National Institute of Business ManagementIst Floor, Swathandrya
Samara Smrithi Bhavan, Nandavanam Road
Palayam P.O. Trivandrum 695 033
E-mail: [email protected] 4014294, 4014298
Assignments of Two year MBA Program
Semester - IV1. Students are requested to go through the
instructions carefully.
2. The Assignment is a part of the internal assessment.
3. Marks will be awarded for each Assignment, which will be
added to the total marks. Assignments carry equal marks.
4. Assignments should submit in your 'portal' on/before the
'completion date' mentioned.
5. Case study project is based on the elective subject
selected.Please submit your case study also in the portal on the
'completion date' of forth semester assignments.Assignments
Total Marks :100
1. International Trade Management
Which are the basic information you should have if you are to be
an effective International Trade Manager in an exporting firm?
FOLLOWING BASIC INFORMATION YOU SHOULD HAVE TO BE AN EFFECTIVE
INTERNATIONAL TRADE MANAGER IN AN EXPORTING FIRM ::
1. Regulations
Exporters can be sole proprietors, partnerships or companies.
The regulations, permits or licences which affect exports apply to
the goods or services exported not to the individual or
organisation exporting them. There are no restrictions on who or
what type of business may export from INDIA but the goods or
services exported must comply with existing export regulations.
In an export context the over-riding regulation is that all
consignments leaving INDIA, must be declared to the Indian Customs
Service to check any duty needs to be paid. The declaration to
Customs can be made by exporters or by their appointed freight
forwarder .
It is advisable to contact the Indian Customs Service or an
international freight forwarder to ascertain if any export
regulations apply to your specific product or service before
proceeding further with your export plans.
Registration
Registration with Reserve Bank Of India: No longer required.
Registration with Regional Licensing: Authorities (obtaining IEC
Code Number) The Customs Authorities will not allow you to import
or export goods into or from India unless you hold a valid IEC
number.
Register With Export Promotion Council
In order to enable you to obtain benefits/concession under the
export-import policy, you are required to register yourself with an
appropriate export promotion agency by obtaining registration-cum-
membership certificate.
Registration With Sales Tax Authorities
Goods which are to be shipped out of the country for export are
eligible for exemption from both Sales Tax and Central Sales Tax.
For this purpose, you should get yourself registered with the Sales
Tax Authority of your state after following the procedure
prescribed under the Sales Tax Act applicable to your State.
Excise Procedure
All excisable goods exported out of India are exempt from
payment of Central Excise Duties, for which two different
procedures have been approved
Rebate of Duty on Goods Export Procedure
Under the first procedure, known as 'Rebate of duty on Goods
Export. The manufacturer has first to pay the excise duty on goods
meant for export and then claim refund of the same after
exportation of such goods to countries except Nepal and Bhutan.
Export under Bond Procedure
Under the second procedure known as "Exports Under Bond" goods
can be exported out of India except to Nepal or Bhutan without
prior payment of duty subject to the execution of the Bond with
security / security for a sum equivalent to the duty chargeable on
the goods to be exported.
2. Market Research
Extensive research is necessary in order to assess the potential
market for a given product or service in a defined region. It may
be conducted by employees of a business or by an external
consultant appointed by the business. The ultimate aim of the
market research program should be to provide comprehensive,
accurate information on which to base a successful export marketing
strategy.
Export market research can be divided into two phases, desk
research and overseas research.
Phase 1 Desk Research
This is the process of gathering information from sources within
India. There are many such sources able to provide a wealth of
information.
These include:
banks
bilateral, social and business organisations
chambers of commerce
consulates/embassies
Department of Foreign Affairs and Trade
export consultants
international freight forwarders
international business and telephone directories
the Internet
Universities or other tertiary institutions.
Phase 2 Overseas Research
This is the process of gathering information in the market
itself. A first hand evaluation of the sales potential for the
product or service in the overseas market is essential. This may
involve discussions with potential buyers, agents, distributors,
joint venture partners and government authorities, attendance at
trade fairs and exhibitions, product testing in the market place,
customer surveys, etc.
This phase of the research programme should only be commenced
after every aspect of Phase 1 has been exhausted.
Ultimately the information gathered must result in the
production of a practical export marketing strategy, which is
capable of implementation by the company for which it was
designed.
Preliminary Export Research Program
A typical research program should seek to ascertain:
preferred target market
economic overview of the target market
demographic overview of the target market
cultural and religious environment
basic import regulations
tariffs, taxes and quotas
transport infrastructure
distribution networks
potential customers within the target market
entrenched competition
pricing policy
preferred trading terms
packaging and presentation.
This list is by no means exhaustive but these are the prime
factors you should be aware of before venturing into an export
market.
3. Terminology
Every field of endeavour has its own vocabulary and export is no
exception. It is important to know the terms used in international
trade, not only in order to understand exactly the offer which is
being made or accepted, but also in order to present a fully
professional approach to your potential trading partners.
The most important part of the export vocabulary is the set of
terms universally known as Incoterms.
Trading Terms (Incoterms)
The most commonly used rules for the interpretation of trading
terms in international trade are those defined by the International
Chamber of Commerce (ICC). They are internationally recognised and
are known as Incoterms. Incoterms signify to the buyer what is, and
more importantly what is not, included in the selling price. They
also indicate where the exporter's responsibility ends and the
importers responsibility begins in respect of the goods
exported.
Which term will apply to a particular export transaction is a
matter for negotiation between buyer and seller. However, inclusion
of the appropriate term in export quotations is crucial in order to
determine the responsibilities of both parties in the contract of
sale.
4. Export Prices, Offers and Contracts
Export Prices
Calculation of export prices is usually based on the
differential costing method. This method treats exports as
additional business; incremental to the main core of domestic
trading. Exports therefore bear a reduced contribution to the
manufacturer's fixed costs.
Export prices may also be affected by duty drawback. Where an
export product contains imported material or components on which
duty has been paid, the amount of duty paid can be claimed back
from Indian Customs Service when the product is ultimately
exported. The export price will reflect this reduction in cost.
These are matters of accountancy and should be discussed in
detail with your accountant.
Additional costs such as bank charges, cost of Forward Exchange
Cover, etc., may also have to be taken into account before arriving
at a firm export price.
A cautionary word: it is unwise to set an artificially low price
when trying to enter an export market because it is usually very
difficult to raise this to a realistic level at a later date. It is
preferable to enter the market at a realistic level with an
undertaking to hold prices firm for a fixed period of time, say 90
or 120 days after the date of the quotation.
Ultimately export pricing will be determined having regard to
two fundamental points; the price the exporter needs to cover all
costs and make a reasonable margin of profit, and what price the
market is prepared to pay. There is little point in sacrificing
profit if the market is willing to pay a higher price.
Export Offers :
To correctly evaluate an export offer, an importer requires the
following basic information :
Description of the Goods
A detailed description of the goods is necessary to avoid
misunderstanding between exporter and importer and so that the
importer can correctly classify the goods for Customs purposes.
Price
Exporters should always specify the currency in which the price
is quoted.
Trading Term
The price should always be accompanied by the appropriate
trading term indicating which elements of the transport and
insurance costs are included in the quoted price.
Delivery Schedule
Delivery schedules should set out the quantity which can be made
available for shipment within a specified period eg "3,000 units
within 2/3 weeks of receipt of firm order and 2,000 every week
thereafter". It is preferable that delivery schedules be slightly
conservative; much better to deliver ahead of time than after the
promised date.
Packing Specification
Sets out how the goods will be packed, the number of units per
carton or pallet and the weight and dimensions of the packages.
This will enable the importer to determine how the goods will be
warehoused upon arrival and to ascertain the cost of transporting
the consignment if this is not included this in the quoted
price.
Payment terms
It is important to state your preferred payment terms for two
reasons:
so that there will be no misunderstanding as to how the importer
is to make payment; and
because some methods of payment will involve the importer in
significant additional expense and this must be taken into account
when costing imports.
The most commonly used payment terms are:
Prepayment - Absolutely secure from the exporter's point of
view. Payment is received prior to dispatch of the goods.
Documentary Letter of Credit - Almost completely secure for the
exporter. A Letter of Credit (more correctly called a Documentary
Credit) is an arrangement whereby a bank, operating on the
instructions of an importer, authorises another bank to pay a fixed
sum to an exporter on production of specified documents. The rules
governing the use of Letters of Credit are contained in Uniform
Customs and Practice for Documentary Credits (ICC No. 400)
available from most Banks.
Bills of Exchange/Cash Against Documents - From an exporters
point of view not as secure as Prepayment or Letter of Credit.
Bills of Exchange are accompanied by shipping documents are
usually referred to as documentary collections.
Open Account - No security of payment. Payment is made by the
importer after the goods have been despatched by the exporter.
A number of excellent publications are available from the major
banks, which give a detailed explanation of the various methods of
payment used in international trade.
Validity
Indicates the period during which the export offer will remain
unchanged.
Warranty
A certification as to quality.
Other
Provision of samples for testing etc.
Export Contacts come into being by a process of offer and
acceptance. When an offer has been accepted by the buyer, the
contract exists and is legally binding on both buyer and seller. It
is difficult to withdraw or amend an incorrect offer after it has
been accepted. Accurate pricing and careful preparation of the
export offer is, therefore, essential given that this represents a
formal offer of goods for sale.
5. Insurance
In an export context insurance can be said to fall into two
types:
Insurance against loss or damage
Consignments with anything over minimal value should be insured
against loss or damage during transit. Who has responsibility for
effecting insurance is totally dependent upon the terms of the
contract of sale negotiated between exporter and importer. In a FOB
or CFR contract this responsibility lies with the importer, in a
CIF contract with the exporter .
The extent of cover, whether it is from wharf to wharf or
warehouse to warehouse, will vary from contract to contract.
It is customary in most types of international trade to insure
goods for CIF value plus 10% in order to recover all costs
associated with the shipment including the cost of the premium paid
to the insurance company.
Insurance against default of buyer
If the payment terms negotiated with an overseas buyer are less
than secure, it is possible to insure against the risk of non
payment through private insurers.
The risks covered by this type of insurance include:
default by the buyer
buyers refusal to accept delivery
buyer insolvency
inability to deliver due to unforseen circumstances
war, hostilities or civil disturbances
government intervention.
Exporters should also be aware that if their product has the
propensity to cause damage or personal injury, it is advisable to
explore the possibility of taking out product liability insurance
to cover this risk. This is particularly advisable when considering
export to markets where litigation is common.
6. Freight
Freight is the name usually given to cargo which is to be
transported from one designated point to another, but the term is
also used to denote the cost of transport. In view of this,
exporters should make absolutely clear what is meant by use of the
term "Freight".
Freight Rates (air and sea) - While it is almost always true
that kilo for kilo sea freight will be less expensive than
airfreight, it is also true that the minimum freight payable for
dispatch by sea is usually much higher than the minimum payable for
dispatch by air. This means that it is often less expensive to
dispatch small consignments by air than by sea.
Conference Rates - Ship owners operating vessels on a particular
run - say India to West Coast USA - form a cartel to fix freight
rates and sailing schedules. This cartel is called a Shipping
Conference and is one of the few forms of price fixing cartel,
which is deemed to be legal . This is because it ensures stability
of freight rates which enables exporters to prepare export
quotations in the knowledge that the freight rate will not change
without adequate warning. It also rationalises sailing schedules
thus ensuring that sailings to a particular destination will be at
regular intervals. It follows that all shipping lines that are
members of the Conference will offer identical freight rates for
the carriage of cargo.
It should be noted that the conference system does not operate
in respect of airlines so rates for airfreight can differ. It is
advisable to obtain several quotes for airfreight consignments in
order to take advantage of the best available rate.
Weight Measurement Ratio - The total amount of freight payable
for the transport of cargo is usually calculated by applying the
quoted freight rate to the weight or measurement of the cargo,
whichever offers the greater return to the shipping company or
airline.
Hazardous cargo - Freight rates will always vary depending upon
the type of cargo to be carried. If the cargo is deemed to be of a
hazardous nature, eg. volatile, noxious, injurious to health,
likely to contaminate other cargo, etc., then special rates will
apply and the carrier may require special packing to prevent
damage. Check with your freight forwarder as to the standards or
regulatory requirements which may affect the transport of your
cargo.
Because of the above it is recommended that exporters seek the
services of a reputable international freight forwarder when
considering selling into overseas markets.
International Freight Forwarders
The services usually offered by international freight forwarders
are:
Booking space
Forwarders will make the necessary bookings with shipping
companies or airlines to ensure that the cargo is transported in
the correct manner with the minimum amount of delay.
Freight savings
Most forwarders make regular "block bookings" of space on ships
and aircraft. They are thus able to consolidate the cargo from a
number of individual exporters and, in some circumstances, pass on
the savings achieved to their clients in the form of reduced
freight rates.
Costing
They are able to assist exporters in calculating the cost
involved in exporting goods to a particular destination. They can
also advise on the most economical means of transport, ie. air
versus sea or a combination of both. They can also advise if
savings can be achieved by deferring dispatch, for example, until
the next consolidated consignment leaves.
Cargo monitoring
Forwarders are able to monitor the movement and location of
particular cargo from the time it leaves the exporters premises to
the time it arrives at the importer's premises.
Documentation
It is essential that export documents be absolutely free of
error if international transactions are to be trouble free.
Forwarders are able to produce documents which comply with
exporter's instructions, letters of credit and the regulatory
requirements in the importers country. Where speed is essential in
the transmission of documents, forwarders are able to fax or email
copies to importers or their agents thus ensuring faster customs
clearance and delivery. This in turn reduces the risk of incurring
storage charges at the port of destination.
Storage
Most forwarders have the facility to store outgoing and incoming
cargo and this facility usually extends to Bond Storage. They are
also able to arrange inspection by the Indian Customs Service or
other agencies if this cannot be conveniently accomplished at the
exporters premises.
Market information
Because of their strong overseas connections, forwarders are
often able to provide their clients with information about market
conditions, export and import requirements, duty rates, etc. The
amount of duty paid in the importer's country will depend upon how
the product is classified in terms of the customs tariff. Your
freight forwarder can advise on ways to achieve the best tariff
classification in order to legitimately minimise customs duty.
When using the services of a Forwarder your instructions should
be clear and concise. Most forwarders have their own forms on which
to provide instruction.
When seeking information from Forwarders about freight rates, it
is essential to provide accurate and adequate details with regard
to the nature of the cargo, its destination and packing
specification.
It is also important that you obtain from the Forwarder written
confirmation of the rates quoted and the range of services offered
in order to avoid confusion and misunderstanding in the future.
7. Export Marketing
There are many ways in which a product or service can be
marketed to buyers overseas. These fall into two main categories,
direct and indirect marketing.
The main distinction between direct and indirect export
marketing lies in the contractual relationship between the parties
concerned. By direct exports we mean those transactions where the
manufacturer or exporter has a direct contractual relationship with
the importer overseas. Indirect exports are those arranged by
contractual relationship with an intermediary, usually in the
country of export. An important test in determining if the
transaction is direct or indirect is whether the exporter will be
paid from a local (indirect export) or an overseas (direct export)
source.
In the main export marketing options are:
Direct export to an importer
Where the exporter identifies a buyer overseas and negotiates a
contract for the sale of goods or services.
Direct export using a commission agent
Similar to the above but using a commission agent in the
overseas market to solicit orders and provide after sales service.
This can either be a one step or multiple step distribution
process.
Indirect export through local merchants
Sales are negotiated with a trader in the manufacturer's
country, with payment being made in local currency from the traders
office. For example a great deal of trade between India and Japan
is done through the Indian offices of Japanese companies. There are
many such trading companies ranging from the very large Japanese
trading houses to small single operators. Most traders will
specialise in a specific product type and/or geographic area.
Manufacture under licence
The Indian company sells technical know-how to an established
manufacturer overseas who is licensed to produce the product or
service in that country.
Joint Venture
The Indian company enters into an arrangement with a company
overseas to set up a third business entity, the joint venture
company, which will be responsible for production and/or
distribution of the product or service in the overseas market
place.
Wholly owned company in the export market
The Indian company establishes a branch or subsidiary in the
overseas territory.
8. Exclusive Agreements
It is customary for agents, distributors to require some form of
exclusive right in the product or the territory in which the
product is to be sold. The agreements which convey these exclusive
rights should be negotiated with great care because once made they
can be difficult to revoke and it is vital that you appoint the
best possible people to represent your product in the market place.
. Such agreements will vary considerably depending upon the market,
the nature of the product and many other factors.
Clauses which are common to all such agreements are:
Nature of agreement
Is the agreement an exclusive distributorship, licence
arrangement or agency agreement?
Territory
This clause defines the territory covered by the agreement.
Period
This clause defines the period over which the agreement will run
and also any review options; for example - agreement to run for 5
years with a review after 1 year.
Remuneration
In an agency agreement this clause defines how commission will
be calculated and how and when it will be paid.
Exceptions
In an exclusive distributorship or agency agreement this clause
details any exceptional circumstances when the exporter may deal
directly with importers in the market.
Warranties and repairs
This clause details the warranties, which the supplier offers to
the distributor and which the distributor may in turn offer to the
end user. It also details the after sales service available in the
market place.
Promotional expenditure
This clause defines who will pay for advertising and sales
promotional material including samples. It should also define the
limit of expenditure, which can be incurred by the agent without
authorisation from the principal.
Dispute resolution
This clause determines which legal or arbitration system will
apply in the case of a dispute that cannot be resolved by the
parties to the agreement themselves.
Performance level
Defines the minimum level of sales to be achieved in a given
period. If this level is not achieved the agreement may be
reviewed.
Rights
Defines the parties rights to use brand names, trade marks
etc.
Having determined the type of agreement required and the
principal points to be covered, it is essential that you consult a
legal firm with experience in the area of international agreements.
They will ensure that the final agreement reflects the wishes of
both parties thus avoiding potentially disruptive and costly
disputes.
9. Export Finance
The amount of finance required to enter overseas markets will
vary from business to business and depend largely upon the export
strategy which individual companies adopt. However, it is true that
in all circumstances, export will require additional financial
resources.
In an export context additional financial resources may be
required for the following:
Pre-shipment Finance
Finance required for the purchase of product, raw materials or
components prior to manufacture and export of the goods.
Post-shipment Finance
Finance required to continue operations in the period between
dispatch of the goods and receipt of payment.
Working Capital
To facilitate the day to day operation of the firm, ie.
overheads, wages, maintenance of plant and equipment etc. In an
export context this may also involve documentation charges,
entertainment for overseas visitors, market research, overseas
visits, translations etc.
Applying for Finance
Banks and other lending institutions will usually provide their
own forms on which to apply for finance. Naturally these will vary
from bank to bank. However, most loan applications will require the
following details:
the amount of money required
the purpose for which it is required
preferred repayment terms
security offered
cash flow projections
details of existing debt
financial details of the business
trading history
stock valuation
experience/qualifications of the proprietors
management structure
short term objectives
long term objectives
market research findings
other relevant considerations, such as contracts, intellectual
property, etc.
lending institutions will probably also require a copy of your
export strategy
10. Documentation
Export documents form a very important aspect of international
trade. It is usually true to say that without the correct documents
the exporter may not be paid and the importer may not be able to
take possession of the consignment. An understanding of the most
commonly used documents in international trade is essential for
successful export operation.
The most important export documents are:
Letter of Credit
A Letter of Credit (more properly called a documentary credit)
is an advice issued by the importers bank authorising payment of a
specified sum of money by a correspondent bank to a named
beneficiary upon delivery by the beneficiary of specified
documents. The internationally accepted rules for the use of
Letters of Credit are contained in "Uniform Customs and Practice
for Documentary Credits (commonly called UCP). Most Banks provide a
booklet which contains these rules.
Bill of Lading
This is probably the most important document in international
trade. It performs two completely separate functions. It defines
the contract between the exporter and the ship owners to carry the
goods from one named port to another. It is also the document of
title to the goods and as such is fully negotiable. Legitimate
transfer of the Bill of Lading effectively transfers ownership of
the goods from one party to another.
Air Waybill
In the case of dispatch by air performs roughly the same
function as a Bill of Lading with one notable exception. An Air
waybill is not fully negotiable, so passage of the cargo to an
importer is not dependent upon production of the original Air
waybill. Cargo will be delivered to the importer immediately it
arrives at the airport in the importers country.
Certificate of Origin
May be required for some destinations.
Bill of Exchange
In effect a Bill of Exchange is a demand for payment which the
exporter prepares and presents to the importer. The importer will
pay at sight or, if it is a term Bill, on the date it matures.
Certificates of Insurance
In a CIF contract, insurance is effected by the seller who will
usually be required to provide to the importer a certificate to
this effect.
THESE ARE THE BASIC INFORMATION , YOU SHOULD HAVE TO BE AN
EFFECTIVE INTERNATIONAL TRADE MANAGER IN AN EXPORTING FIRM.2.
Banking Management
Imagine yourself as the manager of a Bank where automation is to
be made. Explain the steps you will take to do it.
Following steps I will take as a Bank Manager to do Automation
in my Bank:
Today, money has evolved beyondphysical form, and can be
measured by
electronic pulses.
This electronic representation of money has made it easier to
progressively increase the use of information technology forbanking
operations.
Introduction of automation will liberate my bank from a lot of
paper-work.
* The first step would be to invite presentations from various
technology Companies which specialises in Bank Automation to become
our technology partner/ partners for setting up Automation in my
Bank .
* The Second step would be to choose from these Companies the
best technology partner/partners , who would provide cost effective
and efficient Automation System to my Bank .
Following are all the cases of transactions that involve
businesses and consumers who are either initiators or recipients,
are done:
B2B transactions are large-value, and recurring transactions,
while B2C are low-value, large-volume transactions. C2C
transactions are low-value and low-volume. Worldwide, B2C
transactions have come to the forefront due to high awareness
levels and, as in any other new development, prudence has prevailed
to test the waters with low-value transactions. However, the big
one is B2B, which is waiting to explode. As a Bank Manager ,I need
to capture all three streams.
I will have to create the field to achieve this, and achieve
some first-level requirements such as:
High levels of automation
Centralised database management and processing
Onlineconnectivity across delivery channels
Front-office and back-office integration
Surveillance and security Systems
Back-upsystems
Following would be the steps taken for creating Automation in
Bank :
Automation
Choosing a technology partner is very critical to achieve the
efficiencies derived out of automation such as low-processing
costs, better turnaround times, ability to handle excessive
volumes, zero-error rates, better customer deliveries and so
on.
Any bank embarking on such automation projects shouldask
thefollowing
questions and try to get answers for better clarity :
Is automation for :
Reducing back-office load?
Improving staff working conditions?
Improvingcustomer service?
Enhancing business levels?
Higher levels of automation decrease the load on the back-office
in accounting, reconciliation and so on, and there by set free
resources for enhancing business levels. While the evaluation has
to be clearly all of the above, each bank will need to look inward
at its priorities and accordingly select the right system being
open-ended, Web-enabled and scalable with the right functionality
is crucial.
As a Bank Manager my answers to all the above questions would be
Yes ( positive) for all . Hence Accordingly , I would choose my
Automation system which would provide all of the above 4 benefits
to my Bank.
Centralised database management and processing
The Internet clearly throws historical debates on centralisation
vs de-centrali
sation out of the window. We are now talking of the flow of
information and
transactions through the clouds where a de-centralised
environment is not conducive and hence there is a basic need to
take the centralised route.Thisrequiresbusiness process
re-engineering (BPR) and creation of centralized back-offices with
re-defined process-flows to/from branches. The basic organisational
structure needs to undergo radical changes with more emphasis on
empowerment at branches with centralised control.
Keeping above things in my mind , we would set up centralised
processing, through a hub-and-spoke concept, with regional
processing centres at the main metros, and a national processing
centre at one of our center.
Onlineconnectivity
There is a need to connect customers, front-offices,
back-offices and other
external agencies and determineaccess levelson a need-based
system (real-time, batch, dial-up and so on). Thisrequiresa huge
infrastructure to run alongside, and hence has to be carefully
thought through. With an increasingnumberof delivery channels such
as branches, ATMs, phones, the Internet and so on, the estimations
on volumes transacted through each of these channels play a vital
part in the determination of bandwidth to ensure acceptable
response times.
Through a combination of terrestrial lines, VSAT and ISDN, we
will achieve totalonlineconnectivity at our Bank, where all
branches and other channels we use access the centralised
database.
Front- and back-office integration
Workflowrequiresto be defined clearly with the over-riding
objective of cus-
tomer service, which should remain at the forefront. Processes
have to be transparent, and one has to set upcustomer
servicestandards, and service level agreements (SLAs) between
various internal groups with strong audit systems for service
quality.
Surveillance and security
All of the above will fall flat withoutonlinesurveillance and
security. Access-
control,authenticationand encryption mechanisms will be built
around each of the systems. Technology , including firewalls ,
private and public key
certifications and data encryption are available, and a
judiciously blended selection will be put in place, up-front. It is
not just enough to have the security set-up. Monitoring mechanisms
to tackle the hacker menace and on-going surveillance is a
must.
Back-upsystems
At this stage, when all of the above are running, the bank
becomes dependent on technology. What this means is that it cannot
do away with these systems and itrequiresa near-100 per cent
up-time for staying in business. Hence, the need to have
adequateback-upsystems and telecommunications, contingency
procedures during times of system un-availability, disaster
recovery sites and so on which we will put in place.
I will take all the above steps as a Bank Manager with the help
of my banks technology partner(s) for setting up above Automation
system for my Bank .
Apart from the above Automation System , I would choose
otherAutomation systemsavailable for better and efficient
productivity .
Let us see another problem faced by my bank and how i will solve
it usingAutomation systems:
Business Challenge :
My bank like many of other organization today face significant
challenges on providing continuous availability of its services for
the customers. In order to compete and provide differentiation from
the competitors my bank need to provide a fully automated fail-over
mechanism that eliminates outages as this represented a huge loss
in both revenue and customer trust. Service
interruptions examples such as if ATMs were not available,
customers cannot withdraw money from their bank account or if a CPU
was down, the affiliates are technically out of work. Without the
automated fail-over my bank would continue to serve clients but
there would be inherit risks by doing so without having a view of
the customers financial situation.
Solution :
I as a Bank Manager would choose Automation system like
Unicenter CA-OPS/MVS Event Management and Automation(CA-OPS/MVS) to
provide the automation for fail-over processing.
CA-OPS/MVS integration with Unicenter Automation Point and
Unicenter CA-Sysview will enable my bank to achieve continuous
availability with a high available processing environment.
Benefit :
My Bank with this high available environment will be able to
provide its customers with best in class serviceability. This
environment will also remove processing risks that were created in
past due to service interruptions like CPU failures.
Tangible Business Value ( with example ) :
My Bank for an example will use only 0.6% of its CPU resource
with Automation system like CA-OPS/MVS after its implementation
instead of 5% which is our resource consumption .
In particular with the CA-OPS/MVS Printerautomation
solutionafter its implementation in my bank , we will be able to
optimise manpower.
Now without Automation system , we need to work with 4 very
expensive printers and 3 groups of 9 people working manually
24h/24h on printing the generated outputs and reports, sorting
documents, activating new jobs, etc. The whole process is very slow
with printers being IDLE for long times. Each time a new job is
started, the printers needed a warm-up of 30 seconds per document,
Therefore the over 12.000 documents per day represent a huge
non-productive time.
But with implementation of this Automation solution , we will be
able to work with 2 printers and 2 groups of 4 people working from
6 to 19h in two shifts. We will be able to manage to print 400
pages continuously per minute; jobs will be launched in batches
without interruption and manual intervention. Documents will be
sorted automatically per destination and printer delays due to warm
up will be dramatically reduced to the strict minimum.
Hence , a bank Manager who is looking for Bank Automation should
choose the right Automation Solution available with various service
providers only after carefully checking and testing the Automation
systems to get optimum Results.
Similarly , as a Bank Manager I will also avail Automation
systems from various Automation service providers for :
1) Mortgage payment processing which would give my bank speed,
consistency and accuracy in processing payments, and reduce
overhead costs. This wiil add up to customer benefit , associate
benefit and share holder benefit .
Examples of some automated systems for Banks from a Service
provider :
a) MaxMilion Payments application for Mortgage payment
processing
b) Director, MSP, Passport, for core retail banking systems.
c) Enterprise Lending solutions such as Advanced Lending
Solutions(ALS) Servicing Manager for processing retail lending
accounts.
All of these are provided by Fidelity Solutions a Automation
Service provider which a Bank Manager like me can approach to get
the Automation done.
2) Automation of Accounting, Loan, Finance, Exchange management,
Treasury, Bond, Budget, Risk Management will be done by me for my
bank by using Automation system from any service provider that is
better than my Competitors and best for my bank for better
efficiency and productivitiy.
Hence , I will take all the above steps as a Manager of a Bank
to do Automation in my Bank.3. Information TechnologyHow will you
create an impact of Information Technology in your organization and
do international business?For many years, companies have devoted
more than half of their capital budgets to information technology,
and have acted under the simplistic assumption that improved
information results in increased productivity. The same companies
have not based their computer investments on careful calculations
of returns or added value, but rather on cultural and political
concerns. Successful information systems must focus more on
relationships and interaction than on the information itself.
Tomorrows strategic technology investments will present more
choices for organizations than they will know what to do with.
Companies will be able to set up the technology that best fits
their organization rather than the other way around. The value that
organizations gain from these investments will depend on the
foresight and intelligence that go into determining how their
people will use technology.There is a clich that goes something
like the following: If organizations only had greater quantities of
cheaper, faster, and more useful information, they could increase
their profitability and enhance their competitive positions in the
global marketplace, etc., etc. On the surface, that seems to make
sense. If you offer employees greater quantities of better
information more quickly and at a lower cost, you should reasonably
expect their performance to improve as a result.
Although in many situations where better performance resulted,
even the improved information access often had little or no impact
on peoples behavior. Most of us are aware of the risks of smoking.
Yet millions of people still pick up the habit. Though there should
be strong links between information and behavior in the enterprise,
the real problem most executives face isnt inadequate information,
its the organizations unwillingness to change behavior in the face
of good information.
On an industry-wide level (micro level), some companies get
strong returns on their digital technology investments. What seems
true, however, is that on a macro level more money has been wasted
on computerization than has been created.No one denies that
computerization and networking can add enormous value. But when we
look at the numbers, it is clear that companies are not basing
their computer investments on careful calculations of returns or
added value. Other factors such as culture, politics, fashion, and
competition also come into play. Best-practice methodologies often
are irrelevant benchmarks for many companies investing tens or
hundreds of millions of dollars in computers and networks.
Theres a fundamental difference between managing an information
system and running a business on information, just as theres a
difference between operating a rivet gun and making airplanes.
Managers intent on establishing technical systems subscribe to
different values and practices than managers trying to set up
productive business environments for their workers. Operating a
business on information has a much broader array of interaction and
interdependence than managing an information system.When managers
try to fit inflexible, mechanistic systems into organic contexts,
they need new vocabularies to explain how people in organizations
really use these systems.
Indeed, the word information loses its edge when redefined in
business contexts; culture and politics and relationships may
generally become at least as important.
Does the organization want to use its networks to centralize or
decentralize responsibility? Does the enterprise want to make every
bit of data accessible to everyone all the time? Or does it want to
build a new information-access hierarchy into its intranet? Should
individuals be rewarded for sharing information? Should people be
encouraged to strike up electronic relationships with employees in
other departments? Or should interdepartmental fraternization be
deemed an inappropriate use of the network? For now, these
rhetorical questions provide food for thought, however some of us
encounter them in our daily business lives.
Information technology (IT) is "the acquisition, processing,
storage and dissemination of vocal, pictorial, textual and
numerical information by a microelectronics-based combination of
computing and telecommunications". The term in its modern sense
first appeared in a 1958 article published in the Harvard Business
Review, in which authors Leavitt and Whisler commented that "the
new technology does not yet have a single established name. We
shall call it information technology."
The Indian information technology (IT) industry has played a key
role in putting India on the global map.
Over the past decade, the Indian IT-BPO sector has become the
countrys premier growth engine, crossing significant milestones in
terms of revenue growth, employment generation and value creation,
in addition to becoming the global brand ambassador for India
Modern" technology usually refers to the combination of
computers and communications devices which in the last several
decades have changed the way in which we handle information. These
changes are having a substantial impact on both the practice and
the law of international trade, notably in the use of electronic
documents to replace paper, the so-called electronic data
interchange (EDI). The same technology permits services to be
offered in remote locations which previously would have required a
substantial local presence.
EDI has been a "glamour" subject for the last few years, but
computers also have less visible and less discussed impact on
international trade. The science of robotics will continue to
change the way in which large cargoes can be handled and the way in
which large carriers may be operated. More refined models of stock
control, only possible with substantial computing facilities, will
continue to change the pattern of stock replacement and,
consequently, the pattern of stock movement and the international
trade in goods.
While this particular form of modern technology undoubtedly is
having its impact on both the practice and the law of international
trade, it is by no means the only "modern" technology exerting such
an influence. We can expect the value of trade in biological
products to increase as a proportion of the total value of world
trade. The use of cell technologies to produce monoclonal
antibodies and of genetic manipulation to produce new and more
profitable crops are but two examples of an industry with almost
unlimited trade potential.
IMPACTS OF INFORMATION TECHNOLOGY:
In the past few decades there has been a revolution in computing
and communications, and all indications are that technological
progress and use of information technology will continue at a rapid
pace. Accompanying and supporting the dramatic increases in the
power and use of new information technologies has been the
declining cost of communications as a result of both technological
improvements and increased competition. According to Moore's law
the processing power of microchips is doubling every 18 months.
Business Models, Commerce and Market Structure
One important way in which information technology is affecting
work is by reducing the importance of distance. In many industries,
the geographic distribution of work is changing significantly. For
instance, some software firms have found that they can overcome the
tight local market for software engineers by sending projects to
India or other nations where the wages are much lower. Furthermore,
such arrangements can take advantage of the time differences so
that critical projects can be worked on nearly around the clock.
Firms can outsource their manufacturing to other nations and rely
on telecommunications to keep marketing, R&D, and distribution
teams in close contact with the manufacturing groups. The
technology enables various types of work and employment to be
decoupled from one another.
Workplace and Labor Market
Computers and communication technologies allow individuals to
communicate with one another in ways complementary to traditional
face-to-face, telephonic, and written modes. They enable
collaborative work involving distributed communities of actors who
seldom, if ever, meet physically. These technologies utilize
communication infrastructures that are both global and always up,
thus enabling 24-hour activity and asynchronous as well as
synchronous interactions
among individuals, groups, and organizations. Social interaction
in organizations will be affected by use of computers and
communication technologies.
Business technology optimization
Business technology optimization or BTO is a procedure of
information technology management that helps in development of
business and reduces expenditure. BTO ensures that the money
invested in development and meeting production needs, resource
allocation and IT results in fulfillment of the business goals. The
resources and money spent on IT are allocated correctly by making
use of business technology optimization. The efficiency and
usefulness of IT can also be measured through BTO.
Business technology optimization can be best classified as a
software product. BTO enhances to the maximum the strategic
functions that exist between business and technology. IT is very
important in terms of bringing improvements to business and the
functions and nuances of information technology can be best managed
through BTO. To state a few of the functions of BTO helps in
testing new distributions of SAP, portfolio management, project
management, bringing down the time required in repairing custom
J2EE applications.
Some of the functions of BTO software are as follows:
Data center management
Systems management
Application management
Performance, availability and quality of application
Change management
Project portfolio management
IT governance
BTO helps in finding out the efficiency with which the IT
systems used in business are working. Profit maximization is
another of the important aims of business technology optimization.
The business requirements should be brought in line with
technology.
Some of the companies selling BTO softwares are as follows:
BMC Software
IBM Software
Compuware
CA
HP
Whittman Hart
Sun Microsystems
Borland
Business technology optimization creates value for IT
investments. In the enterprise testing stage, BTO helps in quality
improvement and cost reduction. In the product tuning stage, BTO
optimizes performance of applications and reduces costs. In the
performance management stage, it helps in improving levels of
service, resolution of speed problems. The good companies use
business technology optimization in order to bring about permanent
improvements to business.
A recent survey of United States manufacturers asked what they
thought were the most important attributes an agent must possess to
succeed. "Technical product knowledge" was most valuable while
"Internet marketing capabilities," With the advantages of IT for
the manufacturer, the agent and the foreign buyer, advocacy and
praise of comprehensive technical product knowledge is misplaced
and takes us in the wrong direction. Surveys such as the one cited
here not only reflect the current sentiments of the people, but
also perpetuate similarities and traits that make it easier for us
to identify those people and companies that we want to be
commercially associated with.
It is no wonder that most manufacturers are unaware of this fact
- what little literature there is on the subject is not readily
available. Thus, with a principal's preconceptions fixed in a
pre-IT world, they do not grasp the convergence of IT with rep
agencies that combine this technology and international experience.
As a result, they will have a difficult time working from the same
set of assumptions about how to conduct business internationally.
IT is a miraculous tool. As Copernicus, the 16th century
astronomer, posthumously demonstrated, evolving knowledge
inevitably trumps conventional thought. And keep in mind that this
is the same type of conventional thinking that is producing our
gargantuan trade deficits. The current conceit might be that the
world economy will always revolve around the United States and we
can remain satiated indefinitely with just our home marketplace.
Knowing that this thinking is not sustainable should help in
forcing us to reappraise those things that can facilitate more
exports of domestic products to our international partners.
In the continental United States, the logistics of a
manufacturers' representative calling on customers to explain their
line (s) of products in their limited geographic area mostly
precludes the need for Internet marketing. But internationally,
when one factors in eight to 16 time zone differences on multiple
continents, IT inverts the above scoring of attributes. Mindful of
the obvious impracticality of traveling in person to see multiple
customers in far-flung locales, I have formed some guidelines
concerning what lines to take on and how to interact with
manufacturers:
- Category Creators - Take on lines from companies that are
making unique products. These lines, if they are highly
differentiated and easy to understand through your client's Web
site, give your foreign customer an immediate marketing advantage
in his country and make unnecessary the need for a high degree of
technical product knowledge.
- Joint Selling - If you must take on a unique but highly
technical product, make sure you work out an ongoing technical
assistance arrangement with your manufacturer.
- Gradualism: Domesticating the Process of International
Trade
For those principals that are still uncomfortable working with
overseas customers, start by selling to the United States buying
offices of your foreign buyers. It is always interesting how many
client manufacturers are surprised that many international buyers
are located in North America.
Wave the Flag - Make sure your contract with manufacturers
spells out that you do not want information relating to detailed
product cost, production process methods or confidential business
strategies. With the end of the Cold War, there has been a shift
from the threat of ICBMs to economic warfare. Given the reality of
industrial espionage, even amongst our own allies, by purposely
keeping your company separate from the highly sensitive information
of your principal, you demonstrate foresight that you have your
client's best interests in mind.
- Wave Them In - The "them" is the FBI and the National
Counterintelligence Center (NACIC). The FBI can consult with your
clients about protection of sensitive data, and the NACIC posts
advisories that can heighten their overall awareness of possible
risks. Combined, this step and the previous one will help them feet
more confident that they can proceed in the export process.
- Wave Goodbye - If it becomes obvious during your meeting(s)
with the manufacturer that they do not have the drive or the intent
to create the infrastructure necessary for export, then Opt Out.
You will be doing everyone a favor, especially your valued overseas
buyers who have surmised that part of the agent's job is the
vetting of unreliable suppliers.
Now that the attributes and traits of international
manufacturers' representatives, vis-a-vis domestic representatives,
have been somewhat scrambled, I want to point out how international
agencies might fall under a new classification. If under the
current taxonomy, domestic manufacturers' representatives are a
"species," then international manufacturers' representative
agencies, as a "subspecies," might best be named "International
Information Brokers" (IIB). Besides selling the manufacturer's
products or services to foreign buyers, what greatly distinguishes
the IIB is: They have developed the skills for the remote retrieval
of information and the organization of that information for
manufacturers that desire to sell internationally. Though hazy and
vague to those not familiar with the process, in the hands of an
IIB, resources are accessible from an ever-widening variety of
sources.
Although in the dynamic of the Internet there is great flux,
currently there are about 12,500 databases (most of them "user--
unfriendly") and close to 2,400 online systems that can be plowed
through. And that is only a part of what the 1113 might have to
traverse. When one factors in data from the consulates, trade
associations, chambers of commerce, government officials, college
professors, writers, international trade lawyers, statistics,
lists, reports, CD,ROMs, press releases, trade journals, specialty
magazines, Encyclopedias of Associations, USA government
publications on trade, United Nations agreements, Trade Block
agreements, a smattering of non-governmental organizations, it
becomes clear how an IIB can - as an outsourced specialist - add
value to the whole process of international sales.
With intimate access to this type of information, here are the
attributes that an IIB can offer manufacturers who want to sell
into foreign markets:
- Internet marketing capabilities
- Consultative international selling capabilities
- Niche market specialization in overseas markets
- Intelligence gathering
- Helping manufacturers clearly define exporting goals
- Training of manufacturer's international department
- Setting up industry specific email and fax subscriptions
- Selling to foreign governments
- Working in conjunction with the United States government
- Straight, fee-based international marketing research
While international trade rules have been greatly liberalized in
the last 14 years, this great transfer of wealth to other countries
is only in small measure making its way back to the United States
in exchange for our exports. It is an embarrassing cultural irony
that the United States, the land of immigrants, is being labeled by
some of our foreign competitors as not having any great enthusiasm
to go after and interact with foreign customers. (We can go to the
moon, but start talking Istanbul and we cannot seem to find the
budget.) As cyclical booms flatten out and growth slows, domestic
sales in and of themselves fail to be the plasma that circulates to
all parts of our economic system. The United States government
knows this and that is why they spend so much time getting the word
out to manufacturers about not only the potential benefits for
their own company's bottom line, but the very real overall economic
benefits for our country as a whole.
The mainstream popularity of the Internet, an American
invention, formerly the province of only the military, academia and
industry, gives both manufacturers and manufacturers'
representatives, through IT, an incredible tool to establish a
presence in the worldwide marketplace. In the hands of specialized
agents, working with forward thinking manufacturers, exporting, if
not necessarily an act of citizenship, is a means of sustaining the
viability of our nation as a whole. The primacy of all customers,
regardless of location, can become actual with information
technology. And it is none too soon. There is no denying the
long-term impact on our country because of our collective
squandering of trade opportunities. The terrain must be decoded -
just as our foreign partners are assiduously decoding the United
States marketplace.
Because of the enormous trade surplus that the Japanese economy
was building LIP with its worldwide trading partners up until the
mid- 1980s, and to better reflect the overall strength of the
Japanese economy, the leading economic countries (then known as the
G-5, now known as the G-8) signed the Plaza Accord in New York City
in 1985 to raise the value of the yen against the U.S. dollar and
other major currencies. The result: the United States dollar lost
value that slowly but surely made us, as a country, a competitively
priced exporter. But something has gone wrong. As the numbers below
show, even though the U.S. Department of Commerce is assisting U.S.
companies, the German and Japanese exporting communities are
significantly more focused and efficient in exporting their
countries' finished products.
Some general comments on the impact of technology
The introduction of any new technology in international trade
will have some legal consequences. Most technologies will offer new
opportunities for the erection of non-tariff trade barriers. Most
technologies are expensive in the short term, thereby widening the
gap between rich and poor nations, and most technologies have some
impact on the social and economic structure of the receiving
country.
NEW OPPORTUNITIES FOR NON-TARIFF BARRIERS
Standards
The use of local standards as a non-tariff barrier to
international trade in both goods and services is hardly a new
phenomenon. Developments in "modern" technology will merely provide
new opportunities for old practices.
Security concerns
With modern communications networks, it will make little
operational difference where data is held. A terminal on a desk in
Sydney may be displaying and manipulating data held on a computer
in North America. However, if the data is perceived to be important
or sensitive, then law makers and commercial interests might find
that there are reasons why the data should be retained in local
computers. The argument is often phrased in terms of data security
or data integrity.
So, for example, when the Australian state of New South Wales
was considering the establishment of a computerised legal
information retrieval system, one of its design and tendering
criteria was that the database be located in New South Wales. The
stated reason was a form of the "security" argument: the NSW court
system depends upon the integrity of the reported case and the
state cannot put itself into a position where it might be held to
ransom by a foreign power.
Information flow restrictions
It is sometimes said that one effect of modern communications
technology is that poorer countries export data and import
information. This is a clever way of noting that raw data may be
sent cheaply to developed countries for processing in large data
processing centres. The technology and the data processing jobs
remain in the developed country and there is a net transfer of
wealth to the developed country.
An Example of this phenomenon would be the processing of payroll
and other employment data by large multinational employers. Another
example might be the processing of credit card data by the large
credit card organisations. The matter is considered to be serious
enough that several countries have legislated against the export of
data. India has had several confrontations with IBM over equity in
the Indian subsidiaries.[22]Brazil has attempted to deal with the
information flow problem by restrictive legislation which calls for
data processing to be done locally if possible.
Impact on Service Transactions
The modern communications technology permits many services to be
performed at a distance which previously required face to face
consultations. It is useful to classify the service transactions
according to whether they are professional or non-professional
services. The provision of in-house management services is a
further special case.
NON-PROFESSIONAL SERVICES
Non-professional services are characterised by the relative
absence of formalised barriers to entry in the target country.
These services would include the traditional data processing
services as well as more specialised and sensitive data processing
such as credit records.
The legal problems posed by these kind of services are likely to
be related to the desire of the target country to control the flow
of data across borders. This might be motivated by concern for
privacy of its citizens, by a desire to control information about
the government and culture of the country or solely as a means of
restricting competition with local service providers.
These are political motivations and will require political
solutions. Generally speaking, third world countries have assumed a
position of guarding information while western countries have
argued for a regime of free information flow.[29]PROFESSIONAL
SERVICES
The provision of professional services such as legal services,
accounting services, banking and some financial services is
characterised by restrictions on entry in the target country. What
training and examination must the foreign professional undergo
before being permitted to provide the local services? What local
services must be a part of every transaction?
Again, these problems raise no significant legal problems as
such. The problem is one of negotiation with an aim of ensuring
that the requirements reflect real training needs rather than
merely being a protectionist form of non-tariff trade barrier.
CENTRALISED MANAGEMENT
One of the less visible forms of trade in services is the
multinational company which is now able to move more of its local
management to the home office. In the past these management
services necessarily were provided by the local population, or at
least by foreigners who were living locally, modern communication
systems have made it possible to remove that function. The result
is that there is less local employment, but even worse is that the
training which resulted from that participation is also lost. Local
issues may well be given less importance when the management
decisions are made by those who only hear about the issues rather
than actually experience them. This problem is a part of the
general problem of technology transfer, and it will require
solution by political means.
Impact on Sales Transactions
In contrast with the problems of service transactions, most of
the problems caused by modern technology in the sales area are more
traditional legal problems. Most of the problems have more clearly
defined strategies for solution.
EDI
An well-known American study of some years ago found that the
costs of paper shuffling amounted to as much as 20% of the FOB
price of goods in an international transaction. It is obvious that
a reduction of this figure by even a few percentage points would
result in very large dollar value savings. The replacement of paper
by computer-to-computer communication is seen as a possible method
for reducing these costs. The result is known variously as
"electronic trading", "computer assisted trading" or "electronic
data interchange". In keeping with the modern trend to assign an
acronym to every conceivable phrase, the latter expression has
become EDI.
In order to realise its full potential, there are some legal
issues which must be addressed. There are two general methods for
attacking these problems.[31]The first would be to redesign the
legal rules to accommodate electronic messages. An example of this
is to redefine the rules which call for a bill of lading, replacing
them with rules which call for an electronic message in some form.
This general approach calls for relatively dramatic changes in the
legal regime, but does not require agreement concerning the
technical form of messages.
The second general approach is to retain the legal rules (with
minor adjustments) but to find technical solutions to the
"deficiencies" of electronic messages. An example of this is the
use of cryptographic methods to ensure the integrity of the message
and to provide for "electronic signatures". This second approach
requires minimal change in the legal rules, but does require
agreement on technical standards which will satisfy existing
rules.
LEGAL PROBLEMS OF EDI
Either approach requires the identification of the problems
which are caused by the replacement of written messages by
electronic messages. A useful approach to the taxonomy of EDI legal
problems is to identify the nature of the message.[32]So, as
mentioned above, certain messages have little or no legal content
and so probably cause no legal problem at all.
When the message is intended to have legal consequences, usually
contractual consequences, then there are certain problems which
relate to the legal requirements of writing and evidence. When the
message is intended to result in the transfer of property or other
rights, then additional problems arise which relate to the
uniqueness of the corresponding piece of paper.
Problems common to all edi contracts
The mere fact that there is no "document" and no "writing" in
any common usages of the terms can pose problems in those
circumstances where the law has imposed formality requirements. It
may be that these problems can be solved in some instances by
creative statutory interpretation, but in many cases nothing other
than a statutory revision will resolve the issue.
Similarly, the formality of requiring a "signature" will be
impossible to meet in an electronic message. Note that the legal
requirement of a signature usually serves two related but
distinctive purposes. The signature is used to identify the person
who is agreeing to the contract, and it serves to indicate that the
person has agreed to the contents of the document. Both of these
functions cause problems in the EDI context.
EDI replacements for paper documents also cause problems for the
laws of evidence. Most jurisdictions have some means of introducing
"documentary" evidence, but the rules are ordinarily formulated in
terms which clearly contemplate paper documents. Here the challenge
is to introduce rules which allow the admission of electronic
"documents" while providing methods of proving those documents
which will allow reasonable confidence in their accuracy. Most
jurisdictions now have rules which allow the introduction of
"computer evidence".
Another evidenciary problem is the requirement for "original"
documents to be produced in certain circumstances. The original
document requirement is a sensible corollary of the "best evidence"
rule that obtains in many jurisdictions, but it is a meaningless
requirement when the "document" is an EDI message.
Contracts which transfer ownership or control
The EDI problems discussed above probably have relatively simple
solutions, although clearly compromises will be made. However, when
we turn to contracts which transfer ownership or control of goods
or which transfer debts or other contractual obligations, new and
substantially more difficult problems arise.
There are several paradigms which illustrate the nature of the
problems. The bill of lading serves as a document of title and
evidence of the transferable contract of carriage. The detailed
contents of the document are legally important, and it is vital
that illicit changes should not go undetected. But it is equally
important that there is only one original since possession of the
document confers rights.
Similarly, a bill of exchange serves as a document which
evidences contracts of debt and which itself serves as an
instrument to transfer those debts. Again, it is vitally important
to the operation of the bill that changes can be easily detected.
And again, it is important that there be an original since
possession of the paper confers important legal rights.
Conclusion
The ongoing computing and communications revolution has numerous
economic and social impacts on modern society and requires serious
social science investigation in order to manage its risks and
dangers. Such work would be valuable for both social policy and
technology design.
Decisions have to be taken carefully. Many choices being made
now will be costly or difficult to modify in the future.
.Manufacturers who stay awake to the potential of Information
Technology (IT) and the manufacturers' representatives who use IT
to find and sell to international customers. In order to do this,
we have to start with the very perception that manufacturers have
regarding manufacturers' representative attributes.
4. Perspective Management
Which are the aspects you will keep in mind about the
perspective of management to be an effective Strategic Manager in
an industry?
FOLLOWING ARE THE VITAL ASPECTS WHICH I WILL KEEP IN MIND ABOUT
THE PERSPECTIVE OF MANAGEMENT TO BE AN EFFECTIVE STRATEGIC MANAGER
IN AN INDUSTRY
1 . Planning:
Managers are responsible for the efficient Use of organizational
resources including People, plant , equipment and supplies .The
effective use of such resources Requires managers to devise
communicate implement and monitor Plans to achieve organizational
aims and objectives.
Following should be kept in mind :
A.Developing plans
Prioritising and organizing work activities in line with
organizational aims and objectives.
B.Monitoringperformance
Monitoring and reviewing performance against organizational aims
and objectives.
C.Focusing on results
Maintaining a focus on achieving organizational aims and
objectives
D.Managing change
Planning for and implementing change to achieve organizational
aims and objectives
E.Managingimprovement
Taking action to improveperformanceby acting onthe lessonsfrom
past successes and failures
2. Communication :
The principles and processes of effective
communicationunderpinthe role of the manager. Managers need to be
able to communicate effectively with a range of people, including
team members, colleagues, line managers, customers and suppliers.
It is important that managers are able to organise, present and
communicate their views, ideas and plans according to the needs of
the people with whom they interact.
Following should be kept in mind :
A.Explaining clearly
Presenting ideas, plans and problems in ways that promote
understanding .
B.Influencing others
Presenting views and opinions clearly and positively to others,
resulting in agreement and consensus .
C.Resolving conflict
Understanding the problems and concerns of others and working
towards an appropriate resolution.
D.Listening
Seeking and listening to the views and opinions of others.
3. Team-working :
Managers achieve organisational aims and objectives through the
work of other people and in particular teams. Setting up and
managing effective teams requires managers to inspire and motivate
team members, ensuring that everyone understands what the team is
trying to achieve.
Following should be kept in mind :
A.Building teams
Involving team members in planning and organising their work to
meet team objectives
B.Leading teams
Providing teams with a clear understanding of their purpose and
objectives
C.Encouraging team-working
Minimising conflict and problems to enable the team to
perform
D.Representing teams
Presenting a positive image of the team.
4. Leadership :
Managers are leaders of people and need to inspire commitment
and enthusiasm in others in order to achieve organisational aims
and objectives. To be effective, managers need to build
strongworking relationshipswhich means providing clear guidance and
direction, acting as a role model and respecting the views and
opinions of others.
Following should be kept in mind :
A. Leading by example
Acting as a role model for others
B. Providing guidance
Providing support and advice to others in order to enable the
achievement of organisational aims and objectives
C. Motivating others
Enthusing, and gaining the commitment of others todecisionsand
plans.
D.Building trustand respect
Maintaining confidences and honouring commitments and promises
made to others.
E. Leadership style
Usingdifferent leadership stylesaccording to the needs of people
and situations.
F. Communication
Ensuring people are aware of and fully understand plans
anddecisions.
G. Resolving conflict
Understanding the problems and concerns of others and working
towards an appropriate resolution.
5.Personal effectiveness:
Personal effectiveness enables to achieve results and meeting
personal and organisational objectives. Managers are literally
faced with hundreds ofdecisionsto make every day: choices about how
to prioritise activities, how to allocate their time and how to
communicate and present their plans and opinions to others. An
important part of improving personal effectiveness is recognising
and addressing personal development needs.
Following should be kept in mind :
A. Acting assertively
Presenting views and opinions clearly and taking responsibility
for initiating action
B.Managing time
Maximising the use of time to achieve aims and objectives
C. Developing self
Improving personalperformanceand skills by recognizing
weaknesses and areas forimprovement
D. Decision-making
Obtaining and analysing accurate information in order to make
effectivedecisions.
6. Managing people:
Managing and developing people is perhaps the hardest part of
management. Managers must be able to agree clear, measurable
objectives, manage theperformanceof both individuals and teams and
provide regular and constructive feedback on theirperformance.
Managers must provide timely and appropriate support for people,
ensuring that they possess the right knowledge and skills to
achieve their objectives.
Following should be kept in mind :
A. Setting objectives
Negotiating individual and team objectives which are challenging
and achievable
B. Managingperformance
Reviewing individual and team performance to ensure that
objectives are achieved
C. Developing others
Helping others to improve their knowledge and skills in order to
achieve their objectives
D. Providing feedback
Giving individuals and teams constructive feedback designed to
improveperformance.
7. Managing Change:
Managers are increasingly required to not only manage, but to
initiate organisational change. Managers need to be able to gain
peoples commitment to change, plan and implement change and to
monitor the impact of change in relation to the organisations aims
and objectives.
Following should be kept in mind :
A. Leading change
Identifying the need for change to achieve organizational aims
and objectives
B.Planning change
Preparing plans to implement change programmes
C.Implementing change
Putting into practice a strategy and plans to achieve change
D.Monitoring change
Reviewing progress against change plans
8.Managing projects:
All managers manage projects whether they are large or small,
short-term or long-term.Project managementinvolves developing and
agreeing a project plan and monitoring and controlling the
implementation of and changes to the project plan to achieve the
projects Outcomes.
Following should be kept in mind :
A.Project planning
Determining the scope of the project and its outcomes and the
required resources and critical time lines
B.Project implementation
Managing the resources to achieve the projects outcomes on time
and on budget
C.Managing projectprogress
Monitoring project progress and adjusting the project plan as
required to achieve project outcomes .
D.Managing projectclosure
Confirming satisfactory project completion and identifyingthe
lessonsthat can be learned for the future
9. ServicePerformance:
Managers need to deliver service levels as set out in their
organisations plans and strategy. Effective planning
andperformancemanagement combined with a strategy of
continuousimprovementenables managers and organisations to
consistently satisfy and exceed the needs of customers both
external and internal.
Following should be kept in mind :
A. Developing plans
Prioritising and organising work activities in line with
organisational aims and objectives
B.Monitoringperformance
Monitoring and reviewingperformanceagainst organisational aims
and objectives
C. Managingperformance
Reviewing individual and teamperformanceto ensure that
objectives are achieved
D.Managingimprovement
Taking action to improveperformanceby acting onthe lessonsfrom
past successes
10.Developing people:
Managers deliver organisational aims and objectives through the
achievements of the people they manage. To be effective, people
need to have clear objectives and a sense of direction and the
knowledge, skills and confidence to perform. The role of the
manager in developing people is more important now than at any time
in the past; managers need to be developers of people.
Following should be kept in mind :
A.Setting objectives
Negotiating individual and team objectives which are challenging
and achievable
B.Managing learning
Creating a supportive learning environment where people can
develop new skills and confidence
C.Performance coaching
Building confidence levels, knowledge and skills through
one-to-one coaching
D.Providing feedback
Giving individuals and teams constructive feedback designed to
improve performance
11.Customer Focus:
Managers need to be customer focused in order to deliver the
level of service and performance that is required of their
organisation and team. Customer service requires an understanding
of the needs of both internal and external customers, taking action
to meet customer needs and implementing strategies to improve
customer service levels.
Following should be kept in mind :
A. Understanding customer needs
Identifying the needs of both internal and external customers
.
B.Meeting customer needs
Addressing customers needs by taking action.
C. Resolving customer issues
Taking responsibility for investigating and resolving customer
issues
D. Improving customer service
Identifying and implementing strategies to improve customer
service
ABOVE GIVEN ASPECTS I WILL KEEP IN MIND ABOUT THE PERSPECTIVE OF
MANAGEMENT TO BE AN EFFECTIVE STRATEGIC MANAGER IN AN INDUSTRY.
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