customer relationships
is a strategic advantage. While these facts seem simple, businesses around the world have struggled with
them. The key element of this crisis is the need to get a 360 degree view of customers, leading to massive
investments in CRM solutions. If done right, these investments can help businesses increase their sales
effectiveness, drive customer satisfaction, streamline business processes, identify & resolve bottlenecks; all
contributing directly to increased bottom line revenues.In 2003, CRM was the single most popular business
initiative for companies around the world. This trend continued in 2004. Today, three out of every four
companies is using, implementing or planning a CRM Solution. The question therefore is not whether to do
CRM or not, but how to do it right.
Key CRM Challenges
Companies around the world have leveraged CRM strategies to gain competitive advantage. As
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more and more companies rush to implement CRM, precautions must be taken to do it right. It is
approximated that 50-70% CRM implementations fail, depending on the Industry vertical - it is essential to
identify the key challenges, address risks and build a strategy that can make your CRM successful. CRM talks
about strategy, but at the end of the day, someone has to lead the way and implement it. Listed below are some
practical tips to consider when building effective CRM strategies and implementation plans?
1. What is CRM?
CRM is not software - it's a business philosophy. It is a strategy, implemented by an organization using a
software solution, that typically covers all customer facing departments like sales, marketing, customer
service, etc. "CRM" is a term, collectively used to refer to a combination of strategy & software.
2. Getting Clarity on Objectives
What are the set of objectives the company wishes to achieve with CRM? Trivial as it may sound, a
majority of implementations don't have these goals spelled out. Ensure that these objectives are listed and
define a measurement metrics to be used to assess the success of the implementation. Without these,
companies can't calculate the benefits or ROI from the CRM system.
3. No Core CRM Team
Unlike other software implementations, IT teams alone should not be expected to roll out a CRM system.
It is very critical for companies to form a core CRM team, which in addition to IT draws participation from
the top management plus senior executives of Sales, Marketing and Customer Service departments and
subsequently the end-users. Decisions related to the implementation should be discussed in this forum.
4. The Costing Iceberg
It is not unusual for CRM implementations to overrun costs and timelines. When assessing the costing,
always calculate the Total Cost of Ownership (TCO). There are two ways of implementing CRM - the license
model or the ASP (hosted) model. In the former model, licenses typically represent 9 - 18% of the TCO. The
actual TCO will need to include the cost of hardware, software, engineering, operations, AMCs, etc. On the
other hand, in the ASP model, a subscription fee represents the true TCO. Since, ASP models offer a fully
managed and a continuously evolving system, it also saves implementation time, upgrade costs and ownership
hassles. Any implementation delay also has a cost associated with it, in the form of lost time and
opportunities.
Hidden 'Total Cost of Ownership' (TCO))
5. Achieving User Adoption
User Adoption is the key to success for any CRM. It is important to design effective training
programs in order to provide an understanding to end-users for them to be able to effectively use the system.
Ensure that the user interface is kept simple. Consultants often underestimate or miss the motivation required
to get the end-users to start using the system. Consider the sales executives, their motivation is to meet their
targets to get large incentive cherubs. They are happiest when selling; to them everything else is a waste of
time. Don't expect them to navigate complex screens or enter detailed time-consuming forms, because it
simply won't fly.
6. Managing the Application
Once the CRM has been rolled-out, it is important to re-align the working culture of teams around it. At
times, the "as-is" bug bites people. To illustrate, the VP sales directs his sales team to carry excel sheet printouts of their pipeline when coming for a review. Here, either the report was not configured well in the system,
or users have not been updating it enough. Such scenarios need immediate correction or else the CRM system
will slowly lose its relevance. The core team must review such anomalies from time-to-time.
7. Process, Process, Process
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Clearly defined processes and their enforcement are critical to the success of any CRM rollout. The
objective is to cut out the ambiguity in the system. It is advisable to create a central depositary, accessible to
all, which stores all process definitions. Some key processes that need to be defined are the Change
Management process, Feature Re-evaluation process, Success Evaluation process, Business Flows, etc. Any
process implemented via the CRM solution, must map your real-world process and vice-versa.
8. Finding the Right Partner
The results of CRM success go up considerably with the right solution partner. While strategy
consultants are good, it is the solution partner who will make it work. Ideally, select a partner who can do both
- strategy & implementation. It is important that your partner shares the risks of your implementation. Pay
only for success. While global knowledgebase are impressive, local issues can often negate these learning.
Work with a vendor who understands local work cultures, technology limitations, cultural sensitivities and is
willing to listen.
New Challenges: Social CRM and Social Media
Social CRM and social media bring their own challenges. For starters, few companies have established
a policy clearly describing employees' interactions with customers/prospects within a social community. For
our hotel customer, social media policy is important, since they have a 2012 goal to open a two-way dialogue
with key customers. Capturing and leveraging social insight are essential to achieve this goal. This customer
is challenged by knowing how best to capture relevant social insights while adhering to differing local data
security laws, since it is hard to restrict what a customer might say in an open social community. As we
emerge from the recent global downturn, more companies are turning to international markets to expand sales.
While this presents a potential boom, the increasing need to ensure a great customer experience at each touch
point demands that well-thought-out global CRM processes and technology lead the way.
Conclusion
In today's world, CRM can bring numerous advantages to an organization. Though, the model is not
entirely without risks, with a well-planned strategy and implementation framework companies can implement
CRM successfully resulting in better productivity and customer satisfaction.
REFERENCE:
http://www.sap.com
http://www.businessballs.com
Book:
Customer relationship management-Alok kumar

IMPACT OF BUSINESS STRATEGY IN E-BUSINESS

Ms. K.Gayathri, II-MBA Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT While e-business is often mixed with electronic commerce they are completely different
concepts. E-business encompasses e-commerce as well as many other applications. There are more
benefits to be derived frame-business than from e-commerce. Electronic business (e-business) is
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revolutionizing the way of communication between internal and external stakeholders within an
organization. Connecting numerous information systems and integrating data streams can
significantly increase the operational efficiency of the firm. E-business can lead to competitive
advantage as well as profitability.
INTRODUCTION:
E-Business strategy is not just for Internet Businesses. An e-business strategy is essential to any organization
conducting business over the Internet. It defines both your short-term and long-term e-business goals and
involves careful and skilled planning.
E-Business strategy is part of your corporate strategy and business plan, and also interconnects with other
plans including your marketing, organizational and IT strategic plans.
E-Business includes e-commerce and a whole lot more, such as intranets and portal sites containing
information for clients. It enables business through IT and the Internet, and is an intrinsic part of business.
E-business allows for the extended organization to be connected. This means that all employees, customers,
clients, suppliers, and other stakeholders, regardless of geographic region, are interconnected.
Electronic business methods enable companies to link their internal and external data processing systems
more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs
and expectations of their customers. In practice, e-business is more than just e-commerce. While e-business
refers to a more strategic focus with an emphasis on the functions that occur using electronic capabilities, ecommerce is a subset of an overall e-business strategy.
The e-Business Challenge
In todays business climate, e-Business can have an impact on every facet of the organization, including
processes, applications, staffing, infrastructure, relationships, sales, and sales channels. Not only is
e- Business transforming companies and industries, its doing so at an accelerating rate. Business cycles that
use to be measured in years are now measured in days. Competition in the future, even today in certain
industries, will not be company against company but supply chain against supply chain. Companies will be
only as strong as the weakest link in their supply chain. The winners will be companies that can build up, or
tear down, electronic B2B relationships rapidly and seamlessly.
As part of this transformation, enterprise borders are starting to disappear. E-Business is all about providing
open access to infrastructure services, data, and applications. Partners, suppliers, customers and, in some
cases, even your competition (or co-petition) will be able to peer into your corporate nervous system.
Hopefully, all of this will be for the better. But, if not handled correctly, sometimes it may be for the
worse. Customer expectations are rising mercilessly in terms of the speed and reliability they expect from
your e-Business applications. Studies show that Web customers will wait only eight seconds for a page view,
even if they are on a slow connection that you have no control over. Not only are your external customers
expectations rising but so are the expectations of your internal customers. They cant watch the news or read
an airline magazine without being reminded about what is possible in e-Business.
As a result, they are clamoring for the functionality that e-Business provides, asking you to take the business
from brick-and-mortar to click and- mortar. And application developers may be pushing to develop online
systems that involve users outside your organization, and that connect to the external systems of your
business partners.
Gaining and Maintaining Commitment from Management
It's hard to justify the implementation of new technologies that haven't proven their value, and it's equally
difficult to quantify some of the benefits of business process automation in real dollars and cents. If your
company is in the middle market (with revenues between $50 and $500 million), your management may be
particularly difficult to convince - as middle-market companies tend not to be early adopters.
Maintaining IT Resources
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The Year 2000 has absorbed a large segment of the IT resource pool, and this draw should continue through
the year 2001. Legacy-system changes also continue to tie up IT resources, and as new enterprise resource
planning (ERP) packages replace legacy systems, many resources are being dedicated to that segment of IT
as well. Despite their scarcity, IT resources are essential to the automation of external business processes. In
particular, you face the challenge of maintaining human resources. How do you retain your staff as
competitors offer them 25 to 50 percent salary increases? How do you keep your employees challenged and
interested in their work while managing a tight training budget?
The key is to provide a forward-thinking work environment. Most IT professionals enjoy being "re-tooled" to
keep up with the market. Of course, competitive salaries and deferred benefits are also important long-term
considerations that play a major role in retaining employees.
Determining E-Business Applications
Selecting the right applications is important as you automate internal and external procedures. Which of your
internal processes or transaction exchanges should you automate, and in what priority? Before you decide
how to arrange your business operations, ask yourself:
What information is exchanged among departments or divisions?
Is the information available through other sources?
How is the information documented?
What transactions are exchanged with customers and suppliers?
What are the transaction volumes?
How many copies are produced?
How are copies routed?
With your answers, you can focus your efforts on the areas that
are the most paper and labor intensive
require excessive manual processing
will be most accelerated by workflow automation
Integrating Internet Technologies and Existing Business Processes
Many IT executives feel they must find a place for Internet technologies in their businesses as soon as
possible. They should focus instead on the business requirements and opportunities that exist for them and
their trading partners. Once these parameters are identified, it's easier to determine how Internet technologies
can help automate and streamline related business activities. Remember: Just because a technology is "hot"
doesn't mean you should use it.
Multiple Systems Support
Multiple systems support has been a challenge since the early electronic data interchange (EDI) days,
and it continues as such with e-business applications. All trading partners simply won't be able (or willing) to
use a new automated system. Furthermore, not every aspect of a business process may be fully automated at
once. For example, a company may offer an online catalog for selection and ordering but continue to print
and mail invoices.
Security: Security concerns related to e-business are twofold. First, there is the threat of outsider access to
business documents exchanged over the Internet, a value-added network (VAN), or a direct communications
link. The other concern, which is relatively new, involves the vulnerability of internal systems.
Most organizations offer some type of outside access to internal systems. Even if you have no direct link to
an ISP, outsiders can intrude if an employee dials out and surfs the Net. To address security concerns, many
businesses install firewall technologies, define use policies, and tighten employee access to outside lines and
networks.
Change Management: E-business redefines rules, recasts careers, and sometimes eliminates entire business
procedures. This means you should educate personnel - from data-entry clerks to executives - to anticipate
and embrace changes.
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Consider forming a cross-company task force to lead and participate in all your e- business planning and
activities. Also, make sure you have an e-business champion at the executive level to support your cause. It
may be wise to hire consulting expertise to help you along.
Outsourcing EDI and E-Commerce Operations In the last year, there's been a lot of hype about
outsourcing e-business operations. In reality, however, there isn't a lot of outsourcing going on yet. Many
companies consider outsourcing their e-business efforts in response to internal resource constraints. Indeed,
outsourcing can relieve you of having to manage an entirely different line of business. It seems most
appropriate for companies whose automated operations consume so much effort that they potentially detract
from the management of the core business. Although outsourcing may sound like a good option, consider it
carefully because no third-party vendor today can manage every aspect of your e-business operations. If you
contract with a supplier, chances are they will subcontract pieces of the work to other companies. This
increases your risks and the potential for finger pointing when things go wrong. Also, outsourcing e-business
is unlike outsourcing traditional IT functions; with e-business, you could be entrusting a third party to
manage your relationships with your biggest, best customers.
Rollout: Before you implement your e-business solution, you should have a solid rollout plan that includes
a list of trading partners who are at least fairly committed to using the system
a strategy to advertise the new environment
a budgetary schedule for trading-partner assistance
a system for gathering and responding to feedback from your users
Many smaller customers and suppliers may not have sufficient budgets and other resources to participate
right away. You may want to offer special incentives (such as discounts or special payment terms) to trading
partners who commit to joining your network.
Legal Considerations: When you roll out your e-business system, you have so much else to consider that
it's easy to simply forget your legal rights and liabilities. Bear in mind that there are few e-business legal
precedents, and only a few states have defined any e-commerce rules. This leaves much open to
interpretation in the future.
Function of e-business:
E-business provides links to customers, suppliers, business partners, and employees through the
Internet, intranets, and extranets. The increased data availability improves corporate productivity.
Information flowing to and from business partners is facilitated through the growth and improvement of
extranets. Extranets allow more and more firms to implemented-business solutions. The suppliers of a firm
are also linked to their customers through these extranets. This allows for logistics improvements such as
systems interconnection, production streamlining, and automatic material order. The integration of logistics is
commonly referred to as supply chain management.
CONCLUSION
According to our analysis, much attention should be paid to the negative implications of the Internet
on the tourism industry. The consideration of the Internet technology, being the major ICT, provides a clear
view of the dramatic changes occurring in the tourism industry. Hence, these negative implications have to be
confronted through an integrated e-business strategy, consisting of three main drivers: customizing tourist
products, personalizing services and supporting mobile services, sharing tourism information and operational
data, and offering tailor made products and supporting user-generated content. Analyzing the trends of
representative indicators of these drivers, we found that there is an intensely positive tendency in terms of
total tourism figures, except for online purchasing data, which have a slightly positive slope.
Reference:
http://www.ifp.uni-stuttgart.de/publications/phowo01/Reiss.pdf
http://en.wikipedia.org/wiki/Electronic_business
http://www.ecommercetimes.com/
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CHALLENGES IN STARTING A NEW BUSINESS

Ms. R.Jothi, MBA Student, Nadar Saraswathi College of arts and science, Theni

ABSTRACT My topic is challenges in starting a new business. In this topic I am including now a
days. what are the challenges for starting a new business and giving the solution for that. The business
peoples how to take the strategy from monitoring the environment through their analyzing strength
and weakness. The business man how to collecting the capital for running their business. Last I
conclude my topic through the solution.
INTRODUCTION:
Business challenges are inevitable and any entrepreneur who wants to be successful must be ready to
face the challenges and overcome them. There are different business challenges which include business
challenges, international business challenges, global business challenges etc, but this article will be focusing
on business challenges. This business challenges will test your entrepreneurial capability and if we have to
scale through them, then we can tell yourself that we are a successful entrepreneur.
WAY TO OVERCOME THE CHALLENGES:
SELECTING THE BUSINESS:
1. GETTING A VIABLE BUSINESS IDEA: Business have failed because of the wrong choice of
business idea. Many people idea because they see some people doing the business and succeeding without
critically examining how viable the business idea is and also consider if it suitable for them. People do forget
that, what works for Mr. A might not work for Mr. B and so they jump into making a decision that will spell a
doom on their business even right from the beginning.
2. TAKING OFF THE BUSINESS IDEA FROM THE GROUND: Another business challenges that
will face as plan to start business is the challenges of taking off the business idea from the ground. It is one
thing to come up with brilliant business idea and it is entirely another thing to develop such a business idea
and change the idea into a real business. At this point, we as an entrepreneur that really understand your
business goals and vision will need to come up with some good strategies to launch this business idea. In our
plan, will need to look at the future prospect of the business, spell out your business goals and set targets to
achieve the goals..
3. START UP CAPITAL: This is the next challenge of a small business and in fact the most important
challenge of all the business challenges for a person that is just trying to start a business. Getting money to
start a business is not an easy task. If we have attempted of borrow money before, we will understand what it
takes to borrow money. Many brilliant business ideas do not go beyond this stage, due to lack of startup
capital.Getting money from investors and financial institutions may become a big challenge here, because of
their reluctant attitude to lend out money to a new entrepreneur. This is because they see a new business as
one that is full of risks and so they are not willing to invest their money into it. We prefer to invest in an
already established business because it has low risk than a new business that its success cannot be
guaranteed.
4. RECRUTIMENT OF COMPETENT, TRUSTWORTHY AND GOOD WORKERS: Recruitment of
workers for a new small business may not be as easy as you think. Although, there are many people who are
out there looking for job, but very few of them are ready to work very hard and be good ambassadors of your
business. Finding good, trustworthy and competent employees who will do their best to ensure the success of
the business is very difficult for an inexperience person who is just going into business for the first time.
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People want to work less and be paid more. They do not want to suffer with you at the beginning and so may
decide to be irresponsible and lazy.
Apart from getting competent employees, you may also be faced with the challenge of organizing
them to work as a team for the success for the success of the business. This may be due to the fact that the
new entrepreneur is not good in administration and as well all know, human management is very important
for the success of any business.
5. MARKETING: This is another small business challenge that a new entrepreneur will have to battle with
at the beginning of the business. The challenge of getting our products or services known to people is
peculiar to all new businesses.
6. COMPETITION: Competition is not only the challenge of a small business but it is also a challenge to
all businesses. Competition has knocked out so many entrepreneurs who are not innovative out of business.
SOLUTION: Competition is an advantage that will always use to improve on our product and services. It
will make we come up with innovative ideas that will make our business to stand tall among our competitors.
If there is no competition, there wont be innovation and without innovation, there wont be improvement, so
face competition by coming up with new ideas that will make our product or services to be unique and
become the most sort after one.
7. CATCHING UP WITH THE LATEST TREND
This is another business challenge that every entrepreneur is facing. The rate at which technology is
advancing now, many businesses will be knocked out if the owners dont act fast to catch up with the latest
trend in the business world.
8. UNEXPECTED CHALLENGES
Apart from the above challenges that are inevitable for all entrepreneurs, there will certainly be some
unexpected challenges that will come up along the way. Some of such challenges are bad dept, problem with
cash flow, new government policies, accidents, bad products, law suit etc.
A NEW WAY OF LOOKING A STRATEGY
A new company should envision and forecast its future. It must always be ahead in comparison to its
new competitors. Competition is a benchmark for creativity which is the main engine for innovation and
quality products. In fact, without competition there will be no innovation and without innovation the new
company will remain stagnant without growth.
CONCLUSION:
We have to encourage not to be weighed down by these new business challenges when arise and our
business journey but rather face and overcome them. Remember that entrepreneurship is not for the cowards
but for the courageous mind .our own business because of likely business challenges have lost the battle even
before it begins.
REFERENCES:
www.smallbusiness.com
www.chron.com
www.business.qld.gov.au

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CHALLENGES TO WITHSTAND IN BUSINESS FIELD

Ms. K.Mariselvi., MBA, Nadar Saraswathi College of Arts and Science, Theni.

Abstract: A business, also known as an enterprise or a firm, is an organization involved in the trade of
goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of
them are privately owned and provide goods and services to customers for profit. Businesses may also
be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a
company, although that term also has a more precise meaning. The etymology of "business" stems
from the state of being busy, and implies commercially viable and profitable work. The term
"business" has at least three usages, depending on the scope in which it is used. A business can mean a
particular organization, while a more generalized usage refers to a particular market sector, i.e. "the
music business". Compound forms such as agribusiness represent subsets of the words the broadest
meaning, which encompasses all activity by all suppliers of goods and services.
INTRODUCTION:
Human beings are continuously engaged in some activity or other in order to satisfy their
unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly.
Business has become essential part of modern world. Business is an economic activity, which is related with
continuous and regular production and distribution of goods and services for satisfying human wants. All
business activities are directly or indirectly concerned with the exchange of goods or services for money or
money's worth. All business activities are directly or indirectly concerned with the exchange of goods or
services for money or money's worth. Anyone cannot run a business. To be a good businessman, one needs to
have good business qualities and skills. A businessman needs experience and skill to run a business. Every
business needs money of your own plus sufficient cash to maintain a positive cash flow for at least a year. In
a future session operating entrepreneurs will learn how to forecast future cash requirements through cash
flow control. Many businesses can be started on a very small scale with a small investment.
Challenges in business
1. Integrity.
Business has never faced the type of moral challenges that it faces in todays global Economy.
Everyone is struggling to be more successful, to make the next quarterly earnings estimate, to keep their job,
to earn a big bonus, or to compete effectively. The temptation to cut corners, omit information, and do
whatever it takes to get ahead occurs every day. Many business employees and executives succumb. Sadly,
the theme becomes highly infectious and soon people actually start to feel like lying a little, or stealing a
little, or deceiving others, is just a part of business. These practices erode the trust that needs to exist
between employers and employees, between business partners, between executives and shareholders.
Without trust, the business will not be able to compete effectively and it will eventually fail.
2. Cash, Borrowing, and Resource Management.
Cash is King! Weve all heard this maxim and it is truer today than ever before. A healthy
profit may look nice on your financial statements, but if capital expenditures or receivable collections are
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draining your cash, you wont be able to stay in business for long. Too often executives and small business
owners fail to focus enough on cash flow generation. In order to head off this problem, businesses must
either be adequately capitalized and must shore up cash reserves to meet all obligations as they are needed
and to handle downturns and emergencies that may arise.
3. Increased selection and competition.
Its never been easier to start a business. Gone are the days when it took weeks, months, and a
myriad of forms to get your business started. Now if you can buy a domain name and register your business
online, youre in business. However, staying in business is a much more complicated matter. While business
expertise was once an expensive and time consuming endeavor, you can now find experts online for many
questions that you might encounter.
4. Marketing and Customer Loyalty.
Along the same lines as increased selection and competition is the challenge to market to potential
customers effectively and retain your existing customers. Smartphones, social media, texting, email, twitter
and other communication channels are making it easy for businesses and individuals to get their messages
out. Figuring out the right marketing channels is key for businesses to be successful in the future. Where are
your customers and how do you best reach them and what is the right messaging?
5. Uncertainty.
All of us and especially business leaders find great discomfort in uncertainty. Because of
global debt and economic struggles, uncertainty is more pronounced today than in the past. The sad news is
that uncertainty leads to a short-term focus. Due to uncertainty, companies tend to shy away from long-term
planning in favor of shorter-term goals. While this might feel right, a failure to strategically plan five to ten
years into the future can end up destroying value. Businesses must learn to balance the need for a more
reactive, short-term focus with the need for informed, long-term strategies.
6. Regulation.
A changing regulatory environment is always of concern in certain industries, but uncertain
energy, environmental and financial policy is wreaking havoc for nearly all companies today. Whether a
demand from customers or shareholders to become more green, or the threat of increased costs due to new
carbon taxes, environmental considerations are among the biggest challenges businesses face today. And we
dont need to give too much press to the current issue of financial reform and regulation, although we do
have some opinions about how to prepare for that if youre a bank or a brokerage house.
7. Problem Solving and Risk Management.
A major challenge for all companies is identifying, assessing, and mitigating risks, including
human and financial capital, in addition to the macro economy. The lack of a sophisticated problem-solving
competency among todays business leaders is limiting their ability to adequately deal with risks facing their
businesses. This is why corporate managers tend to jump from one fire to another, depending on which one
their executives are trying to put out, and in many cases the fast-changing business environment is what
ignites these fires..
8. Finding the right staff.
Without exception, every business executive I speak to says that one of their biggest challenges
is staff finding the right staff, retaining them, and ensuring they buy into the vision of the business. Ill
freely admit that I have no magic answers here. In fact, if someone could develop a formula for recruiting
and engaging the right team members, they would make millions.
Challenges in Business Strategies
A business growth strategy starts with market insights. The source of insights lies within and
across your market ecosystem. While research firms and strategic marketing consultants can bring these
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insights to bear on an ad-hoc basis, companies committed to growth will serve themselves well by
developing systems and processes to ensure a continuous flow of market insights into their business. This is a
key strategy for developing the demand side of your business Business growth strategies are unique in every
business. However there are broad categories of strategies for business growth:
New Product/Service Strategy Development
Market Expansion Strategy
Product Diversification Strategy
Market Opportunity Analysis
Competitive Market Analysis
Market Segmentation Strategy
Overcome the business
1. Scaling & Staffing
As your small business grows, theres nothing more important that finding and hiring a great team.
Staffing your company with dedicated talent is one of the swiftest ways to make sure youre growing in the
right direction. Another challenge small business owners face has to do with scaling their businesses. Make
sure you have a plan for the next 6-12 months, as well as a 3 and 5-year plan that includes specific growth
goals.
2. Staying Competitive
In order to stay competitive, your small business must create a customer-centric marketing plan
thats continually solidifying your relationships with your target market. One of the best ways to do this is
through email and content marketing with companies like Vertical Response. Vertical Response helps you
reach out to customers with fresh content, engage them via social media, and stay ahead of the competition.
3. Managing Money
One of the most important aspects of running a small business is keeping track of the money you
make how its spent, where its coming from and where its going. As you grow, managing your finances on
a manual spreadsheet just doesnt make sense.
4. Be positive.
Negative thoughts are like Miracle Grow for fear and self-doubt. Stay away from negative people and
you will decrease the amount of negativity in your life at least by half. Practice daily gratitude, write down all
the positive events in your life, practice mindfulness and you will notice how your negative attitude will start
melting away.
5. Continually remind yourself that you are part of something larger than you.
Fear often has to do with worrying about uncertainty, feeling out of control, and wondering what your
lifes purpose is. When you realize you are part of a bigger picture, even if you dont fully understand what
that is, its easier to ascertain that you both deserve and need to be successful and happy.
6. Create your success library.
There are plenty of ways to find inspiration, but we forget about them when we need them the most.
Create a library of quotes, save articles and success stories that have inspired you, create a library of inspiring
movies and videos, or create an album of your fun and happy memories. Turn to this library whenever you
have self doubts.
7. Learn.
People are always scared of what they dont know. My first job was in a web development company.
If you have a fear of something you just have to educate yourself about it. It is like walking into a dark room.
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At first you feel scared and dont know what to expect but once you turn the light on, everything gets clear
and simple.
Conclusion.
I have to conclude my point business play a vital role everywhere. Now a days many barriers arise
in our business environment. We need to rectify such challenges for successful business. The implement of
new strategies will be lead to Organization growth.
References:
1. http://www.webcrawler.com
2. http://en.wikipedia.org
3. http://www.investorwords.com

IMPACT OF BUSINESS STRATEGY IN E-BUSINESS

Ms. S.Nageswari, MBA Student, Nadar Saraswathi College Of Arts &Science, Theni.
Abstract: E-business is fast becoming an important initiative for companies to consider, one that
impacts every aspect of how a business is run. This report investigates the impact of e-business
implementation on various aspects of the organization including; strategy, human resources, customer
relationship management, the IT department, technology, the business environment, trust, service
management and performance metrics. Implementing e-business applications will require process
redesign, organizational restructuring and alignment, new job descriptions and reviewed and revised
policies.
Organisations
will
also
have
to
examine
tax,
legal
and
security
issues..An organizations ability to embrace new
technology
and
business
model is
the
organisations productivity. The Internet economy necessitates a fundamental transformation of
traditional organizations. The true benefit of e-business is achieved through the digitization of
the entire value chain. For a successful e-business implementation it is important that decision-makers
understand the nature of these changes, their potential impact, plan for them and manage
INTRODUCTION:
E-business is based upon the processing and transmission of digitized information, including text
and visual images from one computer or some other electronic device to another. E-commerce is that
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part of e-business which involves buying and selling goods and services. e-business is any net-enabled
business activity that transforms internal and external relationships to create value and exploit market
opportunities driven by new rules of the connected economy. Furthermore, e-business involves the
continuous optimization of an organizations value proposition and value-chain position through the adoption
of digital technology. Implementing e-business applications will require process redesign, organizational
restructuring and alignment, new job descriptions and reviewed and revised policies. Implementing ebusiness applications will also require organizations to examine tax, legal and security issues. e-business
extends well beyond the buy-sell relationship to include transformation of the way to do business.
What is E-business?
E-business (electronic business) is the conducting of business on the Internet, not only buying and
selling but also servicing customers and collaborating with business partners.
The processes and tools that allow an organization to use Internet-based technologies and
infrastructure,both internally and externally, to conduct day to day business process operations.
A new-tech jargon word used more for marketing than for technical description. Most commonly it
broadly refers to conducting business over the Internet (email and web) by communicating and
perhaps transacting (buying and selling) with customers, suppliers, and business partners.
E-business types:
What is Consumers to Consumers (C2C) :
Abbreviation for consumer-to-consumer commerce; that is, commerce with no middle business people
The most notable examples are Web-based auction and classified as sites. Most large venues for such models
(for example, eBay and Classifieds2000) are quickly permeated by consumers who participate so actively
and regularly that they become small businesses for them. C2C stands for consumer to consumer electronic
commerce.
What is Business to Business (B2B) :
B2B stands for "business-to-business," as in businesses doing business with other businesses. The
term is most commonly used in connection with e-commerce and advertising, when you are targeting
businesses as opposed to consumers. On the Internet, B2B (business-to-business), is the exchange of
products, services, or information between businesses
What is Business to Consumers (B2C):
Refers to businesses selling products or services to end-user consumers. B2B stands for
transaction activities involving two business entities (business-to-business transaction). B2C stands for
transaction activities involving a business and a consumer (business-to-consumer transaction).
What is Business to Administration (B2A):
Short for business-to-administration, also known as e-government. B2A is the idea that government
agencies and businesses can use central Web sites to conduct business and interact with each other more
efficiently than they usually can off the Web. Find Law is an example of a site offering B2A services -- a
single place to locate court documents, tax forms and filings for many different local, state and federal
government organizations
Business Strategy:
The implementation of an e-business has a significant impact on a companys existing strategy as well
as strategy formulation. The basis for an effective e-business strategy is an understanding of the companys
business goals not its e-business goalsTherefore, the processes that will be integrated into the e-business
infrastructure must be both known and ready for integration. To implement e-business without understanding
the companys business goals or processes is likely to lead to e-business failure . Much like long-range
business planning, e-business plans must be re-evaluated and adjusted on a regular basis. An e-business
strategy is not a one-time event. It is an iterative process. In todays e-economy traditional planning horizons
tend to be too long for the very fluid state of e-business Continuous planning with feedback has evolved as
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the strategy of choice for the fluid and volatile-environment .In a survey conducted jointly by Information
Week and Business Week, IT and business executives from all industries agree that generating new sources
of revenue is not the main goal of deploying e-business initiatives.
Assessment of company operations:
Implementing e-business requires that managers assess companys operations by looking at both
traditional and-business measures. While most companies have a handle on the former, many are less focused
on tracking-business measures, including the percentage of an organizations total business that has been
transacted online, the percentage of goods purchased online from suppliers, the number of existing customers
doing business online, the number of new customers acquired online, and the percentage of customer service
requests handled online .
Major success factors for e-business:
The following major success factors :
1) Internet technology fully integrated into the companys overall strategy.
2) Competitive advantage maintained in both operational efficiency and distinctive strategic positioning.
3) Basis of competition not shifted from traditional competitive advantage such as cost, profit, quality,
service and features.
4) Companys strategic positioning well maintained.
5) Support from top management.
6) Buyer behavior and customer personalization.
7) Quick time to market.
8) Right system infrastructure.
9) Good cost control.
Technology:
E-business is causing a change in how companies think about technology. This change is inevitable
as the notion that e-business tools and concepts can be bolted onto current practices is a fallacy . IT and
business must work seamlessly. No longer relegated to the back office, technology has become an integral
part of e-business enabled business processes. Reengineering is at all order in any company, but integrating
business and technology functions is especially difficult. In trying to bring about e-business transformation,
companies have generally focused too much of their attention on technology. But systems do not work in a
vacuum, and senior managers must recognize the complementary nature of technology, business processes
and e-business readiness throughout the value chain
Change management:
In the modern e-business environment traditional change efforts dont work anymore. The speed
of todays business environment means that companies must replace sequential change processes with
parallel processing. That is, organizations must create strategy, build business and technical architectures and
develop new cultures, skills and measures simultaneously. Strategy requires experimentation rather than
months of analysis
.

ADVANTAGES:
1. It connects the consumers and business people anywhere from world through internet.
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2. Customers can get products at their door-step by just few clicks. This gives comfort to

customers. This saves time.

3. This supports the elderly and disabled people who cannot go out to get their needs.
4. This is 247 business with less effort of humans and therefore more convenient to both buyers

and sellers.
DISADVANTAGES:
1. Some people use this E-Business in wrong way. There is a possibility of misusing the buyers
bank details.
2. E-Business products are little costly because of using upgraded hardware and training personnel.
3. There are many chances that customers get cheated by not providing the Product as shown in the
website.
4. The users of the website might get the viruses if the website has some malware.
Conclusion:
Incorporating electronic business in an organization invariably has a significant impact on
various operations and aspects of the organization, causing changes in areas such as human resources,
strategy planning, technological infrastructure and customer service. E-business is now an established way of
organizing business. It is no longer revolutionary. Organizations from the 'new' and the 'old' economy need to
develop effective platforms to communicate through B2B and B2C links.
Todays successful organizations are those who are not only creating the most suitable electronic
links with customers, but are also providing the solutions that create optimal customer relationships. IBM has
built up greater experience of this field than anyone else and is allocating many new resources to ensure that
e-business is a success. Businesses know they can rely on IBM to help them forge a successful new future
through e-business.
References
http://www.tanning.com.
http://www.wikipedia.com.
http://www.pwcglobal.com.
BOOK
1)Agarwal- the e-business model.
2)Barua-A., Konana, P., Whinston, A.B. & Yin F. 2001.
Driving e-business excellence.

CHALLENGES TO WITHSTAND IN BUSINESS FIELD

Ms. S.Narmatha, MBA student, Nadar Saraswathi College of arts & science, Theni

ABSTRACT The topic is challenges to with stand in business field. Every business facing the different
challenges relating their product or service. But, I discussing about common challenges of business.
Now a day the entrepreneur facing the lot of challenges to continues the business successfully. So, I
explained main challenges of business.
INTRODUCTION:
The business is also called as a enterprise or a firm, is an organization involved in the trade of goods,
services, or both to consumers. The business motive is satisfying the business customers needs and wants
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and earning the profit also. This is one of the process in between the producer to customer. Now a day the
entrepreneur is facing the lot of challenges to stand the market. Now I discussed about what are the
challenges the business peoples will face to run the business successfully.
Main challenges in continuing the business successfully
Developing the vision and idea
Raising capital
Assembling a team
Finding the right location
Finding the right employees
Finding good customers
Overcoming competition
Unforeseen challenges and expenses
Keeping up with industrial changes and trends
Exiting the business
1. Developing the vision and idea:
This is usually the first challenge faced by every entrepreneur. Finding the right business opportunity
or creatively developing an idea is certainly not an easy task. I call envisioning the idea the first true task
of an entrepreneur. As an entrepreneur, you must develop the ability to see what others cannot see. While
others see problems, you must see opportunities.
Identifying a problem
Seeing an opportunity in the problem
Coming up with a solution
Developing your opportunity into a business idea
Integrating your solution into the business plan
2. Raising capital
After developing your ideas, the next challenge you are going to face is the challenge of raising
capital. As an entrepreneur, you are the only one who knows the idea to the core. You are the only one who
knows the story of the future. Trying to convince investors about something that doesnt exist is definitely a
challenge. There is more to raising capital than just simply asking for money. Most investors want to invest
in already established businesses with minimal risk. When building a business from scratch, raising capital
will definitely be a business challenge you must face.
3. Assembling a team:
The third challenge you must face in the course of developing a business is assembling the right team.
As an entrepreneur, you are bound to have strengths and weaknesses. That is the more reason you need to
assemble a strong team that will cover up for your weaknesses, a team is a necessity in your quest to build a
business. Now finding a business team us just the first hurdle, transferring your passion and vision to your
team is the real piece of cake.

4. Finding the right location

You might feel that finding a good location is a price of cake but I bet you that finding a good
location at the right price is definitely not easy. Suitable price
Easy access to raw materials
Good road network
Basic amenities and infrastructures
Adequate power supply
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Easy access to cheap labor

Nearness to high traffic roads
Moderate state and federal tax
Favorable government fiscal and monetary policy
Favorable government fiscal and monetary policy
Current economic policy and political situation

5. Finding the right employees

Most writers crank up the process of finding food employees as an easy task. They define finding an
employee as simply presenting the job description and the right employee will surface. But I think its more
than that. Those who are really business owners know how difficult it is to find a hardworking, trustworthy
employee. Most employees want to work less and get paid more. Finding a good employee who will be
passionate about delivering his or her services is quite difficult.
6. Finding good customers
The sixth business challenge you will face is the challenge of finding good customers. Note the
keyword good customers. When in the process of building a business from scratch, you will come to find
out that there are good customers and bad customers. Good customers build your business and bad customers
will always try to low your business.
7. Overcoming competition:
Competition is the next challenge facing by the entrepreneurs. Most individuals see competition as a
plague but see competition as a good challenge. But thing that facing the challenge is a competition as a
benchmark for creativity, the main engine for innovation and quality products at great price without
competition, there will be no innovation and without innovation, the world be stagnant.
8. Unforeseen challenges and expenses:
Just as a sailor prepares for unexpected storm, just as a pilot is always on the watch for unpredictable
bad weather and thunderstorms, so must an entrepreneur be prepared for whatever unexpected law suits,
Inconsistent government policy, not being able to make payroll, unpaid bills and taxes, unexpected
resignation of staff from sensitive office, bad debts from customers, loss of market share , dwindling working
capital, inadequate stock or inventory
9. Keeping up with industrial changes and trends
Change in trends is really a business challenge you must be prepared for. Trends have made and
broken lot of businesses. In know a lot of profitable businesses that have been wiped out by slight industrial
changes and trends.
10. AExiting the business:
Before starting a business, it is advisable to always plan your exit. There are benchmarks you can use
to determine your exit from the business are annual sales, annual turnover, asset base, market saturation,
customer base or number of users. This is more applicable to dot com companies
Conclusion:
The challenges arrayed in the every field over business field also but, the business people will
forecast (I) what are the challenges will arrases in business? And (ii) how it can face? So each and every
business people will ask these questions our self and facing the challenges with pre-plan
IMPACT OF BUSINESS STRATEGY IN E-BUSINESS
Ms. J.PAVITHRA DEVI, MBA Student, Nadar Saraswathi College Of Arts And Science, Theni

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ABSTRACT Starting with EDI in the 1970s numerous efforts have been made to facilitate electronic
business communications. Early attempts based on proprietary document formats and VAN (Value
Added Networks) networks have been superseded by a range of international standards that include
XML, UBL, BODs, GS1, Rosetta Net and numerous other XML-based specifications. While successful
in some industry domains, overall e-business standardization suffers from complexity of the
specifications, difficult customization and limited extensibility leading to expensive implementation
and low adoption rates. A common feature of such e-business standards is their focus on documents as
the key arte facts of business communications and reliance on document engineering methods for the
design of the standard specifications. In this paper we briefly review the main e-business document
standards, and then argue that the document-centric interoperability model underlying most current
e-business standards produces inflexible specifications that are difficult to evolve and maintain. As an
alternative to the document-centric interoperability model we advocate a service-centric approach
based on well-designed domain services.
INTRODUCTION
There have been dramatic changes in information technology over the past ten or fifteen in years.
Consumers and business-people no longer need to be near a computer to send and receive information. The
revolutionary changes being ushered in by the internet are indeed exciting. The new business technology
modes include electronic mail, corporate and public database , application systems, fax, video and computer
conferencing. These modes are considered to be some of the driving forces of internationalization. These new
information technology modes have a major impact on the co-ordination of head-quarter-subsidiary relations.
In fact most of the MNCs have developed these new modes of information technology. The internet is a
worldwide, self-governed network connecting thousands of smaller networks and millions of computer and
people to mega sources of information. This is including the E-business tasks.
E-BUSINESS
E-business describes the use of electronic means and plat forms to conduct companys business. The
advent of internet has greatly increased the ability of companies to conduct their business faster, more
accurately, over a wider range of time and space, at reduced ach to deliver cost and with the ability to
customize and personalize customer offerings. Many companies have set up website to inform and promote
their products and services. IBM defines e-business as a secure, flexible and integrated approach to deliver
differentiated business value by combining the systems and processes that run core business operations with
the simplicity and reach made possible by internet technology.
E-business is a super-set of business cases. E-commerce is one of the aspects of E-business. Some
other important aspects of E-business, which are successfully carried through the internet are e-auctioning, ebanking, e-marketing, e-trading, etc.,
Why is an e-business strategy important?
While e-business can help you increase your visibility, profits and competitive advantage, it is much
more than just a website. Before jumping headfirst, it is important to understand the basics, recent models
and applications that can help you grow your business.
To make the most of the Web, your action plan should reflect your overall business goals. This may include
the following aspects:
Relevance of e-business for your company
SWOT (Strengths, weaknesses, opportunities and threats) and benchmark analysis
Type of technology (e-procurement and inventory management) and/or Web-based tools (Intranet,
Extranet and Internet) to be integrated
Developing appropriate administrative support and processes
Financing for your e-business strategy
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Social Media Strategy

Social media is quickly becoming an important focus for e-business owners. An example of a
good social media strategy would include setting up a Twitter account and a company blog. The blog is used
to bring readers useful information related to the products or services the company offers. Twitter is used to
notify followers of this new information. Social media is best used as a passive source for generating sales -the primary focus should be on relationship building and providing useful information, not on hard selling.
For example, a company that sells athletic shoes may be launching a new product in the near future.
E-Business Advertising Strategy
There are many ways for an e-business to advertise. One example of an advertising strategy for
an e-business would include the use of pay-per-click advertising. The company would need to come up with
a list of keywords related to their product or service, test the popularity of these keywords and then use the
best ones in its pay-per-click ad campaigns. This is an ideal way to reach a targeted audience that is already
searching for what the company has to offer. For example, a small business owner has a new e-book on
making money at home. He would select keywords such as "making money," "wealth," or "passive income,"
in his PPC ads. These ads would link to a landing page for the new e-book that contains sales copy meant to
convince visitors to purchase the product.
E-Business Growth Strategy
Businesses that don't grow run the risk of remaining stagnant and the same is true in the
virtual marketplace. An e-business growth strategy might include taking advantage of new marketing
opportunities to target a larger audience for their product, or creating an affiliate marketing program for your
product or service. This is a low cost way to build a powerful sales force: the affiliates only get paid if they
make sales, and the company is not out any money for the promotion of the product or the service.
Entering New Markets
With the ability to reach a global audience, e-businesses need to include a strategy for
exploring new markets. Whether it is selling back stock at a discount or finding a new target market for a new
product, use the Internet in a variety of ways to reach consumers. These strategies should include the use of
social media and quality content in order to build a strong foundation for the new market to use. If your
company has a large amount of beach towels that haven't moved, for example, instead of writing off the loss
you can offer them for sale on eBay at a discount and avoid losing money.
Online Marketing
The first goal of an e-business is to attract large numbers of visitors to the website. The more
visitors, the better the advertising revenues and the more likely there will be product, service, affiliate or
partnership sales. The primary way of driving visitors to your site is through search engine optimization
(SEO), which uses search engine submissions, inbound links, keywords and page descriptions to attract the
search engines to display your site in the search results. Another way to drive business to your site is through
advertising on other websites.
Marketplace Hosting
Many e-businesses succeed by hosting a site for auctions and online stores on which member can
place items for sale. In this model, the website owner takes a flat fee or a percentage of sales in exchange for
promoting the online marketplace and assisting in processing the transaction. Some businesses combine this
option with their own warehouse, offering both their own goods and advertising members' listings for the
same items. Additional revenue for the website owner can come from members paying additional fees to
spotlight their offerings on the main website.
Turnkey Businesses
A turnkey business functions with a pre-existing template for its given industry. These websites
may offer anything from diet pills to a dating network for a particular city. The turnkey model requires less
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work than others but also faces stiff competition. The operator must do some legwork to produce the site's
content and sell ad space to generate more income.
Social Networking
A new and very powerful way to drive traffic to your website is through marketing on the social
networks such as Twitter, Facebook, MySpace and others. Effective marketing in these venues involves
carefully avoiding spamming while still managing to display your talents and link to your site. It is a skill
that is best developed slowly and carefully so you don't get banned from the networks for spamming.
Social Media
While allowing users to register accounts and contribute their own information and content, a social
media site can create revenue from ads on the site as well as selling the members' information as marketing
data. The website can have either a broad scope or a very specific one with a geographical, cultural, or
interest-based theme. The site entertains and informs its users, who can receive targeted ads based on what
information they've entered on the site.
E-Trading
The act of placing buy/sell orders for financial securities and/or currencies with the use of a
brokerage's internet-based proprietary trading platforms. The use of online trading increased dramatically in
the mid- to late-'90s with the introduction of affordable high-speed computers and internet connections.
Stocks, bonds, options, futures and currencies can all be traded online.
Benefits of E-business:
Business of all sizes in all sectors are using the Internet in many different ways - to work with
partners and suppliers, for procurement, for internal activities such as knowledge sharing and new product
development, and much more. Companies such as United Technologies, J. Sainsbury, General Electric and
many others are reporting benefits from the use of the Internet. These benefits include: improved speed of
response; cost savings; improved communications, information and knowledge sharing; reductions in
inventory; improved efficiency and productivity; harmonisation and standardisation of procedures; better
transfer of best practices; acquisition of new customers and increased sales.
CONCLUSION
E-Business research involves focussing a still-young discipline on a very young domain. The
challenges of rapid change in technologies and behaviour, combined with inadequacies in research activities,
are compounded by the confrontation between the academic demand for rigour and the real-world need for
relevance. It is easy to draw negative conclusions, such as that research will continue to be under-funded and
inadequately performed, and that academics at the outset of their careers would be well-advised to choose
less exciting domains in which to undergo their research training.
References:
http://www.ehow.com/way_5478770_ebusiness-strategies.html#ixzz2rn8Y3Ezb
www.haiti-now.org/
http://www.ehow.com/way_5478770_ebusiness-strategies.html#ixzz2rn8KjQSu
Books: Modern marketing- R.S.N.pillai

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CHALLEGES TO MEET GLOBAL CUSTOMER RELATIONSHIP MANAGEMENT

Mrs. R.Narmadha, II MBA, Nadar Saraswathi College of arts and science, Theni.

Abstract: The manufacturing market has gone global. Most of the manufacturers rely on customers
from around the world, not just in one country. These global customers have high expectations and
manufacturers must respond quickly to their needs to remain competitive. Although the value of
providing a more customer-centric experience is evident, it is a challenge to implement it. A growing
number of manufacturers have, therefore, adopted the latest generation of customer relationship
management technology. These help companies respond quickly to changing market situations. CRM
involves all the corporate functions required to contact customer directly or indirectly.
INTRODUCTION:
The customer is the only source of the company's present profit and future growth. Customer
Relationship management is an integration of business processes and technologies employed to satisfy the
needs of a customer during any given interaction. The concept of CRM involves acquisition, analysis and use
of knowledge about the customers with a view to effectively sell more and more goods and services.
Customer relationship management is a strategy adopted by business firms in recent years and includes the
formulation of methodologies and tools that help businesses manage customer relationships in an organized
way.CRM processes are extremely helpful in identifying and targeting the best customers of the business
firm, and generating quality sales leads, as well as in the planning and implementation of marketing
campaigns with definite goals and objectives.
STEPS FOR SUCCESSFUL CRM:
Managers should only think about providing quality customer services rather than concentrating more
on the CRM label. The success lies in implementation of CRM and not in following vague policy.In order to
understand the specific CRM needs, the firm has to re-examine the vital CRM areas like strategy,
communication, software tools, etc. The effective implementation can be undertaken on a small scale in the
initial stages, which will help the from out the pitfalls and practical difficulties.
NEED FOR CUSTOMER RELATIONSHIP: MANAGEMENT
The important factors that establish the need for CRM in the Banking Industry are detailed below:
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Intense Competition: There is intense competition among the Private Sector Banks, Public Sector Banks
and Foreign Banks and they are all taking steps to attract and retain the customers. New technologies,
research facilities, globalization of services, the flood of new products and the concept of all the facilities
under one roof to provide better customer service leading to customer delight.
THE GENERIC CONSTITUTES OF CRM CUSTOMER:
1. Customer Acquisition: It can be considered the connectivity between advertising and customer
relationship management. This critical connectivity facilitates the acquisition of targeted customers in an
effective fashion
2. Customer Retention: Customer retention is more than giving the customer what they expect; its about
exceeding their expectations so that they become loyal advocates for your brand.
3. Customer Value: A customer value proposition is a business or marketing statement that describes why a
customer should buy a product or use a service. It is specifically targeted towards potential customers rather
than other constituent groups such as employees, partners or suppliers.
SUCCESS FACTORS FOR CRM:
It is quite necessary to consider the following factors for successful implementation of CRM in
banking industry .To motivate customers to initiate revenue generating contacts. To understand customers
needs even before themselves. To decrease customer churn by increasing customers satisfaction. To use
technology to improve customers service enables a greater degree of customer differentiation in order to
deliver unique customer interaction.
CRM IN MANUFACTURING:
The manufacturing market has gone global. Most of the manufacturers rely on customers from around
the world, not just in one country. These global customers have high expectations and manufacturers must
respond quickly to their needs to remain competitive. Although the value of providing a more customercentric experience is evident; it is a challenge to implement it. A growing number of manufacturers have,
therefore, adopter the latest generation of customer Relationship Management (CRM) technology. These
systems help companies respond quickly to changing market situations. CRM involves all the corporate
functions (marketing manufacturing customer services field sales, and field service) required to contact
customers directly or indirectly. The term touch points is used in CRM to refer to the many ways in which
customers and firms interact with each other.
Components of CRM: Customers, Relationship, Management
Need for CRM in manufacturing:
The CRM system is an enterprise system which means that it spans multiple departments. Virtually all
departments within a corporation have at least some indirect access to customers or customer information.
The goal of CRM is to collect that information in a central repository, analyze it and make it available to all
departments.
With the manufacturing marketing expanding to a global scale, every manufacturer faces a wide range
of competition. Customers have come to expect high-quality products at reasonable costs. If one
manufacturer does not meet a customers need, the customer can look at a broad range of competing
manufacturers to find a solution.
When seeking a manufacturer, the customer typically asks:
Does the manufacturer provide a high degree of professional service?
Does the manufacturer offer product and service customization?
Areas of business decisions to be made in manufacturing: Maintaining a competitive edge can be
challenging in a global market. Manufacturers can make intelligent business decisions by considering various
factors.
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Professional customer service: Customers are not only shopping for high quality products, but are also in
the market for being accommodated through a professional customer service. An effective customer care
framework can make or break a sale opportunity.
Product and service customization: Manufacturers who want to maintain an edge over the completion must
provide customers with product and service customization. If a company tailors product services to meet the
customers specific needs, the customer is more likely to return to the same manufacturer for other solutions
in future too. Customer loyalty can lead to additional product and support acquisitions from the company or
even new customers by word-of-mouth recommendations.
Making the most of existing sales data: Predictive analysis using existing sales data is an intelligent
method for planning future marketing campaigns and the manufacturers can have a good insight into their
customers needs.
Integrated sales and marketing: The integration of sales and marketing can help tie demand generation
directly to sales coordination. Requests for certain products or services can drive development and eventually
sales, so that sales representatives can easily target the customers with the right value proposition for
products.
Effective customer care framework: An effective customer care framework helps address the customers
expectations for excellence in customer service. Customer service representatives should have access to the
right information while interacting with a customer, or they should be able to collaborate with experts.
Customer service representatives also have the ability to cross-sell other tools which the customer might
benefit from.
Customer database: Customer information can be stored in a database that can be accessed by people at all
levels of the organization, enabling everyone make intelligent decisions from customer care to sales to
production.
Collaboration with experts: Collaboration software which is familiar and easy to use enables teams to
communicate wite expects and each other to deliver customer solutions quickly.
Reporting: Technology makes reporting about the success of customer interactions easy by tracing call data
and providing instantaneous graphs and charts for analysis.
Data mobility: Sales representatives can copy customer data on to hand-held devices, which they can use
while selling products when they are away from the office.
FUTURE CHALLENGES IN CRM:
In just a few years Customer Relationship Management has emerged as a powerful business trend.
However, the best is yet to come. Recently the Internet portal CRMGuru.com hosted an online panel
discussion featuring four distinguished CRM experts debating the future of CRM. Speaking of trends and
challenges ahead, they agreed that CRM is here to stay but will evolve. Many organizations are considering
introducing CRM systems or are in the process of doing so. The main concern of these organizations is their
ability to make the necessary changes at the level of organizational strategy that the introduction of the CRM
system requires. With most other types of information systems we are concerned mainly with operations
relevant to the organizations internal resources. By contrast, introducing a CRM system affects the
companys customers, who are external to the organization and beyond its control. The companys reputation
and future are greatly dependent on the success of the CRM implementation. Failure in the introduction of
the CRM system, especially in service and sales phone centers, can result in real disaster for the organization.
What factors can interfere with the successful implementation of a CRM system at the functional and
technological level? In our experience, three main factors are responsible for crucial failures. To the extent
that IT can solve these problems, part of the difficulties in introducing CRM systems into the organization
would disappear. Note however, that in some cases IT is not in a position to solve these problems, and the
implementers of the CRM system must cope with these failures. The first problem occurs when the CRM
system is not connected directly to the operational systems. In the worst case it is not possible to access the
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operational and legacy data about clients and products through the CRM, and users must access
simultaneously other systems, resulting in double entries. In another problematic case the connection is not
complete and transparent. In this case it is possible to access the operational system not only through the
CRM but also directly, circumventing the CRM and rendering its use optional. The second problem has to do
with a client database that contains low quality data or with data that is missing altogether. The third problem
is one of poor performance, the result of the fact that the CRM system is connected to a large number of
systems and often interacts with various technologies, many of them legacy systems. If the transition to CRM
does not include the upgrading of the technology of legacy systems, performance is degraded.
CONCLUSION:
The effective implementation of global CRM strategies thus allows a firm both to retain the existing
customers as well as to attract new customers. By adopting a CRM system, the firm can keep track of various
basic and vital customer information such as contacts, communications, accounts, buying histories and
preferences. Through proper maintenance of data relating to the customers, the farm can improve contacts
with its customers, manage marketing campaigns, reduce customer response times and offer services in a
large and geographically widely spread out market. In short, the future of CRM is bright indeed. CRM will
become deeply ingrained as a business strategy for most companies. Technology will evolve while technical
and organizational challenges are overcome. Much will change in the years ahead, but one thing is certain:
CRM is a journey, not a destination, and customers have their hands on the road map and the steering wheel.
REFERENCE:
http://www.businessweek.com
http://www.vsrdjournals.com
http://www.retailtouchpoints.com
BOOK:
V.Kumar, WernerJ.Reinartz Customer relationship management
Alok kumar- Customer relationship management
CHALLENGES TO MEET GLOBAL CUSTOMER RELATIONSHIP MANAGEMENT
Ms. B.Sugapriya, MBA Student, Nadar Saraswathi College Of Arts & Science, Theni

ABSTRACT: Over the past few decades, cross-border business has experienced unparalleled growth.
This growth is due to advances in communication and information technologies, privatization and
deregulation in emerging economies, and emergence of the global consumer. As the era of globalization
continues to manifest through the emergence of global companies, the importance of customer
relationship management (CRM) in these companies has become increasingly significant. Global CRM
(GCRM) is the strategic application of the processes and practices of CRM by firms operating in
multiple countries or by firms serving customers who span multiple countries, which incorporates
relevant differences in business practices, competition, regulatory characteristics, country
characteristics, and consumer characteristics to CRM strategies to maximize customer value across the
global customer portfolio of the firm. In this article, the authors present an overview of the GCRM
environment and the challenges in formulation and implementation of CRM across national
boundaries as a source of sustained advantage. The authors also provide a conceptual framework for
GCRM and recommendations for future research in Global CRM.
INTRODUCTION
Before explaining how to implement a global customer relationship management strategy using the
internet, we need to define what customer relationship management means to us our experience with clients
has been that though some of them practice customer relationship management in one form or another, there
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is usually no cohesive strategy especially because online retail and internet sales web sites do not have a
longstanding tradition compared to brick and mortar retail.
The history of global customer relationship management starts with the earliest who wanted to make sure
their customers returned. If street vendors in ancient Rome had foods from a new colony available, they most
certainly would let their best customers know. That is part of customer relationship management. When that
same vendor asked the customers the next day whether they liked the new merchandise, they collected
feedback. These methods were developed via a personal relationship.
THE CHALLAGENGES:
1) Despite being ahead of the curve, Eddie Bauer is a testament to global customer relationship
complexity. With its lofty multi channel and one to one goals, the company would point out, that are being
achieved- Egler admits they might have been a little too ambitious. We wanted to get to Mecca right away,
he says. He cites three different global customer relationship tactics: evolutionary, where each step is logical;
revolution ary, which involves significant business change; and interdisciplinary, leveraging global
customer relationship to a diverse set of decision- makers..
2) The luxury of being able to build a companys support infrastructure from scratch is also its
difficulty. True, juniper has no neighborhood branches with lines of impatient customers spilling out the door.
Nor is there an easy way for juniper to provide its customers with an intimate human experience. There are
no unwieldy legacy systems to grapple with, but that means little established data to direct the best decision.
We were always tempted to revert to our past experience, Wallace reflects, and sometimes we had to
guess. But our products are different, and so are our customers.
3) Having begun the process of building a data warehouse back in 1995, union bank of Norway has
witnessed its evolution, in terms of both the data and the applications that provide business users with critical
information. Because the bank took requirements- driven approach to global customer relationship,
development has proved to be relatively problem- free.
4) Leonards challenges were more cultural and organizational than tactical. She cites the need for
gathering consensus around customer relationships managements value as a major hurdle- one shes gratified
to have overcome. She also charges various product vendors and consultants with glibly promising
unrealistic quick wins at the expenses of the planning and rigor ultimately curricular to instilling the
corporate consciousness of customer relationship management as a true enterprise program. Customer
relationship management, if done right, Is not simple, Leonard declares.
5) Notwithstanding a fortified IT infrastructure and advance data analysis capabilities, Harrahs
biggest challenges was convincing individual properties to believe in the newfound customer information
enough to use it. At first they were reluctant. After all, since 1937, property management and casino staff had
worn as a badge of honor their ability to remember regular customers names and treat them well.
6) Overly is frank about his biggest challenge, so far, and its no surprise: deploying customer
relationship management worldwide has its trials. No matter where they are in the world, sales reps share the
goal of being as productive as possible; however every salesperson has a preferred way of getting the job
done. Overly and his team have had to surmount habits and assumptions that are often not only
organizationally entrenched but also cultural. Were no longer talking about every countrys having a unique
personal productivity tool, he says, but about an HP solution.
A CONCEPTUAL FRAMEWORK FOR GCRM
Companies that strive to create value for customers across cultures face challenges in terms of both
macro and micro factors. The macro factors involve differences that affect entire countries or regions. Quickservice restaurants such as McDonalds have adapted their menus and their positioning of various elements of
the marketing mix to the largely vegetarian population in India. In Japan, comparative advertising is a
cultural taboo, and consumers are often attracted to the competitor. The micro factors involve individual
consumers within those countries or regions. We propose a conceptual framework for GCRM (see Figure 1)
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that consists of both macro and micro factors. We draw on ideas from Douglas and Craig (1995) to develop
the macro factors and from the research on cross cultural retailer-consumer relationships of De Wulf,
Odekerken- Schroder, and Iacobucci (2001) and there search of Kumar, Bohling, and Ladda (2003) to
develop the micro factors affecting GCRM.
Macro Factors Affecting GCRM
Macro factors include factors internal to the company as well as factors that are external to the company.
Internal factors include management objectives, corporate culture, and country-specific strategies of the
company. Factors external to the company include trade barriers and government regulations, characteristics
that are specific to the country and characteristics that are specific to the consumers in a country. Countryspecific characteristics such as market size and market growth, political and environmental orientation, and
the economic and market infrastructure impact a companys ability to conduct business in a specific country.
Consumer-specific characteristics such as cultural and religious habits, taboos and traditions and
consumption habits impact the reactions of consumers to product categories of interest to international
businesses, and to international businesses in general.
Micro Factors
Companies that seek to build relationships with individual consumers often engage in targeted marketing
activities such as targeted offers via direct mail or e-mail, personalized pricing in the form of targeted
coupons, loyalty programs and promotions, and interpersonal communications in an effort to foster warmth
and familiarity of the relationship with the consumer. These targeted marketing activities of the firm can
directly affect the perceived investment in the relationship with the consumer. Other marketing activities of
the firm can also have an indirect effect on perceived relationship investment. Companies engage in
traditional marketing activities such as advertising and distribution, which, though they impact the individual
consumer, are designed from a segmentation paradigm, rather than a customization paradigm. These affect
the consumers familiarity with the firms brands and should thus moderate the effect of targeted marketing
activities on perceived relationship investment.
GCRM ENVIRONMENT: CHALLENGES AND CONSIDERATIONS
As outlined above, firms operating in different countries or regions or a single firm whose operations span
multiple countries or regions must consider many factors in adopting a GCRM orientation. Thus, firms are
likely to face significant challenges, which can be grouped into four areas: technological; economic and
market; social and cultural; and (d) political, legal, and regulatory.
Technological
Although a customer-centric orientation does not require major investments in information technology
(IT), implementing CRM initiatives often does require significant computer hardware and software specially
for firms with large numbers of customers. Stefanou and Sarmaniotis (2003) proposed the following fourlevel conceptual model of CRM development stages:
1. non-IT-assisted CRM, which relies on manual Systems;
2. IT-assisted CRM, in which data is collected Manually but uses IT for analysis;
3. IT-automated CRM, which uses IT for customer Interactionwhat is often characterized as Operational
CRM;
4. integrated-CRM (I-CRM), which involves fully Integrated systems and analytical CRM.
The level of development of IT infrastructure impacts the amount and quality of customer information
available, the ability to analyze the data, and the firms communication capabilities through different
customer interaction channels or touch points.
Economic and Market
CRM may be of higher or lower priority depending on economic and market factors in different markets.
Kotler and Armstrong (2005) described four levels of industrial structure: subsistence economies, raw
material exporting economies, industrializing economies, and industrial economies. To date, the interest in
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CRM has been concentrated in industrial economies such as the United States and Western European
markets. In an empirical study involving B2B firms from 33 different countries from all regions of the world,
Montgomery, Yip, and Villalonga (1999) found that U.S. companies were faster than non- U.S. companies to
adopt global account management. Talukdar, Sudhir, and Ainslie (2002) used a unique data set that captures
the diffusion of six products in 31 developed and developing countries from Europe, Asia, and North and
South America (including developing countries such as China, India, Brazil, and Thailand) to draw empirical
generalizations about international product diffusion.
Social and Cultural
The vast majority of the extant CRM literature presumes a Western orientation (Berhad and Tyler 2002).
Embedded in this orientation are Western values of self-interested self-gratification that differ from typical
Asian values of filial piety, delayed gratification, loyalty to family, and Guanxi (connections and networks of
obligation). These differences in values impact a variety of customer-centric activities including the selection
of Incentives and rewards for loyalty and retention programs as well as the design of the customer experience
itself. To attract and retain valuable customers, the customer experience must be defined and understood
within the cultural context.
CONCLUSION
In practice, CRM is understood in a similar fashion globally. Companies irrespective of geographic
location value sound customer relationships. For firms operating in different countries or regions or for a
single firm whose operations span multiple countries or regions, regional differences require considerations
and pose challenges with regard to technology, economic and Market, social and cultural, and legal and
regulatory factors. Across cultures, companies concentrate on similar activities in implementing CRM. These
include collection and analysis of customer data, analysis of customers needs and value to the firm, customer
selection and acquisition strategies, customer development or expansion via up-selling and cross-selling,
development of retention strategies, strategy implementation and result tracking, and making appropriate
strategic changes for the future. Globally what is different, however, is the amount of financial commitment
to CRM. Companies in developed countries spend more on state-of-the-art technology and systems than
those in developing countries. As a result, they may achieve a higher return on their CRM investment than
those in industrialized countries

MAJOR LEADERSHIP CHALLENGES IN THE 21ST CENTURY

Ms. A.Archana, MBA Student, Nadar Saraswathi College Of Arts & Science, Theni
Ms. V.Keerthana, MBA Student, Nadar Saraswathi College Of Arts & Science, Theni

Abstract Leadership poses a host of challenges. They come in three categories: external (from people and
situations); internal (from within the leader herself); and stemming from the circumstance of being a
leader. They often arise in periods of instability or change, such when a program or period of work is
beginning or ending, or when a group or organization is in transition. Some are concrete and limited dealing with a particular situation, for instance - but many are more abstract and ongoing, such as
keeping your group focused on its vision over the long term. For each category of challenge, there are
strategies that can help leaders cope. For the external, these include: Be proactive, Be creative, Face
conflict squarely, Look for common ground, Be objective, Be collaborative. For internal challenges, some
strategies are: Listen, 360-degree feedback, Look at what's going on around you. Finally, strategies for
coping with those challenges that stem directly from the circumstance of leadership: Create mechanisms
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to review the vision, Share the burden, Find mutual support with those who share your experience, Take
time for yourselfIf you can employ some or all of these strategies to cope with the challenges that
leadership brings, you're likely to be an effective and successful leader.
INTRODUCTION
Leadership:
Leadership is a process by which a person influences others to accomplish an objective and directs the
organization in a way that makes it more cohesive and coherent. Leadership is the ability to take an average
team of individuals and transform them into superstars. The best leader is the one who inspires his workers to
achieve greatness each and every day.- Jonas Falk, a chef and the CEO of Organic Life,
Leadership challenges:
Being a leader is in itself a challenge. The challenges of leadership are really of three kinds: External,
Internal, The nature of the leadership role
External challenges:
It's almost impossible to imagine a situation where a leader doesn't have to cope with external
challenges. In an organization, such issues as lack of funding and other resources, opposition from forces in
the community, and interpersonal problems within the organization often rear their heads. Social, economic,
and political forces in the larger world can affect the organization as well. To some extent, the measure of any
leader is how well he can deal with the constant succession of crises and minor annoyances that threaten the
mission of his group. If the leader doesn't handle external challenges well, the organization probably won't,
either. We've all seen examples of this, in organizations where everyone, from the director to the custodian,
has a constantly worried look, and news is passed in whispers. The work of the group suffers. Some common
situations that call for leaders to use their resources include:

Public criticism, especially uninformed criticism, of your group or mission.

Flare-ups of others' interpersonal issues, either within the group or outside it.
Crises, which could be tied to finances, program, politics, public relations (scandals), legal concerns
(lawsuits), even spiritual issues (loss of enthusiasm, low morale).
Disasters. These are different from crises, in that, in a crisis, something important (usually negative,
but not always) seems to be happening, and you're trying to control the situation. In a disaster, the
worst has already happened, and you're trying to deal with that in some way.
Opposition and/or hostility from powerful forces (business groups, local government, an influential
organization, etc.)
A financial or political windfall. Sometimes an unexpected benefit can be harder to handle than a
calamity.
Collaboration with another group or organization may call upon a leader to define clearly the
boundaries within which he can operate, and to balance the needs of his own group with those of the
collaborative initiative as a whole.
Internal challenges:
Leaders are human. It means that they come with all the same problems and failings as everyone else.
One of the greatest challenges of leadership is facing ones own personal issues, and making sure they don't
prevent from exercising leadership. While leadership presents to each of us the opportunity to demonstrate
the best of what we are, it also exposes our limitations. In many cases, good leaders have to overcome those
limitations in order to transmit and follow their vision. Fear, lack of confidence, insecurity, impatience,
intolerance (all can act as barriers to leadership.
Insecurity: Many people feel, at least some of the time, that they're not up to the tasks they face.
They may even believe that they're fooling people with their air of competence, when they know
they're really not very capable at all. Insecurity of that sort keeps them from being proactive, from
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following their vision, from feeling like leaders. It can be crippling to both a leader and her group or
organization.

Lack of decisiveness. Sometimes it's hard to make a decision. You never know till later - and
sometimes not even then - whether you made the right decision. Maybe if you had a few more facts...
The reality is that leaders are called on to make decisions all the time, often with very little time to
consider them. It is important to have as much information as possible, but at some point, you just
have to make the decision and live with it
Inability to be direct when there's a problem. Many people want so badly to be liked, or are so
afraid of hurting others, that they find it difficult to say anything negative. They may be reluctant to
tell someone he's not doing his job adequately, for instance, or to address an interpersonal problem.
Inability to be objective. Objectivity is important in dealing with external issues, it's important to
monitor your own objectivity in general. There's a difference between being an optimistic individual
and being unable to see disaster looming because it's too painful to contemplate.
Impatience - with others and with situations. It may seem, given the importance of decisiveness
and firmness, that patience is not a virtue a leader needs. In fact, it is perhaps the most important trait
to develop.
Challenges from the nature of the leadership role
As a leader, he is responsible for his group's vision and mission, group's representative and
protector as well.
These responsibilities might be shared, but in most organizations, one person takes the largest part
of the burden
In addition to its, leadership brings such challenges as motivating people and also leaders have to
motivate themselves, and not just to seem.
They have to be aware of serving their group and its members. In other words, they have to be
leaders all the time.
Some other challenges:
1. Unreasonable customer expectations. Almost certainly, company provides a better level of
customer service than it did five years ago maybe better than it did just a year ago. But the customers are
not thank you for it. They judge not by how much the company improved, against their expectations. Thanks
to your competitors and thanks to the internet, these expectations are constantly increasing often to
unreasonable levels.
2. Generational shift in attitudes. For each generation there are particular experiences that mold
specific preferences, expectations, beliefs and work style.
3. Social media and the web. Are you a bit skeptical about all this social media stuff especially
Twitter? Yep, that used to be me. This is what changed my mind: who influences you more, formal company
advertising or what your friends and other people like you say about a product or service? Thats why social
media is big and will only get bigger. Business leaders who dont get it will struggle.
4. Flexible working. Under flextime, there is typically a core period (of approximately 50% of total
working time / working day) of the day, when employees are expected to be at work (for example, between
11 a.m. and 3 p.m.), Flexible hours, flexible workplace (including home working) and flexible contracts
5. Sustainability. The hard facts of rising energy prices and climate change on the one hand, and the
beliefs and values on the other, are driving every organization to become more sustainable. Becoming
sustainable while continuing to make profits is a major challenge for every organization and every leader.
6. Doing more with less. Every business is learning to do a lot more with a lot less, and the most
successful leaders will be those who can feat with economy.
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7. Motivating Employees
No organization, be it formal or casual, will get far if its workers are not motivated. Workers who lack
focus or are uninterested in the end goal are not usually very productive, and can often undermine a leaders
efforts and authority. Sometimes, the fix is as easy as clearly communicating the mission. In other instances,
leaders must work with employees individually to figure out an effective incentive structure.
Creating Team Unity
Leaders are often responsible for helping build unity between staff members. Teams that do not work
well together often take a lot longer to complete even routine tasks. It can take a bit of time for workers to
develop trusting relationships with one another, and the role of a supervisor or managers is to set the proper
framework to encourage these relationships to grow.
To cope with external challenges
Be proactive.
Regardless of the situation, it's important for leaders to do something. Waiting is occasionally the
right strategy, but even when it is, it makes a group nervous to see its leader apparently not exercising some
control.
Be creative.
Try to think "outside the box," i.e. in unexpected but effective ways. The leader should apply the
better solutions that meet new requirements, unarticulated needs, or existing market needs.
Face conflict squarely.
This doesn't mean come out fighting, but rather identify and acknowledge the conflict, and work to
resolve it. This is true both for conflict within the group, and conflict between the group and others outside it.
Far too many people, leaders included, act as if conflict doesn't exist, because they find it difficult or
frightening to deal with. As a result, it only grows worse, and by the time it erupts, it may be nearly
impossible to resolve. If it's faced early, nearly any conflict can be resolved in a way that is beneficial for
everyone involved. It's a function of leadership to have the mix of ideas in the organization can become
richer, everyone can feel that his point of view is taken seriously, and the whole staff can benefit.
Always look for common ground.
If there's opposition, it may only be to one specific part of it, or may be based on misunderstanding.
There are few groups or individuals who don't have some common interests. If the leader can find those, then
he may have a basis for solving problems and making it possible for people to work together.
Retain your objectivity.
The leader should preserve his objectives in the mind and he must works to attain those objectives in
a right path and at a right time. If he find any deviations then he should take right measures to avoid the
challenges
Coping with internal challenges
Listen.
Listen to people's responses to your ideas, plans, and opinions. Listen more than you talk. Listen to a
broad range of people, not just to those who agree with you. Probe to find out why they think or feel the way
they do. Assume that everyone has something important to say. If a leader hears the same things from a
number of different and diverse sources, the leader should at least consider the possibility that they're
accurate.
Ask for 360-degree feedback...and use it.
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This is feedback (people's views of you) from everyone around him- staff, volunteers, Board,
participants, people from other organizations or groups leaders works with - anyone you work with in any
way. As with listening, if he hears the same All the feedback in the world won't do any good unless you do
something with it.
Look at what's going on around you.
The leader should always be alert at any time. He should keep watch on the works of his groups
around him because, then only he can take a corrective action and it only helps him to achieve the target of an
organization smoothly
Coping with challenges from the nature of the leadership role
Create mechanisms to revisit your vision.
Hold occasional meetings and at-least-yearly retreats to discuss vision and renew commitment. These
will serve both to review the vision to see if it still resonates (and to rework it if necessary), and to renew
your and others' purpose and pursuit of it. They'll help to remind you of why you're doing this in the first
place, give you an opportunity to work on group solidarity, and - ideally - leave you feeling refreshed and
ready to carry on.
Share the burden.
Surround with good people who share your vision, it will both remove pressure from leader, and
make the group stronger. One of the greatest mistakes a leader can make is to be threatened by others'
abilities. In fact, sharing responsibility with capable people makes all of you more effective, and strengthens
your leadership. Having competent people to depend on also means that you can develop systems and know
they'll work. Organizational maintenance becomes much easier, and you have more time to devote to the
actual pursuit of your vision.
Find an individual or group with whom you can discuss the realities of leadership.
In many communities, some heads of organizations meet on a regular basis to talk about the
difficulties and rewards of their situations with others who truly understand. Some such arrangement can be a
valuable hedge against burnout, and It can introduce alternative ways of doing things, as well as giving a
chance to escape, and to realize that he is not alone.
Conclusion
By taking these steps, companies can fill their immediate gaps while building the enterprise capabilities
necessary to ensure that they thrive in the long run. But only in companies whose leaders endorse this
approach wholeheartedly, and where it can become ingrained in the companys culture, will such changes
take hold. Talent is Indias greatest opportunity, but it is also one of its biggest challenges. The same is true
for more and more businesses in other developing regions around the world. In each of them, it falls to
todays executives to ensure strong leadership for generations to come.
References
http://wiki.org.the leadership challenges
www.the leadership challenges.com

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CHALLENGES FOR MARKETING IN E-WORLD ERA

Ms. S. Bharani Pushpam, MBA Student, Nadar Saraswathi College of Arts & Science, Theni
Ms. A.Meenakshi, MBA Student, Nadar Saraswathi College of Arts & Science, Theni

Abstract Globalization and increasingly disruptive technologies continue to accelerate the speed at which
the world is changing. With the rise of pervasive networking, the explosion of big data, availability of
advanced analytics, prevalence of social media and the advancement in mobile technology, in the very
near future, digital and business will be synonymous. All marketing activities are directed towards as they
initiate production of goods and services. The service firm must understand how the consumer would
respond to different service feature, price, appeals etc. along with the major force in the marketing
environment. In this paper focus on the challenges faced by the marketing field and also how electronic
environment is utilized for marketing purpose.
Introduction
The 1990.s was a period of time when more and more noticeable became lowering efficacy of mass
marketing approach. Customers got far more demanding, their level of loyalty had significantly dropped,
while offering modern, high quality products became not sufficient to stay competitive and succeed in the
rapidly globalizing marketplace. According to the report of the Gartner Group from 1996, the most important
trends negatively impacting traditional marketing were: Less differentiation of products, Increasing
competition, Rising consumer expectations, Splintering mass markets, Diminishing effectiveness of mass
media, Heightened consumer privacy and security concerns. Almost at the same time the rapid development
of the Internet became a reality. Marketers were among the first who noticed the opportunities arising from
this fact and many of them put their strong faith in this new medium. The elements especially underlined
were interactivity of the new medium and its high potential for building close relationships with customers.
In this time there could be found numerous enthusiastic voices about abilities of the new marketing tools or
effectiveness of the Internet advertising. So, at the end of the .90s more and more common became opinions
that new marketing era became a fact.
Utilization of the Electronic Environment for Marketing Purpose
There is no doubt that on-line marketing tools have been quite commonly accepted by marketers.
According to a study of Double-click conducted in December 2001, one-half of surveyed European
marketers employs on-line marketing techniques, although their usage significantly differs between countries
In fact with development of the Internet, tool kit available to marketers has been significantly enriched. New
on-line marketing tools comprise:
Various forms of e-mail (from simple text messages to advanced HTML ones, employing Flash
technology),
Tools based on e-mail:
o Electronic newsletters (text and HTML ones), Discussion lists, Newsgroups, Auto responders
Web pages (the most popular on-line advertising medium) and numerous forms
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Of Internet advertising used there, e.g.:

o Banners (stationary, animated or interactive e.g. telebanner), Pop-up ads, Interstitials,
Superstitions, Poltergeist, Media break, Active Pilot, Charlie Behind (pop-out), Micro Ads
(sponsored links).
If fact as a result of the Internet usage for marketing purpose, this .one-side bombardment. Became far more
troublesome for consumers and it is expected that situation will be getting worse in the next few years.
According to Jupiter Media Matrix, by 2005 average consumer will be inundated with 3000 ad impressions
daily, 863 of those on-line. As it is commonly observed growing number of marketers tends to use on-line
various aggressive techniques in order to capture consumers attention. Most of them are employed on the
Web. Cyveillance in its study conducted in December 2001, identified top 10 intrusive technology tactics
currently used by marketers there.
Spawning. Automatic opening of a new browser window upon entering a Web site, upon exit or on
delay. Currently the most popular examples of this technique, forcing consumers to at least look at
advertising window before closing it are pop-up and pop-under ads. It is estimated that about 30% of
U.S. and 20% of European top sites use spawning. But despite such popularity among marketers, this
type of advertising is very negatively perceived by consumers. The result of it is their growing
interest in programs that can block spawned browser windows.
Mouse-trapping. These techniques disable consumers. Ability go back to the previous page, exit it or
close a Web page. According to Cyveillance study, about 5,2% of Web sites use this approach.
Invisible seeding. This tactic is based on unauthorized incorporation of popular brands names, key
words or phrases, unrelated to visible site content, within non-visible page elements (e.g. Meta tags).
The aim is optimization search engines rankings.
Unauthorized software downloads. highly aggressive approach which amounts to download of
software (e.g. containing embedded advertising ) onto the computer of consumer, without his/her
awareness and acceptance.
Unauthorized software downloads. highly aggressive approach which amounts to download of
software (e.g. containing embedded advertising ) onto the computer of consumer, without his/her
awareness and acceptance.
Spoof pages. Tactic is based on placing in a Web site special pages (containing selected words or
brand names) in order to attract search engine traffic for higher ranking on search results.
Typo-piracy and cyber squatting. Approach based on usage misspelled brand names in order to
divert traffic to an unintended Web site.
Changing home pages or favorites - unauthorized replacement of a home page setting or adding a
Web site address to the users .favorites" list.
Visible seeding. this tactic means incorporation of trusted brands, proprietary content or key words
within visible elements of page (e.g. title, URL) to optimize search engine rankings
Mislabeling links. Tactic based on false labeling of hyperlinks sending consumer to an unintended
destination.
Framing. Keeping consumer (convinced that he or she left a site) on the original Web site while
viewing the content of another, through the original sites window.
It is estimated that over 25% of all Web sites are now employing one of mentioned above tactics. One
of symptoms of such situation is continuously falling click-through rate, considered as important (although
not the only one3) metric of on-line advertising effectiveness. In the middle of 1996 the average CTR was
2,1%, in 1998 it was 1%, while in July 2001 it declined to 0,28% But consumers are not only bombarded
with advertisements on the Web. Since marketers very eagerly reach for e-mail as marketing tool, one of the
biggest problems consumers face today are numerous unsolicited messages containing ads4 received by them
almost every day. The motivation for spam usage is based on three elements
Minimal cost of obtaining new e-mail address,
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 The marginal cost of contacting additional consumer,

Easiness to deceive the consumer.

Taking into consideration all mentioned above issues, it seems that it can be distinguished three predominant
characteristics of utilization the electronic environment for marketing purpose, which can be observed
nowadays:
Rising aggressiveness,
Mass-marketing approach usage,
Fascination of technological novelties.
Challenges Emerging on the Threshold the New Marketing Era
The new marketing era means not only revising so far used paradigms or developing new approaches to
the relationship between a company and a consumer, but also emergence of challenges unknown in the
traditional .mass-marketing world. Although nowadays marketing seems to be on the threshold of the new
era, numerous challenges have already appeared - mostly ethical ones. They relate mainly to two issues
Utilization of various marketing techniques,
Consumer information protection
As the first issue is concerned, there is important question which should be asked. Namely, how the
new marketing tools and techniques will be used? In fact there are two options which may be followed:
Employing them in a short-sighted manner in order to achieve temporary benefits,
Their utilization in such way which will lead to establishing long-term relationships with customers,
based on mutual trust and satisfaction. Unfortunately, most of marketers prefer first approach which
raises numerous ethical concerns. Examples of such behavior are various aggressive techniques
employed on the Web as spawning .mouse-trapping. or cookies utilization. Also in case of e-mail
usage as a marketing tool, both approaches are easily noticeable.
Second challenge, which becomes more and more important on the threshold of the new marketing era, is
consumer information protection. While in mass marketing era customers of brick-and-mortar stores or
supermarkets were almost completely anonymous, with development of e-reality the situation has
dramatically changed. Because of technological advances (Internet technologies, CRM software)
organizations can easily collect very detailed information about their customers or prospects, as noticed by
Kelly, .on an unprecedented scale. And organizations have already started to do it. Survey of commercial
Web sites conducted by the Federal Trade Commission in March 1998 revealed that in case of the sites form
Comprehensive Sample (sample drawn from all commercial U.S. sites), 92% of them collected personal
information of various type. Their scope was very wide comprising name, e-mail and postal address,
telephone and fax number, credit card number, Social Security Number (SSN) etc.
Opportunities to Be Exploited
In spite of numerous opportunities emerging with internet-based technologies development, most of
marketers still fail to exploit them. It happens despite interactivity of the new environment and opportunities
for rapid, low cost communication. In that regard very good example seems to be response rate to customer
service e-mail enquiries. According to report of Jupiter Media Matrix, in case of almost one-third of U.S.
brick-and-mortar retail companies operating online, their response time was more than 3 days or there was no
response at all. What can be really amazing in case of Dot-Coms, results were even worse. Since these
processes are adjusted to the mass marketing reality they require implementing deep changes, otherwise
companies will fail to exploit numerous opportunities offered by electronic environment. It relates to many
aspects as scope of new tools utilization, Policy of their usage, Employees. Training, Shifts in so far used
procedures, Changes in workers. Scope of responsibilities, Integration on-line and off-line activities. For
example many opportunities for implementation one-to-one marketing approach have financial institutions as
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banks. The most important elements deciding about it comprise Possibility of each customer identification
and detailed information about him or her, Intangible character of offered products, Utilization of various
communication channels, Usage of numerous distribution channels.
Conclusion
It seems that for the time being opinions that marketing has already entered the new era are obviously
premature. In fact it is rather on its threshold. As it can be commonly observed, relatively low number of
marketers perceive specificity of the new medium and the whole opportunities it provides, while majority of
them follows stereotypical mass marketing approach. Instead of utilization new tools and techniques for
building long-term relationships with customers, which is undoubtedly difficult and arduous process, they
prefer to use them in the manner characteristic for .interruptive marketing, bombarding, clients more heavily.
Now both: on-line and off-line. It is very short-sighted policy and undoubtedly this is not the right way to
achieve success in the new reality. Reality only those of them who will understand peculiarity of the new
business environment and redesign their marketing processes can succeed.
REFERENCE
www.cyveillance.com
www.emarketer.com
THE IMPACT OF ELECTRONIC COMMERCE ON BUSINESS LEVEL STRATEGIES
Ms. K.Kokila, MBA Student, Nadar Saraswathi College of Arts & Science, Theni
Ms. N.Prabha, MBA Student, Nadar Saraswathi College of Arts & Science, Theni

ABSTRACT This paper examines the impact of electronic commerce on business-level strategies. The
paper examines electronic commerce (E.C) from the perspective of intra-business E.C, business-tobusiness E.C, business-to consumer E.C and value/supply chain management. Business-level strategies
are considered to include: added value, differentiation, cost leadership, focus, and growth source. The
paper concludes that E-commerce will have significant impacts on each of the business-level strategic
areas.
Introduction
The proliferation of electronic commerce throughout business organizations is having profound
effects on business strategies. "The rules of competition are being re-written and redefined as the
technological revolution continues, particularly in the area of world-wide commerce." "Electronic commerce
has evolved from a high-tech marvel to a corporate initiative." Electronic commerce can no longer be ignored
or thought of only as an I.T. project.
Electronic Commerce
Electronic commerce means using the Internet as a distribution channel to market and sell goods and
services to the consumer. This narrow definition really defines only Internet commerce. Electronic commerce
is much broader in what it encompasses. According to Malcolm Frank, V. P. Marketing, Cambridge
Technology Partners, electronic commerce is the electronic exchange of information, goods, services, and
payments and includes the creation and maintenance of Web-based relations. Therefore, E.C. is not limited to
the Internet, intranets, extranets, electronic data interchange (EDI), and others. They are: Intra-business E.CBusiness-to-Business, E.C. Business-to-Consumer E.C, and electronic commerce applications within the
value chain, including the supply chain and the demand chain. Intra-business
Intra-Business
Added value
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Electronic commerce technologies are affecting the way organizations are creating value both
internally and externally. Within the organization, increased information access and improved
communications using e-mail, point casting, etc. on the corporate intranet are evidence of this happening.
Companys communications and information flow are enhanced from easily obtaining information about
industry statistics, new vendors, or the competition via the Internet. "E-mail plays a large part in improving a
company's regular operations.
Differentiation
Businesses are using electronic commerce to implement mass customization strategies, producing
large Numbers (mass) of customized items, to differentiate their products and services. Existing products can
be customized in innovative ways. For example, one business creates customized compact disks. Customers
purchase compact disks that are tailored according to the their music selections
Cost Leadership
Electronic commerce decreases distribution costs through a reduction in overhead such as:
inventory, retail space, and personnel. In addition, the inefficiencies associated with paper processing are
decreased or eliminated."The main impact of the growth of e-commerce will be on reducing costs for the
consumers or purchasers. 'Ecommerce takes away a great deal of the cost. Having a store and inventory are
things companies don't want.' These costs should be passed down to the purchasers.
Focus
Using An offs model of Strategies for Increasing Scope, electronic commerce affects the ability for a
business to increase its scope and extend its core mission through market penetration, market development,
product development, or business development strategies.
Market Penetration :
The novelty and ease of purchasing a product or service via the Internet is a natural progression to
increased market penetration. Firms that have the foresight and expertise to be the first to implement internet
commerce technology that supports their product marketing and distribution will be in the driver's seat.
Market Development :
The Internet is having significant effects on market development strategies. "Market development
strategies are attempts to promote existing products in new markets, in effect broadening the scope of the
business by finding new market segments or new channels.
Growth Source
Electronic commerce is affecting the way business strategists are planning growth strategies and is the
leading driver of corporate growth. Information technology is continuing to be an integral part of the business
plan and within I.T. electronic commerce is the number one initiative. In order for this change to be
embraced, "it is essential to alter the way in which information technology is viewed within the organization.
Business-to-Business
Added Value
Electronic commerce is a natural way for business to create value by aligning themselves with their
customers, suppliers, employees and many others. Types of business-to-business electronic commerce
applications include: electronic data interchange, electronic funds transfer, electronic forms, integrated
messaging, and shared databases. Business-to-business processes provide sharing of data and increased
information access through corporate extranets.
Differentiation
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Electronic commerce differentiates products and services through integrated business strategies. For
example, "Successful high-tech companies will connect their internal research and development to their
suppliers' R&D labs for concurrent engineering.
Cost Leadership
Strong business-to-business alliances can be established in the procurement process complementing a
cost- leadership strategy. For example, sharing information and electronically processing business
transactions can improve the buyer-supplier relationship by allowing the buyer: to use automated search tools
to identify the exact product or products they are seeking, to obtain accurate, customer-specific pricing, to
check product availability, to review total order costs, including tax and shipping expenses, to order with the
click of a button, to choose from a number of payment methods, to track the status of an order until it is
delivered.
Focus
Electronic commerce in many cases can radically change the balance of power in buyer-supplier
relationships, raise barriers to entry and exit, and shift the competitive position of industry participants.
Barriers such as: technology, regulatory, economic, social and structural is shifting.
Growth Source
An alternative for providing growth is expanding into an existing business through vertical integration
and expanding the value chain either by getting closer to the customer or by getting closer to the suppliers.
Mergers and acquisitions can facilitate this process. Business-to-business relationships are designed as being
"complimentors".
Business-to-Consumer
Added Value
Internet commerce is affecting the way in which businesses are enriching their products and services.
An example, of adding value to retailing online, is to create a total experience around a lifestyle, much like
the image merchants create with boutiques on a retail selling floor. Another recent example is
www.WeddingChannel.com.
Focus
Businesses can target the consumer through "e-tailing". Some businesses will use this new marketing
channel to compliment their existing channels, whereas, others will sell their products or services only on the
Internet. Regardless, of the strategy, they can gain competitive advantage by narrowing the competitive scope
of the business to specific segments.
Growth Source
Electronic commerce on the Internet creates new marketplaces. Electronic markets support seller and
buy renegotiations using a bidding process. Once a contract is agreed upon it can be executed on or offline.
These online electronic marketplaces are increasing price competition and creating avenues for
entrepreneurial business growth.
Value Chain/Supply Chain Management
Value Added
Doneger's corporate strategists recognize the value of business-to-business relationships among the
value chain. At Doneger, they help retailers set up Web pages. "They want to allow consumers to see
manufacturers products, have them type in their zip code or area code and immediately get a list of Doneger
stores in their market that carry the items."
Differentiation
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Internet commerce is causing businesses to rethink how their products and/or services can be
enhanced through a web-page differentiation strategy. "Through an information partnership, diverse
companies can offer novel incentives and services or participate in joint marketing programs.
Cost Leadership
"By opening up the lines of communication, intranets facilitate the management of another 1990's
phenomenon: the virtual corporation.
Focus
Focus strategies reflect the perspective of the seller or producer. Value chain/supply chain
management e commerce has the potential to change the power of buyer/supplier relationships.
Growth Source
Old business strategy needs to think in a different ways. In physical retailing, the most important
thing is location. In Internet commerce, the most important thing is technology, technology, technology.
Conclusion
As Malcolm Frank of Booz-Allen has stated, "The Internet, particularly through its ability to
enable electronic commerce, will rewrite the rules of entire industries. Those firms that become masters of
electronic commerce will have vast new opportunities made available to them. Those that do not will quickly
become irrelevant, because competing in the new millennium without electronic commerce capabilities will
be similar to trying to compete today without a sales force or a telephone." It is creating fundamental changes
in the ways those businesses operate their functions and, more importantly, in the way they compete their
business-level strategies. Doing so will require a reorientation of how management views electronic
technology: it must be viewed as an engine of growth and profit rather than as a cost. It includes rethinking
relationships with the firm's entire value chain, and will change not only businesses and their strategies, but
industries and entire economies, as well. We are in the beginning of the Information Age a change that has
the potential to make the Agricultural and Industrial Revolutions pale by comparison.
Reference
Book: Strategic management and business policy by Azhar Kazmi 3rd edition
Websites
www.businesscasestudies.co
www.earthrenewal.org
www.synaxiom.com
FISCAL DEFICITS REASONS AND RECOVERY STEPS
Ms. P.Muthulakshmi, MBA student, Nadar Saraswathi College of Arts and Science, Theni
Ms. R.Abinaya, MBA student, Nadar Saraswathi College of Arts and Science, Theni

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Abstract This paper examines the long term profile of fiscal deficit and debt relative to
GDP in India, with a view to analyzing debt-deficit sustainability issues along with the
considerations relevant for determining suitable medium and short-term fiscal policy
stance. The impact of debt and fiscal deficit on growth and interest rates that arises from
their effect on saving and investment are critical in any examination of sustainability of
debt and deficit. It is argued that large structural . Primary deficits and interest payments
relative to GDP have had an adverse effect on growth in recent years. The Fiscal
Responsibility and Budget management Act (FRBMA) of the central government has
certain positive features. While the fiscal deficit target has been defined, it should be
considered in conjunction with a target debt-GDP ratio. Further, the central FRBMA
should be supplemented by state level fiscal responsibility legislations and an effective
hard budget constraint on sub national borrowing. There is a clear need to bring down the
combined debt-GDP ratio from its current level, which is in excess of 80 percent of GDP.
The process of adjustment can be considered in two phases: adjustment phase and
stabilization phase. In the adjustment phase, fiscal deficit should be reduced in each
successive year until revenue deficit, and correspondingly, government dissaving, is
eliminated. In the second phase, fiscal deficit could be stabilized at 6 percent of GDP.
Introduction
High levels of fiscal deficit relative to GDP tend not only to cause sharp increases in the debt-GDP
ratio, but also adversely affect savings and investment, and consequently growth. The usability of fiscal
policy as a tool of countercyclical intervention is also compromised when fiscal deficit is high and structural
in nature. This paper examines the long term profile of fiscal deficits in India, its impact on growth that arises
from its impact on savings and investment, which may occur directly or through its effects on interest rates
and inflation. It also looks at relevant considerations for determining levels of debt and deficit relative to
GDP at which these should be stabilised in India, given the current configuration of key determinants like the
revenue to GDP ratio and public and private saving rates consistent with the objective of achieving higher
growth. The combined fiscal deficit of the centre and states stood at 9.3 present of GDP in 1990-91. There
was a clear improvement in the early nineties. After falling to 6.26 present in 1996-97, the fiscal deficit to
GDP ratio started rising again and was around 10 percent in 2001-02 and 2002-03. Although only marginally
higher than that in 1990-91, this level of fiscal deficit was qualitatively much different because it was
accompanied by much higher levels of the debt-GDP ratio, the ratio of interest payments to revenue receipts,
and the share of revenue deficit in fiscal deficit. The debt-GDP ratio has risen from 61.7 present in 1990-91
to about 76 present in 2002-03, when external debt is considered at historical exchange rates and liabilities of
states on account of reserve funds and deposits are not included. When these are included and external debt is
evaluated at current exchange rates an upward adjustment of about 9 percentage points of GDP is called for,
consisting of 3 and 6 percentage points for the two factors, respectively, taking government liabilities to
about 85 present of GDP at the end of 2002-03. This paper is divided into seven sections.
Theoretical Perspectives
There is no agreement among economists either on analytical grounds or on the basis of empirical
results whether financing government expenditure by incurring a fiscal deficit is good, bad, or neutral in
terms of its real effects, particularly on investment and growth. Among the mainstream analytical
perspectives, the neo-classical view considers fiscal deficits detrimental to investment and growth, while in
the Keynesian paradigm, it constitutes a key policy prescription. Theorists persuaded by Ricardian
equivalence assert that fiscal deficits do not real1ly matter except for smoothening the adjustment to
expenditure or revenue shocks. While the neo-classical and Ricardian schools focus on the long run, the
Keynesian view emphasises the short run effects.
The Neo-Classical View
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The component of revenue deficit in fiscal deficits implies a reduction in government saving or an
increase in government dis-saving. In the neoclassical perspective (see, e.g. Bernheim, 1989), this will have a
detrimental effect on growth if the reduction in government saving is not fully offset by a rise in private
saving, thereby resulting in a fall in the overall saving rate. This, apart from putting pressure on the interest
rate, will adversely affect growth. The neo-classical economists assume that markets clear so that full
employment of resources is attained. In this paradigm, fiscal deficits raise lifetime consumption by shifting
taxes to the future generations. If economic resources are fully employed, increased consumption necessarily
implies decreased savings in a closed economy. In an open economy, real interest rates and investment may
remain unaffected, but the fall in national saving is financed by higher external borrowing accompanied by
an appreciation of the domestic currency and fall in exports.
Keynesian View of Fiscal Deficits
The Keynesian view (see, e.g., Eisner, 1989), in the context of the existence of some unemployed
resources, envisages that an increase in autonomous government expenditure, whether investment or
consumption, financed by borrowing would cause output to expand through a multiplier process. The
traditional Keynesian framework does not distinguish between alternative uses of the fiscal deficit as
between government consumption or investment expenditure, nor does it distinguish between alternative
sources of financing the fiscal deficit through monetisation or external or internal borrowing.
Ricardian Equivalence Perspective
In the perspective of Ricardian equivalence (e.g. Barro, 1974, 1976, 1979, 1987, 1989), fiscal deficits
are viewed as neutral in terms of their impact on growth. The financing of budgets by deficits amounts only
to postponement of taxes. The deficit in any current period is exactly equal to the present value of future
taxation that is required to pay off the increment to debt resulting from the deficit. In other words,
government spending must be paid for, whether now or later, and the present value of spending must be equal
to the present value of tax and non-tax revenues. Fiscal deficits are a useful device for smoothening the
impact of revenue shocks or for meeting the requirements of lumpy expenditures, the financing of which
through taxes may be spread over a period of time. However, such fiscal deficits do not have an impact on
aggregate demand if household spending decisions are based on the present value of their incomes that takes
into account the present value of their future tax liabilities
Medium and Short Term Fiscal Policy Stance:
The management of fiscal deficit needs to distinguish between the long term or trend growth after
adjusting for the cyclical component of growth and correspondingly between structural or cyclically neutral
deficit and transitory deficit. The structural deficit must be determined within a sustainability framework
aiming at maximising trend growth rate. The short-term component of fiscal deficit should be used to
minimise the impact of cyclical changes while keeping the economy along its long term growth path. The use
of discretionary expenditure to stimulate the economy when it is below potential output and contain
inflationary pressure when prices are above trend levels is meant to serve the objective of macroeconomic
stabilisation. The neo-classical analysis argues about the deleterious effect of high permanent deficits on
savings and suggests stabilising fluctuations around the equilibrium path with high rather than low level of
national savings.
Difference between fiscal deficit and current account deficit
Fiscal deficit is a percentage of the nations GDP and can be considered as an economic event in which
the government expenditure exceeds its revenue. Meanwhile, current account deficit occurs when the
countrys imports are greater than the countrys exports of goods, services and transfers. Most developing
countries run a short term current account deficit to boost domestic productivity, which could lead to increase
in exports in the future.
After Indias current account deficit hit a historic high of 6.7 percent of GDP in Q3 of last fiscal year, it was
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at 5 percent of the GDP in the year ended March, making the rupee weak and also making way for lower
interest rates.
Indias fiscal deficit and its current affairs
According to government data, Indias fiscal deficit during 2012-13 financial year was
4.9 percent of the nations gross domestic product. While China aims to keep its fiscal deficit
below 3 percent this year, lets take a look at how fiscal deficit is making news in India.
Curbing import on gold is one of the measures taken by the government to correct the
countrys fiscal deficit. But with a weakening rupee and increase in global oil prices, the
finance minister might put a cap on the countrys expenditure to avoid pressure on fiscal
deficit. In previous years, growing fiscal deficit has given rise to the balance of payment
crises. But in the recent years, the government has taken action steps to correct the situation
by cutting service taxes, excise duty and carefully stepping up government expenditure. Fiscal
deficit has been a key concern for credit rating agencies and RBI is likely to be on alert when
it pays its debt because paying high interests with cautious investors amid rising deficits might
not be considered a smart move.
Conclusion:
This paper has looked at the impact of fiscal deficits on saving, investment, and growth in the light
of the theoretical literature on the subject in the context of the fiscal deficit and debt on the combined
accounts of the central and state governments. Revenue deficits amount to reduction in government savings,
which may not be fully offset by a corresponding rise in the private savings, leading to a fall in the overall
saving rate. The impact of fiscal deficit on investment arises both from its impact on private investment and
government investment. The adverse effects on private investment occur if fiscal deficits put pressure on
interest rates, and if private investment is sensitive to the interest rate. The effect on government capital
expenditure is through committed interest payments, which rise if the debt-GDP ratio rises and/or interest
rate.
Reference:
www.investopedia.com
www.govermentindia.org

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LEADERSHIP CHALLENGES IN THE 21ST CENTURY

Ms. M.Subhasheeni, MBA Student , Nadar Saraswathi College Of Arts & Science, Theni
Ms. G.Nima, MBA Student , Nadar Saraswathi College Of Arts & Science, Theni

Abstract The twenty-first century was predicted to bring a highly challenging competitive landscape and it
materialized in the first decade of the new century. Scholars and practitioners alike argued that managers
would have to develop and use unique capabilities to be successful strategic leaders in this challenging
competitive landscape. Here some leadership challenges, action value to Developing a shared vision that
is future. 7 leadership development trends and conclusion. This paper discuss about the topics 16 types of
Leadership challenges in 21st centuries , A Conceptual Framework for Community Action Leadership
Development, Action Values, The Role of Leaders, Toward 21st Century Leadership Development, 7
leadership development trends.
INTRODUCTION
st
th
Why is leadership in the 21 Century different to leadership in the 20 Century? Because the
challenges are different. Here are key challenges all business leaders face in the early years of the
st
21 Century
21st Century Leadership Defined
The task force concluded that leadership development for the 21st century is holistic: it is centered in
groups or organizations, rather than individuals, and engages the group in heart, mind, spirit, and energy. The
driving forces of this philosophy, then, are community, the heart of a group's leadership; vision, which
engages the spirit; learning, which stimulates the mind; and action, which compels energy.
LEADERSHIP CHALLENGES IN 21st CENTURY
Personal leadership in the 21 century is all about how you lead yourself in your own life. It's about the
decisions you make and the actions you take, whether people are watching or not. It's about learning to trust
your own actions so that others can learn to trust you. It's about developing the habit of doing the right thing
all the time, even when it causes you inconvenience, expense or embarrassment.
1. Challenge The Foundation Bad things happen when your foundation is shaky. If the core values,
vision, and strategy arent sound and aligned, everything else will suffer. If you dont have a clearly
articulated direction and purpose, how can you expect to achieve the right outcomes? The best leaders stand
for something bigger than themselves, and theyre driven by more than just profit motive. They understand
the value of a purpose driven business.
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2. Challenge The Destination Leadership isnt destination based its a continuum. Great leaders think
beyond the outcome. They think about what if and whats next. They dont get trapped in the journey to a
specific destination, but remain in constant search of discovery in order to seek new and better opportunities.
3. Challenge The Promise Is your brand promise on target? Is it deliverable? Is it sustainable? If you
cannot keep your promise to customers, you wont have much of a business to worry about. Few things
hinder the advance of a business like a brand in need of a refresh.
4. Challenge the Model - Not all business models are created equal. Furthermore, just because you have a
business model doesnt mean its the right one, or that its sustainable. Break the business model down from
the revenue engine all the way down to the distribution model and delivery strategy.
5. Challenge The Information Not all inputs are created equal. Dont think big data think good data.
Smart leaders understand theres a difference between gut instincts, data, information and knowledge.
Furthermore, as much as some dont want to hear this, opinion and theory arent always synonymous with
fact and reality. Agendas and bias often pervade the information flow, so trust and credibility must factor in
when assessing information quality.
6. Challenge The Organization - Ive been around long enough to see almost every type of organizational
design come and go, only to come again. A great example of this would be Matrix organizations, or what I
call the corporate version of the Matrix Trilogy. The Matrix model has been around for nearly 30 years.
While many organizations have killed the Matrix, some have readopted it, others have remained trapped in
the Matrix for decades, but virtually every large enterprise using it is over-matrixes.
7. Challenge The Culture - Every organization has a culture. Some are carefully created and curated by
design, and others evolve by default. Some are toxic; some are barely surviving on life support, while others
are healthy and vibrant.
8. Challenge The Talent - Many things benefit from compromise, but talent is not one of them. If you settle
for anything less than acquiring, deploying, developing, and retaining the best talent possible, shame on you.
Ive often said, leaders deserve the teams they build. If you cannot seamlessly mobilize and deploy the best
talent to your greatest opportunities or your biggest risks you have a problem.
9. Challenge The Complex - Dont fall into the trap of believing sophistication is synonymous with
complexity its not. Great leaders challenge all things complex, and if theyre smart, they look to simplify
everything. Whether its strategy, organization, process, or execution, if its complex it needs to be
reimagined.
10. Challenge Yourself - The truth is most leaders are skilled at challenging others, but are woefully
inadequate when it comes to challenging themselves, or allowing others to challenge them. When leaders
hold themselves to a higher standard of rigor, discipline, accountability, and transparency everyone wins.
11. Unreasonable customer expectations. Almost certainly, your company provides a better level of
customer service than it did five years ago maybe better than it did just a year ago.
12. Generational shift in attitudes. If you dont know whether you are a baby boomer, generation X or
generation Y you need to find out fast, before you make the major mistake of assuming that other generations
are motivated by the same things that motivate you.
13. Social media and the web. Are you a bit sceptical about all this social media stuff especially Twitter?
Yep, that used to be me. This is what changed my mind: who influences you more, formal company
advertising or what your friends and other people like you say about a product or service? Thats why social
media is big and will only get bigger. Business leaders who dont get it will struggle.
14. Flexible working. As frugal times continue (see item 6 below) why would any organization want to pay
for offices and desks that are unused half the time? If your company hasnt yet moved towards flexible
working it soon will. Flexible hours, flexible workplace (including homeworking) and flexible contracts
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15. Sustainability. The hard facts of rising energy prices and climate change on the one hand, and the beliefs
and values of Gen Y on the other, are driving every organization to become more sustainable. Becoming
sustainable while continuing to make profits is a major challenge for every organization and every leader.
16. Doing more with less. Whether you live in rapidly growing China or recession hit Europe the days of
organizational profligacy are over. Every business is learning to do a lot more with a lot less, and the most
successful leaders will be those who can triumph with frugality.
A Conceptual Framework for Community Action Leadership Development
The framework is composed of four parts. The first part, described earlier, is driven by a holistic philosophy
of community, vision, learning, and action. These forces form the outline of the task force view of leadership.
The second part of the framework relates these elements to seven action-based values.
Action Values
Embedded in the CALD definition are seven action values.
1. Visioning Together. Developing a shared vision that is future-focused and built on a group's strengths
is an essential starting point. Visioning engages the spirit, gives meaning and purpose to group efforts,
and allows members to rise above self-interest and maintain motivation. A shared vision provides a
boundary for action.
2. Leading Together. In "leaderful" organizations, leadership roles are shared and everyone takes
responsibility for group process and action. Trust, developed in part through honest and open
communication, is the foremost requirement. Designated leaders promote the development of each
person by modeling, inspiring, teaching, delegating, and serving.
3. Learning Together. Effective CALD is based on knowledge, which provides substance to a vision and
informs action. Group members bring knowledge but also build knowledge through learning cycles.
Learning cycles involve planning, acting, and reflecting together.
4. Building Community. At the heart of CALD is a caring community with strong, trusting intragroup
relationships forged by visioning, leading, learning, and acting together. A sense of community is
reflected in feelings of identity and commitment, in acceptance and appreciation of diversity, and in
constructive processes for examining and mediating conflict.
5. Developing Energy. Collective energy is a group's ability to develop or obtain the resources necessary
to achieve its goals. To nurture it, a group must focus on organizational development or capacity
building. Collective energy requires promoting collective ownership in visioning, learning, planning,
decision making, and action.
6. Acting Together. Acting together focuses collective energy and gives life to a vision. The action
process requires teamwork, political analysis and strategizing, and the astute organizing of a
community's assets and resources. Facilitators--designated leaders or consultants--must be committed
to the process, dedicated to the welfare of the group, and detached from a need to hold power and
control.
7. Communicating. A group engaging in CALD must have strong interpersonal communication.
Improving communication requires the practice of dialogue--listening to understand, reflecting on one
another's opinions, keeping open-minded attitudes, and ultimately, discovering common ground
amidst diversity. Collecting and exchanging valid and reliable information builds trust, contributes to
effective co-learning, and helps ensure relevant and well-targeted actions
Toward 21st Century Leadership Development
Cooperative Extension is poised to make community action leadership development its hallmark of
the 21st century and its unique and timely contribution to the burgeoning field of community leadership
development. It is important to note that this conceptual framework is not a prescription. It is not a program
or a curriculum. Leadership development in this conception is not a commodity to deliver. Also, it is not a
how-to manual or an iteration of current practice. It is, rather, a perspective, a set of ideas, a way of thinking-the architecture underlying multiple variations of community action leadership development. Its purpose is to
provide a contemporary, vision-driven, value-based guide for thinking about, working in, and organizing
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community action leadership development. Embracing this way of thinking, however, may require substantial
changes in personal practice, conceptual thinking, and organizational application.
leadership development trends
What jumped out at me were the seven trends identified in the research as driving leadership
development in the 21st Century. They are: Organizations must prioritize investments in leadership
development , Organizations must create and implement both a leadership strategy and leadership
development strategy. Leadership competencies must be renewed, Leadership must be
globalized, Leadership development now targets all leader audiences., Leadership development solutions
need to evolve as a process, not a one-time event.
Conclusion
High performing organizations that continuously invest in leadership development are now defining new
21st century leadership models to deal with todays gaps in their leadership pipelines and the new global
business environment, said Josh Bersin, chief executive officer and president, Bersin & Associates, in a
press release about the leadership study. These people-focused organizations have generated nearly 60
percent improved business growth, reported a 66 percent improvement in bench strength, and showed a 62
percent improvement in employee retention, he said. And our research shows that it is not enough to just
spend money on leadership training, but rather to follow specific practices that drive accelerated business
results.
Reference:
www.21stcenturyleader.co.uk
www.amacad.org
www.nvc.uoregon.edu
www.coursera.org
www.forbes.com

THE IMPACT OF BUSINESS STRATEGY IN ELECTRONIC BUSINESS

Ms. T.Saranya, MBA Student, Nadar Saraswathi College of Arts & Science, Theni
Ms. M.Deepa, MBA Student, Nadar Saraswathi College of Arts & Science, Theni
Abstract E-business is fast becoming an important initiative for companies to consider, one that impacts
every aspect of how a business is run. This report investigates the impact of e-business implementation on
various aspects of the organization including; strategy, human resources, customer relationship
management, the IT department, technology, the business environment, trust, service management and
performance metrics. Implementing e-business applications will require process redesign, organizational
restructuring and alignment, new job descriptions and reviewed and revised policies. Organizations will
also have to examine tax, legal and security issues. E-business is changing all the rules and
Models. An organizations ability to embrace new technology and business models is key to increasing the
organizations productivity. The Internet economy necessitates a fundamental transformation of
traditional organizations. The true benefit of e-business is achieved through the digitization of the entire
value chain. For a successful e-business implementation it is important that decision-makers understand
the nature of these changes, their potential impact, plan for them and manage the entire process in such a
way as to ensure buy-in of all therelevant stakeholders. The decision to implement an e-business initiative
should not be undertaken lightly and the benefits that can be gained from such a venture must be
investigated thoroughly before deciding to go ahead
Introduction
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Business is fast becoming an important initiative for companies to consider, one that impacts every aspect
of how a business is run. This report investigates the impact of e-business implementation on various aspects
of an organization. The way in which companies and end-users conduct business will change, ultimately
driven by the emergence of new business models brought on by the evolution of the Internet.
Strategy: E-business as any process that a business organization conducts over a computer-mediated
network. It includes buying and selling, as well as a wide range of customer-, production- and management
focused processes carried out by for-profit, government or non-profit entities. E-business is based upon the
processing and transmission of digitized information, including text and visual images from one computer or
some other electronic device to another. E-commerce is that part of e-business which involves buying and
selling goods and services. According to Agarwal, e-business is any net-enabled business activity that
transforms internal and external relationships to create value and exploit market opportunities driven by new
rules of the connect economy. Furthermore, e-business involves the continuous optimization of an
organizations value proposition and value-chain position through the adoption of digital technology.
Industry
and
company
readiness:Is our company
or
industry prepared
for ebusiness? Should werapidly develop e-business capabilities? How willour internal processes and skills need
to be altered to make a successful transition to e-business?
2. Channel conflict: How will our channel partners act to our entrance to the e-business realm? How large a
risk is channel conflict? What steps can we take to mitigate that risk?
3. Prioritizing e-business initiatives: Which elements of e-business need our immediate attention? Which
projects should be funded and which need to be placed on hold?
4. Market models: Which models are successful organization such as ours? What considerations need to be
made before adopting a market model?
5. Organizational design: What changes need to be made to our existing internal structure to facilitateour ebusiness initiative? Which organisationalstructures work and which do not? How can we ensure employee
buy-in?
Requirements for a sound e-business strategy
Ernst & Young reports that without a clear e-business strategy, there is a real risk that the link between the
existing business strategy and any e-business initiatives will be unclear or even non-existent. It is likely to be
difficult to define and measure how initiatives will benefit the organization if the strategic goals they support
have not been defined. Ultimately this means inefficient use of both funds and talents
3. Human resources
It is important to have the right people in place to take on the significant changes demanded by e-business.
Because of the fast change e-business related technology is going through, more is expected of employees
than before, and todays expectations wont be the same tomorrow . In this evolving economy, workers are
constantly asked to update and expand their own skill assets, much as companies are shifting business
processes to meet market demands. Cross-functional training and empowering employees are techniques that
can be used to improve employee skills sets. Boomer [3] reports that76% of IT professionals feel that ebusiness facilitates cross-functional work teams, which has a significant impact on employees workloads and
the company culture.
4. Customer relationship management
The Internet has radically changed the notion of value as perceived by customers. Businesses have realized
that todays consumer requires convenience in the shopping process: they require personalization, want
competitive prices and expect speed in service. Each business needs to evaluate how it can deploy technology
in order to tip the value equation in its favors [23].E-business is having an impact on customer relationships
on various levels. The concept of customer sovereignty and the absolute necessity of firms satisfying
customer needs. Furthermore a breakdown in specialized economic role of producers and consumers is
occurring.
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Efficient consumer response

Until now the efficient consumer response (ECR) strategy has stressed the need to increase the end-to-end
efficiency of the value chain in order to meet consumer needs better and faster. It has emphasized the
importance of new replenishment processes, such as continuous replenishment programmer (CRP), crossdocking and direct store delivery, as well as the need to establish electronic communication links in order to
support them. The e-business paradigm goes well beyond that, relying not on the mere existence of electronic
links between companies, but on the integration of processes at an inter-organizational level
Technology
E-business is causing a change in how companies think about technology. This change is inevitable as then
option that e-business tools and concepts can be bolted onto current practices is a fallacy [16]. IT and
business must work seamlessly. No longer relegated to the back office, technology has become an integral
part of e-business enabled business processes. Reengineering is at all order in any company, but integrating
business and technology functions is especially difficult. In trying to bring about e-business transformation,
companies have generally focused too much of their attention on technology. But systems do not work in
vacuum, and senior managers must recognize the complementary nature of technology, business processes
and e-business readiness throughout the value chain. By taking a more holistic view, managers can turn those
Facets of a companys operations into the drivers of e-business excellence.
Financial evaluation
Large organizations are finding that traditional capital budgeting methods are difficult to apply to projects
that employ Internet technology. E-commerce forces executives to adopt a non-traditional approach to
measuring the payoff of a project. In traditional financial analysis, managers project the cash out- and inflows
associated with projects. Discounting for the time value of money, managers calculate the net present value
(NPV) of the project. If the NPV is positive, then managers should fund the project because it will generate
value for the company in excess of the cost of the capital required to fund the project. If the NPV is negative.
Supply chain management
Integration of supply chain management (SCM) functions is emerging as one of the greatest challenges
of companies embarking on e-business initiatives. SCM is the integration of business processes from end
user through to original supplier. The goal of SCM is to create an end-to-end system that automates all the
business processes between suppliers, distribution partners and trading partners. In an effective e-business
initiative, the following SCM independent processesmustbe highly integrated: demand management, supply
management and inbound/outbound logistics. The digital economy has forever transformed the role of
SCM.E-business and supply chains have merged, creating a network of immense opportunities. Supply chain
structures have changed, and improving the performance of these supply chains is dependent on the use of eBusiness technology and innovation.
Change Management
In the modern e-business environment traditional change efforts dont work anymore. The speed of todays
business environment means that companies must replace sequential change processes with parallel
processing. E-commerce with existing computers and the identification of new processes and services. Web
servers and web-enabled applications will need to be developed and supported. The IT department needs to
be involved from the beginning to identify technologies and then integrate current and future systems. Online
shopping and purchasing affect the workings of the sales, support, operations and IT departments. In most
traditional organizations these functions work apart from each other. An effective e-commerce service is the
intersection of these departments.
Trust
E-business requires a greater degree of trust between a business, its partners and customers than in the
traditional business model. Many businesses are therefore reluctant to fully embrace e-business. They
feel uncomfortable in this new environment, and are concerned that better safeguards are required to protect
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against emerging, unfamiliar risks [14]. Even firms currently participating in e-business exhibit a
fundamental lack of trust in many e-business processes. They worry about the confidentiality and authenticity
of transactions conducted online and they have serious concerns about the fate of personal and confidential
information once it enters cyber space. Despite the tremendous growth projections for e-business, its full
potential will only materialize if business partners truly trust e-business transactions. Trust is a fundamental
component of any e-business strategy. Among e-business partners, trust is the product of each organizations
history, reputation, track record and patterns of behavior [14]. Businesses that fail to assure third parties of
the integrity, security and reliability of their operations run a very real risk of failure in their e-business
initiatives. When deciding to embark on an e-business initiative it is therefore important for a company to
address the trust and security issues in detail.
Service management
The concept of service management doesnt necessarily change in the e-business environment. Rather, the
fundamentals become more crucial than ever and should be expanded to include all facets of the
organization. According to Habersham service management really does underpin e-business. E-business is
forcing IT to stretch service management practices IT enabled service management (e-ITSM) should be
based on processes that ensure the business runs successfully rather than on technical issues. What is
different in an e-business environment is the scope of service management. To that end comprehensive risk
and problem management should be conducted across the enterprise. E-ITSM should be equipped to handle
quick changes and scalability issues. Service management must be uniform across all departments accessible
through a common interface.
Conclusion
Incorporating electronic business in an organization invariably has a significant impact on various
operations and aspects of the organization, causing changes in areas such as human resources,
strategy planning, technological infrastructure and customer service. For a successful e-business
implementation it is important that decision-makers understand the nature of these changes, their potential
impact, plan for them and manage the change process in such a way as to ensure buy-in of all their elevate
stakeholders. The decision to implement an e-business initiative should not be undertaken lightly and the
benefits that can be gained from such a venture must be investigated thoroughly before deciding to go ahead.
E-business plans must be devised as part of the corporate strategy and must take into consideration the
impact e-business will have on processes, governance and people. It is important that companies create a
single coherent plan, formalize decision-making procedures and communicate e-business initiatives across
the organization and integrate the e-business plan with corporate goals.
CHALLENGES IN IMPLEMENTATION OF TECHNOLOGY IN BUSINESS
Ms. B.Narmatha, MBA student, Nadar Saraswthi College of arts & science, Theni.
Ms. R.Praveena, MBA Student, Nadar Saraswathi College of Arts & Science, Theni.

Abstract In today's business environment, companies must strategically deploy technology to gain or
maintain a competitive advantage. The central theme must be speed, flexibility, low cost and customization
that result in better and faster customer service, because in a business environment where competition is
fierce and global, satisfying customers is paramount in the today business industry.
Introduction
Establish your technology vision and strategy. Clearly identify your operational goals and competitive
strategies. This activity includes writing and validating a business and marketing plan. Be sure to thoroughly
evaluate your strategic positioning relative to your competition. Perform a technology needs analysis. Audit
your existing technology infrastructure, and identify the weak links related to what you need to accomplish
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your vision and strategy. Evaluate processes, equipment and the technology capabilities of your employees.
Get feedback from your IT personnel and other employees, as well as outside consultants if necessary. At the
end of this analysis, develop a technology implementation plan, and get approval or buy-in from all affected
employees and stakeholders. Implement your technology plan. Purchase new technology, or update existing
technology according to your plan. Ensure and validate the compatibility of new technology with old
technology. Also, to the maximum extent possible, deploy technology that allow your employees to
customize how they use it. Doing so will significantly increase productivity and morale.
Role of Technology in Business
Business owners once had very few tools at their disposal: little more than a basic adding machine
and paper records. Today's business owners can complete their duties much more effectively than their
predecessors with an array of technological tools at their disposal. By using these tech-tools, companies and
employees enjoy a number of business-related benefits with the todays technology and it is also helpful for
growth.
.
Communication
Business once consisted almost completely of face-to-face meetings, or snail-mailed correspondence.
Today, technology allows business owners and workers to communicate much more effectively.
Contemporary businesses use an array of communication technologies -- including email, the telephone, fax,
teleconferencing and even online meeting software -- to communicate with each other rapidly and engage in
meetings without dealing with the cost of travel.
Speed Increase
Tasks that once required an extended period of time to complete can now be done rapidly. Tasks like
record-keeping and inventory once proved tedious and painstaking, but computers and other technology can
now accomplish them in a manner of minutes. The increase in speed not only makes tasks easier to complete,
it also makes them more cost-effective, since employers do not have to pay employees for the time it once
took to do these things.
Improved Accuracy
When figures are calculated or records kept by hand, errors become almost inevitable. While
technology doesn't completely eliminate the possibility of error, it does greatly decrease the likelihood of
inaccuracies. Accuracy plays a key role in many businesses, as the data calculated often aids in important
business decisions.
Multi-Media Presentations
Communicating ideas to customers and fellow workers becomes significantly easier with the aid of
technology. Business men and women today can create multi-media presentations that convey their ideas
with relative ease. Because of the ease with which workers can create these presentations, they can explore
more ideas more quickly and potentially make better decisions as a result of their ability to see more options.
Professional Products
Creating professional printed works once required the assistance of a print shop, and an
accompanying cost. With today's technology, workers can create professional looking products in house,
allowing them to increase their reputability within the business world and impress clients with their products
and promotional materials.
Roles Does Technology Play in Businesses
The growth of technology has had a major impact on businesses and will, no doubt, continue to have
an effect. Businesses must therefore embrace technology; those that don't will surely be left behind. As
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technology investment increases, the role of technology in businesses evolves, transforming businesses in
ways that have led managers to conclude that technology is a key business enabler.
Competitive Advantage
Technology can help a business achieve competitive advantage, if it can deliver the same product or
service as its competitors but at a lower cost, by creating efficiencies in the business process. Alternatively, if
a business prefers to provide goods or services of a higher quality than its competitors, then technology can
help achieve this too.
Technology as a Tool
Technology, such as telephone systems, computer hardware and email systems, play an integral part
in the daily running of any business. Social media sites such as Facebook, Myspace and Twitter have proven
to be essential tools in promoting the image of the business, and they reach a broad range of customers.
These tools all open the business to the world and must not be underestimated as powerful business tools.
Technology also helps businesses improve their communication with employees.
Data Management
Most businesses have a wealth of valuable information on potential or existing customers. It is
therefore essential that businesses implement efficient data management systems to ensure this information is
fully utilized. The accuracy of this information can provide competitive advantage. Companies use such
information systems to manage their accounts and financial records, human resources data, inventory and
payroll.
Security
Companies must conduct security audits or assessments on a regular basis to identify any
shortcomings. The security of employees is also important, and computers running building access programs
and other credentialing applications that support identity management enable businesses to maintain a secure
working environment.
Technology Influence Business
Information technology is a transformative force in the business environment. Companies can
implement computers, servers, intranets, software applications and programs or Internet websites into their
daily business operations. Rapidly changing technological changes can have significant influence on
businesses.
Potential
Technology allows companies to reach consumers in new economic markets, whether regional,
national or international. Smaller businesses can also compete with larger organizations using carefully
marketed Internet operations. Internet sales websites can operate 24/7, allowing companies a continual reach
to consumers.
Considerations
Many companies implement information technology management functions to ensure that their
computers and other technological equipment remain current. Technology quickly becomes outdated, which
can be of some detriment to companies. Failing to upgrade technology can actually increase operating costs
more than purchasing and implementing new equipment.
The Effects of Technology on Business
Information technology comprises the computers, servers, applications, programs and websites a
company uses to enhance or improve its business operations. Technology rapidly changes as companies
produce new product developments on a continual basis. Businesses implement this technology to create
significant effects in operations.
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The

Positive
&
Negative
Effects
of
Technology
in
Business
Technology has changed much of the world, but the effects are rarely more pronounced than in the
area of business. Businesses today use technology in almost every facet of operation. They communicate
with advanced network systems; they analyze data and plot forecasts using complicated programs; they
utilize all types of digital media for marketing campaigns; and they streamline operations with new inventory
and check-out systems.
Business Technology Tools
Technology has many benefits for the businesses of today, including tools for every aspect of running,
owning, managing, marketing and expanding a business. More technology tools, however, do not guarantee a
more efficient or productive business. It's the right tools used in the right way that make the difference.
Business Intranet
A business intranet links up all the computers in your business into a network, providing a way for
employees to interact via computer without Internet security risks. Use a business intranet for
communicating, coordinating schedules with an online business calendar, sharing and editing files, and
accessing programs, documents and other computerized data.
Online Document Sharing
You can set online document sharing up for free using a service such as Google Docs or Microsoft
Office Live Workspace; or you can pay a small amount to use a service. Use online document sharing to
allow clients, contractors, and other non-employees to access specific files without access to your entire
business intranet. You can set permissions for each user and even each file, choosing whether it can be edited
or only viewed.
Business Blog
Done right, a business blog provides a powerful and cheap marketing tool. It can increase your reach
and credibility. Done poorly, a business blog will make your business seem insincere and ill-prepared. To run
a blog well, use a business blog to communicate with current and potential customers. Provide thoughtful,
brief content at least twice a week.
Tablet PC
Move your business presentations into the 21st century with a tablet PC. These portable powerhouses
give you plenty of memory for graphics, videos, animation, sound and documents. Small, lightweight, and
easy to use, you can use them anywhere.
Thumb Drive
Intranet and online document sharing give you the ability to collaborate on shared files, but some files
are so large that downloading takes too long. When you work with computer files in large sizes, thumb drives
are indispensable. Plug in, save the files on the thumb drive, and quickly access by plugging the thumb drive
into any other computer anywhere, without having to wait on download time.
Type of Information Technology Is Used in Business
In a globalized economy, information technology is the lifeblood of international business.
Instantaneous intercontinental communication links help businesses to stay ahead of their competition by
coordinating everything from merchandise shipments to advertising campaigns.
Speed: One of the main reasons so many business have turned to the IT world for their professional needs is
the sheer speed at which computers and related technologies can process information. Email is a perfect
example, as it eliminates the need to wait several days for a packet of documents to reach a client or business
associate.
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Efficiency: Increased speed often leads to increased efficiency. While eliminating the need to wait for
packages or sensitive materials to arrive, businesses are able to receive and respond to changes instantly. This
improved response time almost guarantees a higher chance at eliminating potential issues by allowing
businesses to react quickly.
Multi-Tasking: Another business advantage of information technologies is the ability of computers to
perform multiple tasks simultaneously. Provided the hardware is able to support it, the operator may have
several different programs functioning at the same time. Furthermore, computers are generally capable of
performing complex calculations, such as mathematical equations or travel distances, very quickly and
accurately.
Low Cost: Computers themselves are much less expensive than they were years ago. As technology becomes
more common, the cost becomes more affordable. Furthermore, as already mentioned, computers may
replace other means of document storage and thereby allow companies to trim back on real estate expenses.
Computers may also enable certain jobs to be eliminated.
Applications of Information Technology
The Internet is widely used in place of telephones for distance communication. Video conferencing of
people in separate countries is becoming commonplace. Cell phones are used away from the office and in
remote locations to keep in constant contact with business colleagues in other places.
Drawbacks of Information Technology
The increasing speed at which information technology is used can cause stress for workers. The
inability to escape that is facilitated by the ubiquity of mobile communication devices causes burnout in
some people who find themselves unable to cut themselves off from work related activity.
Business Benefits of Information Technology
Networking: Many businesses today not only make good use of their web sites, but also social networking
sites like Facebook, LinkedIn and Twitter as well as blogs and forums. These sites allow companies to share
information and news updates quickly with one another and with customers, who share the information with
their friends and followers. This viral spread of information plays a vital role in companies getting the word
out about their products and services, and it helps customers have a direct say in the goods they wish to
purchase.
Development: The quick sharing of information allows companies to receive instant feedback on their
products from customers, employees and the competition. Speed and accessibility are important components
in keeping up with research and development in a global business workplace, and the companies rising to the
top are the ones paying attention to the available information about their business that potential customers
can access.
Marketing: Once a business has completed the necessary research on customer needs, wants and reactions, it
can continue to benefit from information technology by easily targeting the ideal customers with new
products and services. For example, advertisers on the Internet use a kind of technology that "crawls" on an
individual's webpage, scanning words to judge what the individual is interested in, then provides
advertisements that may appeal to that individual.
Employment: Information technology has led to an unprecedented level of connectivity, with
telecommunication devices and programs, allowing businesses to stay globally connected and lead a more
mobile work lifestyle. This has opened up a greater variety of jobs to potential employees all over the world,
because employees no longer need to spend their entire work day in an office in the city where they live.
Information technology also gives smaller businesses access to a much wider pool of customers, making it
easier for them to compete with larger businesses.
Reference
www.hktdc.com
http://www.ehow.com/list
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 management.about.com/cs/generalmanagement/a/company.htm

FISCAL DEFICIT IN INDIA

Ms. S.Kiruthika, M.Com Student, Nadar Saraswathi College of Arts & Science, Theni.
Ms. S.Saranya, M.Com Student, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT: This essay examines the trajectory of Indias fiscal deficit with a focus on historical trends,
fiscal discipline frameworks, and fiscal responses to the nations fiscal crisis and subsequent return to a
fiscal consolidation path. The inflation is going up and adversely affecting budget to everyone and the
every day, concerned are worried about the fiscal deficit of India as existing now. Most of the people in
our country feel this is the right time to control the fiscal deficit in case the countrys actual development.
There was no improvement in condition of below poverty level people, employment generation, rural areas
growth and it is fact that it has not inspire of improved growth rate whats over steps has taken previously
remain unsatisfactory for the growth. Indian economy is witnessing a correction of the fiscal policy path
towards a regime of prudence. Many of the country want it know and to have asked what fiscal deficit is?
And why it creates problems for the economy of the country? How it can be tackle? It includes basic
concepts; causes of fiscal deficit; also Indias fiscal policy architecture; Indias fiscal deficit currents
affairs; current signs that positioning to fiscal deficit in India and it remedies adapted by government. In
the future the focus would probably be on brining in new tax reforms and better targeting of social
expenditures.
INTRODUCTION
The fiscal deficit is an economic phenomenon where the government total expenditure surpasses the
revenue generated. It is the difference between the government total receipts and total expenditure. Fiscal
deficit gives the signal to the government requirements from all sources during the specific period. The
primary component of fiscal deficit includes revenue deficit and capital expenditure. The capital expenditure
is the fund used by an establishment to produce physical asset like property equipments or industrial
buildings. A capital expenditure is made by the establishment to consistently maintain the operational
activities to further growth of the economy .In India to maintain the capital revenue and capital expenditure
the fiscal deficit is generally financed by obtaining funds from Reserve Bank of India regarded as deficit
financing. To meet out the gap between said terms for the balance in a finance form called the deficit its
denoted in fiscal terminology so called as fiscal deficit.
A formula to calculate debt is as hereunderDebt=RBt-1+(r-g) Gt - Tt.
R= real interest rate, Bt-1=Dept of last year ,
r=Interest rate, g= growth rate,
Gt= government planning, Tt=Tax revenue
BASIC CONCEPTS OF FISCAL DEFICIT: The most elementary is perhaps the difference between
revenue and capital flows be they receipts or expenditure. While there are various complex legal and formal
definitions for these ideas presenting some simplified and stylized conceptual clarifications is deemed at
appropriate. A spending item is a capital expenditure if it relates to the creation of an asset that is likely to last
for a considerable period of time and include loan disbursements. Such expenditure is generally not routine in
nature. By the same logic a capital receipts arises from a comparatively irregular event and is not routine. In
contrast revenue expenditure are fairly regular and generally intended to meet certain routine requirements
like salaries, pensions, subsidies, interest payments , and the like Revenue receipts represent regular,
,earnings, for instance tax receipts and non tax revenues including from sale of telecom spectrums.
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VARIOUS WAYS TO INTERPRET A GOVERNMENT FISCAL DEFICIT:

There are various ways to interpret a government deficit. The simplest is the revenue deficit which is
just the difference between revenue receipts and revenue expenditure.
1 .Revenue Deficit=Revenue Expenditure-Revenue Receipts (that is tax + non tax revenue) a more
comprehensive indicator of the governments deficit s is the fiscal deficit. This is the sum of revenue and
capital expenditure less all revenue and capital receipts other than loans taken. This gives a more holistic
view of the government funding situation since it gives the difference between all receipts and expenditure
other than loans taken to meet such expenditures.
2. Fiscal Deficit =Total expenditure (that is revenue expenditure + capital expenditure)-(revenue receipts +
recoveries of loans +other capital receipts) (that is all revenue and capital receipts other than loans taken)
The gross fiscal deficit (GFD) or government is the excess of its total expenditure current and capital
including loans net of recovery over revenue receipts and non debt capital receipts. The net fiscal deficit is
the gross fiscal deficit reduced by net lending by government. The gross primary deficit is the GFD less
interest payments while the primary revenue deficit is the revenue deficit less interest payments.
WHAT ARE THE CURRENT SIGNS IN INDIA POINTING TO?
1.Rupee weakness: Further weakening of the rupee due to a lower supply of dollars and higher interest rates
abroad.
2.GDP growth: Economists predicting a lower GDP for the current fiscal year, a disastrous sign since we
just witnessed a GDP drop from 6.2% to 5% from the last fiscal year to the current fiscal year.
3. Current account deficit:
A further rise in India's current account deficit.
4. Foreign reserves: The government signaling that within months it might run out of foreign reserves.
5. Short-term debt: $170 billion in short-term debt to pay, while in 2008 it was just $80 billion.
6. FII investment: From may to august 2013,FII investment in India having gone down by $2 billion.
7.Elections: Both the private and public sectors staying clear on investment strategies until
next years elections.
INDIAS FISCAL DEFICIT AND ITS CURRENT AFFAIRS:
According to government data Indias fiscal deficit during 2012-2013 financial year was 4.9 percent of
the nations gross domestic product.
Curbing import on gold is one of the measures taken by the government to correct the country s
fiscal deficit. But with a weakening rupee and increase in global oil prices the finance minister might put a
cap on the countrys expenditure to avoid pressure on fiscal deficit.
In previous years growing fiscal deficit has given rise to the balance of payment crisis. But in the
recent years the government has taken action steps to correct the situation by cutting services taxes , excise
duty and carefully stepping up government expenditure.
Also when the cabinet decided to come out with the Food Security Bill which guaranteed quality food grains
at subsidized rates the concern of fiscal deficit slipping by 0.5 percent was predicted by experts. And then
earlier in july the government of India reassured the nation that execution of the Food Security Bill not affect
the fiscal deficit target for the year.
Fiscal deficit has been a key concern for credit rating agencies and RBI is likely to be on alert when it
pays its debt because paying high interest with cautious investors amid rising deficits might not be
considered a smart move.
INDIAS GOVERNMENT BUDGET
India recorded a Government Budget deficit equal to 5.30 percent of the country's Gross Domestic
Product in the fiscal year 2012/2013. Government Budget in India is reported by the Ministry of Finance,
Government of India. From 1990 until 2012, India Government Budget averaged -3.9 Percent of GDP
reaching an all time high of -2.0 Percent of GDP in December of 1996 and a record low of -7.8 Percent of
GDP in December of 2008. Government Budget is an itemized accounting of the payments received by
government (taxes and other fees) and the payments made by government (purchases and transfer payments).
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A budget deficit occurs when an government spends more money than it takes in. The opposite of a budget
deficit is a budget surplus. This page contains - India Government Budget - actual values, historical data,
forecast, chart, statistics, economic calendar and news.

INDIA GOVERNMENT BUDGET FROM 2010 TO 2011

Government
GOVERNMENT
DEBT TO GDP
GOVERNMENT
BUDGET VALUE
GOVERNMENT
SPENDING
CREDIT RATING
GOVERNMENT
BUDGET

Last
67.57

Previous Highest Lowest

2012- 68.05
84.30
67.57
12-31
-5095.57 2013- -4578.86 -94.06
-5097.31
11-30
1471.22 2013- 1666.79 1821.98 735.82
08-15
47.12
-5.30
2012- -5.80
-2.04
-7.80
12-31

Forecast
67.05
201312-31
-4506.60 201312-31
1566.93 201311-30
-5.35

Unit
Trend
Percent
INR
Billion
INR
Billion

2013- Percent
12-31 of GDP

REASONS OF FISCAL DEFICIT IN INDIA are increase in subsidiaries, payment of interest, defense
expenditures, poor performance of public sector, tax evasion, weak revenue mobilization, huge borrowings,
up productive expenditure by the government
MEASURES OF FISCAL POLICYFROM 2010 TO 2011
Every country has its own tax system depending upon type of income there citizens have. The economy
does yield enough for the government to collect taxes as they want/estimate and but the way it is supposed to
work.The feature of the system can be divided in to two. i.e.,+s and s.
Positives of the Indian tax system at present
Since 1950s there has been huge increase in tax and non- tax system receipts in 1950-1951 income was
357crores of the countrys growth which increased to 5, 63,685crores. The reason behind this seems to be
increasing base of the tax structure and the awareness about the importance of paying taxes, increase in the
income of the people which has enable the government to earn more in terms of tax and non-tax income. The
non-tax revenue also a similar hike in 1950-51 the income was 49crores which increased to 2.20lakhs by a
reason of increasing privatization and liberalization.
Example for Tax revenues are income tax corporate tax, wealth tax.
Example for Non - Tax revenues are fines, penalties, income on lending to state
Government or private companies.
DIRECT AND INDIRECT TAXES
Fine balances has been maintained in the direct and indirect tax over the yearsin2009-2010 the direct
taxes were stood at 44%and indirect taxes were stood at 56%.An imbalance between these taxes can create
problems with income inequality suggested OECD.
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SLAB SYSTEM
The income tax slab system has been fantastic feature of the tax system, according to the recent change
in income up to , 80,000rupees there shall be no tax liability on individual. This has given rise to incomes to
those who earn more than 8,00,000 shall be liable to pay 30%tax on the same and hence this would make
them earn about 5,60,000.This shows how much impact the Income Tax slabs have on the income disparity.
SERVICE TAX
One of the best illustrations of service tax is that we pay on while buying a movie ticket or while buying
cool drinks and popcorn in a multiplex, those high prices are a result of service tax they provide. Currently
there are 112 services over which the service tax is levied .The service tax is levied at 10%according to the
union budget 2010 to 2011.
NEGATIVES OF INDIAN TAX SYSTEMS
TAX ON AGRICULTURE
The agriculture department has not been taxed enough about 65% of the whole of India is involved in
agriculture sector and 20%of the total national income comes from agriculture sector but the tax received
from the same stands at 0.0060% which was about 26 crores (Agriculture income tax). The balance that all
the sectors have into their share in taxes has been largely odd, further due to number of reasons the revenue
has been highly decreasing in the agriculture sector.
NARROW BASE
There are a number of taxes which do not yield enough for the government to make maximum utilization.
Taxes like wealth tax, income tax, capital gain and etc only cover 0.7% of the population. Because of tax
evasion and improper tax system people who earn more can even avoid tax through number of ways.
PUBLIC EXPENDITURE
In simple terms a public expenditure is the amount spent by the government for the welfare of the citizen
for instance defense expenditure, interest payments medical expense, infrastructure expenses and etc. Public
expenditure can basically be divided into two state government expenses (capital account expenditure) and
central government expenses (Revenue account expenditure).
This includes some of the most important expenditures of the central and state government.
Central government expenses (revenue account expenditure)
Defense (security)
Judiciary and Legislation (Law)
Administration expenses (salaries and pensions)
Interest payment (public debts)
Social service expenses (Grant and subsidies)
State government expenses (revenue account expenditure)
Interest payments (state debt)
Promotional expenses (tourism)
Social welfare expense (welfare)
Irrigation and power (welfare-Agriculture)
Communication (administration)
PUBLIC DEBT
Public debt has increase since India started developing and as the debt increased the interest payment
increased in 2008 to 2009 it was 31.5% of the non-planed expenses and further increased to 33.8% in 2010 to
2011 excessive interest payment have been a major concern for the Indian government now
CONCLUSION
This essay examines the trajectory of Indias fiscal deficit with a focus on historical trends fiscal discipline
frameworks, fiscal responses to the nations financial crisis and subsequent return to a fiscal consolidation
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path. In the future the focus would probably be on bringing in new tax reforms and better targeting of social
expenditures and promote economic development.
Reference
Monetary economics by T. T. Sethi, M.L. Seth, M.L.Jhingam
Fiscal economics by S. Sankaran
Indian government budget (2010-2012)
CHALLENGES TO WITHSTAND IN THE BUSINESS FIELDS
Ms. K.Meena, BBA Student, Nadar Saraswathi College of Arts & Science, Theni.
Ms. V.Abinaya, BBA Student, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT We have gathered these resources to help you get started in thinking about career options.
We encourage you to review this page and then make an appointment to discuss your specific interests,
values, and goals as they relate to your career. The business field challenges are faced in all
Entrepreneurs. But they are dont about that business field. So they are first know about the business
field. Then the business field is choosing inbest field. Its focus an one business and developing the
business. A few years they can successful in the field. So the all entrepreneur following above the ides.
This paper include business field,dont know about the business field,choosing the best business field,
raising capital, developing the vision and idea, assembling a team, finding the right location, finding the
right employees, overcoming competition, how to become a business field development, steps, conclusion
INTRODUCTION
BUSINESS FIELD:
We have gathered these resources to help you get started in thinking about career options. We encourage you
to review this page and then make an appointment to discuss your specific interests, values, and goals as they
relate to your career. It's likely you will then return to some of these resources as you navigate your way
through your career exploration and job or internship search.
DON'T KNOW WHAT BUSINESS FIELD TO CHOOSE?
Think about what you most enjoy doing in general and try to figure out which elements are constants
throughout all or many of these things.
Once you have identified certain high-level concepts that consistently pique your interest, begin
investigating different business fields and try to see where you would best fit.
Take some time to reflect on your past, since what has historically made you happy will most likely
make you happy in the future.
CHOOSING THE BEST BUSINESS FIELD
Read how to explore fields of business and learn how to choose which is best for your life and goals.
Sometimes also referred to as a specialty, a field is the umbrella that holds several specific careers together
accounting, for example, is the business field that contains public accountants, auditors, forensic accountants,
as well as the degrees needed to reach these positions.
DEVELOPING THE VISION AND IDEA:
This is usually the first challenge faced by every entrepreneur.
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The main challenge is going to be your ability to forge that opportunity into a business idea. I see this as a
business challenge because the process of transforming opportunities into business plans is like trying to turn
lead into gold. I call it the process of "Creating Value out Of Nothing." If you are not an entrepreneur, you
might not be familiar with the process.
RAISING CAPITAL:
After developing your idea, the next challenge you are going to face is the challenge of raising capital. As an
entrepreneur, you are the only one who knows the idea to the core. You are the only one who knows the story
of the future. Trying to convince investors about something that doesn't exist is definitely a challenge
ASSEMBLING A TEAM:
The third challenge you must face in the course of developing a business is assembling the right team. When
I talk about a team, I am not talking about regular employees. I am talking about a "round table strategic
business team" that will meet regularly to brainstorm on ways to grow your business.
FINDING THE RIGHT LOCATION:
These features are subject to change with respect to the industry of your business: Suitable price, Easy access
to raw materials, Good road network, Basic amenities and infrastructures, Adequate Power supply, Easy
access to cheap labour, Nearness to high traffic roads, Moderate state and federal tax , Favorable Government
fiscal and monetary policy, Favorable federal and state laws, Current economic policy and political situation.
FINDING THE RIGHT EMPLOYEES:
Most writers crank up the process of finding good employees as an easy task. They define finding an
employee as simply presenting the job description and the right employee will surface. But I think it's more
than that. Those who are really business owners know how difficult it is to find a hardworking, trustworthy
employee. Most employees want to work less and get paid more. Finding a good employee who will be
passionate about delivering his or her services is quite difficult.
OVERCOMING COMPETITION:
Competition is the next challenge you will face. Most individuals see competition as a plague but I see
competition as a good challenge. I see competition as a benchmark for creativity, the main engine for
innovation and quality products at great prices. Without competition, there will be no innovation and without
innovation, the world will be stagnant.

HOW TO BECOME A BUSINESS FIELD DEVELOPMENT :

Business development managers work with companies to develop, expand and generate new business
opportunities. Responsibilities for those working within this industry may vary depending on the type of
company and the business services and products provided. Generalized tasks may include marketing, product
development and distribution, writing contract proposals and presentations and meeting with potential new
clients.
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STEP 1 Conduct some initial research on the field of business development if you have no experience
obtained through past jobs or education.
STEP 2 Realize that core aptitude requirements to become a successful business development manager
include excellent interpersonal skills as the position entails regular contact with potential and existing clients.
STEP 3 Recognize that working as a business development manager may require considerable overtime
including extended hours working into the evening and on weekends.
STEP 4 Consider getting a college degree in preparation for becoming a business development manager.
STEP 5 Register with a professional association online that caters to the business development industry.
STEP 6 Visit job fairs if you have already graduated from college and have obtained your degree in
preparation for becoming a business development manager.
STEP 7 Explore the many online job boards and browse through available openings for a position as a
business development manager.
Conclusion:
The business field challenges is faced in all Entrepreneur. But they are dont about that business field.
So they are first know about the business field. Then the business field is choosing inbest field. Its focus an
one business and developing the business. A few years they can successful in the field. so the all
entrepreneur following above the ides.
CHALLENGES IN IMPLEMENTATION OF TECHNOLOGY IN BUSINESS
Ms. T.Kayalvizhi, BBA Student, Nadar Saraswathi College of Arts & Science, Theni.
Ms. B.Gayathirri, BBA Student, Nadar Saraswathi College of Arts & Science, Theni.

ABSTRACT Challenges in Implementation of Technology in Business. The technology sector has

changed and developed many products. The technology is providing many advantages. In business they
use various kinds of technologies. The business peoples facing many challenges in implementing new
technologies into their business like they play vital role as implementer and challenger, problem solver.
INTRODUCTION:- Technology is defined as the application of scientific knowledge for practical purposes,
especially in industry, machinery and equipment developed from scientific knowledge. It is used to solve a
problem, improve a pre-existing solution to a problem, and to achieve a goal etc..; Introducing technological
change into an organization presents a different set of challenges to management than does the work of
competent project administration Different technologies used in business: mobile devices, television,
computers, softwares, transportation system, networking, telephone systems, my ID Key.
Guardian: Now you can control your wireless router using a mobile application. The Guardian is a
wireless router which comes with a strong and easy to use mobile application.
Mauz: MAUZ will allow you and your employees to control computers and media centers with a
kinetic three dimensional computer mouse which can be connected to a Smartphone.
Open WIFI Cloud : You can easily share internet at work using this Open Wi-Fi-Cloud. This is a good
technology for businesses which share working space with other business.
Galaxy HUB: This is a smart presentation device which supports smart applications. It is a good
technology for business communication; you can use it to show presentation slides on any screen or
projector.
CHALLENGES IN IMPLEMENTING NEW TECHNOLOGIES IN BUSINESS:

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A Dual Role: Those who manage technological change must often serve as both technical developers and
implementers. As a rule, one organization develops the technology and then hands it off to users, who are less
technically skilled but quite knowledgeable about their own areas of application.
Uncertainty All human beings, but it seems business leaders in particular, find great discomfort in
uncertainty. Uncertainty in the global economy, uncertainty in the credit markets, uncertainty in how new
regulations will affect business.
Senior leadership is critical to catalyzing change in an organization: Any substantial change program is
only successful when senior leaders are visibly committed to the process over the long term and able to
galvanize support within the organization, particularly from middle management.
It is considered as self-evident.:Technology must be obvious a feature exists (the product does this) and
also obvious how to use it
Shortage of high skill man power: By using the technologies the man power will be reduced and they get no
chance to use their skill at any instance.
Know how to use it: For using the technologies they must know how to handle the technology
Make more Money: Be creative with funding sources. Always check the guidelines for the specific funding
source, but its often possible to meet several needs with one implementation.
Scheduling for Succes: Allocating technology resources is easily one of the biggest challenges of any
implementation. Theres no one-size-fits-all solution, so be creative.
Diversity: A particular subset of human capital planning is found so often in our research that it is worth its
own mention. Diversity brings many challenges, as it makes it far more likely that people do not agree, and
the lack of agreement makes execution very difficult.
Complexity: Theres no doubt that life and business have gotten more complex, even as certain tasks and
activities have become easier due to information technology. The pace of change is quickening.
Information overload : It is said that the only true constant is change, and in todays world nothing is
changing more, or growing faster, than information.
Supply chains: Because of uncertainty in demand and the need to stay lean, companies are carrying smaller
inventories than ever. At the same time, uncertainty in supply, driven by wildly changing commodity prices.
Problem solving: The lack of a sophisticated problem-solving competency among todays business leaders
is limiting their ability to adequately deal with the first nine problems. This is why corporate managers tend
to jump from one fire to another
Unemployment is the major challenge: There are no easy solutions to the problem of unemployment. But
technology can overcome this unemployment.
Get New Clients/Customers: In development of new technology they can get New Clients/Customers for
their business
Marketing: That involving users in a new technologys design phase boosts user satisfaction is quite well
known, but the proper extent, timing, and type of user involvement will vary greatly from company to
company.
CONCLUSION:
I conclude that no business can earn profit without using technology. Technology has more
advantages than disadvantages.
Reference
Organisational behaviour - Uma Sekaran.
International business Aswathappa.K.
Organisational behaviour Subba Rao.

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USE OF RELATIONSHIP MARKETING PROGRAMS IN BUILDING CUSTOMER

SALESPERSON AND CUSTOMER FIRM RELATIONSHIPS : DIFFERENTIAL INFLUENCES
ON FINANCIAL OUTCOMES.
Ms. J.Alphonsa, MBA., M Phil., Guest Lecturer , Government. Arts college for Women.

Abstract: Despite the conventional wisdom that relationship marketing will generate favorable financial
results, extent marketing research provides inconsistent evidence for this effect. Here, we investigate this
important Question : Does a firms relationship marketing truly pay off by enhancing financial outcomes?
We examine the effects of relationship marketing on a buyers concurrent person - to firm relationship with
the selling firm and his/her interpersonal relationship with the salesperson. Drawing on social judgment and
attribution theories, we offer and test a theoretical model explication (1) how a sellers social, structural, and
financial relationship marketing programs affect buyer relationship quality with the salesperson and the
selling firm and (2) how those relationship qualities ultimately generate seller financial outcomes.
Relationship marketing programs indeed build buyer relationship quality, but whether those relationshipbuilding effects reside with the salesperson or the selling firm depends on buyer perceptions regarding
salesperson versus selling firm control of those programs. Buyer relationship quality with both salesperson
and selling firm positively affect seller financial outcomes, but the effect of relationship quality with the
selling firm is enhanced as perceived selling firm consistency increase. Employing triadic data from matched
buyer, salesperson, and sales manager, this research presents an end-to-end empirical examination of how a
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sellers relationship marketing affects it financial outcomes through the buyers relationships with
salesperson and selling firm.
Keywords: Relationship Marketing, Relationship quality, Perceived Control, Entitiativity, Customer
Relationship Management
1. Introduction
Despite a significant amount of research, the impact of relationship marketing on financial
performance remains unclear. This research explores how RM activities affect a firms financial performance
through buyer relationships with both the firm and its salespeople. Empirical studies concurrently examine
person-to-firm and interpersonal cross-firm relation-ships, which reveal that an individual buyer may be
affected ,more by interpersonal relationships than by his or her relationship with a firm.
2. Theoretical background
2.1.Does relationship marketing generate favorable financial outcomes?
How do RM efforts affect financial outcomes? The seller and its representatives implement cross-firm
RM activities to induce a favorable response from the buyer, a response presumed to have positive financial
ramifications for the seller. Relationship marketing generates positive seller outcomes by enhancing
relationship quality or the overall strength of the relationship, as indicated by increased trust, commitment,
and satisfaction. Within any business-to-business interaction, cross-firm phenomena occur at the
interpersonal, person-to-firm and inter organizational levels. Empirical studies that examine both
interpersonal and person-to-firm relationships.
2.2. Relationship marketings impact on buyer relationship quality
Extant RM typologies focus on the (1) types of customer bonds formed. (2) types of customer
benefits offered. (3) functions served or problems solved by relationships. (4) relationship content area
supported in the exchange. Each typology includes both financial / economic and social categories: most
capture structural efforts directly or indirectly by tapping interdependencies or switching costs. Researchers
theorize that diverse RM programs may build different types of relational bonds, but RM typically has been
studied in an aggregate sense. We examine the full range of social, structural, and financial RM programs to
gain a better understanding of the resulting relational bonds.
2.3. Impact of buyer relationship quality on seller financial outcomes.
Relational constructs have been found to positively influence various behaviors and intentions ,but
sellers ultimately seek a more tangible payoff on favorable financial outcomes. Serious questions persist
about whether greater customer relationship quality results in superior selling firm financial performance ,but
we contend that a seller can benefit financially form building buyer relationships and the failure to detect a
consistent link between relationship quality and seller outcomes could be the result of the researchers
tendency to examine only one type of financial outcome and focus on a single relationship level. We enhance
our chances of detecting RMs effects by examining three diverse seller financial outcomes. (1) customer
share, the proportion of potential sales to a specific customer captured by a seller, which serves as an
assessment of selling effectiveness; (2) the buyers expressed willingness to pay a price premium; and (3)
sales growth, and overall indicator of the sellers success in increasing sales to the buyer. We contend that the
buyers interpersonal relationship with the salesperson and person-to-firm relationship with the selling firm
influence seller financial outcomes in different ways because the buyer will use different judgment process
to evaluate the salesperson and the selling firm.
2.4. Research hypotheses.
We posit that RM will have a positive effect on the buyers relationship quality but still must address
the question of relationship quality with whom or what. Will a RM program generate buyer relationship
quality with the salesperson or with the selling fir,? Suggests that social, s structural, and financial RM
generate fundamentally different bonds. Similarly, we speculate that the buyers perception of salesperson
control may vary significantly across seller RM programs, though in any given case, the actions of the selling
firm and the salesperson may alter that baseline perception substantially. Social RM programs may tend to be
associated with the salesperson because of his or her integral role in their creation and delivery that is, the
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sales persons social skills affect the quality and magnitude of the benefits and magnify the salespersons
salience.
H1. As perceived salesperson control of a relationship marketing program increases, (a) the positive effect of
that program on buyer relationship quality with the salesperson increase and (b) the positive effect of the
program on buyer relationship quality with the selling firm decreases.
H2. Buyer relationship quality with the salesperson has a positive effect on seller financial outcomes.
H3. Buyer relationship quality with the selling firm has a positive effect on seller financial outcome.
H4. Buyer relationship quality with the salesperson has a greater positive effect than relationship quality
with the selling firm on seller financial outcomes.
H5. Selling firm consistency increase the positive impact of buyer relationship quality with the selling firm
on seller financial outcomes.
H6. Buyer relationship quality with the salesperson has a positive effect on buyer relationship quality with
the selling firm.
3. Research design and method.
3.1. Sample and data collection procedure: We studied relationships in channels served by manufacturers
representative firms, a context well suited to test our theoretical model. Isolating the effects of RM from the
effects of brand loyalty, brand desirability, or lack of competition can be difficult, but because typical rep
firms are relatively small, selling hundreds of products for 10 or more manufacturers on a commission basis
that buyers can obtain from other sources as well, the brands carried by the rep firm and salesperson usually
do not overwhelm other aspects of the buyers relationship.
3.2. Salesperson-provided measurement scales: When possible, we adapted existing measures. When we
needed to develop new scales, we generated theoretically based potential items, refined them, and retested
them with 24 buyers, five salespeople, and two sales managers. In the Appendix, we summarize the
measurement scales and construct reliabilities. After compiling a list of generic RM programs, we conducted
eight sales manager interviews that contained open-ended questions, followed by specific problems about
suggested RM programs. After we refined the list of items, we discussed it with two buyers and three
salespeople.
3.3. Buyer-provided measurement scales: To develop our measure of perceived salesperson control of RM,
we follow Menon et al. (1999). Buyers completed RM items parallel to those in the salesperson survey. After
each item buyers access the extent to which a specific RM program benefit is controlled by the rep firm (1)
versus the salesperson. To focus the buyers attention on the appropriate referent, maximize discrimination,
and enhance construct validity, items pertaining to the buyers relationship quality with the salesperson and
with the selling firm appeared in separate survey sections.
4. Analysis and results: We employ a two-stage data analysis approach (Anderson & Gerbing, 1988) with
AMOS 4.01 structural path modeling with maximum likelihood criterion. To assess the appropriateness of
the measurement model, we conduct confirmatory factor analysis and test the hypothesized model using
structural modeling.
5. Discussion: Most extant RM research and practice relies on the classic model, in which RM activities
build relationships that drive performance . we argue, with supportive evidence from our findings, that a
better understanding of the impact of RM on financial performance may be gleaned by encompassing
multiple relationship levels in RM models. Our findings offer substantive implication s for both interpretation
of previous findings and the design of further research.
References
1. Armstrong, S.J., & Overton, T.S. (1977). Estimating non-response bias in mail surveys.
2. Berry, L. L. (1995). Relationship marketing of services-growing interest, emerging perspectives.
3. Berry, L. L. & parasuraman, A. (1991). Marketing services: Competing through quality .
4. Doney, P.M., & Cannon, J.P.(1997). An examination of the nature of trust in buyer-seller
relationships.
5. Geyskens, I. Steenkamp, J. B.E.M., & Kumar, N. (1998). Generalizations about trust in
marketing channel relationship using meta-analysis.
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