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Acharya's Bangalore B-school 1

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E-magazine 2011-2012Acharya Business Club.VOLUME-1

A.I.K.C.A(ABBS Integrated Knowledge creation & Accumulation)2011

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Contents

First job ? Keep +ve image.

Motivation.

Create any change without

any change.

Foreign investment.

Retail industry in India.

India in 2020.

Gold or Silver ?

FEATURES

THE IMPACT OF MONETARY

POLICY

Prof. Nila.Chotai

MICRO ATMsFINANCIAL

EXCLUSION TO INCLUSION.

Prof. M.Muthu Gopalakrishnan

GREEN CONSUMERISM

Prof. Priya vinod

ABBS COLLEGE e-MAGAZINE

Acharya's Bangalore B-schoo

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This academic year we have just le

ehind has been another year of commendable achievements for thollege. I congratulate everyone who has contributed in different way

o make the first e-magazine from ABBS named - A.I.K.C.A possible

We go on, and enter another years in our lives, as individuals, as a

stitution.

Let us try to have the best plans an

reams for the year, both for those who are leaving the college thear, and those who continue here. let us make good use of a

pportunities we have, constantly reviewing everything we do, an

eciding to do better.

My best wishes

Poornima Reddy

irectorAdministration.

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Dear netizans,

t is nice to know that India is emerging big in IT,

elecommunication and other service sectors. There are more

han 800 million mobile telephone users in India! Worlds second

argest density of mobile phones! There are more than 100

million Internet users in India. India is emerging. We are lucky to

e in India at this point of time, when great things areappening. Let us all join hands and make it better. We shall keep

he Indian flag flying high among the comity of nations.

ABBS is leader in management education segment. Leaders in

ducation sector, as in any other segment, have to have great

ision. It is easy for followers. They have to just follow theeaders. We being leaders have created innovative methods o

earning and dissemination every semester. Let be our in house

ournal- AMBER (a peer reviewed and focused journal), ou

eaching methods (including OBT, live projects) or our incubation

f companies in the campus, we have proved to the world that

we are class apart. Our strength is our students. Hats off to themhey have added another feather on our cap. This time through

-magazine- AIKCA. I wish that, this magazine would open up

ew avenue for knowledge creation, dissemination, discussion

nd debate. All the best to the first edition of AIKCA.

Dr.H.R.Venkatesha

Director

DIRECTORS MESSAGE

Acharya's Bangalore B-school5

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EDITORS MESSAGE


TECHNOLOGY is the order o

he day . ABBS is second to none in taking advantage of the same i

CADEMICS as well as other activities. It gives me lot of pleasure t

ssociate with the youngsters part of the ABBS Business Club t

ome out with a E- magazine. In todays world, it is not on

mportant to indulge in new activities but also share the knowledg

ith others in similar fields. This forum of E-magazine undoubted

ill help in showcasing the talents of our young students. We should

ver a period of time , keep a track on the number of viewers whicked and read our E- magazine .

We should encourage all the students to contribute some article

ther than a few people writing again and again. We should als

ncourage students and faculty members to write on topics and area

hich are relatively unheard of . We should also benchmark wit

ome of the best E-magazines. Quality with the use of Technologan certainly take this E-magazine to greater heights in the future.

wish all the youngsters and this E-magazine a grand success.

rof L.R.S. Mani.

ditor

EDITORS MESSAGE

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Education isn't just about learning within

the four walls of a room. Learning is by doing it and experiencing

it- that's certainly more enriching.

We, at ABBS, are proud to have ABBS Business Club for our

students. ABC is an integral part of department of ManagementStudies at ABBS. It exists to provide students with an

opportunity to continue their education outside the classrooms.

Choosing to be involved is a great way to enhance social,

interpersonal, problem solving and many other important life

skills. ABC gives a platform for leadership development

opportunities, developing artistic expression and creativity of

the young minds, community building efforts, promotes

coordination and cooperation among students.

"Work Hard, Play Hard" experience an enriching, vibrant and

active campus life through the activities organised by the club.

Prof. Puneeta Goel

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EDITORS NOTE

STAFF EDITORS

Prof L.R.S Mani.

Prof Puneeta Goel.

STUDENT EDITORJerry John

CO- EDITORS

Apoorva Asthana

Vineeth.R

COMMITTEE MEMBERS

Ginu.M.koshy

Sachin.N

Rinnoy Raghav

Narayanan.V.S

Rahul vijayan

Jithin Raj

Arun Mohan

Alex Puthur

LAYOUT

Faisal A V

Ashok Antony Prakash

Jishnu Sai.M

Siraj R


8

An E-Magazine alias electronic magazine i

by and large understood as a customary

publication on some particular topidisseminated in digital form, chiefly via the

World-Wide Web, by electronic mail o

floppy/CD/DVD disks. It is generally an

electronic counterpart to a print subscription

or the lone publishing method. It is a nove

venture in the realms of erudition and

technology. Acharyas Bangalore B-School iproducing an e-magazine

AIKCA 2011. (Acharya's Integrated

Knowledge creation & Accumulation)

It is my utmost pleasure to be the editor o

the e-magazine. I was crammed with anxiety

and stress, but I knew the novelty of thecreation and enjoyed throttling it to the full

When I look backI feel that being the edito

of the e-magazine was the most noteworthy

thing I did in Acharya, if not in my life. I am

overwhelmed with gratitude for all who

trusted the job on me; and gave me an

opportunity of a lifetime. I cannot forget thesupport I received from the management

our Director, Dr.H.R. Venketesha, teachers

friends and above all the Omnipotent.

Dear allI give you AIKCA.

Thank you.....

ABOUT A.I.K.C.A - 2011

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Over the past decade

Acharyas Bangalore B-

school (ABBS) has been

educating young minds in

management, health

science, biotechnology and

commerce. ABBS has been

ranked as 5th best emerging

B- school of India by

Business Barons in their

October 2009 issue. [Dainik

Bhaskar group] a leading

publishing house, has

ranked ABBS as the 21th

best B- school in India

(Carrier 360) & 3rd top B-

School, in Bangalore.

Business India, in their best

B-school survey in October 2011

ranked ABBS as A+ category

B-school. MBA program offered

by ABBS is affiliated to Bangalore

University and recognized by

AICTE, New Delhi. The group also

offers autonomous PGDM

programs approved by AICTE.

Acharya is one of the few finest

B- Schools in India that has taken

an initiative in creating newknowledge and disseminating it

through conferences, seminars

and workshops.

Sreelath

HR manage

charya's Bangalore B-school

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You have the power

to make me feel unique and

intelligent

when I feel I can no longer

live up to my expectations

You have the powerto give me courage and hope

when I am disillusioned, and

no longer

have the strength to believe in

my convictions.

YOU My colleagues- My Friends

Have given directions to my

thoughts

Have restored my faith in

mankind

Have given me reason and

hope

To endure, to feel and above

all to live


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MICRO ATMs FINANCIAL

EXCLUSION TO

INCLUSION

Prof.M.Muthu Gopalakrishnan

Tremendous progress hasalready been made by banks

towards financial inclusion.

However, it is estimated that a

large number of urban and

rural poor still lack access to a

basic bank account which is an

important first step towards

financial inclusion. It has now

become a national priority to

rapidly accelerate progress

toward financial inclusion and

ensure safe, secure, sound,

efficient access to basicfinancial services for all

residents. Kofi Annan, Former

UN Secretary-General stated

that most poor people in the

world still lack access to

sustainable financial services;the great challenge before us

is to address the constraints

that exclude people from ful

participation in the financia

sector. Together, we can and

must build inclusive financia

sectors that help people

improve their lives

According to the World Bank

today, more than 50 percen

of humanity is financially

excluded and over one billion

people live below the poverty

line of US$1.25 a day (2007)Inclusive growth or overal

growth or social inclusion is

the attracting economic

problem now. Thus the

Developing Nations aim at -

Financial Inclusion

Social Inclusion

Inclusive Growth

Sustainable growth

This paper aims a

discussing the financiainclusion through the

micro ATMs which is the

fundamental to achieve al

other objectives stated

above.

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inancial inclusion

The delivery of financial services

at affordable costs to sections

of disadvantaged and low

income segments of society.As banking services are in the

nature of public good, it is

essential that availability of

banking and payment services

to the entire population

without discrimination.Financial Inclusion is about

creating financial systems that

support all people, so they can

create their own wealth and

better manage their funds. To

succeed, it is the key that

financial services are delivered

via a secure, convenient,

reliable and affordable

channel which provides:

o Easy access to products such

as no-frills accounts, micro-

insurance, governmentbenefits

o A timely way to make

repayments for micro-loans or

micro-credit

o The ability to make small

savings

Though financial inclusion is the

prime objective of public

policy, the term "financial

inclusion" has gained

importance since the early2000s, and is a result of

findings about financial

exclusion and its direct

correlation to poverty.

March towards FinancialInclusion

Nationalization of

Commercial Banks (1969

& 1980)

Establishment of RRBs

(1975) Branch Expansion

Micro Finance

Micro Insurance

Self Help Groups

The statistics stated above in

this paper shows the

actual picture of the

financial inclusion in India

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o the above efforts have not given

the desired result and there are

so many people stay outside the

financial system which results in

financial exclusion and needs

attention to devise some method

for reaching the financialinclusion.

Back ground for Micro ATMs

As stated in introduction, it has now

become a national priority to

rapidly accelerate progresstoward financial inclusion and

ensure safe, secure, sound,

efficient access to basic financial

services for all residents. Towards

this end, a UID-enabled

micropayments system is being

conceived, which will be basedon networks of agents managed

by banks. These agents will

perform financial transactions

using micro ATMs. A variety of

financial services can be offered

once a UID-enabled

micropayments platform is

available throughout the country.

Several last mile collection

problems can be solved with the

micropayment device; for

example, interest payments for

micro-finance loans, premiums

for micro-insurance policies,

contributions to micro pensions

accounts, investments in micro-

mutual funds. Likewise, payouts

can be made through the same

infrastructure as well. A

committee consisting of IBA,

(Indian Banks Association),UIDAI, (Unique Identification

Authority of India), NPCI,

(National Payments Corporation

of India), IDRBT, (Institute for

Development and Research in

Banking Technology), RBI

(Reserve Bank of India) and

various banks was created to

define the specifications and use

cases of this device. The micro

ATM device was originally

described at a high level in a

vision document by UIDAI titled

From Exclusion to Inclusion with

Micropayments. It is meant to

be a device that is used by a

million Business Correspondents

to deliver basic banking services

at the last mile.


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First Job? Keep a Positive Image

Jerry John

MBA, PGDM

(3rd semester)

For studies based on academic aptitud

tudents may opt for engineering, medicine, finance o

dministration. Those who do not have the capability and aptitud

will discontinue studies at the graduate level or below and may g

nto family business or small jobs or be self-employed. Student

aving a good academic performance, aptitude and capability ma

lan their careers in line with corporate sectors and accordingly finis

tudies with post-graduation. If one wants to go purely in to academ

hen he may go for a doctorate degree also. A few may pursu

ourses like animation, short term computer courses and courses lik

Nursing, Education etc.

After you finish your studies, and school and college is way behin

ou, you realize that there is far more to life and success than jusrades. So you will find that those who were the top graders i

ollege sometimes do poorly in the work world and those wh

erhaps scraped through are the ones who shine.

n the real world of work the great emphasis at the entry point an

he lower rungs is on technical skills. As one goes higher up th

adder, one needs to go beyond technical skills which are given. Yoeed to have a large dose of human skills in addition. And then ther

re those very few perhaps 15 percent of the population in th

ompany, who would have developed conceptual skills. This is th

bility to look at the whole picture to have a helicopter view. To se

ow one decision will affect not just him or his department but th

whole company and then perhaps the whole industry. These are theople who make it to the top.Acharya's Bangalore B-schoo

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hey finally become president and CEOs of companies. Of cours

here may be some exceptions. There are those who get there b

uile, deceit, fraud or influence or by climbing on the backs of other

with spiked shoes. But these are still the exceptions.

herefore, young people must know even before they venture into th

work world that there are six basic principles of business etiquett

which have been enunciated by management experts as th

oundation for good human relations in corporations and in societ

hese six key etiquette rules will improve your business etiquett

uotient and help you to get ahead in whatever job you do or aspir

o. These rules benefit people at all levels from administrativ

ssistant to manager to vice president to CEO. And in all sizes o

ompanies, whether it is a corporation of 50,000 employees to

usiness of your own which you run from your house. And these rule

pply beyond the corporate world also, to professionals like doctor

awyers and self employed entrepreneurs. And what are the s

rinciples?

e on time be punctual by sensibly scheduling appointments. Its thttle things that add up. Show respect for other peoples time an

heir own pre-occupations.

e discreet So that you are sensitive to the impact that informatio

might have on those working with it, as well as what the competito

might do if they find out.

e courteous, pleasant and positive and this is irrespective of thressures on you or your company. Spread joy and cheer to lighten u

he environment.

e concerned about others, not just your self peoples caree

nded, stalled or reversed because they lacked that concern fo

thers.

charya's Bangalore B-school

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THE IMPACT OF MONETARY POLICY.

Prof. Nila.Chotai

Economic activity generally follows a cycle increase

ctivity in terms of output and employment, followed by decreased activit

ountercyclical policies act to promote or support growth and employmen

hen the activity is at low ebb and vice versa. The objective is to achievalanced and sustained economic activity over time, preventing advers

atures like high inflation, and fiscal and current account deficits. Therefor

olicies also follow a cycle, a tightening phase followed by an easing phase.

dia, the current operating procedures of monetary policy using the thre

ajor instruments of policy, namely, repo rate, reverse repo rate and the cas

serve ratio, were initiated since early 2001.

will be interesting to see how the policy cycles have behaved since then.e consider increases in one or more rates of the above three majo

struments as a tightening phase and decreases in rates as an easing phas

nce April 2001, the periods fall into four phases, two phases each of easin

nd tightening.

ASING AND TIGHTENING PHASES

he first period Phase I runs from April 2001 to August 2004, an easing

hase; Phase II from September 2004 to September 2008, a tightening phase;

hase III from October 2008 to January 2010, an easing phase; and the Phase

from February 2010 till date which is a tightening phase. As monetary policy

ms at maintaining price stability and supporting growth, an easing phase

presents larger emphasis on growth and a tightening phase represents

eater focus on containing inflation.

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he intensity of easing or tightening can be gauged by the extent of th

crease in rates in a given cycle, as also from the duration of the cycle (se

raph). In phase I, CRR was reduced from 8 per cent to 4.5 per cent, the rep

te from 8.75 per cent to 6.0 per cent, and the reverse repo rate from 6.75 pe

ent to 4.50 per cent. For the sake of brevity, if we combine the rate change

to a single figure, it is revealed that the combined decrease in rates was 85asis points in Phase I.

n a similar basis, Phase II witnessed a combined increase of 900 basis point

atching the first phase. Phase III coinciding with the crisis resolution phas

w a combined decrease of as much as 1100 basis points, all rates touchin

eir historical lows. In phase IV, since February 2010, a continuing tightenin

hase, the combined increase has so far been 450 basis points.

What about the duration of the cycles? Phase I lasted for 41 months, II for 4onths. The easing phase III lasted only for 17 months, but that is because th

covery from the impact of the global crisis was faster, and inflationar

essures surfaced quickly. Based on the earlier evidence, it seems that th

urrent phase of tightening may last for at least another year. But it may go o

r longer, depending upon the vulnerability of Indian economy to domest

nd global destabilizing factors. The current phase has the added risks of hig

flation, widening current account deficit and fiscal deficit. Any extraordinariccommodative monetary policy, supportive of the growth momentum ma

nd up in very high inflation with unsustainable external sector balances.

UTPUT, INFLATION RESPONSES

surprising result is that no particular relationship could be establishe

etween the policy rates, money supply and inflation based on consumer pric

dex (CPI). The average monthly year-on-year CPI inflation seemed to hav

ccelerated in a secular fashion from 3.9 per cent in phase I to 5.9 per cent ihase II and to 11 per cent and 12 per cent in subsequent phases (see Table

kewise, M3 growth showed no particular relationship.

he output response was also the response of inflation based on wholesa

rice index (WPI), seemed to have performed as expected to easing an

ghtening cycles, but with a lag.

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he easing first phase caused the quarterly average year-on-year growth rat

pick up significantly from 4.9 per cent to 9.0 per cent in the second phase

e tightening during the second phase had caused the average rate of growt

decline to 7.6 per cent in the third phase; and the easing in third phase ha

ontributed to the higher growth rate in phase IV at about 9.0 per cent tate. Similarly, the easing phase I pushed the WPI inflation rate to 5.8 per cen

phase II from 4.4 per cent, but the tightening phase in phase II was followe

y low WPI inflation of 3.8 per cent. The easing phase of III has now bee

llowed by an average WPI inflation of 9.7 per cent, thus far in the st

nning in phase IV.

OLICY IMPLICATION

hough these inferences are very crude and subject to more rigorous tests, on

n broadly conclude that while monetary easing and tightening seem to hav

mpacted growth and WPI inflation with a lag, any containment of CP

flation, which is more amenable to supply and external shocks, wou

quire enduring supply responses of wage goods and improvements i

stribution.

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CREATE A CHANGE WITHOUT ANY CHANGE

Roshni choubey

MBA (1st semester)

me is something, which always goes on changing but within certain

mits. This poem reveals human behavior correspondent to time and

mes natural phenomenon.

ere, Time is addressing to people and saying that

am kinetic

etaining my potential,am magnetic

ersisting to functional

warded!

stonished!

o what.?

will run with same velocity,hatever the reaction may be.

erceptions have dividends,

-one, certainly wet accidents.

am not destined to rush,

either i made to be hush,

o competition with anyone,ne-dimensional and canon.

am frequent with same interval,

as never gone any formulation, any renewal.

till

ariation has its own pare with range.

ust.

reate a change without any change.

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GREEN CONSUMERISM

Prof. Priya Vinod

The consumer movement is an important potential influence o

he marketing of almost any product. It is now widely accepted tha

ocieties, economies and the businesses within them need to find

ore sustainable path for future development. Achieving this wi

volve saying some very new things about marketing and perhapediscovering some of the fundamental truths. Marketing ha

ontributed to the recently happened environmental crisis, because o

s central role as a driving force behind the unsustainable growth i

onsumption or what could be termed over consumption. Marketin

s it will become, by contrast, will become part of the solution. Th

ill require the marketing of new, more sustainable produceroducts, companies, new life styles, new values and new idea

reen consumerism means a great deal more than simply changin

ver from earth-bashing product to a slightly more environmental

ensitive one. It means questioning both, the nature and volume o

onsumption. Green Consumerism creates a balance between th

xpectations of consumer behavior and businesses profit motivesithin the orbit of environmental protection. The concept of gree

onsumers also focus on businesses, and their survivability as the

espond quickly to demands of consumers for products and service

hat are also environmental friendly. This article deals with the gree

roducts, responding to the green consumer, the future of gree

onsumerism and its implications.

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REEN CONSUMERISM/SOCIALLY CONSCIOUS CONSUMERISM

reen Consumerism can be described as the use of individua

onsumer power to promote less environmentally damagin

onsumption, while satisfying customer needs. It means makin

onsumption decisions based on environmental concerns. Its with

reat deal between the nature and volume of consumption.

McDonough(1994) examines what green means within the contex

f advertising, and concludes that for different people green wi

elate to one or more of the components .

he term Green Marketing does not have a universally consisten

eaning .But in certain countries like UK it has become very populaso.

HARACTERISTICS OF A GREEN PRODUCT

green product should not

Endanger the health of people or animals

Involve the unnecessary use of cruelty of animalsDamage the environment at any stage of its life, includin

anufacture, use, and disposal.

Consume a disproportionate amount of energy and other resource

uring manufacture, use, or disposal.

Cause unnecessary waste, either as a result of excessive packagin

r a short useful life.Use materials derived from threatened species or environments.

YPES OF CONSUMERS IN GREEN

Grey Consumer

Economical Consumer

Doubtful and Confused

Green Consumer

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OMPETITIVE ADVANTAGE OF CONSUMERS IN GREEN

firm offering green products can derive competitive advantag

ther from having a cost advantage or from having a value advantag

r even a combination of two. Cost advantage means that firms ca

roduce and distribute a lower cost than their competitors. Valu

dvantage means that the firm is able to offer a product, whicherceived to provide differentiated benefits to customers it ha

reater added value.

ESPONSE OF A COMPANY TO GREEN

hese days companies are incorporating an environmental ethic int

heir operation. The main reason behind this change is the growin

ublic awareness of the environmental degradation that has resulte

s a consequence of the growth in population and natural resourc

onsumption throughout the world. The response of a company t

reen consumers within its market will depend on a number o

ctors. The main four E-factors are

Easy- makes it easy for customers to be green

Empower customers provide them with solutionsEnlist the support of the customers

Establish credibility with all the stakeholders of the business t

uard against any form of backlash.

UTURE RELATED ISSUES IN GREEN

Globalization : Transboundary effect and free trade have bot

advantages(efficiency,profits,opportunities,demand)and

disadvantages ( unemployment , footloose companies ,weake

controls , unfair trade , small scale loses out ) etc.

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ealth: A sentry life style combined with healthy impacts o

nvironmental pollution and emissions, use and abuse of pesticide

nti- biotic etc.

Population and Consumption: Population increase, agin

opulations, consumption patterns living beyond means etc.

Energy: Every source of energy has an environmental impac

nergy efficiency is not just technology, but also cutting back

Water: Water use is increasing at twice the rate of populatio

crease. Much can be done at the individual level.

Chemicals: Use of pesticides and hazardous chemicals. Ozon

epleting chemicals, hormone disrupting chemicals have long term

ffects on human health and well being

Genetic engineering: Includes many ethical and moral issuecluding misinformation. Not that genetic engineering is bad- but th

onsumer should given the choice

Natural World: Considerable pressures put on the natural world du

o population increases and rise in consumption. Human consume

0% of all plant growth.

Ethics: The treatment of other people issues of gender, childrennimal welfare, ethics of cloning, fertility etc.

0. Fair trade: Need to look into working conditions (Child; labour, low

ages. long hours, lack of safety, mass production v/s craft industries

ONCLUSION

he consumer movement is an important potential influence on th

arketing of almost any product. Consumerism stresses the need tet ever more consumption out of a given amount of money, whil

he green movement stresses the need to reduce consumption. Eve

he basic principles of consumerism have been amended t

ccommodate environmental issues. Green consumerism an

nvironmental marketing is likely to evolve in three phases namely

ubstitution, systematization, and social change, during which it wi

prout, grow and finally blossom.

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FORGIEN INVESTMENTAshok Antony Prakash.

MBA (1st semester)

Union Cabinet approves

1% FDI in multi-brand retail

It has been almost Five

onths since a committee of

ecretaries chaired by Cabinet

ecretary Ajit Kumar Seth Cleared

Proposal to allow 51% FDI in

ulti-brand retail in the last weekf July. The government already

ermits 51% FDI in single-brand

etail and 100% FDI in the whole

ale cash and carry segment. Until

he first week of August, sources

the commerce ministry wereonfident that the commerce

inistry were confident that the

government would implement th

new policy by the month end.

Then the government was hit by

the storm called Anna Hazare.

Commerce and industry Minister

Anand Sharma was circumspect

When speaking on the issue in the

Rajya Sabha during the monsoon

session. Policy formulation is a

calibrated exercise, he said and

assured Parliament that an early

and appropriate decision would be

taken. The Department ofIndustrial and Planning, a

constituent unit of the Ministry of

Commerce and Industry

responsible for framing FDI policy,

had commissioned think-tank

Indian Council for Research onInternational Economic Relation to

do an extensive study on the

impact of organized retail. The

Report was submitted to the

department three years ago in

2008. The study was clear thatorganized retail would be of

greater benefit to both consumers

and farmers. The Latter would get

a better price for their produce.

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Consumers would benefit from

ower prices as the

cascading commissions of

ntermediates would be

liminated. The report was frank

n acknowledging

that there would be an adverse

mpact on Kirana

stores that were in the vicinity of

he new big retailers. However the

tudy did not see any adverse

mpact on overall employment in

he economy.

After that a lengthy list of

onditionality's was put

orward at the Committee of

ecretaries. The foreign

nvestors would be required to

nvest at least $ 100million. 50% of that investment

would have to be

committed to building back-end-

upply chain.FDI in

retail would only be permitted in

ities with apopulation of over 1 million

people. At least 30% of

goods would have to be sourced

rom local producers.

At least 30% of sales would have

o be small tradersat the whole sale level. The

onditions on sourcing

from local suppliers could also fa

foul of Indias

WTO commitments. The

condition on backend

investment is restricted to those

retail chains that

will sell agricultural produce

What about those that

sell electronics? The $ 100 million

minimum

investment will also require a

domestic Partner to

invest just under that amount in a

51-49 joint ventures. That would

work out to a significant sum of R

400 crore. Existing Big Indian reta

firms, many of which continue to

struggle to make profits, may look

at this opportunity to tie up withforeign Partners.

Now since the cabinet has

approved 51% FDI in

multi-brand retail and raised

single-brand retail from

51% up to 100%;The Foreign retagiants like Teso,

Wal-Mart and Carrefour would

like to get the taste of the $450-

billion retail Indian Market.

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Positive Work Behavior - The Need at the Time of Threa

DILIP ISRANI

MBA (1st semester)

Economic recession, global slowdown, abrupt and painful caree

erminations, salary cuts... This stark, dismal scenario

nfortunately, not a figment of imagination or a phantom of fear.

as something very real and tangible, feared and faced by many

rofessional in the recent past. The euphoria of having landed in goo

bs with five digit salaries and innumerable perks and a feeling of

ave it all", once, not so long ago, belonged to many professionalonservative economists and HR people did warn of the danger of th

urst of the 'bubble of joy' in the field of international jo

pportunities, but this warning went in vain. Tragedy struck, and how

uphoric people now are full of 'termination' and 'redundancy' woes.

he painstaking process of grooming oneself to become successful i

terviews did yield fruit in the form of good jobs all over the globallage. But then, having had to face the deadly blows of 'termination

r 'redundancy', the painful process of regaining a job and sustainin

ne's self in the profession by retaining the job has become a grea

hallenge. This 'job sustenance' is of great significance, for this is no

he pain of not having a job where, in such cases the 'hope' an

robability of 'finding a good job' has a spark to it , ready to becomames of success - but the challenge of holding on to what is alread

possession one's 'success' and 'achievement'. There is also th

oming threat of losing face, losing confidence, losing a marriage

sing friends; losing a house the list can go on. We cannot forge

asily, the tragedies of such distressed youngsters resorting t

esperate face-saving measures. Questions like, "Will I be dumped?

Will I be next?" "Will my salary be cut?""Won't they spare me?"28

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When the persons who joined along with me have been retained

hy have I been dumped?" "Why me?" "What is it that the other

ave done that I have not done?" plagued the minds of many, in th

ecent past.

ow, the atmosphere is sanguine; fresh starts are in the offing; the jo

cenario looks promising. The questions that should now be in th

inds of job seekers both fresh and experienced are slight

fferent from those that they sought answers for, a couple of year

efore: "How can I retain my present job?" "What can I do, to clim

urther up the ladder?" "How do I become indispensable?" "How can

ecome a successful professional?

Well. The scene may appear tough and challenging, strong anhwarting. But salvation is not as futile or as unattainable as

ppears. The way out of this quagmire is, maybe, to do a bit o

trospection, analyze one's achievements and failures, find out one

rengths and weaknesses, learn about the lurking or eviden

hallenges that will accost one in the scenario and equip onese

ccordingly, to face these challenges and surface successfully. In thMarket, Jobs are there, but what makes others feel uncomfortable

hat they are becoming conscious while seeing the rejection of th

mployees by the employers for their bad performance at the job, bu

hey should make themselves in such a positive attitude towards jo

nd keep learning continuously so as to become successful and serv

he organization. Such introspection will definitely reveal that at thoot of success, lies 'Positive Work Behavior'. 'Positive work behavio

not an isolated term. It is an umbrella, which has under it,

ethora of behavioral requisites, each one of which is a majo

ontributor to success stories in any field of work. Once the spirit o

his positive work behavior is savored and abided by, sustenance i

ny given field can well be assured. The essence or the ABC's of


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ositive Work Behavior are listed below:

Act: Don't just be a talker. Be a performer.

Be bold: Try what others simply won't do. This sets you apart from

hem.

Choose confidence and calmness as your constant companions.

Dare to do things differently and become a winner.

Employ skills that will prompt you to take up and meet challenging

asks.

eel that every moment is to be fruitfully spent.

Guide your juniors along the right path. You'll become much sought

fter at work.

Handle situations with empathy and concern.

ntertwine integrity, impeccability and involvement. They are your

reatest virtues

udge judiciously, whether to be or not to be.

Kill ego and 'I'm holier than thou' attitude. This will endear you to all

earn to manage time and stress, for these two can otherwise kill.

Never say 'No' to responsibility and never take 'No' for an answer.

Orient yourself towards your project, your organization and your

oal.

Prioritize your work. Have a work plan and complete work as per the

chedule'

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Reason out difference of opinion and be ready to adjust.

Say 'No' to office politics and low quality work.

Think, Live and Work TEAM. Team work and time bound operations

re assets.

Use time fruitfully and effectivelyValue people be humane and show people that you really care.

Win people over with your ideas and readiness to help.

Xenophobia is a big 'No'. Embrace new and foreign things with an

pen mind!

Yoke together intent, action and good sense.

Zeal, enthusiasm and passion for your work will make you an assetmong your peers.

When such behavioral attributes form part of one's Positive Wor

ehavior, he or she becomes an asset to any organization. Any numbe

f such attributes that can make one indispensable in the work plac

an be added to mean Positive Work Behavior. Adhering to th

ctates of Positive Work Behavior will make sure that N

rganization can think of carrying on without YOU!


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WORK SHOP BY FELTON

LEAN

UDAAN DIGNITARIES AT CLUB INDUCTION

ROY HEFFERNAM GIVING BADGES TO

CLUB EXECUTIVES

PETER INGRAM

INAUGRATING THE ABC

CLUB


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Retail industry in Indiawhere are we heading???

Kumari Nisha

MBA (1st semester)

The Indian Retail Industry is the largest among all the industrie

ccounting for over 10 per cent of the country GDP and around 8 pe

ent of the employment. The Retail Industry in India has come fort

s one of the most dynamic and fast paced industries with severa

layers entering the market. The total concept and idea of shoppinas undergone an attention drawing change in terms of format an

onsumer buying behavior, ushering in a revolution in shopping i

ndia. Modern retailing has entered into the Retail market in India a

s observed in the form of bustling shopping centers, multi-storie

malls and the huge complexes that offer shopping, entertainment an

ood all under one roof. A large young working population witmedian age of 24 years, nuclear families in urban areas, along wit

ncreasing working women population and emerging opportunities i

he services sector are going to be the key factors in the growth of th

rganized Retail sector in India. In India the vast middle class and it

lmost untapped retail industry are the key attractive forces for globa

etail giants wanting to enter into newer markets, which in turn wielp the India Retail Industry to grow faster.

HE INDIAN RETAIL SCENE.

ndia is the country having the most unorganized retail marke

raditionally it is a familys livelihood, with their shop in the front an

ouse at the back, while they run the retail business. More than 99%

etailers function in less than 500 square feet of shopping space.Acharya's Bangalore B-school 33

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lobal retail consultants KSA Techno park have estimated tha

rganized retailing in India is expected to touch Rs 35,000 crore in th

ear 2005-06. The Indian retail sector is estimated at around R

00,000 crore, of which the organized sector accounts for a mere 2 pe

ent indicating a huge potential market opportunity that is lying i

ont.

urchasing power of Indian urban consumer is growing and branded

erchandise in categories like Apparels, Cosmetics, Shoes, Watches,

everages, Food and even Jewellery, are slowly becoming lifestyle

roducts that are widely accepted by the urban Indian consumer.

dian retailers need to advantage of this growth and aiming to grow,

versify and introduce new formats have to pay more attention tohe brand building process.

here is no doubt that the Indian retail scene is booming. A number o

rge corporate houses, with beauty and health stores, supermarkets,

elf-service music stores, new age book stores, every-day-low-price

ores, computers and peripherals stores, office equipment stores and

ome/building construction stores. Today the organized players havettacked every retail category. The Indian retail scene has witnessed

oo many players in too short a time, crowding several categories

ithout looking at their core competencies, or having a well thought

ut branding strategy.

TRATEGIES, TRENDS AND OPPORTUNITIES

etailing in India is gradually inching its way toward becoming theext boom industry. The whole concept of shopping has altered in

erms of format and consumer buying behavior, ushering in a

evolution in shopping in India. Modern retail has entered India as

een in sprawling shopping centre's, multi-storied malls and huge

omplexes offer shopping, entertainment and food all under one roof

he Indian retailing sector is at an inflexion point where the growth o

rganized retailing and growth in the consumption by the Indian

opulation is going to take a higher growth trajectory.'

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he Indian population is witnessing a significant change in its

emographics. A large young working population with median age of

4 years, nuclear families in urban areas, along with increasing

orkingwomen population and emerging opportunities in the service

ector are going to be the key growth drivers of the organized retail

ector in India.

ROWTH OF RETAIL SECTOR IN INDIA

etail and real estate are the two booming sectors of India in the

resent times. And if industry experts are to be believed, the

rospects of both the sectors are mutually dependent on each other.

etail, one of Indias largest industries, has presently emerged as one

f the most dynamic and fast paced industries of our times witheveral players entering the market. Accounting for over 10 per cent o

he country GDP and around eight per cent of the employment

etailing in India is gradually inching its way toward becoming the nex

oom industry.

HALLENGES & OPPORTUNITIES

etailing has seen such a transformation over the past decade that itsery definition has undergone a sea change. No longer can a

anufacturer rely on sales to take place by ensuring mere availability

f his product. Today, retailing is about so much more than mere

erchandising. As the Indian consumers evolve they expect more and

ore at each and every time when they step into a store. Retail today

as changed from selling a product or a service to selling a hope, anspiration and above all an experience that a consumer would like to

epeat. Retailing in India is currently estimated to be a US$ 200 billion

dustry, of which organized retailing makes up a paltry 3 percent or

S$ 6.4 billion For retail industry in India, things have never looked

etter and brighter. Challenges to the manufacturers and service

roviders would abound when market power shifts to organized

etail.

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ONCLUSION

he retail sector has played a phenomenal role throughout the world

increasing productivity of consumer goods and services. It is also

he second largest industry in US in terms of numbers of employees

nd establishments. There is no denying the fact that most of the

eveloped economies are very much relying on their retail sector as a

comotive of growth. The India Retail Industry is the largest among

l the industries, accounting for over 10 per cent of the countrys GD

nd around 8 per cent of the employment. The Retail Industry in India

as come forth as one of the most dynamic and fast paced industries

ith several players entering the market. But all of them have not yet

asted success because of the heavy initial investments that areequired to break even with other companies and compete with them

he India Retail Industry is gradually inching its way towards becomin

he next boom industry.


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INDIA IN 2020...

Vineeth.R. & Sachin.N

MBA (1st semester)

INDIA will be a developed country? I want to live in a

eveloped INDIA. I am quite sure that, there are millions, in our

ountry having the same aspiration as mine.

r.A.P.J. Abdul kalam, in his one of speeches elaborates the concept o

INDIA-VISION 2020,which the whole country is waiting for.

Transforming the nation into a developed country, certain areas in

ombination have been identified based on Indias core competence,

atural resources and talented man power for integrated action to

ouble the growth rate of GDP and realize the vision of developed

dia.

That sectors that helps in growth of India are:

MANUFACTURING SECTOR: India stands to gain enormously byoupling of computers and manufacturing process. Mass production

or masses became the bases of new business strategies.

In 2010,in engineering industries ,60% of machine tools produces

ill be CNC ( Computer and Numerically Controlled)

By 2020, 80% of machine tools produced will be CNC.

By 2020, India will be leading producer or exporter of casting andorging and will be self sufficient in advanced machine tools and

oilers.

NFORMATION-TECHNOLOGY SECTOR: The Indian IT industry account

or 5.19% of countrys GDP.

On 2010-2011, annual revenues from IT, BPO sector is estimated to

ave grown over US $ 54.33 billion. Indias outsourcing industry isxpected to increase is to US $225 billion by 2020.

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EALTH CARE SECTOR: The Indian health care sector is to reach US $

20 billion by year 2020, there by contributing an expected GDP of 8%

y 2012 from 5.5 %in 2009. The Indian health care industry will reach

he market value of US $ 280 billion by 2022.

Among the worlds 10 richest people, four are Indians. On

he other side, 17 million Indian children work as laborers.

dias economy is galloping around 7% GDP growth. But also, 2

illion children die before their first birthday due to lack of

mmunization and medical facilities!

till, we have a dream . Dream of a developed India before the year020. A nation progress depends upon how its people think

specially the youths. Our population 1.21 billion people are, not a

urden, but they are our resources for this national transformation.

Let the young minds blossom

ull of thoughts.. thoughts of prosperity.

.................

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MOTIVATION: A WAY TO RECOGNISE EMPLOYEESS EFFORT.

MALVIKA SINGH

MBA (1st semester )

Throughout ones career, recognition in workplac

nd in life is very important. We want recognition, we thrive on it an

makes us feel good. Yet most of us do not give or receive enough o

. Most of the employers or employees at various levels in differen

dustries have agreed that the most important things employee

anted are recognition. They want to be appreciated, applauded anecognized for the contributions they make in the company. Yet sad

ecognition is something most employees feel they don't receive - a

ast not often enough. Employee recognition is not just a nice thin

o do for people. Employee recognition is a communication tool tha

einforces and rewards the most important outcomes people creat

or business. Leaders know that the secret to success is being able traw out and encourage employees to be their best. Recognizing th

rengths and contributions of those around us and taking the time t

t them know how important they are is critical to organizationa

uccess. Human beings live and grow with praise. Most employees sa

hat they would love more money but what they want most is to b

ppreciated and recognized. Yet it is not happening in the workplaceWhy are we hesitant to give recognition? Why do we keep the positiv

hings to ourselves? Why do we believe recognition is someone else

b? The answer is very interesting; the following things preven

eaders to recognize their Employees

) Its scary. Giving recognition and praise is risky.

Employees might get a big head and stop working so hard. Th

pposite is actually true - employees will work harder when the

now they are appreciated. Acharya's Bangalore B-schoo40

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We don't have time. I know we are all busy but that's no excuse

e must make the time.

We don't know how to do it. There are thousands of resource

vailable. Google "employee recognition" and we will find lots o

formation to help us recognize the people we work with.

It is not our job. Recognition is management's job. Whil

anagement needs to recognize their employees but we all can mak

difference by recognizing and letting our co-workers know how

uch we appreciate them. Recognition is everyone's job!

We are not good with people. But we can learn - we all can. Atten

seminar, read a book and practice.

They will come to expect praise if we give it too often. We caraise people too often if we always keep it real. Fake praise o

ecognition will never work.

We don't see anything to recognize. Watch, listen and as

uestions. The best way to recognize others is to be a good observe

ll employees have some merits for which they can be recognized for

It is hard. Yes it can be hard and it takes time. Yet the rewards wiutweigh whatever time and effort it takes.

0) We should get it first. The best way to begin the cycle o

ecognition is to be the one to give it. Recognition is contagious - an

may just come back to us! Recognition takes time and commitmen

ecognition is a life long journey both in our professional and persona

ves. The better we are at recognizing others - the more excellence'll have in business and in life. As our day goes by, let's watch an

sten for ways to recognize our fellow employees & friends. Look fo

ays we can applaud, appreciate or affirm them. Take the job o

ecognition seriously and go make someone's day. Sometimes

mple ' thank you ' is just the encouragement someone needs. And a

ther times its just a 'smile'. Whatever it is - let's do something t

ecognize someone today.charya's Bangalore B-school

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Updated Technology increases Profitability of Business

Siraj R & Rinnoy .R

MBA, PGDM (1st sem)

Time and again, history has taught us that

he technologically superior win be it nations, civilizations,

dividuals or companies. The radio industry was booming till the

arly 1990s. But the mobile phone changed it all. Now, the radio

dustry is limited to only a few companies which are able to sell

n the content they offer, rather than the technology. It is alsopplicable for all types of machinery say mechanical, electrical,

ructural, and mining and many other inter-engineering

echnologies. Let us take the example of Automobiles. The engine

esign is modified several times over past few decades that

utomobiles from fuel guzzlers and comfort are now high speed,

omfort and give mileage as much as 25 kmpl. In elecricals the sizf the motors is reducing giving more feasibility of usage. In

ddition there could be seen major technological improvements i

eneration, transmission and distribution. The digital meters we

ee at our homes is a recent one in India. All these aim at more

fficiency, lesser space occupation and durability.

Structural engineering is improving

ontinuously and as a result you find improved roads, long

ridges, taller buildings etc. Again all are aimed at lesser cost,

more load bearing, more traffic lanes and if its a building then

more space to work for or live in. Mining is aimed at more output

hrough sophisticated machinery, safety factor and many othermprovements.

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The mobile is the perfect example of a

echnology which led a disruptive change among many industries

ompanies tried to win against this technology rather than among

hem. The businesses around digital camera, personal computer,

MP3 player, calculator all underwent a disruptive change. Many,

ke camera makers, forayed into digital medium with highesolution as their forte. Others like the digital and wrist watch

dustry were severely impacted with the advent of mobile

hone. Similarly, the snail mail industry and along with its mascot

he erstwhile ubiquitous postman lost his job, all thanks to email

nd the internet. Interestingly, it is in war time that nations invest

eavily in technologies to defeat each other. The most importantechnological innovation in present times dates their origin to the

old war era between the US and the Soviet Union. The ARPANET

ame into existence as an internal communication network for the

S department of defense, which was the first form of internet.

The worlds first search engine,

mailing technologies and instant messaging were also firstvented for the ARPANET (Advanced Research Projects Agency

etwork). Similarly, todays GPS (Global Positioning System) also

ates its origins to the US DoD. Google is an apt example of how a

echnological superiority can help overpower existing leadership.

oogle was a very late entrant in the search engine technology in

998. Many popular web search engines were already launchedke Infoseek, Webcrawler and Lycos in 1994, Altavista and Excite

1995 and AskJeeves in 1996. But Google captured the market in

st 4-5 years of it being launched, based upon the superior

gorithms and search technology. Similarly, the Apple iPod has

een able to capture the worldwide portable media player marke

ver other players like Zen, Samsung, based on superior soundnd storage quality. Acharya's Bangalore B-schoo

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Most technology companies, however, keep in mind the invention

f the integrated circuit in 1958, the number of transistors that

an be placed inexpensively on an integrated circuit has increased

xponentially, doubling approximately every two years. This led to

he advent of efficient, faster but cheaper computer chips,memory cards, hard drives, mobile phones, computers, basically

ny piece of electronic equipment you can imagine today. It has

ontinued in the last century and is expected to hold true for quit

ome time now. It will affect everything from wireless networks

nd undersea cable traffic to the amount of songs and videos you

an store on your handheld. Technology also forces existingaders to change their business strategy. For instance, the mobil

hone operators all over the world are shifting to IP technology

ecause of its disruptive nature. While operators themselves have

ecome ISPs, in India they are opposing the opening up of the

omestic internet telephony as it will drop the prices of call rates

rastically.

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Levis launches Green Jeans

-Vaishali Agarwal

Priyanka Agarwal

PGDM - I Sem.

We are already aware of Ethical value

fLevis. Long back it started the practice of arranging for educatio

cilities for poor children. It has come up with a new idea of GREE

EANS. Though theyre not the first "green jeans" to go on the marke

ut Levi's says its new eco jeans are the first fully sustainable denimom a major brand.

he trousers, which went on sale 2nd November, 2011 in 20 Levi

ores across the UK, are made with completely organic materials on

roduction line that uses sustainable production processes.

t's not only organic fabric but the other components are als

rganic; the finish we use is totally organic too," said Geert Peeterhe vice-president of product management. "The whole process o

ow the jeans are made is also organic."

he jeans are made with 100% organic cotton denim, have a coconu

hell button on the waistband and non-galvanised metal fly button

he indigo finish has been produced from potato starch, mimos

ower and Marseille soap. They are produced in a dedicated area ohe Levi's factory in Hungary, on machinery that has been special

eaned to comply with the certification process.

he process of designing the jeans and putting the processes in plac

o make them took six months from when Levi's came up with th

ea in May. You Nguyen, the senior vice-president of Levi's product i

urope, said it was a result of "zeitgeist research".

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We found more and more consumers were making product choice

ased on the environmental and social impact," he said. "They wer

etting interested in apparel made using sustainable productio

ethods, but they still wanted style and quality - it was no longe

ther/or.

While some environmentalists welcome the development of mor

reen goods, others argue that taking some of the guilt out o

hopping allows people to continue consuming at an unsustainabl

vel with a clear conscience.

Switching to organic cotton and reducing carbon emissions a

anufacturing will hopefully become the norm for the fashio

dustry," said Jessa Latona, the spokeswoman for the Centre folternative Technology which promotes sustainable living.

However, rather than running to the shops tomorrow and buying

ew pair of jeans, consumers could create their own eco wardrobe b

ecycling and reusing old clothes - getting creative with last season

ans rather than throwing them out.

This would be tackling the waste problem at source, by simpeducing what you buy in the first place.

Consumers have the power to change things - shops an

anufacturers are just meeting the demand from shoppers."

y coincidence, tomorrow is the annual Buy Nothing Day in the UK

hen consumers are encouraged to spend some quality time wit

heir family rather than hitting the high street.he campaign's website said the day "exposes the environmental an

thical consequences of consumerism".

ven with green jeans in the shops, for some, the mos

nvironmentally sound thing to do is to not go shopping.

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Proper use of Reports and Procedures

Pooja Singh & Faizal A.V

MBA,PGDM (1st semester)

Management by self-control requiresomplete rethinking concerning use of reports, procedures and

orms. Reports and procedures are necessary tools. But few tools

an be so easily misused, and few can do as much damage. For

eports and procedures, when misused, cease to be tools and

ecome malignant masters. There are three common misuses of

eports and procedures. The first is all too common belief thatrocedures are instruments of morality. They are not; their

rinciple is exclusively that of economy. They never decide what

hould be done, only how it might be done most expeditiously.

roblems of right conduct can never be procedural zed (surely) th

most horrible word in the bureaucrat conversely; right conduct

an never be established by procedure .he second misuse is to consider procedures a substitute for

udgment. Procedures can work only where judgment is no longer

equired, that is in the repetitive situation for whose handling the

dgment has already been supplied and tested. Our civilization

uffers from a superstitious belief in the magical effect of printed

orms. And the superstition is most dangerous when it leads usto trying to handle the exceptional, non-routine situation by

rocedure. In fact, it is the test of a good procedure that it quickly

entifies the situations that even in the most routine of

rocesses, do not fit the pattern but require special handling and

ecision based on judgment. But the most common misuse of

eports and procedures is as an instrument of control from above

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This is particularly true of those that aim

t supplying information to higher management, the forms of

veryday business life. The common case of the plant manager

ho has to fill out twenty forms to supply accountants, engineers

r staff people in central office with information he himself doesot need is only of thousands of examples. As a result his

ttention is directed away from his own job. The things he is asked

bout or required to do for control purposes , come to appear to

m as reflections of what the company wants of him, become to

m the essence of his job; while resenting them, he tends to put

ffort into these things rather than into his own job. Eventually,s boss, too, is misdirected, if not hypnotized, by the procedure.

A large insurance company, a few

ears ago, started a big program for the improvement of

management. To this end it built up a strong central-office

rganization concerned with such things as renewal ratios, claimettlement costs, sales methods, etc. This organization did

xcellent work at top management learned a lot about running an

surance company. But actual performance has been going down

ver since. For the managers in the field spend more and more

me filing out reports, less and less doing their work. Worse still,

hey soon learned to subordinate performance to a good showingot only did performance go to pieces, spirit suffered even more.

op management and its staff experts came to be viewed by the

eld managers as enemies to be out smarted or at least kept as fa

way as possible. Similar stories exist ad infinitum in every

dustry and in companies of every size. But, above all it is the

esult of the misuse of procedures as control.

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One of the leading company presidents

ells the following story on himself. Fifteen years ago he bought

or his company a small independent plant in Los Angeles. The

ant had been making a profit of $250,000 a year; and it was

urchased on that basis. When going through the plant with thewner who stayed on as plant manager, the president asked: How

o you determine your pricing? Thats easy the former owner

nswered we just quote ten cents per thousand less than your

ompany does. The next question was, how do you control your

osts? Thats easy was the answer; we know what we pay for raw

materials and labor and what production we ought to get for themoney. The final question was how you control overheads. We

ont bother about it was the answer. The president they can

ertainly save a lot of money here by introducing thorough

ontrols. But a year later the profit of the plant was down to

125,000; sales had remained the same and prices had remained

he same; but the introduction of complex procedures had eatenp half the profit.

Reports and procedures should be kept

o a minimum and used only when they save time and labor. They

hould be as simple as possible. With the advent of system

omputerization to certain extent rationalization is inculcated

hereby unnecessary reports and procedures are automaticallyontrolled.

'

49

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ETHICAL VALUES FOR BUSINESS SUCCESS

Alex Puthur & Arun Mohan

MBA (1st semester)

Ethics is based on a set of moral and ethica

alues. These values must be absolute - that is, you must take them

eriously enough to override any human rationalization, weaknes

go, or personal faults. When all else fails, you will always look bac

o these core values to guide you. Unfortunately, life is not that eas

nd there is always disagreement about what values should reig

upreme. Luckily, in the world of business ethics, your employer help

ou. In a nutshell, their values are your values (in the context oork). Your freedom to choose your own ethical values is somewha

mited. Considering the rash of corporate scandals these days, th

hought of following the corporation's values might not be to

omforting. Problem: Whose or what values can you trust? Loo

ehind successful, honest businesses and you will see a set of value

hat have stood the test of time. Think about how these values arommunicated in your organization and what you can do to suppo

hem.

onesty. The old adage, "honesty is the best policy" is true toda

ore than ever. It's not just lip service. Employee manuals from mos

candalized corporations are likely to contain slogans touting it

ommitment to honesty. Claiming to be honest in an employeanual is pass. You're either honest or not. Even if you haven't go

aught yet, most people know who is and who isn't.

tegrity. Integrity connotes strength and stability. It means taking th

gh road by practicing the highest ethical standards. Demonstratin

tegrity shows completeness and soundness in your character and i

our organization.

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esponsibility. Blaming others, claiming victimhood, or passing th

uck may solve short-term crises, but refusal to take responsibilit

rodes respect and cohesion in an organization. Ethical people tak

esponsibility for their actions. Likewise, actions show the ability to b

esponsible both in the little and big things.

uality. Quality should be more than making the best product, bu

hould extend to every aspect of your work. A person who recognize

uality and strives for it daily has a profound sense of self-respec

ride in accomplishment, and attentiveness that affects everything

rom your memos to your presentations, everything you touch shoul

ommunicate professionalism and quality.

rust. There's no free ride. Trust is hard to earn and even harder to ge

ack after you've lost it. Everyone who comes in contact with you o

our company must have trust and confidence in how you d

usiness.

espect. Respect is more than a feeling, but a demonstration oonour, value, and reverence for something or someone. We respec

he laws, the people we work with, the company and its assets, an

urselves.

eamwork. Two or more employees together make a team. It is

usiness necessity to work openly and supportively in teams whetheormal or informal.

eadership. How many hardworking, honest employees have bee

inted and led astray by corporate leadership failings? Managers an

xecutives should uphold the ethical standards for the entir

rganization. A leader is out front providing an example that other

ill follow.

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orporate Citizenship. A foundational principle for every company

hould be to provide a safe workplace, to protect the environment,

nd to become good citizens in the community. Shareholder Value.

Without profitability, there is no company. Every employee should

nderstand how he or she fits into the profitability picture. Everyone'

ommon goal should be to build a strong, profitable company that wi

st.

he real test of these values comes from the resulting action. It takes

oncerted, company-wide effort, beyond inserting these words in an

mployee manual, to make it happen. First, management must lead

y example. Good ethics should be most noticeable at the top. Every

mployee must be accountable to the same rules. Second, a corporat

alues or ethics initiative must be "sold" and "marketed" aggressivelyhroughout a company. Every forum and medium should be used to

pread the good message. Of course, it will only be credible if the

ompany is practicing what it preaches. Third, training must be

rovided to get everyone on the same page. It's easy to ignore a

otivational speech or pass by a poster, but spending time learning

bout the issues will have a lasting impact. Fourth, both you and theompany must be in it for the long haul. The ethics fervour should

xtend to the next generation of employees. The longer it lasts, the

ore ingrained the principles will become. Despite failings of some,

here is plenty of room at the table for good ethics and profitable

usiness to reside. Together they can lay the cornerstone for a secure

nd prosperous society. These ten values you can put in the employeeanual and mean it.

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Gold or Silver : Which is the best investment now, Details, Different

ays of investment in Gold & Silver, Interesting facts, Right time to se

them

GINU M KOSHY

MBA (3rd semester)

Should an investor buy more gold or silver?

ccording to a research concluded earlier this year, precious metals

ere the best performing assets for the second consecutive year and

so for the fourth time in the last five years. Investors enjoyed a 42%

eturn by investing in precious metals in 2010. Silver performed much

etter than other precious metals in the market in 2010 with prices

sing by an astounding 80% which is two and half times the rice inrice of gold (29%). Along with being deemed a safe investment, the

elatively low supply of the metal as compared to the high demand

as also contributed to the steady increase in price. In the first two

onths of 2011, silvers price has increased at a steady 9.3%.Judging

y the present market scenario, investing in precious metals will be a

ery wise decision. Currently it seems like silver is as good or even aetter bet than gold for investment.

What are the parameters one should consider before investing in gold

r silver?

ne of the main reasons investors prefer investing in these two meta

the stability witnessed in the market. Liquefaction is also an easy

rocess for gold or silver bars and coins. Do note that purity of theineral is of utmost priority and should be given its due importance.

nother important factor governing the decision on whether to inves

gold or silver is the price. Though the variation in the price of gold

r silver is not as unpredictable as that of shares and equities, there

ill is a noticeable difference on a daily basis.
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However, when you are investing a large sum of money

hen this small difference can make a lot of difference. Hence, one

hould study the market carefully and invest when the price is

elatively low. Choosing the right vendor is also very important. If

arefully observed then the price variations with wholesalers, retailer

nd commercial banks can be clearly noted. In this manner one can

atch out for the purest gold available at a comparatively low price.

or a regular investor, it makes sense to invest at regular intervals.

his way one can take advantage of the market volatility. Investing in

oth gold and silver makes sense for a regular investor as he can

versify and can have a steady return irrespective of market

uctuations.ifferent forms of investing in gold and silver

ther than dealing with shares and certificates, there are a number o

ays in which one can invest in gold or silver. A few have been listed

ere:

ar: One of the most traditional ways, dealing with bars is very simple

oo.oins: This sort of investment depends on the weight of the gold or

lver coins.

ccounts: Swiss banks provide a Gold-account option which aids in

ansactions involving the precious metal.

old Exchange Trade Funds: This method helps gold transactions

hrough the stock exchange.pread betting: This involves predicting the rise and fall in the price of

old or silver before investing in it.

vesting with mining companies: This is just like investing in the stoc

xchange. The only difference is that here one deals with shares from

ining companies.
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When is the right time to sell gold or silver?

With the current financial slump, people are selling their

old and silver as a means to make some extra cash. With the price of

he two precious metals having reached an all-time high, it would

robably be wise to hold on to it and see how far the prices soar and

hen cash in at the opportune moment. There are two factors that

overn the decision of the timing of a transaction involving gold or

lver, the value of the US Dollar at that moment and the investors

nancial situation. Usually, the price of gold is inversely proportional

o that of the US dollar. However, most investors dont have pure gold

ing around in large quantities. So unless you are investing orpeculating on a really large amount of gold or silver, the drop in the

S Dollars value will not matter.
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FOREIGN EXCHANGE MARKET IS DIFFERENT FROM THE STOCK

MARKETNishad Mohan

MBA, PGDM (3rd sem)

he Foreign Exchange Market is also known as the FX market, and the

orex Market. Trading that takes place between two countries withfferent currencies is the basis for the FX market and the background

f the trading in this market. The Forex market is over thirty years old

stablished in the early 1970's. The Forex Market is one that is not

ased on any one business or investing in any one business, but the

ading and selling of currencies.

he difference between the Stock Market and the Forex market is the

ast trading that occurs on the Forex Market. There is millions and

illions that are traded daily on the Forex Market, almost two trillion

ollars is traded daily. The amount is much higher than the money

aded on the daily Stock Market of any country. The Forex Market is

ne that involves governments, banks, financial institutions and those

milar types of institutions from other countries.

What is traded, bought and sold on the Forex Market is something

hat can easily be liquidated, meaning it can be turned back to cash

st, or often times it is actually going to be cash. From one currency

o another, the availability of cash in the Forex Market is something

hat can happen fast for any investor from any country. The differenc

etween the Stock Market and the Forex Market is that the ForexMarket is global, worldwide. The Stock Market is something that take

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he Stock Market is based on businesses and products that are within

country, and the Forex Market takes that a step further to include

ny country.

he Stock Market has set business hours. Generally, this is going to

ollow the business day, and will be closed on banking holidays andeekends. The Forex Market is one that is open generally twenty fou

ours a day because the vast number of countries that are involved in

orex trading, buying and selling are located in so many different

mes zones. As one market is opening, another countries market is

osing. This is the continual method of how the Forex market trading

ccurs.

he Stock Market in any country is going to be based on only that

ountries currency, say for example the Japanese yen, and the

panese stock market, or the United States stock market and the

ollar. However, in the Forex Market, you are involved with many

ypes of countries, and many currencies. You will find references to a

ariety of currencies, and this is a big difference between the StockMarket and the Forex Market.

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Employee Stress and Performance

Narayanan V.S. & Rahul Vijyan

MBA (1st semester)

reating a high performance organization is a popular theme in th

aining and development field. To survive in these competitive time

ompanies can't afford anything less. Creating a high performanc

rganization requires understanding what factors influenc

erformance. One of the most significant factors is stress.

tress, Threat, and "Numbing Out"

When animals, including human beings, are exposed to potentially lifhreatening situations; their bodies release endorphins, which ar

ature's pain-killer. This makes sense from a survival perspective.

ou are being attacked by a predator and are injured, you don't wan

o be focusing your attention on how much you hurt. This respons

oesn't just happen in response to tangible, visible threat; it is als

iggered by potential threat. Thus, if we feel threatened or fearfuur body releases endorphins. This sets the stage for seriou

tellectual and interpersonal consequences; because endorphins du

oth our ability to think and our ability to feel. Effective decision

aking and interpersonal skills require both.

mplications for the Workplace

workplaces where people are constantly afraid and insecuremployees are at risk of "numbing out" to protect them. We see it i

he blank faces of clerks, the lack of enthusiasm by front line worker

nd in the remarkably insensitive ways managers and employees trea

ach other. The very mechanism which allows a person to survive a

motionally painful environment also makes it difficult for them t

espond sensitively and empathetically to others.

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he organizational conflict and customer service consequences of th

re obviously very costly. This numbing process affects far more tha

he interpersonal realm of organizational performance. It affects a

spects of decision-making, innovation, and safety. With their thinkin

mpaired, people are at greater risk of causing serious mistakes an

ccidents. They are also obviously less likely to make wise decision

nd create process improvements.

tress and the Loss of Creativity. Creative and innovative thought ar

at the heart of the learning organization. An organization's ability t

novate is perhaps the most important source of competitiv

dvantage. Organizations who know how to stimulate and leverag

novative thought are able to respond more rapidly and resourcefull

o market changes and customer requirements than their slower, lesnovative competitors. Divergent thinking is the ability to se

onnections between very distantly related ideas and context. It is a

mportant component of "thinking outside the box." When people ar

ressed, they are able to perceive obvious connections an

ssociations between ideas. When people are in a positive emotiona

ate, their ability to make more distant, novel connections anssociations increases. Thus, stress compromises, at the mos

undamental neurological level, one of the foundational skills o

reativity and innovation.

ncontrollable Stress and the Dumping down Proces

esearch by Dr. James Pennebaker of Southern Methodist Universit

ave demonstrated a very serious consequence of uncontrollablress on thought processes. In an experiment performed by D

ennebaker, subjects wrote about whatever was going on in the

ind - their "stream of consciousness." One group was subjected to

ud noise in the middle of the exercise and told there was nothin

hey could do about it; they had to "grin and bear it.

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60

he other group was subjected to the same loud noise in the middle

f the exercise, but they were told they could have the noise stopped

they chose. The results were both fascinating and disturbing in thei

mplications for organizational performance. The group that had no

ontrol demonstrated a significant deterioration in their thought

rocess during and after the noise. Their thinking became

nemotional, unimaginative, and dull. It was as if they became

emporarily dumb in order to endure the stressful situation. Even

ore interesting was the other group's response. "Although they wer

old they could stop the noise if they needed to, not one person

hoose to do so? Therefore, they experienced the same amount of

npleasant noise as the group which wasn't given that option. Despiteing subjected to the same amount of noxious noise, their thought

rocess remained unaffected.

hey engaged in deep, reflective, creative thought. Thus, it wasn't the

egative external situation, but the perceived lack of control, which

esulted in a diminished thinking capacity. The operative term here is

erceived. This study and others like it show that even if a person'serception is wrong - if in fact they really don't have control, the effec

the same as if they truly had control. It's the perception, the belief

hat matters. Closely linked to this sense of perceived control is

redictability. As long as a person (or lab rat for that matter) knows

hen the next painful situation will occur, they do not suffer the same

nd of psychological and physiological harm as those who don't knowwhen the other shoe will drop." Simply knowing creates a feeling,

ven if ill-founded, of control.

mplications for The Workplace

ne obvious implication of this research is that employee intellectual

unctioning can be very powerfully influenced by their environment.

workplaces where employees feel helpless and disempowered, the

re less likely to think in intelligent, creative ways.

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nother important implication, and this is borne out by oth

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