Business Administration
1)
Discuss how the environment acts does as a
stimulant to business. Analyse why business
often
does little for the preservation of physical environment despite the fact that
it is significant for business activity. (10 Marks)
2) Explain
the relevance of ecological issues to business environment (10 Marks)
3)
What do you understand by Business Social
Responsibility (B S R ). How this can be used
to
improve the Business Environment. (10
Marks)
4)
Explain how the business in an organization
can be regulated with regard to the
Organization’s Basic Objectives. (10
Marks)
5)
Describe in detail the different role played
by the Government towards enriching the
business Environment. (10
Marks)
6)
In the Business Environment context, explain
how the Political and legal Environment of
business plays a vital role. Justify by bringing in suitable examples. (10
Marks)
7)
Evaluate the advantages and disadvantages of
FDI. What is your opinion on the role of
FDI in the Retail Sector? Justify your views with India's experience
in this sector. (20 Marks)
Hindustan Unilever
Strategically.
Uniliever
is one of the worlds oldest multinational companies.Its origin goes back to the
19th century when a group of companies operating
independently, produced soaps & margarine.In 1930, the companies merged to
form Unilever that diversified in to food products in 1940s. Through the next 5
decades, it emerged as a major fast-moving consumer goods multinational
operating in several business.In 2004, the unilever 2010 strategic plan was put
in to action with the mission to bring vitality to life & to meet everyday
needs for nutrition, hygiene & personal care with brands that help people feel
good, look good & get more out of life.The corporate strategy is of
focusing on core businesses of food, home care & personal care Unliver
operates in more than 100 countries, has a turnovers of $ 39.6 billion &
net profit of $3.685 billion in 2006 & derives 41 percent of its income
from the developing & emerging economies around the world.It has 179,000
employees & is a culturally-diverse organization with its top management
coming from 24 nations, internationalization is based on the principle of local
roots with global scale aimed at becoming a multi-local multinational.
The genesis
of Hindustan Unliver in india, goes back to 1888. When unliver exported
sunlight soap to india.Three Indian Subsidiaries came in to existence in the
period 1931-1935 that merged to form Hindustan Lever in 1956. Mergers &
acquisitions of Lipton (1972), Brooke Bond (1984) , Ponds (1986) , TOMCO
(1993), Lakme (1998) & modern Foods (2002) have resulted in an organization
that is a conglomerate of several businesses that have been continually
restructured over the years.
HUL is one of the largest FMCG company in India with total
sales of RS 12,295 crore & net profit of 1855 crore in 2006.There are over
15000 employees, including more than 1300 managers.The present corporate
strategy of HUL is to focus on core businesses.These core businesses are in
home & personal care & food.There are 20 different consumer categories
in these two businesses. For instance, home & personal care is made up of
personal wash, laundry , skin care, hair care, oral care,
Strategic
management at HUL is the responsibility of the board of directors headed by a
chair-man. There are five independent & five whole-time directors. The
operational management is looked after by a management committee comprising the
vice chairman, CEO & managing director & executive directors of the 2
business divisions & functional areas.The divisions have a lot of autonomy
with dedicated assets & resources. A divisional committee having the excutive
director & heads of functions of sales, commercial & manufacturing
looks after the business level decision making .The functional- level
management is the responsibility of the functional head. For instance, a
marketing manager has a tem of brand managers looking after the individual
brands. Besides the decentralized divisional structure, HUL has centralized
some functions such as finance, human resource management, research,
technology, information technology & corporate & legal affairs.
Unliver
globally & HUL nationally , operate in the highly competitive FMCG
markets.The consumer markets for FMCG products are finicky, its difficult to
create customers & much more difficult to retain them. Price is often the
central concern in a consumer purchase decision requiring producers to be on
continual guard against cost increases. Sales & distribution are critical
functions organizationally. HUL operates in such a milieu.It has strong
competitors such as the multinationals proctor & gamble, Nivea or L’Oreal
& formidable local companies such as Amul. Nirma or the Tata FMCG companies
to contend with. Rivals have copied HULS strategies & tactics, especially
in the area of marketing & distribution. Its innovation such as new style
packaging or distribution through women entrepreneurs are much valued but also
copied relentlessely, hurting its competitive advantage.
HUL is identified closely with
India.There is a ring truth to its vision statement, to earn the love &
respect of India to its vision statement, to earn the love & respect of
India by making a real difference to every Indian , it has an impeccable record
in corporate social responsibility. There is an element of nostaligia
associated with brands like lifebuoy & Dalda (1937) for senior citizens in
india. Consequently , Indians have always perceived HUL as an Indian company
rather than a multinational.HUl has attempted to align its strategies in the
past to the special needs of the Indian business environment. Be it marketing
or human resource management, HUL has experienced with new ideas suited to the
local context. For instance HUL is known for a capabilities in rural marketing,
effective distribution systems & human resource development. But this focus
on India seems to be changing. This might indicate a change in the strategic
posture as well as a recogination that Indian markets have matured to the
extent that they can be dealt with by the gobal strategies of Unliver . At the
corporate level, it could also be an attempt to the corporate level, it could
also be an attempt to leverage global scale while retaining local
responsiveness to some extent.
In the line
with the shift in corporate strategy, the locus of strategic decision-making
seems to have moved from the subsidiary to the headquarters. Unliver has
formulated a new global realignment under which it will develop brands &
streamline product offerings across the world & the subsidiaries will sell
products.Other subtle indications of the shift of decision making authority
could
The shift in the strategic decision
–making power from the subsidiary to head quarters could how ever, prove to be
double- edged sword. An example could be of HUL adopting Unlivers gobal
strategy of focusing on a limited number of products, called the 30 power
brands in 2002. That seemed a perfectly sensible strategic decision aimed at
focusing managerial attention to a limited set of high-potential products. But
one consequence of that was the HULs strong position in the niche soap &
detergent markets suffering owing to neglect & the competitors were quick
to take advantage of the opportunity. Then there are the statistics to deal
with HUL has nearly 80 % of sales & 85 % of net profits from the home &
personal care businesses. Globally Unliver derives half its revenues from food
business. HUL does not have a strong position in the food processing industry
remains quite attractive both in terms of local consumption as well as export
markets. HULs own strategy of offering low- price, competitive products may
also suffer at the cost of Unlivers emphasis on premium priced, high end
products sold through modern retail out-lets.
There are
some dark clouds on the horizon. HULs latest financials are not
satisfactory.Net profit is down, sales are sluggish, input costs, have been
rising & new food products introduced in the market have yet to pick up.
All the while, inone market segment after another, a competitor pushes ahead.
In a company of such a big size & over- powering presence , these might still
be minor events or developments in along history that needs to be taken in
stride. But pessimistically, they colud also be pointers to what may come.
Questions.
Q1) Define historical back ground of HUL?
Q2) Define the corporate strategy of HUL?
Q3) Expalin the financial status of HUL in the year
2006?
Q4) What is the core business of HUL ? Explain in
detail ?
Case Study : 2
Dabur India Limited.
Cholera,
malaria and plague have been killer diseases in India. In 1884, Dr. S.K. Burman
embarked on a mission to provide nature-based, effective and affordable
treatment for these killer diseases for ordinary people in far-flung villages
of Bengal. He adopted ayurveda, the
traditional Indian system of medicine. Dr. Burman established a pharmacy that
set up a manufacturing plant in 1896 and research laboratories in 1919,
becoming a full-fledged private company in 1936 that 50 years later, in 1986,
became a public limited company. He came to be known as Daktar (Indian pronunciation of
Dabur is a
leading consumer goods company in India, having three subsidiary companies and
13 manufacturing plants. It operates in nearly 50 countries, making it an
Indian multinational company. Within the company, there are two strategic
business units (SBUS): Consumer Care Division (CCD) and Consumer Health
Division (CHD). CCD deals with consumer products in personal care and health
care. CHD deals with classical ayurvedic
medicines. It markets its products through an extensive wholesale and retail
network of 47 agents, 5000 distributors and 1.5 million retail outlets. The
vision of Dabur is stated as: ‘Dedicated to the health and well being of every
household.’
There is no
specifically-stated mission statement but a statement of strategic intent
having several elements such as:
2)
Developing a platform to become a global ayurvedic leader
3)
Synthesizing knowledge of ayurveda and herbs with modern science to develop natural solutions
for meeting the health and personal care needs
4)
Providing superior returns to shareholders relative to rivals in
industry
5)
Being a responsible corporate citizen committed to environmental
protection
6)
Nurturing core brands across categories within India and outside
7)
Being a professionally managed employer attracting,
developing and retaining quality personnel
8)
Improving operational efficiency by leveraging
technology
There are six core values that Dabur
practices:
ownership,
passion for winning, people development, consumer focus, team work and
innovation. Its corporate positioning statement is ‘celebrate life’ that goes
with its bright green and brown coloured logo depicting a banyan tree.
The brand name ‘Dabur’ is claimed to mean different
things to different people. It operates at three distinct levels: as the
company’s corporate brand identity, the mother brand for a whole range of
products and it also percolates down to individual product names.
Dabur has tried to alter the product
concept of ayurveda medicines as consumer products sold over the counter. For
instance, it has the distinction of changing the product concept of chyavanprash from being a traditional
compound of herbs and plant extracts having anti-oxidant properties, to a
branded consumer product sold over the counter for general health upkeep of the
whole family. Dabur follows a four-year time horizon strategic planning. The
2002-2006 strategic plan envisaged Dabur becoming a Rs. 2000 core-company by
the period 2006-2007. It has been successful in realizing that objective. In
the next four-year strategic plan, its objectives are to continue the growth
momentum at a similar pace. It aspires to be a global FMCG company where more
revenues come from outside India. In the next strategic plan, it aims to raise
the revenue share from International Operations from the present 12 percent to
20 percent.
The
business model of dabur is based on pushing through high growth parameters, in
the range of 10 to 15 % annually in the core domestic FMCG business I the
consumer care division & even higher growth rates of 25 to 30 % annually
from businesses outside consumer care.
The
strategies adopted are a combination of internal growth & external growth
through acquisition that it terms as organic & inorganic growth
respectively.
Generally , Dabur has performed well except in cases
where it had to deal with tough competition in the intensely competitive
consumer goods in india. Analysts say that the company has perhaps been eyeing
too many divergent new product categories over the years.
In the near
future , dabur wiil have to decisde whether it wishes to be pure herbal brand
or a leading FMCG player neither of which it can claim to be with conviction
today.
Question:
Q1) Discuss the history of dabur?
Q2) Expalin the various SBUs of dabur in detail?
Q 3) Define the mission statement of the dabur ?
Q 4) Explain the business model of dabur ?
Case Study 3
Environmental issues in the
food processing Industry of India.
The food processing industry
is one of the sunrise industries in India whose potential has been
well-recognized, but not satisfactorily realized. It could easily be described
as one of India’s higher-potential but under-exploited industry. India’s food
processing sector covers a wide range of raw, intermediate and finished
products. These include cereals, fish and other sea foods, fruits and
vegetables, processed grains, meat and poultry, milk and milk derivatives,
plantation and consumer products such as Confectionery, chocolates and cocoa
products, soya-based products, mineral water, etc.
The Ministry of Food
Processing Industries, set up in 1988, i.e. the nodal agency in India
responsible for developing the food processing industry. For the Government of
India, the food processing industry is a priority sector thus ensuring that
policies support investment and attract more foreign direct investment.
Little reliable statistics
related to the food processing industry in India are available. The size of the
food processing industry in India in 2006 was estimated to be Rs 6300 billion
(US$
140 billion), likely to grow at over
10%, on the basis of an expected GDP growth rate of 6-S% per annum. Annual food
exports by India, are around US$ 6 billion where as the world total is about
US$ 700 billion. This dismal situation exists even while the industry in India
is one of the largest in terms of production. Consumption, exports and growth
prospects. India is the third largest producer of food in the world, having the
largest livestock population and is the largest milk producer in the world.
Yet, the value addition to food processed in India is a meagre 7% and India’s
share in international food trade is insignificant at less than 1%.
A ‘Vision 2015’ study, carried out by Rabo Bank, an
international consultant, envisages an investment of Rs 1,10,000crore over ten
years to enhance farmers’ income, generate employment opportunities, provide
wider choice to consumer at affordable prices and contribute to overall
The major
market players in Indian food processing industry include local companies such
as Agro Tech Foods, Dabur, Gits, Godrej, Haldiram, Milkfood, MTR and Parle and
formidable foreign companies such as Cadbury, Nestle, Pepsico and Unilever.
The business
environment in which the food processing industry exists could be explained in
terms of the opportunities and threats.
Opportunities are supported by
factors like:
4)
High demand potential: average Indian spends 52 per cent of his income
on food.
5)
Low output from organized sector: less than 2 per cent
of the total production of fruits and vegetables is processed.
6)
Exports of agricultural and processed food have been
rising steadily. APEDA figures put exports at 14184 crore (2003-4), 16828 crore
(2004-5) and 17918 crore (2005-6).
7)
Low cost Indian labour can be used to set up large,
cost-effective manufacturing units for domestic and export markets.
-. Diverse agro-climatic conditions in India provide
a wide-ranging and large raw material base suitable for the food processing
industry. Great potential for semi-processed and read-to-eat packaged food
segments.
8)
Surplus food production
9)
Younger population, increasing urbanization, changing lifestyles,
emergence of nuclear
families,
increasing personal incomes, improving standards of living, rising number of
working women, convenience needs of dual income families.
5)
Deep inroads by the spread of television as an
advertising medium and emergence of retailing culture
6)
Projected shift in Indian eating habits to mass-based
basic foods like atta (wheat flour),
chicken, milk, etc.
7)
Increasing preference for Indian foods abroad
8)
Government has been developing agrizones and mega food
parks to promote the food processing industry in India
a The advent of the WTO regime and the possibility of
reduced subsidies in developed countries can add to India’s strengths in food
production arid processing industry
Threats
arise owing to factors like:
9)
Conservative government policies:
reservation
of several items for the small- scale sector and overregulation with
multifarious legislations governing the industry. There are a number of
licensing and regulatory authorities overseeing agro food processing units in
the country. Till 2006, there were 16 separate central laws and 9 ministries
dealing with the food processing industry. Sought to be replaced by a single
act, Food Safety and Standards bill 2006.
6)
Inadequate infrastructure for distribution and preservation: long and
fragmented supply-chain retail structure, inadequate infrastructure, including
cold chain storage refrigerated vehicles for logistics & transportation,
special handling facilities at airports and inadequate post harvest management.
7)
Limited access to appropriate technology for processing and packaging,
low investment
in research and development by industry and high
cost of production.
7)
Losses of Rs. 50,000 crore from the wastage of fruits
and vegetables for want of processing and value addition
8)
High taxation on packaged items
9)
Resistance from civil right groups
besides these threats, there are
some interesting myths related to processed food and the industry in India. For
instance, it is perceived that Indians are largely vegetarian; white the fact
is that 75 percent are non-vegetarians. Or that the food processing industry is
a high-risk industry dominated by the MNCs. The reality is that it is not a
high-risk industry and worldwide, it is dominated by local companies.
Question:
Q1) Explain the features of ministry of food
processing in India ?
Q 2) What is the vision 2015 ? Explain its features
?
Q 3) Explain the features of food processing
industry ?
Q 4) Explain opportunities & threats of food
processing in India?
Case Study 4
State bank Of India on its
capabilities.
State Bank
of India (SBI) is India’s largest
bank, faster transfer of funds are in place to protect its with an extensive
network of more than 9000 dominant position in the government business.
branches and 6000 ATMs.Its Organizational capability profile offers an
interesting study in to the strengths & weakness, competencies &
capabilities of India’s prime public sector bank.
Financial capability
factors: SBI enjoys a comfortable capital position as it is adequately
capitalized, designed to deal with asset side risks and support the business
growth. Its funding profile is strong, underpinned by its strong retail deposit
base. SBI’s strong franchise gives it access to a steady source of stable
retail funds.Its cost of deposits is Optimum.
The bank maintains a healthy
liquidity position owing to a continual accretion to deposits, large limits in
the call market & significant surplus statutory liquidity ratio-related
investments. SBI is estimated to have a good earnings profile with diverse
income streams.The banks core fee income bolsters its revenue profile though
there is likelihood of a slow down owing to the opening of government business
like tax collection to other banks & increased competition.
The banks
cost structure is rigid as the fixed employee cost accounted for 74 % of the
operating expenditure in 2004-05. The banks operating costs will remain high in
the medium term.
Marketing
capability factors: SBI has been losing market share over decades.There is a
consistant gap between deposit & credit growth. As a leading public sector
bank, it is obliged to shoulder social responsibilities such as investing in
priority sectors. SBI has been trying to unlock its brand equity though
unsuccessfully.It has a strong retail base & wide geographical reach. The
bank fund based & fee income earnings are diversified across industries,
regions, asset classes & customer segments.
Marketing initiatives such as on – line tax returns
filling & faster transfer of funds are in place to protect its dominant
position in the government business.The bank has entered the market of term
lending to the corporate sector & infrastructure financing, traditionally
the domain of financial institutions. It has increased its thrust in retail
assets & has built a strong market position in housing loans.
Operations capability factors: SBI, through its
non-banking subsidiaries, offers a host of financial services, Viz, Merchant
banking, fund management, factoring, primary dealership, broking, investment
banking & credit cards. SBI has commenced its life insurance business by
setting up a subsidiary, SBI life insurance business by setting up a
subsidiary, SBI life Insurance company Ltd. SBI along with its associate banks,
offers a wide range of banking products & services across its different
client markets.
The asset quality of the bank, a
vital performance indicator, in the banking industry is of average level. It
has a high level of gross non-performance assets, a bane of the banking
industry any where
The bank also has a clear
technology strategy that will enable it to compete with the new generation
private sector banks in customer service & operational efficiency. The
increasing focus on upgrading the technology back-bone of the bank will enable
it to leverage its reach better, improve service levels, provide new delivery
platforms & improve operating efficiency to counter the threat of
competition effectively.
Personal capability factors: Being the largest bank in
the country has its downsides. It faces the dual problems of overstaffing &
understaffing in certain other critical areas. There is a need to reduce and
redeploy the workforce but this is a sensitive industrial relations issue in a
country where bank unions are strong.
Information
management capability factors The SBI commissioned Tata
Consultancy Services, the global
software solutions and consulting services company, to supply, customize and
implement the centralized core banking system. The project is claimed to be one
of the largest projects of its kind in the world in terms of the number of
branches. Customers and transaction volume when completed. The information
management capabilities, which SRI Group will seek to develop using the core
banking solution, include personalized customer service, 24X7 banking through
diverse types of delivery channels, fast product launch and customer
relationship management.
General
management capability factors: The general management of the bank
is quite competent. It has leveraged
its corporate relationships pursued business growth selectively and ties
judiciously not competed on the basis of interest rate.
The performance
indicators used by the SRI are: capital adequacy ratio, business per employee,
profit per employee, return on assets, net NPA ratio and deposits and advances.
The banking industry in India is currently under an intense phase of change.
The public sector
banks are
trying to consolidate on the basis of their large network and customer base.
The private sector banks are adopting mergers and acquisitions to increase
their size. The trend is towards consolidation around well-identified core
competencies.
Questions:
Q1) Define financial capabilities fators of SBI ?
Q2 ) Explain Marekting of capabilities factors of
SBI ?
Q3) Explain operations of capabilities factors of
SBI ?
Q4) Define performance indicators of SBI ?
Business
Administration
Q1. Discuss procedures
Q2. Write a note on staffing
Q3. Give stages of current state
of management theory
Q4. Give advantages of card index
system
Q5. What is the meaning and aims
of filin
Q6. Discuss – The unit of
planning
Q7. Explain integration of plans
Q8. Discuss written and unwritten policies
Business
Administration
Q1. Give essentials of good
filing system
Q2. What are the shortcomings of
appointing an employee
Q3. . Explain integration of
plans
Q4. Explain the rise of
management as a profession
Q5. Write a note on controlling
Q6. What is flexibility of
policies
Q7. How do you select an employee
or a partner for expansion activities
Q8. Explain who can be a partner also explain
partnership deed
No comments:
Post a Comment