Eijmms Vol 1 Issue 2 November 2011 Complete

ISSN: 2249-8834

Z I R A F EXCEL International Journal Of Multidisciplinary Management Studies

November 2011 - Volume : 1 - Issue : 3

A Research Publication of

Vision : Sharing Research for Better World EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ EXCEL INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY MANAGEMENT STUDIES (EIJMMS) VOL.1 - ISSUE 2; NOVEMBER 2011

S.NO. CONTENTS PAGE SEMI-STRONG FORM OF PRICING EFFICIENCY OF INDIAN STOCK MARKET – AN EMPIRICAL TEST IN THE CONTEXT OF STOCK-SPLIT ANNOUNCEMENTS 1 1-13

PRITHUL CHAKRABORTY LINKAGE BETWEEN ORGANIZATION CULTURE AND JOB SATISFACTION 2 14-28 SALILA KUMAR PATTNAIK THE EFFECT OF MARKETING EFFECTIVENESS AND EFFICIENCY ON THE MARKETING PERFORMANCE OF MEDIUM AND LARGE FINANCIAL SERVICE 3 ENTERPRISES IN ETHIOPIA 29-46

TEMESGEN BELAYNEH ZERIHUN, V. SHEKHAR MARKETING OF ORISSA HANDICRAFTS: A STUDY ON CHALLENGES & OPPORTUNITIES 4 47-63

DR MANJUSMITA DASH NUTRIENTS: PRE, POST AND DURING EXERCISE 5 64-69 DR. ARVIND MALIK IMPACT OF RBIs CREDIT POLICY AND STANDARD &POOR’s RATINGS ON BANKEX STOCKS: AN EVENT STUDY 6 70-80

DR. D. MAHESHWARA REDDY, K. V. N. PRASAD THE IMPACT OF TRAINING ON KNOWLEDGE TRANSFER IN HIGHER EDUCATION 7 81-91 DR. D. G. KULKARNI, DR. POORNIMA CHARANTIMATH, DR. KIRTI SHIVKUMAR MARKETING AUDIT- AN IMPORTANT TOOL TO DETERMINE STRENGTHS AND WEAKNESSES OF THE COMPANIES 8 92-108

ARPIT LOYA TRENDS OF SELECTED MALLS TOWARDS CONSUMERS 9 109-122 CHIRAG V. RAVAL, DR. RAJENDRA V. RAVAL, DR. PINAKIN R.SHETH INNOVATIVE APPROACH TOWARDS DELIVERING EDUCATION 10 123-132

MS. SHIKHA GUPTA

TRY ADVERTORIAL TO OVERCOME THE CHALLENGES OF COMMERCIAL CLUTTER 11 133-143 J. J. SOUNDARARAJ TRAINING TECHNIQUES IN MARUTI DRIVING SCHOOL - A TRAINEE VIEW 12 144-150 NISHA RATHORE TALENT A CRITICAL DRIVER OF CORPORATE PERFORMANCE AND COMPETITIVE ADVANTAGE 13 151-161

DR. MS. ZARTAJ KASMI ROLE OF WOMEN IN ENVIRONMENTAL CONSERVATION 14 162-167 RENU SHARMA, DR. BALJIT KAUSHIK RETAILING IN INDIA: AN ANALYTIC VIEW OF THE SUNRISE INDUSTRY

15 168-184 www.zenithresearch.org.in www.zenithresearch.org.in

DR. K. L. RATHOD

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ SEMI-STRONG FORM OF PRICING EFFICIENCY OF INDIAN STOCK MARKET – AN EMPIRICAL TEST IN THE CONTEXT OF STOCK-SPLIT ANNOUNCEMENTS

PRITHUL CHAKRABORTY*

*Professor, Centre for Management Studies, JIS College of Engineering, Kalyani, West Bengal, India.

ABSTRACT

The exponential growth of the Indian stock market provides a huge potential for its achievement of the pricing efficiency at a higher level. The present study aims to examine whether the Indian stock market is pricing efficient in its semi-strong form. Such examination is made in the context of the price reaction to the announcement of stock splits witnessed by 17 constituent stocks of S&P CNX Nifty during the period from February 2000 to January 2010 by application of the market model of the event study methodology. Although no statistically significant abnormal return is found to be generated on and around the announcement day, the cumulative average abnormal returns for most of the time intervals in the pre- and post-announcement periods are statistically significant. However, it is observed that the cumulative average abnormal returns for the shorter time intervals around the announcement day are statistically insignificant. Thus the study fails to provide any strong and consistent evidence in support of the semi-strong form of pricing efficiency of the Indian stock market.

KEYWORDS: Abnormal return, Estimation window, Event window, Pricing efficiency, Semi-strong form, Stock split. ______

I. INTRODUCTION

The basic function of a stock market, be it primary market or secondary market, is to allocate and

channelize the scarce private or domestic savings and other idle resources into the most productive investment areas of the economy in a useful and economic manner. The economic development of a country greatly depends on how effectively its stock market is able to allocate the resources in most productive investment areas (i.e., allocational efficiency of the market). One of the basic conditions to be satisfied by a stock market for being an efficient one is free flow of relevant information to all market-participants, and quick and accurate reflection of all available and relevant information in the prices of the stocks (Tinic and West,1979). In a perfectly efficient market an investor cannot reap abnormal profit by having any information, even any special information not publicly available, and thereby cannot consistently “beat” or outperform the market.

One of the important rudiments of the allocational efficiency of the stock market is its pricing efficiency. The pricing efficiency of a stock market is determined by the speed and accuracy with www.zenithresearch.org.in which all available and relevant information are incorporated in the stock prices. The condition

that current stock prices reflect all available information can be expressed as follows:

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

E (Pt+k / фt) = E (Pt+k / Pt)

where E = Expected value operator

Pt = Price of the stock at time t

Pt+k = Price of the stock at time t+k

фt = Set of information available at time t.

The above equation implies that the information contained in фt is impounded in the current stock price Pt and the information set, фt, cannot be used by the investors to earn super-normal profits. The essential criteria of pricing efficiency are: (i) easy and economical availability of information to all buyers and sellers, (ii) presence of a large number of buyers and sellers with their easy access to the market, (iii) awareness of all investors regarding the effect of available information on the current price and (iv) capability of the market to quickly assimilate the information by adjusting the stock prices up and down (Fama,1969).

The literature of capital market efficiency provide three different forms of pricing efficiency depending on the contents or coverage of the term “ available information” which are reflected in the current stock prices. These three forms are: (i) weak form of efficiency where the contents of “available information” are the information contained in the historical series of prices and trading volumes, (b) semi-strong-form of market efficiency in which case all publicly available information regarding the firms under study (e.g. fundamental data on firms’ financial performance, corporate reports, corporate announcements relating to dividend policy, stock split, right issue, etc.) are the contents of “available information” and (c) strong-form of market efficiency where “available information” include all relevant information, public as well as private or “inside”.

The form or level of efficiency of a market is significantly influenced by certain frictions (viz., transaction costs, information costs, information asymmetries and so on) that the market witnesses. Lower market frictions lead to an increase in the number of market participants, rise in trading volume and thereby enhancing the liquidity of the market which, in turn, facilitates free flow of information to all market participants and instantaneous and accurate adjustment of stock price to such information. Although perfectly strong form of market efficiency is a theoretical phenomenon, many empirical studies reveal that the developed markets can boast of having higher level of pricing efficiency than their counterparts in the emerging economies. Since the mid-1990s liberalization and globalization of Indian economy have brought about a radical reform and structural transformation in Indian stock market. This has been manifested by many events like establishment of the regulatory body SEBI, introduction of the online trading, formation of National Securities Clearing Corporation (NSCCL), setting up of National Securities Depositories Limited (NSDL) and Central Depository Services (India) Limited (CDSL) to facilitate demat trading, opening up of the market for portfolio investment by the foreign institutional investors (FIIs), entry of new institutions like merchant banks, mutual funds,

venture capital funds, etc. and greater participation of banks and financial institutions in capital www.zenithresearch.org.in

market related activities, introduction of derivatives and other innovative financial instruments in

the market, permitting Indian companies to issue GDR / ADR in European and American

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ markets and so on. All these have increased the depth and vibrancy of the Indian stock market. This is evident from a substantial rise in the market capitalization of equity shares on Indian bourses from Rs.5,07,272 crore at the end of 1995-96 to Rs.1,21,74,792 crore at the end of 2009- 10 (i.e, 24 times rise over a period of 14 years), an exponential growth in turnover from Rs.2,27,368 crore in 1995-96 to Rs.55,18,470 crore in 2009-10 (i.e., about 2327% growth over a period of 14 years), a spectacular increase in the traded value ratio ( i.e. total turnover to GDP ratio) from 39.33% in 2002-03 to 89.50% in 2009-10 and so on.

With the growing aspirations of the domestic as well as foreign investors for participating in Indian stock market, increasing rate of information flow in the market by the courtesy of information and communication technology, immense opportunities for trading in a wide range of stocks, stock indices and corresponding derivatives, wide scope is there for the Indian stock market to improve the level of its pricing efficiency and thereby stimulating the economic growth of the country. This provides a fillip to the research community to empirically examine the pricing efficiency of the Indian stock market. Although a number of empirical works have been carried out in this field, most of these have focused on the weak form of pricing efficiency of the market and relatively a smaller number of studies have come to our notice investigating the efficiency of the Indian stock market in its semi-strong form. The present study modestly attempts to empirically examine whether the Indian stock market is pricing efficient at semi- strong level in the context of the impact of the stock split announcements on the price behaviour of the related stocks. The outcome of the study may be useful to the investors and portfolio managers in formulating suitable investment strategies and risk management strategies. Moreover, the study may provide pertinent information to the market regulators and policy makers in adopting appropriate measures and policies so that the market can properly perform its role in the matter of risk transference and price discovery.

II. PLAN OF THE STUDY

The remainder of the paper is organized as follows. A brief review of the available literature on the subject is made in Section 3. Section 4 outlines the study period, constitution of the sample for data collection and the type of data. Section 5 discusses the methodology applied for accomplishing the objective of the study and Section 6 analyzes the empirical results.

Concluding remarks are provided in Section 7.

III. LITERATURE SURVEY

A wide number of studies have been conducted across the world to examine the applicability of semi-strong form of efficient market hypothesis to the stock markets of many developed as well as emerging economies in the context of different corporate events like announcements of stock split, stock dividend, right issue, financial results, etc. and also in the context of different macro economic and market-related news like announcement of monetary policy, purchase of shares by corporate insiders, foreign institutional investments in capital market and so on.

The pioneer study in this field was made by Fama, Fisher, Jensen and Roll (1969) who examined

the reaction of stock prices around the announcement date of stock splits. They found evidence www.zenithresearch.org.in of high abnormal risk adjusted stock returns prior to the announcement of stock split and no such

evidence following the split. Their study confirmed the semi-strong form of efficiency of the

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ market as the reaction of stock splits occurred quickly and, therefore, the investors were not able to earn super normal profit by purchasing stocks on the split date. This finding is endorsed by Charest (1978). The studies of Ball and Brown (1968) and Brown and Kennely (1972) based on the impact of earning announcements on price movement also provided results in conformity with the semi-strong form of efficient market hypothesis. Ormos (2002) made an event study on the price movement of the Hungarian capital market for the period 1991-2000 to examine whether the market was efficient in strong form or semi-strong form and got the results in support of the latter one. Hadi (2006) empirically investigated the level of efficiency of the Jordanian market around the release of accounting information on profitability, liquidity and solvency of 15 industrial firms listed on the Jordon stock exchange and reported that the accounting numbers had significant impact on stock returns and on release of the accounting information the market reacted with mixed signals. The work of Asbell and Bacon (2000) assessed the speed with which stock prices reacted to the news of insider purchases and the investors’ ability to earn abnormal return by acting on such news on and around the announcement date. Applying the standard event study on the risk adjusted returns of 25 stocks traded on New York Stock Exchange and NASDAQ, the work failed to prove the market efficiency at semi-strong level as the risk adjusted price returns of the sample stocks were found to be significantly and positively affected around the insider purchase date and thus providing the investors with a scope of earning above normal returns. Foster and Vickrey (1978), Woolridge (1983), Grinblatt et al. (1984), Lakonishok and Vermaelen (1986), Abeyratana, et al. (1993), etc. reported considerable positive abnormal returns around the announcement dates of stock dividends which are inconsistent with the semi-strong form of market efficiency.

We come across a few studies made in the context of the Indian stock market. Gupta (2003) examined the semi-strong form of efficiency of Indian stock market in the event of the announcement of bonus issues of 145 stocks during the period from 1995 to 2000 and found evidence in favour of semi-strong form of pricing efficiency. Analyzing the stock price data of 43 IT companies announcing stock splits during the financial years 2000-01 to 2006-07, Raja, et al. (2009) found that the market effectively absorbed the information content of the stock split announcements before the announcement days. But in the post-announcement period the market was not able to fully capture such information immediately and thereby enabling the investors to make abnormal returns. So they concluded that the market in respect of IT companies was not

perfectly pricing efficient in its semi-strong form. Applying Karl-Pearson’s product moment correlation coefficient and linear regression analysis on the monthly averages of BSE Sensex and NSE Nifty over the period from 01-08-2000 to 30-04-2010, Khan and Sana (2010) found that with every moment in the FIIs’ investments there was an instant reaction over the BSE and NSE allowing no scope to the investors to outperform the market and hence they concluded that the FIIs’ investments had significant role in achieving semi-strong form of efficiency of the Indian capital market. Agrawal (2007) investigated whether monetary policy announcements contained any informational value to the stock market in achieving pricing efficiency in the semi-strong form by conducting event study on 50 constituent stocks of CNX Nifty index over the period from 01-01-2006 to 31-08-2007. The study documented that the impact of the announcement on the stock price on the event day was not consistently significant because

sometimes such announcements had already been discounted by the market in advance. However www.zenithresearch.org.in www.zenithresearch.org.in

both in the pre- and post-announcement periods, significantly positive (negative) abnormal returns were observed for good (bad) news and, therefore, the study failed to confirm the

efficiency of the Indian stock market in its semi-strong form. The studies of Rao (1994),

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Obaidullah (1992), Mishra (2005), etc. on the price reaction of the market around the announcement day of bonus issues provided strong evidence of semi-strong form of market efficiency as the information got impounded in the prices of the respective stocks within a short period. Gupta and Gupta (2007), Kaur (2010) and Ray (2011) found evidence of positive abnormal returns around the announcement of stock splits and, therefore, drew the inference that the Indian stock market was pricing inefficient in its semi-strong form as the investors could make abnormal returns around the stock split announcements.

IV. DATA AND DATA SOURCES

To conduct the study a sample has been drawn comprising 17 S&P CNX Nifty constituent stocks in respect of which stock split announcements were made on different dates in the period from February 2000 to January 2010. Selection of the stocks for constitution of the sample is based on two criteria: (i) stocks should not witness any other major corporate event surrounding the respective stock split announcement dates in order to ensure that the outcome of the study is not contaminated through other events, and (ii) the event windows (i.e., a period of 41 days comprising 20 pre-event days, the stock split announcement day called the event day and 20 post-event days) of the stocks should not overlap in calendar time in order to ensure that there is no correlation across the returns of different stocks. The daily closing prices of the sample stocks have been collected for two periods: (i) the event window and (ii) the period of 180 trading days prior to the event window (hereafter referred to as estimation window). The daily closing values of S&P CNX Nifty, the prime barometer of the National Stock Exchange (NSE) and the second prime stock index of the Indian stock market, for the aforementioned periods have also been taken into consideration in the study. The study is based on 3978 data points relating to 17 sample stocks and S&P CNX Nifty. All the aforementioned data have been collected from the website of the NSE (www.nseindia.com). The information relating to stock splits and their announcement dates have been gathered from the Capitaline database.

V. METHODOLOGY

For accomplishment of the objective of the study, the following null hypothesis (H0) and

alternative hypothesis (H1) are set:

H0: No abnormal return is generated by the stock on the stock split announcement day or event day (day 0) and in the pre- event period (day -20 to day -1) and post-event period (day +1 to day +20).

H1: Abnormal return is generated by the stock on the stock split announcement day or event day (day 0) and in the pre- event period (day -20 to day -1) and post-event period (day +1 to day +20).

Acceptance of the null hypothesis implies that the information content of the stock split announcement is impounded in the prices of the related stock so instantaneously and accurately that the investors do not find any opportunity to get any abnormal return from the stock. This

signifies the pricing efficiency of the market at its semi-strong level. The price movement in the www.zenithresearch.org.in

pre-event period has been considered in the study because sometimes information leakage may

happen prior to the announcement day of stock split. In this case, such information may be

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ discounted by the market well before the announcement day and the impact of the information is reflected in the stock prices before the event.

To test the above hypotheses the risk-adjusted event study method has been used. To appraise the event’s impact on the price movement, the event study requires a measure of abnormal return (AR). For each stock i and day t in the event window we calculate abnormal return (ARit) as follows:

ARit = Rit – E(Rit) … ….. …. (1) where Rit = actual return of stock i for day t [calculated as difference between the

values of the stock’s closing prices of day t and day t-1 or ln( Pit) – ln (Pit-1)]

E(Rit) = expected return of stock i for day t.

In financial literature a number of approaches are found to be used in calculating the expected return of a stock. The present study adopts the following risk-adjusted market model [Sharp (1964)] because this model helps reduce the variance of the abnormal return by removing the portion of the return that is related to variation in the market’s return:

Rit = αi + βiRmt + €it …. ….. …. (2) where Rit = day t return on stock i

Rmt = day t return on the market portfolio [in the present case difference between

the logarithmic values of the S&P CNX Nifty’s closing values of day t and

day t-1 or ln( Iit) – ln (Iit-1)]

€it = residual error term with zero mean and constant variance.

The parameters of the model (2), αi and βi, are estimated over the estimation period using the ordinary least squares (OLS) technique.

The expected return of stock i for day t of the event window, E (Rit), is obtained by putting the value of Rmt and the respective OLS estimates of αi and βi in the following equation:

E(Rit)= αi + βiRmt … … …. … (3)

In order to eliminate the effect of abnormal return(s) of any particular stock(s), average abnormal return for each day of the event window (AARt) is calculated as follows:

AR it AARt = i 1

N www.zenithresearch.org.in

where N = total number of stocks in the sample (17 in the present case).

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ In order to draw overall inference about the reaction of stock prices to the announcement of the event, the cumulative average abnormal return (CAAR) is calculated over a time interval (k1, k2) as follows:

k 2

CAAR(k1,k2) = AAR t t k1

where -20 ≤ k1 < k2 ≤ +20

Following Asquith (1983), the t-statistic for AARt as given below is used for testing the null hypothesis:

AAR t = t S.E.

(AR AAR )2 where S.E. = Standard error = it t N 1

The following t-statistic as recommended by Campbell, Lo and MacKinlay is considered for finding out the statistical significance of cumulative average abnormal return:

CAAR t = (k1,k 2) S.E.

N 2 i,(k1,k 2) where S.E. = Standard error = i 1 N 2

2 i,(k1,k 2) = variance of the abnormal returns of stock i for (k1, k2) period

N = number of stocks in the sample

If the calculated value t-statistic of AARt ( CAAR(K1,K2) ) exceeds the critical value of t at a chosen level of significance (α = 1% or 5%) and for (N-1) i.e., 16 degree of freedom, the null hypothesis is rejected denoting statistically significant average abnormal return (cumulative average abnormal return) being generated by the stocks on / around the event day and hence pricing inefficiency of the market in its semi-strong form.

VI. EMPIRICAL RESULTS

Table 1 depicts the average abnormal return (AAR) for each day of the event window for the overall sample and the corresponding computed values of the t-statistic. It is observed that the

AARs of almost all days of the event window are very close to zero. In the pre-event period the www.zenithresearch.org.in

AARs range from the lowest value of -0.0067 on day -20 to the highest value of 0.0199 on day -

3. On the announcement day itself (day 0) the AAR is -0.0060 and in the post-event period the

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ AARs range from the lowest value of -0.0410 on day 10 to the highest one of 0.0095 on day 9. The computed t-values of all AARs are lower than 2.58, the critical value of t-statistic at 1% level of significance and for 16 degree of freedom and also lower than 1.75, the critical t- value at 5% level of significance and for the same degree of freedom. This implies statistically insignificant average abnormal returns being generated by the sample stocks in the event window and hence the acceptance of the null hypothesis (H0: no abnormal return is generated by the stocks on the event day and in the pre- and post-event periods). In other words, the information content of the stock-split announcement is so quickly impounded in the daily prices of the stocks in the event window that no scope is there to earn abnormal returns from the stocks. Even on the event day (Day 0) also no evidence of significant price reaction to the announcement of stock split is found. This is in conformity with the semi-strong form of pricing efficiency of the market.

TABLE 1: AVERAGE ABNORMAL RETURNS (AARt) OF EVENT WIDOW AND

COMPUTED T - VALUES

Day AARt t-value Day AARt t-value

-20 -0.0067 -0.413 1 0.0064 0.271

-19 0.0050 0.319 2 0.0028 0.062

-18 -0.0050 -0.193 3 0.0025 0.065

-17 0.0064 0.219 4 -0.0056 -0.219

-16 0.0019 0.071 5 -0.0008 -0.034

-15 0.0148 0.271 6 0.0011 0.039

-14 0.0071 0.265 7 0.0049 0.199

-13 -0.0032 -0.174 8 -0.0078 -0.319

-12 0.0057 0.284 9 0.0095 0.289

-11 0.0003 0.019 10 -0.0410 -0.254

-10 0.0060 0.198 11 -0.0002 -0.007

-9 -0.0021 -0.066 12 -0.0336 -0.315

-8 0.0055 0.206 13 0.0005 0.015

-7 -0.0002 -0.008 14 0.0021 0.093 www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ -6 0.0078 0.185 15 0.0060 0.229

-5 -0.0016 -0.064 16 -0.0058 -0.158

-4 -0.0041 -0.130 17 -0.0272 -0.339

-3 0.0199 0.508 18 -0.0103 -0.270

-2 0.0081 0.224 19 -0.0169 -0.492

-1 0.0144 0.420 20 -0.0056 -0.373

0 -0.0060 -0.172

The graphical presentation of the above AARs (Figure 1) also shows that the AARs are not significantly different from zero in almost all days of the event window (day -20 to day +20).

Figure 1: Daily Average Abnormal Return (AAR) in Event Window

0.03

0.02

0.01

AAR -0.01

-0.02

-0.03

-0.04

-0.05

Days

Sometimes the reaction of the stock prices to the announcement of an event is not prominently reflected in the behaviour of AAR of a specific day. The real impact of any event is realized by the investors through accumulated abnormal returns of a time interval before, after and around the event day. Therefore, we consider cumulative average abnormal returns (CAARs) www.zenithresearch.org.in

corresponding to certain time intervals within the event window as presented in Table 2.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

TABLE 2: CUMULATIVE AVERAGE ABNORMAL RETURNS (CAART) OF CERTAIN TIME INTERVALS AND COMPUTED T - VALUES

Time Interval CAAR t-value

Day -20 to day -1 (-20,-1) 0.0801 10.9468*

Day -15 to day -1 (-15, -1) 0.0785 10.0655*

Day -10 to day -1 (-10, -1) 0.0538 6.8151*

Day -5 to day -1 (-5, -1) 0.0368 4.7915*

Day 1 to day 5 (1, 5) 0.0053 0.7169

Day 1 to day 10 (1, 10) -0.0281 -1.9334**

Day 1 to day 15 (1, 15) -0.0533 -3.7792*

Day 1 to day 20 (1, 20) -0.1192 -8.9200*

Day -5 to day 5 (-5, 5) 0.0360 4.4111*

Day -10 to day 10 (-10, 10) 0.0198 1.7076

Day -15 to day 15 (-15, 15) 0.0193 1.7072

Day -20 to day 20 (-20, 20) -0.0451 -4.1999*

* Significant at 1% level of significance.

** Significant at 5% level of significance.

It appears from Table 2 that in the post-event period the null hypothesis is accepted in the shortest time interval (1, 5) only because statistically insignificant CAAR is found in that period. The same picture is found in two time intervals (-10, 10) and (-15, 15) surrounding the event day. This indicates quick impounding of the information content of stock split announcement in the prices in those periods which supports semi-strong form of pricing efficiency. However, in all time intervals in the pre-event period and in the time interval (-5, 5) around the event day, significantly positive CAARs are found to be generated. This might be due to the fact that on leakage of the stock split information prior to the announcement day, exuberance grows among the informed investors to buy such stock in consequence of which its prices rise abnormally leading to significant abnormal returns. It also reveals that the market is slow in impounding the information content of the stock split announcement in the prices of the stock. The CAARs of the longer time intervals (1, 15) and (1, 20) in the post-event period are statistically significant but negative. This may be due to the correction process of the over-reacting investors. Thus the www.zenithresearch.org.in findings based on CAARs fail to provide any strong evidence in support of the semi-strong form

of pricing efficiency of the market although in the shorter time intervals around the event day

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ and in the post-event time interval closest to the event day we find the prices to follow semi- strong form of efficient market hypothesis.

VII. CONCLUSION

The paper attempts to examine the semi-strong form of pricing efficiency of the Indian stock market in relation to the impact of the stock split announcements on the price behaviour of the related stocks using a sample of 17 constituent stocks of S&P CNX Nifty that witnessed stock split announcements at different times in the period from February 2000 to January 2010. The market model of event study methodology is applied to appraise the returns of the sample stocks in the event window of 41 days. The analysis based on the average abnormal returns of the stocks clearly reveals that no statistically significant abnormal return is created on and around the stock split announcement day. This entices us to support the semi-strong form of pricing efficiency of the market. But while considering the cumulative average abnormal returns for certain time intervals in the event window, we find some inconsistency in the results. The cumulative average abnormal returns in the shortest time interval (day 1 to day 5) in the post- event period and in two intervals around the event day viz., (day -10 to day 10) and (day -15 to day 15) are found to be statistically insignificant providing no scope to the investors to consistently outperform the market. This evidences the semi-strong form of pricing efficiency of the market. But a doubt may arise about the pervasiveness of such pricing efficiency when all the time intervals of the pre-event period are found to generate statistically significant and positive cumulative average abnormal returns. Perhaps this is due to significant upward movement in prices caused by the buying pressure from the exuberant investors on leakage of the stock split information prior to the announcement day and lack of speed in incorporating the information in the prices in the pre-event period. This, of course, is not in compliance with the semi-strong form of efficient market hypothesis. Further, the statistically significant and negative cumulative average abnormal returns in most of the time intervals in the post-event period indicate delay in impounding the information content of stock split announcement in the prices and the correction process of the over-reacting investors and hence pricing inefficiency of the market. Thus unlike the works of Gupta (2003), Raja, et al. (2009), etc. and like the works of Gupta and Gupta (2007), Kaur (2010), etc. our study fails to arrive at a full-proof result regarding the pricing efficiency of the Indian stock market in its semi-strong form. It is true that more authoritative

results could have been obtained, had the study been based on higher size of sample. However, it may be suggested that the market regulators, stock exchange authority and the policy makers should take all possible measures for identifying and removing the snags and lacuna in the regulatory framework, micro structure and other operational aspects of the market for improving transparency in trading activities and removing informational asymmetry and other market frictions which are the impediments on the way of achieving pricing efficiency of the stock market.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 2. Agrawal, G. (2007), “Monetary Policy Announcements and Stock Price Behavior: Empirical Evidence from CNX Nifty”, Decision, Vol.34, No.2, Pp.133-153.

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Capital Market”, International Journals of Trade, Economics and Finance, Vol. 1, No.4, www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ LINKAGE BETWEEN ORGANIZATION CULTURE AND JOB SATISFACTION

SALILA KUMAR PATTNAIK*

*Doctoral Scholar, HR & OB, School of Management, KIIT University, Bhubaneswar.

ABSTRACT

This paper presents an empirical investigation on the linkage between organization culture and job satisfaction within Indian software organizations. Survey data was obtained from six Indian Software companies out of which three are larger and three are smaller organizations. A scale on organizational culture was developed with Cronbach alpha of 0.819. Univariate and multivariate statistical methods were used for data analysis and interpretation. The study shows that attributes organizational culture, work inspiration, tolerance to employee mistake and employee relationship has strong positive predictors of job satisfaction. The research brought an interesting finding that smaller organization employees are more satisfied with its organizational culture as well as have better job satisfaction level with respect to the larger software firms.

KEYWORDS: Competitive Advantage, Job Satisfaction, Organizational Culture, Work Inspiration. ______

1. INTRODUCTION

Past researches have shown supporting evidence about the relationship between organizational culture and job satisfaction (Hellriegel & Slocum, 1974; Schneider & Snyder, 1975; Field & Abelson, 1982; Kerego & Mthupha, 1997). Kerego & Mthupha (1997) views job satisfaction as the evaluation of the organizational context, while organizational climate provides a description of the work context and defined job satisfaction as the feeling of employees about their job. Hutcheson (1996) on the other hand referred to it is the difference between the outcomes, which a person actually receives and those that he expects to receive. Job satisfaction is thus related to job characteristics and people will evaluate their satisfaction level according to what they perceive as being important and meaningful to them (Sempanesa et al, 2002).

Organizational culture is an integral part of any organization. The concept of organizational culture first emerged in the 1970s and 1980s (e.g., Hofstede, 1981; Ouchi & Price, 1993; Pettigrew, 1979; Schwartz & Davis, 1981), and soon became one of the most influential concepts in management research and practice (Crane, 1995; Jarnagin & Slocum, 2007). Culture theorists have suggested a variety of definitions, ranging from notions of accepted behavioral rules, norms and rituals (Trice & Beyer, 1984), to shared values, ideologies and beliefs (Schwartz & Davis, 1981), and at an underlying level, shared patterns of meaning or understanding (Louis, 1985;

Smircich, 1983). As stated by Schein (2005), culture is the most difficult organizational attribute www.zenithresearch.org.in to change, outlasting organizational products, services, founders and leadership and all other

physical attributes of the organization. In their study of 200 companies, Kotter and Heskett

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ (1992) concluded that corporate culture or organization culture can have a significant impact on a firm‟s or organization‟s long term economic performance.

According to NASSCOM (2009-10), the Indian Software industry will witness a healthy growth in 2011, led by growth in the core markets and supplemented by significant contributions from emerging markets. The Indian IT-BPO Industry is expected to exceed USD 70 billion in FY‟11. The improving demand scenario has led to increased hiring and therefore employment grew by almost 9% in a demand constrained environment. The industry headcount addition is expected to double this year to touch 200,000 new employees, leading to 2.5 million direct employments. Poised to become a US$ 225 billion industry by 2020, the Indian information technology industry has played a key role in putting India on the global map (IBEF, 2011). Therefore, the IT organization plays a crucial role on the country‟s economical growth where the deliveries are made by it‟s human resources. Kennedy (2003) emphasized that employee efficiency as a key factor for the success of organizations and it is influenced by several organizational factors. Conceptual models have suggested that there is relationship between organization culture and organization performance (Ogbonna & Harris, 2000; Scholz, 1987). India has been referred to as the „electronic housekeeper‟ of the world (Budhwar et al, 2006). Although this sector is increasing in economic significance, it continues to be neglected in research settings especially in the field of organizational culture and job satisfaction. Therefore, in the current research the focus was to study the linkage between organization culture and job satisfaction within Indian software organizations.

2. ORGANIZATIONAL CULTURE

The notion of organizational culture is rooted in cultural anthropology, psychology, and sociology. Although each of this discipline is concerned with human behavior and nature, there are few commonly accepted theories among them (Oparanma, 2010). One of the most important building blocks for a highly successful organization and an extraordinary workplace is „organizational culture‟.

Hofstede (1980) advanced the most widely used model of cultural differences in the organizations literature. Hofstede argues that it is possible to gain considerable insight into organized behavior across cultures based on the four dimensions but latter added one more dimension (Hofstede, 1991b; Hofstede & Bond 1984; Hofstede & Bond 1988) and those five dimensions are Power Distance, Uncertainty Avoidance, Individualism-Collectivism, Masculinity-Femininity, Long-term vs. Short-term Orientation. Fons Trompenaars (Trompenaars, 1993; Trompenaars & Hampden-Turner, 1998) presented a model of culture based on his study of Shell and other managers over a ten-year period. His model is based on the early work of Harvard sociologists Parsons and Shils (1951) and focuses on variations in both values and personal relationships across cultures. He proposed seven dimensions of organization culture namely Universalism – Particularism, Individualism-Collectivism, Specific-Diffuse, Neutral-Affective, Achievement-Ascription, Time Perspective. Relationship with Environemtn. The first five dimensions focus on relationships among people, while the last two focus on time

management and society‟s relationship with nature. Schwartz et al, (1992, 1994) asserted that the www.zenithresearch.org.in

essential distinction between societal values is the motivational goals they express and identified

ten universal human values that reflect needs, social motives, and social institutional demands

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ (Kagitcibasi, 1997). These values are purportedly found in all cultures and represent universal needs of human existence. The human values identified are: power, achievement, hedonism, stimulation, self-direction, universalism, benevolence, tradition, conformity, and security. Organizational culture emerges from some common assumptions about the organization, which the members share as a result of their experiences in that organization. Cameron and Quinn (1999) have mentioned that the most important competitive advantage of a company is its organizational culture. If an organization has a strong culture with a well integrated and effect set of values, beliefs and behavior, it normally demonstrates a high level of corporate performance (Schraeder & Self, 2003).

Despite the variety of interpretations and cultural dimensions, a number of common themes and similarities can be identified in organizational culture research (Parker & Bradley, 2000). Concepts used to identify and define organizational culture tend to overlap between studies; consequently, several scholars have attempted to develop frameworks to categorize important dimensions and to provide a conceptual foundation for the study of organizational culture. Focusing on building and sustaining an organizational culture is one way of showing that people are the organization‟s most valuable asset.

3 JOB SATISFACTION

Locke (1976) defines job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of one‟s job or job experiences. Job satisfaction is a general attitude that employees have towards their jobs, and is directly tied to individual needs including challenging work, equitable rewards and a supportive work environment and colleagues (Ostroff, 1992). Schneider and Snyder (1975) on the other hand defined job satisfaction as a personal evaluation of conditions present in the job, or outcomes that arise as a result of having a job. Kerego and Mthupha (1997) on the other hand viewed working conditions like, clear staffing policy, clear channels of communication, staff participation in decision making, security and good governance as having adverse effects on job satisfaction.

In a study by Amos and Weathington (2008), it was found that the perceived congruence of employee organizational values or culture by employees is positively associated with satisfaction with the job and organization as a whole and employee commitment to the organization. Thus an organization needs an innovative and group-oriented culture which promotes employee job satisfaction (Lee and Chang 2008). Job satisfaction is one of the critical factor for an organization to improve retention and thus to achieve competitive advantage.

4. RESEARCH DESIGN AND METHODOLOGY

The present study intended to find out the linkage between organizational culture and job satisfaction by exploration of the factors of the organizational culture and then examined the impact of those factors on the attribute job satisfaction. First of all exploratory research was conducted for the basic understanding of the fact followed by a focus group discussion. The

focus groups culminated in the generation of 21 potential scale items pertaining to organizational www.zenithresearch.org.in

culture. These items were then edited to ensure wording was as precise as possible (Churchill,

1979) and subsequent procedure: data collection and scale purification.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

In this study job satisfaction was considered as the consequences of organizational culture and not a component of organizational culture.

There is little doubt that hypotheses are important and indispensable tools of scientific research (Kerlinger & Lee, 1985). Based on the literature review and focus group interview the following hypotheses were developed for statistical analysis.

H1: Employer caring about employees and their family has significant impact on the level of job satisfaction. H2: There is no difference in the level of organization culture, job satisfaction between larger and smaller companies. H3: Organizational culture has significant impact on job satisfaction.

Then moved to the next step to test the hypotheses, which means conclusive research was conducted. Among two types of conclusive research, descriptive research was chosen by which the degree to which the variables are associated were determined and from descriptive research quantitative research design was chosen to carry out the study. From the methods of descriptive research the present study was administered through survey methods.

4.1 Sampling Size and Design

Sampling is the selection of a fraction of the total number of unites of interest to decision makers for the ultimate purpose of being able to draw general conclusions about the entire body of units (Parasuraman et al. 2004). Therefore, six Indian IT organizations were selected for the study. Three of these organizations selected are from India‟s top 20 IT organization as per NASSCOM release of top 20 IT software and services exporters (NASSCOM, 2010). The rest of the three organizations are smaller organizations with employee strength of less than four hundred. Questionnaires were sent to 300 employees of these organizations and 187 responded with a response rate of 62.33 percent. Distribution of sample demographics is presented in table-1 through table-4. Due to the confidentiality of the organization and respondents, the identities of these organizations are not disclosed in the current paper.

TABLE-1: GENDER

Category Frequency Percent

Male 132 70.6

Female 55 29.4

Total 187 100.0 www.zenithresearch.org.in www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

TABLE-2: AGE

Frequency Percent 84 20 – 25 Years 44.9

54 26 – 30 Years 28.9

34 31 – 35 Years 18.2

11 36 -40 Years 5.9

4 41 and Older 2.1

187 Total 100.0

TABLE-3: DESIGNATION

Frequency Percent

Developer 101 54.0

Analyst 24 12.8

Tech Leaders 31 16.6

Project Leaders 11 5.9

Project Manager 20 10.7

Total 187 100.0

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

TABLE-4: EDUCATION

Frequency Percent

BE/B.Tech 131 70.1

MCA 24 12.8

M.E/ M.Tech 13 7.0

MBA 2 1.1

Others 17 9.1

Total 187 100.0

4.2 SCALING METHOD

Examination of past scales revealed no consensus regarding what constitutes organization culture. Based on the focus group discussion questionnaire was developed. The questionnaire consists of a series of statements, where the employees of the six IT organizations were requested to provide answers in the form of agreement or disagreement to express their attitude towards the culture of their organization. Likert scaling was used with a range from 1 to 5 point scaling because the research was based on five dimensions which are strongly disagree, disagree, neutral, agree and strongly agree. Demographic details were also part of the questionnaire. In case of gender we used nominal scaling.

4.3 RELIABILITY AND VALIDITY

Reliability of the questionnaire was validated with computation of Cronbach alpha (Cronbach, 1951). For all 21 items, Cronbach alpha was 0.819. According to Hair et al. (2007), this coefficient (0.819) indicates good reliability as it exceeds minimum acceptance level of 0.7. Further, Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy has proven good (0.762) which proves the construct validity. Face and content validity was judged through internal check and discussion with the experts. Exploratory factor analysis was carried out through SPSS version 15 to purify and reduce the data into meaningful form with principal component analysis along with orthogonal rotation procedure of Varimax for summarizing the original information with minimum factors and optimal coverage. As the study was explorative in nature the statements with Eigen values less than 1.0 were ignored for the subsequent analysis (Bagozzi &

Phillips, 1991). www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 5. RESULT

5.1 HYPOTHESIS ON CARING EMPLOYER AND JOB SATISFACTION

Paired sample T- test was carried out between employer caring about the employee and family against job satisfaction. The outputs are presented in table-5.

TABLE-5: PAIRED SAMPLES T-TEST BETWEEN CARING EMPLOYER AND JOB SATISFACTION Paired Differences t df Sig. (2- tailed) Mean Std. Std. Error 95% Confidence Deviation Mean Interval of the Difference Lower Upper

Pair This company -.123 1.169 .085 -.291 .045 -1.43 186 .152 1 Cares not only me but also my family. - I am satisfied with my current job.

The P value is appearing 0.152 which is greater than 0.05. Hence, the hypothesis (H1) „Employer caring about employees and their family has significant impact on the level of job satisfaction‟ has been accepted.

5.2 HYPOTHESIS ON ORGANIZATION CULTURE AND JOB SATISFACTION BETWEEN LARGER AND SMALLER ORGANIZATIONS

Independent T-test was done for organizational culture with grouping of large and small organization and the outputs are presented in table-6.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

TABLE-6: INDEPENDENT T-TEST FOR ORGANIZATION CULTURE BY GROUPING SIZE OF ORGANIZATION Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference Sig. (2- Mean Std. Error F Sig. T Df tailed) Difference Difference Lower Upper I am very Equal 2.116 .147 - 185 .005 -.3976 .1409 -.6757 -.1196 happy variances 2.82 with the assumed 1 culture of Equal - 183.8 .005 -.3976 .1409 -.6755 -.1197 the variances 2.82 86 company I not 3 work for. assumed

From the above table we can see that for Levene‟s test, P-value is 0.147 (P value is greater than 0.05), so we can conclude that we have equal variance and we look at the Equal variances assumed row. The “t-test for Equality of Means” Sig. (2-tailed) score is 0.005 (which is less than 0.05). Therefore, there is a significant difference on the mean of organizational culture between larger and smaller organization.

Independent T-test was made for job satisfaction with grouping of large and small organizations and the outputs are presented in table-7.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

TABLE-7: INDEPENDENT T-TEST FOR JOB SATISFACTION BY GROUPING SIZE OF ORGANIZATION Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference Sig. (2- Mean Std. Error F Sig. T Df tailed) Difference Difference Lower Upper I am Equal 5.593 .019 - 185 .006 -.3548 .1287 -.6088 -.1009 satisfied variances 2.757 with my assumed current Equal - 184.977 .006 -.3548 .1287 -.6088 -.1009 job. variances 2.757

not assumed

From table-7 we can see that for Levene‟s test, P-value is 0.019 (P value is less than 0.05), so we can conclude that we don‟t have equal variance and we look at the Equal variances not assumed row. The “t-test for Equality of Means” Sig. (2-tailed) score is 0.006 (which is less than 0.05). Therefore, there is a significant difference in the mean of the level job satisfaction between larger and smaller organization. Thus, we accept the hypothesis (H2 ) that there is difference in organization culture, job satisfaction between larger and smaller organizations.

5.3 HYPOTHESIS ON ORGANIZATIONAL CULTURE AND JOB SATISFACTION.

Exploratory factor analysis was carried out through SPSS and a subsequent regression analysis was made. Based on the result of Varimax the factor loading of the component is presented in table-8 which shows that all the variables are grouped into five factors. Though F3 and F5 has three variables loaded to each of them still these two factors were considered for the present study due to the high relevance of these variables identified during literature review and focus group discussion.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

TABLE-8: ROTATED COMPONENT MATRIX Component 1 2 3 4 5 Factor-1 (F1) This company inspires me to do my best work everyday. .972 .098 .073 .008 -.012 I am very happy with the culture of the company I work for. .971 .086 .070 .053 .002 My company does not take seriously about employees making .958 .092 .042 .022 -.016 mistakes on their work. My colleagues are more task oriented than relationship .940 .061 .094 .058 .085 oriented. Factor-2 (F2) Relationship between supervisor and subordinate is often like .108 .833 -.046 .045 .035 father and child. My organization rewards me for my loyalty. .060 .715 .329 .165 .107 I see strong evidence of effective leadership from senior .079 .597 .498 -.112 -.151 leaders. All employees are treated equally here. .252 .523 .310 .096 .277 I am sure I will be working for this company 5 years from .257 .504 .313 -.045 .490 now. My organization has flexi-hour working culture. .125 -.484 -.354 .206 -.131 I get a lot of independence in carrying out my duties. .184 .366 .328 .251 .066 Factor-3 (F3) My future career opportunities here look good. .159 .057 .767 .238 .205

In my organization roles and responsibilities are clearly .062 .213 .763 -.087 .052 defined. My company rewards me whenever I do good work. .016 .241 .712 .212 .012 Factor-4 (F4) This company is for ambitious persons. -.007 .138 .061 .740 -.086 This company cares not only me but also my family. -.030 .346 .042 .662 .327 My Boss involves me adequately in decisions that affect my .142 -.149 -.038 .642 -.329 work. I would not think to work in any other organization in this .018 -.205 .316 .596 .224

industry. www.zenithresearch.org.in

Factor-5 (F5)

My company is not too hierarchical. .158 .264 .076 .239 -.680

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ My organization has good Corporate Social Responsibility .088 .291 .005 .262 .674 (CSR) record. The organization I work for is fair to its employees. .072 .201 .337 -.011 .639

The result of the factor analysis was carried forward by which the five independent variables (F1, F2, F3, F4, F5) were used to predict the dependent variable (Over all job satisfaction). Result of regression analysis is presented in Table-9 and results of model fit is presented in Table-10 .The factors included in the multiple regression model are capable of explaining 92.1% variation in the overall job satisfaction. This indicates that the regression model is statistically significant explaining the linkage between job satisfaction and organizational culture.

The regression equation (Table-9) can be presented as;

Job Satisfaction = 3.824 + 0.846(F1) + 0.067 (F2) + 0.078(F3) + 0.062 (F4) + 0.088 (F5) Factor-1 having the attributes; company work inspiration for employee to do best of his/her work, over all culture of the organization, company not over reacting about employees mistake, and a relationship oriented colleagues has high impact on job satisfaction.

Thus the third hypothesis (H3), „organizational culture has significant impact on job satisfaction‟ has been accepted.

TABLE-9: REGRESSION COEFFICIENTS Unstandardized Standardized Coefficients Coefficients Model B Std. Error Beta T Sig. 1 (Constant) 3.824 .019 204.745 .000 REGR factor score 1 for analysis 1 .846 .019 .945 45.199 .000 REGR factor score 2 for analysis 1 .067 .019 .075 3.603 .000 REGR factor score 3 for analysis 1 .078 .019 .088 4.187 .000

REGR factor score 4 for analysis 1 .062 .019 .069 3.289 .001 REGR factor score 5 for analysis 1 .088 .019 .099 4.712 .000 a. Dependent Variable: I am satisfied with my current job

TABLE-10: COEFFICIENT OF DETERMINATION

Model R R Square Adjusted R Square Std. Error of the Estimate 1 .960 .921 .919 .255

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 6. DISCUSSION AND CONCLUSION

In helping to understand the organizational culture attributes that has significant effect on the prediction of the level of job satisfaction, in the Indian origin software organization, the current study has derived several important implications for research and practice.

During regression analysis it was found that four out of the twenty one attributes of the organizational culture set, specifically over all organizational culture, organizational work inspiration to its employee to perform the best of their work, tolerance to employee mistake and relationship among employees has strong positive predictors of job satisfaction. The T-test result confirmed that in order to have a better organizational culture, the job satisfaction of employees needs to be high. Thus the culture of the organization can also be predicted with the level of job satisfaction of the employees of that organization. There is also a significant impact on job satisfaction if the organization is caring about not only its employee but also the family of the employee.

One interesting finding of the research was that smaller organizations were shown better organizational culture and level of job satisfaction with respect to the larger one. Though the larger organizations are doing extremely well in terms of revenue growth yet the culture and job satisfaction stands low with respect to smaller organization. Therefore, further research on the linkage between corporate performance and organization culture of Indian IT firms seem to be useful.

The samples collected for the present study was small. A more accuracy can be attained with large sample size by extending the research to more Indian IT organization. Applicability of the current research results needs further analysis and consideration. Further research is needed to study the level of job satisfaction in companies with different types of organizational culture, especially the market type as this is the most widespread at present.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ THE EFFECT OF MARKETING EFFECTIVENESS AND EFFICIENCY ON THE MARKETING PERFORMANCE OF MEDIUM AND LARGE FINANCIAL SERVICE ENTERPRISES IN ETHIOPIA

TEMESGEN BELAYNEH ZERIHUN*; V. SHEKHAR**

*Ph.D Research Scholar, Osmania University, Department of Business Management, Hyderabad, Andhra Pradesh, India. *Principal, UCC & Business Management, Osmania University, Department of Business Management Hyderabad, Andhra Paradesh, India.

ABSTRACT

The purpose of this empirical study is to examine the effect of marketing effectiveness and efficiency on the marketing performance of medium and large financial service enterprises (MLFSEs) in Ethiopia. The approach of the study is analytical survey method. Based on a multi- item construct of marketing effectiveness, marketing efficiency and marketing performance, data were generated from randomly selected 200 middle and top-level managers. The generated data were analyzed by using multiple regression method. The research findings suggest that marketing effectiveness and efficiency have a positive and significant impact on the marketing performance dimensions as measured by an amalgam of six components, notably: financial, competitive, consumer behavior, consumer intermediate, direct customer, and innovative measures. The findings have also shown that although marketing effectiveness and efficiency were found to be a significant predictor of marketing performance, the results further indicate that the strength of a particular marketing effectiveness and efficiency vary according to the specific marketing performance dimensions where marketing effectiveness is the strongest predictor vis-à-vis to efficiency. Focusing on effectiveness and neglecting efficiency may result in an unprofitable growth in the Ethiopian financial service enterprises. Finally, conclusions and managerial implications of the findings are presented along with future research directions.

KEYWORDS: Financial services, Marketing effectiveness, Marketing efficiency, Marketing performance. ______

INTRODUCTION

Marketing is regarded as the pivotal force behind strategic planning and business operations, and, hence, as an intrinsic component of organizational efforts. Accordingly, over the last few years, the concept of marketing effectiveness has attracted increased attention among academic researchers and business practitioners (Dunn et al, 1994). The issue of marketing effectiveness is of particular importance to those associated with the management of services enterprises. In

recent years, the increasing liberalization of the services market and its gradual transition from a www.zenithresearch.org.in sellers‟ market to a buyers‟ market has had a profound impact on organizations competing in the

industry (Appiah-Adu et al, 2001).

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

The concept of marketing effectiveness and efficiency has been discussed by different authors. For instance, Drucker (1974:45) states: “Effectiveness is the foundation of success - efficiency is the minimum condition for survival after success has been achieved. Efficiency is concerned with doing things right. Effectiveness is doing the right things”. Thus, efficiency is concerned with the outcomes of business programs in relation to the resources employed in implementing them (Walker & Ruekert, 1987). More specifically, efficiency concerns the relation between the results of marketing (marketing output) to the effort and resources put into marketing (marketing input), with the aim of maximizing the former relative to the latter (Bonoma & Clark, 1988). Performance measurement is an issue of growing importance among academicians, practitioners and researchers where it remains a critical and much debated issue (Jusoh et al, 2008). Performance measurement system is important for an organization as it plays a key role in developing strategic plans, evaluating the achievement of organizational objectives, and compensating managers (Ittner & Larcker, 1998). Particularly, marketing performance measurement continues to be a large and growing concern for marketing scholars and managers alike. Academic interest in marketing performance measurement is largely based on the assumption that greater marketing accountability enhances firm performance and marketing‟s stature (O‟Sullivan et al, 2009). Given the firm‟s survival depends on its capacity to create value, and value is defined by customers (Day, 1990), marketing makes a fundamental contribution to long-term business success. Therefore, evaluating marketing performance is a key task for management (Eusebio et al, 2006). Therefore, the objective of the present study is to assess the degree of impact of marketing effectiveness and efficiency on the overall marketing performance within the financial service enterprises in Ethiopia.

REVIEW OF RELATED LITERATURE

A study of relevant literature is an essential step to get a good comprehension of what have been made in the recent times. Such reviews are the secondary sources abstracted from articles, Internet, proceedings, reports, etc or synthesized by the researcher. A review of the literature has shown the interchangeable, sometimes even conflicting use of key concepts such as marketing effectiveness, marketing efficiency, and marketing performance (Gao, 2010). Thus, discussions on these related concepts have immense value for the practitioners and managers in the field.

MARKETING EFFECTIVENESS

The competitive environment of modern day business appears to necessitate the successful implementation of marketing concepts, if a firm is to advance in its chosen market segments. Over the last few years, the concept of marketing effectiveness has attracted increased attention among academic researchers and business practitioners (Dunn et al, 1994; Ghosh et al, 1993; Lai et al, 1992; Norburn et al, 1990). The idea behind effectiveness is that any measure of performance should incorporate the objectives of the decision maker. In the organizational management literature, this is referred to as a goal-attainment view of organizational effectiveness (Lewin & Minton, 1986). Walker and Ruekert (1987) defined effectiveness as

success versus competitors, which is certainly a common goal framework in marketing www.zenithresearch.org.in

management. Drucker (1974: 45) described effectiveness as “doing the right thing,” while

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ according to Clark (2000: 7) effectiveness is defined as “the psychological distance between what was expected to result from a marketing program and results as returned.”

A business that adopts a relationship marketing orientation will improve its marketing performance (Sin et al, 2002). This implies that the marketing manger should give attention for the customer philosophy to improve the marketing profitability. In connection to this, Porter (2001) argued that Internet is the most powerful tool available today for enhancing operational effectiveness. By easing and speeding the exchange of real-time information, it enables improvements throughout the entire value chain, across almost every company and industry. He also further contend that the Internet help the organization to achieve sustainable competitive advantage by operating at a lower cost and by strategic positioning (doing things differently from competitors, in a way that delivers a unique type of value to customers). According to Kotler (1977), the marketing effectiveness of a firm entails an amalgam of five components: customer philosophy; integrated marketing organization; adequate marketing information; strategic orientation, and operational efficiency.

The researcher argues that a marketing success is often measured by marketing effectiveness, such as whether objectives are accomplished or not, but it can also be expressed in terms of achieving certain results. Therefore, marketing effectiveness affects marketing performance.

MARKETING EFFICIENCY

The efficiency of marketing has been an important area of study in marketing performance assessment. Efficiency represents the comparison of outputs from marketing to inputs of marketing, with the goal of maximizing the former relative to the latter (Bonoma & Clark, 1988). Sometimes called marketing productivity, and efficiency approach examines how best to allocate marketing activities and assets to produce the most output. Walker and Ruekert (1987:19) defined efficiency as “the amount of effort relative to outcome of a business programs in relation to the resources employed” suggesting return on investment (ROI) as a measure. Bonoma and Clark (1988) defined efficiency as the amount of effort relative to the results, but particularly stressed the „fit‟ of marketing programs with the company‟s existing marketing structures. Most simply, Drucker (1974: 45) referred to efficiency as “doing things right.” Virtually all-early research in marketing performance assessment has drawn up on the efficiency approach, measuring outputs relative to inputs (Clark, 2000). According to Zhu et al (2004), efficiency refers to increasing employee productivity, by reducing or streamlining internal processes. Therefore, from this one can deduce that marketing performance depends on marketing efficiency.

MARKETING PERFORMANCE

Marketing performance measurement continues to be a large and growing concern for marketing scholars and managers‟ alike (O‟Sullivan et al, 2009). No matter what condition an organization may be in, assessing marketing performance finds marketing management‟s day-to-day energies

mostly devoted to matters of efficiency (doing things right) and effectiveness (doing the right www.zenithresearch.org.in

thing) (Connor & Tynan, 1999). An organization‟s marketing performance success depend more

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ on effectiveness and efficiency, however, the starting point should be measurement of marketing effectiveness, for doing the wrong things efficiently is pointless. Efficiency is not a measure of success in the market place. It is rather a measure of operational excellence or productivity. It is therefore, concerning with minimizing costs and improving operational margins. On the other hand, effectiveness is linked to a company‟s ability to design a unique model of embracing business opportunities through exchange relationships. Effectiveness, therefore, is related to the company‟s own recipe to generate a sustainable growth in its surrounding business network. Gaertner and Ramnarayan (1983) argue that effectiveness is not a characteristic of organizational outputs but rather a continuous process relating the organization to its constituencies; it is negotiated rather than produced. An effective organization is one that is able to create accounts of itself and of its activities that relevant constituencies find acceptable. The accounts may be for various purposes to various audiences and for various activities.

The diagram below, thus, shows that focusing on efficiency and neglecting effectiveness would result in an ephemeral profitability. In contrast, focusing on effectiveness and neglecting efficiency may result in an unprofitable growth. Therefore, a balanced approach that aims at high efficiency and high effectiveness would require for the success of organizations and this would make organizations to “stretch” their endeavors. Effectiveness may be seen as a long term while efficiency may be seen as a short-term achievement. For instance, sales or business managers who are responsible for a particular segment of a business may act within a long-term horizon of growing their sales volume. Similarly, marketing managers responsible for a number of products appear to act within a long-term horizon of building advertising awareness and market share. When efficiency comes, it appears that mangers are primarily concerned with short-term cost cutting to meet quarterly profits and operating cash flow.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ FIG.1. EFFICIENCY VERSUS EFFECTIVENESS TRADE-OFF

Ephemeral profitability

Sustainable profitability

High

Efficiency

Low

Unprofitable growth

0 Low High

Effectiveness

The researcher believes that to be successful in the competitive and globalized marketing environment, marketing management must be effective in working with other departments and earning their respect and cooperation. Moreover, the key mangers should recognize the primacy of studying the market, distinguishing the many opportunities, selecting the best parts of the market to serve and gearing up to offer superior values to the chosen customers in terms of their needs and wants. These assure the sustainable growth of marketing performance within the organization, which in turn depend on the optimal level of marketing effectiveness and efficiency. www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Furthermore, the organization must reflect a well-defined system for developing, evaluating, testing and launching new products because they constitute the heart of the business‟s future. In today‟s market, effective marketing calls the executives to have adequate information for planning and allocating resources properly to different markets, products, territories, and marketing tools and should have a core strategy that is clear, innovative and data based. However, not all these marketing programs and plans bear fruit unless they are efficiently carried out at various levels of the organization. Thus, marketing managers should maintain optimal levels of efficiency and effectiveness that will lead the sustainable profitability and growth of the organization. After a thorough examination and careful constructing of the theoretical and empirical literatures, the researcher developed the following conceptual model for this research problem.

Marketing Efficiency

Marketing Performance

Marketing Effectiveness

Therefore, the researcher hypothesizes as:

H: There is a significant positive relationship between marketing efficiency, effectiveness and the firms‟ marketing performance.

METHODOLOGY OF THE RESEARCH

From the researcher point of view, generally there is no optimal research methodology or method. According to Yin (1994), research strategy should be chosen as a function of the research situation. Each research strategy has its own specific approaches to collect and analyze empirical data, and thus each strategy has its own advantages and disadvantages. Therefore, based on the research questions, objectives of the research, the hypotheses to be tested, and aims as well as the methodologies and methods used in the other similar studies in the field, the researcher adopted an analytical survey method.

The researcher identified the medium and large financial service enterprises as a target of population. Proportionate stratified random sampling technique was employed in selecting the

respondents of the study. This is because the study population is somewhat heterogeneous www.zenithresearch.org.in namely, banks and insurance companies (Temesgen & Shekhar, 2011). For heterogeneous

population with appropriate lists, the stratified random sampling is appropriate technique to

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ increase the sample‟s statistical efficiency and representativeness for a given sample size (Krishnaswami & Ranganatham, 2010). To determine the desired sample size, the researcher assumed 95% level of confidence, 5% level of precision and 50 % variability (maximum variability) with respect to the nature of the population being studied. Accordingly, 200 randomly selected middle and top-level managers are included based on Yeman‟s (1976) simplified formula in the study.

n = 1+ N (e) 2

Where N -the target population, n- sample size and e-level of precision

QUESTIONNAIRE DESIGN PROCEDURE

For investigating the effect of marketing effectiveness and efficiency on the marketing performance of medium and large financial service enterprises in Ethiopian (MLFSEs), a cross- section of stratified randomly selected enterprises is used in generating the intended data. The structured questionnaires are administered personally for the middle and top-level managers of the sample unit companies. To get the intended data from these managers, the researcher adopted some instruments, which are used by others with little modifications in accordance with the nature of the current study. In addition, the remaining questionnaires are developed by the researcher.

To measure the marketing effectiveness of the financial sectors, the researcher examined Kotler‟s (1977; 1997) instruments. These instruments are the best known, most frequently cited and widely used out of others (Carson‟s 1990; Hooley & Lynch‟s 1985), where it has been used principally to determine the relationship of marketing effectiveness with some other variable, (Webster, 1995). Kotler‟s (1977:72) rating instrument utilizes 15 three-point scale questions to audit the marketing effectiveness of a company through a combination of five dimensions.

The researcher, thus, used these five dimensions of marketing effectiveness measures (namely customer philosophy, operational efficiency, strategic orientation, adequate marketing information, and integrated marketing organizations) in the current study. For the five dimensions of marketing effectiveness measures, thirty-one individual scale items with a five point Likert scoring format (1= strongly disagree ; 5= strongly agree) were used. These instruments were also adopted in the study of “marketing effectiveness and business performance in the financial industry” by Appiah-Adu et al (2001) with Cronbach‟s Alpha of 0.79, 0.86, 0.81 ,0.71, and 0.70 for customer philosophy, operational efficiency, strategic orientation, marketing information, integrated marketing organization respectively.

For the performance of marketing measures, Jusoh et al (2008) contend that traditional financial measures are criticized because they are short-term rather than long-term focus, measuring the

past rather than future. Besides, they tend to be obsolete and easily manipulated by managers. www.zenithresearch.org.in

Thus, recently, Kokkinaki and Ambler (1999) have summarized marketing metrics in six

categories: financial, competitive market, consumer behavior, customer intermediate, direct

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ customer and innovativeness measures. Therefore, to overcome the shortcomings of the traditional measures, the researcher depends on the six categories of marketing performance measures developed by Kokkinaki and Ambler (1999) which are summarized as follows:

 Financial measures (as turnover, contribution margin and profit)

 Competitive market measures (as market share, advertising and promotional share)

 Consumer behavior measures (as consumer penetration, loyalty and customer gained)

 Consumer intermediate measures (as brand recognition, satisfaction and purchase intention)

 Direct costumer measures (as distribution level, profitability of intermediaries and service quality); and

 Innovativeness measures (as products launched and their revenue).

Scale for the marketing efficiency construct included in the study was not available in the literature. Therefore, the researcher developed new scale for this construct. First, the researcher independently generated a large pool of items for this construct included in the study. Care was taken to tap the domain of this construct as closely as possible. Next, items were tested for clarity and appropriateness in personally administered pre-tests with the selected sample units of middle and top-level managers, research scholars and academicians in the area. They were asked to critically evaluate the items from the standpoint of domain representativeness, items specificity and clarity of construction. Based on the detailed critique that was received, some items were eliminated, revised and others maintained to improve their specificity and precision. Therefore, these procedures helped for the development of content validity and reliability.

After all, pilot study was conducted for twenty randomly selected financial sectors to check the reliability of the whole instruments. Accordingly, Cronbach Alpha is calculated for all the constructs and found (α > 0. 90) significant value. The hypothesis is tested by using multiple regression method as follows.

RESULTS OF THE STUDY

The hypothesis (H) pertained to the effect of marketing effectiveness and efficiency on the marketing performance of medium and large financial service enterprises in Ethiopia. Marketing performance is measured by an amalgam of six dimensions, namely: financial measure, competitive measure, consumer behavior measure, consumer intermediate measure, direct customer measure and innovativeness measure. Accordingly, the multiple regression equation

was estimated and presented in table 1 through 7 by incorporating the overall and different www.zenithresearch.org.in

marketing performance dimensions as dependent variables and marketing effectiveness and

efficiency as independent variables. The following estimated regression model is applied:

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

Y= a0 +b1X1+b2X2 + e1

Where a0 is the constant, b1 and b2 are the linear coefficients of marketing effectiveness and marketing efficiency variables respectively. While Y stands for marketing performance in the financial service enterprises and e1 stands for error term. In order to apply this regression model, the auto-correlation (with Durbin-Watson) and multicollinearity (with condition Index, VIF and Tolerance level) are examined and found no problems.

The results obtain indicated that marketing effectiveness and efficiency have a significant positive impact on the overall and different marketing performance dimensions. Thus, the hypothesis has support from the findings under study. More specifically, each table is described and interpreted as follows.

TABLE 1

EFFECT OF EFFECTIVENESS AND EFFICIENCY ON MARKETING

PERFORMANCE- FINANCIAL

Un Standardized Standardized Independent Variable coefficients coefficients T- value Beta St. Error sig Constant .801 .136 5.885 .000 Marketing Effectiveness .439 .090 .477 4.854 .000 Marketing Efficiency .397 .092 .423 4.313 .000 Model Summary R R2 Adj. R2 Std. error of the Durbin Watson estimate .887 .787 .785 .32928 1.019 ANOVA Summary

Model Sum of df Mean Square F sig squares Regression 78.862 2 39.431 363.661 .000 Residual 21.360 197 .108 Total 100.222 199

Table 1 above indicates the impact of marketing effectiveness and efficiency on the financial measures of marketing performance in the financial service enterprises in Ethiopia. Accordingly, 78.5% of the variation of the dependent variable is explained by the independent variables. In addition to this, there is a significant positive relationship between marketing performance as measured by financial construct, and marketing effectiveness and efficiency.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TABLE 2

EFFECT OF EFFECTIVENESS AND EFFICIENCY ON MARKETING

PERFORMANCE- COMPETITIVE

Un Standardized Standardized Independent Variable coefficients coefficients T- value Beta St. Error sig Constant .428 .110 3.897 .000 Marketing Effectiveness .667 .073 .706 9.139 .000 Marketing Efficiency .227 .074 .236 3.057 .000 Model Summary R R2 Adj. R2 Std. error of the Durbin Watson estimate .937 .868 .867 .26553 1.006 ANOVA Summary Model Sum of df Mean Square F sig squares Regression 91.440 2 45.720 648.456 .000 Residual 13.890 197 .071 Total 105.330 199

Table 2 above indicates that to what extent the competitive marketing performance measure is influenced by the marketing effectiveness and efficiency factors in the Ethiopian financial service enterprises. Consequently, 86.8% of the total variation of the competitive dimension of marketing performance is influenced by the identified independent variables. The result also points out that the positive effect of the independent variable is found statistically significant at 0.05 levels. Of the two independent variables, the marketing effectiveness has taken up the majority influences on the competitive measure of marketing performance.

In the contemporary marketing performance measures, consumer behavior is considered as one of the important dimensions to measure marketing performance. Accordingly, the researcher tried to show the effect of marketing effectiveness and efficiency on the behavior of consumers that the financial service enterprises‟ actions to penetrate the consumer in the market and retained the customers. Consequently, it is found that there is a positive significant relationship between these identified independent variables and dependent variable. It is also statistically confirmed at 0.05 levels. Moreover, as indicated in table 3 below, 90.3% of the variation of the dependent variable is explained by the effectiveness and efficiency variables.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TABLE 3

EFFECT OF EFFECTIVENESS AND EFFICIENCY ON MARKETING

PERFORMANCE- CONSUMER BEHAVIOR

Un Standardized Standardized Independent Variable coefficients coefficients T- value Beta St. Error sig Constant .430 .093 4.610 .000 Marketing Effectiveness .571 .062 .610 9.201 .000 Marketing Efficiency .336 .063 .353 5.329 .000 Model Summary R R2 Adj. R2 Std. error of the Durbin Watson estimate .950 .903 .902 .22585 1.580 ANOVA Summary Model Sum of df Mean Square F sig squares Regression 93.395 2 46.697 915.460 .000 Residual 10.049 197 .051 Total 103.444 199

TABLE 4

EFFECT OF EFFECTIVENESS AND EFFICIENCY ON MARKETING

PERFORMANCE- CONSUMER INTERMEDIATE

Un Standardized Standardized Independent Variable coefficients coefficients T- value

Beta St. Error sig

Constant .312 .084 3.695 .000 Marketing Effectiveness .651 .056 .682 11.611 .000 Marketing Efficiency .283 .057 .291 4.966 .000 Model Summary R R2 Adj. R2 Std. error of the Durbin Watson estimate .961 .924 .923 .20407 1.298 ANOVA Summary Model Sum of df Mean Square F sig squares

Regression 99.511 2 49.756 1194.757 .000 www.zenithresearch.org.in www.zenithresearch.org.in

Residual 8.204 197 .042

Total 107.716 199

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Table 4 above indicates that marketing effectiveness and efficiency have a positive significant impact on the consumer intermediate measure. It could include the brand awareness, usage, performance as well as the enterprises‟ on time performance and commitment to meet customers‟ expectations. This means that marketing efficiency could influence the time length of providing service and effectiveness could influence the fulfillment of the customers‟ expectations. Accordingly, 92.4% of the total variation in the consumer intermediate measure is explained by marketing effectiveness and efficiency in the Ethiopian financial service enterprises. TABLE 5

EFFECT OF EFFECTIVENESS AND EFFICIENCY ON MARKETING

PERFORMANCE- DIRECT CUSTOMER

Un Standardized Standardized Independent Variable coefficients coefficients T- value Beta St. Error sig Constant .264 .103 2.563 .011 Marketing Effectiveness .680 .068 .691 9.936 .000 Marketing Efficiency .265 .070 .265 3.802 .000 Model Summary R R2 Adj. R2 Std. error of the Durbin Watson estimate .945 .893 .892 .24889 1.087 ANOVA Summary Model Sum of df Mean Square F sig squares Regression 101.867 2 50.933 821.557 .000 Residual 12.213 197 .062 Total 114.080 199

In the service-based economy, developing strategy, which can provide immediate response, quality management, services distribution management and profit shares plans among the trading partners have immense value in this competitive marketing environment. These strategic marketing performances are addressed through direct customer measurement system. Accordingly, table 5 above indicates that the level of impact of marketing effectiveness and efficiency on the direct customer measure. As a result, it is found that there is a positive impact of marketing effectiveness and efficiency on direct customer measure and found statistically significant. Moreover, 89.3% of its total variation is best explained by the exogenous variables.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TABLE 6

EFFECT OF EFFECTIVENESS AND EFFICIENCY ON MARKETING

PERFORMANCE-INNOVATIVENESS

Un Standardized Standardized Independent Variable coefficients coefficients T- value Beta St. Error sig Constant -.139 .119 -1.162 .247 Marketing Effectiveness .674 .079 .638 8.487 .000 Marketing Efficiency .333 .081 .310 4.120 .000 Model Summary R R2 Adj. R2 Std. error of the Durbin Watson estimate .935 .875 .874 .28896 .973 ANOVA Summary Model Sum of df Mean Square F sig squares Regression 115.269 2 57.635 690.234 .000 Residual 16.450 197 .084 Total 131.719 199

Innovation is one of the determinant elements of marketing performance measures. Table 6 above shows that whether marketing effectiveness and efficiency contribute for the innovative performance of marketing within the financial service enterprises. Accordingly, the result shows that marketing effectiveness and efficiency have a positive significant impact on the innovative measure of marketing performance dimensions. In addition to this, 87.5% of the total variation is explained by these identified variables and the remaining difference is attributed to the error term.

Table 7 below indicates the estimated regression equation results, which incorporated marketing effectiveness and efficiency as independent variables and overall marketing performance as dependent variable. Consequently, the regression result shows that there is a positive influence of marketing effectiveness and efficiency on the overall marketing performance in the Ethiopian financial service enterprises and found statistically significant at 0.05 levels. Moreover, 94.5% of the total variation of the overall marketing performance is explained by the independent variables.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TABLE 7

EFFECT OF EFFECTIVENESS AND EFFICIENCY ON OVERALL MARKETING

PERFORMANCE

Un Standardized Standardized Independent Variable coefficients coefficients T- value Beta St. Error sig Constant .349 .070 4.985 .000 Marketing Effectiveness .614 .047 .660 13.174 .000 Marketing Efficiency .307 .047 .324 6.476 .000 Model Summary R R2 Adj. R2 Std. error of the Durbin Watson estimate .972 .945 .944 .16195 .966 ANOVA Summary Model Sum of df Mean Square F sig squares Regression 96.350 2 48.175 1676.673 .000 Residual 5.660 197 .029 Total 102.010 199

DISCUSSIONS AND INTERPRETATIONS

In this section, the analysis and implications of the current findings and their interrelationships with previous research findings are discussed. The focus is mainly on the substantive interpretations of the results and the emergent findings.

The concept of marketing effectiveness and efficiency has been extensively discussed because of its strong association with many valuable of organizational outcomes such as stable long-term growth, enhanced consumer satisfaction, a competitive advantage, and strong marketing performance achievements. Table 1 through 7 indicates, there is a significant positive relationship between marketing effectiveness and efficiency, and marketing performance variables, which supports the hypothesis (H). Consequently, the results of this research have wider implications for academicians and practitioners in the field.

First, as the result shows in table 1, marketing effectiveness and efficiency affect marketing performance-financial measure, relatively with the same magnitude (β1 = 0.477, β2= 0.423). This implies that marketing effectiveness, which focuses on the achievement of marketing goals and programs; and marketing efficiency, which underlies on the cost reduction of marketing activities have almost an equal contribution for the performance of marketing within the financial service enterprises in Ethiopia. This is because of the fact that an organization‟s marketing performance success depend more on effectiveness and efficiency, however, the www.zenithresearch.org.in

starting point should be measurement of marketing effectiveness, for doing the wrong things

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ efficiently is pointless. Thus, the financial dimension of marketing performance in the Ethiopian financial service enterprises is almost equally affected by marketing effectiveness and efficiency.

Secondly, although marketing effectiveness and efficiency were found to be a significant predictor of marketing performance, the results further indicate that the strength of a particular marketing effectiveness and efficiency vary according to the specific marketing performance dimensions. For example, referred in table 2 and table 7, marketing effectiveness is the strongest and marketing efficiency is the least predictor of competitive measure of marketing performance (β1 = .706, β2 = .236) respectively, in particular and overall marketing effectiveness (β1 = 0.660 β2 = 0. 324), in general. Thus, it is unwise to assume that the different marketing performance dimensions (except financial measure) and overall marketing performance measure are affected in the same manner by marketing effectiveness and efficiency within the financial service enterprises in Ethiopia. These calls for the service marketers and managers to decide which components of marketing performance are most important. If consumer intermediate measure, for instance, receives priority, then marketing effectiveness and efficiency must be planned and developed that emphasizes understanding the importance of designing the firm to serve the needs and wants of the chosen market with the lowest possible cost. Thus, a balanced marketing performance growth could be attained for a given targeted marketing performance dimension. The implication of the results further reveals those tables 2 through table 7 indicate the greater impact of marketing effectiveness than marketing efficiency does on the marketing performance measures. This means that the Ethiopian financial service managers and practitioners are giving too much focus on marketing effectiveness than efficiency, which results in unprofitable growth within the financial service enterprises. More specifically, focusing on efficiency and neglecting effectiveness would result in an ephemeral profitability. In contrast, focusing on effectiveness and neglecting efficiency may result in an unprofitable growth. Thus, a balanced approach that aims at high efficiency and high effectiveness would require for the success of organizations and this would make organizations to “stretch” their endeavors. These research findings are also substantiated by different researchers in the field. For instance, Gaertner and Ramnarayan (1983) argue that effectiveness is not a characteristic of organizational outputs but rather a continuous process relating the organization to its constituencies; it is negotiated rather than produced. An effective organization is one that is able to create accounts of itself and of its activities that relevant constituencies find acceptable. Effectiveness may be seen as a long term while efficiency may be seen as a short-term achievement. For instance, sales or business managers who are responsible for a particular segment of a business may act within a long-term horizon of growing their service sales volume. Similarly, marketing managers responsible for a number of services/products appear to act within a long-term horizon of building advertising awareness and market share. When efficiency comes, it appears that mangers are primarily concerned with short-term cost cutting to meet quarterly profits and operating cash flow. Marketing managers should maintain, thus, optimal levels of efficiency and effectiveness that will lead the sustainable profitability and growth of organizations.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ CONCLUSIONS AND MANAGERIAL IMPLICATIONS Marketing effectiveness studies in different countries determined, that companies, which have high marketing effectiveness, operate better if making a comparison with competitors, which doesn„t have it. Thus, it is possible to maintain that one of the main factors which does influence on company‟s performance is effective marketing. The importance of marketing effectiveness grew in financial service companies were it is considered to be determinant factor. The measure of marketing effectiveness is an amalgam of five components. These are consumer philosophy, strategic orientation, adequate marketing information, operational efficiency, and integrated marketing organization. Whereas the efficiency of marketing is measured, with fifteen items construct, that focuses on cost and transaction related efficiencies. Furthermore, marketing performance is measured with six dimensions, namely: financial, competitive, consumer behavior, consumer intermediate, direct customer and innovative measures.

The primary purpose of this study, thus, is to determine the relationship between marketing effectiveness and efficiency, and marketing performance within the financial service enterprises in the Ethiopian context. The results of this study show that there is a strong and significant positive relationship between marketing effectiveness and efficiency, and marketing performance. These research findings also strongly support the empirical findings of other researchers in the field.

Although marketing effectiveness and efficiency were found to be a significant predictor of marketing performance, the results further indicate that the strength of marketing effectiveness and efficiency variables vary according to the specific marketing performance dimension. For example, marketing effectiveness is the strongest predictor of financial measure of marketing performance in particular and overall marketing performance, in general. Thus, it is unwise to assume that all the marketing performance dimensions are affected in the same manner by independent variables within the financial service enterprises in Ethiopia. Focusing on efficiency and neglecting effectiveness would result in an ephemeral profitability. In contrast, focusing on effectiveness and neglecting efficiency may result in an unprofitable growth. Therefore, a balanced approach that aims at high efficiency and high effectiveness would require for the success of organizations and this would make organizations to “stretch” their endeavors.

FURTHER RESEARCH IMPLICATIONS

In addition to managerial implications, several research implications are also apparent for researchers. Though the findings of this study demonstrate that the marketing effectiveness and efficiency relationship with marketing performance is significantly strong across the different medium and large financial service enterprises in Ethiopia, replications with other service industries and non-service industries would be desirable. Finally, further research on the effect of marketing effectiveness and efficiency on the overall organizational performance could also be needed.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ REFERENCES

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114, Marketing Science Institute, Cambridge, MA.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Kotler, P., 1977. From sales obsession to marketing effectiveness. Harvard Business Review, November-December, P. 67-75. Kotler, P., 1997. Marketing Management: Analysis, Planning, Implementation and Control. Upper Saddle River, NJ: Prentice-Hall. Krishnaswami, O.R. and Ranganatham, M.,2010. Methodology of Research in Social Science, New Delhi: Himalaya Publishing House. Lai, W.B., Huang, J.Y., Hooley, G., Lynch, J. and Yau, O., 1992. Effective marketing in Taiwan: profiles of the top performers. European Journal of Marketing, 26 (3), P. 5-17. Lewin, A.Y. and Minton, J.W., 1986. Determining organizational effectiveness: another look, and an agenda for research. Management Science, 32 (5), P. 514-538. Norburn, D., Birley, S., Dunn, M. and Payne, A., 1990. A four-nation study of the relationship between marketing effectiveness, corporate culture, corporate values, and market orientation. Journal of International Business Studies, third quarter, P. 451-468. O‟Sullivan, D., Abela, A.V. and Hutchinson, M., 2009. Marketing Performance measurement and firm performance: Evidence from the European high-technology sector. European Journal of Marketing, 43 (5/6), P. 843-862. Porter, M.E., 2001. Strategy and the Internet. Harvard Business Review. 79 (3), P. 63-78. Sin, L.Y.M,, Tse, A.C.B., Yau, O.H.M,, Lee, J.S.Y. and Chow, R., 2002. The effect of relationship marketing orientation on business performance in a service-oriented economy. Journal of Services Marketing, 16 (7), P. 656-676. Temesgen, B.Z. and Shekhar,V., 2011. Factors Affecting E-marketing Implementation in Medium and Large Financial service Enterprises in Ethiopia. International Journal of Marketing and Management Research, 2(9), P. 64-84. Walker, J.O.and Ruekert,R.W.,1987. Marketing‟s Role in the Implementation of Business Strategies: A Critical Review and Conceptual Framework. Journal of Marketing, 51 (July), P.15- 33. Webster, C., 1995. Marketing culture and marketing effectiveness in service firms. Journal of services marketing, 9 (2), P. 6-21 Yamane, T., Statistics: An Introductory Analysis, 2nd Ed, New York: Harper and Row, 1967 Yin, K., 1994. Case study Research: Design and Methods. USA: New bury Park, Sag Publications. Zhu, K., Kraemer, K., Xu, S. and Dedrick, J., 2004. Information technology payoff in e-business environments: an international perspective on value creation of e-business in the financial

services industry. Journal of Management Information Systems, 21 (1), P. 17-54 www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ MARKETING OF ORISSA HANDICRAFTS: A STUDY ON CHALLENGES & OPPORTUNITIES

DR MANJUSMITA DASH*

*Faculty, Department of Business Administration, Utkal University, Vani vihar,Bhubaneswar – 4, Orissa, India.

ABSTRACT

India occupies a unique place in India in respect of handicrafts and arts. The subject matter of Indian handicrafts is derived from the cosmographic myths and legends of the Indian culture and civilization as described with fabulous imagination in the epics and the sacred scriptures. The present handicrafts are largely the visual manifests produced with remarkable fidelity to the historical continuance of thousands of years of Indian culture. But handicrafts have not received as much attention as they deserve.The performance of the existing institutional infrastructure both for financing and marketing of handicrafts is far from satisfaction. Artisans are depending on the middlemen for raw materials, finance and market for the finished products because of their illiteracy, ignorance and poverty. The success of handicrafts depends on how well the artisans can produce the articles in keeping with the tastes and preferences of consumers. Industrialization in any kind of arts and crafts, must be recognized by the market of consumers, through the exchange of commodities in order to make the artistic and ethnic value with a touch of innovation. ______

INTRODUCTION

Handicrafts are unique expressions of a particular culture or community through local craftsmanship and materials. With increased globalization, however, products are becoming more and more commoditized and artisans find their products competing with goods from all over the world. It is no longer possible to look at traditional artisan communities and their products in isolation from global market trends and competition. Handicrafts are part of a much larger home accessory market, which includes handcrafted, semi handcrafted, and machine-made goods. The home accessory market is strongly influenced by fashion trends, consumerpurchasing patterns, and economic conditions in end markets.In many cases, artisans are out of touch with those end markets, which presents a challenge to those seeking to export their products. The response of consumers to handicrafts is unpredictable and lends itself less to research and generalization than does the response to other products. “Consumers buy handicrafts because they like to feel connected with indigenous traditions and cultures in a global and increasingly commoditized world.”Handicraft production is a major form of employment in many developing countries and often a significant part of the export economy. With increased globalization, however, products are becoming more and more commoditized, with artisan producers facing increased competition from producers all over the world, particularly in China and other Asian countries. The All India Handicrafts Board assisted the state governments in setting up their Design and Technical centers in Uttar Pradesh, Bihar, Kashmir, Rajasthan, Punjab, Andhra Pradesh, Tamil Nadu, Kerala, Himachal

Pradesh, Madhya Pradesh, Gujarat, Orissa, Manipur, Tripura, Haryana, West Bengal and www.zenithresearch.org.in www.zenithresearch.org.in

Goa. In these centers, craftsmen and the artists jointly work out new designs and items in selectedcrafts.

These artists strive to combine the traditional with modern. The handicraft items are carefully

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ made so that they retain the ethnic value, while they can be put to modern day use. The designers have to keep in mind the changing needs of the consumers, especially the foreign markets. High priced goods are at times an obstacle to their sale. Moreover, imitation products are cheaper and easily available.

REVIEW OF LITERATURE

In view of the importance of the handicrafts in our economy and society, various aspects of handicrafts, such as, sociological, economic, technical, cultural, artistic and aesthetic aspects have been studied by a number of scholars. However, studies in different aspects of handicraft in the state of Orissa are limited. The current problems in the handicraft industry, particularly in the rapidly changing conditions in Orissa, call for a fresh look. The present study is a humble attempt to do this. Before it is done, a review of existing literature is presented below.

The art of pottery, the cotton woven fabrics, stonework, basket weaving etc are the main art forms of ancient India. These handicrafts reached the almost height of perfection and glory during the Mogul period. But with the advent of the British period, the growth of the factory system of mass production was the direct, immediate and most important cause for the decline of Indian handicrafts. In the post-independence era, the role and importance of handicrafts in the economic, social and political scene were strongly felt and the industry started to revive again. The famous book of Kamaladevi Chattopadhyaya “Indian handicrafts” is a famous landmark in the Indian cultural field. She says that Indian handicrafts thrived through ages stimulated by a vigorous folk tradition, a benign culture, and in an age when individualism was cherished and precision valued.

Rao, (1990) in his book “ Marketing of Handicrafts” observed that “Handicrafts offer solution to India, which is characterized by unemployment and foreign exchange crunch”.

Pathy, (1990) in his book entitled “Traditional panting of Orissa” beautifully explains the origin of the famous painting art of Orissa especially of Puri district. He says that it is most natural to think that these are the painters who are the descendants of people who once painted for the Buddhists, Jains and Sikhs and who also now paint for vaishnavas or the devotees of Jagannath. Some more ideas on Pattapainting art of Puri is given by Das, (1980) in his book “Puri Paintings”. The author has given vivid description of the decay and revival of the Pattapainting art of Puri. Government patronage was almost nil and hence this art was about to die. However it could be said that due to the sincere efforts of an American lady, a whole community of Chitrakaras revived their traditional art, which had been almost abandoned under compelling circumstances.

Mitra’s (1980) book “The Antiquities of Orissa” has been the earliest reference about the craft. Among other aspect of Orissa antiquities he has briefly dealt with the patta painting. He has said that the painters are a hereditary sub caste of Chitrakaras and that most of the pictures painted on cloth are produced in Puri itself.

Chattopadhyaya, (1963) in her book “ The glory of Indian Handicrafts” has vividly described about handicraft of different states of India. National Institute for Social Development and Applied Research, Bhubaneswar has done a research work on technology, firm size and

performance of three popular crafts of Orissa. www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Kannungo, (1964) in “Utkalana Chitrakara” ( the art and craft of Orissa) has briefly describes the patta painting as one of the old paintings is typical in its style where the theme basically depicts the religious tradition of India. It is closely associated with the culture of Jagannath.

Mention may be made of “The Philosophy behind temple art of Orissa by Panda, (1986), “Kansaris of Orissa” by Mohanty, (1980), “Traditional Patta Paintings of Orissa” by Mohapatra, “Architectural Wealth of Orissa” by Parida etc. All the above books and articles are no doubt eye openers to many who are ignorant about the aesthetic and cultural richness of different handicrafts practised in the state of Orissa.

Mohapatra, (1987) in his book has given a clear picture about Orissa and focuses on the Orissa handicrafts elaborately.

Samal, (1994) has done her research work in “Applique craft tradition of Orissa and change”. She has describes about position of appliqué in Orissa and its development according to time.

Upadhyaya in the book “Economics of handicraft industry” feels that without design development, technology advancement and quality improvement, we cannot think of healthy growth of such industry. It has been agreed in responsible quarters that even in the field of handicrafts a certain amount of mechanization ought to be introduced in order to obtain the two-fold objective of better finish and rationalization.

Bharati, (1973) in an article “Eastern India Handicrafts : A Preliminary Survey” published in Floklone a journal of anthropology states I just from lines that the tailor artists of pipili have become specialized in giving gorgeous look to their appliqué works.

Ahmed, (1980) in his book entitled “Problem and Management of Small Scale and Cottage Industries” expresses that the satisfactory performance in marketing of handicrafts could be possible due to the special interest taken by central as well as state governments to boost up the export of handicraft articles.

Panda, (1984) in “Textiles” of Arts and Crafts of Ganjam Districts, Orissa says that the appliqué craft is of 500 years old. The history of appliqué is commensurable with operas, festivals and processions.

Handicrafts being a specific category of the broad group of rural industries, very few in-depth research works have been done on this. However, some references to handicrafts have been made in the context of rural industrialization. Papolain, (1984) in his book “Rural Industrialization” had made an extensive study of 14 rural industries. Most rural industries especially traditional in nature have a limited capacity to generate even the subsistence income to the members engaged in it. But some other industries even run on traditional lines have a promising future such as handlooms. But other industries, which run in modern lines, seem to break the caste industry nexus and reduce the rigidities of social stratification in rural areas. These industries yield higher income to the entrepreneurs.

Sinha, (1970) in his book entitled “Rural Industry and Rural Industrialization” says that rural industry cannot be used as a synonym of traditional household or cottage industry situated in a rural area. Rural industry is a much wider term on which rural industrialization depends.

Most of these industries are either stagnated or in the process of decline. The regression www.zenithresearch.org.in www.zenithresearch.org.in

analysis showed that some of these units have limited scope for providing more employment.

Neither labour, nor capital can generate higher income in most of these industries. He agreed

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ with Papola that industries run on non-traditional lines are more viable for income generation than those run in traditional lines.

IMPORTANCE OF HANDICRAFTS

Handicraft sector occupies a prime position in the economy of India. It is the largest employer, next only to agriculture. The sector, while providing livelihood for thousands of artisans, provides avenues for realization of social and cultural potential of millions of people. The mythological, religious, social, historical and artistic expressions in crafts symbolize the strengths of Indian heritage while combining in these crafts both utility and beauty. High employment potential, low per capita investment and high value addition, involvement of women and weaker section, ecofriendliness and the potential to stimulate creative talents make the sector one of the most preferred sectors in the process of economic development.

India which consist of a variety of ethnic traditions and culture, is also a treasure house of handicrafts. Exquisite handicrafts using diverse raw materials are produced in different parts of the country. This include art metal ware, wood ware, hand printed textiles and scarves, applique, leather crafts, pattachitra, hand knotted and embroidered goods, shawls as art ware, stone carvings, zari and zari goods, imitation jewellery, filigree and miscellaneous other handicrafts. One of the unique feature of the handicrafts is that more often the same item of the handicraft, produced in different regions, are different from each other in terms of the craftsmanship, style, colour combination and finish.

HANDICRAFT TYPES

India is rich in handicrafts. There are about 3500 handicraft items produced in the country and the sector employs 60 lakh artisans who work independently or in small co-operatives or firms. Similarly Government of Orissa has identified and approved 49 categories of handicrafts which employ mare than one lakh artisans. These crafts have been divided into four groups in terms of development potential as follows:

1. Crafts with high development potential

2. Crafts with declining development potential

3. Languishing craft

4. Newly emerged craft

The various crafts, falling in different categories, are shown in Table 1

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TABLE 1: 49 CRAFTS OF ORISSA STATE OF INDIA CLASSIFIED IN TERMS OF INCREASING, DECREASING, LANGUISHING AND NEWLY EMERGING DEVELOPMENT POTENTIAL

Crafts with Development Sl. Sl. Sl. Languishing Sl. Newly Emerged Development Potential in No. No. No. Craft No. Craft Potential Declined trend Wooden painted 1. Stone Carving 1. 1. Horn Work 1. Coconut Shell toys Brass and Bell 2. 2. Artistic Footwear 2. Lacquer Work 2. Root Craft Metal 3. Dhokra Casting 3. Artistic Mat 3. Solapith 3. Straw Craft 4. Silver Filigree 4. Batik Printing 4. Bettle-nut Craft 4. Carpet Weaving Caneand 5. 5. Cloth Flower 5. Art Leather 5. Artificial Bonsai Bamboo 6. Applique and 6. Durry Carpet 6. Clay Toys 6. Soft Toys. Patchwork 7. Embroidery 7. Theatrical Dress 7. Pottery & 8. Gopa Craft 8. Paddy Craft Jai Khadi Terracotta 9. Sea Shell 9. Works 8. Wood Carving 10 Keora Leaf Product Palm-leaf 9. 11. Metal Craft Engraving Art Textiles Palm Leaf 10. 12. (fie& Dye) Decorative 11. Tribal Jewellery 13. Paper Mache 12. Fiber Craft 14. Sabai Grass Craft 13. Coir Craft. Costume 14. 15. Wooden Craft Jewellery Gem Stone 15. 16. Zari Works Processing

16. Golden Grass Patta & Tasar 17.

Painting 18. Jute Craft Source : Action Plan on Self-employment through Development of Handicrafts in Orissa state(Draft), Directorate of Handicrafts & Cottage Industries, Orissa, India.

Handicrafts have been a traditional craft and the skill of making handicraft has passed in families from generation to generation. Being an ancient skill it has take traditional culture and religion a~ the subject for the depiction in the craft forms.Our preliminary survey shows that handicrafts cover two important facets; i. Predominance of the skill of hands.

ii. The products should be artistic and unique. . www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Though machines can produce large quantities of uniform products within a short span of time, "hands" have won the time war. Handicrafts are produced at lesser pace but it is a combination of artistic functional value.

Handicrafts have always been a basic activity in human society. Crafts are an integral part of our life. Orissa offers a striking selection of decorative and utilitarian art and crafts. The beauty and charm of its crafts has always been a source of attraction to many Indian and Foreign tourists. Mainly the handicraft items are used for interior decoration of houses in urban areas and as a symbol or culture and tradition. Moreover, it was found that the handicraft items are mainly available in urban areas for its demand by the urban household.

Market segments for handicrafts can be either put in term of Geographical boundaries or in terms of categories of products or as per the buyers needs and requirements. Geographical and products segments are however most commonly used for the purpose of understanding the marketing of handicraft.

Market Segment

Geographical Segments Product Segments

National marketing Export marketing * Metal Craft/iron craft (It is marketing with ( Marketing of products (Art Metal Wares) the country) across the borders to * Wood Craft various other countries) * Fashion Jewellery * Traditional Textile Items * Furniture and Furnishing * Lace & Embroidery Intra State/Regional Marketing Inter State Marketing * Alabaster & Drafted Stone (Marketing of product in the (Marketing of products * Pottery / Earthenware same region on the same state over long distance i.e., Products in which they are made) in the various other * Miscellaneous Crafts state in the country)

MARKETING PRACTICES

Marketing touches everyone's life. Marketing involves a large number of activities, including Marketing research, Product development, Distribution, Pricing, Advertising, and Personal selling, Sales promotion, Packaging and Branding. Marketing combines several activities designed to sense, serve and satisfy consumer needs while meeting the goals of the organization. Handicraft units, which are mostly run by individuals with sole-proprietary form of organisation can ill-afford to have separate and well-organised marketing system. The artisan-cum-proprietor of the unit looks after all the functions with the help of members of his family. Most of his time is spent in the production. In case, he has a little time at his disposal, he uses it for acquiring raw materials. Usually, he has little knowledge and market information relating to his products. Woefully, the artisans in handicraft industry give little importance to the vital marketing function. The important marketing aspects are discussed

under the heads of product, price, place and promotion. www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ I) PRODUCT

A product is a set of tangible and intangible attributes, including packaging, colour, price, manufacturer's prestige, retailer's prestige, and manufacturer's and retailer's services, which the buyer may accept as offering want-satisfaction.

A) ADDITIONS TO PRODUCT-LINE: Firms which market only one product are rare today. Most firms offer a product line. A product line is a group of products related in function or customer purchase needs. The benefits of changing the composition of the product line, by either adding or subtracting products, depend on a nun1ber of factors- the preferences of consumers, the tactics of competitors, the firm's cost structure, and the spill over of den1and from the product to another name but a few.

The handicraft units produce a number of products applying the concept of product line. The size of product line depends on the demand for products and availability of resources like financial and raw material. In the process of assessing the demand for the products and resources availability, the artisans from time to time add new products to its existing product line or drop some of its present products.

B) DELETIONS FROM PRODUCT-LINE: The products which are not profitable are usually deleted from the product line. The decision whether to discontinue a product is often based on how fast it moves. Deletion of some of the products from product line may also be a practice in handicrafts.

C) HANDICRAFTS DESIGNS: The Design of a product should be in accordance with the tastes and preferences of customers. There are three types of designs viz., conventional, modern, conventional and modern which are usually adopted by craftsmen. Conventional designs are age-old and traditional designs. While modem designs are in keeping with the changes of consumer preferences and tastes. Conventional and modem is a combination of both types.

D) PRODUCT PLANNING AND DEVELOPMENT: Product planning embraces all activities that enable a company to determine what products it will market. Product development encompasses the technical activities of product research, engineering and design. More specifically, the combined scope of product planning and product development includes making decisions in such areas as the number of products to market, new uses for

each product, brand, package, label to be used for each product, quantity of the products etc.

Product planning and development can be found even in handicrafts. Handicrafts are the products of creativity and workmanship. Artisans, usually, strive for excellence in their crafts by undertaking product planning and development.

C) EXPANSION: Expansion is increasing the present scale of operation either by mechanising the process of production or by enhancing tile installed capacity. Expansion is undertaken when there is more demand for the products. It can also be undertaken in anticipation of future demand. However, expansion involves finance, without adequate finance, expansion activity cannot be taken.

The expansion of the unit can be done in various ways; that is by mechanisation, enhancing www.zenithresearch.org.in www.zenithresearch.org.in

the installed capacity and increasing manpower.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ II. PRICING

Price is a measure of what one must exchange in order to obtain a desired good or service. Price is the monetary expression value and is the focal point of the entire exchange process. Historically, prices have been set by buyers and sellers negotiating with each other. Sellers would ask for a higher price than they expected to pay. Through bargaining they would arrive at an acceptance price. Setting one price for all buyers is relatively modern idea.

A) FIXING THE PRICE: The craftsmen are unable to estimate the exact cost, of production due to several reasons. Hence, they find it difficult to fix the price basing on cost of production. The craftsmen have said that they fix prices of articles basing on its market acceptance and basing on the price offered by mastercraftsmen, dealers and co-operative societies.

Prices of handicraft articles are fixed by craftsman himself, master craftsman, dealer and co- operative societies, the extent of influence of these people in fixing the prices differ from craft to craft. Dealers and co-operative societies as viewed by a majority of the respondents influence a great deal in fixing the prices or handicrafts.

B) SALES TAX: Sales tax is not only high on handicrafts but also varied from craft to craft. It is suggested that the State Government may exempt handicrafts from sales tax, as it is already done in States like Bihar, Madhya Pradesh and Kerala. The absence of sales tax on handicrafts will result in reduction of Handicrafts prices and thereby increase the sales.

III) PLACE (DISTRIBUTION)

Distribution is concerned with the activities involved in transferring goods from producers to final buyers and users. It includes the physical activities, such as transporting, storing goods and the legal and promotional activities performed in the course of transferring ownership.

The artisans depend mostly upon master craftsmen, dealers and co-operative societies for disposal of their finished products. Some producers sell directly to the consumers, whereas some sell through dealers, master craftsmen and sales emporia. Sometimes, the dealers and master craftsmen sell the handicraft products through sales emporia, which directly contact the galaxy of consumers through its various outlets located at various important towns in India. There are certain limitations in the present channels of distribution of handicrafts. Co- operative societies are not serving' as a channels or distribution. Handicrafts producers are depending on the dealers and master craftsmen for selling handicrafts to consumers. Sales emporia are purchasing handicrafts from dealers and master craftsmen; but not from handicrafts manufacturers.

The handicrafts producers may sell their articles directly to their customers. Second channel, handicraft producers may sell to private dealers, who in turn, sell to galaxy of customers. The third channel, handicraft producers may sell to All India Handicraft Development Corporation, which in turn, sells to customers through its sales emporia. The fourth channel, handicraft producers may sell to All India Handicrafts Development Corporation, which in turn, may sell to State owned emporia which may ultimately sell to customers. The fifth channel, handicrafts producers may sell their articles to co-operative society which, in turn,

may sell to All India Handicrafts Development Corporation which may sell to State owned www.zenithresearch.org.in

emporia which, in turn, may sell to customers. The sixth channel, handicraft producers may

sell to co-operative society which, in turn, may sell to State owned emporia which may sell to

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ consumers. The seventh channel, handicrafts producers may sell to co-operative society which, in turn, may sell to customers.

IV) PROMOTION

Basically, it is communication information between buyer and seller to change attitudes and behaviour of consumers. Promotion-mix includes advertising, sales promotion, personal selling, publicity and packaging.

A) ADVERTISING: Advertising is not undertaken by and respondent. The small scale operation of the artisans does not permit the craftsmen to undertake advertising of their products individually. For the promotion of handicrafts, the Corporation has been undertaking publicity, exhibitions, printing of brochures, and participation in trade fairs. The Corporation is also putting up hoardings in important places and centres to tourist interest, which would serve as a good medium of publicity. Other forms of publicity include participation in trade fairs, and sponsoring trade / study teams covering particular crafts to other States in the country.

B) SALES PROMOTION: Sales promotion covers a wide range of techniques that provide an extra short-term incentive or inducement to patronize a store or buy a product. Techniques include demonstrations and exhibitions, samples, premiums, coupons, games and contests, displays and package inserts. In general, sales promotion is designed to reinforce the other factors of the promotion mix and to improve their short-term effectiveness.

C) MARKETING PROBLEM: Artisans face several problems in marketing. In view of shortage of financial resources and small scale of operation; advertising publicity cannot be undertaken by artisans. Hence, it is suggested that the Corporation may increase advertising and publicity for all the crafts. The Corporation should save the artisans from the exploitative clutches of middlemen by purchasing handicrafts at remunerative prices from artisans by giving payments promptly. Thus, Orissa Handicrafts Development Corporation and Rural Marketing and Service Extension Centres may be required to play a vital role in solving the marketing problems faced by artisans.

CONSUMER BEHAVIOUR

Consumer behaviour involves the study not only of what people consume but where, how often, and under what conditions goods and services are consumed. An understanding of the consumer behaviour of various market segments helps sellers to select the most effective product design, price, advertising appeals, channels of distribution. Consumer behaviour has been defined as behaviour involved in planning, purchasing and using economic goods and services. Thus, consumer behaviour is defined as the acts of individuals directly involved in obtaining and using economic gods and services including the decision processes that precede and determine these acts.

Problems in buying Handicrafts: Sometimes, buyers face problems in purchasing goods from retail outlets and dealers. Good customer relations increase sales. Customer satisfaction is the basis for the success of any business organisation. The sales of handicrafts depend on such factors as good sales persons in the emporia, availability of required article, in required size

and shape etc. The sales persons through their pleasing manners and courtesy should attract www.zenithresearch.org.in

the customers to enhance sales of handicrafts.Hence, it is suggested that State Handicrafts

Development Corporation should maintain proper stock of all varieties of handicrafts. Quality

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ of articles should be maintained through proper storage facilities.Customer satisfaction is the essence or marketing, all the sales persons should be trained to maintain good customer relations. It is also suggested that Rural marketing and Service Extension Centres and Orissa handicrafts Development Corporation should undertake market research and consumer research periodically to enable artisans to produce those articles which are needed by buyers.

EXISTING MARKETING NETWORKS

Product promotion campaigns: Such campaigns are done by the various Government organisations / major marketing organisations and Co-operatives and NGO's to promote regional and other products.

Craft Bazar & Melas & Trade fairs: Such bazar & melas are a part and parcel of our national life and such bazar & melas are held at different places scattered all across the country.

Trade fairs ( Melas or Craft Bazars in the local parlance) have thus become an important media for the sale / promotion of such products. Such Melas or Craft Bazars provide outlets for the sale of their products even to local artisans. Trades fairs held at national / international level provide opportunities to more established people / organisations.

Handicraft emporiums & shops at various places especially places of tourist importance.

In new of the large artisan base in the country the potentialities in this sector are enormous. What is however required is creation of necessary marketing infrastructure & frame work of incentives for promotion of workmanship.

It is thus a matter of concern that while there are a large number of artisans of various products scattered across the country, with practically little marketing infrastructure / network for the products, the value of their skills cannot reach beyond their small boundaries.

Creation of marketing network of such products can therefore lead to

A. Development of skills of the local Artisans

B. Growth in the employment opportunities to the local populace.

C. Development of the area & the region by building up the necessary infrastructure.

Creation of marketing network for the products of RURAL ARTISANS can thus become the basis of rapid growth and development in the country.

Marketing of products, commonly known as handicrafts, can be broadly divided into following heads.

I. INTRA STATE / INTER REGION MARKETING

i.e., marketing of the product with in the same state or region by means of

A. Own retail outlets www.zenithresearch.org.in www.zenithresearch.org.in

B. Network of retails outlets

C. Distribution - Dealer net works

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ II. INTER STATE MARKETING

i.e. marketing of the product across state & over longer distances.

III. EXPORT MARKETING i.e. marketing the products to other countries. This can be done either through the exsting exporters over seas, importers or their agents. While marketing organisation With financial muscle or established marketing network use the distributor - dealer - network to market their products Individual Artisans or small organisations commonly use the trade fairs / melas / buyer seller meets to promote and sell / market their products.

HANDICAPS IN DEVELOPMENT

There are many reasons for low productivity, low performance of handicrafts industry, out of which major reasons could be as follows:

Unorgnaised production based

Lack of modernization efforts

Limited credit facilities

Stiff competition from outside

Limited market opportunities

Lack of proper guidance and encouragement

High product cost

Lack of exposure and poor work environment

INTERVENTIONS SUGGESTED IN VARIOUS GOVERNMENT REPORTS AND ALSO BY ARTISANS IN DIFFERENT FUNCTIONAL AREAS

In different functional areas such as production, marketing, finance, design and development

and training, attempt was made to compile possible interventions as suggested by the government’s Directorate of Handicrafts and Cottage Industries in their various reports and also by the artisans. The compilation is presented in Table 2.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TABLE 2 : INTERVENTIONS SUGGESTED BY AGENCIES AND ARTISANS

Report of Directorate of Handicrafts Report of Directorate of Handicrafts & Cottage According to Artisans (Based on Survey & Cottage Industries 2003 Industries (2004-2009) (Action Plan) of artisans by Dr. M. Dash)

Production To provide infrastructure Craft wise documentation of existing Put the right price for each item. support for improvement of tools and analysis for the scope of further Time period for delivering the quality and productivity. advancement and applications. product should be in time. To ensure participation of all Demonstration Cum Learning Workshop. Artisans should make the product members involved production Organizing exposure visits. in such a way every body will Strengthening/creation of common attract towards it. Facility Centres. Govt. should open shops for raw materials. Should be scientific quality control for some crafts. Design To organise design assistance Skill upgradation. Different and various new product programme. Organizing Training for Master Craftsmen and design should be introduced.

To conduct demonstration and Institutional Training. Design registration should be done.

programmes for the improved Design Development Govt. should set up strong rule and tools and equipments. Test marketing of the product heavy penalties to copy of the To organise Design and Documentation and Dissemination of design. Technical Development Design Workshop Training To set up craft schools and Organizing sensitization/Awareness The Govt. should arrange workshop training centres at different Camp. for maser craftsperson for design places. Adequate training to artisans for sustained development and make new

To organise training camps. self-employment. product.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Marketing To provide direct marketing Organizing marketing events. Govt. should take necessary action facility throughout the year and Participation in Trade Fair/Exhibitions. regarding the marketing problem. eliminate the middle agencies. Developing business linkage with govt. To open websites and through To ensure effective marketing agencies. advertisement. participation of all members. Developing increase number of market Marketing should be properly To ensure effective complex organized. participation of all members in Involvement of private and corporate Regular exhibition should be marketing. house for market promotion. organized.

Finance To increase the capital base of Arrangement of finance for S.H.Cs for Loan should be provided to the handicrafts. production and marketing. artisan in time. Financial assistance for export Linking to banks for credit. Loan at low interest rate should be promotion activities. Introduction of artisan credit card. provided. To provide financial assistance To provide capital to modernize the to old craft. craft.

Daily wages of the artisan should

be fixed by the government. Sales tax should be exempted by the government on some items. Should provide old age pension to crafts men.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ SUGGESTIONS

In order to make handicrafts reach the top spot the following suggestions may be implemented.

ORGANISING MARKETING NETWORK: Absence of systematic marketing network has been a discouraging factor in this region. In my opinion, the artisans must be organized by themselves under the co-operative umbrella for marketing their products by themselves. For this more and more linkages must be developed with outside parties.

DESIGN REGISTRATION: Design registration should be done. That means whatever designs any artisan has introduced on any item should be registered. Then no one can copy it.

A PROPER DIRECTORY OF ORISSA HANDICRAFTS: Govt. should bring a Directory of Orissa Handicrafts with related craftsmen and place under different tourists offices, airports and luxury hotels. Then the foreign buyers can get more detail about our products and enable them to purchase the goods directly from artisans.

PRICE UNIFORMITY: It is often complained that prices of handicraft products are very much erratic and not uniform. There is significant difference in prices of the same article if purchase from two shops or from two places. In this situation the customer feels very much exploited and harassed. This might have very bad repercussion on the demand of the products. Categorization of art in each craft should be done according to the skill exhibited and quality of raw materials used and pricing should be made accordingly by a team of experts.

CREATING AWARENESS: The majority of artisans are not aware about various new schemes like loan at concessional rates, free tools, dyes and chemical, workshed-cum-housing facilities. It is the duty of the promotional organizations to make the weavers aware about the various welfare schemes and to implement the same on a war footing.

MORE R & D : for improving the quality of the products R & D is a must.

Many more new items and new designs can be developed with the help of

R & D.

INVITATION OF FOREIGN MASTER DESIGNERS: Foreign master designers may be invited to the design centres to render guidance to the craftsmen.

VALUE ADDED PRODUCTS: The various specialized organization, like DC (handicrafts), may help the local units to produce various value added items with would not only help to penetrate the local market, but also help in exporting of such items to foreign countries.

WIDE PUBLICITY : To attract more and more buyers both within and outside www.zenithresearch.org.in the country, promotional and marketing organizations must give due emphasis

on wide publicity of various local products. For this frequent buyers and sellers

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ meets may be organized by promotional organizations.

DISPLAY, DISPLAY & DISPLAY: In whatever possible manner, all the promotional and marketing organization, must display the local items in various airports, railway stations, bus stands, commercial centres etc. This will help the local artisans to get more orders from foreign tourists, traders, marketing organization etc.

SCOPE FOR EXPORTS: If systematic efforts are made, some of the selective products could emerge as a major foreign exchange earners in the near future. However, before exporting of such items care should be taken on product identification, quantum of production, supply arrangements, price, delivery, quality, payment terms etc.

STRATEGIC POSITIONING OF HANDICRAFT ITEMS : Handicrafts, which are produced with traditional skill, are gradually facing competition from machine made products, which give greater uniformity and bette r finish. For large number of handicraft items, there have been neither substitutes nor competition from any significant entrant into the field. Thus, suppliers, new entrants and substitute products do not appear to be significant factors in the strategic positioning of Handicrafts.

By the process of isolation we come to the buyers and buyer groups. This also includes the middlemen and distribution chain.

CONCLUSION

Handicraft is such a product that when a buyer likes it, he is prepared to pay a price, which may be far in excess of the standard price of the product. The prime consideration is his liking of the product. Channel agents, such as middlemen, retailer or distributor try to capitalize on such possibilities and earn significant profit almost wholly at the cost of the craftsmen. Therefore, in Handicraft strategic positioning eventually amounts to positioning on the marketing front. So far as strategic positioning is concerned, a handicraft product may be categorized on the basis of price, export on domestic market, ease of maintenance, ease of storage, utility value or decorative value and

modernity or traditional orientation.Though positioning as it exists today in handicrafts has been discussed above, it is not clear that this should be the ide al positioning. Besides, it is necessary for likeminded institutions to come together to provide the strategic direction and action plans to evolve systems. procedures and norms related to design, market, technology, innovation and quality of life so that product designs, technology and marketing become integral part of the craft upgradation and repositioning process. Craft is the bedrock of creativity and the essential differentiator for a country in the sweeping wines of globalization. Most importantly, craft has to become a fountainhead for both industrial design and communication design, for deriving the differential advantage of Indian design in the global market place.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ REFERENCES

Chandrasekhar. M,Marketing of handicrafts, Indian Publishers Venugopal. K and Rao. R.and Distributors, Delhi.1994

Chattapadhya, Kamaladevi, The glory of Indian Handicrafts, Indian Book Company, New Delhi.1996.

Census of Handicrafts Artisans,1995-96.

Das, H.C., Glimpses of Orissa Art and Culture. Golden Jubilee Volume of the Orissa Historical Research, Journal Vol – XXX ( Nos – 2, 3 & 4 ),1984.

Directorate of Handicrafts and , Status Report on Handicrafts, Government Cottage Industries of Orissa.,1990.

Enarkshi, Bhavnani, Decorative Designs and Craftsmanship of India, Russi Jal Taroporevala for D.B. Taraporevala Sons & Co. Pvt. Ltd, Bombay.1964.

Garrett, S.E., Statistic in Psychology and Education, David Mckay, Newwork. 1984.

Gill. G.S., Development and its Impact on Rural Artisans.1980.

Jain, Subash, Marketing Planning and Strategy, casebook, South Western College Publishing.1998.

Kinnear, Thomas C. and Bernhardt, Principles of Marketing, Scott, Foresman Kenneth L. and Company.1983.

Kotler, Philip Marketing Management, Thomson Press ( India) Ltd, New Delhi.2003

Mahapatra, Ramesh, Paribartan in Pipili Chandua (Appliqué in the Process of Development) in Orissa news paper Pragatibadi, Col – 1 to 7),1991

Mehta, Rustam J., The handicraft and Industrial arts of India; Jal Hirji D. Taraporevala for D.B. Taraporevala Sons & Co. Pvt. Ltd, Bombay.1960.

Mishra, K.C., Studies I the Cult of Jagannath, Bhubaeswar.1991

Mode, Prof Heinz, Indian Folk Art, Newyork.1985

Mohanty, B.C., Appliqué crafts of Orissa, Calico Museum of Textiles, Ahmedabad.1980.

Mohanty, Bijay Chandra, Appique crafts of Orissa, Calico Museum of Textiles, Ahmedabad.1980.

Mohapatra, Jayanta, Orissa Lustre Press Pvt. Ltd, New Delhi.1987.

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Molenaav, C.N.A., The Future of Marketing, Pearson Eduction Ltd.2002.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Mukharji, T.N, Art Manufactures of India, Calcutta.1988.

Mukherjee, Asoke, Folk Paintings of Orissa, The Eastern Times.1960.

Mukhopadhyaya, Durga Das, Folk Art and Social Communication Publication Division, New Delhi.1994.

Nag, A, Marketing Strategy, Macmillan India Ltd.2002.

National Institution for Social Development and Applied Research, Technology, Firm size and Performance a study of Three Popular Crafts of Orissa, , Bhubaneswar, 1999.

Nayak, P and Ray, J, Handicrafts of Orissa Development and Potential Nabakrushna Choudhury Centre for Development Studies, Bhubaneswar.1996.

Padhy,. Dinanath, Traditional Painting of Orissa, Bhubaneswar, Published by Hony, General Secy, Working Artists Association of Orissa.1990.

Rao, R.V., Rural Industrialization in India (The Changing Profile): Concept Publishing Company, Delhi.1978. MahapatraRaimohan,A study in the Economic Life and Progress of Ancient and Medieval Orissa.From the Earliest times to the 16th centuryA.D.(Kolkata:R.N.Bhatacharya,2002) Rajyana Kshyudrasilpa Pain Chin Aatank,(in oriya),The Samaja 12th September,2006.

Mohapatra Ramesh Chandra,”Changing Patterns in the Applique Crafts of Pipli,”Orissa Review,December,2005.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

NUTRIENTS: PRE, POST AND DURING EXERCISE

DR. ARVIND MALIK*

*Associate Professor, Department of Physical Education, Kurukshetra University, Kurukshetra , Haryana.

ABSTRACT

The aim of present review is to summarize the current scientific literature, and to make scientific recommendations surrounding the timed ingestion of carbohydrates (CHO) and protein (PRO). In pre exercise diet ingestion of 1 – 2 grams CHO/kg and 0.15 – 0.25 grams PRO/kg 3 – 4 hours before competition is recommended because ingesting PRO + CHO pre- exercise has been shown to produce significantly greater levels of muscle protein synthesis. During exercise a ratio of 3 – 4:1 (CHO: PRO) has been shown to increase endurance performance during both acute exercise and subsequent bouts of endurance exercise. Within 30 minutes of post exercise consumption of CHO at high dosages (8 – 10 g CHO/kg/day) has been shown to stimulate muscle glycogen re-synthesis. ______

INTRODUCTION

Appropriate nutrition is essential for the proper performance of exercise. In particular, correct nutrition is critically important for improvement of athletic performance, conditioning, recovery from fatigue after exercise, and avoidance of injury. Although athletes need to eat a well-balanced basic diet, there are several nutritional factors that are difficult to obtain at a sufficient level from a normal diet since athletes require more nutrients than the recommended daily allowances. Thus, nutritional supplements containing carbohydrates, proteins, vitamins, and minerals have been widely used in various sporting fields, partly because these supplements are easily taken before, during, and/or after exercise. Several natural food components have also been shown to exert physiological effects, and some of them are considered to be useful (when ingested at high doses or continuously) for improving athletic performance or for avoiding the disturbance of homeostasis by strenuous exercise.

Research has demonstrated that the timed ingestion of carbohydrate, protein, and fat may significantly affect the adaptive response to exercise. The overall concept of macronutrient ratio planning for the diets of athletes is not addressed directly within this position stand, as there is no one recommendation which would apply to all individuals. The author has summarized the current scientific literature, and to make scientific recommendations surrounding the timed ingestion of carbohydrates (CHO), protein (PRO), and fat. The enclosed recommendations are suitable for researchers, practitioners, coaches and athletes who may use nutrient timing as a means to achieve optimum health and performance goals.

PRE-EXERCISE NUTRIENT

Nutritional considerations prior to exercise have traditionally examined the administration of CHO to maximize endogenous glycogen stores and maintain serum glucose www.zenithresearch.org.in levels during endurance exercise 1,2,3. More recently, studies have begun to provide data

supporting the contention that pre-exercise ingestion of CHO, amino acids, PRO, and creatine

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ (Cr) prior to resistance training are effective modalities for enhancing exercise training adaptations] and decreasing exercise associated muscle damage 4,8.

• Glycogen stores are limited and depend largely on the nutritional status and the intensity and training level of the athlete. Endogenous glycogen stores during moderate to high 11 intensity levels (65 – 85% VO2max) of exercise may only last from 90 min to 3 h .

• Exercise intensity, pace and work output decrease as glycogen levels diminish. Depletion of glycogen is associated with increased levels of muscle tissue breakdown and suppression of the immune system 12,13.

• Maximal endogenous glycogen stores are best promoted by following a high-glycemic, high-CHO diet (600 – 1000 grams or ~8 – 10 g/kg/d) 9,11.

• The optimal CHO and PRO content of a pre-exercise meal is dependent upon a number of factors including exercise duration and fitness level, but general guidelines recommend ingestion of 1 – 2 grams CHO/kg and 0.15 – 0.25 grams PRO/kg 3 – 4 hours before competition 11..

• Pre-exercise ingestion of essential amino acids or PRO alone increases muscle protein synthesis. In addition, ingesting PRO + CHO pre-exercise has been shown to produce significantly greater levels of muscle protein synthesis 5,14.

• Regular ingestion of various PRO sources in conjunction with CHO stimulates greater increases in strength and favorably impacts body composition when compared to CHO alone 4,6.

DURING EXERCISE NUTRIENT

Much like the consideration of pre-exercise nutrient supplementation, a majority of the literature which has examined the impact of nutrient administration during exercise has focused on aerobic exercise, with a lesser emphasis on nutrient administration during resistance exercise 16, 17 ,18.

• CHO availability during exercise and muscle glycogen levels are major determinants of endurance performance. CHO administration becomes even more important when muscle

glycogen levels are low at the onset of exercise 19.

• As exercise duration increases beyond 60 min, exogenous sources of CHO become important to maintain blood glucose and muscle glycogen stores. This CHO source should supply 30 – 60 grams of CHO per hour and can typically be delivered by drinking 1 – 2 cups of a 6 – 8% CHO solution (8 – 16 fluid ounces) every 10 – 15 minutes20.

• Mixing different forms of CHO has been shown to increase muscle CHO oxidation from 1.0 g CHO/min to levels ranging from 1.2 g – 1.75 g CHO/min an effect which is associated with an improvement in time trial performance 21.

• Glucose, fructose, sucrose and maltodextrin can be used in combination, but large amounts

of fructose are not recommended due to the greater likelihood of gastrointestinal problems 19..

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ • The addition of PRO to CHO at a ratio of 3 – 4:1 (CHO: PRO) has been shown to increase endurance performance during both acute exercise and subsequent bouts of endurance exercise11.

• Ingesting CHO alone, or in combination with PRO, during resistance exercise increases muscle glycogen stores, offsets muscle damage, and facilitates greater training adaptations after acute] and prolonged periods of resistance training 17,18.

POST-EXERCISE NUTRIENT

Many nutritional interventions have been considered to enhance recovery from exercise. The body of published research supports the practice of ingesting nutrients to enhance performance for both endurance and resistance training athletes. There is also sound evidence which supports the value of post-exercise nutritional supplementation as a means of improving the recovery of intramuscular glycogen, providing a positive stimulation for acute changes in amino acid kinetics and improvement of the net PRO balance, as well as enhancing the overall adaptation to resistance training.

• Post-exercise (within 30 minutes) consumption of CHO at high dosages (8 – 10 g CHO/kg/day) has been shown to stimulate muscle glycogen re-synthesis 11.

• Adding PRO (0.2 g – 0.5 g PRO/kg/day) to CHO at a ratio of approximately 3: 1 (CHO: PRO) has been shown to stimulate glycogen re-synthesis to a greater extent14.

• Post-exercise ingestion (immediately after through 3 hours post) of amino acids, primarily essential amino acids (EAAs), have been shown to stimulate robust increases in muscle PRO synthesis. The addition of CHO may increase PRO synthesis even more, while pre-exercise consumption may result in the best response of all 5.

• During prolonged resistance training, post-exercise consumption of CHO + PRO supplements in varying amounts have been shown to stimulate improvements in strength and body composition when compared to control, placebo, or CHO-only conditions 6,24.

• The addition of Cr (0.1 g Cr/kg/day) to a CHO + PRO supplement may facilitate even greater adaptations to resistance training 22, 24.

CONCLUSION

The scientific literature associated with nutrient timing is an extremely popular, and thus ever-changing, area of research. Upon reviewing the available literature, the following conclusions can be drawn at this point in time:

• Prolonged exercise (> 60 – 90 min) of moderate to high intensity exercise will deplete the internal stores of energy, and prudent timing of nutrient delivery can help offset these changes.

• During intense exercise, regular consumption (10 – 15 fl oz.) of CHO/electrolyte solution delivering 6 – 8% CHO (6 – 8 g CHO/100 ml fluid) should be consumed every 15 – 20 min

to sustain blood glucose levels.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ • Glucose, fructose, sucrose and other high-glycemic CHO sources are easily digested, but fructose consumption should be minimized as it is absorbed at a slower rate and increases the likelihood of gastrointestinal problems.

• The addition of PRO (0.15 – 0.25 g PRO/kg/day) to CHO at all time points, especially post- exercise, is well tolerated and may promote greater restoration of muscle glycogen.

• Ingestion of 6 – 20 grams of EAAs and 30 – 40 grams of high-glycemic CHO within three hours after an exercise bout and immediately before exercise have been shown to significantly stimulate muscle PRO synthesis.

• Daily post-exercise ingestion of a CHO + PRO supplement promotes greater increases in strength and improvements in lean tissue and body fat % during regular resistance training.

• Milk PRO sources (e.g. whey and casein) exhibit different kinetic digestion patterns and may subsequently differ in their support of training adaptations.

• Addition of Cr to a CHO + PRO supplement in conjunction with regular resistance training facilitates greater improvements in strength and body composition as compared with when no Cr is consumed.

• Dietary focus should center on adequate availability and delivery of CHO and PRO. However, including small amounts of fat does not appear to be harmful, and may help to control glycemic responses during exercise.

• Irrespective of timing, regular ingestion of snacks or meals providing both CHO and PRO (3: 1 CHO: PRO ratio) helps to promote recovery and replenishment of muscle glycogen.

REFERENCES

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2. Yaspelkis BB, Patterson JG, Anderla PA, Ding Z, Ivy JL. Carbohydrate supplementation spares muscle glycogen during variable-intensity exercise. J Appl

Physiol. 1993;75:1477–1485.

3. Coyle EF, Coggan AR, Hemmert MK, Ivy JL. Muscle glycogen utilization during prolonged strenuous exercise when fed carbohydrate. J Appl Physiol. 1986;61:165– 172.

4. Cribb PJ, Hayes A. Effects of supplement timing and resistance exercise on skeletal muscle hypertrophy. Med Sci Sports Exerc. 2006;38:1918–1925

5. Tipton KD, Rasmussen BB, Miller SL, Wolf SE, Owens-Stovall SK, Petrini BE, Wolfe RR. Timing of amino acid-carbohydrate ingestion alters anabolic response of muscle to resistance exercise. Am J Physiol Endocrinol Metab. 2001;281:E197–E206.

6. Willoughby DS, Stout JR, Wilborn CD. Effects of resistance training and protein plus www.zenithresearch.org.in

amino acid supplementation on muscle anabolic, mass, and strength. Amino Acids.

2007;32:467–477.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 7. Coburn JW, Housh DJ, Housh TJ, Malek MH, Beck TW, Cramer JT, Johnson GO, Donlin PE. Effects of leucine and whey protein supplementation during eight weeks of unilateral resistance training. J Strength Cond Res. 2006;20:284–291.

8. Kraemer WJ, Hatfield DL, Spiering BA, Vingren JL, Fragala MS, Ho JY, Volek JS, Anderson JM, Maresh CM. Effects of a multi-nutrient supplement on exercise performance and hormonal responses to resistance exercise. Eur J Appl Physiol. 2007;101:637–646.

9. White JP, Wilson JM, Austin KG, Greer BK, St John N, Panton LB. Effect of carbohydrate-protein supplement timing on acute exercise-induced muscle damage. J Int Soc Sports Nutr. 2008;5:5.

10. Coyle EF, Coggan AR, Hemmert MK, Lowe RC, Walters TJ. Substrate usage during prolonged exercise following a preexercise meal. J Appl Physiol. 1985;59:429–433.

11. Tarnopolsky MA, Gibala M, Jeukendrup AE, Phillips SM. Nutritional needs of elite endurance athletes. Part I: Carbohydrate and fluid requirements. Eur J Sport Sci. 2005;5:3–14.

12. Joint Position Statement: nutrition and athletic performance. American College of Sports Medicine, American Dietetic Association, and Dietitians of Canada. Med Sci Sports Exerc. 2000;32:2130–2145.

13. Gleeson M, Nieman DC, Pedersen BK. Exercise, nutrition and immune function. J Sports Sci. 2004;22:115–125.

14. Tipton KD, Elliott TA, Cree MG, Wolf SE, Sanford AP, Wolfe RR. Ingestion of casein and whey proteins results in muscle anabolism after resistance exercise. Med Sci Sports Exerc. 2004;36:2073–2081.

15. Febbraio MA, Chiu A, Angus DJ, Arkinstall MJ, Hawley JA. Effects of carbohydrate ingestion before and during exercise on glucose kinetics and performance. J Appl Physiol. 2000;89:2220–2226.

16. Febbraio MA, Chiu A, Angus DJ, Arkinstall MJ, Hawley JA. Effects of carbohydrate ingestion before and during exercise on glucose kinetics and performance. J Appl

Physiol. 2000;89:2220–2226.

17. Haff GG, Koch AJ, Potteiger JA, Kuphal KE, Magee LM, Green SB, Jakicic JJ. Carbohydrate supplementation attenuates muscle glycogen loss during acute bouts of resistance exercise. Int J Sport Nutr Exerc Metab. 2000;10:326–339.

18. Bird SP, Tarpenning KM, Marino FE. Independent and combined effects of liquid carbohydrate/essential amino acid ingestion on hormonal and muscular adaptations following resistance training in untrained men. Eur J Appl Physiol. 2006;97:225–238.

19. McConell G, Snow RJ, Proietto J, Hargreaves M. Muscle metabolism during prolonged exercise in humans: influence of carbohydrate availability. J Appl Physiol.

1999;87:1083–1086. www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 20. Jeukendrup AE, Jentjens R, Moseley L. Nutritional Considerations in Triathlon. Sports Med. 2005;35:163–181.

21. Jentjens R, Shaw C, Birtles T, Waring RH, Harding LK, Jeukendrup AE. Oxidation of combined ingestion of glucose and sucrose during exercise. Metabolism. 2005;54:610–618.

22. Tipton KD, Ferrando AA, Phillips SM, Doyle DJ, Wolfe RR. Postexercise net protein synthesis in human muscle from orally administered amino acids. Am J Physiol. 1999;276:E628–634.

23. Borsheim E, Tipton KD, Wolf SE, Wolfe RR. Essential amino acids and muscle protein recovery from resistance exercise. Am J Physiol Endocrinol Metab. 2002;283:E648–657.

24. Rasmussen BB, Tipton KD, Miller SL, Wolf SE, Wolfe RR. An oral essential amino acid-carbohydrate supplement enhances muscle protein anabolism after resistance exercise. J Appl Physiol. 2000;88:386–392.

25. Cribb PJ, Williams AD, Hayes A. A creatine-protein-carbohydrate supplement enhances responses to resistance training. Med Sci Sports Exerc. 2007;39:1960–1968.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ IMPACT OF RBIs CREDIT POLICY AND STANDARD &POOR’s RATINGS ON BANKEX STOCKS: AN EVENT STUDY

DR. D. MAHESHWARA REDDY*; K.V.N.PRASAD**

*Assistant Professor, ITM Business School, Warangal, Andhra Pradesh, India. **Assistant Professor, ITM Business School, Warangal, Andhra Pradesh, India.

ABSTRACT

The capital market is a major part of Indian economy. As such whatever the national and international events (natural and man acts) happened that they had an impact directly on the Indian economy and indirectly on the capital markets of respective countries. The latest events like, RBIs credit policy rates on 26th July 2011 and S&P’s ratings on 8th August, 2011 on US government credibility are the major events which were affected the Indian capital market adversely. In this juncture, an attempt is made to assess the banking sector’s price trends i.e. which bank stock prices got much affected and which are least affected. This study will be useful to know the implications of the events on stock prices and to make wise and rational investment decisions.

KEYWORDS: Bankex stocks, FPO, Paired t test, RBI, S&Ps . ______

INTRODUCTION

The Indian economy and the Indian capital markets are exposed as vibrant ones in the global market after the implementation of economic and financial sector reforms in 1991. Then onwards the Indian economic and GDP growth rates have been increasing exponentially and became an ideal capital market for FIIs and FDIs. From the large research studies, pertaining the Indian economy and capital markets, it is observed and proved that the Indian economy is highly pool proofed and has resisted to the great economic recession (i.e US economic slowdown after the bankruptcy of Lehman brothers and Merry Lynch Ltd) without much impact on any segment of the economy. As RBI projects inflation will moderate to 6 percent by end-March 2012, it has raised its key rates for the twelve times since March 2010 whereby th it has pushed up the repo and reverse repo rates to 8.25% and 7.25% respectively on 16 September 2011. The RBI is playing a vital role in regulating the money supply in the market in order to ensure price stabilization. In achieving this, The RBI has been constantly reviewing and revising the credit policy rates without disturbing the growth rate. In this juncture, an attempt is made to assess the banking sector’s price trends i.e. which bank stock prices got much affected and which are least affected. This study will be useful to know the implications of the events on stock prices and to make wise and rational investment decisions.

Event study methodology is based on Efficient Market Hypothesis developed by Fama et al. (1969) and Fama (1970). According to this a market is efficient if , “ prices fully reflect all

available information “. One important assumption is that capital markets are sufficiently www.zenithresearch.org.in www.zenithresearch.org.in

efficient to react on events (new information) regarding expected future profits of affected

corporations.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ In the study of stock market’s reaction to sporting results of European listed foot ball clubs, Benkraiem, Louhichi, and Marques(2009) shows that sporting results after both the abnormal returns and the trading volume around the dates of matches. They studied 745 matches played by Europeon listed football clubs. Their findings also show that market reactions differ according to the nature of the result (defeat, draw or win) and the match venue ( home or away). From the findings, they conclude that the success of investments in listed foot ball clubs requires a regular follow-up of their sporting performances.

Event studies make it possible to examine the financial market impact of any event viewed significant. Brown and Warner (1980, 1985) were pivotal in formulating conventional event study methodologies in a simulation study. In spite of non synchronous trading often en counted with daily data, they conclude that both monthly and daily data offer sufficient ability to identify abnormal patterns.

Examples of studies that have used various event study methodologies to examine abnormal financial market patterns include Kim and Verrecchia (1991), Bamber and Cheon (1995), Graham, Nikkinen and Sahistorum (2003).

In the study, S.Dinesh(2011) “ A study on pricing behavior in the Indian capital market with reference to power grid corporation of India limited “ , concluded that, the security prices reacted to the announcement of FPO.

In the above back drop, the present study needs, to assess the impact of RBIs credit policy announcement and S& Ps ratings on US government creditability on Bankex stock prices.

RESEARCH METHODOLOGY:

The present study adopts analytical and descriptive research design. A finite sample of seven public and seven private sector banks of bankex stocks selected for the purpose of the study. The data of bankex stock prices for a period 25th July 2011 to 28th July 2011 (before and after two days of announcement of RBIs credit policy) and for a period 4th august 2011 to 8th august 2011(before and after two days of announcement of S&P ratings on US economy), have been collected from www.bse.com. While analyzing and interpreting the results, the statistical tools used are arithmetic mean, standard deviation and paired sample t test using spss 19.

RESULTS & DISCUSSIONS

The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion (2010) of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934 and plays an important part in the development strategy of the government. It is a member bank of the Asian Clearing Union. The organization structure of RBI can be seen in the table:

Established 1935

Governor Duvvuri SubbaRao www.zenithresearch.org.in www.zenithresearch.org.in

Currency INR

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ RBI is an apex bank in the Indian banking industry. Its main responsibility is to make sure that the orderly growth and development of banking coupled with protection to the all customers and public. Further the RBI has to ensure the stable prices in the economy. For that purpose it has been doing a robust exercise to review and control the money supply in order to arrest the running inflation in the country by means of triggering the policy rates. The latest policy rates of RBI(As on 26 July,2011) were depicted in the following table:

RBI Policy rates Per cent age (%)

Bank Rat 6.0%

Repo Rate 8%

Reverse Repo Rate 7%

Cash Reserve Ratio (CRR) 6.0%

Statutory Liquidity Ratio (SLR) 24.0%

Base Rate 9.50%–10.75%

Savings Bank Rate 4%

Deposit Rate 8.50%–9.50%

Source: wikipedia.org/wiki/Reserve_Bank_of_India

The imapct of RBIs credit policy rates on Bankex stocks analysed and discussed below.

IMPACT ON PUBLIC SECTOR BANKS

The average stock price for public sector banks before and after the announcement of RBIs credit policy was Rs.845.3929 and 810.3929 with standard deviations 773.64693 and 740.70382. To test the impact of RBIs credit policy on public sector banks paired sample t- test applied as indicated in table 1.1 and tested under the following hypothesis.

H0: The stock prices of public sector banks does not differed significantly before and after

the announcement of RBIs credit policy.

H1: The stock prices of public sector banks differed significantly before and after the announcement of RBIs credit policy.

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Paired differences

95% confidence

Mean S.D Lower Upper t Sig.value psbs prior -

psbs post 35.00000* 35.24491 14.65019 55.34981 3.716 0.003

*mean difference significant at 0.05 level of significance

Source: secondary data processed through spss 19

The mean difference between the public sector banks stock prices prior and post announcement of RBIs credit policy is 35 with t-value 3.716 and p-value 0.003 therefore the null hypothesis is rejected at 0.05 level of significance .i.e. the mean difference is significant. It can be concluded that the stock prices of psbs decreased significantly after the announcement of RBIs credit policy

IMPACT ON PRIVATE SECTOR BANKS

The average stock price for private sector banks prior and post announcement of RBIs credit policy was Rs.630.8607 and Rs.613.9179 with standard deviations Rs.384.78379 and 374.49511. The impact of RBIs credit policy on private sector banks tested under the following hypothesis employing paired sample-t-test as indicated in table 1.2

H0: The stock prices of private sector banks does not differed significantly before and after the announcement of RBIs credit policy.

H1: The stock prices of private sector banks differed significantly before and after the announcement of RBIs credit policy.

TABLE 1.2: PAIRED SAMPLES TEST FOR PRIVATE SECTOR BANKS

Paired differences

95% confidence

Mean S.D Lower Upper t Sig.value prsbs prior -

prsbs post 16.94286* 14.26827 8.70461 25.18111 4.443 0.001

*mean difference significant at 0.05 level of significance

Source: secondary data processed through spss 19

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The mean difference between the private sector banks stock prices before and after the

announcement of RBIs credit policy is 16.94286 with t-value 4.443 and p-value 0.001

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ therefore null hypothesis is rejected at 0.05 level of significance .i.e. the mean difference is significant. It can be inferred that the stock prices of private sector banks decreased significantly after the announcement of RBIs credit policy

IMPACT ON BANKEX STOCK PRICES

The mean stock price of bankex prior and post announcement of RBIs credit policy is 738.1268 and 712.1661 with standard deviations 609.4263 and 584.5416. The impact of RBIs credit policy on bankex stock prices tested under the following hypothesis and the results are given table 1.3

Ho: There is no significant difference between bankex stock prices before and after the announcement of RBIs credit policy

H1: There is a significant difference between bankex stock prices before and after the announcement of RBIs credit policy

TABLE 1.3: PAIRED SAMPLES TEST FOR BANKEX STOCK PRICES

Paired differences

95% confidence

Mean S.D Lower Upper t Sig.value bankex prior –

bankex post 25.96071* 27.94399 15.12517 36.79626 4.916 0.000

*mean difference significant at 0.05 level of significance

Source: secondary data processed through spss 19

The mean difference between bankex stock prices prior and post announcement of RBIs credit policy is 25.96071 with t-value 4.916 and p-value 0.000 therefore null hypothesis is rejected at 5% level of significance. We conclude that bankex stock prices decreased significantly after the announcement of RBIs credit policy.

S&P RATINGS

Standard & Poor's (commonly known as S&P) is a business segment of publishing house McGraw-Hill. It has been started the operations in more than 20 countries. The company provides the investment community with independent credit ratings on financial vehicles such as stocks, mutual funds, corporate bonds, and municipal bonds. In addition to its credit ratings, risk management, investment research, data, and valuations, Standard & Poor's is known for its indexes, including the S&P 500 index. The company's roots reach back to 1860; S&P was acquired by McGraw-Hill just over a century later. S&P has been actively involving in financial industry and credit services. DBRS Limited • Fitch Ratings Inc. • Moody's Corporation (mco) are its top competitors. The organizational structure of S&P is

depicted in the following table: www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ President Deven Sharma

VP Corporate Communications Chris Atkins

Manager Taiwan: Simon Chen,

The S&P has announced the credit ratings for US Economy on 5th August, 2011. The ratings of US Economy were downgraded from AAA to AA+.

The Bankex stock prices prior and post announcement of S&Ps ratings on US economy is depicted in table 3 & 4 and discussed below.

IMPACT ON PUBLIC SECTOR BANKS he average stock price for public sector banks before and after the announcement of S&P ratings was Rs.769.9357 and Rs.767.6500 with standard deviations Rs.703.84315 and Rs.700.10664. To test the impact of S&P ratings on public sector banks paired sample t- test applied as indicated in table 3.1 and tested under the following hypothesis.

H0: The stock prices of public sector banks does not differed significantly before and after the announcement of S&P ratings on US economy.

H1: The stock prices of public sector banks differed significantly before and after the announcement of S&P ratings on US economy.

TABLE 3.1: PAIRED SAMPLES TEST FOR PUBLIC SECTOR BANKS

Paired differences

95% confidence

Mean S.D Lower Upper t Sig.value psbs prior –

psbs post 2.28571 17.94887 -0.807766 5.65102 0.476 0.642

Source: secondary data processed through spss 19

The mean difference between the public sector banks stock prices prior and post announcement of S&P ratings is 2.28571 with t-value 0.476 and p-value 0.642 therefore null hypothesis can not be rejected i.e. the mean difference is not significant. It can be concluded that the stock prices of psbs not decreased significantly after the announcement of S&P ratings on US economy.

IMPACT ON PRIVATE SECTOR BANKS

The average stock price for private sector banks prior and post announcement of S&P ratings www.zenithresearch.org.in www.zenithresearch.org.in

on was Rs.589.3893 and Rs.574.2714 with standard deviations Rs.97.72270 and Rs.93.84671. The impact of S&P ratings on private sector banks tested under the following

hypothesis using paired sample t test as indicated in table 3.2.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ H0: The stock prices of private sector banks does not differed significantly before and after the announcement of S&P ratings

H1: The stock prices of private sector banks differed significantly before and after the announcement of S&P ratings.

TABLE 3.2: PAIRED SAMPLES TEST FOR PRIVATE SECTOR BANKS

Paired differences

95% confidence

Mean S.D Lower Upper t Sig.value prsbs prior –

prsbs post 15.11786* 16.39613 5.65102 24.58470 3.450 0.004

*mean difference significant at 0.05 level of significance

Source: secondary data processed through spss 19

The mean difference between the private sector banks stock prices before and after the announcement of S&P ratings is 15.11786 with t-value 3.450 and p-value 0.004 therefore null hypothesis is rejected at 0.05 level of significance .i.e. the mean difference is significant. It can be inferred that the stock prices of prsbs decreased significantly after the announcement of S&P ratings.

IMPACT ON BANKEX STOCKS

The mean stock price of bankex prior and post announcement of S&P ratings is Rs.679.6625 and Rs.670.9607 with standard deviations 557.98468 and Rs.552.32235 The impact of S&P ratings on bankex stock prices tested under the following hypothesis and the results are given table 3.3.

Ho: There is no significant difference between bankex stock prices before and after the announcement of S&P ratings.

H1: There is a significant difference between bankex stock prices before and after the announcement of S&P ratings.

TABLE 3.3: PAIRED SAMPLES TEST FOR BANKEX STOCK PRICES

Paired differences

95% confidence

Mean S.D Lower Upper t Sig.value

Bankex prior –

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bankex post 8.70179* 18.08988 1.68726 15.71631 2.545 0.017

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ *mean difference significant at 0.05 level of significance

Source: secondary data processed through spss 19

The mean difference between bankex stock prices prior and post announcement of S&P ratings is Rs.8.70179 with t-value 2.545 and p-value 0.017 therefore null hypothesis is rejected at 5% level of significance. We conclude that bankex stock prices decreased significantly after the announcement of P&S ratings on US economy.

CONCLUSION

The basis of event study is to examine the returns derived from the stock prices of the relevant stocks both before and after the event. The present study reveals that

After the announcement of RBIs credit policy, the stock prices of bankex is affected more, when compared to public or private sector banks individually. It is clear that there is a high risk involved in the combination of public & private sector banks. Further it is infer that the risk involved in private sector banks is high, when compared to public sector banks.

After the announcement of S&P ratings on US economy, the stock prices of private sector banks affected significantly, when compared to bankex and public sector banks. Further it is infer that, there is no impact of S&P ratings on public sector banks.

On overall basis, it is concluded that, the risk involved in private sector banks is high, when compared to public sector banks.

REFERENCES

Broen, S.J & Warner, J.B.(1980). “Measuring security price performance “. journal of financial economics, Vol.8, No.3, pp 205-258

Broen, S& Warner, J.(1985), “ Using daily stock returns : The case of event studies” , journal of financial economics, Vol.14, pp 3-31.

Dinesh.S, “A study on pricing behavior in the Indian capital market with reference to

power grid corporation of India limited” , Indian journal of finance ,Vol.5,No.7, pp 45-53.

Fama .E.F (1970), “Efficient Capital Markets: A review of theory and empirical work”, journal of finance, vol.25, No.2. pp 383-417.

www.bse.com

www.sebi.gov.in

www.invetopedia.com

www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ ANNEXURE

TABLE 1 : BANKEX STOCK PRICES BEFORE AND AFTER RBIS CREDIT POLICY ANNOUNCEMENT

Before After

Bank 25.7.11 26.7.11 Change (%) 27.7.11 28.7.11 Change (%)

BOB 912.85 899.6 -1.45 875.4 870.1 -0.60

BOI 403.5 388.8 -3.64 390.4 397.8 1.895

CB 523.65 513.45 -1.95 496 478.35 -3.558

IDBI 135.65 131.45 -3.10 132.8 129.9 -2.183

PNB 1197.20 1164.85 -2.70 1125.05 1102.95 -1.964

SBI 2513.65 2441.8 -2.86 2403.3 2356.45 -2.034

UBI 305 304.05 -0.36 297.45 289.55 -2.655

AXIS 1337.2 1319.85 -1.30 1300.1 1297.85 -0.173

FB 457.7 448.75 -1.96 440.1 432.2 -1.795

HDFC 505.1 497.85 -1.44 501.85 487.6 -2.839

ICICI 1074.2 1040.6 -3.13 1024.75 1017.55 -0.702

INDUS 277.15 268.85 -2.99 271.85 275.2 1.232

KMB 486.75 466 -4.26 463.65 459 -1.002

Yes 332.65 319.4 -3.98 312.7 310.45 -0.7195

Source: www.bse.com

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Mean N S.D Std.Error

Pair1 Psbs prior 845.3929 14 773.64693 206.76584

Psbs post 810.3929 14 740.70382 197.96142

Pair 2 Prsbs prior 630.8607 14 384.78379 102.83779

Prsbs post 613.9179 14 374.49511 100.08803

Pair 3 Bankex prior 738.1268 28 609.42639 115.17076

Bankex post 712.1661 28 584.54169 110.46800

Source: secondary data processed through spss 19

TABLE 3 : BANKEX STOCK PRICES BEFORE AND AFTER P&S RATINGS ON US ECONOMY Before After

Bank 04.08.11 05.08.11 Change (%) 08.08.11 09.08.11 Change (%)

BOB 874.9 863.4 -1.314 856.85 854.2 -0.309

BOI 368.7 362.25 -1.749 356.75 350.45 -1.769

CB 433.4 433.75 0.080 433.45 433.7 0.058

IDBI 122.9 119.7 -2.603 119.2 118.35 -0.713

PNB 1078. 1076.15 -0.171 1097.35 1116.05 1.704

SBI 2257.35 2232.85 -1.085 2218.25 2230.6 0.557

UBI 275.65 280.1 1.614 282.85 279.05 -1.343

AXIS 1285 1244.25 -3.171 1237 1210.5 -2.142

FB 401.55 389.7 -2.951 384.9 383.95 -0.247

HDFC 476.7 473.25 -0.723 463 466.25 0.702

ICICI 993.1 966.1 -2.719 952.1 940.95 -1.171

INDUS 264.2 262.7 -0.568 264.2 256.1 -3.065

KMB 451.7 438.9 -2.834 438.8 448.4 2.188 www.zenithresearch.org.in www.zenithresearch.org.in

Yes 302.9 301.4 -0.495 301.7 291.95 -3.232

Source: www.bse.com

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TABLE 4 : PAIRED SAMPLE STATISTICS FOR P&S RATINGS

Mean N S.D Std.Error

Pair1 Psbs prior 769.9357 14 703.84315 188.10999

Psbs post 767.6500 14 700.10664 187.11137

Pair 2 Prsbs prior 589.3893 14 365.64485 97.72270

Prsbs post 574.2714 14 351.14224 93.84671

Pair 3 Bankex prior 679.6625 28 557.98468 105.44919

Bankex post 670.9607 28 552.32235 104.37911

Source: secondary data processed through spss 19

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ THE IMPACT OF TRAINING ON KNOWLEDGE TRANSFER IN HIGHER EDUCATION

DR. D. G. KULKARNI*; DR. POORNIMA CHARANTIMATH**; DR. KIRTI SHIVKUMAR***

*Professor & Dean, Jain College of Engineering, Belgaum, Karnataka, India. **Professor & Dean, Jain College of Engineering, Belgaum, Karnataka, India. ***Professor & Dean, Jain College of Engineering, Belgaum, Karnataka, India.

ABSTRACT

What is the best way of achieving excellence? The management schools' achievements ultimately depend on well-qualified faculty who are able to transfer knowledge to their pupil in the most effective way. Education also needs a sense of purpose. The supreme objective of management education should be to turn out students as capable managers who can take a worthy stand in furthering this transfer of knowledge effectively by emulating their teachers. Teacher training has been a rigorous program for school teachers in India, but the same is missing in the higher education segment and more-so in professional colleges. This research paper investigates on the effect of training the faculty of MBA in a specially designed and researched teaching and training methodology which incorporates the learning styles of students, considers the multiple intelligence levels , and promotes the use of humor, anecdotes, multilingual instruction, outbound training programs, total learning methodology and focus on lower scores of multiple intelligence in linguistic and logical scores.

KEYWORDS: Higher education, Knowledge transfer, Training. ______

1. INTRODUCTION

It is said that teaching is an art. Reinforcing this art and bettering the best is an objective of any teacher. General teachers training programs stress on the schedules, modules, content

delivery, questions for interaction, charts and maybe power point presentation. All this is done keeping the teacher in mind and considering a very homogeneous cluster of learners. Before embarking on any teaching, it is important to know the profile of the learners. In an MBA institute, the students are in the adolescent age and above and hence deserve to be treated that way while developing the learning-teaching methodology. In a pilot research survey of faculty members of management schools in the city of Belgaum, it was seen that more than 80% of the teachers were not trained professional teachers. They either emulated their own teachers or did what they felt was the best way of teaching. Most of the teachers were not aware of the composition of the class in terms of language fluency, mother tongue, scores in their degree exams, dominant learning styles and the lower and higher cut offs of multiple intelligence. Most of teachers also did not use a template for the class. The preparation for a class was restricted to the domain content and the time schedule. Many faculty members were not too aware of concepts like Neuro Lingusitic Programming, www.zenithresearch.org.in Bloom’s taxonomy, etc. The faculty members opined that humor and anecdotes are important

but they were not using it in the class. For an effective knowledge transfer, we need to go

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ beyond the conventional method of teaching and adopt a more systematic and designed template for effective knowledge transfer.

2. LITERATURE SURVEY

Reseach on learning styles state that students will accept and even learn from homework provided that its design takes into consideration students’ learning styles and study skills. To provide the best way of learning to the individuals, learning style should be determined beforehand by considering the differences such as personality, perception, ability and intelligence.( Ibrahim Yasar Kazu) . Dunn and Dunn(1993) suggests that learning style is a method of getting and processing the with new knowledge or difficult information. Li Chung Wang and Ming-Puu Chen (2008) examined the perspective of compensation and enhancement that when learning strategies matched with learners’ stronger learning style learners’ performance and motivation will be enhanced, and when learning strategies matches with learners’ weaker learning styles learners’ ICT skills will be compensated. A study by Hui-Hui TIE and Irfan Naural Umar (2010) has emphasized the importance of considering the learning styles in learning the concepts for classroom delivery and hence the learning style influences the learning approach of students in perceiving and interacting. The preferred Learning Style of students are correlated with the students’ recall and retention performance. De Vita (2001) suggested a ‘multistyle’ teaching approach that boils down to selecting an alternating teaching techniques to match the various learning style preferences of multicultural students. However, the ‘multistyle’ teaching approach is centered on teaching effectiveness; that is, selecting the right teaching methods. It provides little insight into teaching efficiency like using these methods in an appropriate way and time. Ethnic and cultural variation in student learning styles can become an obstruction when a lecturer’s teaching style does not match the learning preferences of the student body (Biggs, 1997).

UNESCO supports bilingual and/or multilingual education at all levels of education as a means of promoting both social and gender equality and as a key element of linguistically diverse societies.” The National Council for Education Research and Training (NCERT) in the National Curriculum Framework, 2005 (NCF) makes it clear that bilingualism and multilingualism confer definite cognitive advantages’ and schools need to evolve strategies that use the multilingual classroom as a resource’.

Howard Gardner lists seven intelligences (IQ) that meet his criteria for intelligence. These intelligences are (1) Linguistic, (2) Logical-mathematical, (3) Musical, (4) Spatial, (5),

Bodily-kinesthetic, (6) Interpersonal and (7) Intrapersonal (Gardner, 1999). Tailoring lessons to students’ needs and preferences optimize learning. Catering to the multiple intelligences (MI) leads to active learners and successful students (Nolen. 2003).Research also indicates that music ,has a positive impact on the learners ability to get involved in the learning process. Learning in a natural setting can also boost learn ability. With the advent of the internet, it also becomes important to deliver knowledge chunks through all possible channels like the e-learning and the m-learning.

3. OBJECTIVE OF RESEARCH

Having understood that each student is differently intelligent , it becomes a magnanimous task to satisfy every student in the class. Hence, a model of teaching which incorporates the learning style, humor, anecdotes, multilingual instructions, outbound training program, total www.zenithresearch.org.in

learning methodology and considering low scores of multiple intelligence is incorporated and

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ two faculty members are trained to transfer knowledge to the learners in a systematic method. The effect of implementing this method in management education is studied

4. METHODOLOGY

A teaching methodology with an acronym AVKHAM-Music,OBT,TLM, LSMI is developed. AVKHAM stands for Auditory, Visual Kinesthetic, Humor, Anecdotes, and Multilingual instructions. OBT stand for Out Bound Training, TLM stands for Total Learning Methodology, and LSMI stands for Low Scores in Multiple Intelligence. To implement the AVKHAM-Music,OBT,TLM, LSMI, methodology a sample of the MBA students was considered. This was a class of the first year and 58 students participated in this. Two faulty members participated in the experiments. The experimenter used a Before- After experimental analysis for the whole group. The group was first exposed to a conventional teaching method by the two faculty members for eight hours. A feedback was taken to study 7 variables. The faculty members were now trained to use the AVKHAM-Music,OBT,TLM, LSMI,d methodology. Now, the faculty member engaged the students for another eight hours implementing the module as per the template. Feedback was taken again and the results were analysed using the z-test.

5. THE AVKHAM-MUSIC,OBT,TLM, LSMI METHODOLOGY

In this teaching methodology, the faculty members were trained to understand the learning styles of the students. Each students can have either one or a combination of learning styles. They could be either Auditory ( Who learn by listening), Visual ( who learn by seein) and Kinesthetic ( who learn by doing). The session is designed to satisfy all the learners in the class. This also suggests injecting humor into the class which may be or may not be related to the subject. These are interrupts to break the monotony of a session. Simplifying management concepts by anecdotes is a great method to retain knowledge. A class may have students from cross –cultural society with different language skills. Important key words can be translated for the benefit of the students. This way, learning is reinforced. Some session dealing with quantitative techniques or mathematical calculation can get very boring. A soft music can rejuvenate the learning process. Research supports the use of music to enhance learning in schools. The faculty members can have an unconventional seating methods and in a setting of nature to reinforce learning. The compact classroom

seating can sometimes cause hindrance psychologically. Hence, outbound training programs can be implemented for this purpose. The TLM method advocates bombarding knowledge chunks by all the channels viz. email and mobile, and also adopt the television telecast for learning. The students with low linguistic scores should be a target for theoretical subjects and those low on mathematical skills should be target for mathematical subjects. This way the whole class gains since the lower strata students are the targets to find out whether learning has taken place or no?

6. HYPOTHESIS AND STATISTICAL TOOLS

Z-TEST FOR COMPARISON OF TWO MEANS www.zenithresearch.org.in www.zenithresearch.org.in

Feedback were obtained from the experimental units on a scale from 1 to 5 ( 1 being

minimum score and 5 being the maximum score ) for both conventional and non-

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ conventional teaching methodologies with respect to each factor (teaching style, knowledge transfer, level of interaction, overall session performance, knowledge acquisition and level of interest generated ).

Here the all the hypothesis are tested at 5% level of significance. Further the software has the provision of only t-test, but as soon as the size of the experimental group exceeds value 30 then the software automatically shifts from t-test to Z-Test.

Further here we are using Z-test for comparison of two means since we are comparing the average feedback score of conventional and non-conventional teaching methodologies with respect to each factor.

To carry out the Z-test for comparison of two means, we first carry out Levene’s test for equality of variances. Here if the p-value under Levene’s test for equality of variances is less than the level of significance (5% i.e. 0.05) then we observe the p-value for the Z-test with equal variances not assumed else we observe the p-value for the Z-test with equal variances assumed.

Further if the p-value under the Z-test is less than the level of significance (5% i.e. 0.05) than the null hypothesis is rejected else it would be accepted at the given level of significance.

The various hypothesis which were tested after the experiments were as follows.

HN1: There is no significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI,) methodology with respect to teaching style

HA1: There is a significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI,) methodology with respect to teaching style

Group Statistics

Std. Error Teaching Methodology N Mean Std. Dev iation Mean Teaching Sty le Conv entional 58 3.55 .71 9.26E-02 Non-Conv entional 58 4.57 .53 7.01E-02

Independent Samples Test

Lev ene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interv al of the Mean Std. Error Difference F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper Teaching Sty le Equal v ariances 4.886 .029 -8.761 114 .000 -1.02 .12 -1.25 -.79

assumed www.zenithresearch.org.in www.zenithresearch.org.in Equal v ariances

-8.761 106.149 .000 -1.02 .12 -1.25 -.79 not assumed

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ INFERENCE: The above hypothesis is tested at 5% (0.05) level of significance with equal variances not assumed. Here we observe that the p-value (0.000 ≈0.0001) is less than the level of significance (0.05), hence we can reject the null hypothesis (HN1) at 5% level of significance.

CONCLUSION: There is a significant difference between Conventional and Unconventional teaching methodology with respect to teaching style as observed for Faculty 1. Further we can conclude that Unconventional teaching methodology is better than the Conventional methodology since average score of Unconventional teaching methodology (4.57) is greater than the average score of Conventional methodology (3.55)

HN2: There is no significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI,) methodology with respect to knowledge transfer

HA2: There is a significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI,) methodology with respect to knowledge transfer

Group Statistics

Std. Error Teaching Methodology N Mean Std. Dev iation Mean Knowledge Transfer Conv entional 58 3.28 .64 8.45E-02 Non-Conv entional 58 4.59 .56 7.39E-02

Independent Samples Test

Lev ene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interv al of the Mean Std. Error Difference F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper Knowledge Transfer Equal v ariances .475 .492 -11.674 114 .000 -1.31 .11 -1.53 -1.09 assumed Equal v ariances -11.674 112.035 .000 -1.31 .11 -1.53 -1.09 not assumed

INFERENCE: The above hypothesis is tested at 5% (0.05) level of significance with equal variances assumed. Here we observe that the p-value (0.000 ≈0.0001) is less than the level of significance (0.05), hence we can reject the null hypothesis (HN2) at 5% level of significance.

CONCLUSION: There is a significant difference between Conventional and Unconventional teaching methodology with respect to knowledge transfer as observed for Faculty 1. Further we can conclude that Unconventional teaching methodology is better than

the Conventional methodology since average score of Unconventional teaching methodology www.zenithresearch.org.in

(4.59) is greater than the average score of Conventional methodology (3.28)

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ HN3: There is no significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI,) methodology with respect to level of interaction

HA3: There is a significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI,) methodology with respect to level of interaction

Group Statistics

Std. Error Teaching Methodology N Mean Std. Dev iation Mean Level of Interaction Conv entional 58 3.12 .77 .10 Non-Conv entional 58 4.71 .50 6.51E-02

Independent Samples Test

Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interv al of the Mean Std. Error Difference F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper Level of Interaction Equal v ariances 4.721 .032 -13.141 114 .000 -1.59 .12 -1.83 -1.35 assumed Equal v ariances -13.141 97.041 .000 -1.59 .12 -1.83 -1.35 not assumed

INFERENCE: The above hypothesis is tested at 5% (0.05) level of significance with equal variances not assumed. Here we observe that the p-value (0.000 ≈0.0001) is less than the level of significance (0.05), hence we can reject the null hypothesis (HN3) at 5% level of significance.

CONCLUSION: There is a significant difference between Conventional and Unconventional teaching methodology with respect to level of interaction as observed for Faculty 1. Further we can conclude that Unconventional teaching methodology is better than the Conventional methodology since average score of Unconventional teaching methodology (4.71) is greater than the average score of Conventional methodology (3.12)

HN4: There is no significant difference between Conventional and Unconventional) AVKHAM-Music,OBT,TLM, LSMI), methodology with respect to overall session

HA4: There is a significant difference between Conventional and unconventional (AVKHAM-

Music,OBT,TLM, LSMI,) methodology with respect to overall session

www.zenithresearch.org.in www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

Group Statistics

Std. Error Teaching Methodology N Mean Std. Dev iation Mean Ov erall Session Conv entional 58 3.48 .71 9.28E-02 Non-Conv entional 58 4.78 .50 6.53E-02

Independent Samples Test

Lev ene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interv al of the Mean Std. Error Difference F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper Ov erall Session Equal v ariances 17.429 .000 -11.396 114 .000 -1.29 .11 -1.52 -1.07 assumed Equal v ariances -11.396 102.300 .000 -1.29 .11 -1.52 -1.07 not assumed

CONCLUSION: There is a significant difference between Conventional and unconventional teaching methodology with respect to overall session as observed for Faculty 1. Further we can conclude that unconventional teaching methodology is better than the Conventional methodology since average score of unconventional teaching methodology (4.78) is greater than the average score of Conventional methodology (3.48)

HN5: There is no significant difference between Conventional an unconventional (AVKHAM- Music,OBT,TLM, LSMI,) methodology with respect to knowledge acquisition

HA5: There is a significant difference between Conventional and unconventional ))AVKHAM-Music,OBT,TLM, LSMI, methodology with respect to knowledge acquisition

Group Statistics

Std. Error Teaching Methodology N Mean Std. Dev iation Mean Knowledge Acquisition Conv entional 58 3.48 .68 8.95E-02

Non-Conv entional 58 4.67 .54 7.12E-02 www.zenithresearch.org.in www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

Independent Samples Test

Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interv al of the Mean Std. Error Difference F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper Knowledge Acquisition Equal v ariances 6.627 .011 -10.400 114 .000 -1.19 .11 -1.42 -.96 assumed Equal v ariances -10.400 108.535 .000 -1.19 .11 -1.42 -.96 not assumed

CONCLUSION: There is a significant difference between Conventional and Unconventional teaching methodology with respect to knowledge acquisition as observed for Faculty 1. Further we can conclude that Unconventional teaching methodology is better than the Conventional methodology since average score of Unconventional teaching methodology (4.67) is greater than the average score of Conventional methodology (3.48)

HN6: There is no significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI,) methodology with respect to extent of interest generated

HA6: There is a significant difference between Conventional and Unconventional (AVKHAM-Music,OBT,TLM, LSMI) methodology with respect to extent of interest generated

Group Statistics

Std. Error Teaching Methodology N Mean Std. Dev iation Mean Extent of Interest Conv entional 58 3.52 .71 9.28E-02 Generation Non-Conv entional 58 4.72 .52 6.87E-02

Independent Samples Test

Lev ene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interv al of the Mean Std. Error Difference F Sig. t df Sig. (2-tailed) Difference Difference Lower Upper Extent of Interest Equal v ariances 11.460 .001 -10.453 114 .000 -1.21 .12 -1.44 -.98 www.zenithresearch.org.in

Generation assumed

Equal v ariances -10.453 105.007 .000 -1.21 .12 -1.44 -.98 not assumed

CONCLUSION: There is a significant difference between Conventional and Unconventional teaching methodology with respect to extent of interest generated as observed for Faculty 1. Further we can conclude that Unconventional teaching methodology is better than the Conventional methodology since average score of Unconventional teaching methodology (4.72) is greater than the average score of Conventional methodology (3.52)

7. CONCLUSION

After subjecting the data to the z-test, the following was observed that the AVKHAM- Music,OBT,TLM, LSMI, is better than the conventional method of teaching with respect to the variables - teaching style, knowledge transfer, interest generated, overall session, level of interaction and knowledge acquisition.

It was concluded that the training was effective and this was indicated in the feedback forms and the hypothesis. The impact of training on knowledge transfer was positive. This suggests that the faculty members in higher education must undergo training programs to make knowledge transfer effective.

8. REFERENCES

Biggs,J. (1997). Teaching across and within culture: The issue of international students. Proceedings of the Higher education and researchand Development Societyof Australasia conference. Adelaide, July 1997.

De Vita, G (2001), Learning styles, cultural and inclusive instruction in the multicultural classroom: A business and management perspective, Innovations in Education and Teaching International, 38(2), 165-174).

Dunn, R. and K. Dunn, 1993. Teaching Secondary Students Through their Individual Learning Styles.

Allyn and Bacon, Boston, ISBN: 10: 0205133088, pp: 496.

Gardner, H. (1999). Intelligence reframed: multiple intelligences for the 21st century. New York: Basic Books.

Hui-Hui TIE and Irfan Naural UMAR (2010). The impact of learning styles and instructional methods on student’s recall and retention in programming education, Proceedings of 18th international conference on computers in education. Putrajaya Malaysia. Asia Pacific Society for computers in education.

Ibrahim Yasar Kazu. 2009. The Effect of Learning Styles on Education and the Teaching

Process, Journal of Social Sciences 5(2): 85-94, 2009,Science publications, ISSN 1549-3652

www.zenithresearch.org.in www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Li-Chun Wang and Ming-Puu Chen, Enhancing ICT skills learning through peer learning: Perspective of learning style and gender, International Journal of education and information technologies, Issue 2, Vol. 2,2008

Nolen, J.L. (2003), Multiple intelligences in the classroom. Education (124(1), 115-119.

UNESCO (2003) Education in a Multilingual World, UNESCO Education Position Paper. Paris: UNESCO. On www at: http//unesdoc.unesco.org/images/0012/001297/129728e.pdf.

ANNEXURE A

TEMPLATE OF SESSION

PLANNING BY THE HOUR

Date: ______Topic: ______Module:______

Plans to use : A/V/K/H/An/M/Music/Outbound/

TARGET STUDENTS FOR THIS SESSION: ( TICK APPROPRIATE)

a) All :

b) Those Low on : Lingual/Inter/Intra/Number/Nature/Picture/Music

c) Those High on: Lingual/Inter/Intra/Number/Nature/Picture/Music

d) Auditory/ Visual/Kinesthetic

Time Topic Interventions Student’s activity Competency used by the faculty member Developed

www.zenithresearch.org.in www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TOTAL LEARNING METHODOLOGY

Information to be sent by email:

______

Information to be sent on the mobile:

______

Suggested websites:

______

Suggested

YouTube: ______

Suggested

Television Channel and time: ______

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ MARKETING AUDIT- AN IMPORTANT TOOL TO DETERMINE STRENGTHS AND WEAKNESSES OF THE COMPANIES

ARPIT LOYA*

*Assistant Professor, Sapient Institute of Management Studies, Indore, Madhya Pradesh, India.

ABSTRACT

The marketing audit is the comprehensive assessment of all angles of marketing operation in an organization. This work needs systematic evaluation of plans, objectives, strategies, activities and organizational structure as well as marketing staff. Marketing effectiveness is a fundamental performance dimension of the marketing organization, traditionally viewed as an output variable predicated on goal attainment. Recent literature, however, has portrayed a broader conceptualization of effectiveness that disputes this strict goal attainment model. Through this paper we would like to bring into focus the broad and different aspects of marketing audit that can help an organization to understand the internal as well as external environment thus effectively analyzing its strategies and their implementation.

KEYWORDS: components, marketing audit, tools and techniques. ______

INTRODUCTION TO MARKETING AUDIT

The marketing audit is a fundamental part of the marketing planning process. It is conducted not only at the beginning of the process, but also at a series of points during the implementation of the plan. The marketing audit considers both internal and external influences on marketing planning, as well as a review of the plan itself. Here the marketing audit is used some tools to evaluate marketing performance of an organization, for example SWOT analysis for the internal environment, as well as the external environment. Other examples include PEST and Five Forces Analyses, which focus only on the external environment

To conduct an audit, according to Cambridge Dictionaries Online, is “to make an official examination of the accounts of a business” (2003). While the concept of an audit is commonly associated with the accuracy of financial reports, it is no less important for marketing. Many businesses judge the impact of their marketing program on sales numbers. While sales may be one measure of marketing effectiveness, sales data do not tell management what worked, what didn‟t, and what external factors impacted the results. Interpretation of sales data does not provide “report cards” for prior marketing efforts, or direction for future efforts. Whether conducted by an outside auditor or by in-house personnel, regular examinations of all aspects of the marketing function can provide information on the external environment; the internal organizational structure; and the objectives, strategies, and tactics used by a firm or a brand. Businesses that market their own brands require effective marketing planning and activities. Efficiently managing such planning and activities enables businesses to generate competitive advantages in core

competences. www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Wernerfelt (1984) formulated the resource-based view of firms, which views internal firm capabilities and resources as the key determinants of competitive advantage. This resource- based perspective considers resources and capabilities to be competitive advantages if they are firm specific, rare, durable and difficult to imitate or substitute (Wernerfelt, 1984; Barney, 1991; Heracleous, 2003). Using such resources and capabilities to formulate effective marketing and managerial plans can help businesses weather global economic recessions.

Marketing planning in particular requires an understanding of factors directly associated with the customer response to business marketing efforts such as advertisements, branding, pricing and promotions (Stevens et al. 2005).

Marketing auditing is the comprehensive, systematic, independent and periodic examination of the external marketing environment, internal marketing goals, objectives, operations and efficiency of a business (Kotler et al., 1977). Marketing audits encompass the entire range of marketing activities. Researchers have categorized the components of marketing audit and have developed checklists for practical use (Kotler et al., 1977; Schewe et al., 1983; Cohen, 1991; McCarthy et al., 1993).

CHARATERISTICS OF MARKETING AUDIT

. Comprehensive. The marketing audit covers all the major marketing issues facing an organization, and not only one or a few marketing trouble spots. The latter would be called a functional audit if it covered only the sales force, or pricing, or some other marketing activity.

. Systematic. The marketing audit involves an orderly sequence of diagnostic steps covering the organization's marketing environment, internal marketing system, and specific marketing activities. The diagnosis is followed by a corrective action plan involving both short-run and long-run proposals to improve the markets.

. Independent. The marketing audit is normally conducted by an inside or outside party who has sufficient independence from the marketing department to attain top management's confidence and the needed objectivity.

. Periodic. The marketing audit should normally be carried out periodically instead of only when there is a crisis. It promises benefits for the organization that is seemingly

successful, as well as the one that is in deep trouble.

OTHER CHARACTERISTICS

. Environment – the circumstances or conditions surrounding the agency, both within and without

. Objective – worked toward or striven for and measurable

. Strategies – plans of action

. Activities – specified and supervised fields of action

. Resources – an available supply that can be drawn on when needed www.zenithresearch.org.in

. Problem areas – situations that present uncertainty, perplexity or difficulty

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ . Plan of action – process of doing or performing

From this overall definition and sum of its parts, it can be seen that the marketing audit provides a very complete assessment the environment. In that situation most of the organization has chosen to operate a business.

ADVANTAGES OF MARKETING AUDIT

A marketing audit can be defined as a systematic, periodic and a comprehensive procedure of checking out the marketing activities of a concern. Some of the other benefits and advantages of marketing audit are as follows.

. The audit provides the marketers with an in depth view of the marketing activities that are going around in the concern. It brings out a complete picture of the entire operations of the concern. While revealing the various drawbacks the audit process also leads to efficiency. This process can also be used to lay down an improved marketing plan.

. A marketing audit can help a company refine its business practices and improve its productivity and profitability.

. Marketing audit helps to marketing executives, top management and investors to ensure that they are doing the right things to help drive growth for their organizations.

. A marketing audit is a careful examination and evaluation of marketing practices and results. It offers a baseline for performance measurements and a framework for effective business planning to maximize positive external perception and demand generation.

. An audit helps the company determine the value of a sale and a sales lead.

. There are no permanent "right" answers in marketing. Customers' needs and wants are moving targets, and marketing programs require testing and retesting to find the most profitable formula. A marketing audit is the way to achieve success by providing an interim report card to help the company and their staffs tap into inherent resource.

. Marketing audits often lead to strategic marketing change. Careful assessment of the

changing environment, customers, channels, and competitors may lead to a reassessment of firm direction,

THE CURRENT SCENARIO OF THE MARKETING AUDIT

The marketing audit is a generally accepted method of evaluation and a control mechanism of marketing performance. In 1967, Kotler dedicated a full chapter of Marketing Management: Analysis, Planning, and Control to the marketing audit and identified it as “something apart from and more comprehensive than the other control efforts of the firm” (p 594). Ten years later the publication of “The Marketing Audit comes of Age” (Kotler, Gregor and Rodgers 1977) was a turning point in the development of the marketing audit. It provided a definition that after twenty years still remains current. It also suggested the process and the organisation as well as the potential problems in conducting an audit. This work has become a major www.zenithresearch.org.in source of reference for many authors who contributed to the further development of the

marketing audit (Brownlie 1996a).

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/

Consumers‟ change of tastes and preferences, accelerating technological breakthroughs, and the increasing intensity of competition in many and especially growing industries necessitated a change of attitude and direction by some companies to incorporate more attacking and defensive measures in the planning and implementation of their marketing efforts (Sutcliffe 1975, Brownlie 1993, Kotler, FitzRoy, and Shaw 1980).

Although the basic premises of the marketing audit have remained as Kotler, Gregor and Rodgers (1977) suggested, many authors have contributed to the development and further refinement of different aspects of the audit. Brownlie (1993) suggested a strategic role for the marketing audit as an instrument of intervention and change. Many authors have elaborated on general parameters for a set of guidelines, to encourage uniformity and commonality in conducting the audit. The use of a structured questionnaire to assist with the collection of uniform information (Kotler 1993) and the use of a checklist of diagnostic questions (Wilson 1993, Brownlie 1993) have been recommended. The marketing audit has also been considered as a necessary part of the marketing planning process. It has been suggested that the scope and nature of the marketing audit need to be broadened to include a global perspective (Rothe, Harvey and Jackson 1997). Some authoritative writers on the subject (Kotler 1977, Wilson 1993, Brownlie 1996b) view the marketing audit as an instrument to judge an organization‟s overall commitment to a marketing orientation.

LITERATURE REVIEW

To cope with and to exploit the opportunities created by the rapid changes in the marketing environment requires a substantial amount of accurate, comprehensive and action-oriented information. This information needs to be continually collected, analyzed, and disseminated to all managers in the organization who are involved in planning and contributing to the implementation, coordination and control of marketing activities (Jaworski et al 1993, McDonald 1996, Reed 1992, Pulendran 1996).

Some of the management‟s needs for continually updated information is provided through Marketing Information Systems (MkIS) and Marketing Decision Support Systems (MkDSS). But these technologically assisted information sources, although providing a substantial amount of information, do little more than the processing of historical and current information. The proper use of these techniques as decision-making tools requires analysis and interpretation of the information by the user. The more advanced method, Intelligent Marketing Information Systems (IMkIS) incorporates the capabilities of (MkIS) and Artificial Intelligence to provide management not only with data, but action oriented information. This system, however, has its limitation in being too narrow and lacking in wide application as a decision making tool (Amaravandi, Samaddar and Dutta 1995, Buttery and Tamaschke 1995).

Additionally, to apply short term reactive measures only to combat immediate problems would not be in the best interest of the long-term viability of an organization. To assist with the understanding of the substantial changes occurring in the internal and external marketing environments needed additional tools and processes. A deep and objective look at marketing objectives, strategies, policies and organization on a recurrent basis (Kotler et al 1977) would be a way to help managers to bring a company‟s offering in line with the market condition www.zenithresearch.org.in and expectations. The marketing audit, at the same time, can be an “efficient process for

developing effective measures and actions” (Bonoma 1988, p39). The market volatility in the

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 1970‟s resulted in increasing awareness of and interest in, the marketing audit by management (Kotler et al 1997).

The marketing audit is regarded as having four major characteristics (Kotler, Gregor and Rodgers 1977): It should be comprehensive and broad in focus covering the entire marketing environment of the company. It should be an objective exercise and independent of the managers directly involved in making the marketing decisions.

It should be a systematic and orderly sequence of diagnostic steps as compared to an unstructured and random investigation. It should be carried out periodically. The marketing audit should be undertaken on a regular basis and not only when major problems arise.

Considering these characteristics, Kotler et al (1977, p 29) formulated a definition for the marketing audit that, after 20 years still remains current. “A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company‟s - or business unit‟s – marketing environment, objectives, strategies, and activities with a view of determining problem areas and opportunities and recommending a plan of action to improve the company‟s marketing performance”.

There is no consensus in the process of conducting a marketing audit (Brownlie 1996b, McDonald and Leppard 1991). Marketing auditors, therefore, need to improvise their own specific method of conducting an audit based on a given situation and a specific task at hand (Brownlie 1996b).

There has been a consistent attempt by writers in the field to introduce general and broad parameters to encourage uniformity in the implementation of the marketing audit. Many authors advocate the use of a series of questionnaires in conducting a marketing audit (Kotler 1997, Brownlie 1996b). The auditor can use structured questionnaires to collect uniform information from relevant internal and external sources.

Wilson suggests the use of a checklist of diagnostic questions. Wilson‟s marketing checklist (1982) was revised in 1993 and offers a comprehensive, but not exhaustive list of questions for the marketing auditor to use. According to Wilson (1993), the auditor should use the checklist to collect data on a company‟s marketing operations and then compare the results to a set of benchmarks or expectations, which have been developed for the industry and the firm. This procedure also highlights the importance of establishing benchmarks.

The checklist, according to Brownlie (1996a), should be considered as a starting point and modified and tailored to suit the specific requirements of each audit situation. The major benefit of the checklist approach is to ensure that no important item is overlooked (Brownlie 1993).

Authoritative writers on the subject (Kotler 1977, Wilson 1993, Brownlie 1996) view the marketing audit as an instrument to judge an organization‟s: overall commitment to marketing orientation extent to which marketing objectives have been achieved appropriateness of the marketing strategic directions and tactical details.

Others have considered the marketing audit as a necessary part of the marketing planning

process (McDonald 1984; Kotler 1988; Enis and Garfein 1992). The major issue with the www.zenithresearch.org.in www.zenithresearch.org.in

current use of the marketing audit, apart from the lack of an acceptable uniformity and consistency in procedure in conducting it, is that it is costly to conduct a full audit and,

therefore, it may not be used frequently.

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ LIMITATIONS OF CURRENT LITERATURE

The literature basically deals with theoretical and conceptual aspects of the marketing audit. There are no contradictory views about the marketing audit‟s potential benefits. Since 1977 when Kotler, Gregor, and Rodgers published “The Marketing audit Comes of Age”, there has been only further elaboration of the concept (McDonald 1996, Brownlie 1993). The contributions by some authors have also been concentrated on providing advice on the logical and anecdotal usefulness of the marketing audit by providing isolated case studies and examples as part of the marketing planning process (Solod 1996, McGlinchey 1996, Lemmon 1996, and many more).

However, there is an apparent lack of an overall empirical study, in the published literature, of the application of the marketing audit, its realized benefits in improving management‟s decision making effectiveness, and management‟s evaluation of the audit.

Some of the current textbooks being used in universities present the marketing audit as a method of evaluation and a control mechanism and recommend it as a necessary part of the marketing planning process. However, there is no validation of the general practice of the marketing audit. The same situation exists in the major articles that have appeared in the marketing journals over the last few years. These articles predominantly describe and discuss the concept of the marketing audit and provide elaboration on different components and its related concepts

COMPONENT OF THE MARKETING AUDIT

Marketing audit should start with the market place at beginning and should explore the changes that are happening in the marketplace. Then the marketing audit will move to examine the company‟s marketing objectives and strategies, organization and systems. The marketing auditor may move to examine one or two key functions in more detail that are important to the marketing performance of the company. The marketing audit follows the following areas as components of marketing audit:

1. Environmental Audit

2. Macro Environmental Audit

3. Task Environmental Audit

4. Marketing Strategy Audit

5. Marketing Organization Audit

6. Marketing System Audit

7. Marketing Productivity Audit

8. Marketing Functions Audit

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 1. MARKETING ENVIRONMENT AUDIT

The auditor is firstly started their audit by looking at the factors that affect all companies operating in marketplace, and also looking at their customers and their profits. Under marketing environment audit, following two environments are concerned, because these are very important under the marketing audit.

THE MACRO-ENVIRONMENT

The Macro-environmental component examines six main areas, the detail depending on the involvement of the business and involvement required by the industry. Under marketing audit, the macro environment covers some environmental factors, like, Demographics – major demographic developments and trends pose opportunities, Economical factors - developments in income, prices, savings and credit will affect the company under that, Environmental factors, Technological factors - changes occurring in product and process technology and company's position in these technologies, Political factors - changes in laws and regulations might affect marketing strategy and tactics and the changes in the areas of pollution control, equal employment opportunity, product safety, advertising, price control, that affects the marketing strategy of company, Cultural - public's attitude towards business and toward the company's products and changes in customer lifestyles and values might affect the company,

THE TASK ENVIRONMENT

How competitive is the marketplace? What are competitors doing, and are they doing it well? What might they be preparing to do? These are all vital to understand in preparing yourselves for the battle. The task environment audit is evaluated under Markets - market size, growth, geographical distribution and profits and major market segments, under customers - customers' needs and buying processes and also product quality, service, sales force and price, Competitors, Distribution & dealers, Suppliers, Facilitators & marketing firms and Publics.

2. MARKETING STRATEGY AUDIT

The marketing strategy audit is vital for company, and the marketing audit is make sure that the company‟s marketing strategy is fit with company‟s marketing goals and objectives as well as corporate goals and objectives. Under the marketing strategy audit, the auditor evaluate marketing performance by evaluating marketing goals and objectives, company mission the move to the strategy of organization. Under strategy evaluation, the auditor may concern following type of questions:

Has the management articulated a clear marketing strategy for achieving its marketing objectives?

Is the strategy convincing?

Is the company using the best basis for market segmentation?

Does the company have clear criteria for rating the segments? www.zenithresearch.org.in

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Has the company developed an effective positioning and marketing mix for each target segment?

3. MARKETING ORGANIZATION AUDIT

The marketing organization audit is mainly considered effectiveness of the organization activities as well as efficiency of operation of company. Here all the activities and main management functions are considered such as manufacturing, purchasing, financing as well as research and development. Here the marketing auditor must make sure that the company is actually achieved the effectiveness within the organization and also within the marketplace. And also following types of questions are considered by marketing auditors:

Are there good communications and working relations between marketing and sales?

Is the product-management system working effectively?

Are product managers able to plan profits or only sales volumes?

4. MARKETING SYSTEM AUDIT

Here the marketing auditor is considered whether the company is using appropriate marketing systems to collect the information, plan the activities, control the operations and to maintain smoothly their day to day activities and whether these systems are properly worded within the company or not. Those are the main things, the marketing auditor must consider under marketing systems audit. Most of the organizations are today having different type of marketing systems to collect the information and control the operation. Such as marketing information systems, marketing planning systems, marketing control systems and new product development systems. These systems have its own functions. Here the marketing auditor task is to make sure whether the systems are properly worked or not.

5. MARKETING PRODUCTIVITY AUDIT

Most of the companies are operating to earn so much of profits. The marketing productivity audit is focused on evaluate the company profits and revenue. So the marketing productivity audit is very important to evaluate the marketing performance. The marketing auditor is used profitability analysis and cost effectiveness analysis for their evaluation process. Under the marketing productivity audit, following type question asked by marketing auditor:

What is the profitability of the company's different products, markets, territories and channels of distribution?

Should the company enter, expand, contract or withdraw from any business segments?

Do any marketing activities seem to have excessive costs?

Can cost-reducing steps be taken?

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 6. MARKETING FUNCTION AUDIT

Under the marketing function audit, the auditor is using marketing mix elements to analyze company functions such as product, price, place and promotion. Here marketing auditor evaluates marketing performance by asking questions under product, price, place and promotion such as

What are the company's product-line objectives?

Which products should be phased out?

Which products should be added to?

What are the company's pricing objectives, policies, strategies and procedures?

To what extent are the prices set on cost, demand and competitive criteria?

Do the customers see the company's prices as being in line with the value of its offer?

What is the organization‟s advertising objectives?

Is there adequate market coverage and service?

Should the company consider changing its distribution channels?

Is the right amount being spent on advertising?

What do customers and the public think about the advertising?

MARKETING AUDIT TOOLS AND TECHNIQUES

Marketing audit is very important and crucial part in the marketing planning process. It is not only carried out at the beginning of the marketing planning process but also it can be implemented during the marketing planning process. The marketing audit can be influenced on marketing planning process through various external and internal factors. Here there are number of marketing audit tools and techniques that are used during the marketing planning process to evaluate the marketing performance of an organization. The following analysis tools are utilized during a marketing audit:

 SWOT ANALYSIS

The one of the most importance tools in the marketing audit is SWOT analysis or can be express as Strength, Weaknesses, Opportunities and Treats analysis. This tool is very much important to marketers and is used at the beginning of the marketing audit process. The SWOT has lot of advantage as well as it has some disadvantages. Some of disadvantage of SWOT analysis are that it is very subjective and cannot be relied on too much. However, most of the companies are used this SWOT analysis as tools to evaluate the marketing performance of an organization. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external

factors. The SWOT analysis can be express as below:- www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Strengths and weaknesses are internal factors that create value or destroy value. They can include assets, skills, or resources that a company has at its disposal, compared to its competitors. They can be measured using internal assessments or external benchmarking.

Internal

Strength Weakness

SWOT

External

Threats Opportunity

Some strengths of an organization are as follows::

 Your specialist marketing expertise

 A new, innovative product or service

 Location of your business

 Quality processes and procedures

 Any other aspect of your business that adds value to your product or service

Some weaknesses of an organization are as follows:

 Lack of marketing expertise

 Undifferentiated products or services (i.e. in relation to competitors)

 Location of your business

 Poor quality goods or services

 Damaged reputation

Opportunities and threats are external factors that create value or destroy value. A company cannot control them. But they emerge from either the competitive dynamics of the industry/market or from demographic, economic, political, technical, social, legal or cultural

factors (PEST). www.zenithresearch.org.in www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Some opportunities of an organization are as follows::

 A developing market such as the Internet

 Mergers, joint ventures or strategic alliances

 Moving into new market segments that offer improved profits

 A new international market

 A market vacated by an ineffective competitor

Some threats of an organization are as follows:

. A new competitor in your home market.

. Price wars with competitors.

. A competitor has a new, innovative product or service.

. Competitors have superior access to channels of distribution.

. Taxation is introduced on your product or service.

T W O S MATRIX

The auditor can use this TWOS analysis to analyze external environment (threats and opportunities), and internal environment (weaknesses and strengths). The auditor can use this technique to think about the strategy of whole organization, a department or a team. Auditor can also use them to think about a process, a marketing campaign, or even company own skills and experience.

TOWS Matrix, helps the auditor to think about the options that company could pursue. To do this auditor match external opportunities and threats with company internal strengths and weaknesses, as illustrated in the matrix follows:

TOWS STRATEGIC ALTERNATIVES MATRIX

External Opportunities (O) External Threats (T)

1. 1.

2. 2.

3. 3.

4. 4.

Internal Strengths (S) SO ST

1. "Maxi-Maxi" Strategy "Maxi-Mini" Strategy www.zenithresearch.org.in

Strategies that use strengths Strategies that use strengths

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 2. to maximize Opportunities. to Minimize threats.

Internal Weaknesses (W) WO WT

1. "Mini-Maxi" Strategy "Mini-Mini" Strategy

2. Strategies that minimize Strategies that minimize weaknesses by taking weaknesses and avoid 3. advantage of opportunities. threats. 4.

This helps the auditor to identify strategic alternatives that address the following additional questions:

 Strengths and Opportunities (SO) - How can company use their strengths to take advantage of the opportunities?

 Strengths and Threats (ST) - How can the company take advantage of their strengths to avoid real and potential threats?

 Weaknesses and Opportunities (WO) - How can company use their opportunities to overcome the weaknesses company is experiencing?

 Weaknesses and Threats (WT) - How can company minimize their weaknesses and avoid threats?

PEST ANALYSIS

Here a marketing analysis should be taken into consideration all the environmental factors and will give it a careful analysis. These environmental factors may be internal or external. The internal factors consist of the staff and queries related to them. The external would be the external customer and the various distributors and the political and economic factors are also taken into consideration.

This PEST analysis has various factors that have an effect on the marketing planning process. The PEST analysis tool is a valuable framework for identifying opportunities and threats in the macro (external) environment. It works through the various components of the macro environment and prompts the company to look at the specific areas in depth. This analysis tool is extremely important to any marketing audit, simple or complex; as it drives the company to investigate what factors may help or impede them to carry out business and marketing activities. The PEST analysis can be express as follows.

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P – Political

PEST E: Environmental Analysis S: Social

T: Technological

 POLITICAL FACTORS

Political factors can have a direct impact on the way business operates. Decisions made by government affect the operations of units within the company to a varying degree. Political refers to the big and small „p‟ political forces and influences that may affect the performance of, or the options open to the unit concerned. The political factors have a huge influence upon the regulation of public and private sector businesses, and the spending power of consumers and other businesses. Political factors include government regulations and legal issues and define both formal and informal rules.

 ECONOMIC FACTORS

All businesses are affected by economical factors nationally and globally. Whether an economy is in a boom, recession or recovery will also affect consumer confidence and behavior. This will impact upon the nature of the competition faced by the company and particular units within the company, upon service provision, and upon the financial resources. Economic factors affect the purchasing power of potential customers, and the state of the internal/external economy in the short and long-term. The unit may need to consider: economic growth, interest rates, inflation rate and inflation rate.

 SOCIAL /CULTURAL FACTORS

Social factors will include the demographic changes, trends in the way people live, work and think and cultural aspects of the macro environment. These factors affect customer needs and the size of potential markets such as population growth rate, age distribution, career attitudes, internal/external emphasis on safety and internal/external attitudes to change.

 TECHNOLOGICAL FACTORS

New approaches to doing new and old things and tackling new and old problems do not necessarily involve technical factors, however, technological factors are vital for competitive advantage, and are a major driver of change and efficiency. Technological; factors can for example lower barriers to entry, reduce minimum efficient production levels, and influence

outsourcing decisions. New technology is changing the way business operates. The Internet is www.zenithresearch.org.in having a profound impact on the strategy of organizations. Technological revolution means a

faster exchange of information beneficial for businesses as they can react quickly to changes

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ within their operating environment. For examples automation, technology incentives, rate of technological change, perception of technological change within the unit and stakeholder expectation.

FIVE FORCE MODEL

This Five Force analysis is very effective analysis that enables the marketer to have a clear picture of the competition and it can measure the attractiveness of the industry. In this analysis the marketer basically goes through five basic areas of concern. The areas can be identified into five areas among competitors, bargaining power of customers and bargaining power of suppliers. There are some advantages in this analysis; it leads to economics of large scale with the help of mass purchasing and sales. This is also very effective analysis to audit the marketing performance of an organization.

Threat of New Entrant

The Rivalry The Bargaining Bargaining Power of among competitors Power of Suppliers Buyers

Threat of Substitute Products  THE THREAT OF SUBSTITUTE

The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand)

buyer propensity to substitute

relative price performance of substitutes

 THREATS OF NEW ENTRANT

Profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition).

The existence of barriers to entry (patents, rights, etc.)

Economies of product differences www.zenithresearch.org.in www.zenithresearch.org.in

Brand equity

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/  RIVALRY AMONG COMPETITORS

For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc.

Number of competitors

Rate of industry growth

Intermittent industry overcapacity

 THE BARGAINING POWER OF BUYERS

The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes.

Buyer concentration to firm concentration ratio

Degree of dependency upon existing channels of distribution

 THE BARGAINING POWER OF SUPPLIERS

Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.

Supplier switching costs relative to firm switching costs

Degree of differentiation of inputs

Presence of substitute inputs

Supplier concentration to firm concentration ratio

BIBLIOGRAPHY

Barney JB (1991). Firm resources and sustainable competitive advantage.

J. Manage. 17 (1): 99-120.

Bonoma, Thomas V. and Bruce H. Clark (1988), Marketing Performance Assessment, Harvard Business School Press, Boston, Massachusetts Brownlie, Douglas (1996a), “The Conduct of Marketing Audits: a Critical Review and Commentary,” Industrial Marketing Management, January, 25 (1), 11-22.

Brownlie, Douglas (1993), “The Marketing Audit: A Metrology of Explanation,” Marketing Intelligence and Planning, 11 (1), 4 -12.

Brownlie, Douglas (1996b), “Marketing Audits and Auditing: D iagnosis www.zenithresearch.org.in

Through Intervention,” Journal of Marketing Management, 12, 99 -112.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Buttery, Alan and Rick Tamaschke (1995), “Marketing Decision Support System in a Small Trading Nation: An Australian Case Study,” Marketing Intelligence and Planning,” Vol. 13 No. 2, 14-28.

Cohen WA (1991). The practice of marketing management, Macmillan Publishing Company, 580-583.

Enis, Ben M. and Stephen J. Garfein (1992), “Computer Driven Marketing Audit: An Interactive Approach to Strategy Development,” Journal of Management Inquiry, 1(4). 306-317.

Heracleous L (2003). Strategy and organization: realizing strategic management, Cambridge University Press, pp. 13-15.

Jaworski, Bernard and Ajay K. Kohli (1993), “Market Orientation: Antecedents and Consequences,” Journal of Marketing, 57 (3), 53-70.

Kotler P, Gregor W, Rogers W (1977). The marketing audit comes of age, Sloan Manage. Rev. 18(2): 25-43.

Kotler, Philip (1967), Marketing Management: Analysis, Planning, and Control, Englewood Cliffs, N. J. Prentice-Hall, Inc.

Kotler, Philip (1988), Marketing Management: Analysis, Planning, Implementation, and Control, 6th ed. Englewood Cliffs, N. J., Prentice Hall International.

Kotler, Philip (1997), Marketing Management: Analysis, Planning, Implementation, and Control, 9th ed. Upper Saddle River, N. J., Prentice Hall.

Kotler, Philip, Peter FitzRoy and Robin Shaw (1980), Australian Marketing Management, Sydney, Prentice Hall of Australia.

Kotler, Philip, William Gregor and William Rodgers (1977), “The Marketing Audit Comes of Age,” Sloan Management Review, Winter, 25-

44.

Lemmon, Nicolette (1996), “Keeping Pace with the Changing Market,” Credit Union Management, January, 19(1), 40-41.

McCarthy EJ, Perreault WD Jr (1993). Basic marketing: a global managerial approach, Richard D. Irwin, Inc. 631-633.

McDonald, Malcolm (1984), Marketing Plans: How to Prepare Them, How to Use Them. London, Heinemann. On behalf of the Institute of Marketing and the CAM Foundation.

McDonald, Malcolm (1996), “Strategic Marketing Planning: Theory, www.zenithresearch.org.in

Practice and Research Agenda,” Journal of Marketing Management, 12, 5-

27.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ McDonald, Malcolm and John Leppard (1991), The Marketing Audit: Translating Marketing Theory into Practice. Oxford, Butterworth, Heinemann.

McGlinchey, Dick (1996), “Doing Your Own Marketing Audit,” Marketing Computers, 16(April) (4), 26-28.

Pulendran, Subashini (1996), “Marketing Planning, Market Orientation and Performance: An Empirical Study of Practices in Australian Organisations,” doctoral dissertation, Melbourne Business School, University of Melbourne.

Reed, Peter W. (1992), Marketing: Planning and Strategy, Sydney, Harcourt Brace Jovanovich Group (Australia).

Rothe, James T., Michael G. Harvey and Candice E. Jackson (1997), The Marketing Audit: Five Decades Later,” Journal of Marketing Theory and Practice, 5 (3), 1-16.

Schewe CD, Smith RM (1983). Marketing: concepts and applications, McGraw-Hill, Inc. pp. 593-595.

Solod, Margaret E. (1996), “Conducting a Marketing Audit: A Service Organization Illustration,” Journal of Professional Services Ind ustry, 14(2), 39-54.

Stevens R.E, Loudon D L, Wrenn B, Mansfield P (2005). Marketing planning guide, Haworth Press.

Sutcliffe, John (1975), The Marketing Audit. The PA Australian Management Series, Melbourne, Hutchinson of Australia.

Wernerfelt B (1984). A resource-based view of the firm, Strategic Manage. J. 5: 171-190.

Wilson, Aubrey (1982), Marketing Audit Checklist: A Guide to Effective

Marketing Resource Realization, London, McGraw Hill.

Wilson, Aubrey (1993), Marketing Audit Checklist: A Guide to Effe ctive Marketing Resource Realization, 2nd Edition, London, McGraw Hill.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TRENDS OF SELECTED MALLS TOWARDS CONSUMERS

CHIRAG V. RAVAL*; DR. RAJENDRA V. RAVAL**; DR. PINAKIN R.SHETH***

*I/C. Principal, AIMS College of Management & Technology, Vallabh Vidyanagar - Vadtal Road, Bakrol. Dist. Anand, Gujarat. **Professor, C. C. Sheth College of Commerce, Navgujarat Campus, Ashram Road, Ahmedabad. ***Associate Professor, P. G. Department of Business Studies, Sardar Patel University, Vallabh Vidyanagar.

ABSTRACT

The Mall is complete shopping experience with the availability at choices, so many brands, impeccable ambience and food under one single roof. The marketing activity has been in the business for long but it was not recognized as an organized function and an organized activity very crucial to the growth of an organization. The paper deals with Introduction, consumer behavior, profile of selected malls, result and discussion, findings and suggestions and conclusion. It can be say that it was found that most of consumers take decision for the choice of Malls by them. Retailers should keep themselves and the units updated with the latest entrant product in the market to retain their consumers.

KEYWORDS: Trends, Retail, Consumers, Malls. ______

INTRODUCTION

"Welcome to the era of retail marketing in India.

Indian retail marketing gears up for global heights. Retailing in India has a long haul ahead, dynamic retail-marketing scenario. The Indian retail players have made their presence felt in the market and are increasing their operations through adding more outlets across the country. The world is now looking at India as the nation of the future.

The retail marketing scenario in India is unique; Retailing forms an integral part of the marketing mix and includes elements like product, Price, Place, Promotion. Place refers to the distribution and availability of products in various locations. In retailing direct marketing and advertising through mass media are useful factors for personal contact with consumers; so that the retail industry should emphasis on innovative advertising, communication and promotions help customers make purchase decision easily. The promotion is an additional method to generate sales and is used n combination with other methods.

Retailing is the booming sectors of India in the current scenario. The word retail is derived from the French word „retailer‟, meaning to cut a piece of or to break bulk. In simple terms, it implies a firsthand transaction with the customer. The word „Retail‟ is derived from a French ford with the prefix „re‟ and the verb „trailer‟ meaning “to cut again”. Thus, retail trade is one that cuts off smaller portions from large lumps of goods. It is a process through which goods www.zenithresearch.org.in are transported to final consumers. It consists of the all activities involved in selling, renting

and providing goods and services to ultimate customers for personal, family and household

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ use. Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates customer value & has a significant impact on the economy.

CONSUMER BEHAVIOR

We all are consumers. We consume things of daily use; we also consume and buy these products according to our needs, preferences and buying power. These can be consumable goods, durable goods, specialty goods or, industrial goods.

OBJECTIVES OF THE STUDY

1. To know the facilities provided by the Mall organization to consumers.

2. To extract the source of information through which, consumer came to know about various Malls

3. To identify problems faced by consumer while purchasing through Mall.

4. To know the factors influencing the selected malls while selecting a particular action towards malls.

HYPOTHESIS

Ho: There is no significance relation between the facilities provided by the Mall and customer satisfaction.

H1: There is significance relation between the facilities provided by the Mall and customer satisfaction.

SOURCES OF DATA

In order to achieve the objectives of the present study, there are two types of data collection methods1. Primary data 2.Secondary data

DATA COLLECTION METHOD

In this study, I used a personal survey method which is the face to face questioning and answering to consumers.

FIELD WORK

The present study was carried out at selected Malls in Ahmedabad, Gujarat.

SAMPLE SIZE

A sample of four (4) Malls from Ahmedabad city.

SAMPLING METHOD

Non-probability quota sampling method was used www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ REVIEW OF LITERATURE

1. Meyer tries to bring out the importance of first impressions in selecting retail outlet by a customer. He discusses as to how first impression are formed and how a successful retailer can use this knowledge to his or her advantage. (Meyer, G.Warren, Harris, G.Edward., Kohns, P.Donald., and stone III, R.James. Retail Marketing, 8th edition, Mc-graw Hill international, Singapore – 1988.) 2. In one of the chapters entitled “the retailing revolution”, Davison, et.al., highlights the origin and the decades of changes that has taken place in global retailing since the end of world war II and thereafter. He says that change is now a constant factor in retailing. Almost any social, economic or political event of consequence will affect how consumers decide and behave in the market place. Retailers must recognize charge, adapt to it, and prosper from it if not, their competitors most surely will.(Davidson, R. William., Sweeney J. Daniel, and Stampfl, W.Ronald, Retailing Management, John Wiley & Sons, USA, 1988.)3. Today shoppers want the total customer experience: superior solutions to their needs, respect, an emotional connection, fair price and convenience. Berry in his article brings out five pillars for the success of any retail business. (Bery, B.Leonard, “The old pillars of new retailing” Harvard business Review, April 2001, p.131-137.)

PROFILE OF SELECTED MALLS

HIMALAYA MALL

Himalaya Mall situated in the prime location of the city, Himalaya Mall is a centrally air conditioned Mall which has stores of all the major brands related to clothes men and women, shoes, accessories etc. Himalaya Mall located at near Indraprasth Tower, Drive in Road, Memnagar, Ahmedabad 380 052.

PYRAMID MALL

Pyramid Mall is about one kilometer away from C.G.Road. It is a favorite destination amongst the locals of the city. It consists of many stores and ships of popular brand. It also has restaurants and coffee shop where you can enjoy during your shopping. Pyramid Mall located at near Parimal Garden, Elisbridge, Ahmedabad – 380 006.

BIG BAZAAR

Big Bazaar located in west Ahmedabad, Big Bazaar is one of the popular and famous Malls in the city. It comprises all the famous brands in categories of garments, electronics, cosmetics, accessories, shoes etc. under one roof. Big Bazaar located Nr. ISCON Temple, S.G. Highway, Ahmedabad.

KSHITIJ

The Mall is accessible from all parts of the city. With large residential developments coming up, it also has a strong consumer base. Given consumer preference and potential, the Mall has a lifestyle and fashion focus. Kshitij located at satellite road, Ahmedabad. Development of mega Malls in India is adding new dimensions to the booming retail sector.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ RESULTS AND DISCUSSION

This result is based on primary data gathered by administering questionnaires to 4 (Four) Malls in Ahmedabad city. This result discusses trends of retail Malls toward consumers.

Malls located in a commercial area to cater to larger consumer base. The retailers stated that availability of transportation facilities, situating on a busy main road and locating in a densely populated area were the main consideration for identifying the location of their outlets.

(TABLE 1: PROVIDE BETTER SERVICES TO CUSTOMERS)

Sr. Better services Respondents % of Respondents No.

1 Yes 4 100

2 No 0 0

Total 4 100

(TABLE 2: TYPES OF SERVICES PROVIDE TO CUSTOMERS BY MALLS)

% of respondents Sr. Facilities Very Less Not No. IMP Neutral IMP IMP IMP.

1 Store atmosphere 3 1 0 0 0

2 Relaxation and enjoyment 2 2 0 0 0

3 More space to move in 2 2 0 0 0

4 A good elevator system 3 1 0 0 0

5 Convenient layout at the Malls 1 3 0 0 0

6 Easily accessible billing counters 3 1 0 0 0

7 Trail rooms 3 1 0 0 0

8 Easily locatable stairs 3 1 0 0 0

9 Ample parking space 3 1 0 0 0

10 Prolonged experience 1 3 0 0 0 www.zenithresearch.org.in www.zenithresearch.org.in

11 Promotion schemes 1 3 0 0 0

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ % of Respondents

17% 25%

Through television Newspapers Hoardings 33% Any other 25%

(GRAPH 1: GIVING THE INFORMATION TO THE CONSUMER ABOUT VARIOUS OFFERS)

(TABLE 3: TIME PREFERRED BY CONSUMERS FOR VISIT THE MALLS)

Sr. Time Respondents % of Respondents No.

1 Morning 0 0

2 Afternoon 0 0

3 Evening 4 100

(TABLE 4 : DAY PREFER BY CONSUMER FOR VISIT THE MALLS)

Sr. No. Days Respondents % of Respondents

1 Sunday 2 50

2 Monday 0 0

3 Tuesday 0 0

4 Wednesday 1 25

5 Thursday 0 0 www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 6 Friday 0 0

7 Saturday 0 0

8 Any day 1 25

(TABLE 5: TIME SPEND BY CONSUMERS IN THE MALLS)

Sr. Time Spend Respondents % of Respondents No.

1 Less than 15 minutes 0 0

2 15 minute to 30 minute 0 0

3 More than 30 minutes 4 100

(TABLE 6: TYPES OF PRODUCTS DEMAND MORE FROM CONSUMERS IN THE MALLS)

Sr % of respondents Products No. Regularly Sometimes Never

1 Books 1 3 0

2 Grocery 1 3 0

3 Food 4 0 0

4 Entertainment 3 1 0

5 Cosmetics 1 3 0

6 Electronics 0 4 0

7 Furniture 1 3 0

8 Home décor 0 4 0

9 Clothes 3 1 0

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ (TABLE 7: THINKING OF MALLS TOWARDS PROVIDING BETTER SERVICES TO CONSUMER HELP TO IMPROVE THE RETAIL MARKET)

Sr Think Respondents % of respondents No

1 Yes 4 100

2 No 0 0

3 Don‟t know 0 0

Consumer's visit per day (approx.)

Kshitij 19% Pyramid 26%

Himalaya Big bazaar 32% 23%

(GRAPH 2: PROFILE OF THE MALLS AT AHMEDABAD)

HYPOTHESIS TESTING

(TABLE 8: FACILITIES PROVIDED BY PYRAMID)

Very Less Not

No. Facility Imp/4 Neutral/3 Total Mean

Imp/5 Imp/2 Imp/1

Store 1 85 20 9 0 0 114 4.56 Atmosphere

Relaxation and 2 35 36 24 2 0 97 3.88 enjoyment

More space to 3 45 48 12 0 0 105 4.20 move in

A good elevator www.zenithresearch.org.in 4 30 36 24 4 0 94 3.76

system

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Convenient 5 layout at the 35 32 18 4 2 91 3.64 Malls

Easily 6 accessible 40 28 9 12 1 90 3.60 billing counters

7 Trail rooms 60 28 12 2 1 103 4.12

Easily locatable 8 40 40 15 2 1 98 3.92 stairs

Ample parking 9 40 28 18 6 1 93 3.72 space

Prolonged 10 30 48 12 6 0 96 3.84 experience

Promotion 11 45 28 18 4 1 96 3.84 scheme

Total 43.08

Mean 3.92

It is evident from above graph that various facility provided by pyramid Malls during the study period according to sleeted respondent It shows overall grade 3.92 i.e. nearly important.

The response of respondent regarding stores atmosphere facility is very important whereas easily accessible billing counters was neutral.

(TABLE 9: FACILITIES PROVIDED BY BIG BAZAAR)

Very Less Not

No. Facility Imp/4 Neutral/3 Total Mean Imp/5 Imp/2 Imp/1

1 Store Atmosphere 65 28 12 2 0 107 4.28

Relaxation and 2 30 48 15 4 0 97 3.88 enjoyment

3 More space to move in 35 48 18 0 0 101 4.04

A good elevator 4 35 32 21 6 0 94 3.76

system www.zenithresearch.org.in www.zenithresearch.org.in

5 Convenient layout at 35 28 21 6 1 91 3.64

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ the Malls

Easily accessible 6 50 20 15 8 1 94 3.76 billing counters

7 Trail rooms 55 24 15 2 2 98 3.92

8 Easily locatable stairs 50 36 12 2 1 101 4.04

9 Ample parking space 45 36 15 4 0 100 4.00

10 Prolonged experience 35 32 18 6 1 92 3.68

11 Promotion scheme 50 24 18 4 1 97 3.88

Total 42.88

Mean 3.90

While discussing with consumers it was revealed that many facilities provided by Big Bazaar Malls. It state overall grade 3.90 i.e. nearly important.

The response of respondent regarding stare at morpheme facility is very important whereas convenient layout at the Malls was neutral.

(TABLE 10: FACILITIES PROVIDED BY KSHITIJ)

Very Less Not No. Facility Imp/4 Neutral/3 Total Mean Imp/5 Imp/2 Imp/1

1 Store Atmosphere 75 24 12 0 0 111 4.44

Relaxation and 2 40 36 18 4 0 98 3.92 enjoyment

More space to move 3 25 56 15 2 0 98 3.92 in

A good elevator 4 20 60 15 2 0 97 3.88 system

Convenient layout at 5 20 36 27 4 1 88 3.52 the Malls

Easily accessible 6 25 52 12 4 1 94 3.76

billing counters www.zenithresearch.org.in www.zenithresearch.org.in

7 Trail rooms 65 24 12 2 1 104 4.16

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Easily locatable 8 45 36 18 0 1 100 4.00 stairs

9 Ample parking space 40 24 21 6 1 92 3.68

Prolonged 10 25 52 9 6 1 93 3.72 experience

11 Promotion scheme 50 24 15 6 1 96 3.84

Total 42.84

Mean 3.89

The above graph shows that various facilities provided by Kshitij Malls to consumers. It disclose overall grade 3.89, i.e. nearly important.

The response of respondent regarding store atmosphere facility is very important whereas convenient lay out at the Malls was neutral.

(TABLE 11: FACILITIES PROVIDED BY HIMALAYA)

Very Less Not No. Facility Imp/4 Neutral/3 Total Mean Imp/5 Imp/2 Imp/1

1 Store Atmosphere 65 32 12 0 0 109 4.36

Relaxation and 2 30 44 21 2 0 97 3.88 enjoyment

3 More space to move in 40 32 24 2 0 98 3.92

4 A god elevator system 35 40 18 4 0 97 3.88

Convenient layout at 5 40 40 9 6 1 96 3.84 the Malls

Easily accessible 6 35 24 18 10 1 88 3.52 billing counters

7 Trail rooms 35 36 18 4 1 94 3.76

8 Easily locatable stairs 45 40 12 2 1 100 4.00

9 Ample parking space 45 32 15 6 0 98 3.92

10 Prolonged experience 35 44 15 4 0 98 3.92 www.zenithresearch.org.in

11 Promotion scheme 40 32 12 8 1 93 3.72

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Total 42.72

Mean 3.88

It is exhibits from above graph that many facility provided by Himalaya Malls during the study period It revealed overall grade 3.88, i.e. nearly important

The response of respondent regarding store at morpheme facility is very important whereas easily accessible billing counters were neutral.

Mean 4.22 4.2 4.18 4.16 4.14

Axis Title Axis 4.12 4.1 4.08 4.06 Pyramid Big Bazaar Kshitij Himalaya Mean 4.2 4.12 4.12 4.16

(GRAPH 3: SATISFACTION LEVEL OF CONSUMERS)

While discussing with consumers it was revealed that consumers are satisfied with services and facilities provided by Malls .It shows overall grade 4.15,i.e. satisfied.

(TABLE 12: OVERALL BEHAVIOR OF CONSUMERS TOWARDS MALLS)

No. Malls Mean

1. Pyramid 3.92

2. Big Bazaar 3.90

3. Kshitij 3.89

4. Himalaya 3.88

Total 15.59

Mean 3.90 www.zenithresearch.org.in www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ It is evident from above table that various facilities provide by Malls to consumers during study period (according to selected respondents). It shows overall grade 3.90, i.e. nearly important.

From above table it can be say that, the overall satisfaction level of consumers are 4.15, i.e. nearly satisfied. Whereas the facilities level provided by various Malls to consumers are 3.90, i.e. nearly important. It means consumers are satisfied with facilities provided by various Malls.

So, from above result we can reject the null hypothesis and we can accept the alternative hypothesis.

FINDINGS

 It is evident from above table that out 4 Malls 100% Malls have provide better services to customers.

 It was found that all are interested in providing better services to customers.

 It means it was found that all major services are very important to provide customers.

 It was found that most of information supplied through newspaper, hoardings, and their own announcement systems.

 It was found that most of consumers prefer evening and no one is interested to visit the mal at morning and afternoon.

 It was observed that most of consumers interested Sunday and any day for visit the Malls.

 It was observed that most of consumers (100%) spend more than 30 minutes in the Malls.

 It was observed that food demands regularly and electronics and home décor demand sometimes in the Malls by consumers.

 While discussing with Malls management it was found that 100% Malls are thinking

towards providing better services to consumers

 It can be say that most of consumers visit the Malls.

SUGGESTIONS

While discussing with management of 4 (four) Malls. Mall oraganizers were interviewed and requested to answer the questionnaire. They were contacted personally to avoid misunderstanding. On the basis of many findings, there are many suggestions needed to improve the management of Malls, the suggestions are as follows:

 Pyramid and Kshtij should advertise their services towards consumers through

advertising of mass media or other sources. So that they increase the rush of www.zenithresearch.org.in

consumers towards their Mall.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/  There should be continuous research and development for the development of the Mall.

 Retailers should keep themselves and the units updated with the latest extrant product in the market to retain their consumers.

 Mass media like television, newspapers etc. are to be extensively used for the purpose of publicity.

 The customer has to keep himself always updated with the latest development in the retail industry so that he can reap the maximum benefits offered by the retailers.

 Consumers can restrict their purchases within their budget for provisions.

 Now a day‟s various services provided by retailer, the customer can derive the maximum benefits and comforts from his purchase.

 The customer may check the authenticity in schemes and may calculate real benefit.

 Pyramid and Himalaya Mall should increase easily accessible billing counters for consumers.

 Big Bazaar and Kshitij Mall should improve the convenient layout in the Mall.

CONCLUSION

Retailing in India is becoming increasingly important, and organized retailing is posed to grow at an exponential rate. These growth opportunities have even attracted global majors who are setting up shop in India. With consumers now enjoying a wide variety of products and services to choose from, retailers who provide genuine value will be able to establish themselves in the long run. Consumers will emerge as the emperors of retailing in India with their discerning buying attitudes and their ever increasing purchasing power. Consumerism will empower them significantly. The growth of the retail sector will make retailers powerful intermediaries in the marketing channel, bridging the gap between manufacturers and consumers. Many manufacturers and marketers may hence take to retailing themselves to be

closer to the consumers. Therefore it will be the power of the consumer as well as that of the retailer in the marketing channel that will spearhead the growth of retailing in India.

REFERENCES

. BOOKS

Chunawalla S.A., Contours of Retailing Management, Mumbai, Himalaya Publishing House, First Edition, 2006.

Dhotre, Meenal, Channel Management and Retail Marketing, Mumbai,

Himalaya Publishing House, First Edition, 2005. www.zenithresearch.org.in www.zenithresearch.org.in

Levy, Michad and Weitz A barton, Retailing Management, New Delhi,

Tata McGraw-Hill Publishing Co. Ltd., Fifth Edition, 2003.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Nair Suja, Retail Management, Mumbai, Himalaya Publishing House, First Edition, 2006.

Vedmani Gibson G., Retail Management functional Principles & Practices, Mumbai, Jaico Publishing House, Second Edition, Revised & Enlarged, 2004.

MAGAZINES AND JOURNALS

4PS Business and Marketing, Vol.-2, issue 11, 6 July-19 July, 2007.

Business India, November 18, 2007.

Business Today, Fortnightly Magazine, December 16, 2007.

Indian Journal of Marketing, Volume -37, No. 10, October-2007.

Retail Vol. 7, No.1, January, 2008.

Retail, Vol.-6, No.9, September, 2007.

Retailer, India Edition, Vol. -2, No. 4, 15th August – 30th September, 2007.

Retailer, India Edition, Vol. -2, No. 5, October, 2007.

Retailer, India Edition, Vol. -2, No. 8, 15th January- 14th February, 2008.

NEWSPAPERS

The Economic Times, Sunday, 30 th December, 2007.

The Economic Times, Monday, 31 st December, 2007.

The Economic Times, Thursday, 14 th February, 2008.

WEBLIOGRAPHY

www.imagesretail.com

www.retailindustry.com

www.retailnews.com

www.retailsector.co.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ INNOVATIVE APPROACH TOWARDS DELIVERING EDUCATION

MS. SHIKHA GUPTA*

*Research Scholar, DHSS, Motilal Nehru National Institute of Technology, Allahabad.

ABSTRACT

Education is central to development and a key to attaining the Millennium Development Goals. It is one of the most powerful instruments for reducing poverty and inequality and lays a foundation for sustained economic growth. The Government of developing countries are formulating policies to help countries integrate education into national economic strategies and develop holistic education systems responsive to national socio economic needs. The impact of technology is and can be extremely significant as far as the education sector is concerned. It is only through the use of technology that we can negate the importance of physical presence and reach every child in every corner of this country. This flattening of the world will help us in reaching out to not only various schools and children of the country but the world as well. The use of technology also makes the entire process of learning not only interesting but more impactful as well. The education sector has, unfortunately, always held a reputation of being a laggard as far as technology adoption goes. The paper trying to delineate how information technology can help to improve the quality of the education system in the conventional Indian Classrooms.

KEYWORDS: Education, Information Technology, Tech- friendly, Development, Computer, Holistic education system. ______

1. INTRODUCTION

The main purpose of the Strategy for Information and Communication Technology Implementation in Education is to provide the prospects and trends of integrating information and communication technology (ICT) into the general educational activities. Being aware of the significant role of ICT (internet) in our life, especially in the educational activities, education authorities should be wise enough in implementing the strategies to empower ICT in supporting the teaching and learning process in the classroom. ICT is not just the bloom of the educational activities, but also it will be the secondary option to improve the effective and meaningful educational process. Shakeel Ahmad, former Minister of State for Communications and Information Technology of India said that the skilled human resources available in the country have made India a global hub for IT. Rajendra S. Pawar, Chairman, NIIT Group, India, said that there are great opportunities in India. By 2020, there will be a shortage of 50 million in the working-age population of the developed world, while India will have a surplus of 47 million. He said that the post-industrial period is a "century of the mind", and if the population is provided with education and skills, India will gain from the demographic dividend. The government should concentrate on primary education. In the nutshell we can say the future of India will be fashioned in her classrooms. While India has

made great strides in improving its education system, much still remains to be done. www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 2. GLITCHES IN CURRENT EDUCATION SYSTEM

Despite impressive achievements over the past years, significant concerns remain. The major problems at school level education systems are given below. According to the report of Indian Education together with District Primary Education Programme (DPEP) Baseline Survey, only six to eight students qualify for higher education out of hundred students enrolled in class one. Majority of them qualify in third division and have poor performance especially in english, mathematics and science subject.

1. PERFORMANCE- The major reasons of poor performance include poor quality of schooling and management, lack of school facilities, distance from the schools, poor quantity and quality of teachers, lack of female teachers, school expenses and demand of child labor.

2. TEACHERS TRAINING - There are large number of under qualified teachers who need further professional education and training as they work. It was estimated that 51 percent of teachers are either higher secondary qualified or below, 3 percent are graduates, 10 percent are po st graduates and only 44 percent received in –service training. This lead to teachers not to get benefited from the new advanced tools and techniques and have to continue with outdated materials and tools.

3. STUDENT TEACHER RATIO- The teacher student ratio has changed unfavorably over the decades especially in primary education and result in increase in work load of the teacher.

4. LACK OF SUPPORT MATERIAL – Teachers are largely rely upon conventional tools like chalk and blackboard for teaching and have almost no access to other supportive tools like lesson plans, supplementary text books, power point presentations, etc techniques and tools.

5. FOCUS ON THEORETICAL ASPECTS – There is no mechanism to ensure that curriculum keeps pace with developments. The material taught is too theoretical and highly focused on learning by rote. Vocational aspects are not adequately covered.

6. OUTDATED STUDY MATERIAL – The books are not timely revised and contain many times factual errors, students find it difficult to relate examples and illustrations and there is often a significant difference between textbooks and teaching material used by private and government schools.

3. CONTEMPORARY WAYS OF DELIVERING EDUCATION

I. EDUCATION AT THE DOOR STEP THROUGH TELEVISIONS: Tata Sky has revolutionized the Indian education system through its active learning package on the idiot box i.e. television. This has supported the conventional classroom teaching in a very well manner. The programmes like active English; active education packages are

not only helping the children to learn fast but catching the attention of adults too. www.zenithresearch.org.in www.zenithresearch.org.in

Where children as well as adults can learn English and many subjects easily and

support the conventional classroom teaching.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ II. ONLINE DISTANCE LEARNING PROGRAM: Information technologies help those students who are not able to attend regular classes due to socio-economic pressure. They can enroll for online distance learning courses offered by various government and private institutes and study while working. This will also help to meet the problem of scarcity of skilled teachers.

III. A DIGITAL LIBRARY: is a library in which collections are stored in digital formats and accessible by computers. The digital content may be stored locally, or accessed remotely via computer networks. The advantages of digital libraries as a means of easily and rapidly accessing books, archives and images of various types round the clock. The other benefits like potential to store large information, reduce the cost of infrastructure, staff and maintenance, audio books, multiple access of materials, books, preservation and conservation of data make it a popular.

IV. MOBILE PHONE AND EDUCATION: The use of low cost mobile devices and related handheld technologies are beneficial in achieving variety of education objectives as well as in lifelong learning and educational outreach activities utilizing the mobile phone to benefit the health and agriculture sectors will also fall within the scope of this study.

V. EDUCATION GAMES: Schools can let their students be familiar with educational games adjusted by their teachers. Besides, they can also support and facilitate their students to have their own blogs in the internet. In their blogs, the students can create and write something, like an article, poem, news, short stories, features, or they can also express their opinion by an online forum provided in the internet. They are able to share experiences throughout their blogs to others from all over the world. By doing so, I think our young generation will get more and more information and knowledge by browsing in the internet. They can also create innovation in web design that it may be out of the formal curriculum content, but it will be useful for their future.

VI. EDUCATION COLLABORATION NETWORK: The technology alone cannot solve the problem of providing the universal, high quality education to a country as a large and diverse as India. Education Collaboration Network (ECN) approach can serve the modern education

system. Teachers in rural areas can download material through a

community portal, and print out notes and exercises to be used in their classes. The quality of the content is self regulated in a community portal like Wiki projects. Similar way the materials receive feedback and review by the users, to ensure good quality contents. The material is also improved by the team of experts who continuously monitor the quality of the contents added by the users in the portal.

EDUCATION COLLABORATION NETWORK ALLOWS

 Teachers and students to work together to develop education and training materials such as supplements to textbooks and teaching support

materials. www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/  Teachers together with administrators can identify the deficiencies in the study material and text books and develop the solutions for addressing the problem.

 Easy access of education and training materials to teachers and students.

 It will help the teachers and administrators to experiment with new methods of teaching and training.

4. BENEFITS OF IT IN EDUCATION

I. DIRECT COMMUNICATION Information technology allows teachers and students to comment and discuss sections of text books, link supplementary material for further study, share lectures, exercises, assignments, tests and so on. It also helps in participatory development of training material for helping teachers and administrators update and enhance their skills.

II. TRAINED TEACHER In India the student teacher ratio in primary schools is 40.20 while in secondary level it is32.70 as per the data of 2007 sources world bank. This shows that there is a shortage of trained teachers in various schools and colleges. apart from that there is large number of under- qualified teachers and many more need further professional education and training as they work. With the use of online teaching methodology we can enhance the teaching quality as well as provide services of qualified teachers to maximum students.

III. FLEXIBLE WAY OF TEACHING There are many students who are not able to go regular classes in schools due to socio and economic pre ssures. The information technology will help them to access of formal education in virtual class rooms. Not only students but also the problem of shortage of students can be minimized with virtual classroom teaching and help teachers to use the teaching aids developed anywhere, and by anyone.

IV. ENHANCE LEARNING ABILITY OF STUDENTS Role of education in other sectors entire learning process not just interesting but easier for the

kids also to hook on to subjects and understand them as well

V. DATA COLLECTION There is now a good mechanism for collecting some kinds of data at primary level. Education statistics, where available can result in biased estimates of performance or efficiency of individual schools.

VI. QUALITY OF STUDY MATERIAL ICT tools allow experts, teachers and students to provide feedback on the updates needed in the curriculum. Tools that allow sources to create, in a timely manner, high quality instruction material and supplementary material like text books and updates on new developments and mechanisms for sharing instruction

material amongst schools. ICT can help in improving the instruction www.zenithresearch.org.in www.zenithresearch.org.in

material. It helps to minimize the errors which are frequently left while

publishing and frequent updates can be possible.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ VII. DATA STORAGE Constructing and maintain a national wide registry of facilities and performance statistics, collected at a level of detail that could be used in planning and management.

VIII. PROCURING AND DISTRIBUTION MATERIALS The use, wherever possible, of supply-chain management techniques for procuring and distributing materials efficiently; and by retaining content in electronic form to delay commitment to paper form to as late in the distribution process as possible.

IX. EASY MONITORING Depending on the purposes, data would be collected across the nation for tasks like monitoring or facility mapping. The collection and storage mechanism would need to make provisions for dealing with multiple data formats, languages, input devices, levels of reliability and “IT-readiness.‟ In addition, there will also have to be in place information life management methods and associated policies for managing the data collected.

X. DATA ANALYSIS This will involve using computations tools that calculate optimal or near - optimal solutions for specific problems being addressed like facility planning or performance assessment. Good solutions will require the data for computations to be up - to date, of high quality and available at any location.

XI. PRESERVATION AND CONSERVATION Digitization help in preserving and conserving the material for long run and provide access copies of materials that would otherwise fall to degradation from repeated use.

XII. EDUCATED HUMAN RESOURCES The Indian education system places strong emphasis on mathematics and science, resulting in a large number of science and engineering graduates. Mastery over quantitative concepts coupled with English proficiency has resulted in a skill set that has enabled India to reap the benefits of the current international demand for IT.

XIII. USE OF INTERNET CHATTING is one of the most popular activities on the Internet. It involves people from all walks of life and just about all ages, coming together in a variety of topics with people from all around the world.

5. PRESENT CHALLENGES & STRATEGIES TO IMPROVE QUALITY EDUCATION

Improving the quality of education and training is a critical issue, particularly at a time of educational expansion. ICTs can enhance the quality of education in several ways: by increasing learner motivation and engagement, by facilitating the acquisition of basic skills, and by enhancing teacher training. ICTs are also transformational tools which, when used

appropriately, can promote the shift to a learner-centered environment. The following points www.zenithresearch.org.in

present the current challenges and solutions to improve the education system in India.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 5.1 CHALLENGES THAT HINDERS EDUCATION SYSTEM GROWTH

I. LACK OF SKILLED WORKFORCE Indeed India has second most populous country in the world; India has the highest rate of working workforce. India is also known as provider of cheap manpower to the industrial sector. There is a lack of skilled workforce in India and hence we need to look after this problem.

II. MARKET DRIVEN EDUCATION The objectives and strategies related to education are market driven. Students are only being prepared to acquire knowledge and skills for future jobs. The focus is only on learning about ICT, which is regarded as „Topicality‟, whereas for primary and secondary schools the focus is regarded as the early stage of ICT use in education. This philosophy limits the potential of ICT in education to a central force in economic competitiveness. Its potentials as a tool for addressing challenges in teaching and learning and as change agent are thus neglected.

III. LACK OF INTEREST IN STUDIES There are many students who feel burdensome with the present education system. Higher aspirations of the family members and high competition among the classmates and o ther family relative children create tension in students mind. The complexity of the subjects reduces their interest in them and reduces their grades.

IV. FEW PARTICIPATE IN EXTRA CURRICULA ACTIVITIES It was generally seen that in each and every extra curricula activities like sports, dance, drama, music, painting, etc, the certain faces repeats every time and every year. Teachers does not wants to take time in promoting other students who might can do wonders if trained properly and given a little extra time for practice. It was not always the fault of the teacher but at times of management too who gives a very little time to teachers to prepare students for such activities.

V. WEAK STUDENTS GET REMARKS BUT NOT HELP The weak students only get remarks in their progress reports like do hard work but no teacher hold the hand of such weak students and only blame the child and say parents to do hard work on them. So weak students remain weak throughout the session and even at times it continues in subsequent years too.

VI. GRADING SYSTEM All though we know due to efforts of Hon‟ble Kapil Sibbal the students are now getting grades rather than marks. The teachers at times repeat the grades as she well versed with the performance of the students of her class. The teachers at times not consider the work done by student rather they just distribute the grades as per their past performance. This demoralise the students and stag their future performance too.

VII. LACK OF MORAL AND SOCIAL TEACHING These days student www.zenithresearch.org.in

don‟t go to play outdoor games rather they stick to their mobile phones,

laptops, computer and TV games. They don‟t understand the need of

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ socialisation and ignore it. It is also seen in adults too and is followed by their kids. The peoples are not aware of the name of person who stays next to their house and same culture is developing among the growing children too. There is also lack of moral education at home as well as in schools. The parents itself drink, smoke and says their kids this is harmful. Is that possible that children not opt what they see at their home and go with moral education. Moreover the daily soaps on television too harming children. They watch the adult serials while sitting with their parents and try to behave like that.

6. SOLUTIONS TO ACHIEVE EXCELLENCE IN EDUCATION SYSTEM

I. REFORMS IN EDUCATION In the area of education and training, major reform and improvement of formal and informal education were identified as crucial for India‟s future. There was recognition that the education system needs to be made more responsive to market needs, and access to education that fosters critical thinking and learning skills is essential for all, not just the elite.

II. DIGNIFIED VOCATIONAL EDUCATION There is a lot of Indians who left their country and doing studies abroad with jobs. They not feel bad in earning while doing studies in works like driving taxi, working in restaurants and all. We need to develop such culture in India too. This could be possible if we provide vocational education to the students in early classes only (11th -12th). Not only quality should be maintained but the dignity should also be promoted of the vocational education.

III. OUT OF THE CLASSROOM TEACHING The teaching should not be enforced within the brick and mortal classrooms rather teaching shoul d be environment friendly. The students should be taken out of the classrooms and the subjects like science, history should be taught in the live surroundings. Like science can be taught in garden while social science can be taught by taking them out for a visit to historical places. This not only creates their interest in the subject but also make the learning quick.

IV. HOLD THE HAND OF WEAK STUDENT Teachers rather than writing

remarks on the weak student “Do work hard” should do hard work on

such students. The every teacher concern should be the weak student and she should need a little extra effort on such students to make them also equal to the brighter student.

V. ALL STUDENTS PARTICIPATION IN EXTRA CURRICULA ACTIVITIES The teachers are required to keep on rotating the group of students who participate in various extra curricula activities every time and every year. Here the teachers need to take little pain in preparing all the students for all sorts of activities.

VI. MEDITATION The students should too teach yoga and meditation. It

helps them to discover self and understand their own strengths and www.zenithresearch.org.in

weaknesses. It also helps them to fight with failure in life and stand on

their feet and move ahead.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ VII. RELAXATION IN BUREAUCRATIC One way of increasing access to education could be through embracing the contribution of private providers through accreditation and the relaxation of bureaucratic hurdles. It is also essential to make effective use of ICTs to meet the double goals of expanding access and improving the quality of education.

VIII. KNOWLEDGE In reality, access to information (local or global) is meaningless unless it can be converted into relevant knowledge. Therefore, there is an urgent need for investment in human resources and education in addition to the need for investment in infrastructure. The classes should be spacious. In every school the language lab, library must be created.

IX. A LAPTOP PER CHILD AT AFFORDABLE PRICE The government is trying to provide education laptop to each and every child at an affordable price of rupees fifteen hundred only. This step will help to meet the millennium development goal at faster pace with the use of information technology.

X. Helping teachers become better at what they do, by enabling Collaborative Development of teaching material and making this material accessible to all.

XI. Improving the Quality of Instructions by enabling mass participation in developing curricula, monitoring text books and creating supplementary material.

XII. Improving Operational Efficiency, by enabling the collection of disaggregated data and the use of information based methods to procure and distribute materials.

XIII. To provide Free and Compulsory Education to All Children, Indian Parliament has enacted a legislation making free and compulsory education a Right of every child in the age group 6 -14 years which has come into force from 1 st April, 2010.

XIV. Motivating to Learn ICTs such as videos, television and multimedia computer software that combine text, sound, and colourful, moving images can be used to provide challenging and authentic content that will engage the student in the learning process and tele-collaboration. Interactive radio likewise makes use of sound effects, songs, dramatizations, storytelling, comic skits, and other performance conventions to compel the students to listen and become involved in the lessons being delivered. More so than any other type of ICT, networked computers with Internet connectivity can increase learner motivation as it combines the media richness and interactivity of other ICTs with the opportunity to connect with real people and to participate in real world

events. www.zenithresearch.org.in www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ XV. Students need not learn about computers only; ICT should be integrated for the development and management of teaching and learning in Indian schools.

XVI. HOLISTIC EDUCATION SYSTEM There is a short of social and moral education delivered at schools and at home. Home is the first school of student. They learn what they taught at their home and adopt the culture at their home. If the parents itself drink and smoke in front of kids will create a bad impression on them and they too develop such bad habits. It is thus important that parents should not indulge in bad habits. In schools the students should be taught what is good and bad through skits, drama, storytelling, posters, videos etc. They should also warn about the consequences of indulging in bad habits. The parents should ask kids what they learn after watching a particular programme. This help kids to understand what lesson they should learn after watching or reading a particular serial or book. The events, campaign, marathon should be organized regularly at school and state level to educate students about the environment, need of trees, need of friends.

According to the Hon‟ble Minister of HRD, there is a need to develop a core curriculum in schools for the subjects of science and mathematics, without in any manner restricting or affecting the authority of States in prescribing syllabi and conducting Board Examinations. Such a core curriculum would enable level playing field for all students irrespective of background, establishing a National Institute for Assessment and Evaluation, which could serve as an advisory institution to help School Boards volunteering to seek such help in assessment and evaluation, Restoring the weight age that must be accorded to performance in class 12 in entrance tests for professional and other courses; this would minimize the current inequality in access to such courses of study due to dominating influence of expensive preparatory coaching; and extending the system of Comprehensive and Continuous Evaluation up to class 10. Hence it is required that State Government should extend its help to achieve the desired aims in education sector.

7. CONCLUSION

The ICT has been developing very rapidly nowadays. Therefore, in order to balance it, the whole educational system should be reformed and ICT should be integrated into

educational activities. The influence of ICT, especially internet (open source tool) cannot be

ignored in our student‟s lives. So, the learning activities should be reoriented and reformulated, from the manual source centred to the open source ones. In this case the widely use of internet access has been an unavoidable policy that should be anticipated by schools authorities. Most parents do not have enough times to accompany and control their children. So, the students have large opportunities to do with multimedia games or online games. Having been addicted, the students will have too little time to study, and even do not want to attend classes. Thus the presence of multimedia games and online games by internet has been certain serious problem that should be wisely handled by the educational institutions. The implementation of ICT in education has not been a priority trend of educational reform and the state paid little attention to it. Therefore, there should be an active participation, initiative and good will of the schools and the government institutions to enhance ICT implementation at school. The teachers should be the main motivator and initiator of the ICT implementation www.zenithresearch.org.in at schools. The teachers should be aware of the social change in their teaching activities.

They should be the agent of change from the classical method into the modern one. They

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ must also be the part of the global change in learning and teaching modification. India should look towards developing new models for designing curriculum, and for helping teachers and students. These can be achieved using an education collaboration network.

REFERENCE

1. www.nasscom.in

2. www.worldbank.org

3. Ministry of Human Resource Development, Government of India

4. Task Force on Human Resource Development (HRD) by G.O.I. in Information Technology (IT) vide notification no.460/31/C/27/2000 -E and SI dated 1.8.2000

5. Annual report IT, 2008-09, Ministry of Information Technology

6. Annual report, 2009-10, Ministry of Human Resource Development

7. Report to the people on Education, 2009-10, Ministry of Human Resource Development

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ TRY ADVERTORIAL TO OVERCOME THE CHALLENGES OF COMMERCIAL CLUTTER

J. J. SOUNDARARAJ*

*Assistant Professor, PG & Research Department of Commerce, Loyola College (Autonomous), Chennai – 600034.

ABSTRACT

The role of media is imperative for the successful marketing communication with the target consumers. Today, almost any media that is accessed by the consuming public is cluttered. It has become the necessity for the marketers to overcome the challenges of the commercial clutter so as to reach the consumers with the desired message in an intended way. There are innovative companies and marketers who find their ways out to effectively communicate with the consumers. One such way which is more appropriate to communicate with the target consumers who are accessible through the print and web media is „Advertorial‟. It is learnt from the past literature that especially many media persons do not favour advertorials saying that they blur the dividing line between editorial and advertisement in the print media. However, it is the belief of the author that an advertorial, prepared strategically will not blur the dividing line. There are a few guidelines, suggested in this article which will make advertorials effective and at the same time keep them away from negative criticism.

KEYWORDS: Advertorial; Marketing Communication; Commercial Clutter; Editorial; Media objectivity and Ethics. ______

INTRODUCTION

Today is the world of clutter. Every person is exposed to many number of marketing communication in the day to day life. It could be rightly said that there is a commercial clutter in all the media. The marketers are striving to reach out to the target customers through any available medium. There is desperately a war among the marketers of the products or services of the same category and other products as well in attracting the attention of the consumers. They spend a lot of money in identifying the consumers, designing the

communication objectives, understanding the readiness state of the consumers, designing the communication, choosing the right media vehicle, and eventually measuring their reach to the consumers. All the money, spent for the promotion of the market offers will go unproductive, unless the marketing communication is made superior than that of the competition. Though there have been many media in use, there is an ever-increasing demand for the important or prime time / space of all of them in which the marketing communication could be made effectively. Comparing the past, the number of national and regional Television channels, Radio channels, Magazines and news papers is higher. However, the competition among the marketers to reserve the slots in prime time of Televisions and suitable space in print media is also higher. The rate per second to air a communication and the rate per line in the print media have increased at a higher rate mainly due to the readiness of the domestic and international giants to pay any amount for effective communication with their customers. The marketers also always try to find new and effective ways to communicate better with their www.zenithresearch.org.in customers. In this regard, there is one way named, „Advertorials‟ which is not new but less

popular among the marketers in India. It is perceived by the author that it is an appropriate

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ way for powerful marketing communication through the print and Internet media if used properly.

ADVERTORIALS- MEANING

The word „Advertorial‟ is defined by many individuals and organisations. Few appropriate definitions on „Advertorial‟ are presented below:

Adver(tisement) + (edi)torial = Advertorial: Source- Etymologies

WordNet 3.0 has defined advertorial as “an advertisement written in the form of an objective editorial, presented in a printed publication, and usually designed to look like a legitimate and independent news article”.

Wiktionary has defined advertorial as “an advertisement promoting the interests or opinions of a corporate sponsor, often presented in such a way as to resemble an editorial”.

Ju, Kim, and Cameron (1996) synthesized conceptual definitions of others in defining advertorials as “blocks of paid for, commercial message, featuring any object or objects (such as products, services, organisations, individuals, ideas, issues etc.) that simulates the editorial content of a publication in terms of design / structure, visual / verbal content, and / or context in which it appears”.

According to the author of this article, „Advertorial‟ is a paid news published for the promotion of individuals, products, services, Institutions and any other market offer. It is actually an advertisement, presented in the form of an editorial content in the print and web media.

For example, take a case of an IT company that manufactures and sells backup and recovery software for desktop computers. To promote such a software, the company might bring out an advertorial involving a feature article on the dangers and challenges of not backing up the important files. The article could be written like a news feature, with quotes and testimonials from people who have been affected by the lost data. The article need not mention the actual product by name, but it would include a link at the bottom directing readers to more information on the desktop data protection, pointing to the company website.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ FIGURE: AN ADVERTORIAL, PUBLISHED IN THE „TIMES WELLNESS‟ SUPPLEMENT OF “TIMES OF INDIA” NEWSPAPER (CHENNAI EDITION),

DATED 8TH SEPT, 2011

The above figure is a good example of the advertisement, given in the format of advertorial. This advertorial was given in the first page of the supplement titled “Times Wellness” of Times of India (Chennai edition) dated on Thursday, 8th September 2011. This advertorial fulfils the requirements of a good advertorial. It is related to the establishment of

an advanced medication facility named „RapidArc‟ in a private hospital of Chennai, the www.zenithresearch.org.in

capital city of the state of Tamilnadu. This marketing communication is presented in such

way it shares useful information about the availability of a latest and modern technology and

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ also how superior the technology is comparing the old one in the medical industry. In case, this advertisement has been presented in the normal format, it would have not reached out to many people. Moreover, it is presented in the supplement, meant for Health care and Wellness. Does it against the media ethics? Not at all. It is the perception of the author of this article that it is an useful information, promoted in a suitable way i.e, advertorial which certainly educates the readers about the new facility and also does a good promotion of the Medicare service. In addition, it is stated at the right bottom that it is only an advertisement. Therefore, it could be said that it is an advertisement that is prepared well, using a suitable format for the benefit of both the readers and marketers.

REVIEW OF LITERATURE

The review of literature makes an analysis over the view points of media persons and other critics for as well as against Advertorials.

Randall Rothenberg (1989), Stein (1989), Jonathan Alter (1989), and Rebecca R. Albers (1993) have expressed concern about the blurring of lines between commercial and editorial content that can occur when advertorials are included in a publication. Cameron (1996) described this blurring as information pollution. Cameron and Haley (1992) found in a survey of editors and advertising managers that objections to advertorials were more the province of editorial staff than of advertising managers. William Wetly and others (1981) found that editors viewed advertorials as attempting to achieve credibility by using third- party endorsement that mimics journalistic standards of objectivity. A number of empirical studies have borne out this view. Salmon, Reid, Pokrywczynski, and Willet (1985) concisely described it as the borrowing of editorial credibility. Cameron (1994) expressed that “With the appearance of news, an advocacy message is legitimized by third-party credibility-the implicit approval of the medium in which the information is presented”. Supporting this view, he found experimental evidence for greater credibility and impact when a story was presented as editorial copy than when it was labeled as advertising.

Cameron and Haley (1992) said that it is the belief that an editorial format can be more effective than traditional advertising formats is evidenced by trends toward increased advertorial use and by the views expressed among advertisers / media planners in a number of studies? For example, the total 1991 revenue of $229 million from advertorials in U.S is more than double the 1986 figure of $112 million. Cameron and Curtin, in a secondary analysis of an experimental dataset found that readers were virtually unable to notice labels in

advertorials. According to Salmon et al (1981)., the extent to which journalists can ever achieve objectivity is subject to philosophical debate. Nevertheless, a number of studies directly comparing advertorial and editorial messages conclude that perceived credibility varies between editorial and commercial messages. Credibility and memorability of messages were negatively affected when messages were presented as advertiser-based. Ju, Kim, and Cameron (1996) concluded in their study that the advertorial practice in magazines leaves much to be desired. Guidelines that give readers a fair chance of distinguishing commercials from editorial content would address a potential source of information pollution. Yet such guidelines are being violated in numerous and crucial ways, reducing the visibility of advertorial labels and masking the distinguishing features that could signal advertorial content for readers.

Deepti Mahajan (2004) stated that it is not difficult to find an odd letter to the editor www.zenithresearch.org.in of a newspaper or magazine featured in the letters columns, complaining about the

deterioration of news content and increasing commercialisation of the news media. The

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ media debate in the Hindustan Times elicited some reactions from the readers, but there is not a very strong reaction from the readers as a whole. The main reasons for not getting the reaction of the readers on the commercialisation of media are (1) newspapers are habit- forming and it is not easy to switch from one to another. The reader therefore continues to put up with whatever his newspaper offers him. This is however not true in the case of magazines. (2) The reader is perhaps unaware that the magazine / newspaper she / he is reading is selling editorial space. (3) This reason could be as T.N.Ninan (2003) put it, “..readers choose a newspaper for several attributes, of which editorial integrity may be just one. A paper may have the most comprehensive classified advertisements, useful when you want to rent a flat or sell a car. Then a paper may have the best TV review columns. It may offer a free plastic chair in return for a three-month subscription (as some Hindi newspapers do). Or, simply, everyone in the neighbourhood reads it. And so on. (4) The silent acceptance is to do with the Indian psyche. In India, „public‟ reaction to happenings is very private. Such a private „Public‟ reaction is of no consequence and the reader needs to be more proactive. Deepti has also expressed that the onus to safeguard the ideals of journalism lies on the readers too.

The July 30, 2010 report of the India Press Council criticised paid news, calling it “advertising in the garb of news.” As the press council stated, “news is meant to be objective, fair and neutral- this is what sets apart such information and opinion from advertisements that are paid for by corporate entities, governments, organisations or individuals.”The Press Council advises Indian news outlets to avoid the blurring of lines between advertisement and editorial in the following ways: (a) news outlets should disclose when their news is, in fact, advertisement, (b) news articles should feature bylines, and (c) news and advertisements should be written in different fonts to further differentiate them. Further, the Press Council advised that newspapers avoid publishing preliminary surveys on exit polls so that the public is not influenced: “No newspaper should publish exit-poll surveys, however genuine they may be, till the last of the polls is over.”

In Justice G.N. Ray‟s speech (July 30, 2010) at the “Save Ethics: Save Media” seminar, Ray cited the U.S. Society of Professional Journalists‟ preamble and emphasised the importance of minimizing harm. He added that reporters should “keep in mind the principle of limitation of harm, which means that there is a need for giving proper weight to the negative consequences of full disclosure, creating a practical and ethical dilemma.” He further cited the advice of “ancient Indian sages” to “Tell the truth, tell beneficial words but

do not tell the truth which may cause harm.”

The Indian Press Council‟s Malhotra explained to Stinky Journalism that the Press Council, created in 1966, is “a statutory authority” to regulate the Indian press. He wrote that “The raison d‟etre of this unique institution is rooted in the concept that in a democratic society, the press needs to exercise its freedom with responsibility but be amenable to self monitoring and monitoring by its own peer body.” However, the Press Council “has no punitive powers.”

The Guardian‟s Roy Greenslade has written about paid news in India, noting that a Sunday Times reporter contacted the Times of India‟s publisher, Medianet, and was reportedly told how to buy advertorials in the Times of India‟s supplement. In response, the Times of India‟s chief executive, Ravi Dhariwal, defended the newspaper saying that “There is no paid news in any of their main papers and titles and they do have advertising and www.zenithresearch.org.in

promotional supplements which sometimes carry paid features.”

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ The Indian Government in February 2011 has condemned the phenomenon of “paid news”, in which newspapers and broadcasters accept money to run favourable articles about politicians, companies and celebrities. Broadcasting minister Ambika Soni said the practice was affecting the credibility of news reports and undermining the media‟s claims to be upholding democracy.

The „Report on paid news‟ dated on 30th July 2010, prepared by the Press council of India has described paid news as “a complex phenomenon” that “ranges from accepting gifts on various occasions, foreign and domestic junkets, various monetary and non-monetary benefits, besides direct payment of money.” The report further mentioned that it also involved “private treaties”, involving share transfers between media and non-media companies “in lieu of advertisement space and favourable coverage.” Moreover, many politicians paid papers to run sympathetic stories about them during the 2009 elections, and the report lists several examples. The Press Council Chairman GN Ray, a retired Justice, acknowledged that a section of Indian media had “indulged in monetary deals with some politicians and candidates by publishing their views as news items and bringing out negative news against rival candidates during the last 2009 elections.”

Brendan (2011) has stated that the idea years ago was to simply merge product advertisements with editorial content (quite literally, judging by the name). The concept made sense, given that reader engagement in quality editorial is so much higher that with typical ads. The execution, however, was a little tricky. In the pre-internet days (and even after), organisations would aim to create articles aimed at their potential customers with the goal of wetting their appetites from their products, while still keeping the focus of the content away from the products themselves.

From the above literature, it could be understood that many media persons and the Government have criticised that paid news (advertorial) spoil the objectivity of the media and it has to be avoided. However, it is also stated that even the Press Council India cannot control any media enterprise in publishing the advertorials. It could only advise them and play the role of an observer. This article on „Advertorials‟ attempts to analyse the present state of advertorials and also to suggest the ways to make advertorials more effective but still do not over rule the laws, surrounded the concept.

RELEVANCE OF ADVERTORIALS

In today‟s environment, competition is inseparable from any business activity. No business enterprise is affordable to ignore the influence of competition. Perhaps, understanding the nature and depth of competition is the basic requirement that gives a platform of success to any business enterprise. The marketing companies always try to innovate the ways and means to reach out to the target consumers more efficiently than the competition. The role of media is imperative for the successful marketing communication with the target consumers. Today, almost any media that is accessed by the consuming public is cluttered. It has become the necessity for the marketers to overcome the challenges of the commercial clutter so as to reach the consumers with the desired message in an intended way. Unlike the past, attracting the attention of consumers is a difficult task mainly due to the increased commercial clutter in all important media. However, there are innovative companies and marketers who find their ways out to reach the consumers. One such way which is more appropriate to communicate with the target consumers who are accessible www.zenithresearch.org.in through the print and web media is „Advertorial‟. As already discussed, it is an advertisement

designed in such way to look like an editorial content in the Magazines, Newspapers and

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Web. When the advertisement is prepared like an editorial content of the Newspaper or Magazine or Web, the probability for it to get noticed by the readers (also the target consumers for a market offer) is really high. It is obvious that many of the readers of the magazines and newspapers are much interested in the editorial content than the advertisements. Only when the readers involve in active search of certain marketing information about a product or service they desire to buy, they take efforts to look at the advertisement columns in the magazines or newspapers. Otherwise, they mostly skip the pages of advertisement. Another aspect to be considered is that every reader of a newspaper normally spares only a few minutes to go through the entire paper. It is a real challenge to get their attention for a minute or two towards the advertisement columns. In the one or two minutes, whose advertisements are noticed is what really matter. The marketers fight with one another to attract the attention of the readers in the one or two minutes they normally spare for looking at the advertisements. It is prudent on the part of the marketers to find new and potential ways of communication instead of fighting with others in the commercial clutter. It is certain that „advertorials‟ stand away from the clutter and helps the marketers to communicate effectively with their target consumers who are also the readers of newspapers and magazines, concerned. However, the advertorials are required to be prepared following the guidelines laid down by the Press Council of India and the Government as well. The advertorials should be prepared in a way not against the objectivity of the media, and the word „Advertisement‟ should be affixed at the top or bottom of the advertorials. The real idea behind advertorials should be to make the readers to read the communication and not to cheat them. After reading the advertorials, if the readers come to know that they have read an advertisement, they could decide whether to follow it or not. Similarly, as per the opinion of the author of this article, Advertorials need not be permitted for certain promotions like, promoting a political candidate or a party and a particular company or organisation. This tool could be effectively used for the benefit of the readers and also the companies that sponsor the advertorials. Though there are certain legal and ethical restrictions to prepare the advertorials, it is true that well-planned advertorials have reached out the consumers in a better way than that of the other forms of advertisement in the print media.

HOW TO MAKE ADVERTORIALS EFFECTIVE?

It is the belief of the author that following certain guidelines to prepare the advertorials will surely create a win-win situation to both the media and the readers. It is learnt from the past literature that especially many media persons do not favour advertorials saying that they blur the dividing line between editorial and advertisement in the print media.

However, an advertorial that could be prepared strategically will not blur the dividing line. There are a few guidelines, suggested in this article which will make advertorials effective and at the same time keep them away from negative criticism. The following are the suggested guidelines:

UNDERSTAND THE NATURE OF THE PUBLICATION, USED FOR ADVERTORIAL: The advertiser should first understand the nature of the publication that will carry the advertorial. It is essential to know its competition, kinds of advertisements it normally carries, the typeface, size of the type, headlines and graphics, it uses. A clear understanding of the publication will enable the advertiser to prepare a suitable advertorial.

KNOW THE POLICY OF THE PUBLICATION FOR ADVERTORIAL: Some of www.zenithresearch.org.in the publications might emphasise on certain aspects like, the advertorials should have a

few differences comparing their editorial in terms of the type and size of font, used. In

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ such case also, advertorials could be prepared well as articles using a good style of presentation.

DETERMINE A SUITABLE SIZE: In order to give an editorial look, the advertorials are required to be prepared in a size that is much similar to that of an editorial article of the publication. It is suggested to have a minimum size of at least quarter page for an advertorial in the newspapers so as to give a look of an editorial article.

IDENTIFY AN APT HEADLINE: The headline of an advertorial is more important and it plays a vital role in attracting the attention of the readers. The headline for advertorial should be planned very similar to those in the publication in which it appears. Superlative headlines should not be used. Instead, simple and ordinary headlines could be used. The figure, presented in this article is given with a simple but effective title- “Rapid Treatment”. It is an appropriate title for an advertorial, published in the Times Wellness supplement.

ATTRACT THE ATTENTION OF THE READERS: Using the permitted colours or style of fonts and a good style of writing, attracting the attention of readers is the priority. By all means, the advertiser of advertorial should avoid the thinking that he / she involves in publishing a normal advertisement. Perhaps, this is a pre-requisite to avoid a title that will give an advertisement look to an advertorial.

DESIGN THE CONTENT THAT ENHANCES THE KNOWLEDGE OF READERS: The advertorial should be designed or written in such a way it is more informative and enhances the knowledge level of the readers on the topic, concerned. In this regard, the advertorial titled „Rapid Treatment‟ has really presented some useful information such as, the problem being faced in the absence of the new technology, how superior the new technology „RapidArc‟ is than the existing one in terms of accuracy in end results and the time consumption. It is sure that advertorial like „Rapid Treatment‟ will enhance the knowledge level of the readers. Similar style has to be followed in designing the content for an advertorial.

ENHANCE THE BRAND IMAGE: The consumers might look at certain brands as inferior or not of good quality. The advertorials really contribute for the enhancement of brand image in the minds of the readers cum consumers. It primarily depends upon the way an advertorial is written.

EXPLAIN COMPLEX PRODUCT DETAILS: It is essential to explain the complex details about the product or service or aspect that is promoted through the advertorial. Although an advertorial entertains as it informs, complicated products may require more attention on the latter. Understanding the features as well as seeing their benefits is important to a customer who happens to the reader.

USE PHOTOS AND CAPTIONS: Use of relevant and attractive photos along with suitable captions will add value to the advertorials. The photos of the celebrities will surely give the value of attraction to an advertorial.

PLAN FOR A GOOD BEGINNING AS WELL AS AN END THAT ELICIT INTO

ACTION: As usual for all powerful communication, the beginning and the end should www.zenithresearch.org.in

be chalked out very well. The beginning paragraph should attract the reader just like

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ other articles in the same publication. The ending paragraph should have some information that induces the reader to get into action.

INSERT EXPERTS‟ OPINION: It is very good to incorporate the positive opinion of the known experts on the topic of an advertorial. It could be evidenced in the „Rapid Treatment‟ advertorial.

USE SUB-HEADLINES: Use of sub-headlines could be considered only if necessary.

INCORPORATE THE CONTACT INFORMATION: Obviously, the advertorials should be like articles but still they are only advertisements. Making use of a suggestive approach, an advertorial should create a sense to do something what the advertiser exactly wants the readers to do.

ENSURE THAT ONLY A FEW ADVERTORIALS ARE PRESENTED AT A TIME IN AN ISSUE OF A MEDIA VEHICLE: It is suggested that for effective reach of advertorials and also to protect the objectivity of the media, both the advertiser and the media person should ensure that there will not be more than 2 or 3 advertorials in each issue of the print medium. Placing many advertorials will certainly spoil the objectivity of the media and the interest of the readers too. It is good that the readers get 70-80% of pure editorial and 20-30% advertorial and other advertisements together.

DO MENTION THE WORD “ADVT OR ADVERTISEMENT” somewhere at the bottom of the advertorial in order to finally inform the readers that it is only an advertisement and moreover, it fulfills the requirement, suggested by the Press Council. In this regard, the advertorial „Rapid Treatment‟ has done it correctly.

SUITABILITY OF ADVERTORIALS

It is suggested that Advertorials will be a suitable format of advertisement only in a few occasions. This part of the article discusses such occasions that are presented as follows:

It is more appropriate to use advertorials for promoting innovative concepts, ideas, services and technology.

Creation of awareness about something among educated consumers shall be done

effectively using advertorial.

It is an apt format to communicate with educated consumers. If a marketer targets educated consumers or executives, he does not need the usual type of marketing and advertising. There should only be a tailor-made approach. He / She will need an innovative and strategically systematic approach to reach the deeper minds of the readers.

When the marketer wants to make his marketing communication very informative and suggestive as well, Advertorial is much reliable.

Advertorial form of advertisements is more suitable for ending rumours against an

organisation and its marketing offer. www.zenithresearch.org.in www.zenithresearch.org.in

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Advertorial form of promotion is very effective for the promotion of certain issues, products, services, organisations and technologies among educated consumers. As advertorials are related only with print and web media, this format of advertisement could be used as an alternative to other forms of advertisements such media. The concept of advertorial is not new. It is being used on a limited basis by a few advertisers who are familiar with its requirements. Moreover, cost of advertorials being comparatively higher, it may not be affordable for many small enterprises. On one hand, there has been a much criticism from the media persons, Press Council, and the government against advertorial as (a) it is blurring the dividing line between the editorial and advertisement, (b) it is affecting the media objectivity (c) spoiling the very nature of media (d) it makes the media pure business oriented (e) It is a way of cheating the readers (f) It leads to unethical promotion of Individuals, Organisations and especially the politicians (g) it is used to damage the image of the opponents, etc. On the other hand, Advertorial is a blessing that helps the advertisers to overcome the problems / challenges of commercial clutter in the print and web media. It is also proved through researches that the reach of advertorial is much higher than the ordinary advertisements on the same issues. However, the author strongly recommends that advertorial form of promotion should not be used for promoting Individuals, private organisations, and more importantly the politicians. It could be concluded that Advertorial form of advertisements, used following the guidelines, suggested in this article, shall be incredibly beneficial to both the advertisers and the consumers who happen to be the readers of the print and web media.

REFERENCES

1. Anna Sobezynski, “Editorials vs Advertorials: It‟s a Separate piece,” Advertising Age, 10 May 1982, m24-M26. 2. Brian McNair. „The media as political actors‟. An Introduction to Political Communication. London: Routledge, 1995. pp. 73. 3. Cameron, Glen T, Ju-Pak, Kuen-Hee, Kim, Bong-Hyun, “Advertorials in Magazines: Current use and compliance with industry guidelines,” Journalism and Mass Communication- Quarterly. Columbia: Autumn 1996. Vol.73, iss, 3; pg. 722, 12 pgs. 4. Glen T. Cameron and Patricia A. Curtin, “Tracing Sources of Information Pollution: A Survey and Experimental Test of print Media‟s labeling Policy for Feature Advertising,” Journalism & Mass Communication Quarterly 72 (spring 1996): 178-189. 5. Glen T. Cameron and John Eric Haley, “The media as a Self-Regulatory Screen: A Study of Advertising Acceptance Policy Regarding Feature Advertising, “Journal of Advertising., September 21, 1992: 47 6. http://www.wordnik.com/words/advertorial 7. http://www.indiatogether.org/2004/aug/med-advert.htm, “Advertorials: blurring the dividing line.,” Deepti Mahajan. August 2004. Read on September 8, 2011 8. http://homebusiness-faq.narod.ru/10-pointers-for-crafting-an-effective-advertorial.html,

“10 Pointers for Crafting an Effective Advertorial”, read on 8th September, 2011. www.zenithresearch.org.in www.zenithresearch.org.in

9. http://articles.everyquery.com/articles-benefits-of-advertorials-for-business-49181.html

“Benefits of advertorials for business”, William King, September 28, 2010

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 10. http://www.ehow.com/how_2257374_write-advertorial.html., “How to Write an Advertorial”, April 09, 2011. 11. http://www.plentysystems.com.au/resources/articles/97-editorial-vs-advertorial-does-it- really-matter-to-a-customer., “Editorial vs. advertorial – does it really matter to a customer?.,” Wednesday, 14th October 2009., Maria Morton. 12. http://blog.openviewpartners.com/the-advertorial-definition-redefined-for-content- marketing/., “The advertorial definition, redefined for content marketing.,” April 20, 2011., Brendan Cournoyer., 13. http://indiatelecomnews.com/?page_id=110 14. http://www.stinkyjournalism.org/editordetail.php?id=1203., “India Press Council advises against Advertorials”., February 21, 2011., Sydney Smith. 15. http://www.guardian.co.uk/media/greenslade/2011/feb/20/press-freedom-india., “India‟s dodgy „paid news‟ phenomenon.” Sunday Times/ The Hindu/Press Council of India. 16. http://www.stinkyjournalism.org/editordetail.php?id=1081., “India Journalists worried about paid News, Media Monopolies”., December 28, 2010., Sydney Smith. 17. http://www.easterpanorama.in/index.php?option=com_content&view=article&id- 881:paid-news-the-bane-of-ethical-jounalism&catid=45:web-special&Itemid-24 18. Jonathan Alter, “The Era of the Big Blur,” Newsweek, 22 may 1989, 73-76. 19. M.L.Stein, “Advertorials: Editors Discuss How to Make Them Work,” Editor & Publisher, 17 November 1990, 22. 20. Randall Rothenberg, “Messages from Sponsors Become harder to detect,” The New York Times, 19 November 1989, sec. E, p. 5. 21. “Rapid Treatment”- an advertorial, Times Wellness- supplement of The Times of India, Thursday, 8th September, 2011, Pg-1. 22. Ray Eldon Hiebert, Sheila Jean Gibbons. Exploring Mass Media For A Changing World. New Jersey: Lawrence Erlbaum Associates, 2000.pp.19. 23. Rebecca R. Albers, “When Is News Not News?”, Presstime, April 1993, 52-54.

24. “Report on Paid News,” Press Council of India., 30th July 2010.

25. Salmon.C.T, Reid.L.N, Pokrywczynski.J, and Willett.R, “The Effectiveness of Advocacy Advertising Relative to News Coverage,” Communication Research 12 (4, 1985): 546-567. 26. Self-censorship refers to the ways reporters doubt themselves, tone down their work, omit small items, or drop stories to avoid pressure, eliminate any perception of bias, or advance their careers. (Croteau and Hoynes, 2000). 27. T.N.Ninan, Editor, Business Standard. „All the news space that‟s fit to sell‟, Hindustan Times, February 19, 2003. 28. William Welty, “Is Issue Advertising Working?” Public Relations Journal, November

1981, 29. www.zenithresearch.org.in

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TRAINING TECHNIQUES IN MARUTI DRIVING SCHOOL- A TRAINEE VIEW

NISHA RATHORE*

*Junior Research Fellow-UGC, Faculty of Management Studies M. D. S. University, Ajmer - 305009.

ABSTRACT

The training scenario in India is characterized by the realization of the importance of training for bringing about efficiency and effectiveness in all streams. This study was conducted on Maruti Driving School in Ajmer which provide driving training to the trainees. The main objectives of this study was to examine the perceptions of the trainees on the training system as a whole and on specific aspects of the training methodology. The study was conducted on 40 trainees attending training programmes in the Maruti Driving School. The information was collected with the help of a questionnaire and information was sought on various issues connected with and incidental to the training system. The results are presented and few suggestions are made for bridging the gap between the ideal and the actual in the training techniques so as to make the training system more efficient and the learning more effective in the transfer of skills to the actual work situation of the trainee. ______

INTRODUCTION

The key element in any learning situation is the motivation of the trainee. One commonly accepted motivational doctrine among trainees is that properly structured or contrived training is a potential source of satisfaction for the number of different personal needs of the trainees. Trainers, besides give importance to creating an environment which maximizes trainee’s satisfaction, should also consider a plan for “motivational engineering” which means a conscious formal endeavor to enrich the training experience and involves the planned manipulation or modification of training characteristics viz, interpersonal relation, working conditions, opportunity for achievement and the work itself.

The study was conducted on Maruti Driving School in Ajmer. The participants were those who have undergone training in Maruti driving school . 40 participants were approached to fill the questionnaire. Before presenting their views, a general profile of the respondents is furnished in following paragraphs:-

PROFILE OF THE RESPONDENTS

Excepting one out of the 40 respondents all of them were 50 years and below. The bulk of the participants who responded were middle aged between 26 to 40 years forming 80 % of the total population. The young participants in the age group of less than 25 years and elder

ones in the age group of 41 to 50 constitute only about 20 %. www.zenithresearch.org.in www.zenithresearch.org.in

The age distribution of the participants who responded to the questionnaire is furnished in

table1.1

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AGE GROUP OF RESPONDENTS

TABLE1.1

S. No Age group Respondents (No.) percentage to Total

1. Less than 25 years 5 12.5

2. 26 years to 35 years 19 47.5

3. 36 years to 40 years 13 32.5

4. 41 years to 50 years 3 7.5

Total: 40 100

QUALIFICATIONS

Out of 40 respondents about 12.5 respondents were graduates. The post graduates participants formed about 28 %, 5 % of the respondents were engineers and 17.5 % respondents were Ph.D and 37.5 % did not furnish their qualifications.

ACADEMIC QUALIFICATION

TABLE 1.2

S. No Academic Qualification Respondents (No.) percentage to Total

1. Graduates 5 12.5

2. Post Graduates 11 27.5

3. Engineer & others 13 32.5

4. Ph. D 7 17.5

5. No information 15 37.5

Total: 40 100

STATUS LEVEL

About 12.5 % of the respondents did not respond to the inquiry regarding their level/ status in their organization. The respondents who belonged to the junior level in the organization such as working in (private school, executives etc) formed 7.5 %. While the middle level www.zenithresearch.org.in constituted about 42.5 % and top level accounted for about 20 % and 17.5 respondents are

students. The status levels of the respondents are decided by their annual income.

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STATUS OF RESPONDENTS

TABLE 1.3

S. No Status Level Respondents (No.) percentage to Total

1. Top/ Senior Level 8 20

2. Middle Level 17 42.5

3. Junior Level 3 7.5

4. Students 7 17.5

5. No Response 5 12.5

Total: 40 100

PREPARATION FOR TRAINING

It is widely admitted that the candidate sent for training should get advance intimation for the proposed training. To find out the existing position, the respondents were asked to answer questions like whether they received advance information and if so, how well in advance.

The data relating to intimation for training is furnished in table 1.4. It is seen that 82.5 respondents received advance intimation and 7.5 % did not.

TABLE 1.4

S. No Intimation Respondents (No.) percentage to Total

1. Received Advance Intimation 33 82.5

2. Received no Advance Intimation 3 7.5

3. No Response 4 10

Total: 40 100

COURSE CONTENT

To find out the awareness of the trainee about the content of the course and his own preliminary evaluation of its uses based on what is going to learn the participants were

quizzed about these aspects. www.zenithresearch.org.in www.zenithresearch.org.in

It is seen that 91 % of the programmes they attended, they were not aware about the course

content. It is however felt that 93 % participants felt that the programme were useful

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TABLE 1.5

S. No Intimation/ Time Respondents (No.) percentage to Total

1. Aware of the course content 3 9.4

2. Not aware of the course 29 90.6 content

Total: 40 100

S. No Intimation/ Time Respondents (No.) percentage to Total

1. Content considered useful 37 92.5 for the job

2. Not aware of the course 29 90.6 content

Total: 40 100

TRAINING OBJECTIVES

The participants were asked to state the objectives with which they attended the various training programmes. A few possible objectives were stated in the questionnaire and the respondents were asked to choose from the list.

It is seen from the table No. 1.6 that 12.5 % of the respondents says that theory classes are helpful for updating knowledge, 7.5 says that they learn latest techniques and learns useful

tips from the trainers and 72.5 says that simulator makes driving easy and safe.

TABLE 1.6

S. No Objectives Respondents (No.) percentage to Total

1. Updating knowledge 5 12.5

2. Learn latest techniques/ 3 7.5 innovations

3. Interactions with participants ------

4. Profit from trainers 3 7.5 www.zenithresearch.org.in

5. Simulator is helpful in 29 72.5

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Total: 40 100

COURSE MATERIAL

During the training programme, the Maruti Driving School distribute the course material which includes two books and two CD’s which contains various instructions and useful tips regarding the driving and they also distribute the time table which have the full schedule of the training programmes i.e. Theory classes, practical’s, test.

The quality and quantity depends upon the course, the incharge of the Maruti Driving School, the Director of the Maruti Driving School and so many other factors.

TRAINING METHODS

Training methods or instructional techniques is the most crucial event in training process. The reactions of the participants were ascertained in respect of the more popularly used methods like lecture.

Their reaction on simulator and practical (field visits) were also obtained. The response of the respondents on the effectiveness of the training methods adopted is furnished in Table 1.7.

About 67.5 % respondents felt that simulator is the most effective method in learning driving and it is very safe; 22.5 % respondents felt that practicals are more effective and 10 % says that lectures are only effective.

TABLE 1.7

S. No Methods Effective Most Effective

No. Percentage No. Percentage

1. Lectures ------4 10

2. Simulator 27 67.5

3. Practicals 9 22.5

TRAINING AIDS

Training aids, audio, visual, audio visual are important teaching devices which help in forming mind, accurate and clear concept. They also help to supplement and clarify what is being taught and also increase the ability of retention and absorption. To ascertain how effective these aids were the participants were requested to respond with their views on the effectiveness of film shows and strips, slides and the audio aids.

The participants response on the various teaching aids are furnished in table 1.8 www.zenithresearch.org.in

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TABLE 1.8

S. No Training Most Effective Effective

No. Percentage No. Percentage

1. Film Shows ------16 40

2. Slides 13 32.5

3. Cassettes ------11 27.5

From the replies of the participants it is seen that 32.5 % of the slides were most effective and 40 % of the film shows were effective

ASSISTANCE FROM FACULTY

The assistance, the participants received from the faculty is highly satisfactory since more than 44 % of them considered it as excellent and more than 50 % as good.

SELF ASSESSMENT

The participants were asked to report what they thought that training did to them by the way of changes they have been able to spot in their attitude. More than 65 % of the respondents felt that training gave them more self confidence while a little over a quarter, i.e. 27 % felt that the training improved their skills.

TRAINING OUTCOME

An attempt was made to obtain from the participants whether their training resulted in the introduction of any innovative methods. While more than 65 % of the participants stated that the training did help them, it increase there level of confidence and they drive confidently, while more than 30 % participants felt that simulator is the best part of the whole training process. They stated that simulator is the best method for training and it helps them a lot in learning driving safely and confidently.

DURATION

The duration of the course was considered just right, while around 30 % felt it was too short.

EVALUATION

The participants reported that the programmes were evaluated by them in all cases. About 13 % of the trainee reported that they offered their views frankly and more than 25 % found

programme useful to trainees, improve more their self confidence then skills. The overall www.zenithresearch.org.in assessment of the participants was rather encouraging as they believed that it improves

overall ability that is investment expenditure.

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CONCLUSION

Training packages could be designed for each type of area separately on a short term basis.

Research efforts should continue to assess needs of every level of personnel in each category.

Training is made effective only by the methods they adopted for training, the methods that the Maruti Driving School adopted is completely different from the other driving schools.

The charges for training charged by the Maruti Driving School is some what higher than the other driving schools but what I found is that people are ready to pay more for learning driving through Maruti Driving School because this is the only driving school in Ajmer which uses simulator methods and through simulator they makes driving easy.

The training process should be taken through step by step.

Evaluation is the kingpin of training activity. It should cover both the aspects of Training viz: Teaching and learning.

REFERENCES

Davies, I.K. (1973). The Organization of Training England: Mc Graw Hill.

Amsa, P. (1988). Transfer of Training on the Job.

Broad, Mary L. (1982). Management actions to support transfer of Training.Training and Development Journal.

Catalanellow, R.F. and Kirkpatrick, D.L.(1968) evaluation of training. Training andDevelopment Journal.

Holcomb, Jane. (1993) Making Training worth every penny.

Hyezynski, A.A. and Levis, J.W. (1980). An Empirical study into learning transfer process in Management training. The Journal of Management Studies.

Kirkpatrick, D.L. (1994) Evaluation of training programme: The four levels. San Francisco, Berrett Koehler Publishers.

Nadler, L. (1971) Support system for training. Training and Development Journal.

Roy S. K. and Dolke, A.M. (1971). Evaluation of Supervisory Training programme Training and development journal.

Gorden, M.E. (1976). Motivational Engineering of Training environments. Training www.zenithresearch.org.in

and development Journal.

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TALENT A CRITICAL DRIVER OF CORPORATE PERFORMANCE AND COMPETITIVE ADVANTAGE

DR. MS. ZARTAJ KASMI*

*Assistant Professor, Dr. Rafiq Zakaria Campus, Millennium Institute of Management, Rauza Bagh, Aurangabad – 431001, Maharashtra.

ABSTRACT

Recruitment alone is no longer sufficient. There is no alternative but to develop and grow talent within the organization. The ability to attract, develop and retain talent determines the strategic capability of organization. We are now in the era where there is a war for procurement of talent. It has been realized that “Talent drives performance”. There is high competition for skilled workers and difficulty to manage and retain than effectively. This research article aims to study importance of talent management, to identify its relationship with employee work engagement, employee value addition and discuss strategies for effective talent management.

KEYWORDS: Talent management, employee work engagement, employee value addition. ______

INTRODUCTION

Today's business environment wedges the role human resource plays with the organizations. Human resource is playing its role as a strategic partner instead of supporting administrative tasks in the organizations because greatest assets of the organization are its people. People though belong to diverse backgrounds therefore possess diverse talents. So, this is an organization's responsibility to effectively manage the talent of its workforce to achieve business objectives. Industry is seeing many organizations are implementing integrated Talent management processes. Talent refers to the ability of learning and its expansion to face and cope with the new challenges of the dynamic environment. Talent deals with the

forthcoming potential instead of past tracks.

Talent management is of core to the vitality of the business to meet and exceed current as well as future business strategies and goals. Framework of talent management proactively anticipates and meets business talent demand which is necessary to successfully execute the business strategy. It insights into the business strategy, then accordingly develops as well as retains prior talent and attracting new talent to cope with the strategic needs in order to get best utilization out of tools and processes to deliver talent management solutions.

The concept of talent management was derived from World War II (Cappelli, 2008), however its strategic importance has been realized when McKinsey consultants group claimed the human resource as "War for Talent" in late 1990' s (Scullion and Collings, 2010). This war for talent was prompted by the realization that talent shortages were www.zenithresearch.org.in increasingly becoming one of the biggest human resource concerns for multinational

corporations (Makela et al., 2010). Thus, the organizations interested in maximizing

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ productivity and effectiveness adopted systematic and rigorous approaches for attracting, selection, development and retention of talented key employees (Huselid et al., 2005).

Thus, find and retains the right person possessing exactly aligned talent is not adequate for stepping in accomplishing a firm with competitive edge in market. A firm may also possess the right configurations, procedures, systems and practices in place (Lawler, 2008). In order to acquires the competitive advantage and adjoin the business requirements, firms need to reckon, select and groom through training and developing their work force in such a way that ultimately supports in achieving the organizational goals and out lays the clear career path line to the employees. Organizations must be interactive and discuss their talent management programs strategically with their work groups. Key terms, core concepts and implementation step by step practices relating to talent management analyses and examine life cycle of talent management from acquisition of talent to its retirement.

DESIGN / METHODOLOGY / APPROACH

Research initiatives from diverse fields are taken as reference to identify why talent management is critical to bottom line success, discusses strategies for effective talent management in organizations.

LITERATURE REVIEW

Broadly defined, talent management encompasses the instrumentation of unifying strategies or processes in order to enhance the output of a wok place by deploying ameliorate systems and processes for attracting, development, retention and utilization of required skills and abilities of work force and their aptitude matched with the current and upcoming business needs. Talent management strategies centralize around five basic areas such as attracting, selecting, engaging, developing and retaining employees (Perrin, 2003). It is generally concerned with practices associated with developing strategy, identifying talent gaps, succession planning, and recruiting, selecting, educating, motivating and retaining talented employees human resource though a variety of initiatives (Ringo et al., 2010). Many authors regard talent management as a managerial strategic priority of the 21st century (Farndale et al., 2010). Employees' knowledge, skills and competencies are an important competitive weapon, hence talent needs to be maximized and recognized as one of the discrete source of organizational competitive advantage (Collings and Mellahi, 2009).

The changing trends realized managers about the transformation of management focus towards intangible capital management and sustainability in knowledge established environments and economies those commits progress with less palpable factors instead focused on human capital, social networking and organizational attitudes that positively takes organization towards success and smoothly boosts the economy as well (Davenport et al., 2002). In knowledge oriented society human capital is the well-nigh strategic resource in attainment of competitive advantage. In 2002, Goshal & Bartlett claims that organizational executives are very much that executives of the organization have become very much apprehensive regarding the right man such as availability of the work force and with appropriate skills. Most of the researchers argued that knowledge workers are a highly educated and qualified person who deals with the information and its application in specific situations to create new knowledge and address solutions of existing problems (Davenport

et al., 2002). Skilled workers have abilities and talent to input the ideas and expertise when www.zenithresearch.org.in organization is in need of the particular talent and comparatively easier for them to execute

new procedural lines in order to respond the change immediately (Lawler, 2008).

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Success of organization is based upon the talent management in today's competitive marketplace. Talent management is about the processes, systems and strategies and their implementation of those unified strategies which are designed to enhance the productivity of the workplace by developing the improved processes for attracting, development, utilization and retention of skilled people matches with the current and upcoming business needs. It is widely accepted that human resources adds value to the organizations. The most suitable way to attain competitive advantage for organization is to keep human resource as a strategic business partner in such a way that it improves the business performance. It is possible by managing the talent effectively, associates it with the change management and adaptability of employees that how they respond to change. It not only considers the influencing strategy of the organization but at the same time contributes with some value addition which impacts effectiveness (Lawler, 2008).

Talent management is striking for numerous reasons. Executives considers the value of talent and its implication in organization and in this context they focused on organizational core need such as workforce development for the upcoming challenges and talent management makes it more enhanced while the left over individuals have liberty to choose their careers (Lawler, 2008). Talent management basically refers to the functional human resource management course of action which supports the alignment and tracking and managing of high- worth personale or "the talented" but the rest others throws light upon that how the talent should be recognized and enlightened in the organization. The organization which is dealing with the management of talent strategically and purposefully explains that how they attract, source, select, develop them by trainings and ultimately retain them by promoting and rotating them throughout the organization.

Talent management is an approach and a process to view the things those entrust the talent management. Talent management system not only works strategically as a part of overall business strategy but also implements in the organizational routine processes throughout the organization. It cannot be left exclusively on human resource department to attract and retains of workforce instead it shall be proficient at all levels of hierarchy along the organization. Aggressive recruit talent management of valuable employees still occurs, and the retention of high performers remains critical (Smith, 2009).

Star performers are considered key asset of any organization, therefore attract special concentration. Finding these star performers is not the only issue; a bigger problem is actually what to do with them (Cohn et al, 2008). In talent management terminology, this is often

referred to as talent positioning that highlights the right talent at right time on right place with the required competencies and inspiration at all levels and locations of the organization (Tarique and Schuler, 2010). According to a survey of corporations, 76% consider talent management a main concern. In addition to this 85% of human resource professionals of these organizations works and manages directly by implementing talent management strategies (Fegley, 2006).

PRACTICAL IMPLICATION

Only 17% of all jobs in 1900 required knowledge workers. In today's business world that figure is well over 60% (Michaels, Handfield-Jones, & Axelrod, 2001). In this knowledge economy, the bottom line isn't what it used to be. The bottom line has shifted from being influenced by financial indicators such as earnings per share and net profit margin www.zenithresearch.org.in to include intangibles, such as corporate culture, leadership, and an organization's talent pool,

drive corporate performance. The percent of market value related to tangible assets in 1982

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ was 62 percent, with 38 percent for intangible assets. In 2000, the growing importance of intangibles is demonstrated in the fact that only 15 percent of market value is related to tangibles, while a whopping 85 percent is related to intangibles (Ulrich & Smallwood, 2003). The argument now is that these intangibles need to be measured and monitored, and subsequently tied to the bottom line. The bottom line must be redefined to include intangibles such as leadership practices, organizational capabilities, and the ability to attract talented people. And as organizations continue to automate business processes using technology, in order to remain competitive against others that: are doing the same, they must now focus on their talent. Additionally, though talent can be cultivated and developed, it can also leave the organization, become sick, demotivated, and perhaps influence others to behave in ways unfavorable for the organization. Worst of all, talent can deliver the "double-whammy" by moving to a direct competitor. Because of this, attracting, assessing, developing, and retaining talented people is even more important in today's volatile knowledge economy.

Talent management is the key to success in the new talent economy. Research done by McKinsey and Company in 1997 and 2000 shows that high-performing companies place management of organizational talent as a top three priority, utilize strategic talent management practices, and have leaders who possess a belief in the importance of talent as a foundation, while average-performing companies lack these qualities (Michaels, et al., 2001).

The management of talent is vital to the bottom line and managers must devote the majority of their time to managing this process. Other research conducted by Hewitt Associates in which over 100 large U.S. companies were surveyed in 2003 found that over 80% of high-performing companies (defined by total shareholder return) consistently identify, develop, and track the performance of their high-potential leaders, compared to only one-third of all companies surveyed (Not enough companies growing top talent, Hewitt study shows, 2003). Moreover, over $51.5 billion was allocated to training and development budgets in organizations in 2002, with an average of $54 billion over the past five years (Galvin, 2003). It is quite clear that investing in organizational talent is and will continue to be a priority as organizations strive to survive in the new knowledge economy.

THE NECESSITY OF TALENT MANAGEMENT

The strategic management of talent as such a critical driver of corporate performance has become more and more important in the last few decades. Several key events have influenced this new reality. It began with the onset of the Information Age in the 1980s

(Michaels, et al., 2001). Consequently, the importance of intangibles such as intellectual capital, brands, and talent, progressed beyond the importance of tangibles such as capital, factories, and machines. As we move toward a more knowledge-based economy, the value of highly talented people continues to multiply. With it, the demand for high-caliber managerial talent also grows. Organizations need managers who can meet today's challenges, especially those who value and develop talent. The prevalence of corporate downsizing in the 1980s, followed by a swell in job opportunities in the 19905, resulted in employee job-hopping being more common than staying loyal to one, and only one, organization. It is the case now that having only one company on one's resume is often viewed as unfavorable and instead, multiple companies on a resume has become more and more acceptable, and oftentimes a sign of upward mobility. More often, managers are passively seeking jobs, not by searching the Internet or want ads, but by keeping their eyes and ears open for the next opportunity

(Michaels, et al, 2001). www.zenithresearch.org.in

These trends mean that the power has shifted from the organization to the individual,

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ even in down-economic cycles, so that strategic talent management is a critical source of competitive advantage for organizations (Michaels, et al, 2001). Individuals are demanding more challenging work and opportunities to develop their skills and abilities, and to be compensated for their high performance. Employee survey results identified four issues related to talent management in which gaps exist between what the organization provides and what employees' managers provide. These include knowing and providing employees with training and development opportunities, providing resources and rewards employees need to excel at their jobs, knowing and managing employees' career expectations, and serving as a mentor to guide employee careers (Lewis, 2000a).

Because talented individuals are able to essentially write their own employment contract, decline unattractive employment offers, or leave organizations because of lack of developmental opportunities or work challenges, organizations must do whatever it takes to attract and retain top talent. One challenge is for organizations to strengthen their talent base fast enough to stay ahead of their competition.

There are four main reasons organizations must become focused on strategic talent management in today's talent economy. First, is the war for talent (Michaels, et al, 2001). All organizations need the right talent to meet customer and investor expectations, which affects the bottom line. Therefore, competition for these individuals is intense. Second, employers are no longer in charge of the employment contract. Instead, the individual is in control when deciding to accept an offer. If the right development opportunities aren't present for current employees or if the chance to work on interesting and challenging work is not there, he or she will go to the organization that can provide it (Pigott & Jones, 2004). Thus, organizations have to be flexible in offering the right kinds of opportunities and must be willing to eliminate the employment agreement altogether and work from a temporary, contractor, part- time, perspective. Third, the unemployment rate reached its highest level in 9 years at 6.4% in June 2003 (United States Department of Labor, 2003). It is obvious that there are millions of people out of work and looking for jobs. How do you choose the most talented with the right fit to the organization from thousands of applicants? Finally, past recessions followed by rapid recovery of jobs, companies have brought back employees laid off during the downturn.

The ongoing war for talent

Negotiating power has shifted from the organization to the employee

The fluctuating U.S. unemployment rate

Organizations are outsourcing the work leftover from downsized jobs

The human resources (HR) function needs to reinvent itself to deal with these challenges. The HR organization now operates in the new talent economy. This talent economy is driven by the factors listed to the left. Therefore, the role of the HR organization will need to expand to drive corporate performance and increase shareholder value (Jones & Arnold, 2003). HR organizations that emphasize talent management, align their goals with the overall organization, and measure human capital will see an increase in employee and

customer satisfaction, and the organization's top and bottom lines. www.zenithresearch.org.in www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ STRATEGIES FOR EFFECTIVE TALENT MANAGEMENT

Under the talent management category, the most imperative business strategies that are used to build up and maintain talent are leadership development and succession planning. Succession planning involves preparing for the organization's next senior team, developing a talent pool for internal recruitment of talent management by cross skilling employees, and/or ensuring the organization is future proofed with respect to availability of skills (Hills, 2009). In the talent management context, succession planning focuses on how the organization plans to replace key knowledge holders and how to ensure that high potential successors have been prepared to fill these key roles (Lengnick-Hall and Andrade, 2008). Succession planning that involves continually recruiting, training and promoting employees is not only necessary to prevent a brain drain of corporate knowledge, but is also important in identifying required competencies and communicating needed skills (Jones, 2008).

Talent management needs to continue to train and develop high performers for potential new roles, identify their knowledge gaps, and implement initiatives to enhance their competencies and ensure their retention (Cairns, 2009). Hills (2009) suggest five strategies for effective succession planning: 1) aligning succession planning with business strategy; 2) assessing leadership potential based on the 3Cs of fit - competence, connection and culture; 3) involving talent in the succession planning process; 4) using a mix of experience, outside or executive coaching and formal learning experiences in talent development and; 5) drawing from a wider net of potential successors.

Failing to appropriately reward key knowledge holders results not only in them eventually leaving the firm but also absenteeism, disruptive office politics, disengagement, and poor productivity. Planning effective programs that include both monetary and non monetary incentives requires an understanding of the organization's accumulated knowledge base and of what motivates talent to come to work, to be productive and develop expertise. Several reward and recognition models are adopted by organizations including traditional compensation packages, executive compensation, flexible compensation, perks, and informal and formal recognition (Inskeep and Hall, 2008). For some employees, recognition of their knowledge activities may take the form of providing career development programs that match the individual's career aspirations (Lazarova and Tarique, 2005).

RELATIONSHIP OF TALENT MANAGEMENT WITH EMPLOYEE WORK ENGAGEMENT

Although, this is commonly understandable that employees remain engaged with their work in favorable work settings because they are paid for it, however, literature also hints that work engagement comes from jobs satisfaction which in most cases is derived from effective talent management practices. Effective talent management procedures and systems demonstrates the commitment of talent management to human resources resulting in lower rate of employee turnover with higher volume of employee commitment and engagement, Consequently, employee engagement has significant effect on productivity or output of employees and in retention of talent. Despite many citations of an organizational lack of proficiency in talent management (Cappelli, 2008), a 2008 CIPD report "the war on talent" found that organizations are now placing greater scrutiny on their talent management processes (CIPD, 2010 b). Further, a 2008 Hewitt survey revealed that almost half of the companies studied planned to increase or sustain employee learning, engagement and www.zenithresearch.org.in

development budgets during the economic slowdown (Beechler and Woodward, 2009).

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Much has been written in the talent management literature on factors contributing to talent engagement and retention. Tymon et al., (20 I 0) research in India found that the key predictors of employee's intention to leave are satisfaction with and pride in the organization and perception of the employer as being socially responsible. The previous studies reveal that corporate social responsibility, which fosters employee engagement in social activities, is also associated with work engagement. Other key factors include building trust and open communication channels into the employer-employee relationship (Frank and Taylor, 2004) and fostering employee engagement (Tarique and Schuler, 2010).

RELATIONSHIP OF TALENT MANAGEMENT WITH EMPLOYEE VALUE ADDITION

Employee skills and capabilities that adds varying degrees of value to the organization, hence "everybody counts mantra" (Lepak and Snell, 2002) is an overly simplified view of organizational talent. Ultimately, this is where talent management differs from other human resource approaches. Talent management is concerned with identifying the core designation arrangements which have the prospective to differentially effects on the organizational competitive advantage and consecutively, fill these with "A performers" (Huselid et al. 2005).

Effective talent management practices for identifying key knowledge workers involve initially considering how individuals can help the organization to achieve its vision, mission and strategic goals, and highlighting what skills and talents are required (Jones, 2008). Hence, the organization's strategic direction determines which jobs and which employees are most important to achieving success. To help ensure that the most appropriate talent is effectively deployed the human resource throughout the organization, some researchers (Collings and Mellahi, 2009) focus on those pivotal talent positions that may impact on organizational competitive advantage. Talented employees are subsequently identified to fill those positions human resource tough recruiting ahead of the curve. This is similar to the Exclusive Positions perspective of talent management which seeks to fill "A positions" with "A players", fill support positions with "B players", and outsource "C players" (lIes et al, 2010).

At the same time talent management endeavors to be an effective and organizational need based on formal processes those involved several people who argued a strengthen linkage between leadership and talent that interpret it into a specific organizational

competitive advantage (Morton, 2005). It is claimed that every employee on organizational hierarchy at any position adds value to the organization in multiple ways, the assertion of talent management eventually has only a small number have the prospective which provides an above-average effect on performance (Boudreau and Ramstad, 2007). Certainly, it is claimed that the combination of talent management along with knowledge management holds significant competitive edge and implications for modem organizations (Vance and Vaiman, 2008).

There is extensive evidence available which shows that when knowledge workers need information to solve a complex problem (Assimakopoulos and Yan, 2006), make a strategically important decision (Cross and Prusak, 2002), or evaluate a new technology (Whelan et al., 2010), they invariable turn to their personal contacts, even when a world class

knowledge management system is in place (Cross and Borgatti 2002). www.zenithresearch.org.in

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Every organization today is interestingly concerned with selecting and retaining competent, committed people who are exclusively known as knowledge workers. Knowledge worker refers as a person who knows about the wholesome of his/her job than anyone else in the organization (Iles et al., 2010). Top executive managers espouse more flexible and responsive human resource practices to attract and retain these skilled knowledge workers (Mitchell et al., 2001). Furthermore, participation and personal relationships support motivation of knowledge workers as it raises their apprehensive self-determination and builds psychological contracts on the basis of emotional loyalties, including trust, fairness, justice, and punctuality. In today's society, where knowledge workers are regarded as a key asset, talent is rare and people are certainly more mobile. Therefore, every organization has to establish and implement a strategy for optimizing talent attraction, retention, and development. Other than recruiting talents that fit the required skills, it is of high importance to build goals that are based on strategy, conduct performance against these goals, and provide feedback to the performer to give a sense of common direction (Lawler, 2008). Talent management initiatives seek to develop the talented employee's capacity so that they might remain engaged with their works to produce maximum returns. All the levels of management must be updated with the vitality of talent management strategies that specifically conduct the strategies. This helps an organization to identify and focus on new competitive circumstances (de Pablos and Lytras, 2008). Work engagement is achieve human resource through motivating employees. The encouragement is further supported if the pay is also accompanied by social recognition or adds value to the procedures of self-development such as feedback, coaching, job rotation, and provision of employee training and developing a unified standard (Osterloh and Frey, 2000). Therefore, employees demand for motivation on continuous basis.

In summary all the organizations have realized the value of managing their core talent and have initiated new human resource practices which encourage the talent management as the top priority which responds to the change or crisis arises due to enhancements in knowledge based economic society.

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knowledge management. In V. Vaiman and C.M. Vance (eds) Smart Talent ManagementBuilding Knowledge Assets for Competitive Advantage. 33-65. Elgar Publishing, UK. Lepak, D.P. and Snell, S.A. (2002). Examining the human resource architecture: the relationship among human capital, employment and human resource configurations. Journal of Management. 28, (4), 517-543.

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35) Morton, L. (2005). Talent management value imperatives: Strategies for execution. New York: The Conference Board.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ ROLE OF WOMEN IN ENVIRONMENTAL CONSERVATION

RENU SHARMA*; DR. BALJIT KAUSHIK**

*Associate Professor, Department of Geography, B.L.J.S.P.G. College, Tosam, Bhiwani. **Associate Professor, Department of Political Science, Hindu College, Sonepat.

ABSTRACT

Growing population and technological advancement are continuously putting a strain on the environment and on country‟s natural resources. Over-exploitation of the country‟s resources like land, water, fuel etc. has resulted in degradation of resources mainly due to industrial pollution, soil erosion, deforestation and urbanization. Hence, it is utmost important to conserve and promote the natural resources and environment. Women have direct contact with natural resources like fuel, food and fodder, forest, water and land specially in rural areas where 70% of Indian population reside and directly dependent upon natural resources. Women are also responsible for using these resources to satisfy the basic needs of their families. Besides, that woman even played a leadership role for conservation and enhancement of environment. They have made great sacrifice for conservation of environment in „Chipko Movement‟. Similarly, now –a-days Medha Patekar, a social worker, Menaka Gandhi, an environmentalist and politician are playing key role for the conservation and promotion of the environment. Therefore, conservation of natural resources and promotion of environment cannot be done without involving the women in planning and training for promoting the values for conservation and promotion of environment. Hence, attempt has been made to assess the role of women in conservation and promotion of environment along with suitable strategy for the same. ______

INTRODUCTION

Women Symbolize 'Prakriti' means 'Nature' in Indian Philosophy She creates and nurtures the creation to bloom She signifies 'shakti' - the power that drives the system True, that the status of Indian women has eroded significantly since the Vedic times .Nevertheless, with the spread of education and social reforms 20th century experienced reawakening and a gradual uprise. The objective of the present paper is to focus on facts and figures of modern day women‟s contribution in the process of environmentally sound development. Conversely, it also tries to map the impact of environmental problems of women.

GENDER AND PERCEPTION OF THE ENVIRONMENT

Both women and nature have been considered as subordinates entities by men throughout history, which conveys a close relationship between them. Some scholars are of the opinion that men had degraded the physical environment abruptly while they had dominance over women and women‟s great investment in sustainability of environment. Whereas some other have theorized that women would protect the Earth better than men if in power Although

there is no evidence for this hypothesis, recent movements have shown that women are more www.zenithresearch.org.in www.zenithresearch.org.in

sensitive to the earth and its problems They have created a special value system about environmental issues . People's approaches to environmental issues may depend on their

relationship with nature

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Women in India are playing a crucial role in protection and conservation of environment. Women in our country have brought a different perspective to the environment debate, because of their different experience base. Poor women's lives are not compartmentalized and they see the issues in a broad and holistic perspective. They understand clearly that economics and environment are compatible. Their experience reveals to them that soil, water and vegetation, necessary for their day-to-day living, requires care and good management. Environmental degradation is related not only to the biosphere alone, but to the social sphere as well.

Traditionally, women have been responsible for subsistence and survival for water, food, fuel, fodder and habitat, though they rarely get the credit for nurturing these life support systems. In addition, this environmental destruction worsens women‟s problem in a way very difficult from that of man. Women have always been the major conservers of bio-diversity. Even today they perform duties such as seed selection, multiplication and conservation. The on-farm conservation traditions of rural and tribal women, with reference to agro-biodiversity are well known. Unfortunately, current food security systems depend on too few crops. It is important to expand the basis of food security by including large numbers of spices and varieties of food plants still maintained by tribal and rural families. For this purpose, women can be trained in the revitalization of the on-farm conservation traditions of the older generation through bio-technological process. The training should also include equipping them for compiling bio-diversity inventories and for taking decision on issues like giving consent to using their genetic material by breeding companies / institutions.

Traditionally, women are responsible for resource mobilization and management. Fuel, fodder and water collections are the accepted responsibilities of women. As the environment degrades, these basic necessities become difficult to collect. The time a woman spends on gathering fuel, fodder and water, as well as attending to household work, agricultural work and animal care, reduces her competence. Dr. M. S. Swaminathan, former member of the planning Commission stated, "If men had to fetch drinking water the 230,000 villages would not have remained without provision of drinking water after several years of planned development". Traditionally, women have dealt with non-monetized biomass based subsistence economy of the household i.e. firewood, cow dung, crop wastes, organic manure, etc. In comparison men tend to destroy nature to earn cash even if it means creating hardship in their own families for their womenfolk to collect fuel and fodder e.g. sale of herbs and wood. The upshot is that women work as unpaid laborers on family farms with a greater role than men in operational decision making. The population pressure has increased male migration, which in turn adds to the load of work on women. Thus women's responsibilities extend from the household duties to working in the fields as well. A destructive chain reaction emerges. As the time required for fuel and fodder collection grows and firewood becomes scarce, cow-dung previously spread on the fields, is used in the kitchen, thereby depleting soil resources and causing a negative effect on the livelihood of local people and environment.

Throughout history men have looked at natural resources as commercial entities or income generating tools, while women have tended to see the environment as a resource supporting their basic needs. As an example, rural Indian women collect the dead branches which are cut by storm for fuel wood to use rather than cutting the live trees Since African, Asian, and Latin American women use the land to produce food for their family, they acquire the

knowledge of the land/soil conditions, water, and other environmental features Any changes www.zenithresearch.org.in in the environment on these areas, like deforestation, have the most effect on women of that

area, and cause them to suffer until they can cope with these changes . Women play a key

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ role in the protection of biological diversity through their varied responsibilities. They have identified the need not only to protect the bio-diversity, but also to recreate it

The Indian women were always ahead in the matter of prevention of pollution and protection, preservation, conservation, promotion and enhancement of the environment They have made greater sacrifices, have exhibited greater love than man in the area of environment protection The strong desire, devotion and dedication towards better environment made Indian women a crusader against environment pollution

ENVIRONMENTAL MOVEMENTS INITIATED BY WOMEN

People in Western countries think they originated the environmental movements without knowing that the villagers in mostly poor and developing countries initiated these movements

The direct concern of Indian women with environment protection can be traced long back to 1731 A D , when Amrita Bai of Khejaralli village of Jodhpur District of Rajasthan sacrificed her life for saving the trees of her village She is the founder of the modern „Chipko Movement‟ In order to save the trees, she embraced the trees and was cut as per the orders of the then Maharaja Her three daughters and later her husband came forward and one by one 363 people were killed and the trees remained untouched because of villagers strong resistance

This movement started by Amrita Bai in 1731 A D was revived by Bachni Devi and Gaura Devi of Uttar Pradesh in 1972. They snatched the axe from the wood cutters and warned contractors not to cut the trees. They gave a slogan which means forests bear soil, water and air and the three substances are basic requirements of our life

An example of female prominence in the defense of natural forests comes from India in 1906 As forest clearing was expanding conflict between loggers and government and peasant communities increased To thwart resistance to the forest clearing, the men were diverted from their villages to a fictional payment compensation site and loggers were sent to the forests The women left in the villages, however, protested by physically hugging themselves to the trees to prevent their being cut down, giving rise to what is now called the Chipko movement, an environmentalist movement initiated by these Indian women (which also is where the term tree-huggers originated) This conflict started because men wanted to cut the trees to use them for industrial purposes while women wanted to keep them since it was their

food resource and deforestation was a survival matter for local people

The movement was an act of defiance against the state government‟s permission given to a corporation for commercial logging Women of the villages resisted, embracing trees to prevent their felling to safeguard their lifestyles which were dependent on the forests Deforestation could qualitatively alter the lives of all village residents but it was the women who agitated for saving the forests Organized by a non-governmental organization that Chandi Prasad Bhatt led, the Chipko movement adopted the slogan “ecology is permanent economy ” The women embracing the trees did not tag their action as feminist activism; however, as a movement that demonstrated resistance against oppression, it had all the markings of such "

It began when Maharajah of Jodhpur wanted to build a new palace in Rajasthan which is www.zenithresearch.org.in

India‟s Himalayan foot hills While the axe men were cutting the trees, martyr Amrita Devi

hugged one of the trees This is because in Jodhpur each child had a tree that could talk to it

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ The axmen ignored Devi and after taking her off the tree cut it down Her daughters environmentalists like Chandi Prasad Bhatt and Sunderlal Bahuguna.

The threat of deforestation was enough to rally the local women to civil disobedience to protect the eco-system They knew very well that their well being, their prosperity, their life, all was associated with the forest Some commentators have described chipko movement as Women‟s movement (Bahuguna 1975; Bhatt and Kumar 1982, Jain 1983, Mishra & Tripathi 1978) .It is important to recall the names of Indian women who have fought legal battles in the court of law for environment protection, as Mrs. Sarla Tripathi of Indore, Kinkari Devi of Sirmour District, Krishna Devi of Rajasthan etc .

Today the torchbearers are Maneka Gandhi, an environmentalist & politician, Medha Patekar, a social worker & environmentalist who are carrying on the crusade of environment protection But the problem of present day environment protection cannot be solved with the involvement of a few selected groups of women It requires a global involvement of the entire community of womenfolk Today, there is need of participation of every woman of every class / every locality, and any woman should not underestimate her role

SUGGESTIONS

Women can contribute to, they can participate in, and they can play their role in protection of the environment in many ways:

1 .DEVELOPING HOBBY OF GARDENING

We all are familiar with the fact that these days houses are very small Our women can come forward by developing hobby of gardening They can at least keep the environment of their houses healthy Plants add to the beauty of the houses, provide freshness to the eyes and are helpful in keeping the nearby environment clean Tulsi plant is being worshipped since long, It is a good source of oxygen as well as this plant has medicinal value Vegetables like Turai “Beans” do not need much space to grow Besides keeping the surrounding atmosphere healthy, money is also saved Saplings of plants can also be shared with neighbors. Again, our women can make use of their management ability by using empty cans, bottles, tins etc. as pots for growing the plants

2 .USE OF GARBAGE BOX

Usually, we are in habit of throwing the rubbish and the waste after cutting the vegetables, graining, wiping and cleaning the floor, on the municipal road, just outside our houses This creates nuisance which gives birth to mosquitoes and Malaria or other viral fever Hence every woman should use the garbage box The collected garbage should be thrown in the garbage boxes kept by the municipality If this habit is developed, we will not only be able to keep our houses clean but, the colony, the city and our surrounding environment will also become orderly, tidy and healthy

3 .USE OF NON-CONVENTIONAL SOURCES OF ENERGY

India has limited resources of conventional energy Dependency of our mass population for fuel on forests is another additional cause for the vanishing forest wealth and disturbing eco-

systems In developing countries, like India, women are collecting fuel wood from nearby www.zenithresearch.org.in forests, carrying it for domestic purposes and also selling it elsewhere to supplement their

family incomes The fire wood etc burnt in open country chulha wastes 82% of the fuel, since

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ efficiency of heat utilization is only 12% (UNICEF, 1991) Soil, water and forest can be conserved if alternative kitchen fuel is provided Our women can again contribute in this direction and come forward by using solar lights, solar geyser, solar cooker, smokeless chulhas etc.

4 .ADOPTION OF SMALL FAMILY NORM

Today, the greatest problem which the world community is confronting is the problem of population explosion. It is the root cause of all other problems. If we follow the small family norm, we will be able to check the environment pollution also.Our last prime minister Smt. Indira Gandhi echoed „It‟s our paramount duty to educate our rural masses, about the value and the benefit of family planning, so that we may put a check on population explosion and may lead a better healthy, hygienic and peaceful life‟ Our woman can shoulder this responsibility too

5 .MINIMUM USE OF LIGHT

In near future, we will face another pollution i.e. Light pollution. Our streets are flooded with sodium lights; we are unaware of the fact that the rays of these lights are harmful for our eyes and body. We must make minimum use of light, only when it is needed. We should not misuse it Scientific data reveals that one unit of saving of electricity is equivalent to 1 25 unit of electricity generation. Our women again play a contributory role as they are the managers of their family

6 .DEVELOPMENT OF GOOD HABITS AMONG CHILDREN

Mother is the first teacher. She plays an important role in the development of the personality of the child .She can instill in future generations a respect for nature and the value of bio- diversity She can develop good habits in the child from the very beginning as:

Not to spit here and there;

To have love and respect for the nature;

Not to spoil and harm the plants/trees, during their visits to gardens, public

Not to throw the rubbish here and there;

Keep the things in a tidy manner; parks, school garden etc;

Not to allow the children to waste the paper – the children are usually in habit of tearing away papers from their note books, a mother can keep a check on this bad habit of the child. She can make them understand that for paper production, the wood is used and deforestation can bring unhappiness by disturbing the eco-system.

Though the Government of India is working towards an environmentally sound and sustainable quality of life, the problems, challenges and issues are multi-faceted. However, women in India are playing a crucial role in protection and conservation of environment.

Women in our country have brought a different perspective to the environment debate, www.zenithresearch.org.in www.zenithresearch.org.in

because of their different experience base. Poor women‟s lives are not compartmentalized and they see the issues in a broad and holistic perspective. They understand clearly that

economics and environment are compatible. Their experience reveals to them that soil, water

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ and vegetation, necessary for their day-to-day living and requires care and good management. Environmental degradation is related not only to the biosphere alone, but to the social sphere as well.

REFERENCES

Agarwal, Anju and D.R.Arora,(1989) “Women in Rural Society” Vohra Pub. & Distributors, Allahabad.

Agarwal, Bina (1998). “Neither Sustenance Nor Sustainability- Agricultural Strategies, Ecological Degradation and Indian Women In Poverty”. In Bina Agarwal (Ed), Structures of Patriarchy. Kali for Women, New Delhi.

Agarwal, Bina (2009),”Gender and Forest Conservation-Impact of Women‟s Participation in Community Forest Governance, Ecological Economies. In press

Mishra, A.(1978) “Chipko Movement:Uttrakhand Women‟s Bid to save Forest Wealth”. People‟s Action. New Delhi

Mariama, A. and Henshall, J. (1995) “Gender and the Environment:Women‟s Time Use as a Measure of Environment Change”. Global environmental Change. Vol 5, pp-337- 346.

WEB RESOURCES

http://www.womenenvironment.org/detail.php?pageId=45

http://www.articlesbase.com/environment-articles/role-of-women-in- conservation-of-environment-2585979.html#ixzz1YZ9miadL

http://www.womenenvironment.org/detail.php?pageId=230

www.zenithresearch.org.in www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ RETAILING IN INDIA: AN ANALYTIC VIEW OF SUNRISE INDUSTRY

DR. K. L. RATHOD*

*Associate Professor, Marketing Area, S. K. School of Business Management, North Gujarat University, Patan.

ABSTRACT

This paper is aimed at analyzing the various issues pertaining to the sunrise sector “Retail Industry”. It studies the various aspects like its evolution, its emergence, its spread and its salient features etc. It focuses on various factors like changing demographics and the lifestyle of the Indian consumers which are primarily responsible for it. Also probable emerging trends too are observed, and strategies the Indian players need to adopt are suggested. ______

INTRODUCTION

Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain - connection between the bulk producers of commodities and the final consumers. It covers diverse products such as foot ware, apparels, consumer durables, financial services and leisure. In short a retailer is a person responsible for making available the desired product in desired size at desired times to a customer. That’s his value proposition to customers. The retail industry has developed into a full-fledged industry in almost all developed countries. Invariably 80% of retailing is carried out via the organized sector. Large retail chains like Wal-Mart, Carre-four Group, Sears, K-Mart, McDonalds, etc. have now replaced the individual small stores. Large retail formats, with high quality ambiance and courteous, and well-trained sales staff are regular features of these retailers.

TOP TEN RETAILERS WORLDWIDE

Rank Retailer Name, Country 2007 Retail Sales (USD)

1. Wal-Mart Stores, Inc., USA 374,256

2. Carrefour, France 112,604

3. Tesco Plc, UK 94,760

4. METRO AG., Germany 87,586

5. Home Depot, USA 77,349

6. Kroger Co., USA 70,235

www.zenithresearch.org.in www.zenithresearch.org.in

7. Scwarz,Germany 69,346

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 8. Terget,USA 63,367

9. Costco wholesale, USA 63,088

10. Aldi Gmbh, & Co, HGg 58,487

*Source: Global Powers of Retailing study 2009

Broadly the organized retail sector can be divided into two segments, In-Store Retailers, who operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers, and the non-store retailers, who reach out to the customers at their homes or offices. Apart from using the internet for communication (commonly called e-tailing), non- store retailers did business by broadcasting of infomercials, broadcasting and publishing of direct-response advertising publishing of traditional and electronic catalogues, door-to-door solicitation and temporary displaying of merchandise (stalls).

Formats: Major formats of In-Store Retailing have been listed as given below:

BRANDED STORES: Exclusive showrooms either owned or franchised out by a manufacturer. The Value Proposition : Complete range available for a given brand, Certified product quality.

SPECIALTY STORES: Focus on a specific consumer need, carry most of the brands available. Greater choice to the consumer, comparison between brands possible

THE VALUE PROPOSITION: Greater choice to the consumer, comparison between brands possible.

DEPARTMENT STORES: Large stores having a wide variety of products, organized into different departments, such as clothing, house wares, furniture, appliances, toys, etc. The Value Proposition: One stop shop catering to varied consumer needs.

SUPERMARKETS: Extremely large self-services retail outlets.The Value

Proposition: One stop shop catering to varied consumer needs.

DISCOUNT STORES: Stores offering discounts on the retail price through selling high volumes and reaping the economies of scale. The Value Proposition: Low prices.

HYPER-MART: Larger than a Supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city. The Value Proposition: Low prices, vast choice available including services as cafeterias.

CONVENIENCE STORES: Small self-service formats located in crowded urban areas.

THE VALUE PROPOSITION: Convenient location and extended operating hours. www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Shopping Malls: An enclosure having different formats of in-store retailers, all under one roof. The Value Proposition: Variety of shops available close to each other.

RETAILING FORMATS IN INDIA: Some of the prevalent relating formats in India include:

SPECIALITY STORES: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

DEPARTMENTAL STORES: Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.

BRANDED STORES: Exclusive showrooms run by premium brands have been the catalysts in pushing up the Indian retail scenario. This concept is now being used to introduce organized retailing to the second rung towns. Madura Garments has started setting up exclusive outlets in cities like Trichy and Thanjavur.

MALLS : Most malls give floor space out to individual shops on lease, and these are enticed by the economies resulting from the sharing of costs. India's largest shopping arcade Spencer Plaza (600,000-sq-ft) in Chennai is an example. In malls like these, the combined brand pull of all outlets is used to create a pull for the mall.

Absence of discounting as a dominant format of retailing in India is a glaring peculiarity. The reasons are two-fold. Unlike most Western countries, Indian retailers have much less bargaining power. They thrive as small store and don't have the clout to negotiate terms with the manufacturers. The other reason is that the retailers themselves have no economies of scale to offer discounts on their own. However, the scenario is now changing. Increased investments and the entry of big business houses in retailing is leading to the emergence of bigger retailers, who can both bargain with the suppliers, as well as, reap economies of scale. Hence, discounting is becoming an accepted practice.

The emergence of new sectors has been accompanied by changes in existing formats as well

as the beginning of new formats:

•Hyper marts:

•Large supermarkets, typically 3,500-5,000 sq. ft.

•Mini supermarkets, typically 1,000-2,000 sq. ft.

•Convenience stores, typically 750-1,000sq. ft.

•Discount/shopping list grocer

The traditional grocers, by introducing self-service formats as well as value-added services such as credit and home delivery, have tried to redefine themselves. However, the www.zenithresearch.org.in boom in retailing has been confined primarily to the urban markets in the country. Even

there, large chunks are yet to feel the impact of organized retailing. There are two primary

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ reasons for this. First, the modern retailer is yet to feel the saturation' effect in the urban market and has, therefore, probably not looked at the other markets as seriously. Second, the modern retailing trend, despite its cost-effectiveness, has come to be identified with lifestyles.

In order to appeal to all classes of the society, retail stores would have to identify with different lifestyles. In a sense, this trend is already visible with the emergence of stores with an essentially `value for money' image. The attractiveness of the other stores actually appeals to the existing affluent class as well as those who aspire for to be part of this class. Hence, one can assume that the retailing revolution is emerging along the lines of the economic evolution of society.

THE EVOLUTION OF INDIAN RETAIL INDUSTRY

For Indian retailing, things started to change slowly in the 1980s, when India first began opening its economy. Textiles sector (which companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim) was the first to see the emergence of retail chains. Later on, Titan, maker of premium watches, successfully created an organized retailing concept in India by establishing a series of elegant showrooms.

For long, these remained the only organized retailers, but the latter half of the 1990s saw a fresh wave of entrants in the retailing business. This time around it was not the manufacturer looking for an alternative sales channel. These were pure retailers with no serious plans of getting into manufacturing. These entrants were in various fields, like - FoodWorld, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books.

INDIAN RETAIL MARKET SCENARIO

“The real GDP is expected to grow at 8 to 10 per cent per annum in the next five years. As a result, the consuming class with annual household incomes above Rs 90,000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. Consequently, the retail business in India is estimated to grow at 13 per cent annually from USD 322 billion in 2006- 07 to USD 590 billion in 2011-12,” states the findings of the report furnished by the Indian Council for Research on International Economic Relations (ICRIER).

The study also shows that the unorganized retail sector is expected to grow at about

10 per cent per annum with sales rising from USD 309 billion in 2006-07 to USD 496 billion in 2011. “Given the relatively weak financial state of unorganised retailers, and the physical space constraints on their expansion prospects, this sector alone will not be able to meet the growing demand for retail,” analyses the ICRIER report. “Hence, organized retail which now constitutes a small 4 % per cent of total retail sector is likely to grow at a much faster pace of 45-50 per cent per annum and quadruple its share in total retail trade to 16 per cent by 2011- 12.”

The latest McKinsey study titled “India’s Retailing Comes of Age” has predicted a definite retail revolution in India.. Out of this huge retail market organized retailing is only 2 %. More than 15 million retail outlets, mostly run by small shopkeepers, constitute the remaining 98 %. The retail sector is growing at the rate of 20% per annum and more important, the organized retail sector is estimated to grow from 2% of the total retail market www.zenithresearch.org.in

in 2001 to 22% in 2005. Most of this rapid growth will be in the large metropolitan cities.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ The various segments that make up the organized retail industry along with their size are in table given below.

Segment Market Size (Rs. Crore)

Textiles and clothing 4050

Jewellery 2,000-2,500

Consumer Durables 1500

Footwear 1,300-7,500

Food and personal care 1000

Non-Store retail 900

Luggage, watches and tyre 500

Books and music 390

Retailing is the most active and attractive sector of the last decade. Very rightly it is hailed as the “sunrise sector”. As such the retailing industry has been present through history in our country, but it is of lately that it has witnessed a tremendous growth. As a reason it has attracted hordes of players to this sector. Increasing purchasing power of Indian consumers is one of the prime reasons for its dynamic rise.

Especially post-liberalization India has witnessed a great variety in the products, increasing economies of scale, and use of modern technology in supply and distribution chain which has helped greatly. Several conventional stores have been upgrading themselves to today’s modern retailing. Also new players have joined the band wagon as a chain of retail

stores to meet changing needs of customers as well as the manufacturers. The key offerings

from these chains are Attractiveness, accessibility and affordability.

THE EMERGING SECTOR

Retailing, one of the largest sectors in the global economy, is going through a transition phase not only in India but the world over. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar), convenience stores (Convenio, HP Speed mart) and fast-food chains (McDonalds, Dominos).

It is the non-food segment; however that foray has been made into a variety of new www.zenithresearch.org.in

sectors. These include lifestyle/fashion segments (Shoppers' Stop, Globus, LifeStyle,

Westside), apparel/accessories (Pantaloon, Levis, Reebok), books/music/gifts (Archies,

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Music World, Crosswords, Landmark), appliances and consumer durables (Viveks, Jainsons, Vasant & Co.), drugs and pharmacy (Health and Glow, Apollo).

SPREAD OF ORGANIZED RETAILING

Organized retailing is spreading and making its presence felt in different parts of the country. The trend in grocery retailing, however, has been slightly different with a growth concentration in the South. However, the Mecca of retailing is undoubtedly Chennai. What was considered a `traditional', conservative' and `cost-conscious' market, proved to be the home ground for most of the successful retail names - FoodWorld, Music World, Health and Glow, Vitan, Subhiksha and Viveks -to name a few. The choice of Chennai as the `retail capital' has surprised many, but a variety of factors acted in its favour. Chennai, in spite of being a rapidly growing metropolis offers reasonable real estate prices, one of the most critical elements for the industry. Chennai has been witnessing a high industrial growth and increasing presence of the MNCs, both in the IT sector as well as outside it. The industrial boom has led to the emergence of new residential areas with aggregation of professionals as well as a rapid increase in the number of `double-income' households and growth of the nouveau riche/upper middle class with increased purchasing power. This has been combined with the increasing need for touch and feel shopping (especially for the large migrant population). All the factors have acted favourably in nurturing the industry.

CONSUMER- THE PRIME MOVER

A variety of factors seem to influence the growth in the retailing industry. `Consumer Pull', however, seems to be the most important driving factor behind the sustenance of the industry. In this context, A. F. Ferguson & Co. had carried out a brief survey among consumers across income segments to understand their spending pattern. An analysis of the `monthly purchase basket of the consumers surveyed indicated that the average monthly household spend on food and grocery related items varied across income segments. For instance, in the case of upper income households, the average spend was around Rs 4,200 per month. As against this, the average spend in the case of a middle income household was around Rs. 2,850 and lower income households Rs. 1,250 per month. (This is computed from a sample of 100 customers having an average family size of four.) .

Based on the distribution of the more than 15 lakh households in Chennai across income segments and the average spend, a conservative estimate of the grocery retailing potential at Chennai will be around Rs. 300 Crores. Besides increasing purchasing power, a variety of other factors also seem to fuel the retailing boom. With increase in double-income households and working women, there is an increasing pressure on time with very little time being available for leisure.

In this scenario, consumers are seeking the convenience of one-stop shopping, whereby they could have better utility of time. They are also seeking speed and efficiency in processing, as a result. Being more aware, consumers are on the look-out for more information, better quality and hygiene as well as increased customer service. These changes in consumer behaviour also augur well for the retailing industry.

However, in India there are no uniform trends with respect to consumer buying

behavior. There are visible differences in the shopping pattern of consumers across income www.zenithresearch.org.in segments as shown in the table. Organized retailing has definitely made headway in the upper

class. However, even in this segment, items such as milk, fruits, vegetables and a significant

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ portion of `through-the-month' purchases seem to be done at traditional outlets. The middle income class prefer shopping for processed food and personal care in supermarkets and fall back on traditional outlets for bulk shopping. Organized retail outlets seem to be associated with branded items/special purchases. Organized retailing does not seem to have made an impact on the lower class, except for `curiosity' shopping. The biggest question before organized retailers therefore, is whether this really means a huge untapped potential for the organized retailers and whether the conversion in mindset going to be easy.

Salient features of Retailing in India: The retail market size in India is estimated to be around $180 billion. Retailing provides jobs to almost 15 percent of employable Indian adults and it is perhaps the largest contributor to India's GDP. But the flip side of the coin is that the average size of each of the retail outlets in India is only 50 square feet and though a large employer, the industry is very unorganized, fragmented and with a rural bias.

1. The Indian retail industry is unorganized. There are nearly twelve million retail outlets in India and the number is growing. Two thirds of these stores are in rural location. The vast majority of the twelve million stores are small "father and son" outlets. According to the "Retailing in India" report published by the PwC Global Retail Intelligence Program, share of the unorganized sector is 98%.

2. The Indian retail industry is fragmented. Retail stores in India are mostly small individually owned businesses. The average size of an outlet is 50 s.q. ft. and though India has the highest number of retail outlets per capita in the world, the retail space per capita at 2 s.q. ft per person is amongst the lowest in the world.

3. The Indian retail industry has rural bias. Nearly two thirds of the stores are located in rural areas. The retail industry in rural India has typically two forms: "Haats" and "melas". Haats are the weekly markets: they serve groups of 10-50 villages and sell day-to-day necessities. They are frequently used as replenishment point for the small village retailer. Melas are larger in size and more sophisticated in terms of the goods sold. Mela merchandise would include more complex manufactured products such as televisions.

Even in urban areas, organised in India is restricted to the top few cities of the country as shown in Table given below:

Top 6 Next 4 Top 6 Next 4

Cities 1999 2005 (Expected)

Distribution of organized retailing 88% 12% 66% 20%

4. Retail management skills. It is a fact that the retailing industry is in its starting phase in our country. The benefits of organised retailing will only be felt once an equitable scale is achieved. This to a large extent depends on the store size, the walkthroughs, bills per customer per year, average bill size and the revenue earned per sq. ft. But besides resources

and bottom line, a variety of other aspects need to be in place for tasting success. The need www.zenithresearch.org.in

for qualified and trained manpower is of utmost importance. The need for specialised skills is

increasingly felt in the areas of:

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ •Strategic management - strategising, targeting and positioning, marketing and site selection, among others.

•Merchandise management - Vendor selection, inventory management, pricing and so on

•Store management - Layout, display, CRM, inventory management, etc.

•Administrative Management - Human resources, finance, marketing and so on.

With the need for specialized skill set, retailing has become a specialized area of knowledge and training. The RPG School of Retailing and the introduction of specialized retailing courses at various business schools, including the IIMs, stand testimony to this.

TECHNOLOGICAL CONCERNS

The other important aspect of retailing relates to technology. It is widely felt that the key differentiator between the successful and not so successful retailers is primarily in the area of technology. Simultaneously, it will be technology that will help the organized retailer score over the unorganized players, giving both cost and service advantages.

Retailing is a `technology-intensive' industry. It is quoted that everyday at least 500 gigabytes of data are transmitted via satellite from the 1,200 point-of-sales counters of JC Penney to its corporate headquarters. Successful retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and thereby, save cost. Wal-Mart pioneered the concept of building a competitive advantage through distribution and information systems in the retailing industry. They introduced two innovative logistics techniques - cross-docking and electronic data interchange.

Today, online systems link point-of-sales terminals to the main office where detailed analyses on sales by item, classification, stores or vendor are carried out online. Besides vendors, the focus of the retailing sector is to develop the link with the consumer. `Data Warehousing' is an established concept in the advanced nations. With the help of `database retailing', information on existing and potential customers is tracked. Besides knowing what was purchased and by whom, information on softer issues such as demographics and psychographics is captured.

Retailing, as discussed before, is at a nascent stage in our country. Most organised players have managed to put the front ends in place, but these are relatively easy to copy. The relatively complicated information systems and underlying technologies are in the process of being established. Most grocery retailers such as FoodWorld have started tracking consumer purchases through CRM. The lifestyle retailers through their `affinity clubs' and `reward clubs' are establishing their processes. The traditional retailers will always continue to exist but organised retailers are working towards revamping their business to obtain strategic advantages at various levels - market, cost, knowledge and customer.

With differentiating strategies - value for money, shopping experience, variety, quality, discounts and advanced systems and technology in the back-end, change in the equilibrium with manufacturers and a thorough understanding of the consumer behavior, the ground is all set for the organized retailers. The bottom-line could look brighter, after all! It

would be important to note, however, that the retailing industry in India is still a `protected www.zenithresearch.org.in industry'. It is one of the few sectors which still has restrictions on FDI. Given the current

trend in liberalization, it will not be long before the retailing sector is also thrown open to

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ international competition. This will see a further segregation of the international retailing brands and the domestic retailers, thereby injecting much greater dynamism into the market. That will be when the real action will begin. In the second article on retailing, we uncover a model for retailers to handle the emerging scenario.

TECHNOLOGY IN RETAIL

Over the years as the consumer demand increased and the retailers geared up to meet this increase, technology evolved rapidly to support this growth. The hardware and software tools that have now become almost essential for retailing can be into 3 broad categories.

1 CUSTOMER INTERFACING SYSTEMS

Bar coding and scanners : Point of sale systems use scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. In a matter of seconds, the items in the cart are hit with laser beams and scanned. All that the consumer has to do is to pay for the goods.

Payment: Payment through credit cards has become quite widespread and this enables a fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. Rather than manually process a cheque, the retailer voids it and hands it back to the consumer along with a receipt, having digitally captured and stored and image of the cheque, which makes the process very fast.

Internet : Internet is also rapidly evolving as a customer interface, removing the need of a consumer physically visiting the store.

2 OPERATION SUPPORT SYSTEMS

ERP System: Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better.

CRM Systems: The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. This, along with the various available CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses.

Advanced Planning and Scheduling Systems : APS systems can provide improved control across the supply chain, all the way from raw material suppliers right through to the retail shelf. These APS packages complement existing (but often limited) ERP packages. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly

factory scheduling and daily distribution scheduling into one overall planning process using a www.zenithresearch.org.in

single set of data. Leading manufactures, distributors and retailers and considering APS

packages such as those from i2, Manugistics, Bann, MerciaLincs and Stirling-Douglas.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 3 STRATEGIC DECISION SUPPORT SYSTEMS

Store Site Location: Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. Today, software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor-spaces as well.

Visual Merchandising : The decision on how to place & stack items in a store is no more taken on the gut feel of the store manager. A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options. The SPACEMAN Store Suit from AC Neilsen and ModaCAD are example of products helping in modeling a retail store design.

TRENDS IN RETAILING

Retailing in India is at a nascent stage of is evolution, but within a small period of time certain trends are clearly emerging which are in line with the global experiences. Organized retailing is witnessing a wave of players entering the industry. These players are experimenting with various retail formats. Yet, Indian retailing has still not been able to come up with many successful formats that can be scaled up and applied across India. Some of the notable exceptions have been garment retailers like Madura Garments & Raymonds who was scaled their exclusive showroom format across the country.

1 EXPERIMENTATION WITH FORMATS: Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out; the old ones tweaked around or just discarded. Some of these are listed in Table below.

Retailer Current Format New Formats. Experimenting With

Shoppers' Stop Department Store Quasi-mall

Ebony Department Store Quasi-mall, smaller outlets, adding food retail

Crossword Large bookstore Corner shops

Piramyd Department Store Quasi-mall, food retail

Pantaloon Own brand store Hypermarket

Subhiksha Supermarket Considering moving to self service

Vitan Supermarket Suburban discount store

Foodworld Food supermarket Hypermarket, Foodworld express www.zenithresearch.org.in www.zenithresearch.org.in

Globus Department Store Small fashion stores

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Bombay Bazaar Aggregation of Kiranas

Efoodmart Aggregation of Kiranas

Metro Cash and carry

S Kumar's Discount store

Retailers are also trying out smaller versions of their stores in an attempt to reach a maximum number of consumers. Crossword bookstores are experimenting with Crossword Corner, to increase reach and business from their stores. FoodWorld is experimenting with a format of one-fourth the normal size called FoodWorld Express.

2 STORE DESIGN: Irrespective of the format, the biggest challenge for organized retailing is to create an environment that pulls in people and makes them spend more time shopping and also increases the amount of impulse shopping. Research across the world shows that the chances of senses dictating sales are as much as 10-15% for certain categories. This reason is good enough for organised retailers to bring in professional designers while developing a new property. And, that is why retail chains like MusicWorld, Baristal, Piramyd and Globus and laying major emphasis & investing heavily in store design.

Music World spent three months in college campuses and metros studying the market and talking to youngsters before starting work. The brand identity was created after extensive research: a logo was designed and the look of the stores across the country was decided upon. Apart from the visual impact, the functionality of the store design was also taken care of. Listening posts have been created for people to listen to their favorite album and an area in the center of the stores has been earmarked for celebrity visits and promotions.

3 EMERGENCE OF DISCOUNT STORES: What does Subhiksha In Chennai, Margin Free in Kerala and recent entrants like Bombay Bazaar in Mumbai, RPG's - Giant in Hyderabad, Big Bazaar in Kolkata, Hyedrabad and Bangalore have in common? Their products are below MRP.

Discount stores have finally arrived in India and they are expected to spearhead the

revolution in organisation retailing. Though this segment is growing, it is small compared to international standards where around 60 per cent of the business comes from this format. Internationally, the largest retailer in the world Wal-Mart is a discounter. These discount stores have advantages of price, assortment dominance and quality assurance and have the ability to quickly build scale and pass on the benefits. However, the success would be for retailers who are able to build the scale fast and manage their operations efficiently while offering value to the customer consistently.

4 UNORGANIZED RETAILING IS GETTING ORGANIZED: To meet the challenges of organized retailing that is luring customers away from the unorganized sector, the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart have also

been formed which are aggregations of Kiranas. In a novel move, six Delhi based restaurants www.zenithresearch.org.in

have come together and formed a consortium: NFC, to promote New Friends Colony, a posh

locality in the Capital, as a branded place in town. The aim is to increase footballs in the area,

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ which is fast losing its sheen to its closest and upcoming destinations such as large cineplexes, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR'.

5 NOT ALL STORIES ARE A SUCCESS: A lot of activity is happening in retail and though we do have may success stories, not all ventures have been successful. Shoppers' Stop, for example, implemented JD Edwards ERP, but could not reap much benefit due to less than optimal number of operating locations. A few references of other such less successful ventures is given below:

Franchising, as a way to grow has not worked out well for Vitran, the second oldest food supermarket. More than two third of its 19 odds outlets have either folded up or snapped up ties with the parent.

The foray of organized retailing in the small towns of India has met with limited success. The notable example being Shoppers' Stop foray in Jaipur. The retailers are now focusing their energies on the top six cities.

India's oldest food supermarket chain, the Bangalore based Nigliris has been up for sale for a few months now but yet to find takers.

In Delhi, the Escorts group-promoted Nanz, a food supermarket has shut down after being unable to find a white knight. ( Source: Pwc Analysis )

These failures and limited successes have happened both due to a lack of experience and understanding of issues.

6 INVESTMENT WILL INCREASE: Retail sector will see huge investments in the next 4-5 years. Newer chains will come in and the present players will increase their penetration. By 2005, the established players would have reached saturation levels in metropolitans and will shift the focus of their investments to other Class 1 cities. By 2010, there will be little difference between the metros and the next 20 cities (the present million plus cities). However, the investments would largely be private investments, or at best secondary markets. This will happen because expansion will happen through investments by business houses that will not sell their stakes. If any purely retailing company exists, it will be an exception. However, if the ban on foreign players holding a controlling stake is lifted, the sector could see drastic movements. The entry of foreign players will undoubtedly result in

buying and selling and some businesses might withdraw their money in anticipation. The entry of foreign players, if allowed, will not only affect ownership, but also change the basics of business. Huge investments in stores and their supply chains can transform the entire scenario. But the lifting of ban is a policy issue that cannot be predicted, and can only be decided by the government.

7 DEMOGRAPHICAL CHANGES TO AFFECT OR: In the next 10 years, Indian population is expected to grow by about 14 per cent. But this increase will not be even. Important trends that will affect retailers are listed below.

THE NUMBER OF CHILDREN (0-15 YEARS) WILL REMAIN STABLE AT 30 MILLION: This will mean a lesser growth for toys, games and some apparel segments. But

given the current nascent stage of the growth, these sectors will still offer high growth rates. www.zenithresearch.org.in

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ The number of people in 40-60 years of age will go up by 30%: Sales of cosmetics, skin care, hair dyes, and other youth inducing products will rise. More consumer resources would be spent on retirement planning and saving for retirement. Home improvement and financial services firms would benefit from this trend.

THE NUMBER OF HOUSEHOLDS WILL INCREASE BY 25%: This would lead to a higher growth in the household-decor items vis-a-vis personal items as apparel and fashion accessories.

8 REGIONAL DIFFERENCES WILL STAY: Although a few players will be able to form pan-Indian retail supply chains, the retail market is unlikely to be a single entity. For example, food retailing in Chennai, Kolkata and Chandigarh is vastly different in terms f shopping habits and consumer tastes. Many such differences will remain. Though a few national retail chains will develop, they would have to coexist with strong regional players, who would excel in this understanding of the customers and strong brand names. The national players would primarily be is sectors like Apparel, Fashion, Food and Music. Importance of local supplies for grocery sector would ensure the regional chains would reign supreme in these sectors. The key to success for national players will to maintain the efficiencies that come from their large-scale operations while retaining the ability and the flexibility to satisfy different needs of different consumers. However, organized retailing, in some cases, will change and harmonize consumer habits, purchasing patterns and consumer behavior. McDonalds and Barista have already been successful in doing this.

9 Retailers would adapt more than one format. Today, internationally all top-retailers (except Kmart and Aldi) operate 3-4different formats, with companies like Metro AG operating 13 formats. This diversity of formats allows the company to utilize its brand value across different segments and categories of customers. Signs of such a development are visible in India as well. A movement towards Class-I cities necessitates modification of operating format5s to suit different needs. By 2010, top retailers would be operating at least 3-4 formats.

The biggest challenge that the retailers will have to face would be of maintaining different brand images, and though clashing images would be formed, a few retailers would be able to use Brand Extensions to establish different images in different cities.

10 Dual focus on costs and time. With more dual income families consumer ability to spend will increase, but the time available for shopping will go down. Customers will become more demanding in terms of rapid and friendly service. Retailers would develop shopping as an entertaining experience, but the more successful ones will be the ones who provide faster service. On the other hand, increasing competition would push the prices down. Efficiencies in supply chain and economies of scale would allow retailers to reduce their prices without compromising either on the shopping experience or on their own profitability.

11 24 hours retailing. Time stressed consumers will also ask for round the clock retailing. As these consumers will be ready to pay a premium for service at odd hours, the timings of shopping will have to adapt to needs of these consumers. A number of 24 hours retail stores would emerge to cater to this need. The assumption here is that the current administrative

restrictions on running shops at nights will be lifted. It is expected that in the face of www.zenithresearch.org.in increasing demand from both the consumers and the industry fora, regulations regarding

retailing will be eased.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 12 Small retailer will coexist. Within a decade, large organised retailers would be controlling a substantial portion of the retail trade. Yet, it is not to say that small, independent and unorganised retailers will disppear in large numbers. They will survive on their core strengths of personal relations with customers and closeness to residences. The experiences of South East Asian countries has been that even after 10 to 15 years of allowing FDI in retailing, unrganised retailers still control a sizeable chunk of the retailing market. The Indian experience in retailing is expected to be no different. However, to compete with the big retailers on price, small retailers will form cooperatives for purchasing, just as the once in France, spain and Italy have already done. This trend has also started in Delhi, and is only expected to increase.

13 Supply chain dynamics. The balance of power between retailers and manufacturers will shift towards the retailers. The bigger retailers would be able to seek the lowest prices, require their suppliers to assume greater business risks, and colloborate with suppliers to achieve overall cost reduction in their operations.

Scale economics would help in operating optimized supply chains and logistics network with investments in information technology enabling process efficiencies and effectiveness. Increased volumes would enable investments in specialized equipment for transportation of goods. Retailers with large chains would negotiate and get central procurement but local dispatches from their suppliers.

14 Internet. Internet retailing will thrive in the coming decade. It may not be apparent now because internet access is far behind the US and west, and high usage charges represent a serious impediment to frequent consumer usage. The Government has already shown intent to deregulate the telecommunications sector. Deregulation would increase Internet usage in the country and also the trading on the net. However, it is expected that the bricks and mortar stores converting to clicks and mortar model would dominate the Internet sector. ? This is because of their already existing brand names and economies of operations that they would be able to reap.

REGULATION IN RETAIL INDUSTRY

Despite the size and the phenomenal potential that exists, retailing is among the lesser- evolved sectors of the Indian Industry. Retailing as an industry is yet to be recognised in India. The policy environment is currently seen to be unfavourable to organised retailing. Given the huge investments that need to be made, a look on the Foreign Direct Investment Policy in the sector might be needed. Complex sales tax rates, octroi and excise structures are major deterrents. Other impediments to growth of retail include the bureacuracy, inflexible labour laws and multiple licensing requirements. Real estate in India is also not geared to facilitate organised retailing.

1 RESTRICTIONS ON FDI: The Indian economy is highly regulated and the most significant regulation is the restriction of foreign ownership. A strong FDI presence in retail sector is expected to not only boost the retail scenario, but also act as a driving force in attracting FDI in upstream activities as well. This will be more prominent in food processing and packaging industries because many large retail chains also promote their own brands by

way of backward integration/contract manufacturing. The status of orgnised retailing in some www.zenithresearch.org.in

South East Asian countries that allowed FDI in retailing has been given in Table below:

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Country Organised Retailing Traditional Retailing

Malaysia 50% 50%

Thailand 50% 50%

Phillipines 35% 65%

Indonesia 25% 75%

South Korea 15% 85%

China 10% 90%

India 2% 98%

In view of the demands made by industry and the need to boost the retail trade, the Government is actively considering removing the restrictions. A recent note circulated by the Ministry of Commerce has proposed permission for FDI up to 100 per cent in retail trade subject to Government approval on a case-to-case basis. However, this permission, if it is given, will be with lots of strings attached. Besides following rules on minimum capitalization, the foreign entrants will be expected to neutralize the outflow of foreign exchange (repatriation of dividends) by way of export earnings on a year-to-year basis. The biggest opposition to allowing 100% FDI is the feared exit of the small retailers. Currently, moves are on to counter these apprehensions and the players are keenly awaiting the final decision from the Government.

2 LAND AND PROPERTY LAWSI

There is a shortage of good quality retail space and rents are high for what is available. Compounding these shortages are the following problems.

One of the drivers of property prices is the high demand for space in the cities. This demand is exasperated by the flow of black money (undeclared for tax purpose) that is generally invested in the property sector.

Only Indians can own property in India, which complimenting the restrictions placed on FDI, restrict the entry of foreign players.

Stamp duties on property deals are significant (12.5% in Gujarat and 8% in Delhi). The lease alone can cost up to 6-10 per cent of sales while it's just 3-5 per cent globally.

The initial urban planning of cities was done with smaller plots in mind which along www.zenithresearch.org.in

with rigid building and zoning laws make it difficult for procurement of retail space.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ The urban land ceiling act and rent control acts have distorted property markets in cities, leading to exceptionally high property prices.

The presence of strong pro-tenancy laws makes it difficult to evict tenants and make people reluctant to give real estate on rent. The problem is compounded by problems of clear titles to own

3 LABOUR LAWS: The labor laws instituted to protect store workers are not flexible enough to support the modern formats of retailing. These rigidities in the law constrain the operations of modern retail outlets. Working hours are restricted, with shops required to close one day of the week and the hiring of part-time employees is difficult, However, in Bangalore, the State Government has permitted flexibility in the use of labor without doing away with the associated benefits accruing to it.

4 Taxes. Corporation tax is 38% and this would be even higher at 45% for a foreign business.

1. Even essential basic foodstuffs are taxed (8% on milk).

2. The varying sales tax rate across states make supply chain management an even more difficult task for retailers.

With the expected introduction of Value Added Tax (VAT) in April 2003, some of the sales tax anamolies in the supply chain could get correct over a period of time. However, retailers might also be additionally burdened as given below:-

Changing tax structure: Retailer margins to come under VAT net. In the tax regime contemplated from April 1 2003, VAT will be imposed at every stage between the manufacturer and the final consumer. Thus, margin payable to the distributor and the retailer will also be taxed. As retailers and wholesalers would be taxed under VAT, their margins will decline. Companies, in turn, will come under pressure to increase trade and distributors margins to the extent of the tax being paid by them, thus pushing up the cost of the product. The MRP could therefore increase in order to neutralize the impact of VAT on margins. Goods with a long distribution chain between the manufacturer and final consumer, such as FMCG items and consumer durable, would be the worst affected

CONCLUSION

The past 4-5 years have seen increasing activity in retailing. Various business houses have already planned for few investments in the coming 2-3 years. Though the retailers will have to face increasingly demanding customers and intensely competitive rivals, more investments will keep flowing in and the share of organised sector will grow rapidly. Organised retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants.

REFERENCES

1. AT Kearny www.zenithresearch.org.in www.zenithresearch.org.in

2. Forrester Research 2006.

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EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 2, November 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 3. KPMG-FICCI Report.

4. www.indiainbusiness.nic.in

5. www.IntegratedRetail.com

6. www.indiaretailforum.in

7. www.mit.gov.in

8. www.etintelligence.com

9. www.fibre2fashion.comIndia/Infosys launches 'ShoppingTrip360' for retail industry

10. www.researchandmarkets.com/India Shopping Trends 2008: Consumer Durable & Information Technology

11. www.portal.acm.org/portal/Technology in the Indian retail supply chain

12. www.accounting101.wordpress.com/Information Technology in India: The Shift in Paradigm

13. www.networkmagazineindia.com/ Indian Retail: An Overview - Cover Story

14. www.eindiaretail.blogspot.com

15. www.news.bbc.co.uk/BBC NEWS/South Asia/ Indian retail chain closes stores

16. www.expresscomputeronline.com/The India retail story - Express Hospitality

17. www.planetretail.net

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