[GCSR] on Finland Co

Subject Code: 2830003

Global country study report [GCSR]

On Finland Country

Shri AuAurobindorobindo Institute of Management Rajkot

College Code: 758

MBA Sem IV

Year: 20102010----20122012

GCSR

Part I and Part II

INDEX

Part I: Economic Overview Of The Finland Page No 10 - 35

1.1 Demographic Profile Of Finland: 1.2 Economic Overview Of The Finland 1.3 Overview Of Industrial Trade And Commerce 1.4 Overview Of Economic Sectors Of Finland 1.5 Overview Of Business And Trade At International Level 1.6 Present Trade Relations And Business Volume Of Different Product With India 1.7 PESTEL Analysis 1.8 Conclusion

Part II : Industries & Companies Study Of Finland Country

Group: A Advertising And Media Industry And Its Role In The Finland Country Economy Page No: 37 - 54

1. Introduction 2. Role Of Advertising In Economic Development 3. Media Industry And Different Types Of Media 4. Media Companies Of Finland 5. Structure Functions And Business Activities Of Advertising 6. Functions Of Advertising 7. Business Activities Of Advertising 8. Business Activities Of Finnish Advertising And Media Industry 9. Comparative Position Of Advertising & Media Industry With Gujarat In India 10. Advertising And Media Industries In Finland 11. Advertising And Media Industries In India And Gujarat 12. Top 10 Advertisment Agency Of India 13. Policies And Norms Of Advertising And Media Industry In Finland 14. General Rules And Norms For Advertising 15. Policies For Advertising 16. Business Opportunities In Future 17. A Mixture(Synthesis) Of The Perspectives

Group: B Performance Analysis Of Finland Stock Exchange Page No: 55 - 90

1. Introduction Of Helsinki 2. NASDAQ OMX Helsinki Ltd 3. Nordik Derivatives Exchange (NDX) 4. Role Of Helsinki Stock Exchanges 5. Comparative Position Of Finland Stock Market & India Stock Market 6. Foreign Direct Investment Statistics 7. Present Position And Trend Of The Business 8. Policy & Norms 9. Policies And Norms Of Indian For Import Or Export 10. Review Of Policies And Programmes 11. Present Trade Barriers For Import Or Export Of Security 12. Potential For Import /Expot In India/ Gujrat 13. Business Opportunity In Future 14. Invest In Finland At Your Service 15. Conclusion 16. Suggestion 17. Google Finds Itself In Finland 18. Findings

Group: C Banking Sector In Finland Country Page No: 91 - 109

1. Origin Of Finland Bank 2. Banking Operations 3. Different Types Of Services 4. Regulatory Authority 5. BANK OF FINLAND 6. Reserve Bank Of India 7. Comparative Position Of Banks 8. Present Position And Trends Of Bank With India 9. New Trends In Payment And Billing 10. Bills Go Electronic 11. Policies And Norms Of Banking Industry 12. Opportunities In Future 13. Findings 14. Conclusion

Group: D Hotel Industries In Finland Country Page No: 110 - 127

1. Introduction of hotel industry of finland 2. Structure, functions and business activities of hotel industry 3. Comparative position of hotel industry in finland with india and gujarat 4. Top 10 hotels in india 5. Comparative position of hotel indstry in finland with india 6. Measures undertaken by the government 7. Trends in the industry 8. Development of other markets 9. Opportunities 10. Hotel industry services in finland 11. Trends in the industry 12. Tourism in the economy 13. Tourism organisation 14. Tourism budget 15. Tourism-related policies and programmes 16. Policies and norms of india 17. The classification includes: 18. Government incentives 19. Export promotion capital goods scheme 20. Conclusion

Group: E Distribution Channel Of Businesses In Finland Country

Page No: 128 - 159

1. Distribution Channel 2. Comparative Position Of Selected Company 3. Competitive Position Of Distribution Channel System In India. 4. The Future Of India's Distribution Systems 5. Policy And Norms For Distribution Channel 6. Structure, Function Of The Business 7. Summary 8. Conclusion

Group: F Strategic Issue In Human Recourses Telecommunication Sector In Finland Country

Page No: 160 - 201

1. Introduction Of Telecom Industry 2. The Role Of Finland’s Public Policies 3. Structure Of Telecom Industry Of Finland 4. Regulatory Structure 5. Structure Of The Finnish Telecommunications Regulatory System 6. Liberalization Of Finnish Telecommunications Market 7. Telecommunications Market Act 8. Major Players In Telecommunications Market 9. Functions Of Telecom Sector 10. Comparative Position Of Telecom Industry India And Finland 11. India Telecom Sector 12. Finland Telecom Sector Position 13. Today’s Strategic Issues Of HRP In India. 14. Today’s HRP Issues Of Finland 15. Comparison Of Strategic HRP Issues In Both Country 16. India-Finland Relations 17. Bilateral Agreements 18. India-Finland Trade 19. Finland Telecom Sector‘S Policy And Structure Of Policy 20. Introduce Effective Compitions 21. Trade Barriers For Import/Export Telecommunication Sector 22. Import And Export In India 23. Business Opportunities In India 24. Conclusion 25. Suggestions

Part I

Economic Overview of the Finland

1.1 Demographic Profile of Finland:

Authoritatively the Republic of Finland is a Nordic country situated in the Fanons Canadian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.

Around 5.4 million people reside in Finland, with the majority concentrated in the southern region. It is the eighth largest country in Europe in terms of area and the most sparsely populated country in the European Union. Finland is a parliamentary republic with a central government based in Helsinki and local governments in 336 municipalities. A total of about one million residents live in the Greater Helsinki area (which includes Helsinki, Espoo, Kauniainen and Vantaa), and a third of the country's GDP is produced there. Other larger cities include Tampere, Turku, Oulu, Jyväskylä, Lahti and Kuopio.

Finland is inhabited by the Finnish people, and 92% of the inhabitants speak the Finnish language. Finland was historically a part of Sweden, and from 1809–1917 was an autonomous Grand Duchy within the Russian Empire. The Finnish Declaration of Independence from Russia in 1917 was followed by a civil war in which the leftist side was defeated with German support. Finland fought World War II as essentially three separate conflicts: the Winter War (1939–1940), the Continuation War (1941–1944), and the Lapland War (1944–1945). Finland joined the United Nations in 1955, the OECD in 1969, the European Union in 1995, and the eurozone since its inception in 1999.

Finland was a relative latecomer to industrialisation, remaining a largely agrarian country until the 1950s. Thereafter, economic development was rapid. Finland built an extensive welfare state and balanced between the East and the West in global economics and politics. With the best educational system in Europe, Finland has recently ranked as one of the world's most peaceful, competitive and livable countries.

The population of Finland is currently about 5,350,000. Finland has an average population density of 17 inhabitants per square kilometre.[6] This is the third-lowest population density of any European country, behind those of Norway and Iceland. Finland's population has always been concentrated in the southern parts of the country, a phenomenon that became even more pronounced during 20th-century urbanisation. The largest cities in Finland are those of the Greater Helsinki metropolitan area – Helsinki, Espoo and Vantaa. Other large cities include Tampere, Turku and Oulu.

Religion

Approximately 4.2 million (or 78.2%[109] at the end of 2010) adherents are members of the Evangelical Lutheran Church of Finland. The Evangelical Lutheran Church of Finland is one of the largest Lutheran churches in the world, although its share of the country's population has declined in recent years (See table at right.)[108] The second largest group, accounting for 19.2%[110] of the population, has no religious affiliation. In recent years, the church's position on homosexuality has spurred some Finns to declare themselves unaffiliated.[111][112] A small minority belong to the Finnish Orthodox Church (1.1%). Other Protestant denominations and the Roman Catholic Church in Finland are significantly smaller, as are the Muslim, Jewish and other non-Christian communities (totaling 1.3%).

Health

Life expectancy is 82 years for women and 75 years for men.[116] There are 307 residents for each doctor.[117] About 18.9% of health care is funded directly by households and 76.6% by taxation. A recent study by The Lancet medical journal found that Finland has the lowest stillbirth rate out of 193 countries, including UK, France and New Zealand. UK was 32 spots behind in the shared 33rd position with Belarus and Estonia. Nigeria and Pakistan had the highest stillbirth rates.

Society

Finnish family life is centered on the nuclear family. Relations with the extended family are often rather distant, and Finnish people do not form politically significant clans, tribes or

11 similar structures. According to UNICEF, Finland ranks fourth in the world in child wellbeing.

Finnish women were as well educated as their male counterparts, and, in some cases, the number of women studying at the university level, for example, were slightly ahead of the number of men. In addition to an expanding welfare system, which since World War II had come to provide them with substantial assistance in the area of childbearing and child- rearing, women had made notable legislative gains that brought them closer to full equality with men.

Cultural

Though Finnish written language could be said to exist since Mikael Agricola translated the New Testament into Finnish in the sixteenth century as a result of the Protestant Reformation, few notable works of literature were written until the nineteenth century, which saw the beginning of a Finnish national Romantic Movement. This prompted Elias Lönnrot to collect Finnish and Karelian folk poetry and arrange and publish them as Kalevala, the Finnish national epic. The era saw a rise of poets and novelists who wrote in Finnish, notably Aleksis Kivi and Eino Leino. Many writers of the national awakening wrote in Swedish, such as the national poet Johan Ludvig Runeberg and Zachris Topelius.

After Finland became independent there was a rise of modernist writers, most famously Finnish speaking Mika Waltari and Swedish speaking Edith Södergran. Frans Eemil Sillanpää was awarded the Nobel Prize in Literature in 1939. The second World War prompted a return to more national interests in comparison to a more international line of thought, characterized by Väinö Linna. Besides Kalevala and Waltari Swedish speaking Tove Jansson is the most translated Finnish writer. Literature in modern Finland is in a healthy state. Popular modern writers include Arto Paasilinna, Ilkka Remes, Kari Hotakainen, Sofi Oksanen and Jari Tervo,

Particular Information Population 5,259,250 (July 2011 est.) Population growth rate 0.075% (2011 est.) Birth rate 10.37 births/1,000 population (2011 est.) Death rate 10.24 deaths/1,000 population (July 2011 est.) Net migration rate 0.62 migrant(s)/1,000 population (2011 est.) Urbanization urban population: 85% of total population (2010) rate of urbanization: 0.6% annual rate of change (2010- 15 est.) Sex ratio at birth: 1.04 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.69 male(s)/female total population: 0.96 male(s)/female (2011 est.) Infant mortality rate total: 3.43 deaths/1,000 live births male: 3.73 deaths/1,000 live births female: 3.11 deaths/1,000 live births (2011 est.) Life expectancy at birth total population: 79.27 years male: 75.79 years female: 82.89 years (2011 est.) Total fertility rate 1.73 children born/woman (2011 est.) Nationality Finnish Ethnic groups Finn 93.4%, Swede 5.6%, Russian 0.5%, Estonian 0.3%, Roma (Gypsy) 0.1%, Sami 0.1% (2006) Languages Finnish (official) 91.2%, Swedish (official) 5.5%, other (small Sami- and Russian-speaking minorities) 3.3% (2007) Literacy definition: age 15 and over can read and write total population: 100%

male: 100% female: 100% (2000 est.) School life expectancy (primary to total: 17 years tertiary education) male: 16 years female: 18 years (2008) Education expenditures 5.9% of GDP (2007 Maternal mortality rate 8 deaths/100,000 live births (2008 Health expenditures 11.7% of GDP (2009) Physicians density 2.735 physicians/1,000 population (2008 Hospital bed density 6.52 beds/1,000 population (2008) Obesity - adult prevalence rate 15.7% (2008)

Milestones of the history of statistics in Finland

Sweden - of wich Finland was a part - was the first country in the world to found a statistical office to produce official statistics. This happened in 1748, and the office was named Tabellverket, Tabulation office. Before that, households were already enumerated for taxation purposes.

1648 the first population registers, kept by the parish prists

1748 the Tabulation Office, Tabellverket, was founded

1749 the first vital statistics in the world were compiled by the Tabulation Office

1865 the provisional Statistical Office of Finland, Statistiska Byrån, was founded

1879 the first Statistical Yearbook of Finland was published

1886 the first course of statistics was held at the University of Helsinki

1917 Finland became independent

1920 the Finnish Statistical Society was founded

1920-22 J. W. Lindeberg published the Central Limit Theorem

1945 the first chair of statistics was created at the University of Helsinki

1948 national accounts were calculated for the first time

1955 Finland joined the UN

1961 Finland became an associate member of the EFTA (full member 1986)

1969 Finland joined the OECD

1975 the interview organisation of Statistics Finland was founded

1990 a completely register-based population census was carried out

1995 Finland joined the European Union

1995 the Internet service of Statisctics Finland was opened

Recent History

Finland's recent history has been a time of enormous change with the transformation from a desperately poor, primarily agricultural society in the 1920s to one of the world's most advanced nations in the space of one lifetime. The late 1990s were dominated by the growth of the Finnish economy and Finland's development as an EU Member State including their successful EU Presidencies in 1999 and 2006.

The rapid growth of the 1980s had been abruptly checked by the collapse of the Soviet Union (Finland's single largest trading partner - but on a clearing basis): between 1991 and 1993, Finnish GDP fell by 10%, unemployment quadrupled to 20% and public debt rose to record

15 levels. This encouraged the Finns to refocus the economy towards high technology products aimed at Western Europe - a decision that has now paid off handsomely.

The collapse of the Soviet Union allowed Finland to step out of its political shadow. Finland saw its interests best represented within the European Union and became a full member in 1995. Membership of the EU did not change long standing de-facto commitment to its non- aligned status. The Maastricht Treaty did not establish a military alliance and allowed individual countries to continue with their own defence arrangements. Finland considered these provisions to be compatible with non-aligned status.

The government, (led by Paavo Lipponen 1999 - 2003) pursued economic policies, to meet the Maastricht Criteria for EMU. This included reining in public spending and cutting unemployment benefits despite strong union opposition. Finland was among the first wave of EU member states to adopt the euro. This followed a public debate that centred on Finland’s vulnerability to asymmetric shocks (such as the collapse of the Russian Rouble in 1998). As a result of the debate, Finland developed a unique "buffer fund" solution under which funds are set aside against possible future hard times. Finland became the only Nordic EU member to adopt the Euro as the national currency.

The current Finnish Government has identified a number of areas that could be addressed over the coming years in order to improve Finland's international competitiveness:

• further reform of the world leading education system focusing on universities and adult learning

• more resources into Research and Development: target of +4% of GDP

• addressing the growing demographic deficit

• measures to attract more foreign investments

• prioritising infrastructure investment on links crucial for international competitiveness.

1.2 Economic overview of the Finland

Finland is strongly competitive in manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in high- tech exports such as mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Forestry, an important export earner, provides a secondary occupation for the rural population. Finland had been one of the best performing economies within the EU in recent years and its banks and financial markets avoided the worst of global financial crisis. Longer- term, Finland must address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.

ECONOMIC INDICATORS Population (2009) 5,351,427 Unemployment rate (2009) 8,2% GDP at current prices (euro) (2009) 171,3 GDP per capita (euro) (2009) 32 088 GDP annual growth (forecast for 2010) 1.1% Inflation rate (2009) 1.6% Total exports (million euro) (2009) 45,063 Total imports (million euro) (2009) 43,655 Internet access (2009) 78%

Finland GDP Growth Rate

The Gross Domestic Product (GDP) in Finland expanded 0.9 percent in the third quarter of 2011 over the previous quarter. Historically, from 1975 until 2011, Finland's average quarterly GDP Growth was 0.59 percent reaching an historical high of 5.00 percent in September of 1980 and a record low of -5.50 percent in March of 2009. Finland has a highly industrialized, largely free-market economy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important, with exports equaling almost one-third of the GDP. This page includes: Finland GDP Growth Rate chart, historical data, forecasts and news. Data is also available for Finland GDP Annual Growth Rate, which measures growth over a full economic year.

Chart-1

Inflation Finland 2011 (CPI)

The inflation chart and table below feature an overview of the Finnish inflation in 2011: CPI Finland 2011. The inflation rate is based upon the consumer price index (CPI). The CPI inflation rates in the table are presented both on a monthly basis (compared to the month before) as well as on a yearly basis (compared to the same month the year before).

Using the tabs you can switch between the 2011 CPI inflation overview and the 2011 HICP inflation overview. In case you are interested in the long term development of the inflation in Finland (CPI), click here. For the current inflation in Finland (CPI), click here. Following link provides you with an overview of current inflation by country (CPI).

• inflation - CPI

• inflation - HICP

The average inflation of Finland in 2011: 3.42 %

1.3 Overview Of Industrial Trade And Commerce

Finland’s economic success requires the further removal of barriers to export and investment and an open import policy that promotes competition. The key challenges include customs duties and non-tariff barriers to trade and trade-distorting measures that are still prevalent in many markets.

Industries:

Metal and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing

Industrial production growth rate:

-16.3% (2009 est.) Country comparison to the world: 159

Oil - production:

8,718 bbl/day (2009 est.) Country comparison to the world: 86

Natural gas - production:

NA (2008 EST.)

Current account balance:

$3.444 billion (2009 est.) Country comparison to the world: 31 $8.206 billion (2008 est.)

Debt - external:

$364.9 billion (30 June 2009) country comparison to the world: 22 $339.5 billion (31 December 2008)

Stock of direct foreign investment - at home:

$85.71 billion (31 December 2009 est.) Country comparison to the world: 36 $83.14 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$118.7 billion (31 December 2009 est.) Country comparison to the world: 23 $116.1 billion (31 December 2008 est.)

Exchange rates:

Euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)

Taxation :

Corporation tax (26%) is uniform for all types of corporate income, including sales profits, interest income, dividends, royalties and rental income; value-added tax (VAT) is charged at 23% on most goods and services. Reduced tax rate of 13% is applied to the sale of food and animal feed and to serving of foods and reduced rate of 9% to cinema performances, physical exercise services, books, pharmaceuticals, passenger transport services, accommodation services etc.

1.4 Overview of Economic Sectors of Finland

Finland has a highly industrialised, mixed economy with a per capita output equal to that of other western economies such as France, Germany, Sweden or the United Kingdom. The largest sector of the economy is services at 65.7 percent, followed by manufacturing and refining at 31.4 percent. Primary production is 2.9 percent. In 2000, the balance between Finland's economic sectors was consistent with those of most OECD nations, with agriculture contributing 5 percent to the GDP, industry 32 percent, and services 63 percent.

1. Agricultural

Finland's climate and soils make growing crops a particular challenge. The country lies between 60° and 70° north latitude - as far north as Alaska - and has severe winters and relatively short growing seasons that are sometimes interrupted by frosts. However, because the Gulf Stream and the North Atlantic Drift Current moderate the climate, Finland contains half of the world's arable land north of 60° north latitude.Until the late nineteenth century, Finland's isolation required that most farmers concentrate on producing grains to meet the country's basic food needs.

2. Forestry

Forests play a key role in the country's economy, making it one of the world's leading wood producers and providing raw materials at competitive prices for the crucial wood-processing industries. As in agriculture, the government has long played a leading role

22 in forestry, regulating tree cutting, sponsoring technical improvements, and establishing long-term plans to ensure that the country's forests continue to supply the wood-processing industries.

3. Industries

From the 1990s, Finnish industry, which for centuries had relied on the country's vast forests, became dominated by to a larger extent by electronics and services, as globalisation lead to a decline of more traditional industries.

Outsourcing resulted in more manufacturing being transferred abroad, with Finnish-based industry focusing to a greater extent on R&D and hi-tech electronics.

As per above chart,The industry sector contributes significantly more employment.

Electronics

The Finnish electronics and electrotechnics industry relies on heavy investment in R&D, and has been accelerated by the liberalisation of global markets. Electrical engineering started in the late 19th century with generators and electric motors built by Gottfried Strömberg, now part of the ABB Group. Other Finnish companies – such as Instru, Vaisala and Neles succeeded in areas such as industrial automation, medical and meteorological technology. Nokia is a world leader in mobile telecommunications.

Metals, engineering and manufacturing

Finland has an abundance of minerals, but many large mines have closed down, and most raw materials are now imported. For this reason, companies now tend to focus on high added-value processing of metals.The exports include the production steel, copper, zinc and nickel, and finished products such as steel roofing and cladding, welded steel pipes, copper pipe and coated sheets. Outokumpu is known for developing the flash smelting process for copper production and stainless steel. the world's largest cruise ships are built in Finland; also, the Finnish company Wärtsilä produces the world's largest diesel engines. In addition, Finland also produces train rolling stock.The manufacturing industry is a significant employer of about 400,000 people

Chemical industry

The chemical industry is one of the Finland's largest industrial sectors with its roots in tar making in the 17th century. It produces an enormous range of products for the use of other industrial sectors, especially for forestry and agriculture. In addition, its produces plastics, chemicals, paints, oil products, pharmaceuticals, environmental products, Biotech products and petrochemicals. Biotechnology is regarded as one of the most promising high- tech sectors in Finland and it is growing rapidly.

Pulp and paper industry

Forest products has been the major export industry in the past, but diversification and growth of the economy has reduced its share. In the 1970s, the pulp and paper industry accounted for half of Finnish exports. Furthermore, several of large international corporations in this business are based in Finland. Stora Enso and UPM were placed #1 and #3 by output in the world, both producing more than ten million tons. M-real and Myllykoski also appear on the top 100 list.

Energy industry

Finland's energy supply is divided as follows: nuclear power - 26%, net imports - 20%, hydroelectric power - 16%, combined production district heat - 18%, combined production industry - 13%, condensing power - 6%. One half of all the energy consumed in Finland goes to industry, one fifth to heating buildings and one fifth to transport. Lacking indigenous fossil fuel resources, Finland has been an energy importer. This might change in the future since Finland is currently building its fifth and approved the building permits for its sixth and seventh reactors.

As far as employment is concerned, the following figures indicate the employment contribution of the various sectors:

• Agriculture and forestry- 4.5%

• Industry-18.2%

• Construction- 7.3%

• Commerce-15.9%

• Finance, insurance, and business services- 14.5%

• Transport and communications- 6.9%

• Public services- 32.7%

1.5 Overview Of Business And Trade At International Level

Finland has a highly industrialized, free-market economy with a per capita output equal to that of other western economies such as France, Germany, Sweden, or the U.K. The largest sector of the economy is services (64.9%), followed by manufacturing and refining (32.4%). Primary production is at 2.7%. In 2010 the Finnish economy recovered from the 2009 financial crisis better than most forecasts predicted, and showed a broad-based growth of 3.1%. The forecast for 2011 predicts an export-driven annual growth of 3.6%. GDP growth in 2012 is expected to average 2.7%.

Foreign Trade in Figures :

Foreign Trade Indicators 2006 2007 2008 2009 2010 Imports of Goods (million USD) 69,375 81,704 91,781 60,890 68,095 Exports of Goods (million USD) 77,206 90,025 96,456 62,855 69,264 Imports of Services (million USD) 18,571 22,613 30,377 25,636 22,864 Exports of Services (million USD) 17,388 23,167 31,772 27,482 24,750

Trade by regions in 2010, share % Regions Exports Imports

EU 55.6 56.4

Euro area 31.0 33.2

External trade 44.4 43.6

Developing countries 16.8 16.1

Exports - commodities: electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber

Exports - partners: Germany 10.32%, Sweden 9.79%, Russia 9%, US 7.85%, Netherlands 5.9%, UK 5.24%, China 4.1%

Imports - commodities: foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, grains

Imports - partners: Russia 16.28%, Germany 15.76%, Sweden 14.65%, Netherlands 6.99%, China 5.29%,

Multilateral Relations

Finnish foreign policy emphasizes its participation in multilateral organizations. Finland joined the United Nations in 1955 and the EU in 1995. As noted, the country also is a member of the North Atlantic Treaty Organization's (NATO) Partnership for Peace as well as a member in the Euro-Atlantic Partnership Council. As a NATO partner, Finland had 178 military troops and 39 civil crisis management experts in Afghanistan as of November 2010, serving with a Swedish-led Provincial Reconstruction Team in the province of Mazar-e- Sharif and working to create a secure environment for reconstruction in northern Afghanistan.

1.6 Present Trade Relations And Business Volume Of Different Product With India

Finland and India have traditionally enjoyed warm and friendly relations. In the recent past, there has been a perceptible increase in the level of engagement, both political and commercial, which saw the exchange of the visit of the Prime Ministers of the two countries during the same calendar year (2006).This was followed by a visit by the President of Finland Mrs. Tarja Halonen in January 2007 and February 2009 and Finnish Prime Minister Mr. Matti Vanhanen visited India in February 2008 and February 2010, to attend the Delhi Sustainable Development Summit organized by TERI. In 2011 there are frequent 27

exchanges of visits from both counties. Finland sees in India a large market for its products and a favorable investment destination for its high technology industries whereas India views Finland as an important member of the EU and a repository of modern technology.

India-Finland Trade: Indo-Finnish economic and trade relations have grown steadily in recent years with bilateral trade reaching Euro 748 million in 2008, but declining a little bit in 2009 due to global slowdown.

Following are figures for the past few years: Value: € million

2007 2008 2009 2010 Exports from India to Finland 191.52 219.49 230.44 349 Imports by India from Finland 453.56 529.24 450.24 599 Total 645.08 748.73 680.68 948

Export items export items from India have been garments, made ups and textiles accounting for about a third of the exports. Other major items include metals, iron and steel, chemicals, petroleum products and leather.

Import items Major imports fromFinland include telecommunication equipment, power generating machinery,electric and other machinery.

Investment: On the investments side, large Finnish companies like Nokia, Kone elevators, Wartsila and Elcoteq have set up manufacturing facilities in India. Over 80 Finnish

companies now have operations in India and 30 Indian companies, mainly in the software and consultancy sector are working in Finland.

Tourism: Favoured Finnish tourist destinations in India are Goa and Kerala, though other destinations are also becoming increasingly popular. With the commencement of direct Finnair flights from Helsinki to New Delhi in 2006 the number of Finnish visitors has increased. Finland is among the five countries for which visa on arrival scheme has been made applicable 1st January, 2010. During the winter months (October-March) Finnier operates two to three charter flights a week to Goa, depending on demand.

1.7 PESTEL Analysis

Stability of government, social policies, trade 1) Political factors regulations, tax policies and entry mode regulations

2) Economic factors Inflation, interest rates, exchange rates,

Health, growth rate, age distribution, 3) Social factors career attitudes and emphasis on safety

R&D activity, automation, technology 4) Technological factors incentives and rate of technological change

Attitudes towards the environment ( in terms of demand and supply for product, 5) Environmental factors pollution or conserving the nature), climate, weather

Employment regulations, competitive 6) Legal factors regulations, product regulation, and health and safety regulations.

PESTEL analysis for Finland

Outlined below is the PESTEL analysis for Finland as a whole.

1) Political Factors

i. Constitutional System

Finland joined the European Union in 1995 and adopted the euro as its currency in 1999. The country is sparsely populated, with about one-fourth of its land mass above the Arctic Circle, but boasts a modern, competitive, and transparent economy with vibrant information and communications technology sectors.

ii. Stability of Government .

. The economy remains a world leader in business freedom, trade freedom, property rights, and freedom from corruption. Private enterprises continue to blossom and promote innovation in an efficient regulatory and legal environment.

iii. Business Freedom

The overall freedom to start, operate, and close a business is strongly protected under Finland’s regulatory environment. Starting a business takes an average of 14 days, compared to the world average of 35 days. Obtaining a business license requires much less than the world average of 18 procedures and 218 days.

2) Economic Factors

Economic Freedom Score - 73.8

Tariff Rate 1.3

Income Tax Rate 30.5

Corporate Tax Rate 26.0

GDP (billion) 188.2

GDP per Capita 35427

Tax Burden % GDP 43.1

Government Expenditure % GDP 47.3

Population (billions) 5.3

Economic Freedom vs World Average

i. Fiscal Freedom

Finland has moderate tax rates but a relatively high level of overall taxation. The top income tax rate is 30.5 percent, with municipal rates between 16.5 percent and 20 percent.

ii Monitory Freedom

Finland uses the euro as its currency. Between 2006 and 2008, Finland’s weighted average annual rate of inflation was 3.1 percent. As a participant in the EU’s Common Agricultural Policy, the government subsidizes agricultural production, distorting the prices of agricultural products.

iii Investment Freedom

Finland is open to foreign direct investment. Certain acquisitions of large companies may require follow-up clearance from the Ministry of Trade and Industry. Non– European Economic Area investors must apply for a license to invest in security, electrical contracting, alcohol, telecommunications, aviation, and restaurants. Regulation is relatively transparent and efficient

3) Social Factors

i) Changes in lifestyles and trends

Doesn’t have many changes in lifestyles and trends since Finland are counted as one of the modern countries.

ii) Educational levels

The education levels in Finland are very good where the literacy is 100% for both male and female. The average school life expectancy is 17 years.

iii) Labor Freedom Ranks

Burdensome labor market regulations hamper employment opportunities and productivity growth. The non-salary cost of employing a worker is high, and dismissing an employee can be costly. Restrictions on work hours are rigid.

iv) Freedom of corruption

Corruption is perceived as almost nonexistent. Finland is tied for 5th place out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008. Finland is a signatory to the OECD Anti-Bribery Convention.

4) Technological Factors

i. Science and Technology

Technology and innovation policy measures seek to contribute to enhancing the competitiveness of Finnish industry and the well-being of society, with the aim of making Finland capable of providing companies with a top-flight innovation environment internationally, which also attracts foreign R&D investments.

ii. Research and Development

R&D funding will be increased to 4 per cent of Finland’s gross national product. This funding will be allocated to centres of strategic excellence in sectors that are pivotal to the development of the national economy, society and citizens’ welfare.

5) Environmental Factors

i. Climate

Cold temperate and potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes.

ii. Current issues

Air pollution from manufacturing and power plants contributing to acid rain, water pollution from industrial wastes, agricultural chemicals; habitat loss threatens wildlife populations.

6) Legal Factors

i. Employment Regulations ii. Health and Safety Regulations iii. Trade and Regulations Standards

1.8 Conclusion

Finland is a republic which became independent in 1917. The head of state is the president. Ultimate political power is vested in the 200-member unicameral parliament. The population of Finland today is a little over 5 million.

Overall the present position of industry is too good of Finland country, major they are in manufacturing of nokia that is telecom sector. Metal and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing Further they are in agriculture and oil industry also.

Finland has a highly industrialized, largely free-market economy, with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing—principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important, with the export of goods representing about 30% of GDP. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. The economy has recovered from the recession of 1990-92, which had been caused by economic overheating, depressed foreign markets, and the dismantling of the barter system between Finland and the former Soviet Union. A relatively high unemployment rate (estimated at 7.7% in 2005) has been persistent but recent indicators show that the situation may be improving.

For importing tariff is more imposing, but better fact is that major of its nokia products are used in India. And mainly in Gujarat.

As the taxation duty is levied high, mainly India go for joint venture with Finland companies.

Our major interest is in country’s growth, and with duly research we found that Finland is the best for our GCR project.

Part II

Industries & Companies Study Of

Finland Country

Group: A

Advertising And Media Industry And Its Role In The Finland Country Economy

Introduction

Finland has a literate and well-informed society. Ninety percent of citizens over the age of 15 spend about 40 minutes reading a daily newspaper; and on average read 10 magazines per year. The Finnish national library system, with nearly 1,000 libraries, has the most books per capita compared to other European countries. Not surprisingly, more books are borrowed per capita from their national library system than from other European systems.

Finland's population of 5.3 million is served by a multitude of newspapers, magazines, radio stations and TV channels, and the internet is challenging traditional media on all fronts.

Role of advertising in economic development

1. advertising makes jobs.

2. Economic growth.

3. Job creation.

4. advertising reduces selling costs.

5. advertising also increases company profits.

Media industry and different types of media

1. Traditional Media

A) Print Media

• There are 31 seven-day dailies, more than in any other Nordic country.

• Of all 51 dailies, 11 titles appear outside chain ownerships.

Ø Newspaper

With just over 2,800 newspapers published in finland in 2001, Finland ranked 18th in the world for newspaper publications and 3rd in the world, behind Japan and Norway, for newspaper circulation per 1,000 persons.

Ø Magazines

The second biggest category in print media, after newspapers, are magazines and periodicals. Magazines accounted for 17.2 percent of the share of mass media market.

B) Radio

• The public service radio is in lead in the two oldest age group.

• Public service channels and commercial radios each get half of the audience.

• The three biggest commercial radio companies in foreign ownership.

Public service radio

The public service company YLE broadcasts radio signals on three nationwide channels.

1. YLE Radio 1.

2. Radio Suomi.

3. YLEX, and two channels in Swedish.

C) Television

There are three major operators in cable television broadcasting:

1.YLE (public service company).

2. MTV Media.

3. Nelonen Media with Channel Four and Sport channel.

D) Cinema

The domestic film production accounts for only a relatively small proportion. Per capita cinema-going is at a lower level than in most other Western European countries.

E) Telecommunications

Finland’s communications market is small and national. Conditions for network business are challenging with 17 inhabitants per sq km and area of 340,000 sq km. Rapid technological changes happening in the operating environment — such as communications infrastructure becoming more Internet-based.

2. New Media

A) Online

According to a representative survey, reading online magazines is one of the most widespread purposes of Internet use. More than half of the whole population aged between 16 and 74 years and around 70 percent of Internet users read online magazines and newspapers.

B) Digital media

• 394 Internet connections per 1,000 inhabitants.

• Five media owned websites among the top ten visited portals.

• Internet penetration approaching that of newspapers.

Media companies of Finland

1. Agapio Racing Team

Agapio Racing Team was an famous finnish dubbing company that dubbed a number of cartoons for VHS release and Finnish television on MTV3 .

2. Alma media

- Aamulehti,

- Italehti,

- Monster.fi,

- Etuovi.com

- City24.

3. Dubberman Finland

Dubberman is a Finnish dubbing company situated in Helsinki. The company dubbing for TV channels and film distributors.

4. Evia Oyj

Evia Oyj is one of the largest Finnish marketing communication agencies, which is founded in1955.

5. Gummerus

Gummerus Oy is a Finnish media group that was founded in 1872 by Kaarle Jaakko Gummerus. In 1985, it moved its headquarters from Jyväskylä to Helsinki. In 2008, it had an annual turnover of EUR 26,9 million. Annually, it publishes approximately 200 new titles, which are sold in bookstores, departmental stores and book clubs.

Gummerus Oy consists of three divisions:

- Gummerus kustannus oy

- Kielikone oy

- Kirjatori oy

6. MYTV international

MYTV International Ltd is a pioneering company in digital entertainment media industry. The field of operations includes business music and music video service for DJs and VJs, IPTV development. MYTV product family combines the multimedia and networking technology to produce a digital media networking system that provides control and

41 flexibility of delivering entertaining and promotional content. The products of MYTV International Ltd. are TrendSign and miXJay.

Structure Functions And Business Activities Of Advertising

Structure of advertising :

A) Account service department

The account service, or the account management department, is the link between the ad agency and its clients. Depending upon the size of the account and its advertising budget one or two account executives serve as liason to the client. The account executive’s job requires high degree of diplomacy and tact as misunderstanding may lead to loss of an account. The account executive is mainly responsible to gain knowledge about the client’s business, profit goals, marketing problems and advertising objectives.

B) Media department

The responsibility of the agency’s media department is to develop a media plan to reach the target audience effectively in a cost effective manner. The staff analyses, selects and contracts for media time or space that will be used to deliver the ad message. This is one of the most important decisions since a significantly large part of the client’s money is spent on the media time and/or space. The media department has acquired increasing importance in an agency’s business as large advertisers seem to be more inclined to consolidate media buying with one or few agencies thereby saving money and improving media efficiency.

C) Creative department

To a large extent, the success of an ad agency depends upon the creative department responsible for the creation and execution of the advertisements. The creative specialists are known as copywriters. They are the ones who conceive ideas for the ads and write the headlines, subheads and the body copy. They are also involved in deciding the basic theme of the advertising campaign, and often they do prepare the rough layout of the print ad or the commercial story board.

Creation of an ad is the responsibility of the copywriters and the art department decides how the ad should look.

D) Production department

After the completion and approval of the copy and the illustrations the ad is sent to the production department. Generally agencies do not actually produce the finished ads; instead they hire printers, photographers, engravers, typographers and others to complete the finished ad. For the production of the approved TV commercial, the production department may supervise the casting of actors to appear in the ad, the setting for scenes and selecting an independent production studio. The production department sometimes hires an outside director to transform the creative concept to a commercial.

E) Finance and accounting department

An advertising agency is in the business of providing services and must be managed that way. Thus, it has to perform various functions such as accounting, finance, human resources etc. it must also attempt to generate new business. Also this department is important since bulk of the agency’s income approx. 65% goes as salary and benefits to the employees.

Functions of advertising

1. Talent & Creative productions

The basic function of an Ad Agency is providing talent.This function involves processing the information collected from the client and through research and designing communication material in the form of advertisements and other publicity material. This also includes planning creative strategies, copy or script writing, visualization, designing, layout, shooting of films, editing, giving music, etc.

2. Research

The second function of an Ad agency is research. One of the first jobs is to research the product and the company, one must learn, one possibly can about both. Ad agencies use research as a tool to test consumer reactions to products and services.

3. Distribution & Media planning

The third important function of an ad agency is distribution. This includes which media to be used, which part of the media to be used, when to place the ads and for how long to place the ads, etc. media planners keep track of the viewer ship, listener ship and readership of all kinds of media.

4. Monitoring Feedback

By monitoring consumer feedback, a decision on whether to revise the message, the medium, the target audience or all of them can be made.

5. Graphic Design

Logos, websites, posters, brochures... You name it, we make it.We have many designers to choose; young, old, accurate and bold. And a huge network of translators and all kinds of help we ever need. Over 15 years in advertising has opened many doors.

Business activities of advertising

Purpose

The main purpose of finnish advertising and media industry is , to ensure fair advertising practices and to improve such practices in terms of their quality so consumers interest may be protected, thereby contributing to the sound growth of the economy and the maintenance of the people's living standards.

Business activities of finnish advertising and media industry

1. Reception and handling of inquiries concerning advertising.

2. Handling of complaints and inquiries from consumers

3. Handling of inquiries from advertising companies, media, and other business.

4. Examination and instruction as to advertising.

5. Collaboration with self-regulatory organizations of advertisers, media, etc.

a. Communication meetings with media in the regions

b. meetings with advertising bodies

c. meetings with fair trade councils

d. alliance with consumer organizations and relevant administrative bodies

6. Education and public relations activities for firms and consumers

a. Issuance of reports (for members)

b. Dispatch of lecturers to lectures and workshops

c. Public relations on the website

Comparative Position Of Advertising And Media Industry With India And Gujarat

Advertising and media industries in finland

Advertising agencies are outside companies that provide for the marketing and advertising needs of other businesses and organizations. Advertising agencies offer a full range of advertising services and advice based on market studies, popular culture and advanced sales techniques. Because Advertising agencies produce logos, creating effective and attractive color schemes to draw the consumer's attention to their clients' ads. They also prepare slogans and brochures, and write descriptive copy for sales materials. They may produce public service announcements for charitable organizations and social programs as well, and issue press releases for new programs, events, and products. Advertising agencies use assorted forms of media to promote their clients' businesses or organizations, including

45 magazine advertisements, newspaper ads, radio and TV commercials, websites, and even infomercials. Some also plan events, provide booths at conventions, and give away promotional items.

The famous media companies in finland are….

1. Agapio Racing Team

2. Dubberman Finland

3. Evia Oyj

4. Alma media

5. Gummerus

6. MYTV international

7. Tuotantotalo werne

Advertising and media industries in India and Gujarat

The First World War created conditions for the growth of some of the Indian consumer industries. After the war, new British investment followed. The need arose for specialized advertising services. The British India Corporation, a British firm in Kanpur, with a relatively wide range of consumer goods, set up Alliance Advertising Associates Limited. This was probably the first advertising agency in India to provide a wide variety of services. In 1922, Mr. L.A. Stronach, a senior artist of Alliance Advertising, left to start his own agency in Bombay. Thus was born a new type of business enterprise in the service sector in India.

The Indian advertising industry had a slow start and got its first boost during the Second World War. With the British personnel having to join the armed forces, opportunities opened up for Indians in this new talent-intensive business.

By 1952 there were 109 advertising agencies in India with a total turnover of Rs 3.5 corer. By 1967, the number of advertising agencies had increased to 279 with a total turnover of Rs

35 corer. The Indian advertising industry has really come' into its own with the growing liberalization of the economy since the mid-eighties.

According to the fourth agency report of the journal Advertising and Marketing, the Indian advertising industry grew by 36.5 per cent in 1992 -93, far outpacing the growth of Indian industry. three of the top four advertising agencies in India continue to be subsidiaries of international advertising agencies-Hindustan Thompson Associates and Lintas India being the first two, and Ogilvy & Mather being the fourth. This is the process of globalization of Indian advertising agency business. This is opening up new opportunities for Indian advertising to assume greater responsibility and serve everywhere in the world and gather experience of global marketing and advertising.

Top 10 Advertisment Agency Of India

• Adbur Pvt Ltd

• Akshara Advertising

• Mudra communication ltd

• Chaitra Leo Burnett Pvt Ltd

• Contract Advertising (India) Ltd

• Crayons Advertising and Marketing Pvt Ltd

• Creative Advertising

• Enterprise Nexus Communications Pvt. Ltd

• Euro RSCG Advertising Pvt Ltd

• Everest Integrated Communications Limited.

The professional part of advertising in india is , They use modern advertising concept like T.V , screen advertising

Top 5 Advertisment Agency Of Gujarat

1) Sense Advertising ( Surat ).

2) A Chitra Publicity Co. Pvt. Ltd. ( Ahmedabad ).

3) Prashant publicity and advertising agency ( Rajkot ).

4) Web Based Publicity & Advertisement ( Nadiad ).

5) Shrey publicity and public relation agency ( Bharuch ).

The professional parts of advertising in Gujarat are….

1. Low budget for the company.

2. Lacking part of the company.

3. They use traditional advertising.

Services

(1) Hoardings

(2) NEWSPAPER ADVERTISING

(3) Road show advertising

(4) Television Ads

(5) Radio Ads

(6) Signboard

(7) Kiosk

(8) Branding

(9) Gantry

(10) Wall Painting

(11) Pick up Stand Painting

(12) Flex Printing.

(13) Glow sign boards

(14) All outdoor Services.

Policies And Norms Of Advertising And Media Industry In Finland

Regulations in Finland

The Finnish Parliament is discussing about the possibility of restricting alcohol marketing to include only product and price information. In Finland, marketing of alcoholic drinks below 22% was allowed in 1995. The initiative came from the Parliament’s Social Affairs and Health Committee. The committee was not unanimous and the final decision was made by drawing lots. Ever since alcohol marketing has increased heav ily in Finland and it is omnipresent on TV, radio, on billboards, magazines, shops, in sporting events and on the net.

In Finland there is only one regulation , which specifically refers to advertising and other sales promotion of alcoholic beverages. This regulation is included tin the "Alcohol Act" and it is statutory. This regulation can be amended only by the Finnish Parliament. Advertising targeted at minors (under 18s) is totally banned. This applies to all kinds of sales promotion and marketing pract ises, not only ads. Also depicting minors in ads is prohibited.

General rules and norms for advertising

1. General law on consumer protection applicable to all media

General law on consumer protection in Finland is the Consumer Protection Act referred as "CPA". CPA applies to the offering, selling and other marketing of consumer goods and services by businesses to consumers. CPA applies also where a business acts as an intermediary in the transfer of goods or services to consumers.

CPA includes general regulation of marketing are as follows:

1. Inappropriate marketing (Section 1)

2. False or misleading marketing (Section 2)

3. Price information (Section 3)

4. Several consumer goods being marketed at one price (Section 4)

If several consumer goods or services are being offered for one price or so that the purchase of a good or service entitles one to another good or service at a reduced price or to another specific benefit, the following information shall be clearly noted in the marketing:

(1) The content and value of the offer and, for goods and services marketed at one price, their individual prices, unless the individual price of a good or service is less than EUR 10;

(2) The conditions of the offer, especially its duration and the volume restrictions and other restrictions applying to it.

2. Comparative advertising

Comparative advertising is defined as advertising where a competitor or a good or service marketed by a competitor can be directly or indirectly recognised. Comparative advertising shall be allowed, in so far as concerns the comparison, provided that:

(1) It is not false or misleading;

(2) It pertains to goods or services that are used for the same purpose or for the fulfilment of the same need;

(3) The comparison is impartial and pertains to essential, significant, verifiable and representative characteristics of the goods or services, or to the price of the goods or services;

(4) It does not give rise to a danger of confusing the advertiser and the competi-tor, their trademarks, trade names, other distinguishing marks or goods and services;

(5) It does not belittle or dishonour the competitor’s trademark, trade name, other distinguishing mark, good or service, operations or circumstances;

(6) It does not take unfair advantage of the reputation of the competitor’s trade-mark, trade name or other distinguishing mark, nor of the original appellation of the good or service marketed by the competitor;

(7) It does not represent a good or service as a copy or reproduction of another good or service protected by a trademark.

Policies for advertising

1. Short-Rating if, at the end of Advertiser's contract with the Newspaper, the advertiser shall have purchased more or less volume (inches or pages) of advertising than agreed in the contract

2. Newspaper's Rate Card

The Newspaper may revise its advertisingrate schedule at any time upon 30 day written notice to Advertiser, and Advertiser may, without penalty, cancel its advertising contract at any time prior to the time the new rates become effective upon prior written notice to the Newspaper.

3. Right to Edit or Reject

The Newspaper may, in its sole discretion, edit, classify, reject at any time any advertising copy submitted by Advertiser. If the Newspaper rejects your advertising, the Newspaper will help you design or rewrite your copy at your request.

4. Payment for advertising

Advertiser shall pay for the advertising purchased under its contract according to the terms indicated on the Newspaper's invoices, and, if it fails to timely pay as provided for in the invoices.

5. Indemnification

Advertiser agrees to indemnify, defend and hold harmless the Newspaper from all claims (whether valid or invalid), suits, judgments, proceedings, losses, damages, costs and expenses, of any nature whatsoever (including reasonable attorneys' fees) for which the Newspaper or any of it's affiliates may become liable by reason of Newspaper publication of Advertiser's advertising.

6. Ownership of Advertising Copy

All advertising copy which represents the creative effort of the Newspaper and/or the utilization of creativity, illustrations, labor, composition or material furnished by it, is and remains the property of the Newspaper

7. Taxes

If any federal, state or local taxes are imposed on the printing of the advertising material or on the sale of advertising space, such taxes shall be assumed and paid by advertiser.

8. Cancellations

The closing time for cancellations is the same as the copy deadline for the ad. Cancellations will not be accepted after the applicable closing time.

9. Agency commissions

Agency Commissions, if any, shall apply to all space charges and adjustments under Advertiser's contract.

Business Opportunities In Future

The most important attractive thing of Finland is on Indian industry is its gifted as a source Of hi technologies and hi-tech products to get increasing needs for technology upgrades of Indian industry. Finland is also a key window for wider interaction with the larger European market.

1. Textiles

Textiles and clothing is one of the biggest industries in India in the way of its Important contribution to employment and the way of exports. In the ending of the Multi-fiber Contract at the end of 2004, quotas on international trade in clothes have been raised . specialty of Cotton, silk and fabrics hold important and potential for India’s international trade.

2. Food Processing Industry

India is among the world’s largest producers of cereals, milk, fruits, vegetables and poultry, growth being Carry on by rising domestic demand for food and beverage products.

3. Energy And Environmental Technologies

The Indian Ministry of Environment and Forests is investing to much in environmental protection strategies, prevention of pollution and support for clean technologies.

4. Telecome Equipment

Finland is one of the biggest market for the telecom equipment. The telecom equipment manufacturing sector already has a performing dominating role presence in the Finnish firm, Nokia, which makes mobile handsets is one of the biggest mobile handset company clearly seen in the areas of setting up a manufacturing base for semiconductors and fabrication of chips in India.

5. Chemicals

India has a wider chemical industry to get the needs of the domestic market and also to provide export demand. India’s exports have a strong grip in the specialty chemicals market.

6 .Cement

Both cement and steel will have high demand in the years ahead. India is the world’s second- largest producer of cement after China. Finland also show their interest in the way of cement industries and also have opportunity to both the country to do a business in future.

A mixture(synthesis) of the Perspectives

The discussions report above provide a basis for a SWOT analysis of the areass with respect to business cooperation between India and Finland. The discussions picures that the status of technology, competitiveness, trade openness, and growth determinants lean to light on capable areas for co-operation. The path for both side economic cooperation can be summarized

Ø Making exports and imports cost-efficient through improving access to supply chains in Europe, improving logistics of distribution.

Ø Technology innovation.

Ø Infrastructure development along the lines of Special Economic Zone.

Ø FDI for skill development in specialised sectors.

Ø Modified R&D.

Ø Joint ventures for cookery to other growing markets, specifically South Asia.

Ø Investment for Intellectual Property Rights development

Ø Investment for information and due attentiveness to disseminate global quality standards among Indian exporters and manufacturers.

Ø Development of sector-specific project appraisal skills in financial Institutions.

Ø Integration of the value chain within India for improved terms of trade.

Group: B

Performance Analysis of

Finland Stock Exchange

Introduction of Helsinki

There are mainly two exchanges for working of stock market operation and standardization of all contacts. In India like wise NSE and BSE, in Finland there are given below two exchanges

1. NASDAQ OMX Helsinki Ltd

Helsinki Stock Exchange is the marketplace for all trading except derivative trading, which is conducted through the Stockholm Stock Exchange. Helsinki Stock Exchange is a part of NASDAQ OMX Group.

A part of the Nasdaq OMX Nordic exchange is also First North which is an alternative marketplace for small growth companies. Companies at First North are subject to the rules of First North and not the legal requirements for admission to trading on a regulated market.

Companies admitted to trading at First North are given the same possibilities as large companies but the regulations are lighter. It does not have the legal status as an EU-regulated market.

Nasdaq OMX Nordic is the integrated Nordic and Baltic marketplace, offering operational reach to approximately 80% of the Nordic and Baltic securities markets and it includes the stock exchanges in Copenhagen, Stockholm, Helsinki, Iceland, Tallinn, and Vilnius.

2. Nordik Derivatives exchange (NDX)

Nordic Derivative Exchange is a market for listing and trading of derivatives and other structured products like currency futures and index futures.

The trading is electronic and conducted in the same platform as Nordic Growth Market Equity The market is operated by Nordic growth market a regulated exchange under the supervision of the Swedish Financial Supervisory Authority.

Structure

Trading System

INET is Nasdaq OMX core technology used across NASDAQ OMX’s U.S. and European markets. Today it powers NASDAQ OMX’s U.S. equities and options platforms including The NASDAQ Stock Market, NASDAQ OMX BX, NASDAQ OMX PHLX, The NASDAQ OMX Options Market, and NASDAQ OMX Europe. INET was rolled out on NASDAQ OMX’s Nordic and Baltic markets on February 8, 2010.

Trading Hours

Official trading hours Local time

Equities 10:00 - 18:20 (Closing call 18:20 - 18:30)

Derivatives 10:00 - 18:25

Warrants 10:00 - 18:25

ETF 10:13 - 18:25

First North 10:15 - 18:20 (Closing call 18:20 - 18:30)

Bonds 10:00 - 18:20

After trade 1 18:31 - 19:00

After trade 2 08:30 - 09:45

Security Identifiers ISIN (International Securities Identification Numbering) is the only security identifier used in the Finnish market.

Role of helsinki stock exchanges

1. Mobilizing savings for investment

When people draw their savings and invest in shares (through a IPO or the issuance of new company shares of an already listed company), it usually leads to allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to help companies' management boards finance their organizations.

This may promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels of firms. Sometimes it is very difficult for the stock investor to determine whether or not the allocation of those funds is in good faith and will be able to generate long- term company growth, without examination of a company's internal auditing

2. Raising capital for businesses

The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public.

Common forms of capital raising

Besides the borrowing capacity provided to an individual or firm by the banking system, in the form of credit or a loan, there are four common forms of capital raising used by companies and entrepreneurs. All of these available options, might be achieved, directly or indirectly, involving a stock exchange.

Going public

Capital intensive companies, particularly high tech companies, always need to raise high volumes of capital in their early stages. By this reason, the public market provided by the stock exchanges, has been one of the most important funding sources for many capital intensive startups.

After the 1990s and early-2000s hi-tech listed companies' boom and burst in the world's major stock exchanges, it has been much more demanding for the high-tech entrepreneur to take his/her company public, unless either the company already has products in the market and is generating sales and earnings, or the company has completed advanced promising clinical trials, earned potentially profitable patents or conducted market research which demonstrated very positive outcomes.

This is quite different from the situation of the 1990s to early-2000s period, when a number of companies (particularly Internet boom and biotechnology companies) went public in the most prominent stock exchanges around the world, in the total absence of sales, earnings and any well-documented promising outcome.

Anyway, every year a number of companies, including unknown highly speculative and financially unpredictable hi-tech startups, are listed for the first time in all the major stock exchanges - there are even specialized entry markets for this kind of companies or stock indexes tracking their performance (examples include the Alternext, CAC Small, SDAX, TecDAX, or most of the third market companies).

Limited partnerships

A number of companies have also raised significant amounts of capital through R&D limited. Tax law changes that were enacted in 1987 in the United States changed the tax deductibility of investments in R&D limited partnerships.

In order for a partnership to be of interest to investors today, the cash-on-cash return must be high enough to entice investors.

As a result, R&D limited partnerships are not a viable means of raising money for most companies, especially hi-tech startups.

Venture capital

A third usual source of capital for startup companies has been venture capital. This source remains largely available today, but the maximum statistical amount that the venture company firms in aggregate will invest in any one company is not limitless (it was approximately $15 million in 2001 for a biotechnology company).

At those levels, venture capital firms typically become tapped-out because the financial risk to any one partnership becomes too great.

Corporate partners

A fourth alternative source of cash for a private company is a corporate partner, usually an established multinational company, which provides capital for the smaller company in return for marketing rights, patent rights, or equity.

Corporate partnerships have been used successfully in a large number of cases.

Comparative position of Finland stock market & India stock market

Finland stock market

Date High price Low price Closing price Change in % 30-03-2007 3080.34 3056.02 3077.7 100.17 29-06-2007 3275.53 3239.52 3249.31 99.89 28-09-2007 3326.74 3305.38 3323.68 100.02 28-12-2007 3015.19 2975.75 3010.11 100.42 31-03-2008 2697.2 2652.62 2687.76 100.05 30-06-2008 2475.86 2421 2469.06 100.12 30-09-2008 2007.16 1911.43 1980.27 100.63 30-12-2008 1523.24 1476.47 1515.65 102.85 31-03-2009 1274.61 1250.65 1272.38 101.71 30-06-2009 1,642.69 1,602.10 1,602.21 98.07 30-09-2009 1,951.70 1,917.75 1,926.10 99.16 30-12-2009 2,042.26 2,023.25 2,032.59 100.24 31-03-2010 2,255.63 2,234.82 2,246.04 99.92 30-06-2010 2,113.49 2,080.32 2,094.53 99.96 30-09-2010 2,437.19 2,396.13 2,414.67 100.47 30-12-2010 2,652.14 2,628.48 2,628.48 99.36 31-03-2011 2,653.18 2,634.70 2,637.82 99.55 30-06-2011 2,392.73 2,353.96 2,392.73 102.19 30-09-2011 1,894.78 1,841.40 1,853.21 97.73 30-12-2011 1,942.06 1,910.42 1,942.06 101.34

CHANGE IN %

103

102

101 100 99 98 CHANGE IN % 97 96 95

07 07 07 08 08 08 08 09 09 09 10 10 10 11 11 11 ------03 07 11 03 07 07 11 03 07 11 03 07 11 03 07 11

------01 01 01 01 01 01 01 01 01 01 61 01 01 01 01 01 01

We have taken the base price 3072.61 of 29 th march 2007.

There is 100.17% change in closing price. From 30-03-2007 to 31-03-2008 there is a100.05 % change in the closing price of Helsinki stock exchange.

Above chart shows that the performance of the OMX helsinkinki stock exchange varies from 100.17% to 101.34% from the year 2007 to 2011. Here we have taken into consideration the quarter wise changes in the closing prices.

India stock market

Date High price Low price Closing price Change in % 30-03-2007 13111.87 12984.13 13072.10 100.71 29-06-2007 14663.25 14574.45 14650.51 101.00 28-09-2007 17361.47 17152.31 17291.10 100.82 31-12-2007 20484.28 20239.63 20286.99 100.4 31-03-2008 16226.66 15563.15 15644.44 95.56 30-06-2008 13872.06 13405.54 13461.60 97.53 30-09-2008 12995.20 12153.55 12860.43 102.1 31-12-2008 9825.90 9587.92 9647.31 99.29 31-03-2009 9826.22 9547.21 9708.50 101.47 30-06-2009 14907.48 14420.41 14493.84 98.03 30-09-2009 17142.52 16868.46 17126.84 101.63 31-12-2009 17530.94 17365.37 17464.81 100.7 31-03-2010 17699.50 17488.55 17527.77 99.65 30-06-2010 17725.04 17373.78 17700.90 100.95 30-09-2010 20114.73 19864.46 20069.12 100.57 31-12-2010 20552.03 20412.76 20509.09 100.99 31-03-2011 19575.16 19284.35 19445.22 100.8 30-06-2011 18873.39 18723.14 18845.87 100.81 30-09-2011 16745.16 16404.78 16453.76 95.54 30-12-2011 15694.05 15406.93 15454.92 99.43

CHANGE IN %

103 102 101 100 99 98 97 CHANGE IN % 96 95 94 93 92 07 07 07 08 08 08 09 09 09 10 10 10 11 11 11 ------03 07 11 03 07 11 03 07 11 03 07 11 03 07 11 ------01 01 01 01 01 01 01 01 01 01 01 01 01 01 01

We have taken the base price 12979.66 of 30-03-2007 , There is 100.71% change in closing price. From 30-03-2007 to 31 -03-2008 there is a 95.56 % change 30-03-2007 in the closing price of bse stock exchange.

Above chart shows that the performance of the bse sensex stock exchange varies from 100.71% to 99.43% from the year 2007 to 2011. Here we have taken into consideration the quarter wise changes in the closing prices.

Analysis

Ø In year 2006-07 the performance of BSE is more i.e 100.71 as compared to Helsinki stock exchange i.e 100.17. it shows that Indian stocks are providing more return than Finland stocks. Ø In year 2007-08 the performance of BSE is more i.e 99.29 as compared to Helsinki stock excha nge i.e 102.85. it shows that Indian stocks are down compare than Finland stocks.

Ø In year 2008-09 the performance of BSE is more i.e 100.7 as compared to Helsinki stock exchange i.e 100.24. it shows that Indian stocks are high compare than Finland stocks. Ø In year 2009-10 the performance of BSE is more i.e 100.99 as compared to Helsinki stock exchange i.e 99.36. it shows that Indian stocks are down compare than Finland stocks. Ø In year 2010-11 the performance of BSE is more i.e 99.43 as compared to Helsinki stock exchange i.e 101.34. it shows that Indian stocks are high compare than Finland stocks.

Foreign Direct Investment Statistics

1. As a result of the international financial crisis, direct investment inflows and outflows were modest in 2009. Weakening results of Finnish investment enterprises and a decline in retained earnings reduced the value of nonresidents’ investments in Finland. 2. In 2009 Finnish direct investment recorded a capital 3. outflow of EUR 2.8 billion. Finnish financial and insurance companies, in particular, increased their investments abroad. 4. Inward direct investment was nil. As a consequence of the global financial crisis, no large international corporate acquisitions were made that would have boosted investment flows in 2009. Nor did investors provide significant financing for previously acquired enterprises. 5. At the end of 2009, the value of the stock of inward direct investment was 59 billion Euros. The steady investment growth in previous years came to a halt in 2008-2009. By economic activity, service companies accounted for 70 percent of the inward stock. 6. The stock of outward direct investment was 88 billion Euros at the end of 2009. In contrast to inward direct investment, the outward stock continued to grow at a modest rate in 2008-2009. 7. At the end of 2009, manufacturing companies were the investor group for almost 60 percent of outward direct investment. 8. By country, capital from Sweden accounted for the largest share (31 billion Euros or 52 percent of the stock) by far of inward direct investment. Other major investor countries

were the Netherlands and Denmark. The EU countries accounted for 93 percent of the inward stock. 9. Finnish companies' income on foreign direct investment abroad totaled 6.2 billion Euros and foreign investors' income on direct investment in Finland totaled 1.8 billion Euros. 10. No policies exist that govern the export of capital and outward direct investment. Holders of capital, Finnish and foreign, can move funds at will.

Present Position And Trend Of The Business

Finland is an advanced industrial economy with a thriving private sector and a business environment that is highly conducive to FDI. The government is business-friendly and the country has a developed infrastructure, a skilled workforce and competitive operating costs.

Red tape is minimal and Finland is one of the least corrupt countries in the world according to Transparency International.

Foreign-owned companies can benefit from government investment incentives and access to the latest research from the extensive cooperation between Finnish universities and the private sector.

Foreign investment in Finland is welcomed as a boost to the dynamism of the economy. As one of the most competitive and open economies in the world, Finland has a great deal to offer foreign investors.

Industries in focus

Invest in Finland is manned by experts whose job is to recommend actions for successfully taking advantage of Finnish business opportunities.

We believe that specialization is the key for obtaining the maximum benefit from your investment. That is why Invest in Finland has consultancy teams focusing entirely on two main areas: Industry & Technology and Trade & Services.

The former includes industries such as Clean tech, ICT, Healthcare & Wellbeing and Mining, while the latter includes Retail, Real Estate, Business Services, Logistics and Travel & Tourism.

Finnish retail trade starts year with high growth

Retail trade sales up by 9.0% and wholesale trade by 13.4%.

Retailers’ cash tills were ringing Finland in January 2011 as retail sales increased by 9.0% from the same month one year ago, according to Statistics Finland. The volume of retail trade sales also grew by 5.4%. In the daily consumer goods trade, sales grew by 8.5% and the volume of sales increased by 3.4%.

Department store trade also went up by 4.3% in value and 3% in volume. Wholesale trade sales grew by an impressive 13.4%, with volume increasing by 9.3%. The motor vehicle trade enjoyed the fastest growth of all with sales going up by 16.2% year-on-year and sales volume increasing by 15%. In total trade, sales grew by 12.5 per cent in January.

According to Statistics Finland’s figures for the year 2011, retail trade sales in Finland increased by 5.1% compared to 2010. The volume of retail trade sales was up by 2.1%. Wholesale trade sales grew by 7.8% and motor vehicle sales by 16.7%. Total trade sales increased by 8.1% in 2011 compared to 2010.

Professional consulting services

Invest in Finland offers a full set of professional, hands-on investment services that are always tailored according to your specific needs. The services cover every stage of setting up a business in Finland, ranging from initial data collection and opportunity analysis to networking and the actual business launch.

Please, choose from Invest in Finland's best-of-breed service packages below and learn more.

Many Finnish shopping centers grew in 2011

City Forum in Helsinki had the fastest sales growth per square metre with a 29.1% increase.

Many Finnish shopping centers enjoyed an increase in the number of visitors in 2011, according to statistics compiled by the Finnish Council of Shopping Centers.

The biggest increase was at the Elo shopping centre in Ylöjärvi which had 11% more visitors in 2011 compared to the year before. The highest sales per square metre was recorded at the Kamppi shopping centre in Helsinki with EUR 7021, followed by Hansa shopping centre in Turku with EUR 6010. City Forum in Helsinki had the fastest growth of sales per square meter with a 29.1% increase to EUR 5668.

In the capital city region, the number of visits increased the most at the Jumbo shopping centre in Vantaa which enjoyed 8% growth to reach a total of 9.4 million visitors.

The 10 million landmark is expected to be reached this year as more shoppers are now travelling to Jumbo from further afield. Visitors to Jumbo spent an average of EUR 44.8 per person.

The number of visits to Espoo’s Iso Omena shopping centre increased by 5.7% to a total of 9.3 million, with visitors spending an average of EUR 26.6. Myyrmanni shopping centre had 7.9 million visitors (up 1.3%), Sello 22.1 million visitors (up 0.9%), and City Forum 13.6 million visitors (up 0.7%). The number of visitors to Kamppi remained at 34 million. Itäkeskus, now known as It is, recorded 18.7 million visitors who spent an average of EUR 22.6.

According to Juha Tiuraniemi, Managing Director of the Finnish Council of Shopping Centers, a major future trend is the increase in services consumers can purchase at the shopping centers.

Finland aims to become model for sustainable mining

Minister of Economic Affairs Jyri Häkämies welcomes environmentally aware international investors in the Finnish mining industry.

Finland is taking measures with the aim of becoming a global model for sustainable mining activity, according to Finland’s Minister of Economic Affairs Jyri Häkämies who participated at the PDAC 2012 event in Toronto Canada this month.

“It is possible to combine environmental values and mining activity through developing technologies and the environmental know-how of companies,” said Häkämies at the event. He also emphasized the importance sustainable mining and a favorable political climate for the future development of the industry.

“In its recent report the Canadian Fraser Institute ranked Finland as the second most attractive location for the mining industry. A key factor for establishing a positive investment climate is the fact that the Finnish government has a clear and sensible mining policy vision that it is committed to,” said Häkämies.

The Fraser Institute’s survey is based on the opinions of mining executives representing 802 mineral exploration and development companies on the investment climate of 93 jurisdictions around the world.

Finland’s mineral resources are attracting a lot of attention from international investors. Häkämies welcomed the investments and emphasized the high level of environmental requirements in Finland.

He assured Finland’s readiness to work together with the mining industry to develop mining activities that take the environment into account in a better way than before.

Policy & Norms

Transparency of the Regulatory System

The legal and enforcement framework for competition conforms to European Community praxis. Finland brought its law into full conformity with the prohibition-based system of EC competition law in May 2004.

The Securities Market Act (SMA) contains regulations on corporate disclosure procedures and requirements, responsibility for flagging share ownership, insider regulations and offenses, the issuing and marketing of securities, and trading.

The law defines and takes into account new instruments, which have become common in financial markets, such as securities lending and repurchase agreements. Finnish legislation recognizes the same internationally common financial market contractual arrangements as legislation elsewhere in the EU.

Regulations concerning clearing of securities trades have been incorporated in the law since 1998. Clearing has become subject to licensing, and is supervised by the Financial Supervision Authority, which oversees the financial markets.

Due, in part, to the separate implementation of several EC Directives during the last few years, the Finnish Ministry of Finance is currently contemplating a revision of SMA order to conceive a more uniform structure.

Finnish tax, labor, health and safety, and related laws and policies are largely neutral towards the efficient mobilization and allocation of investment.

Finnish legislation does not normally influence regional distribution of investment except when specifically designed to do so, such as through regional incentive programs.

In Finland, the Act on the Openness of Public Documents of 1951 established the openness of all records and documents in the possession of officials of the state, municipalities, and registered religious communities.

Exceptions to the basic principle could only be made by law, or by an executive order for specific enumerated reasons such as national security.

The openness of unsigned draft documents was not mandated, but up to the consideration of the public official. This weakness of the law was removed when the law was revised in the 1990s.

The revised law, the Act on the Openness of Government Activities of 1999, also extended the principle of openness to corporations that perform legally mandated public duties, such as pension funds and public utilities, and to computer documents.

Efficient Capital Markets and Portfolio Investment

Credit is allocated on market terms and is made available to foreign investors in a non- discriminatory manner. The private sector has access to a variety of credit instruments. Legal, regulatory, and accounting systems are transparent and consistent with international norms.

The Helsinki Stock Exchange has since September 2003 been part of OMX, referred to as OMX Helsinki (OMXH). Since NASDAQ's acquisition of OMX in February 2008 the official name of the Helsinki exchange has been NASDAQ OMX Helsinki.

OMX Helsinki is part of the NASDAQ OMX Nordic division, together with the stock exchanges in Stockholm, Copenhagen, and Iceland

Trade barriers

The purpose of the survey was to collect information on trade barriers when importing from developing countries to Finland and/or the EU. The survey was sent out to 76 developing country embassies accredited to Finland. Nine of the countries replied to the survey.

The survey consisted of 14 questions concerning common obstacles to trade and investments, from technical barriers and tariffs to movement of persons. Finland being part of the EU, answers mainly related to the EU as a whole rather than Finland only. In the questionnaire there was also a place for suggestions for removing barriers.

Respondents consisted of different people in different positions. Some of the respondents represented a company and in some cases answers came from state officials.

Generally speaking only few problems or obstacles were found in this survey. 70% of the respondents reported no mayor obstacles at all.

Problems reported related most commonly to the fulfilment of standards and regulations, certifications and product-related regulation, and access to the EU market. Some of the respondents reported tariffs as obstacles to trade. For example, high tariffs on processed products were reported. Some respondents belong to the EPA (Economic Partnership Agreement) and EBA (Everything But Arms) arrangements, and thus they should be able to export to the EU without tariffs. Anti-dumping duties on some foodstuffs were also reported. Additionally, import quotas for certain products were found to be too small.

Subsidies for agricultural production and the level of protection for agricultural products in the EU were reported to be too high. These actions were declared as obstacles, which worked against the competitiveness of foreign firms.

As regards the movement of labour and people, the EU's strict immigration laws were seen as a problem.

Products mentioned in the survey included tropical flowers and fruits, coffee and its extracts, textiles and apparel, dog and cat food, fishery, coal, nickel, leather and its manufactures, canned mandarin, frozen strawberries, garlic, cooked poultry products, agricultural products e.g. cotton, honey, vegetables, tea, cocoa and oranges.

Policies And Norms Of Indian For Import Or Export

Review Of Policies And Programmes A review of the major policy developments and programmes of SEBI is given below:

Rationalization of guidelines for public issues

Keeping in view the changes in the capital market deriving from free pricing of shares and

Free access to market for funds by the issuers, the SEBI with the objective of increase the Investors’ base, allotted with the requirement of standard quantity of Rs.10 and Rs.100 (in terms of government circulars) and gave freedom to companies with dematerialized shares, to issue shares at any quantity but not below Re.1/- or decimal of a Rupee to be Determined by them.

This decision is also in conformity with the recommendation made by the Informal Group on Primary Market. The existing companies, which have issued shares at Rs.10 and Rs.100 also can benefit of this facility by consolidating/splitting their existing shares.

In order to enable the investors to take informed investment decisions, the stock exchanges were directed to indicate the denomination value of shares as fixed by the company along with the market quotation. However, the companies availing of this facility are required to strictly.

Obey to disclosures and accounting norms. Further, the SEBI decided that there would be only one set of disclosures and entry norms for all the issues irrespective of the issue price. Thus, the different requirements for making issues at par and premium were merged to create a common set of requirements.

All companies making public or rights issue of debt instrument (including convertible instrument) irrespective of their maturity/conversion period, shall obtain credit rating by at least one approved credit rating agency and disclose it in the offer document.

Where credit rating is obtained from more than one approved credit rating agency, all the credit ratings, including the unaccepted ratings, shall be disclosed.

The issuer shall give an undertaking in the offer document stating that they would give necessary co-operation to the credit rating agency in providing true and adequate information till the debt obligations in respect of the securities are outstanding In order to improve the sanctity of the allotment procedure for public issues it was decided that

Executive Director/Managing Director of the regional stock exchange along with the post issue lead merchant banker and the registrar to the issue, shall be responsible to ensure that the basis of allotment is finalized in a fair and proper manner.

NORMS:

Stock market regulator the Securities Exchange Board of India (Sebi) said that all scrip would have a circuitlimit from the day of listing on exchanges based on a one-hour pre-open trade, a move aimed at protecting retail investors from artificial pricing of shares.

Under the existing norms, the circuitlimit - the daily price band for movement of a scrip - is fixed on the second day, based on previous day's closing price.

The move is in response to complaints against operators and brokers manipulating price by creating artificial demand of IPOs and subsequent dumping of shares to the detriment of retail investors.

“In light of high volatility and price movement observed on the first day of trading, it has been decided to put in place a framework of trade controls for IPOs and re-listed scrip applicable to normal trading session,” the Sebi said.

The normal trading would start after the pre-open session of call auction on the Bombay Stock Exchange and the National Stock Exchange, the regulator said. “The (pre-open) session shall be for a duration of 60 minutesi.e from 9 am to 10 am...,” SEBI said.

Earlier, pre-open session used to form part of the scrip of Sensex and Nifty companies.

India’s stock market regulator is reviewing norms that govern the pledging or transfer of shares by promoters during the lock-in period after listing, three people familiar with the development said.

Under the existing rules, promoters should hold at least 20% of equity after a public float and these shares can’t be sold for a minimum three years from the date of allotment.

The Securities and Exchange Board of India (Sebi) is reviewing the minimum contribution and the lock-in period, apart from the shares changing hands. Discussions are at an early stage and the matter has not been taken up by the Sebi board yet.

In several foreign markets, while the lock-in period is 6-12 months, promoters are not allowed to pledge shares during that time. In India, though there are restrictions on pledging or transferring shares, there are exceptions.

Compulsory linking of issuer companies with a depository and compulsory trading by new IPOs

All new IPOs will be compulsorily traded in dematerialized form and guidelines of public issues were modified to make admission to a depository for dematerialization of securities, a pre- requisite for making a public or rights issue or an offer for sale. But the investors have been allowed to exercise option of either subscribing to securities in physical form or dematerialized form.

With the rapid expansion of the Indian capital market and with the fund managers all over the world showing a strong interest in investing a large number of their portfolios in the Indian markets, it was felt that a facility should be provided whereby an eligible overseas investor can place an order on a real-time basis, rather than telephonically.

The Stock Exchanges/ Members shall follow the following procedures for opening and maintaining the trading terminals abroad:

Eligibility Criteria

Such trading terminals shall be opened only by the Stock Brokers of the stock exchanges registered with SEBI and opening of terminals through sub-brokers shall not be permitted. These terminals shall be opened by the members only after obtaining permission from the respective stock exchanges.

RBI Permission

Such terminals overseas would be opened subject to the guidelines laid down by the RBI from time to time. Presently, RBI has laid down norms for opening of such offices abroad.

Permission by the Foreign Regulatory Authorities

The installation of such trading terminals shall be subject to the prior permission of the concerned regulatory authorities of the respective foreign countries, wherever required.

Operation of the terminals

Any investor abroad who is permitted to invest in India i.e. NRIs/FIIs shall be able to place orders on the trading terminal of the Exchange available at the office of the Indian broker maintained abroad. The order served on the live terminal shall be executed on the computer of the Exchange in India. The service to the clients shall be provided by the broker’s overseas office and its local office. These terminals shall include any of other options that the respective exchange may provide for connecting its trading terminal abroad to its trading system in India.

Contract Note

The contract note in favour of the client abroad shall be issued in India, however the same could be printed in the broker’s office abroad and shall be subject to the jurisdiction of the respective stock exchanges.

Capital Adequacy, Margins System & Brokerage

All such trades would be subject to usual margins, capital adequacy and intra-day trading limits and such other requirements fixed for the brokers by the Exchange.

The respective stock exchange shall ensure that investors do not pay the brokerage on such trades exceeding the maximum brokerage permitted as per the rules, regulations and byelaws of the exchange.

No Negotiated Deals shall be permitted through these terminals and only screen based order matching system shall be available on these terminals.

Settlement Procedure

All trades shall be settled in India in dematerialized form only.

Clients with status of FIIs shall settle the trade through their registered custodian/ designated bank.Clients with the status of NRIs/FIIs shall settle the trade through a designated bank. Such a designated bank shall be responsible for return of funds.

Monitoring & Surveillance

The respective stock exchange shall ensure that there is adequate monitoring and investigation mechanism for such overseas terminals in order to oversee trades.

Grievance Rectified Mechanism

The investors’ grievance for such cases shall be resolved by the respective Indian Stock Exchange through the existing arbitration mechanism.

The concerned Stock Exchange shall ensure that their members have the adequate arrangements for resolving the investors grievances and timely settlement of arbitration cases arising out of trades which are executed on these terminals.

Jurisdiction

The agreement between the trading member and constituent should, inter alia, state that, all trades, transactions and contracts are subject to the Rules, Bye Laws and Regulations of the Exchange and shall be deemed to be and shall take effect as wholly made, entered into and to be performed in the city of India for the purpose of giving effect to the provisions of the Rules, Bye Laws and Regulations of the Exchange.

Present Trade Barriers For Import Or Export Of Security

Trading Timing

Trading on the BOLT System is conducted from Monday to Friday between 9:15 a.m. and 3:30 p.m. normally.

Groups

The scrips traded on BSE have been classified into various groups.BSE has, for the guidance and benefit of the investors, classified the scrips in the Equity Segment into 'A', 'B', 'T' and 'Z' groups on certain qualitative and quantitative parameters. The "F" Group represents the Fixed Income Securities. The "T" Group represents scrips which are settled on a trade-to-trade basis as ainvestigation measure.

Trading in Government Securities by the retail investors is done under the "G" group.

The 'Z' group was introduced by BSE in July 1999 and includes companies which have failed to comply with its listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with both the depositories, viz., Central Depository Services Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for dematerialization of their securities.

BSE also provides a facility to the market participants for on-line trading of odd-lot securities in physical form in 'A', 'B', 'T' and 'Z' groups and in rights renunciations in all groups of scrips in the Equity Segment.

With effect from December 31, 2001, trading in all securities listed in the Equity segment takes place in one market segment, viz., Compulsory Rolling Settlement Segment (CRS).

The scrips of companies which are in demat can be traded in market lot of 1. However, the securities of companies which are still in the physical form are traded in the market lot of

77 generally either 50 or 100. Investors having quantities of securities less than the market lot are required to sell them as "Odd Lots". This facility offers an exit route to investors to dispose of their odd lots of securities, and also provides them an opportunity to consolidate their securities into market lots.

This facility of selling physical shares in compulsory demat scrips is called an Exit Route Scheme. This facility can also be used by small investors for selling up to 500 shares in physical form in respect of scrips of companies where trades are required to be compulsorily settled by all investors in demat mode.

Listed Securities

The securities of companies, which have signed the Listing Agreement with BSE, are traded as "Listed Securities". Almost all scrips traded in the Equity segment fall in this category.

Permitted Securities

To facilitate the market participants to trade in securities of such companies, which are actively traded at other stock exchanges but are not listed on BSE, trading in such securities is facilitated as " Permitted Securities" provided they meet the relevant norms specified by BSE

Tick Size:

Tick size is the minimum difference in rates between two orders on the same side i.e., buy or sell, entered in the system for particular scrip. Trading in scrips listed on BSE is done with the tick size of 5 paise.

However, in order to increase the liquidity and enable the market participants to put orders at finer rates, BSE hasreduced the tick size from 5 paise to 1 paise in case of units of mutual

78 funds, securities traded in "F" group and equity shares having closing price up to Rs. 15 on the last trading day of the calendar month. Accordingly, the tick size in various scrips quoting up to Rs.15 is revised to 1 paise on the first trading day of month. The tick size so revised on the first trading day of month remains unchanged during the month even if the price of scrips undergoes a change.

Computation Of Closing Price Of Scrips

The closing price of scrips is computed by BSE on the basis of weighted average price of all trades executed during the last 30 minutes of a continuous trading session. However, if there is no trade recorded during the last 30 minutes, then the last traded price of scrip in the continuous trading session is taken as the official closing price.

Basket Trading System

BSE has commenced trading in the Derivatives Segment with effect from June 9, 2000 to enable investors to hedge their risks. Initially, the facility of trading in the Derivatives Segment was confined to Index Futures. Subsequently, BSE has introduced the Index Options and Options & Futures in select individual stocks.

Investors in the cash market had felt a need to limit their risk exposure in the market to the movement in Sensex. With a view to provide investors the facility of creating Sensex- linked portfolios and also to create a linkage of market prices of the underlying securities of Sensex in the Cash Segment and Futures on Sensex, BSE has provided to the investors as well as to its Members a facility of Basket Trading System on BOLT with effect from August 14, 2000. In the Basket Trading System, the investors through the Members are able to buy/ sell all 30 scrips of Sensex in one go in the proportion of their respective weights in the Sensex. The investors need not calculate the quantity of Sensex scrips to be bought or sold for creating Sensex-linked portfolios and this function is performed by the system. The investors can also create their own baskets by deleting certain scrips from 30 scrips in the Sensex. Further, the investors can alter the weights of securities in such profiled baskets and enter their own weights. The investors can also select less than 100%

79 weightage to reduce the value of the basket as per their own requirements.

To participate in this system, the Members need to indicate the number of Sensex basket(s) to be bought or sold, where the value of one Sensex basket is arrived at by the system by multiplying Rs.50 to the prevailing Sensex. For example, if the Sensex is 15,000, the value of one basket of Sensex would be 15000 x 50= i.e., Rs. 7,50,000/-. The investors can also place orders by entering value of Sensex portfolio to be brought or sold with a minimum value of Rs. 50,000 for each order.

The Basket Trading System provides the arbitrageurs an opportunity to take advantage of price differences in the underlying Sensex and Futures on the Sensex by simultaneous buying and selling of baskets comprising the Sensex scrips in the Cash Segment and Sensex Futures. This would provide a balancing impact on the prices in both cash and futures markets.

The Basket Trading System thus meets the need of investors and also improves the depth in cash and futures markets.

The trades executed under the Basket Trading System are subject to intra-day trading and gross exposure limits available to the Members. The VaR, MTM margins etc, as are applicable to normal trades in the Cash Segment, are also recovered from the Members.

Settlement

Compulsory Rolling Settlement

All transactions in all groups of securities in the Equity segment and Fixed Income securities listed on BSE are required to be settled on T+2 basis (w.e.f. from April 1, 2003). The settlement calendar, which indicates the dates of the various settlement related

80 activities, is drawn by BSE in advance and is circulated among the market participants.

Under rolling settlements, the trades done on a particular day are settled after a given number of business days. A T+2 settlement cycle means that the final settlement of transactions done on T, i.e., trade day by exchange of monies and securities between the buyers and sellers respectively takes place on second business day (excluding Saturdays, Sundays, bank and Exchange trading holidays) after the trade day.

The transactions in securities of companies which have made arrangements for dematerialization of their securities are settled only in demat mode on T+2 on net basis, i.e., buy and sell positions of a member-broker in the same scrip are netted and the net quantity and value is required to be settled. However, transactions in securities of companies, which are in "Z" group or have been placed under "trade-to-trade" by BSE as a surveillance measure ("T" group) , are settled only on a gross basis and the facility of netting of buy and sell transactions in such scrips is not available.

The transactions in 'F' group securities representing "Fixed Income Securities" and " G" group representing Government Securities for retail investors are also settled at BSE on T+2 basis.

In case of Rolling Settlements, pay-in and pay-out of both funds and securities is completed on the same day.

Members are required to make payment for securities sold and/ or deliver securities purchased to their clients within one working day (excluding Saturday, Sunday, bank & BSE trading holidays) after the pay-out of the funds and securities for the concerned settlement is completed by BSE. This is the timeframe permitted to the Members to settle their funds/ securities obligations with their clients as per the Byelaws of BSE.

The pay-in and payout of funds and securities takes places on the second business day (i.e.,

81 excluding Saturday, Sundays and bank and BSE trading holidays) of the day of the execution of the trade.

The settlement of the trades (money and securities) done by a Member on his own account or on behalf of his individual,

Demat pay-in :

The Members can effect pay-in of demat securities to the Clearing House through either of the Depositories i.e.the National Securities Depository Ltd. (NSDL) or Central Depository Services Ltd. (CDSL). The Members are required to give instructions to their respective Depository Participants (DPs) specifying details such as settlement no., effective pay-in date, quantity, etc.

Members may also effect pay-in directly from the clients' beneficiary accounts through CDSL. For this, the clients are required to mention the settlement details and clearing member ID through whom they have sold the securities. Thus, in such cases the Clearing Members are not required to give any delivery instructions from their accounts.

In case a Member fails to deliver the securities, the value of shares delivered short is recovered from him at the standard/closing rate of the scrips on the trading day.

Pay-in of Securities in Physical Form

In case of delivery of securities in physical form, the Members are required to deliver the securities to the Clearing House in special closed pouches along with the relevant details like distinctive numbers, scrip code, quantity, etc., on a floppy. The data submitted by the Members on floppies is matched against the master file data on the

Clearing House. If there is no discrepancy, the securities are accepted.

Funds Pay-in

The bank accounts of Members maintained with the clearing banks, viz., Axis Bank Ltd.,Bank of India, Bank of Baroda, Canara Bank, Citi Bank, Corporation Bank, Dhanalaxmi Bank, HDFC Bank Ltd., Hongkong& Shanghai Banking Corporation Ltd., ICICI Bank Ltd, Indusind Bank Ltd., IDBI Bank, Kotak Mahindra Bank, Oriental Bank of Commerce., Punjab National Bank, State Bank of India, Standard Chartered Bank, Union Bank of India, Yes Bank are directly debited through computerized posting for their funds settlement obligations.

Securities Pay-out

Demat securities are credited by the Clearing House in the Pool/Principal Accounts of the Members. BSE has also provided a facility to the Members for transfer of pay-out securities directly to the clients' beneficiary owner accounts without routing the same through their Pool/Principal accounts in NSDL/ CDSL. For this, the concerned Members are required to give a client wise break up file which is uploaded by the Members from their offices to the Clearing House. Based on the break up given by the Members,

In case of physical securities, the Receiving Members are required to collect the same from the Clearing House on the pay-out day.

Funds Payout

The bank accounts of the Members having pay-out of funds are credited by the Clearing House with the ClearingBanks on the pay-in day itself In case a Member fails to deliver the securities, the value of shares delivered short is recovered from him at the standard/closing rate of the scrips on the trading day.

Close-out

Close-out is effected for cases when no offer for a particular scrip is received in an auction or when Members who offer the scrips in auction, fail to deliver the same or shortages pertaining to those groups of securities for which auctions are not conducted. The close-out rates for different segments are as under

'A', 'B' and 'F' group

The close-out rate is higher of the following rates : a) The highest rate of the scrip from the trading day to the day on which the auction is conducted for the respective settlement. b) 20% above the closing rate as on the day of auction/close out of the respective settlement. "Odd Lot", "T" and "Z" group and Patawat objections

The closeout rate is higher of the following rates: a) The highest rate of the scrip from the day of trading to the day of auction of the respective settlements; b) 10% above the closing rate as on the day of auction/ close out of the respective settlement.

"G" group

In case of shortages in "G" group, the shortages are closed out at Zero Coupon Yield Curve (ZCYC) plus a 5% penalty.

The closeout amounts are debited to the bank accounts of those Members who have failed to deliver the securities against their sale obligations and credited to the bank accounts of those Members who had bought the securities but did not receive the same.

Rectification of Bad Deliveries

One of the biggest problems faced by the investors in the secondary market while dealing in physical securities is that of bad delivery arising out of various reasons. Based on the reasons, these bad deliveries are classified into two categories, namely;

Potential For Import /Expot In India/ Gujrat

India

The agriculture ministry has said the country still has the scope to export another 2-2.5 million bales of cotton if fresh registrations for export are allowed in the coming weeks.

The ministry, which has been strongly opposed to the current cap on exports at 12.5 million bales, is of the opinion that if exports are re-opened at this juncture, only 2-2.5 million bales can be exported. The remaining cotton, from the total production of around 35 million bales in 2011-2012, has either been consumed domestically, exported or stored for the next year. One bale equals 170 kg.

“We feel that exports should be opened as it will help the growers get better price for their produce, else the area under cotton can shrunk in the next crop year that will start from October 2012," a senior agriculture ministry official said.

Cotton has this year turned into a big issue of dispute between agriculture department and textiles ministry, with textiles ministry demanding a stop on exports on the grounds that it was harming the domestic textiles industry. The agriculture department favoured unrestricted exports in the interest of farmers. In March, the government banned export of cotton after 9.4 million bales were shipped out of the country.

The ban was imposed over fears that any additional export of cotton would severely harm the

85 domestic textile makers. However, the curb was eased within a week following strong opposition from agriculture ministry and political parties on the grounds that the move was harming the growers who were already reeling from the impact of a sharp drop in domestic cotton prices this year.

Domestic cotton prices had fallen below the state-determined minimum support price (MSP) of Rs 3,300 per quintal in some places as output increased by around two million bales than last year.

The commerce department, while easing the ban on exports, allowed export of only those quantities that has been already registered with the Directorate General of Foreign Trade (DGFT). The blanket ban, nevertheless, remained. Last week, a group of ministers called to further allow exports decided against taking such a decision. Another meeting of the same group is scheduled to be held once the latest demand and supply position of cotton is ascertained for this year.

Gujarat

GSEC Limited was once known as Gujarat State Export Corporation Limited, a public limited company. Largely engaged in the activities of export and import facilities as merchant exporter, and is a custodian of Customs at Air Cargo Complex – Ahmedabad, and Indore in India.

Presently GSEC Limited offers customised air cargo solutions for importers and exporters’ supply chain. As an organized logistic player, GSEC Limited is associated to attempt and set the pace of Logistic Sector Transformation Phase of India, through outsized asset in acquiring global quality magnitude of industries’ knowledge, and perceptive to develop thorough as seer value organisation.

In return, the above is offering GSEC Limited a cutting edge of escalation and long term

86 sustainable opportunities in ferocious international, and optimistic domestic business environment.

To facilitate our clientele with Import & export of their products, GSEC Ltd. has initiated demystifying Impex procedures. We provide long term experience that adds value to your business. Our services range from consulting, designing, to manage and execution. This includes:

• GSEC Limited offers customised air cargo solutions for importers and exporters’ supply chain. • Spreading our wings to serve domestic trading of Furnace Oil, and bitumen.

• We are into exports of fruits, vegetables & other horticulture products

Our soon-to-be spotlight is onto ICD infrastructure project at MP, followed by oil refinery and sea cargo industry penetration.

Business Opportunity in future

Looking for a business opportunity in Finland?

Once you have information about the business and industry environment, the next step is a close examination of business possibilities.

With our assistance, you can identify sales opportunities, the highest value customer segments and the best sales channels.

You will also be able to discover fresh untapped sales leads, clarify your prospects, assess undiscovered market segments, benchmark your current performance, understand existing target segments and analyze your potential competitors.

Our professional consultants will be an extra resource for your business development team, providing valuable assistance such as in-depth market studies and feasibility assessments.

We can help you decide on the best business opportunities for exploiting current and future trends. As physical location is a critical factor in most business operations, listing the potential alternatives is a vital step.

Use of the consultation services we provide guarantees that you will be well positioned when you decide to make your move.

Invest in Finland at your service

Whatever your needs are, Invest in Finland’s experts will be pleased to help you. Our services are free of charge and always tailored to meet your precise needs.

The country offers superb R&D facilities, a highly educated workforce, and access to markets in northern Europe

When IT major Wipro Technologies acquired Finland-based Shareware Oy for Rs 146 crore in 2006, the deal helped Wipro break into high-growth segments such as secure communications.

It was also part of Wipro’s strategy to move closer to its clients in the Nordic region by getting local people to service its customers better. Saraware was an excellent fit. The 21- year-old Finnish company had competence in the areas of radio networks and secures mobile platforms and had 200 people working for it.

Wipro is among a host of Indian companies that have landed in Finland for almost similar reasons. TCS has had its presence in Finland for the last 10 years. Infosys, Sasken, Tooltech and Zensar are among the other Indian companies. Although majority of the firms are from the IT sector, there are exceptions. MJ Biopharm acquired a Finnish firm Medipolis GMP in

88 the middle of January 2007. While most Indian firms have preferred to take the M&A route, only a few have gone in for greenfield projects. “We have seen this quite a lot. Seventy percent of the deals that we are doing are M&As and only 30% are greenfield operations. Seems to be so that M&A is the easiest way into the market,” says Jari P. Ängeslevä, Investment Director, ICT Cluster, Invest in Finland.

Conclusion

Ø As a result of the international financial crisis, direct investment inflows and outflows were modest in 2009. Weakening results of Finnish investment enterprises and a decline in retained earnings reduced the value of nonresidents’ investments in Finland. Ø Finland is an advanced industrial economy with a thriving private sector and a business environment that is highly conducive to FDI. The government is business- friendly and the country has a developed infrastructure, a skilled workforce and competitive operating costs. Ø The former includes industries such as Clean tech, ICT, Healthcare & Wellbeing and Mining, while the latter includes Retail, Real Estate, Business Services, Logistics and Travel & Tourism. Ø Invest in Finland offers a full set of professional, hands-on investment services that are always tailored according to your specific needs. The services cover every stage of setting up a business in Finland, ranging from initial data collection and opportunity analysis to networking and the actual business launch. Ø It is possible to combine environmental values and mining activity through developing technologies and the environmental know-how of companies, said Häkämies at the event. He also emphasized the importance sustainable mining and a favorable political climate for the future development of the industry. Ø The law defines and takes into account new instruments, which have become common in financial markets, such as securities lending and repurchase agreements. Finnish legislation recognizes the same internationally common financial market contractual arrangements as legislation elsewhere in the EU.

Suggestion

Ø We suggested that foreign investor should invest in the market so they get get more benefit as compare with other country. Ø The growth of the finnis’s industries is remarkable so the opportunities of investment in various industry its beneficial for the invetors.

Ø Google finds itself in Finland Google, the name that is synonymous with internet searches, did not exactly trumpet its decision to turn a defunct paper mill outside the southeastern Finnish town of Hamina into a data centre. A data centre houses thousands of computers that, as Google’s pages describe it, “store and serve vast amounts of data”.

The above line shows that the finland is going to become a strong in the R&d and and IT infrastructure, so its good for the country’s growth and image.

Findings

Ø We found that Finland stock market is sometimes down as compare the Indian stock market. Ø We also found that in global crisis Indian stock market down as compare the Finland stock market. Ø In Indian stock market turnover high than the Finland stock market. Ø From understanding the report the main thing we learnt from the study is that the finnis having different market indexes for the spot market and derivative market. Ø If consider the Indian stock market in derivative aspect there are major difference in the both market condition in the both country. Ø In india we are using the derivative to reduce the risk were the finnis people are hedging the risk by derivative market. Ø The market procedure are similar but pep[ose of investment is different in both market of both countries.

Group: C

Banking sector in Finland

Country

Origin of Finland Bank

Finland banking that has been developed since the mid-nineteenth century, Control over investment capital gave a few large banks great power. Distinct laws for each type of bank contributed to the development of a fragmented banking structure in which separate types of institutions served different purposes and closely regulated by the central bank.

The Bank of Finland was founded in 1811.the Bank of Finland first provided the services of a true central bank in the 1890s. Formally independent, the BOF's management comprised bodies responsible to both the executive and the legislative branches of government.

Finland's commercial banks were the actual leaders of the financial industry, and they controlled most lending to Finnish corporations. About ten banks were considered to be commercial banks, only two--the Suomen Yhdyspankki (Union Bank of Finland) and the Kansallis-Osake-Pankki were national banks with extensive branch networks.

The cooperative and savings banks served regional and local customers, but usually exercise relatively little economic power. The savings banks were nonprofit banks, they served small-scale industry and households.

Although private banks created the strength of character of Finland's financial structure, state-owned banks still accounted for about one-quarter of bank assets in the mid- 1980s. The Postipankki, had about 40 branches of its own.

Currently, Finland has 14 commercial banks, 213 member cooperative banks, 38 local cooperative banks, 34 savings banks (28 banks + 6 limited companies) 14 deposit- taking branches of foreign credit institutions.

The three largest banking groups in Finland are OP-Pohjola Group, Nordea Bank Finland and Sampo Bank.

Banking operations

It includes saving, investment, financing, lending & payment related services. A stable financing structure can efficiently handle financing, payments program and risk management. Banking services had boost and diversified over the years in order to better meet the needs of increasingly diverse customers.

Different Types Of Services

Demand for loans recovered Demand for loans increased in 2010, and the loan portfolio of monetary institutions grew by 6.7%. In 2009, this growth was below 2% in 2009. This rise can be explain by increased housing loans and corporate loans.

New home loans granted to households by banks Bank’s lending depend on housing market and housing production. Lending to the housing association grew faster in 2010, mainly due to govt. support in housing production.

Households confident in housing loan market The borrowing of household’s grew up by 6% in 2010, From previous year’s.

Growth in fixed-term deposit accounts It was too faster, after the republication finish people majorly used this service to secure their income for future growth.

List of Commercial banks in Finland that have been selected:

• Evli Bank • Kaupthing Bank

• Nordea Bank Finland • Sampo Bank

• Tapiola Bank

(1) Evli Bank:

It was established in 1985 and is been a guide in the rapidly developing capital markets. Opening out as a four-man office, Evil has since expanded into an independent investment bank that today covers the whole region. Evil’s operation is not only seen by growth, but also by a strong sprit of enterprise and improvement.

The aim for its establishment was to provide smoother and better service to the general public of Finland.

(2) Kaupthing Bank:

Its currently in winging up proceedings during which Kaupthing is headed by the winging up committee.

The board of directors of Kaupthing bank willingly resigned from BOD. This was because of bank’s financial difficulties and a resolution committee was appointed for the Estate by the FME in accordance with Act.

(3) Nordea Bank :

It was founded in 2000 and its headquarter is in Stockholm, Sweden. Nordea sell its banking products as corporate and retail banking, asset management. Nordea’s vision is to be a Great European bank, acknowledged for its people, creating superior value for customers and shareholders.

Nordea is trying hard for their customers to reach their goals by providing a wide range of products, services and solutions within banking, asset management and

insurance. Nordea bank has about 11 million customers, approx. 1400 branch offices and it is 10 th largest universal banks in Europe in terms of total market capitalization.

(4) Sampo Bank:

Sampo Bank was established in 1887, Originally the Finnish state-owned Post and Savings Bank, which accepted deposits from the public at its post offices. In 1999, the state-owned bank was merged with Sampo PLC's insurance business to form the Sampo Group.

(5) Tapiola Bank :

Tapiola Bank was established in 1990 and it actated as modern bank serving mainly private persons online, by phone or at offices throughout Finland. The bank does not offer the OTC banking services.

In addition the bank offers personal advisory service to customers by appointment with regard to both loans and investments.

List of Commercial banks in India that have been selected:

• Axis Bank (Formerly UTI Bank)

• HDFC Bank • ICICI Bank

• Kotak Mahindra Bank • Yes bank

(1) Axis Bank:

The Bank was built-in 3rd December and Certificate of business on 14th December. The Bank transacts banking business of all account. UTI Bank Ltd. was promoted

by Unit Trust of India, Life Insurance Corporation of India, General Insurance Corporation of India and its four subsidiaries.

Axis bank was the first private sector bank to get a license issued by Reserve Bank Of India in 1997. Rs. 100 crores was contributed by UTI, and the rest from LIC Rs. 7.5 crorers.

(2) HDFC Bank:

HDFC Bnk was incorporated in 1994 by Housing Develpoment Finance Corporation Limited. Its india’s largest housing financing company.

(3) ICICI Bank:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.

In the 1990s, ICICI changed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide range of products and services.

(4) Kotak Mahindra Bank Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India.

Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. Today it has more than 20,000 employees and Rs. 10,000 core in revenue.

(5) Yes bank

Yes bank is private Indian Bank Catering to the “Future Businesses od India”, and is an outcome of the professional amd enterpreneural commitment of Rana Kapoor, founder as well as MD and CEO.

YES BANK has exemplified ‘creating and sharing value’ for all its stakeholders, and has created a differentiated Banking Paradigm. YES BANK has had a strong focus on Development Banking, as is evident from the cutting-edge work that the Bank has done in the area of Food & Agribusiness, Infrastructure, Microfinance, and Sustainability which in most cases has been first-of-its kind in India.

YES BANK has been recognized amongst the Top and the Fastest Growing Bank in various Indian Banking group Tables by high-status media houses and Global Advisory

Regulatory Authority

Following are the two regulatory authorities in both of the countries i.e. in India and in Finland.

ü Bank of Finland. ü Reserve Bank of India.

(A) BANK OF FINLAND

The Finland’s bank act as a Finland’s central bank, that is the Bank of Finland.

National authority and member of the European System of central banks and the euro system. The Central Bank of Finland is also popularly known as SUOMEN PANKKI it’s a Finnish bank. The headquarters of this bank is at Helsinki Erkki Liikanen is acting as a governor of this bank.

It was established in 1 st march 1812. The central bank of Finland is the Wordest fourth largest bank.

History

The Bank of Finland was established on 1 March in 1812 in the city of Turku by Alexander I of Russia. In 1819 it was relocated to Helsinki. The Bank shaped and regulated the Finnish Markka until Finland adopted the euro in 1999.

Functions and ownership

The Bank of Finland is a member of the European System of Central Banks. It is Finland's monetary authority, and is accountable for the country's currency supply and foreign exchange reserves.

The bank of Finland is owned by the Republic of Finland and governed by the Finnish Parliament, through the PSCBOD (Parliamentary Supervisory Council & the board of the Bank. It is responsible for the administration of the bank and its activities. The bank is governed under the provisions of the act on the bank of Finland, passed in 1998. The bank’s branch offices is in Kuopio, Tampere, & Oulu.

Organization

The highest authority is in hands of Governor and the governor chairs the board.

Monetary Policy

The euro system is in charge for the accomplishment of the single monetary in the euro area, where as Finland is part of the euro area. The main objective of monetary policy is to maintain price stability in the euro area. The currency is euro in Finland country.

To measure the monetary main instrument is interest rates, all the fluctuations in interest rates affects market prices & macroeconomic developments. Economic forecasts are published twice a year in official statement. Price stability is clear as a year to year increase in consumer price below 2%.

Financial Stability:

The bank of Finland’s set goals in the financial system and it can be crystallizes into two that is stability & efficiency. Financial markets execute the function of channeling surplus funds from private individuals and corporations to those individuals and corporations who are in need of financing.

A well organized and trustworthy functioning of the financial system is essential for the economy as a whole, an efficient allocation of funds altogether with financial stability, contributes to economic growth & prosperity.

Objective

The main objective of the Bank of Finland is price stability, which instance maintaining a reasonable rise in consumer prices. Price stability creates the essentials for a sound economy. In order to accomplish this objective he bank of Finland participates in the preparation and administrative process of the monetary policy as well as implementing it.

Statistics

The bank of Finland is accountable for compiling Finnish data for information on monetary financial institutions and balance of payments (BOP) statistics, as determined by the Governing Council of the central bank.

The statistics is been shown with regulations and guidelines relating to the contents and quality of its.

(B) Reserve Bank Of India

History

The RBI is the central bank of the India. Entrusted with monetary policy, stability, currency management and the supervision of financial and Of the payment system.

It was established in 1935, after its establishment the economic environment has been changed. It gives insights into the through processes that have helped shape the country’s economic policies.

Reserve Bank of India is the regulatory authority of all the banks operating in India. RBI issues the banknotes, maintain reserves with a view to securing monetary stability and to function the credit and currency system of the country to its benefit.

Functions

The bank was established for the following needs, to regulate the issue of banknotes, to maintsin reserve for monetary stability, for supervisory functions, to act as promotional functions, to control the credits of bank’s through quantitative controls. To control the system of bank’s through licensing and inspection for information.

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Structure

Central Board Of Director

Governor

Executive Director

Principal Chief Manager

Chief General Manager

General Manager

Deputy General Manager

Manager

Support Staff

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Rates of RBI

Bank Rate 9.50%

Repo Rate 8.50%

Reverse Repo Rate 7.50%

Cash Reserve Ratio (CRR) 4.75%

Statutory Liquidity Ratio (SLR) 24%

Deposit Rate 8.50% - 9.25%

Comparative Position Of Banks

In our project the criteria for comparing Finland with Indian commercial banks are as follows.

• Loans • performance of bank • capital adequacy • GDP

There are various criteria for comparison due to time and constraints; we have taken only four elements to make the area limited.

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1) Loan

In any bank loan is the major factor for growth. Banks provide loans to the general public for their use and to meet their demand the amount or the level at which they credit it differ from bank to bank and country to country.

In Finland the lo an is given as per individuals income, how much they need to borrow, their residence status, credit rating and history. The primary criteria for obtaining a loan is their capacity to repay the debt.

While in India the loan is given to creditab ility & payment capacity of persons. For taking a loan certain proofs are required that is background of a person his total property value any dues pending or not, his ability to repay and one witness or the guarantor of that individual etc.

The average interest rate of consumer is 4.83% in march 2011, in Finland the rate was quite stable over the preceding 12 months in India the rate is 7% for 180 days.

The average interest rate on housing loan is 2.40% in march 2011 in Finland cou ntry, where as in India it was 10 to 12%.

0.1

0.08

0.06 consumer credit

0.04 housing loan

0.02

0 Finland India

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2) Performance Of Bank

The commercial banks have made good progress over the last 5 years in India. This can be seen through several parameters such as annual credit growth, profitability, and trend in NPAs.

Any of the sectors main aim is to gain profit other than Non the other hand they are the betterment for the society and provide satisfactory service to the country people.

In India the progress is 30% while in Finland its 35 to 40% app

3) Capital Adequacy

Here the word capital adequacy means how much sufficient capital the bank is having with it. In Finland its 14.4% Indian commercial banks have good internal capital generation, reasonably active capital markets, and g capitalization for most banks during the period under study.

Where as its 14% in India at the same time high levels of public deposits ensured most banks had a relaxed liquidity profile.

0.144

0.142

0.14

0.138

4) GDP

GDP, the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and govt. spending, plus the value of exports, minus the value of imports.

The average GDP contribution in Finland is 3.1

Present Position And Trends Of Bank With India

New trends in payment and billing

The banks have adopted new trends for payment mode that’s now automatic payment model. At the same time bills will become e-invoices in Finland. At the end of 2012 Finland will join single euro payment area. After this, banks in Finland will no longer handle payments with Finnish account number and payment instruments.

Not only in Finland but in India also billing and payment have become electronically. This was the good progress for the commercial banks, like credit and debit cards, mobile payments etc.

Consumers using online banking services can either accept or reject the proposal on their online bank. If the consumer does nothing, the changes will take effect.

Bills go electronic

The transactions of the banks have became electronically, that’s consumer can use ATM services. According to a model introduced b banks, online bank ing consumers will receive a billing notification only as an e -invoice on the online bank and the bank would automatically pay the bill on the due date.

The Finnish consumer agency considers the model problematic, because online bank codes are not in actual available to all consumers.

Banks would refuse to pay the bills of people flagged s having default on payments. The same type of service offered to online banking customers will be offered to those consumers who do not use online banking services

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Policies And Norms Of Banking Industry

The policies and norms of central bank of Finland and RBI are mentioned below. Both are having its own unique characteristics.

Policies of central bank of Finland:-

1. Monetary Policy. 2. Exchange Rate Policy. 3. Foreign Reserves.

Monetary Policy

The main monetary instruments are the key interest rates. The level of key interest rates affects market prices and macroeconomic developments. The key interest rates of the Euro system are set by the Governing Council of the ECB which includes the Governor of the Bank of Finland as a member. Monetary decisions are based on the Council’s judgment at any one time of the risks to price stability in the euro area.

Exchange Rate Policy

The primary objective of the monetary policy of the Eurosystem is to maintain price stability. The Eurosystem has no explicit exchange rate objective. The euro floats freely in world foreign exchange markets.

Foreign Reserves

The ECB holds foreign reserves for any possible foreign exchange operations required. At the beginning of 1999 the national central banks (NCBs) of the euro area transferred part of their own foreign reserve assets to the ECB. The total transfer amounted to just under EUR 40 billion, of which gold accounted for 15%.

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Opportunities In Future

It has been believed that the forthcoming debt maturities of the Finnish corporate sector will represent a significant challenge for the Finnish banks. The absence of many foreign players which have problems in their respective home countries will undoubtedly exert pressure on Finnish and other Nordic banks in terms of refinancing these debt maturities.

Although this could also represent an opportunity for some banks to pick up good new clients, from the perspective of credit risk, banks’ risk profiles could increase, especially given that in some cases their credit risk concentration levels are already very high. There is too large scope for Finnish and Indian commercial banks.

Findings

1. Banking sector has become an emerging sector over the world wide. In India loans are easily available, even in Finland also. 2. Loan in India is given on the basis of creditability and payment capacity of persons. 3. In Finland, commercial Banks provide 4.83% as consumer credit, while compared to its low. India is providing at 7% for 180 days. 4. Housing loan in India is 10 to 12% in March 2011 and in Finland 2.40% in March 2011. 5. Over the last 5 years, the Indian banks have made good progress. Performance of banks is measured in different terms for in both the countries. 6. In India the criteria for performance is NPA for commercial banks, profitability was maintained at around 15% during 2010 to 2011. While in Finland the criteria for performance are deposits, operating profits etc. 7. Capital adequacy operating in Finland commercial bank was 14.4%. In India capital adequacy touching to 14% as on march 31, 2011.

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Conclusion

From the above project we would like to conclude that the commercial banks have been increased tremendously, since few years it’s observed.

It is no doubtless saying that banks in India also boomed up. This gave new and drastic changes in Indian economy. The contributions of commercial banks are high in GDP there is no much difference in Finland and Indian commercial banks.

Bank is been one of the service sector which generates a huge income and its main aim is to provide easily service available to the general public.

Loans are easily a available in both the countries, even the interest rates are not too high for common or for middle class people to repay it.

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Group: E

Distribution channel of business in Finland Country

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Distribution channel

The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be market-oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the suppliers difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort.

There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a compensation is offered to the distributors' sales personnel, so that they are tempted to push the product. Julian Dent defines this incentive as a Channel Value Proposition or business case, with which the supplier sells the channel member on the commercial merits of doing business together. He describes this as selling business models not products. In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales-force, calling on the larger accounts, with agents, covering the smaller customers and prospects.

These channels show marketing strategies of an organization. Effective management of distribution channel requires making and implementing decision in these areas.

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Comparative position of selected company

1. Finland’s retail sector turnover and profitability improved in 2010 2. The total turnover in Finland’s retail trade was EUR 115.5 billion in 2010 3. Wholesale trade turnover increased by 8.9%, retail trade turnover by 2.1% and car sales by 7.6% in 2010 compared to the year before. 4. In the wholesale trade the operating margin was 3.3% of the business income and in the retail trade 3.9%. 5. In 2010, profitability improved both in absolute terms and as a percentage of the previous year’s result. 6. In 2010 the gross margin on sales was EUR 26.1 billion, representing 22.6% of the total turnover. 7. Small and medium sized companies made up 37% of the total turnover and 51% of the sales margin. 8. Car sales enjoyed the biggest improvement in profitability with a 1.5% increase on the year before. 9. The gross sales margin in car sales totaled EUR 3.1 billion which was 20.2% of the turnover.

Competitive position of distribution channel system in India.

Distribution system in newspaper

In a newspaper organization like DNA (Gujarat version known as Divyabhaskar), there are Various factors that determine the successful operation of the sales and distribution channels.Accordingly, even minor issues in these operations can adversely affect the newspaper. A customer may choose a newspaper for various reasons. However, it’s up to the newspaper agencies to communicate to the customer that their newspaper can deliver all the values a customer may look for. The reach and popularity of a newspaper to a large extent depends on its distribution network. Here we have carried out an analysis on the delivery and

112 sales management of the DNA newspaper in order to better understand their channel and also ident if and provide possible solutions to any shortcomings. is dispatched to the respective area.

Relationships and Expectations

The various stakeholders in the value chain need to work closely to deliver the service quality expected in a newspaper delivery each morning without fail. This infallible commitment to the customers requires that each actor in the value chain clearly understands the expectations off him/her and clearly communicates his/her expectations to the others.

Company The company is at the head of the value chain and is clearly the Channel Leader. The customers come to the vendors and/or hawkers with an intention of buying a particular newspaper which clearly indicates that the brand of the product is important and not the vendor or hawker as such. Thus, from the point of view of the vendor/hawker, the supplier power is relatively high. The dealers (vendors/hawkers) expect the following from the company: 1. Timely delivery of the newspaper each morning in all weather conditions. 2. Proper quantity to be delivered each day as per their demands. 3. Newspaper which are not sold the prior day to be returned and reimbursed. 4. Their commissions to be maintained in the long run and not reduced especially as the newspaper circulation picks up. 5. Make it easier for them to collect newspapers 6. There are several customer segments on the basis of income and age categories and hence expectations differ. However, the following are a common subset across different segments: 7. The newspaper should report all “relevant” news reports from the previous day 8. There should be interesting feature articles suiting their taste.

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9. The presentation should be good including the print quality and colours. 10. The higher the newspaper weight, the better since it can be sold for a higher price at the kabadiwala.

Dealers

The dealers (vendors/hawkers) are the company’s sole touch point to the customers. The company’s relationship with hawkers is temporary since they have a fluctuating demand and 8 hence the important dealers from the company’s perspective are the vendors who typically have a committed demand based on the number of customers they serve. The company expects the following from these vendors: 1. To deliver the newspapers on time to the customers. 2. To ensure that they do not overcharge the customers making it expensive for the customers. 3. To ensure that any supplement/promotional material being sent along with the newspaper by the company being delivered to the customers without any pilferage (e.g. at times newspaper stick samples of products on pages in their advertiser’s promotion campaigns).

Customers

The company’s relationship with the customers is typically long term since people do not usually change their newspaper reading habits. We could not gather any clear expectations that the company executives had from their customers. On the editorial side, there could be expectations on content related feedback especially through letters to the editor etc. but these were not explicitly mentioned by the company executives.

Joint and Independent Decisions

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Financial and product related decisions are usually taken solely by the company. However, nonfinancial decisions in the value chain are either taken by the vendors or by the company or by joint consultation.

The service area for each vendor and the quantity each vendor buys is solely decided by the vendors. The company does not allocate territories or quotas. In fact, at times there can be severe rivalry among vendors for control over a particular area which can even lead to physical assaults, Newspaper Advertisements are of two types.

The ones printed in the paper which are decided solely by the company The ones through pamphlet-inserts are decided solely by vendors 9 Time of delivery to vendors is typically decided in consultation with vendors since they need to be present to collect the newspapers. Since each vendor may be collecting multiple newspapers, the time needs to be coordinated.

Physical Distribution

DNA prints 90,000 copies of newspapers daily. DNA knows about the daily demand from newspaper paper, like demand from newspaper vendors in Panjapore char rasta which is 20,000 copies daily. Mode of transportation used by DNA to deliver newspaper in different areas is different. Tempos are used for transporting newspapers in small quantities in towns near to printing press. For area where volume to be delivered is high trucks are used.

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The Future Of India's Distribution Systems

Organized Retail

Organized retail pharmacies are in a nascent stage in India, but have started making inroads in the distribution system. The first retail pharmacy chain was started by the Subiksha Retail Services Pvt Ltd. The Medicine Shoppe, one of the largest retail drug stores in the US, opened two retail outlets in Mumbai and has franchised three more in Mumbai, Calcutta, and Baroda. Others have also entered the field including Health & Glow, Pills & Powders, and Reliance that has set up units under the brand name of Reliance Wellness.

NitinGokarn, senior manager of supply-chain management (SCM) at Merck India, is optimistic for the growth of organized retail. He says that, "Though organized retail faces strong resistance from the traders lobby, it has a great potential." He also opines that, "It will take a great deal of political will and reforms to make this happen." With an organized retail system, pharmaceutical companies would be able to offer medicine at higher margins, and some speculate that retailers may even be able to pass on cost benefits to the end-users as well.

Large Untapped Rural Market

The growth of institutional sales had little impact on the accessibility of medicine in rural areas, according to an analysis by the Indian Retail Druggists and Chemists Association.

A large proportion of the rural population still does not have access to proper medication and the situation may take long to improve. Rural areas contribute around 21% to the total pharmaceutical market. In 2006–2007, the rural pharmaceutical market was estimated at around $1.4 billion. Nearly 70% of India's population lives in rural areas where the healthcare infrastructure is poor. With increasing rural household incomes, the rural market is becoming more attractive. According to estimates by the Planning Commission, rural households now spend 12% of their income on healthcare.

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Value Added Tax (VAT) Impact

With the introduction of VAT, medicine prices have been standardized and price discrimination, in which different states pay different prices for the same products, has reduced. VAT has also helped reduce the illegal interstate transfer of goods and the unethical interstate trade for higher margins. Per the new rules, sales tax is levied at each stage of value addition and credit for the tax paid on the inputs can be obtained.

IT Adoption

IT adoption in healthcare has grown drastically. Pharmaceutical companies have realized the need for integrated solutions in SCM to keep inventories at optimum levels, to improve distribution, to provide for liquidation of stock, and to streamline interconnectivity between manufacturing facilities, warehouses, and CFAs in different states. The use of software like SAP and SAS, apart from other customized software, is increasing. However, the adoption of technologies such as radio-frequency identification (RFID) has been slow.

Future Challenges

Pharmaceutical companies in India have realized the importance of SCM and are aggressively looking for ways to improve the costs associated with SCM. Distribution in India is proportionally much more costly than it is in the US or EU. The companies, which have spent as much as one-third of their revenues toward financing their supply-chain operations, recognize that the cost of logistics is very high in India. In US and EU, the expenditure on SCM alone is perhaps 2%, whereas in India, it averages 4–6% of total sales. According to Gokarn, "It's mainly because in India, the cost of drugs is very low compared to the developed markets. Taking into consideration the poor infrastructure and extreme geographic conditions, it is difficult to curtail the cost involved in SCM."

Long-Channel Inventory Management

The multilayered distribution channel and lobbying at all layers has been successful at preventing pharmaceutical companies from bringing in significant reforms toward higher trade margins, and at bypassing the multiple distribution layers to reach customers directly. Because pharmaceutical companies do not have direct access to retailers' data on sales

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(tertiary sales), most pharmaceutical companies depend on stockists' sales data to monitor sales (secondary sales). The primary sale involves transferring stock from the central warehouse to its CFA. The medical representatives are given predefined sales targets. To meet these targets they push inventory on the stockist to levels that exceed the actual demand. When the next level of sale does not take place, the stockist will either return goods to the company or the stock expires.

Increasing Competition Between Wholesalers and Retailers

Today, with so many mergers and acquisitions in the Indian pharmaceutical industry, the number of stockists for each company has increased. Now two stockists from the same company may be competing against each other. Retailers take advantage of this situation by prolonging the credit period and asking for more discounts, which has an adverse effect on stockists, because they have to comply with the retailers to sustain their business.

Brand Substitution

The emergence of generic drugs has also taken a toll on Indian pharmaceutical company sales, as prices can be almost two to 15 times less for the same drug. Moreover, to capture market share generics, companies offer higher trade margins at the retail level. Sometimes generic drugs provide up to 500% trade margins, which is a lucrative offer for a retailer to pass up, and this leads to brand substitution.

Recalling Drugs

There is no foolproof system for recalling drugs in India. Once a medicine is released into the market, it becomes a daunting task for a pharmaceutical company to recall because of the highly fragmented nature of the distribution network. Newer technologies such as RFID would help in keeping track of products along the entire chain and would prevent counterfeit drugs to enter into the system.

International Competitiveness and Cold-Chain Management

Indian pharmaceutical companies are increasingly seeking opportunities to supply drugs to the world market. More developed cold-chain management practices will be required to

118 achieve this goal. This is one of the major challenges faced by the industry if they are to retain product quality during shipment. Companies like Eli Lilly in India have implemented initiatives such as having their own vehicles equipped with cold-chain management systems. Other companies such as World Courier have developed cold-chain management models to help pharmaceutical companies maintain the cold chain.

Policy and norms for distribution channel

As India is a liberal country we had a mix economy in India, there is no restriction to do a business with any country in world. Government regulates all sector which is necessary to control the industry. There are some policy and norms for distribution system in India which every citizen should follow. A company has autonomous to select any type of distribution system either within the country or outside the country. Companies should take in the mind that a customer should get a benefit from it.

Introduction of distribution channel

A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. This channel consists of: - producers, consumers or users and the various middlemen like wholesalers, selling agents and retailers (dealers) who intervene between the producers and consumers. Therefore, the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities.

A distribution channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution.

The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most

119 consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be market-oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of supplier.

A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. This channel consists of: - producers, consumers or users and the various middlemen like wholesalers, selling agents and retailers(dealers) who intervene between the producers and consumers. Therefore, the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities. A channel of distribution consists of three types of flows:-

Downward flow of goods from producers to consumers \

Upward flow of cash payments for goods from consumers to producers

Flow of marketing information in both downward and upward direction i.e. Flow of information on new products, new uses of existing products, etc. from producers to consumers. And flow of information in the form of feedback on the wants, suggestions, complaints,etc from consumers/users to producers.

An India has a number of alternative channels available to him for distributing his products. These channels vary in the number and types of middlemen involved. Some channels are short and directly link producers with customers. Whereas other channels are long and indirectly link the two through one or more middlemen. Here types of distribution can be used to make product available to consumers: (1) intensive distribution, (2) selective distribution and (3) exclusive distribution.

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In intensive distribution, the product is sold to as many appropriate retailers or wholesalers as possible. Intensive distribution is appropriate for products such as chewing gum, candy bars, soft drinks, bread, film, and cigarettes where the primary factor influencing the purchase decision is convenience. Industrial products that may require intensive distribution include pencils, paperclips, transparent tape, file folders, typing paper, transparency masters, screws, and nails. In selective distribution, the number of outlets that may carry a product is limited, but not to the extent of exclusive dealing. By carefully selecting wholesalers or retailers, the manufacturer can concentrate on potentially profitable accounts and develop solid working relationships to ensure that the product is properly merchandised. The producer also may restrict the number of retail outlets if the product requires specialized servicing or sales support. Selective distribution may be used for product categories such as clothing, appliances, televisions, stereo equipment, home furnishings, and sports equipment.

When a single outlet is given an exclusive franchise to sell the product in a geographic area, the arrangement is referred to as exclusive distribution. Products such as specially automobiles, some major appliances, certain brands of furniture, and lines of clothing that enjoy a high degree of brand loyally are likely to be distributed on an exclusive basis. This is particularly true if the consumer is willing to overcome the inconvenience of traveling some distance to obtain the product. Usually, exclusive distribution is undertaken when the manufacturer desires more aggressive selling on the part of the wholesaler or retailer, or when channel control is important, exclusive distribution may enhance the product's image and enable the firm to charge higher retail prices.

Structure, function of the business

Producer-Customer:-

This is the simplest and shortest channel in which no middlemen is involved and producers directly sell their mobile instrument products to the consumers. It is fast and economical channel of distribution. Under it, the producer or entrepreneur performs all the marketing activities himself and has full control over distribution. A producer may sell directly to consumers through door-to-door salesmen, direct mail or through his own retail stores. Big

121 firms adopt this channel to cut distribution costs and to sell industrial products of high value. Small producers and producers of perishable commodities also sell directly to local consumers.

Retailer-Customer:-

This channel of distribution involves only one middleman called 'retailer'. Under it, the producer sells his product to big retailers (or retailers who buy goods in large quantities) who in turn sell to the ultimate consumers. This channel relieves the manufacturer from burden of selling the goods himself and at the same time gives him control over the process of distribution. This is often suited for distribution of consumer durables and products of high value.

Producer-Wholesaler-Retailer-Customer:-

This is the most common and traditional channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are involved. Here, the producer sells his product to wholesalers, who in turn sell it to retailers. And retailers finally sell the product to the ultimate consumers. This channel is suitable for the producers having limited finance, narrow product line and who needed expert services and promotional support of wholesalers. This is mostly used for the products with widely scattered market.

Producer-Agent-Wholesaler-Retailer-Customer:-

This is the longest channel of distribution in which three middlemen are involved. This is used when the producer wants to be fully relieved of the problem of distribution and thus hands over his entire output to the selling agents. The agents distribute the product among a few wholesalers. Each wholesaler distribute the product among a number of retailers who finally sell it to the ultimate consumers. This channel is suitable for wider distribution of various industrial products.

Most of the India Company has to choose a suitable channel of distribution for his product such that the channel chosen is flexible, effective and consistent with the declared marketing policies and programmers of the firm. While selecting a distribution channel, the entrepreneur should compare the costs, sales volume and profits expected from alternative

122 channels of distribution and take into account the following factors:- Producer-Customer:- This is the simplest and shortest channel in which no middlemen is involved and producers directly sell their products to the consumers. It is fast and economical channel of distribution. Under it, the producer or entrepreneur performs all the marketing activities himself and has full control over distribution. A producer may sell directly to consumers through door-to- door salesmen, direct mail or through his own retail stores. Big firms adopt this channel to cut distribution costs and to sell industrial products of high value. Small producers and producers of perishable commodities also sell directly to local consumers.

Producer-Retailer-Customer:-

Producer-Wholesaler-Retailer-Customer:-

Producer-Agent-Wholesaler-Retailer-Customer:-

123 finally sell it to the ultimate consumers. This channel is suitable for wider distribution of various industrial products.Anentrepreneur has to choose a suitable channel of distribution for his product such that the channel chosen is flexible, effective and consistent with the declared marketing policies and programmers of the firm. While selecting a distribution channel, the entrepreneur should compare the costs, sales volume and profits expected from alternative channels of distribution and take into account the following factors:-

Product Consideration:-

The type and the nature of products manufactured is one of the important elements in choosing the distribution channel. The major product related factors are:-

Products of low unit value and of common use are generally sold through middlemen. Whereas, expensive consumer goods and industrial products are sold directly by the producer himself. Perishable products; products subjected to frequent changes in fashion or style as well as heavy and bulky products follow relatively shorter routes and are generally distributed directly to minimize costs.

Industrial products requiring demonstration, installation and after sale service are often sold directly to the consumers. While the consumer products of technical nature are generally sold through retailers.

An entrepreneur producing a wide range of products may find it economical to set up his own retail outlets and sell directly to the consumers. On the other hand, firms producing a narrow range of products may their products distribute through wholesalers and retailers A new product needs greater promotional efforts in the initial stages and hence few middlemen may be require

Market Consideration

Another important factor influencing the choice of distribution channel in mobile sector is the nature of the target market. Some of the important features in this respect are:-If the market for the product is meant for industrial users, the channel of distribution will not need

124 any middlemen because they buy the product in large quantities. Short one and may as they buy in a large quantity. While in the case of the goods meant for domestic consumers, middlemen may have to be involved. If the number of prospective customers is small or the market for the product is geographically located in a limited area, direct selling is more suitable. While in case of a large number of potential customers, use of middlemen becomes necessary. If the customers place order for the product in big lots, direct selling is preferred. But, if the product is sold in small quantities, middlemen are used to distribute such products. Other Considerations: - There are several other factors that an entrepreneur must take into account while choosing a distribution channel. Some of these are as follows:

A new mobile company may need to involve one or more middlemen in order to promote its product, while a well-established firm with a good market standing may sell its product directly to the consumers.

A mobile company which cannot invest in setting up its own distribution network has to depend on middlemen for selling its product. On the other hand, a large firm can establish its own retail outlets.

The mobile company costs of each channel are also an important factor because it affects the price of the final product. Generally, a less expensive channel is preferred. But sometimes, a channel which is more convenient to the customers is preferred even if it is more expensive If the demand for the product is high, more number of channels may be used to profitably distribute the product to maximum number of customers. But, if demand is low only a few channels would be sufficient. The nature and the type of the middlemen required by the firm and its availability also affect the choice of the distribution channel. A company prefers middlemen who can maximize the volume of sales of their product and also offers other services like storage, promotion as well as aftersales services. When the desired type of middlemen is not available, the manufacturer will have to establish his own distribution network. All these factors or considerations affecting the choice of a distribution channel are inter-related and interdependent. Hence, an entrepreneur must choose the most efficient and cost effective channel of distribution by taking into account all these factors as a whole in the light of the prevailing economic conditions. Such a decision is very important for a business to sustain long term profitability.

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Summary

As we know that different countries of the world will have their own cultural system, lifestyle and consuming pattern. Therefore in IV semester report regarding GCSR subject our main focus would remain on how advertising or media industry works and perfume in the Finland. Advertising is any paid form of the non personal presentation of the idea about goods and services , description or presentation of a product, idea, or organization,in order to induce individuals to buy, support, or approve of it. Media is a meaning of various communication, such as television,radio, and the newspaper. Computer media can be harddrives,removable drives, such as zip files. While doing this report we will consider the following points in our report: 1) The overall overview of the advertising and media industry in Finland. 2) Various factors affecting the advertising industry in the Finland. 3) Major advertising agencies of the Finland. 4) Government Rules and regulation with regards to the advertising industry. 5) Preferences given to various advertising. Apart from the above mentioned topics we will also work out on the other topics which are directly or indirectly affecting our project.

Conclusion

The population of Finland is currently about 5,350,000. Finland has an average population density of 17 inhabitants per square kilometre. This is the third-lowest population density of any European country, behind those of Norway and Iceland. Today Finland has a highly developed industrial economy. Despite the climate and its geographical location that permit a very short growing period, agriculture is fairly developed and Finland is self- sufficient as far as basic foods are concerned. Finland is strongly competitive in manufacturing -principally the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in high-tech exports such as mobile phones. Agriculture represents less than 3% of the current Finnish GNP and employees less than 5% of the population.

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Ones. Finland specializes in exporting information and communication technologies, Nokia becoming the world leading manufacturer of mobile handsets. From the 1990s, Finnish industry, which for centuries had relied on the country's vast forests, became dominated by to a larger extent by electronics and services, as globalization lead to a decline of more traditional industries. The Finnish electronics and electrotechnics industry relies on heavy investment in R&D, and has been accelerated by the liberalization of global markets.

The chemical industry is one of the Finland's largest industrial sectors with its roots in tar making in the 17th century. Finland has a highly industrialized, free-market economy with a per capita output equal to that of other western economies such as France, Germany, Sweden, or the U.K. The largest sector of the economy is services (64.9%), followed by manufacturing and refining (32.4%). Primary production is at 2.7%.

The dissolution of the Soviet Union in 1991 opened up dramatic new possibilities for Finland and has resulted in the Finns actively seeking greater participation in Western political and economic structures. Finland joined the European Union in 1995. NorvantoTrade is one of the corner stones of the Indo-Finnish relations. During the last decade trade between India and Finland increased significantly making India Finland's fourth largest trading partner in Asia.

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Group: D

Hotel Industries in Finland Country

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Introduction of hotel industry of finland

Finland hotels are one of the main attractions of finland cities. Tourism in finland has given birth of many quality hotels there. As people from all corners of globe go to finland, all types of dishes are available in hotels there. Special finnish dishes are of course of special attraction. Bar and restaurant facilities are plenty in association with hotels in finland.

Finland hotels are the most commonly used and preferred modes of accommodation by tourists and guests of finland. The hotels in finland offer world-class services and facilities to its guests. The warm and hospitable services of the staff of the hotels keep customers coming back for more. High standard is maintained in almost all the hotels of finland, with all the modern conveniences and facilities. Variety of hotels is available in finland, which cater to various types of people. There are starred hotels, discount hotels, cheap hotels as well as budget hotels in finland.

Most of finland hotels are open all throughout the year, with an exception of some summer hotels. Many hotels in finland offer accommodation facilities at discounted rates, at a particular time of the year. Concessions are also provided if the bookings are made in groups or by special cards. The facilities offered by most of the standard hotels in finland include a shower, mini bar, television, radio, swimming pool, sauna bath, multi-cuisine restaurants and discos. Many standard hotels have well developed spa facilities.

The discount and budget hotels in finland also act as quarters for college and university students, during the summer season in finland. These hotels are cheaper than the other hotels of finland, but have the minimum amenities required for a comfortable stay in the hotel.

Top cities in finland are jyvaskyla, rovaniemi, ivalo, kajaani, helsinki, tampere, turku, oulu, savonlinna, espoo and porvoo. There are many hotels of different categories in all these cities of finland. Hotels in finland attract tourists for their ethnicity and traditional etiquette. A hotel in finland can offer quality food, comfortable lodging and excellent service. Every single finland hotel carries its own signature.

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Finland hotels that satiate the tourists with all possible amenities, food and beverages are crowne plaza, scandic espoo, sokos hotel vaakuna rovaniemi, hilton helsinki strand, spa hotel casino, hotel kamp, sokos hotel ilves, radisson sas royal hotel helsinki, scandic tampere city and holiday club oulu eden spa hotel.

Structure, functions and business activities of hotel industry

1. Scandic hotel marski

2. Sokos hotel torni

3. Best western hotel carlton

4. Hostel erottajanpuisto

5. Hilton helsinki strand

6. Crowne plaza helsinki

7. Holiday inn garden court - helsinki airport

8. Hotel glo

9. Palace hotel

10. Hilton helsinki kalastajatorppa hotel

1. Scandic hotel marski

This luxury hotel is located on the best-known street in helsinki, right across the street from stockman. Everything is nearby, including the swedish theatre and esplanadi park, lined with all kinds of shops and restaurants.

Amenities: 1. Air-conditioning 2. Bar

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3. Breakfast included 4. Business-facilities 5. Computer 6. Currency-exchange 7. Fitness-club 8. Handicap-accessible 9. Internet-available

Business activities:

Scandic marski's restaurant serves breakfast, lunch, and dinner. A bar/lounge is open for drinks. Room service is available during limited hours. The hotel serves a complimentary breakfast in the breakfast area. Recreational amenities include a health club, a sauna, and complimentary bicycles. This 4-star property has a 24-hour business center and offers small meeting rooms, audio-visual equipment, and business services. Complimentary wireless internet access is available in public areas and the hotel has an internet point. This helsinki property has 7 meeting rooms. Guest parking is limited, and available on a limited first- come, first-served basis (surcharge). Additional property amenities include multilingual staff, gift shops/newsstands, and laundry facilities. The property has designated areas for smoking. Guestrooms.

Air-conditioned guestrooms at scandic marski feature minibars and safes. Accommodations offer city views. Beds come with down comforters and down blankets. Furnishings include double sofa beds and desks. Bathrooms feature bathtubs or showers with handheld showerheads. They also offer complimentary toiletries and hair dryers. Wireless internet access is complimentary. 26-inch flat-panel televisions have complimentary tv internet access and pay movies. Rooms also include windows that open and blackout drapes/curtains. Guests may request irons/ironing boards, hypo-allergenic bedding, and extra towels/bedding. A nightly turndown service is offered and housekeeping is available daily.

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2. Hilton helsinki strand

v Hotel services & amenities

For your business convenience

• Audio/visual equipment rental

• Business center

• Business phone service • Express mail

• Fax • Meeting rooms

• Photo copying service • Printer • Video conferencing available

• Wireless internet

For your family's comfort and convenience .

• Children's menu

• Cribs

• Family package offered • High chairs

For your comfort and convenience

• Baggage storage • Elevators • Foreign currency exchange

• Laundry/valet service • Local area transportation

• Lounge

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• Luggage hold • Multi-lingual staff

• News stand • Room service

• Safety deposit box • Shoe shine stand

For your fitness and recreation convenience

• Bicycle rental • Fitness room

• Pool • Sight seeing tours

• Walking track • Structure of hotel :

• The very first hilton hotel in finland is located in a beautiful setting by the sea, a short walking distance from the helsinki city center. Elegantly furbished rooms, high-class conference facilities and a cozy restaurant serve clients who appreciate quality. Hilton helsinki strand's manager, tomi peitsalo, is an esteemed expert in his field.

• Views from the hotel face the sea, over the harbor towards korkeasaari zoo and towards the city center, over siltasaari channel and kaisaniemi park. The most important businesses in the capital area, as well as tourist attractions and cultural establishments are only a short distance away from the hotel. The hotel building is a unique, artful structure made of marble and finnish granite. • Hilton helsinki strand hotel has 192 spacious and bright rooms and suites at the client's disposal. The stylish and comfortable rooms are perfectly equipped for working; two direct phone lines, modem line, and an isdn connection. The room has three separate phones and a messaging service. Basic amenities include air- conditioning, satellite-tv, a minibars and a trouser press.

• According to the hilton room categories, hilton helsinki strand has 19 business rooms and 31 executive rooms. In the clubroom on the seventh floor, breakfast is served to

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executive room clients; at other times, the clubroom offers snacks and drinks. The clubroom, with its different services, is unique to hilton, and clients especially appreciate the check-in and checkout services. There is enough space for peaceful work and for just passing the time. All the clubroom services will be available from the beginning of march 2003. • Hilton meetings provides clients with a completely new conference service and a new world of experience. Clients have access to the 10- person boardroom, a multifunction room, and the business center with its secretarial services. Also breaks from meetings can be made into a special experience. • The hotel has several different conference rooms, with capacity for up to 280 people. The rooms can flexibly be re-arranged according to needs. Most of the conference rooms, including the ballroom and six 10-25 people meeting rooms, can be found on the second floor. • Restaurant bridges will be renovated to serve hotel guests as well as other customers. Benefiting from the hilton know-how, the restaurant serves finnish and international delicacies. Clients are also served at the new and welcoming atrium lounge bar.

• At the hilton helsinki strand, a hilton breakfast is served, where ingredients are always appetizing and fresh, like the freshly squeezed orange juice. Coffee, tea and orange juice are served at the table, and food at the hearty and tasty buffet. Different kinds of foods, such as low-calorie or high-fiber foods are easy to find thanks to color coordination. Hilton breakfast always includes local specialties as well. • The living well express gym and comfortable sauna and pool department are located on the eighth floor, and face a sea view. Hotel guests are also attended to by a 24- hour room service, laundry service and bellboy luggage service. The business center is always available for the guests to use. The garage accommodates 45 cars. Hilton helsinki strand is approximately a 20-minute ride away from the airport.

3. Palace hotel

The palace hotel helsinki is located in the city/business district centre, 1 km from the railway station, 1 km from the motorway, 6 km from the pasila messukeskus fairground convention centre

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Hotel description: palace hotel has been a legend since the helsinki olympics in 1952: the serene spirit and atmosphere of the exclusively intimate hotel with only 39 rooms is simply unparalleled. The private lounge area outside each room is like another living room where you can relax and have a drink, read a newspaper, or enjoy a nice conversation.

The palace hotel, steeped in tradition, boasts a fabulous seaside location. All rooms feature parquet flooring and are equipped to high standards. The décor is characterized by light tones, and exudes a sophisticated and classy feel. Breakfast and five o'clock tea come included in the room prices; these are served daily on the ninth floor, from where there is a fantastic view over the harbor.

Hotel accommodation: 39 rooms on the 9th floor. The range includes anything from singe rooms to large suites. Some of the rooms have balconies.

Room facilities:

• bath/shower • cable/paytv • adsl connection • vod (video on demand) tv system • hairdryer • trouser press • desk • minibar • coffee tray

Hotel facilities:

• Restaurants • palace gourmet • palacenkatto (terrace)

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• bars • the gin & tonic lounge bar offers the largest selection of gins in town • the scenic terrace on the 11th floor is open during the summer. • Conference rooms

Other services sea lounge coffee, tea, water as well as small snacks and fruit are available all day until 8.30 p.m. At the sea lounge on the 9th floor.

Business centre hotel guests can use the business centre freely, for instance, to read e-mail and use the internet free of charge.

Property amenities

Hotel glo features a spa centre located on the top floor of the hotel, offering a gym, sauna, steam room, and a range of massage treatments. Drinks can be bought in cocina bar, and multilingual staff can assist with 24-hour room service requests, and book tickets for cultural events in the city. Garage parking is available next door to the hotel for around €23 per day. All prices are subject to change.

• 24-hour front desk

• Air-conditioned public areas • Total number of rooms - 144

• Tours/ticket assistance • Luggage storage

• Massage - spa treatment room(s)

Hotel policies & fees

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The following fees and deposits are charged by the property at time of service, check-in, or check-out.

Policies

• Extra-person charges may apply and vary depending on hotel policy. • Government-issued photo identification and a credit card or cash deposit are required at check-in for incidental charges. • Special requests are subject to availability upon check-in and may incur additional charges. Special requests cannot be guaranteed. o No onsite parking is available.

• Pets accepted • Pet fee charged at hotel/condo

• Check-in time starts at 2 pm • Check-out time is noon

Fees

• The following fees and deposits are charged by the property at time of service, check- in, or check-out. o Pet fee: eur 10 per night

• The above list may not be comprehensive. Fees and deposits may not include tax and are subject to change.

Comparative position of hotel industry in finland with india and gujarat

Top 10 hotels in india

1. Taj lake palace, udaipur 2. Old harbor hotel, kochi 3. Taj rambagh palace, jaipur 4. Saj home, kochi

5. Orange county, kabini

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6. Jas vilas, jaipur

7. Hotel fifu, jaisalmer

8. Devi niketan, jaipur

9. The oberoi grand, kolkata

10. The zuri, kumarakom

1. Taj lake palace, udaipur

Taj lake palace, udaipur evokes a sense of magic and mysticism. The floating palace is a dream of white marble and mosaic glistening in the moonlight, reminiscent of the most beautiful tourist cliché in the world; the taj mahal

Accommodation:

The hotel offers luxurious accommodation in its 83 rooms, categorized into palace room, luxury room, grand presidential suite, grand royal suites, royal suites, and royal spa suite. Each room is a masterpiece in its décor and furnishings. And as expected, all the rooms feature the latest gadgets and amenities. Services:

1. Airport pick/drop 2. Baby care facility 3. Banquet 4. Bar service 5. Bonfire 6. Broadband facility 7. Business centre 8. Camel safari 9. Car rental 10. Computer on rent

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11. Conference hall 12. Credit card facility 13. Cultural dance 14. Direct dialing std/isd facility 15. Doctor on call 16. Flower shop 17. Folk dance 18. Front desk 19. Games room 20. Grand dinner 21. H/c running water 22. Horse safari 23. Jungle trekking •laundry •mobile on rent •money exchange facility •multi-cuisine restaurant •power backup •puppet show •room service •secretarial service •secure parking •shopping arcade •state-of-art health spa •swimming pool •travel desk

Structure:

The series of palaces packed in the city palace complex, facing east (as customarily appropriate for the maharana dynasty – the sun dynasty), behind an exquisite facade of 244 metres (801 ft)

139 length and 30.4 metres (100 ft) height, were built on a ridge on the east of lake pichola. They were built over a long period, from 1559 onwards, by 76 generations of sisodia rajputs or suryavanshi rajputs (worshippers of sun god). Several maharanas (the title maharana is distinctly different from maharajah, as the former connotes a warrior and the latter a ruler or a king) starting with udai mirza singh ii, have richly contributed to this edifice, which comprises an agglomeration of structures, including 11 small separate palaces. The unique aspect of this conglomeration is that the architectural design (a rich blend of rajasthani, mughal, medieval, european and chinese architecture) is distinctly homogeneous and eye catching. The palace complex has been built entirely in granite and marble. The interiors of the palace complex with its balconies, towers and cupolas exhibit delicate mirror-work, marble-work, murals, wall paintings, silver-work, inlay-work and leftover of colored glass.

2. Old harbor hotel, kochi 1. This hotel is located near many of kochi’s most popular tourist destinations. The establishment is convenient to the spice market and st. Francis church, which once held the remains of vasco de gama. The old harbour hotel kochi is also within close reach of spots where the local fishermen can be seen bringing in the day’s catch. There is an airport proximate to the old harbour hotel kochi, about 19 miles outside of the city of kochi. 2. One of the most preferred luxury resorts in kochi, the old harbor hotel kochi isestablished in a fabulous location whichstands opposite the chinese fishing nets . The hotel is in the middle of all the main attractions of fort cochin like, santa cruz basilica, church of st francis, kerala kathakali centre, jew town, pardesi synagogue and matancherry palace.

Amenities and facilities:

The amenities and facilities of old harbor hotel are as special as you are. It has been designed in keeping in mind the tradition of old harbor . The main amenities here are, doctor on call, valet parking, safe deposit lockers and travel tour service.

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R o o m s The interiors of our hotel, designed and decorated by karl damschen, is an eclectic blend of dated furniture and varied art that juxtapose to create a unique style. Our thirteen spacious rooms, each of them named after the various old streets of fort cochin, are plush with high ceilings and either look into a courtyard with a fountain or over the ancient chinese fishing nets. Our special garden cottages, which were added to offer a feel of kerala, have open-to- the-sky showers, a veranda and a private pond. We also have a large garden with a swimming pool as well as a stage for cultural performances, all of it set amidst plenty of natural green. For the comfort of our guests, there is an ayurvedic spa and a large open-air terrace. We are aware that our guests are special and to ensure this, care has been paid to organic soaps and lotions in the bathrooms, comfortable robes and slippers as well as plenty of bottled water.

1. Rooms : the interiors of our hotel, designed and decorated by karl damschen and tanya abraham, is an eclectic blend of dated furniture and varied art that juxtapose to create a unique style. Our thirteen spacious rooms, each of them named after the various old streets of fort cochin, are plush with high ceilings and either look into a courtyard with a fountain or over the ancient chinese fishing nets. Our special garden cottages, which were added to offer a feel of kerala, have open-to-the-sky showers, a veranda and a private pond. We also have a large garden with a swimming pool as well as a stage for cultural performances, all of it set amidst plenty of natural green. For the comfort of our guests, there is an ayurvedic spa and a large open-air terrace. We are aware that our guests are special and to ensure this, care has been paid to organic soaps and lotions in the bathrooms, comfortable robes and slippers as well as plenty of bottled water. 2. Restaurants: food has always been an important criterion for us. At our restaurant, we ensure that only the freshest of foods are offered at all times. Home made breads and plenty of freshly squeezed juices are a priority here. Only organically grown vegetables are used, while the meats are of the highest quality available. As the hotel rests close to the fishing nets, we believe our guests would want to enjoy a variety of seafood. For this, we have a special seafood menu with a barbecue every night in the garden. Our chef has also painstakingly conjured up an array of dishes to suit various taste palates.

The oberoi grand, kolkata

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The oberoi grand is centrally located in the main business and shopping district of kolkata (park street, bbd bag & chowranghee). The hotel is 22 kilometres from kolkata airport, 6 kilometres from howrah railway station and 3 kilometres from sealdah railway station. It is also conveniently located to all major convention centres, legislative offices, banks, consulates and deputy high commissions. The oberoi grand is easily one of the classiest chains of hotels in india. True to its name - grand, it offers luxurious grand interiors with the original touch of class by all the oberoi properties. The hotel has an enveloping nature which completely takes you in from the very moment that you enter the oberoi premises and this oberoi in kolkata is no exception. This area extends over 4.51 acres, that too in the middle of the city and is a beautifully maintained 100 year old building.

Room amenities Be it the business traveller who would like to be pampered on a hard day's night or the leisure traveller who is looking for luxury and importance throughout, this hotel offers a variety of options for each with no holds barred. The tastefully furnished, air-conditioned rooms are divided into 6 categories, i.e.

Deluxe rooms : these are tastefully decorated and offer a panoramic view of the city. Luxury rooms : these are decorated in victorian style, some of which come with private balconies. Premiere rooms: these are large, spacious and come with four poster beds with attached private balconies. Classic suites: these suites sprawl over 48 square metres with each of them offering a dining room, 2 balconies overlooking the pool, and a study area with a fax machine.

Deluxe suites: with 71 square meters of space and all that a classic suite has, the deluxe suites come complete with a separate living room, a walk-in wardrobe and a powder room. Luxury suites facilities include a drawing cum dining room, well-appointed bathroom, four balconies overlooking the courtyard and the pool and a personal fax machine.

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The facilities common to all the rooms are satellite television on a lcd screen; direct dial std/isd telephone; mini-bar, electronic safe; satellite televisions, dvd player, wireless internet; fax machine on request, coat hangers, bathrobes, branded products in the washroom and of course the basic toiletries as well as the luxurious toiletries and shaving points. The rooms have a mixture of city view and pool view rooms and all the washrooms have plush interiors along with bathtubs.

Services & facilities

With all the above facilities already available with the rooms, there is more than meets the eye. The hotel also offers added facilities like a travel desk, currency exchange, laundry, car parking, valet services, babysitting with baby cots and cribs, business centre, 24 hour room service, butler service, 24 hours hot and cold running water, doctor on call, in house list of dvd's and acceptance of credit cards. The also offers an interesting feature of \"pick and choose your pillow\". They rightly believe that every guest has different preferences when it comes to relaxation and sleep and the staff will provide you with the options of choosing a pillow that suits your sleeping habits or for your sole comfort. It couldn't get any better! The hotel also has rooms for the physically challenged, on the first floor which are accessible through inclined ramps.

Comparative position of hotel indstry in finland with india

Indian hotel industry

The indian hospitality industry has emerged as one of the key industries driving growth of the services sector in india. It has evolved into an industry that is sensitive to the needs and desires of people. The fortunes of the hospitality industry have always been linked to the prospects of the tourism industry and tourism is the foremost demand driver of the industry. The indian hospitality industry has recorded healthy growth fuelled by robust inflow of foreign tourists as well as increased tourist movement within the country and it has become one of the leading players in the global industry. Foreign tourist arrivals (ftas) into the country increased steadily from 2002 to 2008. Ftas dipped in 2009, due to the global

143 economic slowdown; however, the impact on the indian industry was much lower than that on the global counterparts. Ftas are expected to increase in 2010. On the other hand, domestic tourist movement within the country was the highest in 2009.

Industry characteristics

Major characteristics of the indian hospitality industry are:

High seasonality

The indian hotel industry normally experiences high demand during october–april, followed which the monsoon months entail low demand. Usually the december and march quarters bring in 60% of the year’s turnover for india’s hoteliers. However, this trend is seeing a change over the recent few years. Hotels have introduced various offerings to improve performance (occupancy) during the lean months. These include targeting the conferencing segment and offering lucrative packages during the lean period.

Labour intensive

Quality of manpower is important in the hospitality industry. The industry provides employment to skilled, semi-skilled, and unskilled labour directly and indirectly. In india, the average employee-to-room ratio at 1.6 (2008-09), is much higher than that for hotels across the world. The ratio stands at 1.7 for five-star hotels and at 1.9 and 1.6 for the four-star and three-star categories respectively. Hotel owners in india tend to “over-spec” their hotels, leading to higher manpower requirement. With the entry of branded international hotels in the indian industry across different categories, indian hotel companies need to become more manpower efficient and reconsider their staffing requirements.

Fragmented

The indian hotel industry is highly fragmented with a large number of small and unorganised players accounting for a lion’s share. The major players in the organised segment include the taj, oberoi, itc hotels, and east india hotels. The fragmented nature of the indian hospitality industry is reflected in the herfindahl index of concentration, which was at 0.062 in fy07.

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Classification of hotels

The ministry of tourism has formulated a voluntary scheme for classification of operational hotels into different categories, to provide contemporary standards of facilities and services at hotels. Based on the approval from the ministry of tourism, hotels in india can divided into two categories:

1) dot (department of tourism) classified hotels 2) dot (department of tourism) unclassified hotels

Classified hotels

Hotels are classified based on the number of facilities and services provided by them. Hotels classified under the ministry of tourism enjoy different kinds of benefits such as tax incentives, interest subsidies, and import benefits. Due to lengthy and complex processes for such classification, a significant portion of the hotels in india still remain unclassified. The ministry of tourism classifies hotels as follows:

• Star category hotels • Heritage hotels

• Licensed units

Star category hotels

Within this category, hotels are classified as five-star deluxe, five-star, four-star, three-star, two-star and one-star.

Heritage hotels

These hotels operate from forts, palaces, castles, jungles, river lodges and heritage buildings. The categories within heritage classification include heritage grand, heritage classic and heritage basic.

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Licensed units

Hotels/establishments, which have acquired approval/license from the ministry of tourism to provide boarding and lodging facilities and are not classified as heritage or star hotels, fall in this category. These include government-approved service apartments, timesharing resorts, and bed and breakfast establishments.

Unclassified hotels

Branded players

This segment mainly represents the branded budget hotels in the country, which bridge the gap between expensive luxury hotels and inexpensive lodges across the country. Budget hotels are reasonably priced and offer limited luxury and decent services. Increased demand and healthy occupancy have fuelled growth of budget hotels. These hotels use various cost control measures to maintain lower average room rates without compromising on service quality. Ginger hotels, itc fortune, hometel, and ibis are some of the popular budget hotels.

Other smaller players

These are small hotels, motels and lodges that are spread across the country. This segment is highly unorganised and low prices are their unique selling point.

Growth drivers

The fortunes of the hospitality industry are closely linked to the tourism industry and hence tourism is one of the most important growth drivers. In addition, all factors that aid growth in the tourism industry also apply to the hospitality industry. The indian hospitality industry has recorded healthy growth in recent years owing to a number of factors:

Increased tourist movement

Increased ftas and tourist movement within the country has aided growth in the hospitality industry. Healthy corporate profits and higher disposable incomes with easier access to

146 finance have driven the rise in leisure and business tourism, thus having a positive impact on the hospitality industry.

Economic growth

India is one of the fastest growing economies in the world. It recorded healthy growth in the past few years, at more than 9% each during fy06-fy08. Despite the global economic slowdown, the indian economy clocked growth of 6.7% and 7.4% in fy09 and fy10 respectively. Attractiveness of india has encouraged foreign players to set up their operational facilities in the country. Domestic industries have also made heavy investments to expand their facilities through greenfield and brownfield projects.

Changing consumer dynamics and ease of finance

The country has experienced a change in consumption patterns. The middle class population with higher disposable incomes has caused the shift in spending pattern, with discretionary purchases forming a substantial part of total consumer spending. Increased affordability and affinity for leisure travel are driving tourism in india and in turn aiding growth of the hospitality industry. Emergence of credit culture and easier availability of personal loans have also driven growth in the travel and tourism and hospitality industries in the country.

Measures undertaken by the government

Various policy measures undertaken by the ministry of tourism and tax incentives have also aided growth of the hospitality industry; some of them include:

• Allowance of 100% fdi in the hotel industry (including construction of hotels, resorts, and recreational facilities) through the automatic route

• Introduction of ‘medical visa’ for tourists coming into the country for medical treatment

• Issuance of visa-on-arrival for tourists from select countries, which include japan, new zealand, and finland

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• Promotion of rural tourism by the ministry of tourism in collaboration with the united nations development programme

• Elimination of customs duty for import of raw materials, equipment, liquor etc • Capital subsidy programme for budget hotels

• Exemption of fringe benefit tax on crèches, employee sports, and guest house facilities

• Five-year income tax holidays for 2-4 star hotels established in specified districts having unesco-declared 'world heritage sites'.

Trends in the industry

The hospitality industry recorded healthy growth in early-2000, leading to a rise in occupancy rate during 2005/06 and 2006/07. Consequently, average rates for hotel rooms also increased in 2006/07. The rise in average rates was also a result of the demand-supply gap for hotel rooms, especially in major metros. Hotels were charging higher rates, at times much higher than that those charged by their counterparts in other parts of the world.

Lured by higher returns experienced by the hotel industry, a number of players, domestic as well as international, entered the space. India became one of the most attractive destinations for such investments.

While on the one hand, investments continued to flow into the hotel industry, hit by sharp rise in rates, corporates started looking for alternate cost-effective lodging options. This led to emergence of corporate guest houses, especially in major metros, and leased apartments as replacements for hotels. While average room rates rose in 2007/08, occupancy rates dropped. Occupancy rates plunged sharply next year, as demand declined following the global economic slowdown and the terror attacks in mumbai. As a result, hotel rates declined during 2009-10.

The hospitality industry reported improvement in 2009-10, with domestic tourist movement in the country being at a high. While average rates remained lower, occupancy rates rose, supported by surge in domestic tourist movement. The industry is expected to report healthy

148 growth in 2010/11, with expected increase in domestic tourist movement and rise in international tourist arrivals.

Development of other markets

A major trend in recent times is the development of the hotel industry in cities other than major metros. As real estate prices have been soaring, setting up and maintaining businesses and hotels in major metros is becoming more expensive, leading to search for other cities entailing lesser costs. Consequently, hotel markets have emerged in cities such as hyderabad, pune, and jaipur. This has led to increase in hotel development activity and expansion of hotel brands within the country.

The industry has also seen development of micro markets, especially in primary cities. As cities grow larger and more office spaces come up across the city, travelers prefer to stay at hotels closer to the place of work/visit to save on time. This has led to the same hotel company setting up hotels across different location within a city.

Marketing strategies

Marketing strategies in the hospitality industry have changed drastically over the past decade. A decade back, the brand name of the hotel was a major driver. However, with the arrival of well educated and experienced travelers, hotel companies have had to change/realign their marketing strategies. Today, hotel companies marketing strategies are differentiation, consistency, customer satisfaction, delivery of brand promises, and customer retention. Development and use of technology have also changed the way hotel companies operate, creating the need for online marketing. Travelers increasingly conduct basic research on the internet. Blogs, networking sites, and travel sites are therefore being used for making choices and the information provided tends to influence opinions and choices. Several travel portals have emerged in recent times and travelers are increasingly using these portals to make hotel reservations.

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Opportunities

The prospects for the hotel industry in india are bright. With revival in the global economy, international tourist inflow into the country is expected to rise. Additionally, hosting of international sports events and trade fairs and exhibitions in the country are expected to aid both inflow of international tourists and domestic tourist movement.

The upcoming industrial parks, manufacturing facilities and ports across the country provide a good opportunity for budget and mid-market hotels. Although around 89,500 additional rooms are expected to come up in india in the next five years, the supply of branded/quality rooms in india is much lower compared to other countries across the globe. Hence, there exists huge potential for investors and operators across all the segments of hotel industry in india. The increase in room inventories is expected to make the hotel industry more competitive and hotels would be under pressure to maintain quality and service levels at competitive prices. Competitive pricing amongst the branded hotels along with the addition of more budget and mid-market hotels would make the hotel industry cost competitive with other destinations. This would aid the growth of segments such as mice, amongst others.

Hotel industry in finland

1) Room rate 2) Location accessibility 3) Hotel service characteristics 4) Growth drivers 5) Industry structure 6) Key consumer segments 7) Tourism arrivals 8) Domestic economic condition 9) Hotel room rates

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Trends in the industry

Tourism in the economy

In 2007, tourism in the finnish economy, according to the tourism satellite account contributed 2.3% to national gdp.

Domestic leisure travel in 2008 rose to 27.1 million overnight trips, just a marginal growth of 0.6% on 2007. International arrivals in 2008 were 5.9% up on 2007 at 6.1million international visitors (day trips included). Of the total, 3.6million were overnight tourists, an increase of 1.8% on the year before. The growth in day trips was 12.3%. Revised data show that international travel receipts (excluding passenger fares) rose in 2008 to eur 2.181 million, an increase of 5.4% on the previous year.

In 2008, outbound travel rose to 6.6million trips, an increase of 2.4% on 2007. The costs of overseas travel amounted to eur 3.053 million, an increase of 5.0% on 2007, resulting in a deficit on the tourism account of some eur 872 million.

Tourism organisation

The ministry of trade and industry under which the tourism portfolio used to reside, was closed at the end of 2007. A new ministry, formed from former ministries of labour, trade and industry and of one directorate of the ministry of the interior (regional policy) was put together to form the ministry of employment and the economy at the beginning of 2008 (figure 4.8). The organisation of the finnish tourist board (a civil service department under the ministry of employment and the economy) was renewed last year. The main tasks of the finnish tourist board are to promote the tourism image of finland abroad and carry out product marketing to support this task; to gather and distribute market information to the tourism industry and to promote top quality product development.

The number of employees at the finnish tourist board was reduced from about 100 people to about 30 and all its offices abroad were closed. The finnish tourist board now outsources tourism promotion activities abroad from finpro, an association established to help finnish enterprises in export activities. Finpro employs about 20 persons abroad in its own network of export centres to execute tasks which the finnish tourist board has designated to them.

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Those persons act for finnish tourist board as visit finland experts. In the future, the capacity to buy services abroad from finpro will depend on the state budget of the finnish tourist board. The territorial organisation of employment and economic development centres “t&e centres” was renewed in 2008 and came into force at the beginning of 2009, reflecting the organisational changes at the ministry. Regional work was streamlined as a result. Larger regional change will occur at the beginning of 2010, when the whole structure of government’s regional activities, including those affecting tourism, will be changed.

Tourism budget

The national tourism administration is part of the ministry of employment and the economy and has no separate budget. One person is in charge of tourism-related affairs at the directorate of innovation at the ministry. Tourism development is funded mainly by regional funding. Public funding of the finnish tourist board in 2008 was eur 16 million. For 2009, this was reduced to eur 14.8 million and will be further reduced in 2010 to an estimated eur 9.5 million. The amount of private money in finnish tourist board activities is very difficult to assess, however, since the content and operating methods of the finnish tourist board activities have changed radically.

Most of the funding for the tourism sector comes from regional authorities (t&e centres and regional councils), which also allocate eu co-funding for tourism development projects (e.g. Investments, development and training).

At the central government level, there are some minor funding possibilities for the development of cultural tourism at the ministry of education, for regional development at the ministry of employment and the economy, for rural tourism and for fishing tourism at the ministry of agriculture and forestry and for recreational activities at the ministry of the environment.

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Most public spending for the development of tourism goes through communities, t&e centres, regional councils and ministries. Finland undertook two projects, in 2000 and 2005, where the amount of public spending for tourism development has been evaluated on the basis of which it is estimated that public spending for tourism is of the order of eur 70- 90 million per year.

Tourism-related policies and programmes

The legislative and regulatory environment

The ministry of employment and the economy has evaluated the legislative and regulatory environment of tourism enterprises, based on a study that seeks to map the legislative burden on tourism enterprises and its impact on the tourism industry, its competitiveness and profitability. The aim of the study is to identify disadvantages and constraints with a view to resolving any identified problems. This work is part of the process of updating the finnish tourism strategy that was first published in 2006 (box 4.11).

A new tourism strategy

Finland updated the finnish tourism strategy to 2020 during the course of autumn 2009 and the beginning of 2010. The aim is to define the most effective ways of developing the tourism industry’s performance to enhance profitability and raise competitiveness in international markets. The approach includes defining legislative and regulatory problems, defining the roles of the main players in the field of tourism more precisely, defining the main and the most effective measures which could be taken to help the tourism industry and deciding on the tasks, responsibilities and the evaluation methods to be used in resolving these issues. Execution will take many years to complete.

Analysis of domestic/inbound/outbound tourism

While no big changes have been identified in market trends to date, it is clear that the global economic crises will affect the tourism sector. Some signs of falling inbound travel volumes were visible during the summer 2008, even though the result of the whole year remained positive, due mainly to the growing market share of the russian federation tourists. During the high season of christmas and new year 2008/09 it also became clear that charter tourists,

153 especially from the uk, spent less than expected, largely due to adverse exchange rate movements.

Policies and norms of india the raft of legislation governing the hospitality industry can be divided into three sectors. The first governs the construction and commissioning of hotels, restaurants, guest houses and other establishments, and includes the foreign exchange management act, the industrial licensing policy, the transfer of property act, and various development control orders issued by central and state governments and local municipal councils. The second governs the operation, maintenance and management of establishments, and the health and safety of occupants. This legislation includes the indian contract act, health and safety laws, insurance laws (notably public liability insurance), and fire safety and hygiene regulations. Establishments must obtain various licences, such as a liquor licence, dance licence, lodging house licence, eating house licence, police permissions, a licence under the shop and establishment act, or a licence under the food and drug administration act, all of which are granted on an annual basis.

If an establishment fails to meet the requisite criteria the licence is not renewed, effectively closing down the business. The third set of rules governs taxation, employment and other contractual relationships. This includes laws on income tax, service tax, expenditure tax, excise duty, luxury tax, entertainment/ amusement tax, as well as laws on pension, gratuity and provident funds, and other employment laws.

Classification system

From a regulatory perspective, the hospitality industry can be split into the following six categories. Each category needs a specific set of approvals and must fulfill specific regulatory requirements.

The premium or luxury sector: five-star or deluxe hotels catering generally to business and up-market foreign travellers. Nearly 30% of all hotel rooms fall into this category.

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The budget sector: four to one-star hotels catering to average and domestic leisure travellers, and generally found in smaller towns and cities.

Heritage hotels: palaces, havelis (mansions) and forts that have been converted into hotels, thus mixing effective preservation with commercial capability.

Resorts and clubs: located on the outskirts of a city, these venues can range from premium to budget quality.

Restaurants: food chains and outlets set up in india. They are usually run by international chains, like domino’s pizza, pizza hut and mcdonald’s. Serviced apartments: a new concept in india. Except for a few serviced apartments in delhi and mumbai, the market is in nascent state.

Within this broad classification the units are further sub-classified as tourism units for the grant of incentives under various central and state government policies. The classification includes:

1) Hotels And Restaurants; 2) Resorts; 3) Health Farms; 4) Motels And Wayside Amenities; 5) Apartment Hotels; 6) Water Sports Complexes; 7) Arts And Crafts Villages; 8) Golf Courses; 9) Camping And Tent Facilities; 10) Amusement Parks; 11) Water Parks; 12) Ropeways (Cable Cars); 13) Heritage Hotels; 14) Convention Centres;

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15) Caravan Tourism; 16) Adventure Tourism Projects; And 17) Other Projects. based on the facilities and services they offer (see box, right). The department of tourism then grants star status based on how well the establishment scores in the hracc report: 90% = five-star deluxe; 80% = five star; 75% = four star; 65% = three star; 55% = two star; and 50% = 0ne star.

Classification is valid for five years from the date of issue or, in the case of reclassification, from the date of expiry of the last classification. The hotel is expected to maintain the required standards at all times. The hracc may inspect a hotel at any time without prior notice, and may request that its members be accommodated overnight to inspect the level of services. Based on an inspection report, the establishment may be downgraded instantly. Upgrades are allowed on a fresh application for a stated category.

Promoting interest of members the federation of hotel & restaurant associations of india (fhrai) is the apex body of the four regional associations representing the hospitality industry:v ¦ the hotel & restaurant association of eastern india (hraei); he hotel & restaurant association of northern india (hrani); the southern india hotel & restaurant association (sihra); and ¦ the hotel & restaurant association (western india) (hrawi).

The fhrai has more than 3,300 members (approximately 2,052 hotels and 1,016 restaurants) and 150 associate members, not including the members of the four regional associations.

It is committed to promoting and protecting the interests of its members, and provides an interface between the industry, political leadership, academics, international associations and other stakeholders. Its members are kept up-to-date with developments in the international hospitality industry, and are provided with the latest trade information and trends, statistical analysis and reports on topics that have a direct impact on the industry, and government notifications and circulars.

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Government incentives the construction of hotels is a capitalintensive activity. The tourism finance corporation of india gives financial assistance to the private sector for the construction of hotels and other tourist facilities. The government also offers a number of incentives.

Export promotion capital goods scheme (epcg) under this scheme, the customs duty on imported capital goods is only 5%. Importers are, however, subject to an export obligation equivalent to eight times the value of the duty saved on capital goods imported under the scheme. The obligation must be met within the eight years following the date of issue of the epcg licence.

Capital goods include spares (including refurbished/reconditioned spares), tools, jigs, fixtures, dyes and moulds. An epcg licence may also be issued for the import of components required for the assembly or manufacture of capital goods. Second-hand capital goods (with no age restrictions) may also be imported under the epcg scheme.

Cars, sports utility vehicles/all purpose vehicles may only be imported by hotels, travel agents, tour operators or tour transport operators whose total foreign exchange earnings in the current year and preceding three licensing years are 15 million rupees. However, spare parts for cars and sports utility vehicles/all purpose vehicles cannot be imported under the epcg scheme.

The transfer of capital goods is permitted to group companies or managed hotels under intimation to the regional licensing authority. Other goods, excepting tools, imported under the epcg scheme cannot be transferred for a period of five years from the date of import, even where the export obligation has been fulfilled.

Every epcg licence-holder shall maintain a true and proper account of exports/supplies made and services rendered towards fulfillment of the export obligation under the scheme for three years from the date of redemption.

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Served from india scheme this scheme is available to hotels that are rated one star and above and are approved by the ministry of tourism (including managed hotels and heritage hotels), and other service providers in the tourism sector registered with the ministry of tourism. They are entitled to duty free credit equivalent to 5% of the foreign exchange earned by them in the preceding financial year (under previous rules, the average foreign exchange earnings of the preceding three years were taken into account).

Standalone restaurants will be entitled to duty credit equivalent to 20% of the foreign exchange earned by them in the preceding financial year (compared to 5% of the average foreign exchange earnings of the preceding three years under the previous rules).

In the case of one and two-star hotels and standalone restaurants, the foreign exchange earned through international credit cards and other notified sources shall be taken into account for the purposes of calculating the duty credit entitlement under the scheme.

Export house status the indian government has introduced the ‘export house’ scheme to promote exports and foreign exchange earnings. Under this scheme, a commercial unit earning foreign exchange beyond a specific limit is given special status, and enjoys preferential treatment with all government departments.

The government has accorded ‘export house’ status to tourism. Hotels, travel agents, tour operators and tourist transport operators can be recognised as ‘export houses’, ‘trading houses’, ‘star trading houses’ or ‘super star trading houses’, and are entitled to benefits including: i) licence/certificate/permissions and customs clearances for imports and exports on a self-declaration basis. exemption from compulsory negotiation of documents through banks. The remittance, however, would continue to be received through banking channels. Iii) permission to retain 100% of the foreign currency in an exchange earners’ foreign currency account.

Foreign investment foreign direct investment and technical collaborations form a major platform for economic reform. With a view to attracting investment in this sector, the hotel and tourism-related industry has been declared a high-priority industry for foreign investment, and 100% foreign direct investment is therefore allowed under the automatic route.

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Foreign collaboration the government recognises that the adoption of the latest technology translates into improved profitability. In the fast-changing world of technology, the interests of technology suppliers must be protected.

The government accords automatic approvals for technology agreements where companies are running or managing hotels with at least 500 rooms, and the it systems are provided by foreign suppliers. Automatic approval is subject to certain parameters:

i) the technical and consultancy services, including fees for architecture, design and supervision, do not exceed $2m (less cost of land and finance);

ii) the franchising and marketing/ publicity support fee is up to 3% of the net turnover; and

iii) management fees (including incentive fee) are up to 10% of the gross operating profit.

Government permission is no longer required for hiring foreign technicians. Applications for automatic approval for foreign investment in technology agreements and/or management contracts can be made to the reserve bank of india (rbi). The rbi accords automatic approval and the entrepreneurs can approach authorised dealers for release of foreign exchange

Agreements that involve a variation in the parameters will he considered on merits by the foreign investment promotion board.

New industrial policy with a view to accelerating industrial development, boosting investor confidence and generating additional employment, the indian government has announced that eco-tourism is a ‘thrust industry’ in the states of jammu and kashmir, sikkim, himachal pradesh and uttaranchal. A range of incentives are available. The eco-tourism projects identified include hotels, resorts, spas, entertainment/amusement parks and ropeways.

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Group: F

Strategic Issue In Human Recourses Telecommunication Sector in

Finland Country :

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Introduction of Telecom Industry

Now days, telecommunications and information industries face various challenges: increasing global liberalization, fast networking requirements among companies and technical advances, to name but a few of the most important ones. Finland has positioned itself quite advantageously, being among the most liberalized and technologically developed countries in the global arena of telecommunications as well as in the international information and computer industries. Furthermore, Finland has mainly emphasis on the creation of the information superhighway leading the way to structural change of the society, i.e. to information society.

This report aims at providing an overview of the Finnish infrastructure regarding telecommunications, media/broadcasting, and computer/information industries.

Tougher global competition will dictate and accelerate the modernization of infrastructure technologies as well as create competitive networks and services. Information networks and various telecom services will become a vital part of the everyday life of companies and households. Finland, known for its innovative touch to technological development and early utilization of technical advances, will be one of the major players in the sharp global competition in the 21st century, too.

The Role of Finland’s Public Policies

Finland has made new innovation in telephone sector by introducing mobile phone. National innovative capacity, often defined as ― the country’s potential to generate a stream of commercially relevant innovations, is in part constrained by past technological sophistication, but it also reflects a series of investment and policy choices by the government that affect the (private sector’s) incentives for R&D, productivity and commercialization activities in a country (Steinbock, 2006). Policy makers can help spur innovation, by ensuring that prospective innovators are exposed to the right set of market incentives and benefit from adequate framework conditions ‖. This section looks into the policy choices which have contributed to boosting Finland’s innovation capacity and

161 examines in more depth the importance of market openness and trade and investment liberalization for Finland’s innovation performance, particularly in the telecom equipment industry. Finally, the section gives some insights into the institutional aspects of Finnish policy-making which have contributed to the national innovative capacity.

Finland, a First Mover in the mobile telephone industry

Finland was the first country to launch a digital network for mobile communications. In the early 1970s, the Nordic Post, Telegraph and Telephone operators (PTTs) of Finland, Sweden, Norway and Denmark developed the Nordic mobile telephony (NMT) standard, the first fully-automatic analogue cellular phone system.8 The standard was subsequently opened for service in Sweden and Norway in 1981 and in Denmark and Finland in 1982. This enabled Nokia to introduce the world’s first car phone for the NMT standard. By 1985, the network had grown to 110,000 subscribers in these Nordic countries, which made it the world’s largest mobile network at the time. In 1991, the successor of the NMT, the world’s first Global System for Mobile communications (GSM), a digital standard for mobile networks, was launched in Finland by telecom operator Radio linja, with commercial operations starting in 1992. The first GSM call was made with a Nokia phone over a Nokia- built network (operated by Radio linja, a private telecom operator). This brought Nokia an important reference for the future (Ali-Yrkko, et. al, 2002). Thanks to the strong support of the EC, GSM then also became the European digital standard and Nokia won contracts to supply GSM networks in other European countries. The success of these standards was possible thanks to the decision to create open and flexible technical specifications for the NMT standard, the tradition of Nordic collaboration and the entrepreneurial spirit of Nordic PTTs. Given that the Nordic mobile telephony standard incorporated technological advances over the original cellular concept developed in the US, the implication was that Nokia and other Nordic equipment suppliers benefited from first mover advantages in the mobile telecom industry (Palmberg, 2002, Invest in Finland, 2005 and Nokia 2007).

The NTM standard, which is based on analogue technology, is often referred to as the 1st generation (1G) standard for mobile telecommunication networks. The Nordic

162 topography favored mobile communications due to the dispersion of much of the population in remote areas. The success of the mobile phone can probably be attributed to the fact the Finland (as other Nordic countries) had a dispersed population for which the mobile option was cost-efficient in comparison to fixed telecom services. Most experts also agree that the Finns have been early adopters of technological innovations.

The popularity and relative rapid diffusion internationally of the NTM standard helped turn first-mover advantages into business opportunities in Finland and the Nordic region9, and later on to a competitive advantage on global markets. Nordic equipment manufacturers developed invaluable experience from manufacturing NTM networks and phones. In the specific case of Nokia, this standard formed an absolutely crucial springboard for the successful diversification of the company into the mobile phone equipment and cellular network business.

Enhanced market openness in the telecom sector

A recent report highlights that the degree of openness of the economy plays a key role in the innovation performance of a country, by increasing competitive pressure, enhancing technology transfers and triggering economies of scale. In Finland, the early deregulation of telecom market, the integration of the country into the European Union (EU) Single Market and the global economy and the liberalization of capital flows all contributed to the emergence of an innovative and competitive Finnish telecom equipment industry and to Nokia’s success.

Deregulation and increased competition

On the regulatory front, Finland undertook significant reforms in the late 1980s and early 1990s to foster stronger competitive pressure and improve the performance of many sectors of its economy. The country lowered barriers to market access by introducing structural regulatory reforms and new competition rules (OECD, 2003). Interestingly, these reforms were introduced relatively early on (and before Finland joined the EU), making the

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Finnish telecom industry one of the most liberal of such industries in OECD economies at the time. 32. The deregulation of the telecom sector, which started gradually in the mid-1980s, and the resulting decentralized system of (Finnish and foreign-owned) telecom operators, is a key factor that facilitated the introduction of technological innovation in the Finnish telecom equipment industry (Ministry of Transport and Communications, Finland, 1999 and Box 1). By enabling private operators to grow along the national telecom operator, the government played an important role in creating a competitive environment in Finland’s telecommunications industry –be it for network operators, telecom service providers or equipment manufacturers (OECD, 2003 and OECD, 2003a). This stood in stark contrast with the dominance of state monopolies in other OECD countries at the time. Only by the mid- 1990s did other European countries undergo similar regulatory reforms, liberalizing monopoly telecom environments and introducing the GSM standard as the pan-European Standard.

Structure of Telecom Industry of Finland

Operating environment of finish telecommunications

Finland is leading the European field in the utilization of telecommunications technologies. Accordingly, Finland’s telecommunications market is the most developed in Europe and among the most developed in the world. Practically every household has a conventional wired telephone connection and almost every Finn out of three carries a mobile phone. Moreover, the degree of network digitalization is 100% and data transmission speeds are among the fastest in the world. And last but not least, the number of Internet accounts per capita is not far away from occupying the number one place in the whole world.

The Finnish market of telecommunications is also among the most liberalized in the whole of Europe. In Finland, the telecommunications opened since from 1985. The liberalization process is easy in Finland as in many other countries, because some telecommunications operators have always been private. It can be said that Finland is a pioneer in telecommunications liberalization, since all restrictions on telecommunications services have been abolished since 1994 and the country is open to full competition. So far

164 competition has had a favorable effect on the price and quality level of services. Consumers in particular have benefited from falling prices for telecom products and services.

Consequently, the Finnish "telecom cluster" is highly competitive in the international arena and experiencing continuous growth, also in its importance as a provider of employment. According to the Data Communications International, Finland’s telecom market is characterized by healthy competition in the following areas: international leased lines, domestic and international VSAT, international telephony, digital services, domestic and international X.25 and frame relay services, as well as mobile data services. Only regarding domestic leased lines and domestic telephony Finland received a moderate health check rating in the Data Communications analysis of service offerings in 42 countries around the world.

Regulatory structure

Operator had to acquire a license granted by the Council of State in order to provide public telecommunications services with unrestricted subscription. However, the Telecommunications Act was amended in 1996 and thereby it was stated that licenses are only needed for telephone and mobile network construction. According to the new Telecommunications Market Act passed in April 1997, nowadays only a notification is required to start public telecommunications services, with the exception of, however, construction of a mobile network which still requires a license. The Ministry of Transport and Communications grants the license to everyone who fulfils certain conditions defined by the law.

Until 1987, PTT had a double role as a telecommunications regulator and a teleoperator. According to the Telecommunications Act in 1987, the regulatory status was transferred to the Ministry of Transport and Communications and PTT continued merely as a telecommunications operator. The Ministry is nowadays responsible for drafting the legislation, policy-making, regulation, licensing and supreme supervision. The Telecommunications Administration Centre (TAC), established in 1988, takes care of technical supervision and inspection of radio and telecommunications equipment. TAC is

165 also responsible for type approvals and standardization as well as frequency planning and numberings.

Structure of the Finnish Telecommunications Regulatory System

Telecommunications Administration Centre Ministry of Transport and Communications

• technical supervision and inspection of • drafting of legislation telecoms and radiocomms • preparation and handling of licenses • frequency and numbering planning

• type approvals • policy-making and regulation • standardization • supreme supervision and promotion of • international co-operation telecomms and radiocomms

• international co-operation

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Liberalization of Finnish Telecommunications Market

Finland is leading the liberalization of the telecommunications market. In the EU, only Finland, Sweden and Great-Britain have liberalized their markets for competition. EU's general principle of liberalization is to remove the entry barriers and to change the field of telecommunications into a normal business that is regulated by competition and consumer protection laws. The telecommunications markets shall be opened up in the EU as well as in Japan and the U.S. from the beginning of 1998.

The Finnish telecommunications market was first opened up to competition when data communication and business networks were liberalized. The Telecommunications Act of 1987 introduced the first elements of competition to Finnish telecommunications market abolishing all privileges based on former law. In 1990, competition was widened to cellular networks. In 1994, the telecommunications market was fully liberalized and each segment of the telecommunications market, e.g. the long-distance and international operations, has been subject to competition ever since.

From the beginning of August 1996, the regulation of telecommunications fees was dissolved in the amendment of the Telecommunications Act. The Act also relieved the entry into business for new companies and defined more accurately the rights and obligations of service providers.

Telecommunications market Act

In April 1997, the new Telecommunications Market Act was passed in the Finnish Parliament and entered into force in the beginning of June. The new act is expected to accelerate competition in the field of Finnish telecommunications and thus enable small and medium-sized enterprises as well as households to benefit from the competition.

The main objectives of this act Telecommunications Market Act are to open the local loop for competition and further liberalize the markets. Telecommunications Market Act promotes telecom competition mainly by requiring telecommunications companies to economically separate the provision of telecoms networks and services from each other. A

167 network operator with a significant market power operating local telecommunications has to lease subscriber connections to other operators and the connections have to be priced on the same grounds as the operator's own services.

The market power is a new concept introduced in the Telecommunications Market Act: a company with significant market power can be subject to stricter obligations than other companies in order to allow competition. Competition is also promoted by allowing a telecommunications company requiring connections from a network operator to indicate those points in the network between which it desires a connection. The free section of a network must be leased to all telecommunications companies on impartial and reasonable conditions independent of the service to be provided. The new Act lowers entry barriers to the telecommunications sector as the construction of a fixed telephone network is no longer subject to a license; however the construction of a mobile network still is.

The Telecommunications Act of 1996 stated that branches of foreign undertakings entered in the Trade Register in Finland were allowed to apply for a license in public telecommunications. In the new Telecommunications Market Act no restrictions to foreign ownership are mentioned.

The Act does not intervene in relations and profit distribution between telcos and the users, although it was part of the initial plans when the law was prepared. Competition in the field is namely hindered by the fact that the users are tied to the existing company due to their agreement with it. This hindrance is however, expected to be removed, since private telcos aim at changing the structure of the company. Finnish Parliament has requested the Ministry of Transport and Communications to follow closely the development and, if the competition in the field of local telecommunications does not expand as expected, to take measures amending the Act.

Attention was paid to the more efficient protection of children from the negative impacts of erotic telephone services. Moreover, it was also considered of crucial importance to enable the handicapped to have access to a sufficient number of teleservices at a reasonable rate.

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Major Players in Telecommunications Market

The Finnish telecommunications market is one of the most liberalized in Europe. Currently, the market comprises about 70 competing teleoperators offering a wide variety of telecommunications services, most them being private local telephone companies. Finland’s first telephone company, Helsinki Telephone Company (HPY), was established already 1882 when Finland was part of the Russian Empire. After that, the number of telephone companies grew fast, amounting to 800 in the 1930s. However, mostly due to mergers, there are nowadays 46 local telephone companies. The Finnish State started telecommunications operations in 1917 when Finland became independent and founded Posts and Telecommunications of Finland whose task was to build long-distance lines to the whole country and provide telecommunications services in scarcely populated, rural areas. Nowadays the state-owned Telecom Finland provides its customers a wide range of telecommunication services telecommunications services, and hence, competes with the local telephone companies.

Before 1993, the Finnish telecommunications market was characterized by a duopoly situation. Telecom Finland took care of the long-distance and international telephone services as well as local telephone services in rural areas. Private telephone companies operated in towns and cities for local area telephone services, especially in southern and western parts of Finland. Currently, according to the Finnish Ministry of Transport and Communications, the Finnish telecommunications market is characterized by competition between three main network operators: Telecom Finland Oy, Finnet Group (privately owned consortium of local telephone companies) and Telivo Oy (a subsidiary of state-owned power companies). Furthermore, there are several other companies entitled to construct their own networks. Foreign operators in the Finnish telecom market, such as France Telecom, Unisource, Cyberlink, and sprint.

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Table 1. Network Operators’ Market Shares (%), 1995

Telecom Finnet Telivo Others

Finland Group

Local teleoperations 29 70 0 1

Long-distance teleoperations 42 53 5 0

International teleoperations 76 17 7 0

Mobile teleoperations 90 10 0 0

Data communications 55 40 0 5

Functions of Telecom sector

Citizens are guaranteed free speech, the right of assembly, and the right to publish uncensored texts or pictures. The Consumer Protection Act and the Act on Unfair Business Practice regulate mass media advertising. The consumer ombudsman and the marketing court control mass media advertising. Mass media advertisements cannot make unsubstantiated claims, nor can they be offensive to minority groups. The use of children in advertising is restricted, and the advertising of tobacco products is completely prohibited.

Finland acted early in its constitutional development to ensure the rights of the press by implementing the Act on the Freedom of the Press (Article Ten of the Constitution Act) in 1919. The Act guaranteed, " the right of printing and publishing writing and pictorial presentations without prior interference by anyone." Section Twelve of the Finnish

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Constitution guarantees freedom of expression, which ensures the right to express, disseminate and receive information, opinions and other communications without prior prevention by anyone."

The 1919 Press Law established popular control of Finland's media by giving anyone who claimed that material printed about her or him was incorrect or offensive the right to demand correction. If the publication was found to be in error, it was obligated to grant the injured party an equal amount of type-space to be printed within two days after receiving the injured party's statement. Subsequently, in 1968, organizations of publishers and journalists established the voluntary, self-regulating Council for Mass Media (CMM).

The Council's primary purpose is to interpret "good professional practice and defend the freedom of speech and publication." CMM does not have legal authority; members voluntarily commit themselves to following ethical principles of the journalism profession. CMM has a president and nine members consisting of six media representatives (four editors and two journalists) and three members of the public. The Council president and its three public members are elected by member organizations, but they could not be members of any mass media organization.

Any private citizen or public official believing there is a breach of ethical principles in any form of mass media (newspaper, magazine, radio, or television) can lodge a complaint with the CMM. If the CMM finds through its investigation of the facts that ethics have been breached, it issues a notice that requires the party violating the principles to publish CMM's notice of findings. Complaints to the CMM are usually investigated in about three months at no charge to the person lodging the complaint.

CMM decisions are based on published guidelines that were accepted by the Union of Journalists in Finland in 1992. CMM investigated 120 public complaints in 1998. Historically CMM found in favor of the complaining party about 25 percent of the time.

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In 1951 Finland adopted an Act on the Publicity of Official Documents, and in 1999 adopted the Openness of Government Activities Act. Accordingly, documents and recordings of government are considered public, unless their publication is specifically restricted by an act.

In 1966 Finnish legislation protected the confidentiality of sources by allowing journalists to refuse to reveal the identity of sources, unless it would solve a serious crime calling for a sentence of six or more years. In 1971 protection of the confidentiality of sources was extended to television journalists.

Censorship

According to Freedom House's annual ratings of press freedom, Finland's media enjoyed relative freedom throughout the late twentieth century. While there are restrictions on mass media advertising, there is no "official" censorship in Finland.

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State-Press Relations

Each of Finland's 13 governmental ministries has its own department responsible for disseminating public information and issuing press releases pertaining to its functions. Finland's government considers the media to be a "cultural industry." Media-related cultural industries are mass media (radio, television, and newspapers), cinema and video, publishing (books and periodicals), and sound recording.

The Ministry of Education is responsible for cinema, video, and book publishing. The Finnish Audit Bureau of Circulations is responsible for recording the circulation levels of each Finnish newspaper.

The Ministry of Transport and Communications is responsible for assuring that "the public and the business community have safe and inexpensive transportation and communication services." The department's Mass Media Unit is responsible for administration of the mass media in Finland by handling television and radio broadcasting, mass media legislation, newspaper subsidies, postal services, and the economy and research of mass media.

According to the Ministry of Transport and Communications, governmental newspaper subsidies are paid to newspaper publishers to "guarantee freedom of speech and to conserve a diverse press." Subsidies to newspapers declined during the 1990s. In the early 1990s the Finnish government paid nearly 500 million FIM. By 2000 the amount of subsidies declined to 75 million FIM. Indirect support for the print press was discontinued by 1996. The two forms of newspaper subsidies remaining in effect in 2002 were "selective" subsidies intended to lower newspaper transport and delivery costs (30 million FIM) and "party" subsidies granted to political parties for their publications (45 million FIM). The amount of subsidies to political parties is divided among the parties depending upon their relative representation in Finland's Parliament.

Attitude toward Foreign Media

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The Ministry of Foreign Affairs is responsible for providing information pertaining to Finland's government and its operations. Within the Ministry of Foreign Affairs, the Press and Culture Department handles communications with foreign media. The Ministry also makes arrangements for state and ministerial visits, and coordinates the press and cultural activities of the approximately 25 officials of Finland's Foreign Service. The Ministry of Foreign Affairs' Web site, which holds complete English translations, is the responsibility of the Ministry's Press and Culture Department.

Within the Ministry of Foreign Affairs Press and Culture Department there are four units with specific media responsibilities. The Media Unit is responsible for the International Press Center for foreign journalists and arrangements for visiting dignitaries. The Information Unit is in charge of the Ministry's external information such as press releases and media inquiries. The Cultural Unit is in charge of Finnish cultural activities and international cultural cooperation, such as cultural agreements and documents, and organizing journalists' visits related to cultural affairs. The Publications Unit handles external publications, the Press and Culture Department's library, and the maintenance of "Virtual Finland," the Foreign Ministry's Web site, the journal Kauppapolitiikka and the annual Press Directory.

Citizens of Nordic countries do not need a work or residence permit to work or live in Finland. Citizens of European Union countries do not need to obtain a visa to enter or work in Finland but must obtain a residence permit issued by local police departments. Foreign citizens who are not members of either the Nordic or European Union countries must obtain residence and work permits in order to stay in the country longer than three months. Valid passports and a statement from the Finnish Department of Labor (which a Finnish employer must obtain for the foreign citizen) are required to secure Finnish residency and work permits. Foreigners who become eligible to live in Finland are subject to Finnish laws as well as Finnish protections. Foreign residents can choose where to live and can freely leave the country.

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News Agencies

The 2002 Press Directory, published by the Finnish Ministry for Foreign Affairs, listed four news agencies. Two of the agencies, Keskustan Sanomakeskus and Up- Uutispalevlu are located in Helsinki. Startel News Agency, located in Sanomat, is an independent news agency. Svensk Press Janst, located in Helsinki is an independent Swedish language news agency.

In addition to the news agencies listed in the directory, Finland's Ministry of Foreign Affairs offers news analysis, parliamentary speeches, and articles about Finland from the foreign press. The service, Newsroom Finland, is available at the Ministry's Web site. The American Embassy also offers press and cultural affairs services at its Helsinki offices at the American Resource Center (e-mail :.)

Press Associations and Information Bureaus in the directory included the Association of European Journalists; the Association of Finnish Economic Correspondents; the Association of Finnish Foreign News Journalists; the Council for Mass Media; the Finnish Association of Magazine Editors-in-Chief; the Finnish Newspapers Association; the Finnish Periodical Publishers' Association; the Guild of Finnish Editors; the International Press Institute; the Association of Finnish Third World Development Journalists; the Political Journalists Association; Taloudellinen Tiedotustoimisto (Finnfacts); Union of Journalists in Finland; and the Western Foreign Press Club.

The Union of Journalists in Finland has about 10,000 members, 50 percent of whom are women. In addition, the Women Journalists in Finland, founded in 1946, is one of Finland's oldest journalist associations. The Women Journalists association's goals are to improve the professional skills of its members and to improve the position of female journalists in newsrooms and editorial offices. They annually select a "Torchbearer of the Year" who, through her activities, brings consciousness and debate on a current issue or problem to the public's attention.

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The 2002 Press Directory listed 19 foreign news agencies and over 120 foreign correspondents. Associated Press and Reuters, along with the other foreign news agencies, had offices in Helsinki.

Broadcast Media

Commercial and public television services entered the landscape in 1957. Four domestic national television channels and six national radio networks operate in Finland. The country's first private local radio stations were established in 1985. The state-owned Finnish Broadcasting Company (YLE) broadcasts at the national level with three channels in Finnish and one in Swedish. The Companies Act and the Bookkeeping Act legislation govern YLE.

YLE's operations are based on a license issued by the Finnish Council of State (1994 Broadcasting Act). Under the legislation of the 1994 Broadcasting Act, YLE operates or supervises all television and radio broadcasting. YLE is prohibited from advertising or carrying sponsored programs on its radio and television channels; and is required to offer services in Swedish, Sami, and other minority languages. Fifty-seven percent of all television programs were domestically produced in 2001. About one-half of the foreign-produced television programs were from other European countries and about 30 percent from the United States. Foreign television programming is shown with subtitles.

YLE's largest revenues are from license fees, providing service to television companies such as YLE, MTV3, and Channel Four. The Finnish television broadcasting companies cooperatively agree to classify programs unsuitable to children under age 16. Programs considered unsuitable are broadcast after 9:00 P.M. In January 1999 YLE transferred ownership of its broadcasting distribution network to its subsidiary Digita Ltd. In November 1999 Sonera, Finland's largest telecommunications company, bought a large share in Digita Ltd.

Cable television expanded rapidly during the 1980s, and by 1995 over one-third of Finnish households had cable television. The government issues cable licenses. Cable networks are required to carry a certain proportion of domestic productions. The state also

176 imposes advertising quotas, stating that commercials may not occupy more than 11 percent of the programming time.

The largest telecommunication company, Sonera, announced its intent to merge with another Finnish telecommunication

Company, Telia, in March 2002. The merger will make them the leading telecommunications group in the Nordic and Baltic regions.

Electronic News Media

Finland's information technology knowledge has increased along with the industry itself. 60 percent of all Finns are able to use a computer. In 1999, 38 percent of the population had access to the internet, ranking second to the United States in per capita Internet connections. By 2000, nearly 90 percent of Finnish organizations employing more than 10 persons indicated they used the Internet. Further, 80 percent indicated they had their own home page.

In 2001 Finland's electronic news media was penetrating the print media's traditional market, with a 1 percent share of total national advertising expenditure going to Internet

177 advertising. Nearly 200 Finnish journalistic publications were available on the Web, and all major media companies had their own Web sites, providing news and information in Finnish, Swedish, and English.

Finn Facts a media service acting as a liaison between foreign media and Finnish industry, provides Internet accessible information about Finnish society. Finn Facts publishes business and industry information through its network of domestic and international contacts. It also arranges visits for members of the foreign media wanting to learn about the country's industries and innovations.

Education & Training

Finnish commitment to reading reflects on the national commitment to education and literacy. Article

Twenty of the Finnish Constitution guarantees provision of free education through the university level. The Finnish education system is divided into four categories: comprehensive, general secondary, vocational secondary, and higher education.

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In 2001 there were 10 multidisciplinary universities ( yliopisto ). In addition, there were 6 single discipline universities, 3 art academies, and over 20 polytechnic schools ( ammattikorkeakoulut ). The categories of higher education degrees offered by Finland's universities are the Bachelors, the Masters, and two graduate degrees, the licentiate and the doctorate.

Finland was the first of its Nordic cousins to offer a degree program in journalism in 1925; The University of Helsinki followed in 1965 and Jyvaskyla in 1985. In 1960 The University of Tampere became the leading Finnish university for journalism studies. Between 1960 and 1990 the University graduated 400 professional journalists (with B.A. degrees) and 900 masters degree students majoring or minoring in the field. Since 1993 Tampere's program averages 35 to 40 M.A. graduates. Annual new enrollment in journalism programs averages 80 at Tampere, 20 at Helsinki, and 20 at Jyvaskyla.

Journalism-related degree programs are available at the University of Helsinki, the University of Tampere, the University of Jyvaskyla, and the University of Arts and Design Helsinki. The University of Helsinki's Department of Communication, founded in 1978, accepts 35 students each year. Its journalism program includes courses in general communication theory, study of mass communication, organizational and interpersonal communication, communication policies and technologies, and the media. The University of Tampere's Journalism and Mass Communication program includes courses in theories of communication, media economy and policy, media analysis and criticism, media research issues, Finnish media and communication systems, and current issues in communication and information sciences in Finland. The University of Jyvaskyla's Department of Communications offers courses in journalism, speech, organizational communication, and public relations. The University of Art and Design Helsinki offers degree programs in Film and TV studies, and in Journalism Photography.

Most degree programs require 140 to 160 credits consisting of basic studies, professional studies, elective studies, job training, and a written thesis. Finland's degree students learn the fundamentals of the field in which they major, its importance in the work

179 world, in Finnish society, and internationally. Students are also required to take language studies in both their native language and at least two more foreign languages.

Enrollment at Finland's universities in 2001 was 162,800. Eighty-five percent of Finnish university students were undergraduates. About 21,000 (15 percent) were postgraduate students. Entry was highly competitive with only 43 percent (28,400) of the 65,400 applicants being accepted. In the "open university" system 83,200 students were enrolled, and another 106,700 Finns participated in continuing education.

In addition to the professionally recognized journalism degree programs, the Union of Journalists, as well as media employers, offer journalism-related courses through the university centers. For example, Helsingin Sanomat, Finland's multimedia giant, offers in- house education programs in journalism, and the Finnish Broadcasting Company (YLE) has its own Radio and Television Institute for its staff. Media courses are also available at the civic colleges.

Journalism and media related centers providing research, training, and publicity related to journalism operate at the University of Tampere at the Journalism Research Centre. A regional center, The Nordic Centre for Media and Communication Research, whose focus includes Denmark, Finland, Iceland, Norway, and Sweden, headquarters in Sweden with a branch at the University of Tampere.

Non-Finnish students can obtain residency permits in order to study in the country, provided they demonstrate they have enough funds to support themselves. During the period in which they are studying at Finnish universities, foreign students are able to work without a permit. The Centre for International Mobility (CIMO), a unit of the Finnish Ministry of Education located in Helsinki, promotes international student exchange programs.

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Comparative Position of Telecom Industry India and Finland

India Telecom Sector

The total revenue of the Indian telecom sector grew by 7 per cent to Rs. 2, 83,207 crore for 2010-11 financial year, estimates telecom journal Voice& Data.

During the previous fiscal the total revenue of the sector stood at Rs. 2, 64, 669 crore.

Revenue from various services in the Indian telecom industry grew to Rs. 166,168 crore, up 14.9 per cent, in 2010-11 fiscal as against Rs. 1, 44,600 crore in the previous financial year.

“The growth was purely driven by growth in subscriber base for various services,” Ibrahim Ahmed, Chief Editor of Voice& Data told PTI.

Various telecom services counted in the survey include cellular, fixed line, National Long Distance (NLD), International Long Distance (ILD), broadband and VSAT services.

However, revenues from telecom equipment segment declined by 2.52 per cent to Rs. 1, 17,039 crore in FY ’11 from Rs. 1, 20,069 crore in FY ’10.

“Due to amendment in security norms of telecom license most of the service providers could not purchase equipment. This effect was visible on the overall revenue of telecom equipments segment,” Mr. Ahmed said.

Voice& Data estimates that maximum revenue in the service segment of the industry came from cellular services market which grew by 16.6 per cent to Rs. 102,230 crore in FY ’11 from Rs. 87,680 crore in the previous fiscal.

Revenues from fixed line continued to decline both in terms of number of connections and revenues. V&D estimated it to be at Rs. 11,602 crore representing a 15.6 per cent year-on-year decline.

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Based on the survey, the journal estimated that the country has close to 501 million active subscribers instead of 574 million reported by Telecom Regulatory Authority of India for March.

Revenues from International Long Distance (ILD) segment is estimated to be at Rs. 22,607 crore in FY ’11, up 10 per cent from Rs. 20,530 crore in FY ’10.

The journal attributed the growth in ILD segment to Indian telecom operators increasing their presence in foreign markets. “This brought additional ILD revenue for domestic operators. With falling rates there has been a substantial growth of inbound voice traffic into India,” it said.

According to the survey revenues from broadband services stood at Rs. 6,846 crore recording a growth of 22.4 per cent over FY ’10 revenue of Rs. 5,591 crore.

“While BSNL’s broadband revenue grew by 40 per cent in FY ’11, the other state-run telecom operator MTNL’s revenue grew just 8 per cent during the same period,” the journal said.

Top 30 cities contributed nearly 60 per cent to the total number of broadband subscribers.

Among service providers, BhartiAirtel retained its top position for the second consecutive year, by posting a revenue growth of 42.1 per cent at Rs. 59,467 crore in the 2010-11 financial year.

Vodafone Essar occupied the second spot. It registered 16.1 per cent growth in revenue at Rs. 27,348 crore in FY’11 as against Rs. 23,559 crore in the previous fiscal. This was followed by Reliance Communication, which reported a marginal revenue growth of 4.4 per cent at Rs. 23,108 crore for FY ’11.

According to the estimates of V&D, state-run telecom company BSNL registered a 10 per cent drop in revenue at Rs. 28,877 crore in FY’11 from its previous fiscal’s earnings of Rs. 32,072 crore.

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During the 2010-11 financial year, revenue of other public telecom operator MTNL dropped nearly 22 per cent at Rs. 3,951 crore, it said.

Finland Telecom Sector Position

This brought Nokia an important reference for the future (Ali-Yrkko, et. al, 2002). Thanks to the strong support of the EC, GSM then also became the European digital standard and Nokia won contracts to supply GSM networks in other European countries. The success of these standards was possible thanks to the decision to create open and flexible technical specifications for the NMT standard, the tradition of Nordic collaboration and the entrepreneurial spirit of Nordic PTTs.

Given that the Nordic mobile telephony standard incorporated technological advances over the original cellular concept developed in the US, the implication was that Nokia and other Nordic equipment suppliers benefited from first mover advantages in the mobile telecom industry (Invest in Finland, 2005 and Nokia 2007).

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The NTM standard, which is based on analogue technology, is often referred to as the 1st generation (1G) standard for mobile telecommunication networks. The Nordic topography favored mobile communications due to the dispersion of much of the population in remote areas. Source: Steinbock, 2000. 9. Finland enjoyed a high rate of mobile penetration.

By the end of 1998, for example, it stood at 57.1%, or more than twice as much as the European average (which stood at 28.3%) (Steinbock, 2000). The success of the mobile phone can probably be attributed to the fact the Finland (as other Nordic countries) had a dispersed population for which the mobile option was cost-efficient in comparison to fixed telecom services. Most experts also agree that the Finns have been early adopters of technological innovations.

Today’s strategic issues of HRP in India.

HRM is a dynamic field that is constantly evolving, challenging the ability of even the most seasoned professionals to keep abreast of policies, procedures, compliance requirements and best practices. In the context of Indian companies, the topmost challenges which are faced by the HR can be enumerated as:

1. Recruitment: In today’s economy, talent acquisition is the foremost business challenge that the HR function faces. The lack of investment in education has led to an acute

184 shortage of talented professionals, who can take the onus for change in a developing economy like India. HR needs to have close tie-ups with professional institutes and colleges to bridge the gap between education and industrial requirements.

2. Training: The recruits’ level of competencies and their job expectations can only be fully understood once they have entered the initial training program (orientation). This program should be followed with interpersonal and intercultural training at a later stage. Once people move up the ladder there is little time for training. There is a lack of leadership training on the operational level which is reflected on the work floor and consequently on the job satisfaction of the employee.

3. Managing and Leading Change: Business environment in India is volatile. There is boom in terms of opportunities brought forward by globalization. However, this is also leading to many interventions in terms of restructuring, turn-around, mergers, downsizing, etc. Research has clearly shown that the success of these interventions is heavily dependent on managing the people-issues in the process. The rapid pace of change, coupled with information overload, makes thinking about the future a daunting task. How an average HR professional gets information on the forces of change (demographic, social, political, legal, economic, technological trends) and then finds the time to analyze the possible impacts that they will have on the organization, is an area that requires lot of deliberation.

4. Managing Technological Challenges: In every arena organizations are getting more and more technologically oriented. Preparing the work force to accept technological changes is a major challenge.

5. Developing Leadership: It is quite interesting to note that there is less importance given to developing leadership at the organizational level. Though leadership is discussed on the basis of traits and certain qualities, at an organizational level it is more based on knowledge. The challenge is to develop individuals who have performance potential on basis of past record and knowledge based expertise by imparting them with the necessary "soft skills".

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6. Attrition: This remains an enormous challenge. The effects of attrition are loss of productivity, temporary replacement, loss of knowledge and new recruitment and training. To deal with this, the HRM should ensure that the job profile looked for not only matches the skills and competencies but also the job expectations of the candidate. An open discussion with the candidate during recruitment can give an insight into the expected period of his stay with the company. Competitive salaries, perks, bonuses, incentives, on-the-job training and a good working environment may be used to increase the satisfaction levels of employees.

7. Ability to Forecast: The industry expects a qualified HR professional to bring on board the knowledge by virtue of which they can make visible the unseen. For instance, in a renowned FMCG company, it is imperative for HR professionals to come with an experience of a stint outside the realm of HR (say the sales or plant), which is crucial for better understanding of the business. This helps them earn the credibility of line managers and also facilitates creation of a synergy within the organization.

8. Promotion of Self Learning Culture: All employees, including HR should be encouraged to offer ideas and challenge the current approaches to doing business. This allows optimum engagement of employees resulting in a greater opportunity for growth and a deeper connection to the organization. A big component of developing a learning culture is allowing employees the freedom to make mistakes, to take chances, and try new roles. HR can support this culture with formal collaboration and idea programs, as well as implementing incentives that encourage this behavior.

9. Getting beyond the Multi Generational Hurdle: As people don’t fit neatly into a stereotypical generational cohort, a successful HR function will have to try to develop procedures and practices to accommodate four or five different generations. The key to retaining and engaging the best and the brightest today is to treat each individual as an individual and build trusting relationships between supervisors and employees.

10. Building Character of Employees and Thus That of the Organization: As is evident from rampant cases of corruption and wrong-doings in the corporate sector in the recent times, it turns out that intelligence and competence of employees is not the only

186 requirements of an effective organization. HR needs to develop the character of employees in such a way that the emphasis is on the way to do right things beyond doing things right. Upholding of good morals and a strict value system can go a long way in creating and maintaining the organizational ethos and reputation.

In the present times, the traditional HR functions of staffing, recruiting, compensation, and benefits are losing ground to a new generation of value added core HR functions that include career planning, executive development, training, succession planning and organizational development. The ability to juggle these dual responsibilities of talent management and organizational development with equal ease is the need of the hour or all HRM professionals.

Today’s HRP issues of Finland

Hiring

The first step in successful human resource management is locating talented employees. This can be done through public advertisements in newspapers and websites but is just as frequently done through internal networks and personal contacts.In this country the issue ofhrp due to this process. Hire Superior skill employees for the company is very difficult because it is hard to find that type employees so the issues releted to hire comes in the company.Just as important is the ability to identify individuals who might be a problem for the company before hiring them.

Training

Once an individual is hired, he needs to be familiarized with what is expected of him and trained to do things in ways that are compatible with the organization. Well-run businesses provide employee training not only when people are first hired, but also on an ongoing basis to ensure that their skills remain updated and relevant. But in that sector the employees are not ready to attained that type training and seminars which are held only for there skill development., that’s why the hr issue take place.

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Rewards

Most skilled workers are aware of their value to a company and expect to be rewarded for what they do. In addition to fair and generous salaries, smart companies retain skilled employees through benefits programs, profit sharing etc..Reworded the employees which are give their best to organization ,but due to poor measurement of the employees performance, the actually deserved employees are not getting rewords that’s why the hr issues take place.

Firing

In cases of financial downturn or inadequate performance, it is sometimes necessary to terminate employees. This job done for the maintain the health of the company. Firing can be a traumatic experience on both sides, especially when it is the result of financial necessity and has nothing to do with how well the employee was doing her job. The employees whoperformances are not related to job the management fire that employees. It was hard job for the organization so when they do this work the issue related to HR creates.

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Comparison of strategic HRP issues in both country

Type Of Hrp Issues India Finland Recruitment yes No

Training Yes Yes

Managing and Leading Change Yes Yes Managing Technological Challenges Yes Yes Developing Leadership: Yes No

Attrition: Yes No

Ability to Forecast Yes No

Promotion of Self Learning Culture: Yes No

Getting beyond the Multi Generational Hurdle: Yes No

Building Character of Employees and Thus That of the Organization Yes No

Hiring No Yes

Rewards No Yes

Firing No Yes

India-Finland Relations

Finland and India have traditionally enjoyed warm and friendly relations. In the recent past, there has been a perceptible increase in the level of engagement, both political and commercial, which saw the exchange of the visit of the Prime Ministers of the two countries during the same calendar year (2006). This was followed by a visit by the President of Finland Mrs.TarjaHalonen in January 2007, February 2009 and February 2011 and Finnish Prime Minister Mr.MattiVanhanen visited India in February 2008 and February 2010, to attend the Delhi Sustainable Development Summit organized by TERI. In 2011, there were frequent exchanges of visits from both counties.

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Finland sees in India a large market for its products and a favorable investment destination for its high technology industries whereas India views Finland as an important member of the EU and a repository of modern technology.

Bilateral Agreements:

India and Finland have the following agreements:

(a) Trade Agreement (1967). Modified Economic Cooperation Agreement (March 2010). (b) Agreement on Avoidance of Double Taxation (1983) – Amended in January 2010. (c) Setting up of the India-Finland Joint Commission (1974) (16 meetings of the Joint Commission have taken place up to October 2009)

(d) Cultural Agreement (1983) (e) MOU on Textiles (1993) (f) Air Services Agreement (1995), modified in May 2006. (g) Bilateral agreement on Promotion & Protection of Investments (2002).

(h) Agreement for Cooperation in the Fields of Science & Technology (2008).

India-Finland Trade:

Indo-Finnish economic and trade relations have grown steadily in recent years with bilateral trade reaching Euro 1295 million in 2011, after declining a little bit in 2009 due to global slowdown. First time in 2011, India’s trade is in its favors. Following are figures for the past few years:

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2008 2009 2010 2011 Exports from India to Finland 219.49 230.44 349 670

Imports by India from Finland 529.24 450.24 599 625

Total 748.73 680.68 948 1295

Main export items from India have been garments, made ups and textiles accounting for about a third of the exports. Other major items include metals, iron and steel, chemicals, petroleum products and leather. Major imports from Finland include telecommunication equipment, power generating machinery, eclectic and other machinery.

Finland telecom sector‘s policy and structure of policy

The Finnish Ministry of Transport and Communications is the policy making body, but, by law, it also has regulatory tasks. The Finnish Communications Regulatory Authority FICORA is the regulate. The decision power of FICORA is vested with the Chief Executive Officer, appointed by the Minister. Until 2001 FICORA had a board with representatives from the industry and users. The board decided on budgets, operational and financial plans, general development of FICORA, significant sector development plans, technical regulations and general license conditions. FICORA may appoint advisory committees, and had appointed five advisory committees by the end of 2001. FICORA interacts closely with competition and consumer Authorities and with the industry, as well as with relevant international organizations. It maintains a comprehensive Internet site, in Finnish and Swedish (official languages) and English, as well as publishes periodicals and runs seminars.

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Legislation

Year lows Description The Finnish senate was empowered to issue licenses 1886 Telephone Declaration for installation of telephone lines, no monopoly mentioned 1919 Telegraph law Government monopoly to provide telegraph service

1987 Telecommunications Competing licenses possible, license granted based on law political discretion. Initially Sonora had by law right to provide service, other operators needed a license 2002 Communications All communications networks (also broadcasting market law except content) in the same law (convergence) 2003 Communications under preparation) Meets the proposed new EU market law II framework

After 1987 the legislation has been amended several times, almost annually. The above table does not include amendments. Some amendments have been significant, e.g. Sonera ‘s special rights were repealed and its status was changed to a normal licensed operator in 1990. The Communications Market law I includes the essential elements of convergence, including the policy of technology neutrality. There is no distinction between networks built for traditional telecommunications, cable television and terrestrial television, except for frequency licensing. All these networks can be used for any service. Broadcasting contents does have special Legislation regarding contents, but it is separate from networks. Perhaps the most important new feature is that Internet services can now be delivered using cable television and (later) digital terrestrial television. SMP status can be imposed on operators that have Significant Market Power in relevant markets, including telecommunications and broadcasting.

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Introduce Effective Compitions

Due to the multi-operator structure and the two camps, Finland had no difficulties in introducing effective competition. The only action needed was to remove the obstacles for operators to compete, i.e. extend the licences to cover the competitors’ former licence areas and former monopoly services. Some facilities-based competition was already introduced in the mid 1980’s, for data communications that was not covered by the outdated telephone legislation from 1886. Sonera claimed exclusivity for telefax and data services. The telcos offered telefax services and interconnected their backbone networks for data services, and could thus easily cover most of the corporate data communications market. This caused a bitter fight and legal actions. The outcome of the legal actions was that telefax and data communications were not covered by the outdated legislation.

The first major competitive licensing was to grant GSM licences to the two camps in 1990. The outcome was good: Finland soon became the world leader in mobile penetration. Sonera had a previous NMT service, but the Finnet camp was an entrant in mobile. Sonera has been able to retain its position as market leader in mobile services. The multi-operator structure with two camps resulted in facilities competition. Sonera implemented its own mobile network covering the Finnet camp areas. The telcos agreed on how to cover the areas in which Sonera was the traditional local fixed operator. Both camps used the underlying backbone networks for all their different services, in particular also for data services and corporate services. After some cautious liberalization up to 1993, full competition in fixed telephony was introduced in 1994. The changes in market share in national and international long distance services were impressive. Within a fewmonths the Finnet camp achieved a 50 percent market share in domestic long distance services. The Finest success in international traffic was smaller (20 % in 1995). All new entrants were much less successful.

The most successful entrant was Telia. The Government also tried to introduce competition on the local level, e.g. by mandating lease of access loops and loop sharing. The outcome is

193 not impressive. The main results are achieved in corporate services, mainly using competitive facilities (optical fibre and microwave links) built for the purpose to major customer sites. Facilities competition appears not to be realistic for residential customers and small enterprises. Lease of loops appears to remain a marginal method. The four main underlying reasons for the different outcome in national and international market changes were numbering; a. Tariffs; b. The relevant subscriber base; and c. Marketing.

Interconnection was not an issue as it was a century-old tradition.

Tariffs

At the time for liberalization of international telephony, mobile operators did not charge for access (the national part of the outgoing international call), the international charge included mobile access. This was possible because of the vertically integrated operator structure and most calls used the same camp’s international operator. Because fixed access was charged (most calls used an international operator from another camp), international calls from a mobile phone were cheaper than from a fixed phone. Mobile access charges were mandated later on, normalizing. The situation so that international calls were cheaper from fixed telephones.

Cost based tariffs

All private companies were financially independent from the outset. None of the local telcos received any subsidy from long distance or international revenue. See also Chapters 3.6 and 3.7. Thus charges were automatically cost based. Because the private telcos were mainly co-operatives (one line for one share), the user-owners never accepted overcharging. Charges were not below cost, as such charges would quickly have resulted in bankruptcy.

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The only major exception to cost based tariffs was Sonera until the early 1990’s. Sonera could cross-subsidies

From long distance and international revenue to its own local services. The subsidies vanished in the early 1990’s when competition was introduced. Sonera had to cut the cost of local services, increase rentals and reduce long distance and international tariffs to competitive levels. Finland has performed rather well in comparison of user costs. One comparison is shown in Table 9. The table shows that Finland is usually in the top three.

Trade Barriers for import/export telecommunication sector

Total U.S. trade in telecommunications equipment increased from $13.4 billion to $23.1 billion. During 1993-97 in response to growing demand in the United States and each of its major markets. U.S. exports nearly doubled to $13.1 billion during this period, an average annual increase of 19 percent while imports grew at a more modest annual average of 10 percent reaching $10.1 billion. The rapid growth of exports produced a trade surplus in 1994 that steadily grew to $3.0 billion in1997.Overall trade growth can be attributed largely to reductions in tariff and non-tariff barriers, to industry globalization which increases the number of cross-border shipments between parent companies and subsidiaries, and to the proliferation of strategic alliances between firms. Manufacturing in different countries. The trend toward globalization has affected the composition of traded products by increasing two-way trade in the same type of products, such as wireless equipment and modems. Globalization and strategic alliances have also encouraged trade in parts.

Import and Export in India

Import and export products in India are an immense way to inflate your business and a best way to participate in the global economy. In reality, companies that do business

195 worldwide grow more rapidly and fail less frequently than companies that don't. If you are ready to start import and export products in India and become a part of international trade, then there are a number of government programs to help you get started. Also, there are strict set of laws for top import and exports in India.

Top import and export products in India bring new heights to the trade business, and also contribute in the international trading. However the business of top imports and exports has become one of the newest commercial trends of this decade. According to a survey, American companies trade in over 2.5 trillion dollars a year in commodities, of which small businesses manage over 95 percent. As being the owner of a top import and export products enterprise, you can work as a dispenser by focusing on exporting and importing goods and services that cannot be achieved on national soil (e.g., Russian caviar and French perfumes) or those that are economical when imported from other countries (e.g., Chinese electronics). An Export Management Company can focus in one industry or work with diverse types of import export manufacturers. This is a good selection for products that are assured to sell because of high demand or an established brand name. In contrast to other businesses, though, import export companies have a very small startup cost. The top imports and exports in India have a growing list depending upon the demand and supply of products in the country.

While the majority products can be exported without the need for licenses, some specialized products or high-risk items, such as firearms or pharmaceuticals, may necessitate special government permits. If that's the case, costs may run significantly higher. Many top import and export products in India are regulated by centralized agencies. If you import or export some specific types of products, you may be required to obtain specific licenses and permits or complete supplementary paperwork.

These top imports and exports in India include products like:

a) Agricultural products

b) Automobiles

c) Chemicals

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d) Food and beverage products

e) Industrial goods

f) Pharmaceuticals and biotechnology

g) Defense products, etc

Business opportunities in india

1. Online customer support from india

there is a company in bangalore that has pioneered this idea. Aditi (www.aditi.com) provides email customer support for real media. The customer in america who needs support will have his problem solved via email by a team of indians. The internet has opened the door for this type of opportunity. It really is true that the geographic barriers are coming down.

The potential: the business potential in this type venture is the cost savings of running a business in india. There is a huge labor pool of good quality english speakers who can easily handle customer support for web sites like realmedia. The cost to hire someone to do this is about us $150-$200 per month. You can expect to hire a very nice english speaker who has had some computer training. Furthermore he or she will have a pleasant attitude, as most indians are warm and friendly.

The downside: the risk is that the customers will not be served well if the indian staff is not trained properly. The staff needs to understand the mindset of the american customer. This can easily be overcome as long as the potential problem is recognized.

2. E-commerce export opportunities in india

There are plenty of things that can be purchased and exported. One young man has sought out unusual coffee and spices and now has an e-commerce site where he sells these items through the mail. Perhaps it is not even necessary to purchase and warehouse anything. Partnering and establishing joint ventures with indian companies would give you the

197 opportunity to handle a variety of products without the risk and cost. You could simply create a website that sells the products. This is not much different than amazon.com. Do you realize they don't publish books? They just sell other's. Often they have the book sent to the customer directly from the publisher eliminating the shipping and storage.

The potential: the potential is to find a niche market. Perhaps this could be in the area of health care products, herbs or plants that are only found in india.

The downside: the risk is that the product may not sell. Fortunately the internet can be used to test the market before taking much risk. It is much easier to find the demand for items and then meet that demand than to start with the product. India has plenty of products that can be tested on the market.

3. Export animations, multimedia, graphics or other content products

Again this idea utilizes the skilled creative labor force in india. We have not been able to find a case study of a company doing this in india.

The potential: the potential is to fill the huge demand for quality content that the web is creating.

The downside: the downside is that it requires careful supervision to assure that the product communicates effectively to a western audience. For example, a westerner's taste for colors is different to that of an indian.

4. Export data services

Any kind of outsourcing of data entry or data conversion is a good candidate for a successful start up business in india. The hottest thing these days in bangalore is medical transcription. Doctors and hospitals in the usa send their audio transcriptions via the internet to bangalore, india. They send the audio file at 5:00pm which is around 5.00am in india. The workers can do their work so that the doctor has the text document the next morning. In bangalore you can find good examples of companies already doing this. Go to yahoo and

198 type in "data entry india" or "data conversion india". You will be startled by the amount of information that is available.

The potential: the potential for this type of business venture is great. Many of the bangalore companies are growing and adding employees quickly. The reason there is such a global demand for this kind of work is because companies want to have their documents in a digital format. This conversion may include scanning the document into the computer and then going one-step further and tagging and indexing them in html sgml or xml so that it can be put on the internet and easily retrieved. The entrepreneurs who are willing to joint venture with indian partners to start up a business like this will not only make money but will be doing a great service for india by providing high quality skilled jobs.

The downside: the risk is in, not maintaining top quality work for the client. This has been a complaint of many clients.

5. Start a software company

There is nothing new about this. There are plenty of success stories. Bangalore already has at least 600 software companies. Most of these are indian owned and non- resident indians have started a few of them. For a list of bangalore software companies you can go to resource page. Government of india and especially karnataka (the state in which bangalore is), is encouraging foreign involvement and investment and has turned on the green light to hi-tech companies. They have even created some tax incentives for this industry.

The potential: the potential is for the development of quality software using the extremely intelligent labor force in india at a lower cost. Cost savings can be found in rent, insurance etc. High quality programmers can be hired for 25%-50% of the cost of the same software programmers in the west. For a good example look at gseindia.com and read the history of this high end swedish/indian software company.

The downside: the downside is that there are inefficiencies related to working in india i.e.: erratic power, government bureaucracy, poor internet connections etc. Unless the cost

199 saving is considerable, many of the problems related to doing business in india will offset the benefit.

6. E-commerce business opportunities within india

The consumer market is huge and expanding. It is not only growing by sheer population growth but also because the improving economy is producing a growing class of people with disposable income. Furthermore this potential market is relatively untouched. It is only in the past few years that many consumer products have become available in india.

The potential: the potential is to get involved early in the e-commerce boom. As of now there are only a handful of companies involved. The potential is limited for the next year or two (see below). But keep in mind that china had only 600,000 internet users in november 1997 and by october of 1999 china has about 4 million users (and the big advantage that india has over china is the common use of the english language.). The same growth of the internet will happen in india.

The downside: there are some serious obstacles in the way. Few people are used to the idea of mail order. It may take one or two years for the trust to be established between the customer and the company. Also the middle class is 50-70 million but only about 1 million have direct access to the internet, only 1 in 36 indians have a phone and most don't have a credit card.

Conclusion

English & Swedish are broadly spoken in Finland and are very common in the business world. Some international Finnish companies even use English as their house language. Finland is an eye-catching, efficient center for Northern European business. It is also a knowledge center offering world class skills, research & development in cutting- edge technologies, telecoms, e-business, software & semiconductor development, ship building, forestry, bio-technology, industrial design, and logistics. This is the place for international logistics centers, business academics partnerships, expertise & innovations.

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So, Finland is top most leading European country which utilizing or producing latest telecommunication technologies. Finland’s telecommunication market is well developed in Europe and overall world market. Almost we all see the result of Finland’s telecommunications like we all have telephone in our house, cell phones, and the network data transmission is 100 % fastest. So, as previously defined the Finnish telecommunication market is one of the most liberalized in Europe.

Suggestions:

Suggestions regarding to the HRP issues which are created in both country are that the hr department of telecom sector have to be aware about the employee’s need and try to developed the level of work, the program which they held for the employees should be increase and try to involve them in management.

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