INDIAN ETHOS AND VALUES

BY
M.RAJKUMAR,MBA

MASTER OF BUSINESS ADMINISTRATION ANNAMALAI UNIVERSITY

Unit-1
INTRODUCTION
Ethos is a Greek word originally meaning accustomed place or character and is used to describe the guiding beliefs or ideals that characterize a community, nation or ideology. Oxford defines ethos as the characteristic spirit and beliefs of community/people which distinguishes one culture from the other.

FEATURES OF INDIAN ETHOS:

Based on the two Universal Truths, every Indian believes the God or the Supreme Power is in everybody and everything in interconnected at a deeper level. The basic unity of life cannot be bro en. !ove and sacrifice therefore emerge as the only means for a meaningful living. Based on this holistic vision, Indian have developed the wor ethos of life, where they feel all wor , physical or mental, managerial or administrative, has to be directed towards a single purpose. "ivinity of a human being is not merely a notion but a truth that can be e#perienced in the stillness of the mind. Between is the eynote of Indian ethos. $e have a synthesis, a harmony between the dual concepts. The individual or %self& is the central focus. The divine element in the individual is only a portion of the universal or cosmic consciousness. !ays great emphasis on values. Is based on Indian scriptures that provide eternal nowledge. Belief that all wor is worthy and honorable. 'mphasis on duties and responsibilities. "eals with two types of nowledge

PRINCIPLES OF INDIAN ETHOS

1) Know Yourself: Who are you? All of us are part of supreme power (GOD) & hence all of us have all the divine qualities like inte rity! patience! coura e! loyalty! for iveness! service attitude i"e" mind so if you try to develop our self #y improvin our qualities we will not only make our self$happy #ut also the society #e live in" 2) Ind ! du"l de!elo#$en%% &) Self'("n")e$en% * Self De!elo#$en%: &elf$mana ement is voluntary i"e" has to #e done on your own 'ahatma Gandhi says several thin s destroy us (

)"* Wealth Without Work + ,"* -leasure without.onvenience+ /"* 0nowled e without .haracter + i"e" 0nowled e without politeness 1" * .ommerce Without 'orality + 2" *&cience without 3umanity+ &cience #ut employment is ettin slower i"e" less vacancy due to modern technolo y i"e" less num#er of workers" 4" *5eli ion without &acrifice+ i"e" provides charity or do nation *-olitics without -rinciples+ for e6ample fi ht for votin 7s etc" 8f we et rid of all this qualities we can mana e our self +) Hol s% , A##ro",- To L fe: We should #ehave in same way of manner which we e6pect from others" 9fficiency & effectiveness in an or ani:ation will increase only when there is co$operation team spirit & positive ener y in employees" .) Sewer Or Ser! ,e A%% %ude: ;have happy face i"e" smile on face"e % or ani:ation should #e service oriented & not profit oriented! provide #est possi#le service to your entire customer" *Where the mind is without fear+ ( 5avindranath <a ore" /) Self S",r f ,e: &elf sacrifice refers to sacrifice of self e o" We should #e ready to sacrifice for others" 0) Te"$ S# r %: <reat work as =A>?A ( to ether i"e" <$ <o ether 9$ 9veryone! A$ Achieves! '$ 'ore" 1) Presen% (o$en%: <hink only a#out a) What is there in front of you at present? #) We cannot chan e the past or predict future" c) &o have total focus & dedication present in situation" d) Do not take unnecessary stress of work! take it as a play" 2) Perfe,% on In 3or4: @ha wad Gita emphasi:es on while doin your present duty we should use our Aud ment & perform with utmost concentration" Do work without e6pectin what will #e the result" *Do the works for the sake of your or ani:ation result will follow automatically+ 15) Self (o% !"% on%

?o one can encoura e us for lon " ?o#ody can encoura e us more than our self" *Work should #e worship+" 8f we love the work we do it will #rin happiness & effectiveness" *Do what you love to do a& love what you are doin + 11) Ends Do No% 6us% f7 (e"ns: -rocess to achieve ends what you earn does not tell how you earn" While earnin a profit a #usiness man should #e careful that he follows the ethics & does not harm to the ri hts to stakeholders" 12) Cre"%or * Cre"% on: .reator is &u#Aective .reation is O#Aective 9thics & values are su#Aective quality i"e" <hey cannot #e seen #ut felt" 8nputs & resources required for production are O#Aective i"e" they can #e seen or felt" 8f mana ement pays attention to #oth this quality & mi6es them properly it would #e #est form of mana ement" 1&) D"7 To D"7 A 8"l"n,e L fe: 8ndian #elieves in spiritual power" &pirituality helps us to treat everyone equally! respect! love them and understand the" 8ndia hence there is a fine #lend of spirituality with materialism" @ha wad Gita says *Attachment is the root cause of all the pro#lems+ 1+) 8l ss 9A$"nd"): H"## ness of Soul" One should #e equanimous i"e" accept pleasure and pain Aoys and sorrows is a part of life" Dharma ( 5i ht Artha ( 'oney 0ama ( Work 'oksha ( Breedom <hese are 1 -urusharthas of life" @ut while searchin for Artha&kama one should #e careful" Bollow dharma (ri htness) so that he can attain moksha (freedom from any salvation) which will make him #lissful 1.) D )n %7 of 3or4: Di nity of work is much important as far as 8ndian ethos is concerned" ?o work is reat or small" 9ach work whether it is a peon7s Ao# or General 'ana er7s Ao#! is of equal importance! worthy & honora#le" 8t lays stress on *&arva#hutasthaAtmanam&arva#hutani.hatmani+ which means to treat all as equals"

MANAGEMENT GUIDELINES FROM THE BHAGAVAD GITA

One of the reatest contri#utions of 8ndia to the world is @ha wad Gita which is considered to #e one of the first revelations from God" 8t is the essence of Cpanishads and a complete uide to practical life" 8t provides Dall that is needed to raise the consciousness of man to the hi hest possi#le level"D <o motivate ArAuna! who ot mentally distur#ed upon seein those near and dear ones whom he had to kill in the war of 0urukshetra! Eord 0rishna told him to perform his duty" 8n the ei hteen chapters of @ha wad Gita! one discovers wonderful mana ement uidelines which are applica#le even today" <he eneral principles of effective mana ement can #e applied in every field the differences #ein mainly in the application than in principles" A ain! effective mana ement is not limited in its application only to #usiness or industrial enterprises #ut to all or ani:ations where the aim is to reach a iven oal throu h a .hief 96ecutive or a 'ana er with the help of a roup of workers" T-e ("n")er:s fun,% ons ,"n ;e ;r efl7 su$$ed u# "s under: Bormin a vision and plannin the strate y to reali:e such vision" .ultivatin the art of leadership" 9sta#lishin or ani:ation" institutional e6cellence and #uildin an innovative

Developin human resources" .ommunication and <eam 'ana ement" 'otivation! Dele ation! Appraisals" <akin corrective steps when called for"

<hus 'ana ement is a process of ali nin people in search of e6cellence ensurin their commitment for the corporate oal" <he critical question in every 'ana erFs mind is how to #e effective in his Ao#" @ha avad Gita su ests Fone should always try to mana e oneselfF" <he 'ana er must reach a level of e6cellence and effectiveness which sets him apart from those whom he is mana in ! he must #e an achiever" 8n this conte6t the @ha avad Gita enli htens us on all mana erial techniques that lead to a harmonious and #alanced state overcomin conflicts and contradictions which lead to lower efficiency productivity! a#sence of motivation and lack of work culture"

'ost of the mana ement concepts like vision! leadership! motivation! e6cellence in work! oal seekin ! work ethics! nature of individual! decision makin ! plannin etc"! are discussed in the @ha avad Gita" <he ideas contained in the @ha avad Gita tackle the issues from the rass roots level of human thinkin as a ainst the typical Western thou hts on mana ement which tend to deal with the pro#lems at superficial! material! e6ternal and peripheral levels"

BHAGAVAD GITA AND MANAGERIAL EFFECTIVENESS

?ow let us re$e6amine some of the modern mana ement concepts in the li ht of the @ha avad Gita which is a primer of mana ement #y values" 1) <% l ="% on of A!" l";le Resour,es <he first lesson in the mana ement science is to choose wisely and utili:e optimally the scarce resources if one has to succeed in his venture" Durin the curtain raiser #efore the 'aha#harata War Duryodhana chose &ri 0rishnaFs lar e army for his help while ArAuna selected &ri 0rishnaFs wisdom for his support" <his episode ives us a clue as to who is an 9ffective 'ana er" 2) A%% %ude Tow"rds 3or4 <hree stone$cutters were en a ed in erectin a temple" As usual a 3"5"D" .onsultant asked them what they were doin " <he response of the three workers to this innocent$lookin question is illuminatin " F8 am a poor man" 8 have to maintain my family" 8 am makin a livin here!F said the first stone$cutter with a deAected face" FWell! 8 work #ecause 8 want to show that 8 am the #est stone$cutter in the country!F said the second one with a sense of pride" FOh! 8 want to #uild the most #eautiful temple in the country!F said the third one with a visionary leam" <heir Ao#s were identical #ut their perspectives were different" What Gita tells us is to develop the visionary perspective in the work we do" 8t tells us to develop a sense of lar er vision in oneFs work for the common ood"

&) 3or4 Co$$ %$en% <he popular verse ,"1G of the Gita advises *detachment+ from the fruits or results of actions performed in the course of oneFs duty" @ein dedicated work has to mean *workin for the sake of work! eneratin e6cellence for its own sake"+

One of the main reasons for non$attachment to results is #ecause workin s of the world are not desi ned to positively respond to our calculations and hence e6pected fruits may not always #e forthcomin " &o! the Gita tells us not to mort a e the present commitment to an uncertain future" 8f we are not a#le to measure up to this hei ht! then surly the fault lies with us and not with the teachin " &ome people ar ue that #ein unattached to the consequences of oneFs action would make one un$accounta#le as accounta#ility is a much touted word these days with the vi ilance department sittin on our shoulders" 3owever! we have to understand that the entire second chapter has arisen as a sequel to the temporarily lost sense of accounta#ility on the part of ArAuna in the first chapter of the Gita in performin his swadharma" @ha avad Gita discusses in reat details the theory of cause and effect! makin the doer responsi#le for the consequences of his deeds" <he Gita! while advisin detachment from the avarice of selfish ains #y dischar in oneFs accepted duty! does not a#solve any#ody of the consequences arisin from dischar e of his responsi#ilities" &tress mana ement principles are descri#ed in details in several verses actin as a #rilliant uide to the operatin 'ana er for psycholo ical ener y conservation and avoidance of #urn$outs in the work situations" <hus the #est means for effective work performance is to #ecome the work itself" Attainin this state of nishkama karma is the ri ht attitude to work #ecause it prevents the e o! the mind from dissipation throu h speculation on future ains or losses" 8t has #een presumed for lon that satisfyin lower needs of a worker like adequate food! clothin and shelter! reco nition! appreciation! status! personality development etc are the key factors in the motivational theory of personnel mana ement" 8t is the common e6perience that the spirit of rievances from the clerk to the Director is identical and only their scales and composition vary" 8t should have #een that once the lower$order needs are more than satisfied! the Director should have no pro#lem in optimi:in his contri#ution to the or ani:ation" @ut more often than not! it does not happen like thatH the ea le soars hi h #ut keeps its eyes firmly fi6ed on the dead animal #elow" On the contrary a lowly paid school teacher! a self$employed artisan! ordinary artistes demonstrate hi her levels of self$ reali:ation despite poor satisfaction of their lower$ order needs" <his situation is e6plained #y the theory of Self-transcendence or Self-realization propounded in the Gita" &elf$transcendence is overcomin insupera#le o#stacles in oneFs path" 8t involves renouncin e oism! puttin others #efore oneself! team work! di nity! sharin ! co$ operation! harmony! trust! sacrificin lower needs for hi her oals! seein others in you and yourself in others etc" <he portrait of a self$reali:in

person is that he is a man who aims at his own position and underrates everythin else" On the other hand the &elf$transcenders are the visionaries and innovators" <heir resolute efforts ena#le them to achieve the apparently impossi#le" <hey overcome all #arriers to reach their oal" F<he work must #e done with detachment" <his is #ecause it is the 9 o which spoils the work" 8f this is not the #ack#one of the <heory of 'otivation which the modern scholars talk a#out what else is it? <he Gita further advises to perform action with lovin attention to the Divine which implies redirection of the empirical self away from its e ocentric needs! desires! and passions for creatin suita#le conditions to perform actions in pursuit of e6cellence" <a ore says workin for love is freedom in action which is descri#ed as disinterested work in the Gita" 8t is on the #asis of the holistic vision that 8ndians have developed the work$ ethos of life" <hey found that all work irrespective of its nature have to #e directed towards a sin le purpose that is the manifestation of essential divinity in man #y workin for the ood of all #ein s $lokasan raha" <his vision was presented to us in the very first mantra of lsopanishad which says that whatever e6ists in the Cniverse is enveloped #y God" 3ow shall we enAoy this life then! if all are one? <he answer it provides is enAoy and stren then life #y sacrificin your selfishness #y not covetin otherFs wealth" <he same motivation is iven #y &ri 0rishna in the <hird .hapter of Gita when 3e says that F3e who shares the wealth enerated only after servin the people! throu h work done as a sacrifice for them! is freed from all the sins" On the contrary those who earn wealth only for themselves! eat sins that lead to frustration and failure"F <he disinterested work finds e6pression in devotion! surrender and equipoise" <he former two are psycholo ical while the third is the stron $ willed determination to keep the mind free of and a#ove the dualistic pulls of daily e6periences" Detached involvement in work is the key to mental equanimity or the state of nirdwanda" <his attitude leads to a sta e where the worker #e ins to feel the presence of the &upreme 8ntelli ence uidin the empirical individual intelli ence" &uch de$personified intelli ence is #est suited for those who sincerely #elieve in the supremacy of or ani:ational oals as compared to narrow personal success and achievement" Work culture means vi orous and arduous effort in pursuit of a iven or chosen task" When @ha awan &ri 0rishna re#ukes ArAuna in the stron est words for his unmanliness and im#ecility in recoilin from his ri hteous duty it is nothin #ut a clarion call for the hi hest work culture" -oor work culture is the result of tamo una overtakin oneFs mindset" @ha awanFs stin in re#uke is to #rin out the temporarily dormant raAo una in ArAuna" 8n .hapter )4 of the Gita &ri 0rishna ela#orates on two types of

Work 9thic vi:" daivisampat or divine work culture and asurisampat or demonic work culture" Daivi work culture $ means fearlessness! purity! self$control! sacrifice! strai htforwardness! self$denial! calmness! a#sence of fault$findin ! a#sence of reed! entleness! modesty! a#sence of envy and pride" Asuri work culture $ means e oism! delusion! desire$centric! improper performance! work which is not oriented towards service" 8t is to #e noted that mere work ethic is not enou h in as much as a hardened criminal has also a very ood work culture" What is needed is a work ethic conditioned #y ethics in work" 8t is in this li ht that the counsel Fyo ahkarmasukausalamF should #e understood" 0ausalam means skill or method or technique of work! which is an indispensa#le component of work ethic" =o ah is defined in the Gita itself as Fsamatvamyo ahuchyateF meanin unchan in equipoise of mind" <he principle of reducin our attachment to personal ains from the work done or controllin the aversion to personal losses enunciated in .h", Ierse 1G of the Gita is the foolproof prescription for attainin equanimity" <he common apprehension a#out this principle that it will lead to lack of incentive for effort and work! strikin at the very root of work ethic! is not valid #ecause the advice is to #e Aud ed as relevant to manFs overridin quest for true mental happiness" <hus while the common place theories on motivation lead us to #onda e! the Gita theory takes us to freedom and real happiness"

+) 3or4 Resul%s <he Gita further e6plains the theory of non$ attachment to the results of work in .h")J Ierses )/$)2 the import of which is as under% 8f the result of sincere effort is a success! the entire credit should not #e appropriated #y the doer alone" 8f the result of sincere effort is a failure! then too the entire #lame does not accrue to the doer" <he former attitude mollifies arro ance and conceit while the latter prevents e6cessive despondency! de$motivation and self$pity" <hus #oth these dispositions safe uard the doer a ainst psycholo ical vulnera#ility which is the cause for the 'odem 'ana ersF companions like Dia#etes! 3i h @"-" Clcers etc"

Assimilation of the ideas #ehind ,"1G and )J")/$)2 of the Gita leads us to the wider spectrum of lokasam raha or eneral welfare" <here is also another dimension in the work ethic" 8f the karmayo a is #lended with #haktiyo a then the work itself #ecomes worship! a seva yo a" .) ("n")er:s (en%"l He"l%<he ideas mentioned a#ove have a close #earin on the end$state of a mana er which is his mental health" &ound mental health is the very oal of any human activity more so mana ement" An e6pert descri#es sound mental health as that state of mind which can maintain a calm! positive poise or re ain it when unsettled in the midst of all the e6ternal va aries of work life and social e6istence" 8nternal constancy and peace are the pre$ requisites for a healthy stress$free mind" &ome of the impediments to sound mental health are% One of the main reasons for non$attachment to results is #ecause workin s of the world are not desi ned to positively respond to our calculations and hence e6pected fruits may not always #e forthcomin " &o! the Gita tells us not to mort a e the present commitment to an uncertain future" 8f we are not a#le to measure up to this hei ht! then surly the fault lies with us and not with the teachin " &ome people ar ue that #ein unattached to the consequences of oneFs action would make one un$accounta#le as accounta#ility is a much touted word these days with the vi ilance department sittin on our shoulders" 3owever! we have to understand that the entire second chapter has arisen as a sequel to the temporarily lost sense of accounta#ility on the part of ArAuna in the first chapter of the Gita in performin his swadharma" @ha avad Gita discusses in reat details the theory of cause and effect! makin the doer responsi#le for the consequences of his deeds" <he Gita! while advisin detachment from the avarice of selfish ains #y dischar in oneFs accepted duty! does not a#solve any#ody of the consequences arisin from dischar e of his responsi#ilities" &tress mana ement principles are descri#ed in details in several verses actin as a #rilliant uide to the operatin 'ana er for psycholo ical ener y conservation and avoidance of #urn$outs in the work situations" <hus the #est means for effective work performance is to #ecome the work itself" Attainin this state of nishkama karma is the ri ht attitude to work #ecause it prevents the e o! the mind from dissipation throu h speculation on future ains or losses"

8t has #een presumed for lon that satisfyin lower needs of a worker like adequate food! clothin and shelter! reco nition! appreciation! status! personality development etc are the key factors in the motivational theory of personnel mana ement" 8t is the common e6perience that the spirit of rievances from the clerk to the Director is identical and only their scales and composition vary" 8t should have #een that once the lower$order needs are more than satisfied! the Director should have no pro#lem in optimi:in his contri#ution to the or ani:ation" @ut more often than not! it does not happen like thatH the ea le soars hi h #ut keeps its eyes firmly fi6ed on the dead animal #elow" On the contrary a lowly paid school teacher! a self$employed artisan! ordinary artistes demonstrate hi her levels of self$ reali:ation despite poor satisfaction of their lower$ order needs" <his situation is e6plained #y the theory of Self-transcendence or Self-realization propounded in the Gita" &elf$transcendence is overcomin insupera#le o#stacles in oneFs path" 8t involves renouncin e oism! puttin others #efore oneself! team work! di nity! sharin ! co$ operation! harmony! trust! sacrificin lower needs for hi her oals! seein others in you and yourself in others etc" <he portrait of a self$reali:in person is that he is a man who aims at his own position and underrates everythin else" On the other hand the &elf$transcenders are the visionaries and innovators" <heir resolute efforts ena#le them to achieve the apparently impossi#le" <hey overcome all #arriers to reach their oal" F<he work must #e done with detachment"F <his is #ecause it is the 9 o which spoils the work" 8f this is not the #ack#one of the <heory of 'otivation which the modern scholars talk a#out what else is it? <he Gita further advises to perform action with lovin attention to the Divine which implies redirection of the empirical self away from its e ocentric needs! desires! and passions for creatin suita#le conditions to perform actions in pursuit of e6cellence" <a ore says workin for love is freedom in action which is descri#ed as disinterested work in the Gita" 8t is on the #asis of the holistic vision that 8ndians have developed the work$ ethos of life" <hey found that all work irrespective of its nature have to #e directed towards a sin le purpose that is the manifestation of essential divinity in man #y workin for the ood of all #ein s $lokasan raha" <his vision was presented to us in the very first mantra of lsopanishad which says that whatever e6ists in the Cniverse is enveloped #y God" 3ow shall we enAoy this life then! if all are one? <he answer it provides is enAoy and stren then life #y sacrificin your selfishness #y not covetin otherFs wealth" <he same motivation is iven #y &ri 0rishna in the <hird .hapter of Gita when 3e says that F3e who shares the wealth enerated only after servin the people! throu h work done as a sacrifice for them! is freed

from all the sins" On the contrary those who earn wealth only for themselves! eat sins that lead to frustration and failure"F <he disinterested work finds e6pression in devotion! surrender and equipoise" <he former two are psycholo ical while the third is the stron $ willed determination to keep the mind free of and a#ove the dualistic pulls of daily e6periences" Detached involvement in work is the key to mental equanimity or the state of nirdwanda" <his attitude leads to a sta e where the worker #e ins to feel the presence of the &upreme 8ntelli ence uidin the empirical individual intelli ence" &uch de$personified intelli ence is #est suited for those who sincerely #elieve in the supremacy of or ani:ational oals as compared to narrow personal success and achievement" Work culture means vi orous and arduous effort in pursuit of a iven or chosen task" When @ha awan &ri 0rishna re#ukes ArAuna in the stron est words for his unmanliness and im#ecility in recoilin from his ri hteous duty it is nothin #ut a clarion call for the hi hest work culture" -oor work culture is the result of tamo una overtakin oneFs mindset" @ha awanFs stin in re#uke is to #rin out the temporarily dormant raAo una in ArAuna" 8n .hapter )4 of the Gita &ri 0rishna ela#orates on two types of Work 9thic vi:" daivisampat or divine work culture and asurisampat or demonic work culture" Daivi work culture $ means fearlessness! purity! self$control! sacrifice! strai htforwardness! self$denial! calmness! a#sence of fault$findin ! a#sence of reed! entleness! modesty! a#sence of envy and pride" Asuri work culture $ means e oism! delusion! desire$centric! improper performance! work which is not oriented towards service" 8t is to #e noted that mere work ethic is not enou h in as much as a hardened criminal has also a very ood work culture" What is needed is a work ethic conditioned #y ethics in work" 8t is in this li ht that the counsel Fyo ahkarmasukausalamF should #e understood" 0ausalam means skill or method or technique of work! which is an indispensa#le component of work ethic" =o ah is defined in the Gita itself as Fsamatvamyo ahuchyateF meanin unchan in equipoise of mind" <he principle of reducin our attachment to personal ains from the work done or controllin the aversion to personal losses enunciated in .h", Ierse 1G of the Gita is the foolproof prescription for attainin equanimity" <he common apprehension a#out this principle that it will lead to lack of

incentive for effort and work! strikin at the very root of work ethic! is not valid #ecause the advice is to #e Aud ed as relevant to manFs overridin quest for true mental happiness" <hus while the common place theories on motivation lead us to #onda e! the Gita theory takes us to freedom and real happiness"

Gita tells us how to et out of this universal phenomenon #y prescri#in the followin capsules%

.ultivate sound philosophy of life" 8dentify with inner core of self$sufficiency" Get out of the ha#itual mindset towards the pairs of opposites" &trive for e6cellence throu h work is worship" @uild up an internal inte rated reference point to face impulses and emotions" -ursue ethico$moral rectitude"

THE ULTIMATE MESSAGE OF GITA FOR MANAGERS <he despondent position of ArAuna in the first chapter of the Gita is a typical human situation which may come in the life of all men of action some time or other" &ri 0rishna #y sheer power of his inspirin words raised the level of ArAunaFs mind from the state of inertia to the state of ri hteous action! from the state of faithlessness to the state of faith and self$confidence in the ultimate victory of Dharma(ethical action)" <hey are the powerful words of coura e of stren th! of self confidence! of faith in oneFs own infinite power! of the lory! of valour in the life of active people and of the need for intense calmness in the midst of intense action" When ArAuna ot over his despondency and stood ready to fi ht! &ri 0rishna ave him the ospel for usin his spirit of intense action not for his own #enefit! not for satisfyin his own reed and desire! #ut for usin his action for the ood of many! with faith in the ultimate victory of ethics over unethical actions and truth over untruth" ArAuna responds #y emphatically declarin that all his delusions were removed and that he is ready to do what is e6pected of him in the iven situation"

&ri 0rishnaFs advice with re ard to temporary failures in actions is F?o doer of ood ever ends in miseryF" 9very action should produce results% ood action produces ood results and evil #e ets nothin #ut evil" <herefore always act well and #e rewarded" And finally the GitaFs consolin messa e for all men of action is% He who follows My ideal in all walks of life without losing faith in the ideal or never deviating from it, I provide him with all that he needs (Yoga and protect what he has already got (!shema "

0autilyaFsArthashastra

` K"u% l7":sAr%-"s-"s%r" is an e6cellent treatise on statecraft! economic policy and military strate y" it is said to have #een written #y K"u% l7"! also known #y the nameC-"n"47" or> s-nu)u#%"! the prime minister of 8ndiaFs first reatemperor! .handra upta 'aurya"

8n Ar%-"s-"s%r"! 0autilya mi6es the harsh pra matism for which he is famed with compassion for the poor! for slaves! and for women" 3e reveals the ima ination of a romancer in ima inin all manner of scenarios which can hardly have #een commonplace in real life" .entrally! ArthaKLstra ar ues for an autocracy mana in an efficient and solid economy" 8t discusses the ethics of economics and the duties and o#li ations of a kin " <he scope of ArthaKLstra is! however! far wider than statecraft! and it offers an outline of the entire le al and #ureaucratic framework for administerin a kin dom! with a wealth of descriptive cultural detail on topics such as mineralo y! minin and metals! a riculture! animal hus#andry and medicine" <he ArthaKLstra also focuses on issues of welfare (for instance! redistri#ution of wealth durin a famine) and the collective ethics that hold a society to ether"

KARMA YOGA 8n this day and a e! we will rarely find people doin thin s for the sake of doin them" 'ost of us do thin s #ecause we e6pect to #e rewarded in the end" Bor instance! we o to work and do our Ao# well so that we will et compensated or have our salaries increased" @ut it shouldnFt always #e the case! as illustrated #y 0arma Yogawhich a 3indu concept that refers to our attitude towards duty" 0arma =o a is the concept wherein one must do an action selflessly for the &upreme @ein " 8t means that we offer the fruits of our la#or to the

Eord instead of seekin to have them for our own" Doin so truly li#erates us #ecause we do not et tied to the consequences of our actions" What does it mean to #e li#erated in the sense of 0arma =o a? 8t means that when we do not et attached to our action! we do not et #urdened #y it" When we #ecome un#urdened #y the act! it #rin s forth ease in doin it" <his mi ht come to those unfamiliar with the concept as a #i and lofty #ut aimless talk" 3ow then would 0arma =o a fi ure into our everyday life? <ake for e6ample takin care of an elderly in a nursin home" 8ma ine yourself as #ein one of the care ivers" <he most likely reason that you ot that Ao# is #ecause you were e6pectin a financial compensation for the hours you worked there" @y focusin on the compensation! you cease to care a#out what youFre really doin there and everythin #ecomes work to you" 3owever! if you start distancin yourself from the financial compensation and Aust focus on selfless service as tau ht #y 0arma =o a! thin s tend to #ecome easier" What you are doin now ceases to #ecome work" =ou #e in takin ood care of them instead of doin Aust the usual routine of attendin to their needs" Do not fret thou h! as you will also start seein much more fruitful rewards here like a smile from the person that you are takin care of" &ure! it may not #e a financial reward #ut a reat reward nonetheless to top off the money that you are ettin from your work"

As you mi ht have o#served! doin thin s selflessly not only makes thin s easier #ut also spreads oodwill amon people" And with oodwill spreadin around you! life will indeed #e much easier to live" &o waste no time! spread the love and learn how this yo a practiceM

NISHKAM KARMA,

Nishkam Karma, or self-less or desireless action is an action performed without any expectation of fruits or results, and the central tenet of Karma Yoga path to Liberation, which has now found place not just in business management, management studies but also in promoting better Business ethics as well.[ ! "ts modern ad#ocates press upon achie#ing success following the principles of Yoga,[$! and stepping beyond personal goals and agendawhile pursuing any action o#er greater good, [% which has become well &nown since it is the central message of the Bhaga#ad 'ita. Sakam Karma and Nishkam Karma <here are two aspects to 0arma =o a $ &akam 0arma and ?ishkam 0arma" &akam 0arma is to work with selfish e6pectations and your own interests in mind" ?ishkam 0arma on the other hand is workin with unselfishNselfless motives" =ou have to pay #ack all 0armas in this life or in future lives! ood or #ad" 8t could #e ood 0arma! #ut if it is selfish it is a chain that #inds you" ?ishkam 0arma also still #inds you to the 0armic law" 8t doesnFt matter if the chain is made of iron or old! it #inds you in same way" Good and #ad! #oth 0armas will #ind you! put you into #onda e" Of course ne ative 0arma is harder! and ood 0armas are softer" ?ishkam 0arma means free or without desire" 0arma comes from the root word *kama+ which means desires" 0arma comes from the root word DkriyaD which means to do" 8n the act of ?ishkam 0arma you have no selfish e6pectation! you are only ivin " Give with love! devotion and happiness" What should we ive? Whatever you canM @ut o#serve your limitations! don7t overdo itM ?ishkam 0arma means doin &eva (selfless service)! without the e6pectation of receivin acknowled ement! reward or a word of thanks" When you have even Aust one thou ht that someone should have said D<hank youD! this is not ?ishkam 0arma" 8n Iedic culture there is no tradition of sayin F<hank youF! only F@lessin F" <his can #e a pro#lem for westerners when they o to 8ndia! that whatever you may do! 8ndians will never say thank you" @ut with modern education the word thank you has spread everywhere" 3owever! when you say thank you! it means you don7t accept this &eva and you ive #ack some fruits" ?ishkam 0arma leads to li#eration" &elfless service #ears fruit similar to 5aAa =o a! @hakti =o a and Gyana =o a" <he fruits of &akam 0arma will #e paid for in this life and the fruit of ?ishkam 0arma will #e returned after this life" 3ere you enAoy a life of lu6ury! #ut in another life you will have empty hands" What will o with you? Don7t Aust think of this life! think also of your future lives" <herefore!

in =o a and 8ndian culture there is less focus on past lives! #ut more on future lives" -ast is past! you no lon er have any control over it" 8n a past life you were kin and now you are a cook" &uddenly you ain knowled e of the past life when you were a kin #ut no#ody will ive your kin dom #ack to you! instead you will #e taken to a psychiatric hospital" &o! what do you et from the past? Do somethin for your future" Or do somethin for a permanent position $ immortality" <hat7s what 'ahapra#huAi has spoken in his #haAan% Guruvara 'e .alu&aCna DesO"

MANAVA DHARMA @A.0G5OC?D <O <39MANAVA DHARMA SHASTRA

<he ancient Iedic society had a structured social order where the @rahmins were esteemed as a hi hest and the most revered sect and assi ned the holy task of acquirin ancient knowled e and learnin " <he teachers of each Iedic schools composed manuals in &anskrit! known as FsutrasF! pertainin to their respective schools for the uidance of their pupils! which were hi hly venerated #y the @rahmins and memori:ed #y each @rahmin student" <he most common of these were the FGrihya$sutrasF! dealin with domestic ceremonies! and the FDharma$sutrasF! treatin of the sacred customs and laws" <hese e6tremely complicated #ulk of ancient rules and re ulations! customs! laws and rites were radually enlar ed in scope! written aphoristically and set to musical cadence and systematically arran ed to constitute the FDharma$shastrasF" Of these the most ancient and most famous is the Laws of Manu! the Manava Dharma-shastra! a FDharma$ sutraF #elon in to the ancient 'anava Iedic school" ?enes s of %-e Laws of Manu 8t is #elieved that 'anu! the ancient teacher of sacred rites and laws! is the author of Manava Dharma-shastra" <he initial canto of the work narrates how ten reat sa es appealed to 'anu to pronounce the sacred laws to them and how 'anu fulfilled their wishes #y askin the learned sa e @hri u! who had #een carefully tau ht the metrical tenets of the sacred law! to deliver his teachin s" 3owever! equally popular is the #elief that 'anu had learnt the laws from !ord Brahma! the .reator! and so the authorship is said to #e divine" S#e,ul"%ed D"%es of Co$#os % on of %-e Laws of Manu &ir William >ones assi ned the work to the period ),PP$2PP @"."! #ut more recent developments state that the work in its e6tant form dates #ack to the first or second century A"D" or could #e even older" &cholars

a ree that the work is a modern versified rendition of a 2PP @"." FDharma$sutra!F which no lon er e6ists" S%ru,%ure * Con%en% of %-e Laws of Manu <he first chapter deals with the creation of the world #y the deities! the divine ori in of the #ook itself! and the o#Aective of studyin it" .hapters two to si6 recounts the proper conduct of the mem#ers of the upper castes! their initiation into the @rahmin reli ion #y sacred thread or sin$ removin ceremony! the period of disciplined studentship devoted to the study of the Iedas under a @rahmin teacher! the chief duties of the householder $ choice of a wife! marria e! protection of the sacred hearth$ fire! hospitality! sacrifices to the ods! feasts to his departed relatives! alon with the numerous restrictions $ and finally! the duties of old a e" <he seventh chapter talks of manifold duties and responsi#ilities of kin s" <he ei hth chapter deals with the modus operandi in civil and criminal proceedin s and of the proper punishments to #e meted out to different caste" <he ninth and the tenth chapters relate the customs and laws re ardin inheritance and property! divorce and the lawful occupations for each caste" .hapter eleven e6presses the various kinds of penance for the misdeeds" <he final chapter e6pounds the doctrine of karma! re#irths and salvation" Read the Full Text Translati n ! Manu S"riti Cr % , s$s of %-e Laws of Manu -resent$day scholars have critici:ed the work si nificantly" <he ri idity in the caste system and the contempti#le attitude towards women are not accepta#le today" <he almost divine reverence shown to the @rahmin caste and the despica#le attitude towards the F&udrasF (the lowest caste) is o#Aectiona#le" <he &udras were for#idden to participate in the @rahmin rituals and were su#Aected to severe punishments whereas the @rahmins were e6empted from any kind of reprimand for crimes" <he practice of medicine was prohi#ited to the upper caste" Women were considered inept! inconsistent! and sensual and were restrained from learnin the Iedic te6ts or participatin in important social functions" <hey were kept in a#Aect su#Au ation all their lives" The La#s ! Manu $ Cha%ter III& (. The vow )of studying* the three +edas under a teacher must be ept for thirty,si# years, or for half that time, or for a -uarter, or until the )student* has perfectly learnt them. .. )/ student* who has studied in due order the three +edas, or two, or even one only, without brea ing the )rules of* studentship, shall enter the order of householders.

0. 1e who is famous for )the strict performance of* his duties and has received his heritage, the +eda, from his father, shall be honoured, sitting on a couch and adorned with a garland, with )the present of* a cow )and the honey,mi#ture*. 2. 1aving bathed, with the permission of his teacher, and performed according to the rule the Samavartana )the rite on returning home*, a twice,born man shall marry a wife of e-ual caste who is endowed with auspicious )bodily* mar s. 3. / damsel who is neither a Sapinda on the mother4s side, nor belongs to the same family on the father4s side, is recommended to twice,born men for wedloc and con5ugal union. 6. In connecting himself with a wife, let him carefully avoid the ten following families, be they ever so great, or rich in ine, horses, sheep, grain, or )other* property, 7. )+i8.* one which neglects the sacred rites, one in which no male children )are born*, one in which the +eda is not studied, one )the members of* which have thic hair on the body, those which are sub5ect to hemorrhoids, phthisis, wea ness of digestion, epilepsy, or white or blac leprosy. 9. !et him not marry a maiden )with* reddish )hair*, nor one who has a redundant member, nor one who is sic ly, nor one either with no hair )on the body* or too much, nor one who is garrulous or has red )eyes*, :. ;or one named after a constellation, a tree, or a river, nor one bearing the name of a low caste, or of a mountain, nor one named after a bird, a sna e, or a slave, nor one whose name inspires terror. (<. !et him wed a female free from bodily defects, who has an agreeable name, the )graceful* gait of a 1amsa or of an elephant, a moderate )-uantity of* hair on the body and on the head, small teeth, and soft limbs. ((. But a prudent man should not marry )a maiden* who has no brother, nor one whose father is not nown, through fear lest )in the former case she be made* an appointed daughter )and in the latter* lest )he should commit* sin. (.. =or the first marriage of twice,born men )wives* of e-ual caste are recommended> but for those who through desire proceed )to marry again* the following females, )chosen* according to the )direct* order )of the castes*, are most approved. (0. It is declared that a Sudra woman alone )can be* the wife of a Sudra, she and one of his own caste )the wives* of a +aisya, those two and one of his own caste )the wives* of a ?shatriya, those three and one of his own caste )the wives* of a Brahmana. (2. / Sudra woman is not mentioned even in any )ancient* story as the )first* wife of a Brahmana or of a ?shatriya, though they lived in the )greatest* distress. (3. Twice,born men who, in their folly, wed wives of the low )Sudra* caste, soon degrade their families and their children to the state of Sudras.

THIR<KK<RAL FOR (ANA?E(ENT

(ur ancient scriptures and literatures are the &nowledge warehouses, encompassing wisdom in capsule for all wal&s of life. )hiru&&ural is one of the ancient scriptures in )amil. "t is uni#ersally acclaimed as a great piece of literature, both by the *est as well as the +ast. )he scope of the )hiru&&ural is broad , holistic in its approach to the realms of life, and its obser#ations engender contemplation for humanity. - humble attempt is made to deri#e lessons on management from this two thousand year-old text of wisdom of the .aint )hiru#allu#ar. /r. -lbert .chweit0ewr proclaimed, 1)here hardly exists in the literature of the world, a collection of maxims in which we find so much of lofty wisdom2. )he current paper will discuss on #arious important elements found in Kural 3couplet4 with reference to general management , administration5 modern theories of management and how they are applicable at any point of time.

The Thiru ural is an ancient non,religious literature that guides people on better living. Though written over .<<< years ago by Thiruvalluvar in Tamil, the way of life advised by Thiru ural is still relevant today. This series of articles is an attempt to bring the wealth of nowledge embedded in Thiru ural about finance> accessible to everyone. Thiru ural is composed of (00< urals in (00 sections of ten each. / ?ural is a couplet and each ?ural is composed of 7 words spread across . lines @2 A 0 wordsB. The wor on wisdom is divided into three ma5or chapters , those that spea about +irtue, $ealth and !ove.

=rom a personal finance perspective, there are a lot of lessons that one could learn from the chapters on virtue and on wealth. Imagine the relevance to the current financial turmoil in developed countries

Mana'e"ent Less ns !r " Vallu(ar)s Thiru**ural Si# years bac , I revisited an ancient Tamil literary wor )circa 3<< BC D .<< BC* with a view to seeing if it retained any relevance today. Considering this wor is reputed to be .<<<A years old, I was surprised )and humbled* to see that some verses retained relevance in today&s modern conte#t. Eeferences to business case, ris analysis, pro5ect planning, delegation, errors of commission and omission, training, communication s ills etc. continue to be relevant even today. 1ow many of our wor s will be relevant .<<< years hence D Insurance policy admin systemsF claims processing systemsF retail ban ing systems, may beF Then again, this 5ust goes to show that, at a fundamental level, some things never change. Si# years bac there were no blogs. 1ence I had to eep my thoughts to myself. Today, than s to blogging technology I can try to hoo an audience. I have organi8ed these post as a series of pages lin ed with wi8ard,style Previous Next lin s. Gou can always 5ump to a specific page using the Pages list on the right

D8I8?9 'A?AG958AE QCAE8<89&

!ight Stewards D Sisters and Brothers of Unity is a new group that has ta en upon itself the educational and facilitative role of providing suggested guidance for lightwor ers who wish to adopt high standards of integrity and the embodiment of =ifth "imensional -ualities as we prepare ourselves for ever,e#panding roles in the Golden /ge. Hur goal is to generate and share documents which help us to be s-uea y clean in our behavior, which in turn allows bliss to rise within us, and align us with the new paradigm of the divine -ualities of ;ova 'arth. Iany times on this blog and on In!ight Eadio, we&ve discussed the "ivine Jualities. Below we offer more information about what they are. $e encourage you to share and use this document as you see fit.

The "ivine Jualities are the attributes we find in the higher dimensions, where peace and love, and unity consciousness is the theme. $e&d li e to than !inda "illon for the list of the divine -ualities below, which she describes in her boo , The Great Awakening, as the thirteen blessings and virtues. ?eep in mind that the the divine -ualities below are related and reflective of love, trust, forgiveness, unity, connectedness and balance. $e are encouraged to embody these -ualities now as we bring forth ;ova 'arthK +& ,ruden-e Twin of temperance. The ability to now in all situations when to proceed and when to retreat> when to ta e action and when to be still> when to offer help and when to eep silent> to now in e#act measure what is re-uired whether it is in ba ing a ca e or healing a psychic in5ury. /ll things in correct measure. Prudence encompasses the -uality of moderation, the genuine nowing and practice of everything in balance. ;o one person can live in only one area of their being, their life, and truly be representative of the whole. Prudence allows for the complete and total release of addictions. /n unusual trait on 'arth. .& F rtitude Courage in all forms, endurance, the ability to eep going forward when others cease and give up.The virtue of pathfinders.Strength of purpose.Stamina in all senses. ?now that patience is a part of fortitude. =ortitude is the encompassing of forbearance, and forbearance is indeed a -uality that re-uires patience. To continue going forward with stamina when you really feel li e pushing the individual off the cliff. /& H %e The gift of heart, nowing of the presence of God.The ability to understand that very often things on 'arth are not as they appear./n ability to pierce the illusion of the veil.The only reason for change. 1ope encompasses serenity> total and perfect calm. To be in the world but not of it, to be able to remain centered and still, one with who you are regardless of e#ternals. 0& ,urit1 Twin of clarity> sister of chastity, not in the se#ual sense but in the sense of the ability to remain pure in all aspects of self. To remain centered when there is chaos, temptation or a lac of harmony around you. To see, feel and now clearly what e#ists, what is illusion and what is necessary for survival in all senses of the word. 2& Beaut1 Inner and outer. To be in a state of beauty with all that is, in all realms, physical, emotional and spiritual. The ability to create and maintain beauty. To be in a state of beauty is to be in harmony with all. To become a perfect mirror for all of God&s creations. 3& 4 1 To be fully than ful, grateful and one with the gift of life purpose and spirit.To be a reflection of the perfection of the creation of self and all.To live in and remain with the heart for all time. 5& C "%assi n

The ability to !ove and serve without 5udgment. To be able to fully understand and heart feel another&s situation without entering or assuming that cloa . The understanding that another has a chosen path and that we can only offer assistance and !ove. $e cannot complete another&s 5ourney for them for that would be theft. Tenderness. 6& Truth Truth is clarity. Truth simply is light and !ove. It is the wholeness of nowing. It is factual information that can stand and does stand alone, whether people now it or not, truth is. =or e#ample, the "ivine is a supreme nowing. $hether anyone in this room or on this planet nows this matters not. That truth cannot be altered. $isdom is the virtue of having the good sense to now and understand that truth. 7& 8isd " Brother of Truth. Understanding the "ivine plan, the unfoldment and each thingLbeing&s place within that plan.Ultimate respect for all because all is a reflection of the Hne, and we are Hne.The ability to comprehend the difference between believing, thin ing and nowing. ?nowing comes from the deepest core of your being, it is that part of you intimately connected with your higher self, your guides and God. It is the beauty of the elders, of those who have gone through the planes of twelve e#istences, those who have arrived at the end of the path and are ready for a new time. +9& A#e /bility to feel and e#perience always and fully the wonders of creation, the "ivine.The nowing that there is always more, more to learn, to e#perience, and to understand. To now that our understanding and e#perience of God is limited but the promise of further growth holds true. It is the innocence of the small child within, the sense of awe, the sense of wonder. It is the sense of understanding the magnificence of the universal plan, the unfoldment. It is the thrill, the e#pectation and 5oy at being, simply being, and en5oying the new miracles that unfold, always waiting for the ne#t one. It is the relation of purity. ++& Charit1 The genuine ability to share all things, material, spiritual and emotional. Based in the true understanding that there is always enough for all to thrive and we are all richer in the 5oint e#pression of sharing. / heart,felt need to be generous. ?nowing nowledge and gifts are never intended solely for one person. +.& Hu"ilit1 Twin of piety. /bility to be truly grateful for the many blessings bestowed upon each and all. ?nowledge that alone we are rather incompetent but united with Hne we are /ll. ;ecessary for all wor s and sharing of service. +/& Gra-e Grace is the -uality of being a true and e#act e#pression of "ivine spirit and will. This is a state of beauty, of wholeness, of oneness. It is the final blessing and virtue, encompassing service and action.

Cnit$,
L s% of 8us ness >"lues

PHYSICAL VALUES

1) A,,ur",7 <he precision! e6actness! and conformin to fact in details of work" 2) Cle"nl ness $$of offices! production and warehouse facilities! equipment! customer service areas! raw material and finished product inventory! closets! #athrooms! and so on &) ("@ $u$ <% l ="% on of Resour,es <he desire and a#ility of the company to improve its performance #y full utili:ation of its current resources (i"e" as time! money! equipment! materials! space! people! etc")" +) Orderl ness $$in offices! drawers! file ca#inets! shelves! paperwork! files! phone num#ers! priority of work! daily and weekly plannin ! etc" .) Pun,%u"l %7 "nd T $el ness $$in arrivin on time to work! from #reaks! from lunch! to meetin s! in replyin to letters and phone calls! in payin #ills on time! etc" Occurrin at the most suita#le or opportune time" /) Au"l %7 of Produ,%s "nd Ser! ,es $$in terms of presentation! functionality! choice! value! speed! timeliness! suita#ility! repeata#ility! relia#ility! life span! repeata#ility! courtesy! friendliness! etc"

0) Re)ul"r %7 $$of meetin s! reports! sales calls! performance reviews! and so forth 1) Rel "; l %7 <he way system or persons consistently produce the same results! prefera#ly meetin or e6ceedin its specifications" Dependa#ility" 2) Res#ons !eness <he way people! the or ani:ation! systems! etc" react to a need comin from within or without" 15) S"fe%7 $$in offices! warehouses! production and research facilities! vehicles! for employees! vendors! customers" etc" 11) S#eed of O#er"% ons <he measurement of whether actions occur in the fastest time"

ORGANIZATIONAL VALUES
1) A,,oun%"; l %7 $$of individuals! departments and divisions for performance! results! pro#lems! and so on 2) Co$$un ,"% ons $$up! down! and sideways within the company! with customers and vendors! in terms of openness! frankness! clarity! frequency! accuracy! timeliness! and #revity &) Coo#er"% on 9Te"$wor4) $$amon individuals! departments! divisions! #ranches! and so on +) Coord n"% on $$hori:ontally #etween departments in terms of plans! activities! and systems .) D s, #l ne $$in adherence to company policy! rules! systems! procedures! schedules! standards! ethics! and so on /) Freedo$ for In % "% !e of E$#lo7ees $$to make su estions! develop plans! make decisions! carry out or modify actions! and so on

0) In%e)r"% on $$for smooth operation vertically #etween different levels of the or ani:ation in terms of plans! decisions! and priorities 1) S%"nd"rd ="% on $$in terms of forms! files! procedures! reports! evaluations! equipment! trainin ! recruitment! communications! and so on performance orientations!

2) S7s%e$ ="% on $$in sales! marketin ! customer service! accountin ! research! production! en ineerin ! estimatin ! recruitment! trainin ! promotions! communications! coordination! reportin ! and so on

PSYCHOLOGICAL VALUES
1) Con% nuous I$#ro!e$en%

<he desire and a#ility of the company to develop and incorporate ways to improve itself" 2) Cre"% ! %7 $$in terms of new products! new ideas! new systems! new production methods! new applications of technolo y! new methods of financin ! new marketin strate ies 2) Cus%o$er Del )-% <he positive emotional response and Aoy that the customer feels from interaction with our people and our products and services" &) De, s !eness $$in solvin pro#lems! plannin ! e6ecutin and commitment to decisions once made plans! in terms of speed

+) De!elo# Peo#le <he desire and a#ility of the company to improve the lot of its employees! includin ! ultimately! their personal rowth. (.lick here to o to an article on perhaps the hi hest #usiness value! .ommitment to -eople") .) H"r$on7 <he overall atmosphere and interaction #etween people! departments! divisions! systems! activities! rules! and policies within the company and #etween these elements and the e6ternal environment! customers! vendors! community laws! and so on"

/) Inno!"% on <he desire and a#ility of the company to venture into new! #reakthrou h areas of opportunity" (e" " in the industry! in emer in trends in society! etc") 0) In%e)r %7 0eepin to oneFs word! promises! a reements! #ein truthful! non$ deceitful etc" with employees! customers! vendors! overnment! etc" 1) Lo7"l%7 $$to and from suppliers! customers! and employees 2) Resour,efulness <he a#ility to deal resourcefully! i"e" creatively! ima inatively! self$ relia#ly with unusual pro#lems! difficult situations! or unanticipated opportunities" 15) Res#e,% for %-e Ind ! du"l $$in esta#lishin rules and policies! desi n of systems! makin decisions! e6ecutin instructions! and so on in terms of peopleFs health! safety! self$esteem! feelin s! and opinions 11) Ser! ,e %o So, e%7 .ommunity welfare! environmental protection! development of products and services that meet real physical! social! or psycholo ical needs"

INDIAN ETHOS (ANA?(ENET:

O@ford def nes e%-os "s BT-e ,-"r",%er s% , S# r % "nd 8el efs of ,o$$un %7C #eo#leD w- ,- d s% n)u s-es one ,ul%ure fro$ %-e o%-erE Ind "n e%-os s dr"wn fro$ %-e >ed"sF %-e R"$"7"n"F ("-";-"r"%F %-e 8-")w"d) %"F "nd <#n s-"dsE 5i ht from the Iedic a e it has #een discovered two #asic universal truths of life" )"<he essential infinitude and divinity of all souls" ,"<he essential oneness and solidarity of universe and all life" <he first truth was e6pressed C-?8&3ADA as A3A' @5A3'A&8 (8 am @rahman)

Or A=A' A<'A @5A3'A? i"e" <he 8ndividual soul is @rahman Or <A<<WA'A&8 (<hou art that)" <his is the first truth thou ht to every child" 9ven a poor uneducated man livin in a hut knows that God is in every#ody and therefore there is sameness in all" <he second truth is a#out a holistic universe" Where at a level of pervadin consciousness everythin is interconnected at I=A&<38 E9I9E (8ndividual level) my lim#s! hands! le s! ears! eyes! heart! lun sO" 9verythin are me" 8 live in all of them" <heir sorrows and Aoys are my sorrows and Aoys" &imilarly at &A'A&<38 level (the whole universe) 8 am not a sin le individual #ut 8 am a part of the whole universe Aust as my lim#s are part of me" 'odern science has accepted that in this holistic universe all minds and matters are interconnected at a deeper level" <he #asic unity of life cannot #e #roken" Eove! sacrifice therefore emer e as the only for a meanin ful livin " On the #asis of this holistic vision! 8ndians have developed work ethos of life" <hey found that all work! physical or mental! mana erial or administrative have to #e directed towards sin le purpose" <he manifestation of the divinity in man #y workin for the ood of others! for the happiness of others" <hese 8ndian ethos are required all over the world in present scenario in mana in #usiness and industry effectively and efficiently" &ome of these ethos are as follows% THE >EDANTIC >IE3 OF KAR(A All workN0arma to manifest divinity! hence these must #e pure! ood! honest and sincere" 8ndian philosophy also teaches to perform every work without havin any attachment to result! #ecause results do not fall under the Aurisdiction of a doer" &uch thinkin and understandin will chan e the whole attitude" ?ow the results will #ecome a -5A&AD$ ratitude ( comin from the God himself" =ou can now accept the result with open mind without apprehensions$Aust as you accept mem#ers into 0arma =o a" THE SELF 9AT(AN) AS THE SO<RE OF ALL PO3ER: .onsiderin motivations as internal every human #ein has the same divine atman with immense potentialities within Iedanta #rin s infinite

e6pansion of mind! #reaks down all the #arriers and #rin s out the God in man" 'otivation is to #e internal and not e6ternal" &uch motivation involves the inner #eauty and does not promote any reed in an individual to have more and more in return of his work" 3ELFARE OF ALL 9YA?NA SPIRIT) Iedanta teaches to perform all activities" BAT(ANO (OKHARTH 6A?AT HITAY CHAD &erve your personal interest #ut do not for et others &hankaracharya has iven the concept to ain perfection in individual life as well as the welfare of the whole world" <NIA<E 3ORK C<LT<RE:8 Work is considered as duty or &AD3A?A and there is no difference #etween 0A5'A (work) and D3A5'A (reli ion)" <he term D3A5'A does not indicate any particular reli ion" Dharma is a duty to #e performed in a iven situation" <hus Dharma is possi#le throu h 0arma only" SKILL IN ACTION AND E>ENNESS OF (INDE (EANS ARE EA<ALLY I(PORTANT AS THE ENDSE 9YADRISI 8HA>NAH YASYA SIDDHI 8HA>ANTI TADR<SI) <hus society accepta#le values are to #e followed in determinin the o#Aectives as well as in the process of achievin these o#Aectives" 8nte rated human personality of self$developed mana er can assure #est and competent mana ement of any enterprise! involvin collective works and efforts" <he refined or hi her consciousness will adopt holistic attitude" 8t will #rin out the divine in man" 8t will achieve perfection or e6cellence in whatsoever sector you work" We shall achieve peace! harmony and prosperity within and without i"e"! in or internal world and in our e6ternal world simultaneously" <his is the ideal of 8ndian ethos%

BAT(ANO (OKSHARTHA( 6A?AT HITAYA CHAD (Bor ainin perfection in individual life! as well as for the welfare of the world) 3uman and ethical values or qualities such as coura e! vision! social awareness! fearlessness! inte rity! pure and clear mind! truth! etc! are su#Aective and intan i#le concepts" <hese represent divine wealth" INSI?HTS INTO INDIAN ETHOS: @usiness need not #e re arded evil! trained and unethical" @usiness is scared" 8t is a matter of attitude! approach and level of mana ement consciousness" 8ndian ethos demands su#Aective mana ement system" )" ," /" 1" 2" 4" 'ana ement attitude" 3umani:in the or ani:ation" 8nterior sin mana ement &elf introspection @rain stillin (decision makin in silence) &elf dynamisin meditation"

8ndian 9thos is more vital to modern mana ement than any other mana ement theory for the simple reason that it takes into account a Rwhole7 man rather than approachin man in a partial fashion as the other theories do" 9ach and every situation can #e met effectively if one takes time to reflect over it" 5eflection with a tranquil mind helps in drawin out solutions from within" &uch uidance from within helps a mana er look at the perceived pro#lem situation in a creative manner" 8t leads to a more coherent and complete understandin " 8ndia #elon s to feminine ( collectivistic cate ory" 8n feminine oriented culture co$operation and sharin are the #asic ethics and human actions are overned #y the ivin orientations" Beminine collectivistic mana ers are softness oriented" Bor them *.arin and &harin + comes fist" &uch mana ers tend to take a hi hly humanistic approach to mana ement! and have a reater a#ility to inspire people" @y takin care of su#ordinates! they are a#le to ensure achievement for them" 8ndian culture is predominantly a &piritual and 8nward lookin culture" 8t has a socio$centric vision" <he orientation of the spiritually dominated culture is that of welfare! the social ood or the ood of the reater

mem#ers" &imple livin and hi h thinkin is the characteristic feature of our culture" One of the dominant features of the 8ndian culture is the >oint Bamily &ystem" <he values that are particular to our society are e6tremely important in the conte6t of mana ement! where roup effort rather than an individual endeavour is more important" Eivin in a Aoint family! an individual endeavour is more important Eivin in a Aoint family! an indiviual is #rou ht up in a system of mana ement! which may #e termed the 0A5A< style of mana ement" 0arta in a Aoint family is a fatherly fi ure" 9veryone in the family reposes confidence in him! he is respected and he is open to constructive and respectful criticism" <here is the warmth of relationship! closeness! consideration for others and a feelin of sacrifice for the lar er family interest" Another characteristic of 8ndian culture is -C5C&3A5<3A& $ <he 'ission of Eife" -urushartha means and connotes the aims! mission or purpose of life" <hese four -urusharthas comprise man7s aspiration" -urusharthas are four in num#er impact and si nificance will #e lost to a si nificant e6tent" THE CRITICLAL ASPECTS OF THE INDIAN ETHOS NEED TO 8E I(8I8ED 8Y AN INTERNATIONAL CO(PANY SEEKIN? TO SET <P 8SINESS IN INDIA% @efore we talk a#out the culture specific system of mana ement suited to 8ndian psyche! we should first understand and appreciate the salient characteristics of 8ndian culture" &uch an understandin is essential #efore em#arkin on the task of #uildin the indi enous system of mana ement" <hese are% S S S S S S S S 9ssential divinity of human soul 9ssential owners and solidarity of universe and all life" -hilosophy of an inte ral e6perience" Bamily is the #asic unit of social system" 5ishi and ashramiac culture" -urusharth the mission" Iarna$Ashram system" &pirit is free enquiry! tolerance and selective assimilation"

<he characteristics of 8ndian culture are that attends to #e pervasive and endurin " When an international company is settin up #usiness in 8ndia! it will have to look for the accepta#ility of their mana ement in its present form in the 8ndian situation"

<he four #asic cultural dimensions which may account for differences in mana ement and 35D practices across culture are% S <he e6tent to which a society emphasi:es collective rather than individual activity" S <he e6tent of power distance or tolerance for social inequality" S <he e6tent of acceptance of uncertainty" S <he e6tent to which a society emphasi:es R'asculine values7 and #ehaviour such as assertiveness! am#itiousness! domination etc" 8n the a#ove dia ram! the #asic or the fundamental requirement for a mana er is his RI8&8O?7 and attitude towards the environment in its totality i"e" .osmic view #ased on cultural values" ?e6t comes the emotional sta#ility of the mana er" 3e must #e a self$controlled and self$ propelled man" <his can come #y the heavy input of sattvic unas and the constant practice of niskamkarm" >o# skills is the last input" Which thou h important! is not the R

Transwor d S!ra!"#i$ Va %" & 'or (%)in# and S" in# A (%sin"ss 'very business owner as s, :8hat)s "1 ;usiness # rth<= $hether you&re evaluating the strategies of the business, planning for management succession, considering a change in ownership, preparing for retirement or applying for an SB/ loan> the -uestion of value needs to be answered. It is important that you understand the potential value of your %going, concern& business. Transworld Business +aluation Services is dedicated to providing an efficient, cost effective, customi8ed process to answer the -uestion, M$hat&s my business worthFN Our a%%r a-h> Trans# rld Strate'i- Value> is -ust "i?ed t 1 ur needs , appropriately developed from information gathered from you )the owner* and your business counselors. Our -erti!ied ex%erts apply the best applicable methods and standards to your business to arrive at a report that is cost effective and provides you with a strong negotiation tool. Hther appraisal services apply a much more e#pensive Mone,si8e,fits,allN methodology> our affordable service is tailored to the level of sophistication and comple#ity, and to the si8e and nature of the business. Please provide your contact information so that our professional staff can discuss our services with you or, contact one of our business valuations office locations. Trans-cultural human values in Management Education Trans,cultural competence is the process in which a person adopts multiple ways of perceiving, evaluating, believing O solving problems to understand O learn tonegotiate cultural diversity among nations.'-uity pedagogyK It aims at achieving fair Oe-ualeducational opportunities for all the children.Curriculum reformK It should include curriculum theoryO historical in-uiry so that bias in te#tboo s, media Oother educational materials can be easily detected.Teaching for social 5usticeK It develops understanding of the evidence of the individual i.e. what e#actly anindividual is..

CU!TUE/! 1UI/; +/!U'S

6uman #alues are most definitely different to moral #alues.

7oral #alues regard matters of right and wrong, and are constant and unchanging. 8ight and wrong are not changeable by the moods of society9 for example, just because gays are much persecuted, doesn:t ma&e homosexuality wrong. 6uman 3read9 corrupt4 #alues are shifty things, often confused with morals and moral #alues. )hey change from person to person, from day to day and hour to hour, into whate#er currently suits people. "t currently suits the Bush administration to relax its laws against torture, and they defend the mo#e by saying it is not immoral. )his is not the case. "t is simply in agreement with their own current human #alues. 6uman #alues, while occasionally 3and with slowly increasing fre;uency4 in accordance with moral #alues, are usually things that benefit the group of people, or person, perpetrating them. .urprisingly enough, " much prefer moral #alues. # ! Trans-cultural human values in Management Education Trans,cultural practices O values have becomesignificantly important in corporate business.The synergy between corporate culture O managerialvalues gives rise to cross, cultural practices which helpsin ma ing effective strategic options O performing the business tas s successfully.S ills, capabilities, nowledge, technology Oe#periences are better facilitated by cross,culturalapproach particularly in multinational organi8ations.Compatibility between societal values O managerial practices influences the critical organi8ational success.Institutions of higher education can serve as thesources for providing global perspectives of multicultural education. "! Trans-cultural human values in Management Education Iulticultural education has two view pointsK /ssimilation or melting potK In this, small cultural people should give their original culture, identities, language, values, behavior O communication styles Omerge into the predominant bigger culture. Global perspectiveK It promotes trans,cultural human values O e-uity amongst all cultural groups in the society. It allows people to respect O appreciate all e#isting cultural groups. To!a *%a i!) Mana#"m"n! mind ma+ ,T*M- . mind ma+ i! wi!h Mind Pad <se )otal =uality 7anagement with mind mapping for managing ;uality process in your company. =uality assurance through statistical methods is a &ey component in a manufacturing organi0ation where )=7 generally starts by sampling a random selection of the product. )he sample can then tested for things that matter most to the end users. )o build a )=7 mind map with 7ind >ad you should follow these steps9 . .elect the sample products or it:s part5 $. /escribe what static ways you are using to e#aluate products: part5 %. 8esearch and put into your map the reasons of the problem5

Introduction and Implementation of Total Quality Management (TQM)

KhurramHashmi March 16, 2010 2

Total Quality Management is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the companys operations, with processes being done right the first time and defects and waste eradicated from operations. Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.1

TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is Do the right things, right the first time, every time. TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include:

Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just in time/demand flow manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans Specific incorporation in strategic planning This shows that TQM must be practiced in all activities, by all personnel, in manufacturing, marketing, engineering, R&D, sales, purchasing, HR, etc.2

Principles of TQM
The key principles of TQM are as following:3

+@

Management Commitment

Plan (drive, direct) Do (deploy, support, participate) Check (review) Act (recognize, communicate, revise)

.@

Employee Empowerment Training Suggestion scheme Measurement and recognition Excellence teams

/@

Fact Based Decision Making SPC (statistical process control) DOE, FMEA The 7 statistical tools TOPS (Ford 8D team-oriented problem solving)

0@

Continuous Improvement Systematic measurement and focus on CONQ Excellence teams Cross-functional process management Attain, maintain, improve standards

2@

Customer Focus Supplier partnership Service relationship with internal customers Never compromise quality Customer driven standards

THE CONCEPT OF CONTINUOUS IMPROVEMENT BY TQM

TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving capabilities, people, processes, technology and machine capabilities. Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability. A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process.1 There are three major mechanisms of prevention: 1. 2. 3. Preventing mistakes (defects) from occurring (mistake-proofing or poka-yoke). Where mistakes cant be absolutely prevented, detecting them early to prevent them being passed down the value-added chain (inspection at source or by the next operation). Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects. (stop in time).

Implementation Principles and Processes

A preliminary step in TQM implementation is to assess the organizations current reality. Relevant preconditions have to do with the organizations history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed. If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.5 However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual prime movers, and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized.8

Steps in Managing the Transition

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM: identifying tasks to be done, creating necessary management structures, developing strategies for building commitment, designing mechanisms to communicate the change, and assigning resources. Task identification would include a study of present conditions (assessing current reality, as described above); assessing readiness, such as through a force field analysis; creating a model of the desired state, in this case, implementation of TQM; announcing the change goals to the organization; and assigning responsibilities and resources. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. This should be a responsibility of top management. In fact, the next step, designing transition management structures, is also a responsibility of top management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An organization wide steering committee to oversee the effort may be appropriate. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership.6 To communicate the change, mechanisms beyond existing processes will need to be developed. Special all-staff meetings attended by executives, sometimes designed as input or dialog sessions, may be used to kick off the process, and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments.

Management of resources for the change effort is important with TQM because outside consultants will almost always be required. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs. While consultants will be invaluable with initial training of staff and TQM system design, employees (management and others) should be actively involved in TQM implementation, perhaps after receiving training in change management which they can then pass on to other employees. A collaborative relationship with consultants and clear role definitions and specification of activities must be established. In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist. Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need to maintain their commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in design of the system.7 Always keep in mind that TQM should be purpose driven. Be clear on the organizations vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community.

Conclusion
TQM encoureges participation amongst shop floor workers and managers. There is no single theoretical formalization of total quality, but Deming, Juran and Ishikawa provide the core assumptions, as a discipline and philosophy of management which institutionalizes planned and continuous improvement and assumes that quality is the outcome of all activities that take place within an organization; that all functions and all employees have to participate in the improvement process; that organizations need both quality systems and a quality culture.

O5GA?8TA<8O?AE .CE<C59
/"0ini!ion
<he values and #ehaviors that contri#ute to the unique social and psycholo ical environment of an or ani:ation" Or ani:ational culture includes an or ani:ationFse6pectations! e6periences! philosophy! and values that hold it to ether! and is e6pressed in its self$ima e! inner workin s! interactions with the outside world! and future e6pectations" 8t is #ased on shared attitudes! #eliefs! customs! and written and unwritten rules that have #een developed over time and are considered valid" Also calledcorporate culture! itFs shown in ()) the ways the or ani:ation conducts its #usiness! treats its employees! customers! and the wider community!

(,) the e6tent to which freedom is allowed in decision makin ! developin new ideas! and personal e6pression! (/) how power and information flow throu h its hierarchy! and (1) how committed employees are towards collective o#Aectives" 8t affects the or ani:ationFs productivity and performance! and provides uidelines on customer care and service! product quality and safety! attendance and punctuality! and concern for the environment" 8t also e6tends to production$methods! marketin and advertisin practices! and to new product creation" Or ani:ational culture is unique for every or ani:ation and one of the hardest thin s to chan e"

8ma e for or ani:ation cultural

IAEC9 BO5 8?D8A? 'A?AG95&

/"s$ri+!ion.YLL-B<. >-8) " 9 Business +thics . )he ?ature and >urpose of +thical 8eflections 9 "ntroduction, /efinition of +thics, 7oral Beha#ior, @haracteristics of 7oral .tandards. $. Bussiness+thics 9 7ediating between 7oral /emands and "nterest-8elati#e -utonomy of Business 7orality, .tudies in Business +thics, 8ole of +thics in Business, )heory of Aoluntary 7ediation, >articipatory +thics. %. 7oral 8esponsibility 9 "ntroduction5 Balanced @oncept of Breedom5 "ndi#idual 8esponsibility, "mplication 8elated to 7odern "ssues - >ublic -ccountability and +nterpreneurial 8esponsibility, 7oral @orporate +xcellence, @orporate 8espobsibility. C. Business +thic and "ndi#idual "nterest 9 "nterest based outloo&, "mpact of "nterest on 7oral 'oals and 7oral >rinciples, <tilitarian Aiews on Business +thics, +nlightened +goism. D. "ntroduction of /uty +thics in the Business +n#ironment. E. "ntroduction to the )heories of Airtue 9 >roducti#e >ractices and )eam 7oti#ation5 >rospects of Airtues in Business +thics and 7anagement )heory. >-8) "" 9 7anagement By "ndian Aalues F. )he .ources of "ndian Aalues and +thos 9 "ntroduction to Aedas, .hashtras, .mrities, >urans, <panishads, 7ahabharata and Aalmi&ee 8amayana, 'urugranth .ahib, =uran and Bible, )echnigs of Buddha and 7aha#eer. G. )he 7odels of L+adership and 7oti#ation in "ndian )houghts. H. 6uman Beha#iour 9 )he 'una )heory, )he Karma )heory, )he .ans&ara )heory. I. >ersonal +ffecti#eness and 7anagerial +ffecti#eness in "ndian )houghts9 7anagement on .elf, "nterpersonal +ffecti#eness, ?ish&am Karma Yoga, >rofessionalism and +ffecti#eness. . "ndian 6eritage and >roducti#ity 9 >roducti#e +fficiency and .pirituality, Business +n#ironment and -pplications of "ndian +thos, @ompetition and @ooperation. $. @ultural 6eritage of "ndia its 8ele#ance for 7anagement. @ases in Business +thics and 7anagement by "ndian Aalues.7B- ->8 +xtra 7atter %. @haracteristics, theories of corporate moral excellence, ethics and sta&eholders theory and +thical issues in mar&eting. C. 6uman Aalues 9 7eaning, "mportance, )ypes, personal Aalues, 7anagerial #alues, @orporate Aalues, Business Aalues, 7anaging by #alues, Basic >rinciple of "ndian +thos.

<n % '&
BUSINESS ETHICS AND ETHOS

MBA Se"ester$IV

O;Ae-ti(e B

This course aims at helping students thin about some of the important ethical Implications of the da to,day happenings and practices of Indian industry and business. It is designed to stimulate discussi and debate rather than to formulate principles, and to raise further -uestions rather than to dicta answers. The following ob5ectives are underlinedK To improve ethical reasoning by correlating mo concepts to business practices , clarification of the values that determine managerial behavior. understand Indian 'thos O +alues is an important feature this paper. Se-ti n$ A CBusiness Ethi-sB ;ature, scope and purpose of ethics> Eelevance of values> Importance of 'thics O moral standards> 'thics O Ioral "ecision Ia ing. Corporate Social EesponsibilityK ;ature, scope O Importance> Corporate GovernanceK Concept, Importance for Industry> 'thical Issues related with /dvertisements, =inance, Investment, Technology> Secular versus Spiritual +alues in Ianagement> $or ethicsK concept of Swa hrama! Gandhian a%%r a-h in Mana'e"ent D Trusteeshi%B Gandhi5i&s doctrine of SatyaO/hinsa,Concept, importance O relevance of Trusteeship principle in modern business. Indian Eth sB ;eed, purpose O relevance of Indian 'thos> Salient features )Brain Stilling, Total Juality Iind, Intuition, Intellectual rational brain +Ls 1o Ianagers in "ecision Ia ing*> Eelevance of Bhagvad GitaK "octrine of ?armalistic,Spiritual Brain, 1olistic /pproach for i..e Nishkama"arma#ogaGuna Theory )SET i.e Sat$ Ra% & Tam Iodel*, Theory of Sanskaras,Bhagvad Gita OSelf Ianagement
E%- ,s de, s on $"4 n)

Belie! S1ste"s
Ethical Relativism

S ur-e ! M ral Auth rit1

Ioral authority is determined by individual or cultural self, interests, customs and religious principles. /n act is morally

'se(f-interest) #tilitarianism '*a(*u(ation of *ost+,enefit) #niversalism ' ut#) Rights 'in ivi ua( entit(ement) $ustice 'fairness an e-ua(it#)

right if it serves one&s self,interests and needs. Ioral authority is determined by the conse-uences of an actK /n act is morally right if the net benefits over costs )greatest good* are greatest for the ma5ority )greatest number*. Ioral authority is determined by the e#tent the intention of an act treats all people with respect. Includes the re-uirement that everyone would )should* act this way in the same circumstances. Ioral authority is determined by individual rights guaranteed to all in their pursuit of freedom of speech, choice, happiness, and self,respect Ioral authority is determined by the e#tent that opportunities, wealth, and burdens are fairly distributed among all

8hat is ,r !essi nal Ethi-s<

Professional 'thics concerns one4s conduct of behavior and practice when carrying out professional wor . Such wor may include consulting, researching, teaching and writing. The institutionali8ation of Codes of Conduct and Codes of Practice is common with many professional bodies for their members to observe. /ny code may be considered to be a formali8ation of e#perience into a set of rules. / code is adopted by a community because its members accept the adherence to these rules, including the restrictions that apply. It must be noted that there is a distinction between a .rofession such as Information Systems, and *ontro((e .rofessions such as Iedicine and !aw, where the loss of membership may also imply the loss of the right to practice. /part from codes of ethics, professional ethics also concerns matters such as professional indemnity. =urthermore, as will readily be appreciated, no two codes of ethics are identical. They vary by cultural group, by profession and by discipline. The former of these three variations is one of the most interesting, as well as controversial, since it challenges the assumption that universal ethical principles e#ist. In some cultures, certain behavior are certainly frowned upon, but in other cultures the opposite may be true. Software piracy is a good case in point, in that attitudes towards software piracy vary from strong opposition to strong support , attitudes that are supportable within a particular culture. /t the end of

these pages is a section called Cultural Perspectives, where we hope to point you to alternative perspectives of ethical standards, attitudes and behavior

1ha! ar" 2%sin"ss "!hi$s3

Business ethics are moral principles that guide the way a business beha#es. )he same principles that determine an indi#idual2s actions also apply to business. -cting in an ethical way in#ol#es distinguishing between 1right2 and 1wrong2 and then ma&ing the 1right2 choice. "t is relati#ely easy to identify unethical business practices. Bor example, companies should not use child labour. )hey should not unlawfully use copyrighted materials and processes. )hey should not engage in bribery. 6owe#er, it is not always easy to create similar hard-and-fast definitions of good ethical practice. - company must ma&e a competiti#e return for its shareholders and treat its employees fairly. - company also has wider responsibilities. "t should minimise any harm to the en#ironment and wor& in ways that do not damage the communities in which it operates. )his is &nown as corporate social responsibility.

@odes of beha#ior

Th" aw is !h" k") s!ar!in# +oin! 0or an) 2%sin"ss4 Mos! "adin# 2%sin"ss"s a so ha5" !h"ir own s!a!"m"n! o0 (%sin"ss Prin$i+ "s whi$h s"! o%! !h"ir $or" 5a %"s and s!andards4 In An# o Am"ri$an6s $as"7 !his is $a "d 8Good Ci!i9"nshi+64

- business should also follow rele#ant codes of practice that co#er its sector. 7any companies ha#e created #oluntary codes of practice that regulate practices in their industrial sector. )hese are often drawn up in consultation with go#ernments, employees, local communities and other sta&eholders. -nglo -merican has played an acti#e part in initiati#es such as the +xtracti#e "ndustries )ransparency "nitiati#e, the <nited ?ations 'lobal @ompact and the 'lobal 8eporting "nitiati#e.

-nglo -merican has also contributed to the Aoluntary >rinciples on .ecurity and 6uman 8ights. )his code sets out principles and practices for ensuring that a company2s need to ensure the security of its employees and operations in #olatile countries does not ad#ersely impact upon the local population. )hus the >rinciples pro#ide guidance on how both pri#ate and public security forces assigned to protect a mining operation or an oil and gas facility should be #etted, trained in human rights, monitored and controlled. -nglo -merican also aims to ensure that it plays a role in protecting the human rights of its employees and local people in countries in which it operates. )he company supports the principles set forth in the <ni#ersal /eclaration of 6uman 8ights. -ll companies need to ma&e a profit. 6owe#er, -nglo -merican recognises that this objecti#e must ta&e account of ethics as shown in its statement on corporate responsibility9 1Though providing strong returns for our shareholders remains our prime objective, we do not believe that these can or should be achieved at the expense of social, environmental and moral considerations. Indeed a long-term business such as ours will only thrive if it also takes into account the needs of other stakeholders such as governments, employees, suppliers, communities and customers.

.ta&eholders
-n important process used by -nglo -merican is that of sta&eholder engagement. )his enables it better to understand the perspecti#es and priorities of external groups

that are affected by its acti#ities and to factor them into its decision-ma&ing processes. )o support this wor& at a local le#el, -nglo -merican has de#eloped a .ocio-+conomic -ssessment )oolbox or .+-) process. )his 1toolbox2 helps managers to measure the impact of acti#ities on the company and communities. "t also helps to impro#e a mine2s contribution to de#elopment through, for example, using its supply chain needs to generate new businesses or to impro#e the water or electricity infrastructure. )hey use this toolbox to engage with sta&eholders including community representati#es. .ometimes communities ha#e to be resettled, with go#ernment sanction, in order for important mineral deposits to be accessed. )his can cause contro#ersy and di#isions in the communities concerned. "nternational best practice sets out a number of &ey stages in such a process including the need for structured consultation, fair compensation and the importance of restoring and enhancing the li#elihoods of people in their new locations. 8ecently -nglo -merican has had to underta&e two such relocations in .outh -frica at the #illages of 'a>ila and 7otlhotlo. )hese were underta&en with the support of the pro#incial go#ernment and local tribal leadership and after consultation with local people lasting for se#eral years leading to agreement with each householder. ?ew #illages ha#e been built with better houses and infrastructure and more land for farming. )he relocation programme was #oluntary. )he relocation programme at 7otlhotlo is still under way but at 'a>ila HGJ of those li#ing in the old #illage too& up the offer to mo#e to the new #illage.

What does it mean to be an ethics-based religion?

Human beings thrive in cultures where people treat each person as unique and essential and elicit the inherent gifts and talents from within everyone. The most beneficial culture for human beings is one based on the ethical values that have been proclaimed by every religion as "God's laws": truth, justice, love, honesty, forgiveness, responsibility, freedom, integrity, reverence, gratitude, generosity, joy, hope, courage, and peace. These are the conditions that allow people to thrive. What you value (e.g., family, education, music, money, social progress, pleasure, truth, love, justice) has determined who you are. Aware of this, you can decide what kind of life and world to cultivate in the future by a commitment of intention and by mastering the necessary skills. Once you clarify your value intentions and master ethical skills, you can provide leadership in everyday life situations to create a more ethical culture by eliciting the best from yourself, your family, workplace, community, and the world.

@CDD38&'
+ssentially, according to Buddhist teachings, the ethical and moral principles are go#erned by examining whether a certain action, whether connected to body or speech is li&ely to be harmful to one:s self or to others and thereby a#oiding any actions which are li&ely to be harmful. "n Buddhism, there is much tal& of a s&illed mind. - mind that is s&ilful a#oids actions that are li&ely to cause suffering or remorse. 7oral conduct for Buddhists differs according to whether it applies to the laity or to the .angha or clergy. - lay Buddhist should culti#ate good conduct by training in what are &nown as the KBi#e >receptsK. )hese are not li&e, say, the ten commandments, which, if bro&en, entail punishment by 'od. )he fi#e precepts are training rules, which, if one were to brea& any of them, one should be aware of the breech and examine how such a breech may be a#oided in the future. )he resultant of an action 3often referred to as Karma4 depends on the intention more than the action itself. "t entails less feelings of guilt than its Ludeo-@hristian counterpart. Buddhism places a great emphasis on :mind: and it is mental anguish such as remorse, anxiety, guilt etc. which is to be a#oided in order to culti#ate a calm and peaceful mind. )he fi#e precepts are9 :- To %nd"r!ak" !h" !rainin# !o a5oid !akin# !h" i0" o0 2"in#s . )his precept applies to all li#ing beings not just humans. -ll beings ha#e a right to their li#es and that right should be respected. ;- To %nd"r!ak" !h" !rainin# !o a5oid !akin# !hin#s no! #i5"n . )his precept goes further than mere stealing. (ne should a#oid ta&ing anything unless one can be sure that is intended that it is for you. <- To %nd"r!ak" !h" !rainin# !o a5oid s"ns%a mis$ond%$!. )his precept is often mistranslated or misinterpreted as relating only to sexual misconduct but it co#ers any o#erindulgence in any sensual pleasure such as gluttony as well as misconduct of a sexual nature. =- To %nd"r!ak" !h" !rainin# !o r"0rain 0rom 0a s" s+""$h. -s well as a#oiding lying and decei#ing, this precept co#ers slander as well as speech which is not beneficial to the welfare of others. >- To %nd"r!ak" !h" !rainin# !o a2s!ain 0rom s%2s!an$"s whi$h $a%s" in!o?i$a!ion and h""d "ssn"ss.)his precept is in a special category as it does not infer any intrinsic e#il in, say, alcohol itself but indulgence in such a substance could be the cause of brea&ing the other four precepts. )hese are the basic precepts expected as a day to day training of any lay Buddhist. (n special holy days, many Buddhists, especially those following the )hera#ada tradition, would obser#e three additional precepts with a strengthening of the third precept to be obser#ing strict celibacy. )he additional precepts are9 @- To a2s!ain 0rom !akin# 0ood a! ina++ro+ria!" !im"s4 )his would mean following the tradition of )hera#adin mon&s and not eating from noon one day until sunrise the next. A- To a2s!ain 0rom dan$in#7 sin#in#7 m%si$ and "n!"r!ainm"n!s as w" as r"0rainin# 0rom !h" %s" o0 +"r0%m"s7 ornam"n!s and o!h"r i!"ms %s"d !o adorn or 2"a%!i0) !h" +"rson . -gain, this and the next rule.

B- To %nd"r!ak" !h" !rainin# !o a2s!ain 0rom %sin# hi#h or %?%rio%s 2"ds are rules regularly adopted by members of the .angha and are followed by the layperson on special occasions.

>A8?8&'

Intr du-ti nB / student of science studies, observes, performs e#periments and develops a theory to e#plain the results of his observations and e#periments. Then the scientist designs further e#periments to test the theory. This is the scientific process. It is a rational approach to uncover the secrets of nature. The ancient Indian sages have followed a similar approach to decipher the nature of reality. The religions of Indian origin evolved in ancient times through open,minded, unbiased, philosophical endeavors. Conse-uently, highly sophisticated, philosophical systems form the basis of Indian religions. Painism, li e 1induism and Buddhism, is based on a rational philosophical system. /s is usual, a mantle of aberrations, myths and legends envelops the fundamental tenets of Painism. =or this reason, an individual has to loo deep to get a glimpse of the pristine spirit of Painism. =urther, an individual has the liberty to select what conforms to hisLher e#perience and common sense. /charya?und und, who lived about .<<< years ago, writesK).* I am presenting a comprehensive nowledge of soul as differentiated from e#ternal ob5ects based on my understanding and e#perience. /ccept it if )in your estimation* it satisfies the condition of authenticity )PE/I//;*. But if I fail in my description, re5ect it. The above observation of /charya?und und, stating that an individual should understand reality from hisLher own viewpoint, conforms to the Pain principle of relativism )SG//"/+//"*, which statesK Eeality in its totality cannot be grasped by us. Hnly a universal observer )omniscient* can comprehend it completely. Get even for an omniscient, it is impossible to now it and e#plain it without a standpoint or a viewpoint.)0* /s a result of rational philosophical in-uests by various ancient sages, the great river of Indian religion and culture evolved two parallel strands, the tradition of the +edas )+'"IC* and the tradition of the self,reliant )S1E/I/;*. Painism is a religion of the self,reliant )S1E/I/;*. It believes in self,endeavor, as opposed to the hand of a supreme being, for spiritual uplift and happiness. The various schools of thought of the +'"IC system believe in a supreme being who regulates the events in the universe. Painism, on the other hand, believes that all things and events in the universe follow the laws of nature and all transformations of the entities of the universe occur on account of their mutual interactions according to their respective intrinsic attributes. /charya?und und writesK)2*

The qualities or attributes of one substance cannot be generated by another substance. Therefore, all substances of the uni erse e ol e in accordance !ith their o!n nature. In ancient times, the +'"IC and S1E/I/; ideologies along with others, including atheism, have e#isted side by side. Terms li e 1induism and Painism were not prevalent. There was no competition between the various schools of thought although there were healthy philosophical discussions and e#change of ideas among them. There was mutual understanding and respect for others4 viewpoints. The ancient Indian sages saw no need for conversion. The great Pain /charyaSiddhasen"iwa ar )3th century /.".* writes,)3* Q/ll schools of thought are valid when they are understood from their own standpoint, insofar as they do not discard the truth,value of others. The nower of non,absolutism does not divide them into true and false. They become false when they discard the truth, value of others.Q Thus the religions of Indian origin have been models of tolerance. Eationalism is the cornerstone of the Pain religion. It is the essence of the religion and its practice. In the ancient Pain te#t, T/TT+//ET1 SUTE/, /charyaUmaswati writesK)6* Eational perception )S/IG/? "/ES1/;*, rational nowledge )S/IG/? P;//;* and rational conduct )S/IG/? C1//EITE/* together constitute the path to salvation. In the ne#t aphorism, /charyaUmaswati defines rational perception in the following wordsK)7* Belief in reality, that is, substances ascertained as they are, is rational perception. /n individual adopts rational perception through insightful thin ing as stated in the following aphorism of T/TT+//ET1 SUTE/K)9* Eational perception is achieved through intuition );IS/EG* or through ac-uisition of reasoned nowledge )/"1IG/I*. Insightful mental activity includes e#ercise of intuition and logical intellectual activity. This is further clarified by /charyaUmaswati in the following aphorismK ):* Eeasoned nowledge )/"1IG/I* of the aspects of reality is ac-uired through e#perimentation )PE/I//;* and logical thin ing );/G/*. '#perimentation means information and evidence obtained through the study of scriptures, observation of nature and e#perience.

Hbviously, rational perception entails study, observation and e#perimentation with an open unbiased attitude. It avoids all preconceived notions and blind adherence to any faith or individual. ?nowledge obtained through such an approach is rational nowledge and the conduct conforming to rational perception and rational nowledge is rational conduct. This is the way to attain salvation );IE+/;/* , freedom from the miseries of the worldly e#istence. /lthough rationalism is considered to be the path to salvation , the ultimate goal of religious pursuit, /charyaUmaswati allows for an important variation in thin ing of some individuals who may not believe in salvation or heaven or hell. In the te#t, PE/S1/I/E/TI PE/?/E/;, the insightful acharya statesK)(<* The happiness of heaven is indirect , it is beyond our e#perience. Thus we may be disinterested in it. The happiness of salvation );IE+/;/* is even more indirect. 1ence we may have doubts about it. Hn the other hand, the peace and calm brought about by religion can be directly e#perienced right here. $e are free to attain this happiness, which is the fruit of freedom of spirit. $e do not have to buy it with money. $e achieve this happiness by ta ing a dip in the stream of satisfaction and balanced emotions. This statement presents the epitome of the spirit of the Pain religion. If one4s e#perience and common sense do not lead the self to believe in heaven )or hell* or in the state of salvation, one has the freedom not to accept these concepts. ;evertheless, one can attain the same e-uanimity and happiness in life as any other individual who believes in heaven and salvation. Hther Indian philosophies harbor similar concepts as well. 4ain C n-e%t ! Realit1B /ccording to Painism, the aspects of reality are souls )P''+s, animate entities*, the inanimate entities )/P''+* such as matter, energy, space and time, influ# of armic particles towards worldly souls )//S1E/+*, bondage of armic particles )B/;"1*, stoppage of armic particles )S/I+/E*, shedding of armic particles by worldly souls );IEP/E/* and liberation from armic bondage )IH?S1/*. 'vidently, the last five aspects of reality involve mutual interactions between the living )P''+* and non,living )/P''+* entities. The Pain theory of arma is based on the interactions between worldly souls and their animate and inanimate environment. /ll worldly souls possess physical bodies and certain ultra fine particles of matter called armas. $hen a worldly soul, through self,endeavor, frees itself from all material bondage, including that of armas, it becomes liberated. / liberated soul does not interact with any other entity of the universe such as another liberated or worldly soul, matter, space or time. This is the concept of ;IE+/;/ )IH?S1/* in Painism. Hn the other hand, an e#change of material particles, including the arma particles, continuously goes on between a worldly

soul and its environment, as stated by /charya;emi Chandra SiddhantCha ravartiK )((* "ue to the association of the body, armic particles and pseudo, armas are accumulated by a worldly soul at all times, 5ust as a hot ball of iron attracts water. The pseudo, armas consist of animate and inanimate environment and the circumstances in the life of a worldly soul. /t times, pseudo, armas, which may be beyond anybody4s control, may prove to be the determining factors )au#iliary causes, ;IIITT/* in molding the course of the life of a living being. The influ# of arma particles is caused by the activities of body, speech and mind )GHG/* while the duration and intensity of fruition are determined by the four passions of anger, pride, intrigue and greed as described by /charya;emi Chandra SiddhantCha ravartiK)(.* The nature and -uantity of the influ# of arma particles depend on the thought, activity )GHG/*, and duration and intensity of fruition of armic bonding, by passions )?/S1//G/*. In the spiritual states where deluding armas e#ist in a passive or destroyed state, there is no cause for bonding of any ind. In T/TT+//ET1 SUTE/, /charyaUmaswati has elucidatedK)(0* The nature and intensity )T''+E/,I/;"* of desire or thought,activity, intentional or unintentional character of activity )P;//T,/P;//T*, dependence of the act involving living and non,living substances )/"1I?/E/;* and one4s own potentiality )+''EG/* determine the ind of arma and the amount of armic influ#. It should be emphasi8ed that, as the interactions between matter and energy occur according to the laws of nature, so do the interactions between a worldly soul and material arma particles. The transformations in a soul occur due to the potentiality and intrinsic attributes of soul, while the transformations in armic particles ta e place according to the innate -ualities of matter. /charya?und und has presented these concepts in the following -uotations from P/;C1//STI?//G/S//EK )(2* The emotional states of a living being are caused by arma particles and arma particles in their turn are caused by the emotional states. 1owever, the soul is not the intrinsic cause and yet without intrinsic cause these changes cannot occur. Soul which brings about changes in itself is the intrinsic cause of the mental states but the soul is not the intrinsic cause of the changes in the arma particles, which are material in nature. This is the teaching of PI; , the con-ueror of passions.

The changes in arma particles occur due to the intrinsic nature of material particles. Similarly, the changes in a worldly soul occur due to the intrinsic characteristics of soul and through its own impure states of thought, which are conditioned by arma. It should be remar ed that the Pain theory of arma is much more sophisticated than 4as you sow, so you reap4. In the first place, it is not 5ust the action but also one4s emotional states )thoughts, feelings and passions* that determine the ind of arma accumulated by a worldly soul. =urther, the conse-uences )fruition* of arma associated with the soul can be modified by an individual by regulating hisLher emotional states. Thus, in most cases, the conse-uences of past or present armas can be transformed by a worldly being. =or e#ample, in GHII/T/S//E ?/EI/?//;", /charya;emi Chandra SiddhantCha ravarti describes five inds of transferenceK)(3* The following five inds of transference )S/;?E/I/;* of armas ta e place through the thought,activities of the worldly beingK (. Juality )U"+'!/;* transference , transference of one subclass of arma into another subclass without the following three inds of thought,activitiesK downward )/"1/1*, new )/PHHE+/* and advanced )/;I+EITTI* .. =ruition )+I"1G//T* transference , reduction in duration and intensity occurring on account of slight purity of thoughts 0. Subclass )/"1/1PEI+EITTI* transference , transference of one subclass of arma into another subclass of arma of the same ind during bonding 2. Juantity )GU;/* transference , transference in which the number of arma particles changes by several orders of magnitude 3. Total )S/E+/* transference , transference of all material arma particles associated with soul

<n% '+
&<59&& 'A?AG9'9?<
"ntroducing .tress 7anagement

)here are #ery many pro#en s&ills that we can use to manage stress. )hese help us to remain calm and effecti#e in high pressure situations, and help us a#oid the problems of long term stress. 1ha! S!r"ss Is444 /"0ini!ions )his is a dangerous topicM )here ha#e been many different definitions of what stress is, whether used by psychologists, medics, management consultants or others. )here seems to ha#e been something approaching open warfare between competing definitions9 Aiews ha#e been passionately held and aggressi#ely defended. *hat complicates this is that intuiti#ely we all feel that we &now what stress is, as it is something we ha#e all experienced. - definition should therefore be ob#iousN except that it is not. Pro2 "ms o0 /"0ini!ion (ne problem with a single definition is that stress is made up of many things9 "t is a family of related experiences, pathways, responses and outcomes caused by a range of different e#ents or circumstances. /ifferent people experience different aspects and identify with different definitions. 6ans .elye 3one of the founding fathers of stress research4 identified another part of this problem when he saw that different types of definition operate in different areas of &nowledge. )o a lawyer or a linguist, words ha#e #ery precise, definite and fixed meanings.
"n other fields, ideas and definitions continue e#ol#ing as research and &nowledge expands.

.elyeOs #iew in HDE was that 1stress is not necessarily something bad P it all depends on how you ta&e it. )he stress of exhilarating, creati#e successful wor& is beneficial, while that of failure, humiliation or infection is detrimental.2 .elye belie#ed that the biochemical effects of stress would be experienced irrespecti#e of whether the situation was positi#e or negati#e. .ince then, ideas ha#e mo#ed on. "n particular, the harmful biochemical and longterm effects of stress ha#e rarely been obser#ed in positi#e situations.

Th" $%rr"n! $ons"ns%s

?ow, the most commonly accepted definition of stress 3mainly attributed to 8ichard . La0arus4 is that s!r"ss is a $ondi!ion or 0"" in# "?+"ri"n$"d wh"n a +"rson +"r$"i5"s !ha! d"mands "?$""d !h" +"rsona and so$ia r"so%r$"s !h" indi5id%a is a2 " !o mo2i i9"4 >eople feel little stress when they ha#e the time, experience and resources to manage a situation. )hey feel great stress when they thin& they can:t handle the demands put upon them. .tress is therefore a negati#e experience. -nd it is not an ine#itable conse;uence of an e#ent9 "t depends a lot on people:s perceptions of a situation and their real ability to cope with it.

)his is the main definition used by this site, although we also recogni0e that there is an intertwined instincti#e stress response to unexpected e#ents. )he stress response inside us is therefore part instinct and part to do with the way we thin&.

1HAT STRESS IS . THE UN/ERLYING MECHANISMS444 )here are two types of instincti#e stress response that are important to how we understand stress and stress management9 the short-term 1Bight-or-Blight2 response and the long-term 1'eneral -daptation .yndrome2. )he first is a basic sur#i#al instinct, while the second is a long-term effect of exposure to stress. - third mechanism comes from the way that we thin& and interpret the situations in which we find oursel#es. -ctually, these three mechanisms can be part of the same stress response P we will initially loo& at them separately, and then show how they can fit together. 8'i#h!.or.' i#h!6 .ome of the early wor& on stress 3conducted by *alter @annon in H%$4 established

the existence of the well-&nown fight-or-flight response. 6is wor& showed that when an animal experiences a shoc& or percei#es a threat, it ;uic&ly releases hormones that help it to sur#i#e. )hese hormones help us to run faster and fight harder. )hey increase heart rate and blood pressure, deli#ering more oxygen and blood sugar to power important muscles. )hey increase sweating in an effort to cool these muscles, and help them stay efficient. )hey di#ert blood away from the s&in to the core of our bodies, reducing blood loss if we are damaged. -nd as well as this, these hormones focus our attention on the threat, to the exclusion of e#erything else. -ll of this significantly impro#es our ability to sur#i#e life-threatening e#ents. Pow"r7 2%! i!! " $on!ro 444 <nfortunately, this mobili0ation of the body for sur#i#al also has negati#e conse;uences. "n this state, we are excitable, anxious, jumpy and irritable. )his reduces our ability to wor& effecti#ely with other people. *ith trembling and a pounding heart, we can find it difficult to execute precise, controlled s&ills. -nd the intensity of our focus on sur#i#al interferes with our ability to ma&e fine judgments based on drawing information from many sources. *e find oursel#es more accident-prone and less able to ma&e good decisions. "t is easy to thin& that this fight-or-flight, or adrenaline, response is only triggered by ob#iously life-threatening danger. (n the contrary, recent research shows that we experience the fight-or-flight response when simply encountering something unexpected. )he situation does not ha#e to be dramatic9 >eople experience this response when frustrated or interrupted, or when they experience a situation that is new or in some way challenging. )his hormonal, fight-or-flight response is a normal part of e#eryday life and a part of e#eryday stress, although often with an intensity that is so low that we do not notice it. )here are #ery few situations in modern wor&ing life where this response is useful. 7ost situations benefit from a calm, rational, controlled and socially sensiti#e approach. (ur 8elaxation )echni;ues section explains a range of good techni;ues for &eeping this fight-or-flight response under control. Th" G"n"ra Ada+!a!ion S)ndrom" and (%rno%! 6ans .elye too& a different approach from @annon. .tarting with the obser#ation that different diseases and injuries to the body seemed to cause the same symptoms in patients, he identified a general response 3the 1'eneral -daptation .yndrome24 with which the body reacts to a major stimulus. *hile the Bight-or-Blight response wor&s in the #ery short term, the 'eneral -daptation .yndrome operates in response to longer-term exposure to causes of stress. .elye identified that when pushed to extremes, animals reacted in three stages9

. $.

Birst, in the -larm >hase, they reacted to the stressor. ?ext, in the 8esistance >hase, the resistance to the stressor increased as the animal adapted to, and coped with, it. )his phase lasted for as long as the animal could support this heightened resistance. %. Binally, once resistance was exhausted, the animal entered the +xhaustion >hase, and resistance declined substantially. .elye established this with many hundreds of experiments performed on laboratory rats. 6owe#er, he also ;uoted research during *orld *ar "" with bomber pilots. (nce they had completed a few missions o#er enemy territory, these pilots usually settled down and performed well. -fter many missions, howe#er, pilot fatigue would set in as they began to show 1neurotic manifestations2. "n the business en#ironment, this exhaustion is seen in 1burnout2. )he classic example comes from the *all .treet trading floor9 by most peopleOs standards, life on a trading floor is stressful. )raders learn to adapt to the daily stressors of ma&ing big financial decisions, and of winning and losing large sums of money. "n many cases, howe#er, these stresses increase and fatigue starts to set in. -t the same time, as traders become successful and earn more and more money, their financial moti#ation to succeed can diminish. <ltimately, many traders experience burnout. *e loo& at this in more detail in our section on burnout. . S!r"ss and !h" wa) w" !hink >articularly in normal wor&ing life, much of our stress is subtle and occurs without ob#ious threat to sur#i#al. 7ost comes from things li&e wor& o#erload, conflicting priorities, inconsistent #alues, o#er-challenging deadlines, conflict with co-wor&ers, unpleasant en#ironments and so on. ?ot only do these reduce our performance as we di#ert mental effort into handling them, they can also cause a great deal of unhappiness. *e ha#e already mentioned that the most common currently accepted definition of stress is something that is experienced when a person percei#es that 1demands exceed the personal and social resources the indi#idual is able to mobili0e.2 S!r"ss7 a ma!!"r o0 C%d#m"n! "n becoming stressed, people must therefore ma&e two main judgments9 firstly they must feel threatened by the situation, and secondly they must doubt that their capabilities and resources are sufficient to meet the threat. 6ow stressed someone feels depends on how much damage they thin& the situation can do them, and how closely their resources meet the demands of the situation. )his sense of threat is rarely physical. "t may, for example, in#ol#e percei#ed threats to our social standing, to other peopleOs opinions of us, to our career prospects or to our own deeply held #alues.

Lust as with real threats to our sur#i#al, these percei#ed threats trigger the hormonal fight-or-flight response, with all of its negati#e conse;uences. Building on this, this site offers a #ariety of approaches to managing stress. )he na#igation bar in the left hand column offers a range of practical methods for managing these stresses by tac&ling them at source. "t also offers some powerful tools for changing your interpretation of stressful situations, thereby reducing the perception of threat.

OVERALL EFFECTS OF ORGANIEATIONAL STRESS

Or#ani9a!iona s!r"ss $an ha5" a +ro0o%nd "00"$! on +rod%$!ion and mo!i5a!ion in !h" work+ a$"4 1orri"s a2o%! Co2 s"$%ri!) or !h" d"mands o0 a h"a5) work oad in$r"as" s!r"ss "5" s and $a%s" a 5ari"!) o0 "mo!iona and +h)si$a ai m"n!s4 1h"n s!r"ss 0a$!ors7 or s!r"ssors7 ar" $o%+ "d wi!h in"00"$!i5" or %n$arin# mana#"m"n!7 s!r"ss $an 2"$om" a +ro2 "m !ha! "?!"nds !o !h" "n!ir" d"+ar!m"n! or $om+an)4 Id"n!i0)in# si#ns o0 or#ani9a!iona s!r"ss is !h" 0irs! s!"+ in d"si#nin# a s!ra!"#) !o addr"ss +ro2 "ms4 +@ Health E!!e-ts Stress causes a variety of health problems, including high blood pressure, upset stomach, ulcers, headaches, palpitations, fatigue, sweating, weight changes, diarrhea, nausea, di88iness, dry mouth, appetite changes, se#ual problems, stiff nec , muscle aches and bac pain. If you are stressed, you might feel tired all the time, no matter how much you sleep, or you might have trouble sleeping at night. Poor emotional health can wea en your body&s immune system, ma ing you more li ely to contract colds and other infections. These health problems can in-rease # r* a;senteeis"> usa'e ! health insuran-e and # r*$related

a--idents& .@ , r ,er! r"an-e

S!r"ss a so $an a00"$! )o%r a2i i!) !o +"r0orm )o%r Co2 w" 4 S!r"ss $an mak" i! di00i$% ! !o $on$"n!ra!" on $om+ "? +ro2 "ms or iss%"s7 and i! mi#h! a00"$! m"mor)4 Yo% mi#h! n"# "$! !o $om+ "!" $"r!ain im+or!an! !asks or 0or#"! !o +"r0orm a k") +ar! o0 a +ro$"d%r"4 I0 )o% donD! 0"" as i0 mana#"m"n! s%++or!s or "m+ow"rs )o%7 )o% mi#h! 0"" !ha! no r"ason "?is!s !o do )o%r 2"s! work4 S!r"ss $an "ad !o 0"" in#s o0 n"#a!i5i!)7 a$k o0 "n!h%siasm and a+a!h)4 1h"n )o% "?+"ri"n$" !h"s" 0"" in#s7 )o% mi#h! no on#"r $ar" a2o%! doin# a #ood Co24 Unmet '#pectations and "eadlines If you feel overwhelmed and e#hausted, then meeting e#pectations or deadlines can be difficult. The effects of stress on your cognitive abilities can affect your ability to prioriti8e, and it can be difficult to decide which pro5ect should ta e priority. =eeling that you have no control or input into your wor also can affect your ability to complete tas s in a timely manner. $or ers are less li ely to e#perience wor stress when they have more control over their wor , have more control over the way they do their wor and participate more in decisions that concern their 5obs.

/@ Turn (er
$hen stress ma es wor ing for a company an unpleasant e#perience, employees begin to loo for new 5obs or consider retirement. The loss of e#perienced employees can cause decreases in production and increases in costs associated with recruiting, hiring and training new wor ers. / high turnover rate also can ma e replacing stressed employees difficult for a company. Eecruiting new employees can be challenging if prospective employees hear that the company4s wor ing environment is stressful.

Stress Management Techniques and Practices

<here are many different ways to mana e stress" @asically! itFs #est to eliminate as many stressors as you can! and find practical and emotional ways to #etter handle the stressors that are left" <he followin are amon the simplest and most effective stress mana ement techniques! arran ed in a simple format" 8 ur e you to try as many as you can! keepin an open mind! so you can have a collection of techniques that are the most effective for you" =ouFll also find resources #elow to help you incorporate healthy chan es and create a lower$stress lifesty

1)

Feel Better Now

8f you want to lower your stress level in a matter of minutes! these techniques are all relatively fast$actin " Cse them as needed to feel #etter quicklyH practice them re ularly over time and ain even reater #enefits"

Breathing '#ercises Ieditation Eeframing $ith a Sense of 1umor Iusic Progressive Iuscle Eela#ation )PIE* Goga '#erciseGuided Imagery L +isuali8ations Pournaling Cognitive EestructuringK =inding Perspective

2)

Take Care of ourself

When weFre stressed! we donFt always take care of our #odies! which can lead to even more stress" 3ere are some important ways to take care of yourself and keep stress levels lower"

1ealthy 'ating,,. Good ;utrition

Better Sleep '#ercise 1ealthy Se# !ife

1obbies

!)

Maintaining The "ight #ttitude

(u,- of 7our e@#er en,e of s%ress -"s %o do w %- 7our "%% %ude "nd %-e w"7 7ou #er,e !e 7our l fe:s e!en%sE Here "re so$e resour,es %o -el# 7ou $" n%" n " s%ress'rel e! n) "%% %udeE Hptimism Being In Control Hvercoming Perfectionism Using The !aw of /ttraction 1ow To Be 1appier Positive /ffirmations Iaintaining a Sense of 1umor Iindfulness and Stress Eelief !etting Go of Stressful Thoughts !etting Go of /nger Tips on 1aving =un

$)

Creating The "ight #tmos%here

Your #-7s ,"l "nd e$o% on"l surround n)s ,"n $#",% 7our s%ress le!els n su;%le ;u% s )n f ,"n% w"7sE Here "re se!er"l w"7s 7ou ,"n ,-"n)e 7our "%$os#-ere "nd less 7our s%ressE Soothing 'nvironment Iusic "e,Cluttering /romatherapy Positive 'nergy Create a 1ome Spa

&)

"esources for Bus' Peo%le

'any stressed people are #usy people$$people who may have more stressors in their lives (#ecause they have more activity in their lives)! and less time to devote to stress mana ement" 8f youFre a #usy person! these resources can help you to mana e stress efficiently in a short amount of time! and eliminate some of whatFs causin you stress in the first place"Hngoing Stress Eeduction Eesources Time Ianagement =inding Time

()

)ealth' )a*its

.ertain routines can help #uffer you from stressH if you adopt a few of them! you can more easily mana e stress without it #ecomin severe" <he followin are some healthy ha#its you may want to adopt! alon with resources to make it easier to make them a lastin part of your life"

Iorning 1abits 1abits for Better Sleep 1ow To Stic $ith ;ew 1abits ' Courses

Choosing The Eight 1abits

+)

,nteracti-e "esources

8Fve found that the readers on this site (thatFs youM) have a lot of wisdom and have learned quite a #it from mana in their stressors so far" 3ere you will find Freader wisdomF articles that allow you to read other readerFs #est advice and e6periences! and add your ownH interactive tools for assessin and mana in your stressH on oin resources that can help you to learn more a#out stress mana ement and put what youFve learned into practiceH polls to tell you what others are e6periencin and thinkin a#out stressH and more ways to really et involved with stress mana ement" WeFd love to hear from youM

Eeaders, EespondK See Hther Eeader4s $isdom and Share Gour HwnR Stress PollsK / =un $ay To Chec Public Hpinion The Stress Ianagement BlogK Eead /bout Stress and Share Gour Comments =ree Jui88es, /ssessments and Personality Tests Get The =ree $ee ly ;ewsletter and ' Courses Hngoing Eesources for Stress Ianagement

HO1 GOO/ IS YOUR ANGER MANAGEMENT3

*e all get angry. "t:s a normal emotion. 6owe#er, some of us handle our anger better than others. *hile one person might be a bit unhappy when someone cuts him off in traffic, another is so angry that he shouts and swears, and starts dri#ing aggressi#ely himself. 6ow can the same e#ent cause such different reactionsQ -nd how can you ma&e sure that your reaction is the calm one, instead of the wild oneQ

Mana#" Yo%r An#"r Cons!r%$!i5" ) )he goal of anger management is not to eliminate anger completely9 that isn:t possible, since it:s a natural human emotion. 8ather, the objecti#e is to control and direct your anger P so that it doesn:t control you, or damage an important relationship or situation. "n An'er Mana'e"entB Channellin' An'er int ,er! r"an-e , we discuss 8edford *illiams: steps for controlling anger. )here are three &ey elements to these9 . <nderstanding what causes your anger. $. 8educing your angry reactions. %. @ontrolling your anger when you experience it.

Und"rs!and 1ha! Ca%s"s Yo%r An#"r 3=uestions , G and %4 (ne of the most effecti#e approaches for managing anger is to identify the sources of the anger you experience. (nce you &now what ma&es you angry, you can de#elop strategies for dealing with it. *hen you:re in the middle of a bad situation, it:s hard to thin& logically and rationally, so understanding what causes your anger can help you plan how to deal with it.

Use a diary or Qanger logN to write down the times, people, and situations that ma e you angry. !oo for trends, or things that ma e you angry often. /s yourself why these things ma e you angry. "o you connect certain memories to these sources of angerF "o you feel that goals are being frustrated, or that something important to you is being threatenedF

R"d%$" Yo%r An#r) R"a$!ions *hile you probably won:t eliminate anger completely, you can certainly reduce the fre;uency and scope of your anger. )he less angry you are in general, the more control you:ll ha#e o#er your emotions. .ince much of our anger can come from frustration and stress, if you wor& on ways to ease and reduce these causes of frustration and stress, you:ll reduce the amount of anger in your life.

Use ,r ;le" S l(in' S*ills )Juestions 0, 3, and (2* / great way to reduce stress is to improve your %r ;le" s l(in' s*ills. $e sometimes feel that everything we do needs to be correct and turn out well, and this can be frustrating when things don4t turn out as they should. Instead of e#pecting yourself always to be right, commit to doing your best. That way you can be proud of your effort even if the end result isn&t what you want. /lso, accept that when something doesn4t wor out, the world usually won4t end. Sometimes you 5ust need to rela# and not let things bother you. $e may thin that we should have an answer for everything D but the truth is, we don4tR Use C ""uni-ati n S*ills )Juestions 7, (., (3, and (9* Gou can also reduce anger by improving your - ""uni-ati n s*ills. $hen you relate well to other people, e#press your needs, and tal about issues that bother you, you deal with potential anger proactively.

Build e"%ath1 D $hen you understand another person4s perspective, it helps you analy8e the situation ob5ectively and understand your role in the conflict. /ccept that you may not always now bestR !earn to trust others D /ssume the best in people, and don4t ta e their actions personally. !isten D Use a-ti(e listenin' to consider what the other person has to say, and then thin before you spea . In many situations, the best way to deal with anger is to accept it, and then find ways to move forward. This can protect your relationships with people, and it allows you to ac nowledge your feelings. Be assertive, not aggressive D By improving your asserti(eness s*ills , you can reduce the frustration that you feel when your needs aren4t being met.

$hen you now how to as for what you want, you4ll generally feel more in control, and less li ely to say things that you4ll later regret.

Ti./
"on4t try to communicate when you4re still upset. See the ne#t section on controlling your anger for ideas on how to do this. Release F ur An'er )Juestions ., 9, ((, and (6* Gou can reduce the li elihood of losing control by releasing the anger that you4ve built up. $hen you get rid of angry feelings on a regular basis, you4ll feel calmer and more even,tempered, and you4ll be more able to deal with the ups and downs of daily life. Gou can do a variety of things to release your anger, including the followingK Ta e (< deep breaths. It really does wor R "o some physical activity D wal , run, swim, play golf, or do some other sport. This can be great for releasing the stress and frustration you4ve built upR Use a punching bag or a pillow to physically e#press your anger )in a way that4s not harmful*. "o yoga, or another rela#ing form of e#ercise. Participate in a fun activity or hobby. Use a 5ournal andLor art to e#press your feelings. =orgive. /t some point, it helps to let go and move on with a fresh attitude. Some people believe that they have to hold their anger in to control it. This is not is an effective anger management strategy. 'ven if you don4t show anger to others, that emotion has to go somewhereK it can be stubborn, and it usually doesn4t go away on its own.

Con!ro Yo%r An#"r 1h"n Yo% E?+"ri"n$" I! *hen you start to feel angry, what do you doQ @ontrolling yourself in a bad situation can be difficult, and your actions will ha#e conse;uences. +xternal reactions P li&e &ic&ing and screaming P don:t help. You may feel good for a little while, but later, you:ll surely feel foolish and sorry. -lso, you may do permanent damage to relationships and your reputation. *hen you feel that you can:t hold your anger in any longer, here are some great strategies to try9

Chan'e F ur En(ir n"ent Ta e a brea and physically remove yourself from the conflict. Go to another room, go for a wal , or count to (<. This may give you time to gain perspective and simply calm down. !earn to avoid situations that you now will cause your anger. If you don4t li e your teammate4s messy des , don4t go into her office.

If you regularly do something that ma es you angry, try to find something else to do in its place. =or e#ample, if the crowded elevator upsets you every morning, ta e the stairs. Use Hu" r Thin of something funny to say )but don4t be rude or sarcastic*. Try to see the funny side of the situation. Imagine the other person in a silly situation. !earn to laugh at yourself. Smile. It4s hard to be angry with a smile on your face. Cal" F ursel! ,h1si-all1 Use physical rela#ation techni-ues. Ta e slow, deep breaths and concentrate on your breathing. Tighten and release small muscle groups. =ocus on your hands, legs, bac , and toes. Eepeat a word or phrase that reminds you to stay in control and remain confident. =or e#ample, say, QGou4ll get through this. Eela#R Gou4re doing a great 5obRQ Practice i"a'er1 techni-ues. Use your imagination or memory to visuali8e a calming place or situation. If your anger is truly out of control, you may want to see professional support. The effects of uncontrolled anger can be very harmful D to yourself and to those around you. "on4t let it get to that point. ?ey Points

It is natural to feel, e#press, and release anger. 1owever, there are appropriate ways to do so D and that4s what anger management is all about. Gou can get a strong insight into your anger issues by understanding what ma es you angry. =rom there, you can create a plan to minimi8e frustration and anger in your life. $hen you do get angry, there are many approaches you can try to calm down D including changing your environment, using humor, and practicing rela#ation techni-ues. It4s also important to release your anger on a regular basis. "on4t let your anger control you. Instead, face it D and ta e bac control of anger D and of your lifeR

<n %'.

Ps'chothera%' Through psychotherapy individuals may address mental or emotional distress by looking, most often with the help of a trained therapist, at their own mental processing and identifying problematic or self-defeating patterns. Individuals may develop understanding about the nature and process of their own experience and their cognitive, emotional and spiritual development. While employing eclectic methods of client-centered psychotherapy, the method I often find most useful is known as Gestalt or whole therapy. The goal of this kind of theapy is to promote awareness. ! client may learn to see their own behavior and its effects from a new perspective. ! typical counseling session may involve exploration of the various states of one"s body, spirit, thoughts, emotions, and relationships. In collaboration, we may consider these areas separately, exploring #oys and struggles in each. We will aim to identify strategies for aiding the developmental process, to assist you in the process of becoming more truly yourself. $ltimately, I hope to see clients achieve a sense of contentment with and curiosity about the world. Therapy may be an effective way to process difficult emotions associated with grief, loss, change and development. %sychotherapy may also help in controlling impulses, balancing moods and overcoming obsessive thought patterns. &argi 'lifford, (%', )*T, received graduate training in 'ounseling %sychology at !laska %acific $niversity. +he is (icensed by The +tate of !laska as a %rofessional 'ounselor and )egistered with *oga !lliance as a certified instructor of ,atha *oga. 1HAT IS YOGA

Ori#ina!"d in an$i"n! India7 Yo#a !)+i$a ) m"ans E%nionE 2"!w""n !h" mind7 2od) and s+iri!4 I! in5o 5"s !h" +ra$!i$" o0 +h)si$a +os!%r"s and +os"s7 whi$h is som"!im"s r"0"rr"d !o as EasanaE in Sanskri!4 As !h" nam" s%##"s!s7 !h" % !ima!" aim o0 +ra$!i$in# Yo#a is !o $r"a!" a 2a an$" 2"!w""n !h" 2od) and !h" mind and !o a!!ain s" 0."n i#h!"nm"n!4 In ord"r !o a$$om+ ish i!7 Yo#a mak"s %s" o0 di00"r"n! mo5"m"n!s7 2r"a!hin# "?"r$is"s7 r" a?a!ion !"$hniF%" and m"di!a!ion4 Yo#a is asso$ia!"d wi!h a h"a !h) and i5" ) i0"s!) " wi!h a 2a an$"d a++roa$h !o i0"4 Yo#a is !h" +"r0"$! wa) !o "ns%r" o5"ra h"a !h and +h)si$a 0i!n"ss4 Thro%#h m"di!a!ion7 2r"a!hin# "?"r$is"s ,$a "d +rana)ams-G )o% $an 2anish a )o%r s!r"ss and "ad a h"a !h) i0"4 In 0a$!7 i! is on" o0 !h" 2"s! r"m"di"s known !o h%mankind7 0or $%rin# $hroni$ ai m"n!s !ha! ar" o!h"rwis" di00i$% ! !o 2" $%r"d 2) o!h"r m"di$a!ions4 P"o+ " s%00"rin# 0rom 2a$ka$h"s and ar!hri!is ar" o0!"n s%##"s!"d !o do asanas !ha! $on$"n!ra!" on +ro5idin# "?"r$is" !o !h" m%s$ "s a! !h" s!ra!"#i$ o$a!ions4 Prana)ams ar" !h" 2"s! "?"r$is"s !o in$r"as" !h" $a+a$i!) o0 %n#s $a+a$i!)4

How to Prepare for Yoga Meditation Edited by Maluniu, Queenkiwi, Teresa, NoirGrimoir Yoga is an exercise, meditation and life practice that helps you to be closer to the inner self. After doing yoga, many people expand their practice by starting to do meditation. Yoga meditation involves using yoga postures and mantras to clear the mind and meditate for a period of time. Yoga meditation preparation includes a number of procedures that cleanse the mind and focus the body, creating a successful meditation session. Read on to learn how to prepare for yoga meditation. 1.) Find a quiet, uncluttered room with a flat surface. You can also do yoga meditation outside, as long as it is not noisy and in direct sunlight 2).Choose a time and place for a regular yoga meditation. Yoga meditation is best done regularly at the same time, so make sure you are choosing a time that will work well most days of the week. Many people like to do yoga meditation in the morning because the air is fresh and the mind is calm from sleeping. Other people prefer to do yoga meditation at night to rid the body of stress and relax before sleeping. 3)Prepare your body. Use the toilet, wash your hands (and feet, if you wish), and get into comfortable clothing. Eat or drink if you are hungry or thirsty. Then, wait a little while to allow your body to digest.

4)Prepare the meditation space. Roll out your yoga mat and place blankets nearby. Focus on making it a calm space by doing 1 or all of the following:

Close doors to block out noise. Turn the temperature up or down so you will be comfortable. If the weather is good, open a window to increase ventilation. Light an aromatherapy candle, made of a relaxing scent. Focus as you light it, and picture it burning away negative thoughts. .)Practice yoga for 15 minutes. The purpose of Hatha and some other kinds of yoga is to prepare your mind for meditation. Practicing your favorite yoga poses releases tension and helps you to turn the focus inside to your breathing.

If you often do flow or Ashtanga yoga, then do 3 sun salutations to prepare for the yoga mediation. /)Do the following yoga stretches for 15 minutes, if you are not familiar with sun salutations.

Sit in a cross legged position with your knees as close to the ground as possible. If your hips are inflexible, place 1 or 2 blankets under your buttocks. Do 10 shoulder shrugs to loosen the shoulders, lifting your shoulders up while you inhale, holding them for a second, and then releasing them on an exhale. Roll your neck from right to left 5 times and from left to right 5 times. Move your legs so that your knees are still bent outward and your feet are touching. Pull your feet in toward you. Bring your knees up and down for 2 minutes, in the butterfly position.

Get on your hands and knees, with hands shoulder width apart and knees hip width apart. Arch your back gently, like a cat, and hold the posture for a breath. Allow your head and pelvis to fall as you do this. Move to the opposite position, with your back flexed and your head and pelvis pointing up. Hold for a breath. Do this slowly for 2 to 3 minutes.

Sit back on your knees with the top of your feet flat on the ground. Spread your knees apart and lay down so that your head is resting on the ground. Place your hands either straight above your head with palms facing down, or straight, next to your feet with palms facing up. Stay in this baby pose for 2 to 3 minutes 0)Sit on your mat in the lotus position, with your knees out to the side and feet cross inward. If you are not flexible, sit in a crossed leg position on 1 or 2 blankets. Your back should be straight.

If you have a knee problem, place bolsters or blankets beneath your knees to protect them from strain.

If you have a back problem and cannot sit up straight, use pillows or blankets to find a comfortable semi-upright position, preferably with a straight spine. Yoga meditation should not be done lying down. Although this is a relaxing position, it encourages sleep rather than concentration. Your spine should be straight and your chest should be facing up to properly perform yoga meditation. 1)Place your hands on top of your knees. 9)Chant the "Aum Mantra" 5 to 10 times. Sustain the word "Aum" (pronounced "Ohm" as long as you can. This mantra focuses on purification and dissolving negativity. 10)Regulate your breathing. Start to do diaphragmatic, deep breathing for 2 minutes.

A good way to practice is to breathe in 3 steps for 8 seconds each. Inhale slowly, hold your breath steady and exhale slowly. Repeat for 2 minutes. After you become familiar with breathing techniques, you can practice yoga meditation breathing that energizes the body. For example, you can do bhastrika or kapalabhati for 2 to 5 minutes before breathing deeply. 11)Breathe deeply until you feel no muscle spasms or jerking motions. 12)Begin your yoga meditation.

SE>EN STEPS TO EFFECTI>E (EDIATION

;7 D "n" S"n%" ("r " "nd ("r, AE ?re))F EsGE of %-e L"w Off ,es of D "n" S"n%" ("r "F PEAE Pr n% %- s #")e (No%e% <his article was ori inally pu#lished in the >une! )UUG 8ssue of <58AE ma a:ine! the >ournal of the Association of <rial Eawyers of America and is reprinted here with permission from the authors") Settling a case #efore trial often involves mediation" 8n its most #asic form! mediation is a process in which a neutral third party called a mediator acts to encoura e and facilitate the resolution of a dispute #etween two or more parties" 8t is a nonadversarial process desi ned to help the disputin parties reach a mutually accepta#le a reement" 8n mediation! decision$makin authority rests with the parties" <he role of the mediator is to assist them in identifyin issues! fosterin Aoint pro#lem solvin ! and e6plorin settlement options" &ince each party wants to mold

any settlement to its own #enefit! the actual process can com#ine elements of show$and$tell and poker" Whether mediation #efore trial is court$ordered or voluntary! lawyers have a duty to their clients to ma6imi:e the potential for settlin fairly and equita#ly" Of course! not all cases can #e settled" Where it is clear there is a#solutely no chance of settlement! you should ask the court to #e e6cused from mediation to avoid wasted effort and any unnecessary e6pense" 3owever! even when a case does not resolve in mediation! the e6perience may prove invalua#le #ecause the information that is leaned durin ne otiations may compel the parties t take a new approach to the case" 'ediation affords an attorney the unique opportunity to evaluate an opponentFs style and the issues an opponent will #e emphasi:in at trial" 8t will also allow the attorney to assess how well an opponent responds to the weaknesses in a case" <his is often the same kind of information lawyers seek throu h depositions and carefully planned discovery requests" <he followin tips can help produce a successful mediation"

1E C-oose " $ed "%or ,"refull7"

Opinions differ on the importance of choosin a mediator" &ome attorneys #elieve that the choice has little or no #earin on the outcome! so they ive little thou ht to this part of the process" 3owever! we #elieve that choosin an appropriate mediator is as important and deserves as much of a lawyerFs attention as selectin Aurors for trial" Cnlike at trial! the parties at mediation settle the case amon themselves rather than su#mittin to the decision of a Aud e or Aury" 3owever! whether in trial or mediation! lawyers are o#li ated to provide clients with the same level of care! #e it in selectin Aurors or in selectin a mediator" Eawyers who have a workin knowled e of the mediators in the local circuit and who carefully consider mediatorsF personality styles! #ack rounds! and suita#ility for a iven case are pavin the way for a successful mediation" A mediation is essentially a ne otiation #etween the parties and is overned #y the same principles that apply to any ne otiation") <he process varies dependin on the personalities! oals! and strate ies of the participants$$ includin the mediator" <o a reat e6tent the personality styles of the participants determine the outcome" &ince the mediatorFs Ao# is to facilitate a resolution that the

parties and their counsel workin alone cannot accomplish! the mediatorFs style can #e a reat aid $$ or a reat impediment $$ to the ne otiation" Cnderstandin personality characteristics and ne otiatin styles will ive you an advanta e at mediation" ?e otiatin styles may #e identified and rouped accordin to four ;"s , #erson"l %7 %7#es% directors! influencers! steady types! and compliant types", D re,%ors! as their name su ests! w"n% $$ed "%e resul%s" <hey accept challen es! and they make thin s happen" Directors seek power and authority! presti e and challen e" <hey need others to wei h the pros and cons of an action and calculate risks" 8f you know that certain parties or their counsel are directors! selectin a directin mediator is likely to #rin the mediation to a quick! #ut perhaps premature! conclusion" Any settlement would tend to #e accomplished quickly! #ut your client could et shortchan ed in the process" Influen,ers "re "r% ,ul"%e H#eo#le #ersonH %7#es w-o $"4e f"!or";le $#ress ons on o%-ers" <hey want to #e popular! and social reco nition is important to them! as is freedom of e6pression" 8nfluencers need others to seek out the facts and focus on the task at hand" An influencin $type mediator may #e a#le to keep a mediation socially lu#ricated! so that directin parties do not reach an impasse or walk out too soon" <he chances for a settlement #etween two directin parties would tend to #e increased with a well$respected! influencin $type mediator" S%e"d7 %7#es "re #"% en% #eo#le w-o fo,us on )e%% n) %-e Io; done" <hey want security and prefer the status quo unless valid reasons indicate chan e is necessary" teady types need others who can react quickly to une6pected chan e and e6tend themselves in new ways to meet the challen es of an accepted task" A steady$type mediator could #e particularly effective when the parties are influencers! providin a patient focus on the facts and the Ao# at hand" Any settlement would #e more likely to account for all the facts and needs of the parties" Details that otherwise mi ht #e overlooked #y influencin or directin types will more likely #e covered" Co$#l "n% %7#es %end %o ,on,en%r"%e on 4e7 de%" ls" <hey focus on key directives and standards" <hey want a sheltered environment with

standard operatin procedures and security" .ompliant types need others to dele ate important tasks and e6pand their own authority" A compliant type may #e most useful in a mediation #etween director and influencer parties! acceptin dele ation of various tasks and providin no challen e to the partiesF desire for control and e6pression" 8n this situation! a settlement would likely take into consideration the concerns and fully articulated positions of the parties" <he compliant$type mediatorH under the circumstances! would act more as a messen er #etween the parties" <he implications of this kind of analysis for the mediation process are readily apparent" <he point is that the process and outcome of any mediation will depend! in lar e part! on who the participants are" &o! it is important to select a mediator appropriate to the psychodynamics of a particular case! iven the parties! issues! and counsel involved"

-repare and plan the mediation as if you were preparin for trial" &how confidence! commitment! and professionalism at every sta e of the process" 5emem#erH the opposin party is evaluatin all aspects of the mediation" @e prepared and prepare your client! #ecause the possi#ility always e6ists that the mediation will reach an impasse" @e sure the client is prepared to discontinue the process if it appears futile" 0now the clientFs #ottom line" .onfirm it #eforehand! and #e clear a#out this" 8f you are am#ivalent on this point! your am#ivalence will #e construed as less than a full commitment to the clientFs position" @e prepared to end the mediation if it #e$comes clear that the clientFs #ottom line will not #e reached" An e6ception to this rule occurs when new information emer es that materially affects the clientFs position" =ou then need to #e prepared to work with the client to a ree on a new #ottom line so that the mediation can continue" .lients who are well informed a#out the process are more rela6ed and make a #etter impression" 9nsure that the client knows the purpose of mediation! the amesmanship involved! and the likely oals and strate ies of the other party"

2E Pre#"re for $ed "% onF "nd 4now %-e ,l en%:s ;o%%o$ l ne"

.lients need to know that they are an inte ral part of an effective presentation and that they should display an appropriate attitude durin the mediation despite any ne ative feelin s they have toward the other party" .lients should come to your office appropriately attired and ready to finali:e strate ies at least two to three hours #efore the mediation #e ins" .ommunicate clearly to the client what the odds of a successful outcome are if the case oes to trial" <he client is relyin on your uidance to make informed decisions" Analy:e all offers from the other side with realistic e6pectations" 'ake counteroffers that consider the clientFs #ottom line! the appropriateness of the last offer discussed! as well as the history of the mediationFs ive and take" 3owever! do not consider how lon the mediation has already taken" 'ediation can reach a ood result at any time! #e it ) hour or ,/ hours into the process" Always try to approach each point in the ne otiation with fresh ener y to avoid mental traps that could adversely affect the client"

&E Ne)o% "%e "% " % $e "nd #l",e %-"% s "d!"n%")eous"

Avoid ne otiations that take place too early or too late in the day or in too close pro6imity to another unrelated! important event! such as an important hearin on the same day" =ou need to #e a#le to adAust your schedule to stay lon er than planned for your client if the mediation is flowin and purposeful" 9nsure that all the key participants are as focused and alert as possi#le" At minimum! the mediation should take place on neutral! comforta#le round that is convenient to counsel! client! and mediator" =ou and your client should arrive early to familiari:e yourselves with the environment and the surroundin facilities" Avoid #rin in alon the entire case file! #ut do have all supportin documents! such as accident reports! medical records! applica#le case law! and economic loss analysis" 8f necessary! also #rin appropriate support staff to assist with document retrieval" When possi#le! use this time to set up visual aids that will keep the mediation visually lively" 'ake sure all electronic equipment is operational and correctly positioned" 8n personal inAury cases! use #lowup e6hi#its of the clientFs inAuries and other key pieces of evidence" 'ount on poster #oard and visually enhance important documents and critical medical records! Aust as you would for trial" A little e6tra e6pense and attention to

these details could make a tremendous difference in the way your case is evaluated #y your opponent"

+E S-"re nfor$"% on s%r"%e) ,"ll7E

@y the time a case reaches mediation! quite a #it of information has already #een disclosed #y each side! particularly if the case has #een liti ated for a while" @efore puttin the matter into suit! you may have presented the other party with a demand packa e that disclosed your theory of lia#ility and outlined your clientFs dama es" At the mediation! you should #uild the initial presentation on this previously disclosed in$ formation! emphasi:in the elements that support a favora#le settlement" 8t is possi#le that the other party and the other partyFs counsel have taken a relatively routine approach to the case until the mediation" Cse mediation to hammer home your case! e6posin the reasons why the plaintiff will win #i at trial" Address your caseFs potential weaknesses! #ut also e6plain why the stren ths of your position outwei h any weaknesses and why you will o#tain a favora#le verdict at trial" Eet the other side see how the case will play to a Aury" 8n some cases! it may #e advanta eous to show a short video hi hli htin the stren ths of the case" <he video should include e6cerpts of depositions of key e6perts and #efore$and$after witnesses! scenes of the client #efore and after the inAury! newspaper articles notin the clientFs achievements! and accolades awarded to the client #efore the inAury" <hese can take any form desired! as there are no evidentiary rules at mediation" 5emem#erH there are no uarantees that the case will #e settled" 9ven thou h each party should arrive at mediation prepared to resolve the case in ood faith! part of the other sideFs motivation may #e to prepare for trial $$ not to actually resolve the case" Do not disclose any more elements of your position than you have to in order to achieve a satisfactory settlement that is fair to all the parties" On a related note! reserve some information to use later in the mediation" A successful mediation may take hours to resolve" 8f you allow your opponent to understand your position too early! he or she will make an offer #ased on that understandin " Withholdin some information allows you to reveal your position in sta es! and a more satisfactory settlement for all parties is likely to result! #ased on a #etter understandin of your clientFs position"

.E Pre#"re %-e $ed "%orE

&everal weeks #efore the mediation! prepare a written overview of the case $$ for the mediatorFs eyes only $$ that ives a quick! accurate reference to all pertinent information! and hand$deliver it to the mediator immediately #efore the mediation" &tamp it confidential! #ecause this is your work product! which reflects your mental impressions of the case" Bor e6ample! in a personal inAury case! include the clientFs name! date of the collision! current a e and a e at the time of the collision! and employment information and earnin s on the date of inAury" Also provide the facts of the case! counselFs theory of lia#ility and the other sideFs defenses! as well as why those defenses fail or donFt materially affect a favora#le outcome for your client" 8n addition! ive a detailed description of the clientFs current dama es! includin all inAuries! the impact on the clientFs life! the assessments of all treatin physicians and other e6perts! related medical #ills! and out of$pocket and earnin s losses" 8nclude a detailed description of the clientFs future prospects" -rovide specific information a#out the clientFs future economic losses! includin medical needs and earnin s capacity losses prepared #y an economist or vocational reha#ilitation consultant Also ive a summary of the insurance limits or resources availa#le from the other party and any covera e issues that may apply" A ood mediator should #e impartial! which implies a commitment to aid all parties! not any individual party! in movin toward an a reement" / <his commitment is mandatory in Blorida! which has adopted mediator qualification requirements and to our knowled e is the only state to implement a disciplinary process for mediators"1 ?othin in this o#li ation! howeverH precludes the mediator from makin a professional determination that the case should #e resolved on one partyFs terms" 8n fact! any a reement #ased on the mediatorFs impartial view of the merits of each sideFs case will #e entirely appropriate from the perspective of the mediatorFs statutory or ethical o#li ations! as lon as the mediator remains impartial"2 8f you are comforta#le with and respect the mediatorH let him or her #e your soundin #oard" When meetin privately with the mediatorH #e candid when discussin any offers the other side may have made" 8f uncertain! ask the mediator for strate ic input as to what the ne6t move in the process should #e"

'ediation statutes enerally provide that! with certain very limited e6ceptions! nothin that is said to a mediator durin private caucus may #e disclosed to the other party or anyone else without the disclosin partyFs consent! and the confidentiality of all mediation proceedin s! includin any disclosure of records or materials! must #e maintained" 4 <his confidentiality requirement encoura es open and honest ne otiation #y the parties" A ood mediator will reco ni:e the stren ths and the weaknesses of the plaintiffFs case $$ and the defendants $$ and steer #oth disputin parties toward a fair and equita#le result"

/E <se %-e $ed "%or "s " $essen)erE

.ertain information cannot #e conveyed to the other side without evokin adverse$$ or even hostile $$reactions" Bor e6ample! a non$ne otia#le aspect of your position can rarely #e #rou ht directly to the other party without causin that party to raise an equally non$ne otia#le position" <his can #e unfortunate! #ecause these delicate facts may #e the key to a successful ne otiation" @y e6pressin this information to the mediator in private and encoura in the mediator to communicate it to the other side! potentially e6plosive reactions may then #e defused" <he mediatorFs Ao# is to move the parties off their initial positions toward settlement -rovide the documents! facts! or theories that o to the heart of the other partyFs weaknesses to ain additional levera e for your client" Doin so helps #rin the other side closer to a fair settlement Althou h #ein candid with a ood mediator is important! let the mediator discover all the case facts over time" A mediator who understands the plaintiffs #ottom line too soon will spend less time e6plorin availa#le options and may miss an opportunity to effect a more equita#le settlement" A mediator who arrives at a radual understandin of the plaintiffs position will #e more likely to en a e in new methods of pro#lem solvin to settle an old and frustratin pro#lem" 5emem#erH mediation is a Aourney for all the participants! and shortcuts may shortchan e the process! possi#ly to the clientFs detriment" Bor e6ample! there is often a chance $$ however sli ht $$that you could #e underestimatin the value of your case" 8n fact! the opponent may #e willin to pay more than your clientFs #ottom line" @y allowin the mediation process to run its course! #oth sides may facilitate a creative solution in which the parties reach an une6pected $$ #ut mutually a reea#le $$settlement"

0E Se"l %-e de"l n wr % n)E

A clearly written a reement is the oal of mediation" 9nsure that this document carefully descri#es the intent and a reement #etween the parties and is si ned #y all parties and their counsel" <he time frame for all payments should #e clear! as should any unaccepta#le release terms" <his way! elements of the settlement not e6plicitly addressed in the written a reement will #e unenforcea#le" <he a reement should #e written #y one person! with input from each of the parties" <his reduces the opportunity for error that can result when too many hands create a document <he a reement can #e comprehensive or merely memoriali:e the #asic elements of the settlement! dependin on how the parties wish to construct the #indin aspects of the a reement At a minimum! the a reement should ensure that all the key elements of the settlement! includin the respective o#li ations of the parties! are sufficiently detailed so as not to #e su#Aect to interpretation later" Am#i uity can kill the deal" Given the evolvin trend toward mediation as a via#le and sometimes mandatory e6ercise in dispute resolution! the future promises to test the traditional role of trial lawyers in ways that will challen e their ima inations and creativity" <rial lawyers need to #e alert to ma6imi:in the potential #enefits that mediation may #rin to their cases"

8HAT IS EMOTIONAL GUOTIENT

>u lin the competin priorities of your work and personal lives leaves little time to focus on #etterin yourself" Where should you focus your efforts to make the most pro ress in the limited time you do have? @eyond the pace at which you learn (your 8Q)! there are two fundamental contri#utors to your a#ility to reach your potential" <he first contri#utor involves knowin who you are (your personality)H this includes your stren ths" <he second contri#utor is your skillVpersonally and sociallyV in navi atin life7s comple6ities" <his skill is emotional intelli ence! or 9Q! and it helps you make the most of who you are and what you7ve learned"

E" ti nal Gu tient Vs Intelli'en-e Gu tientH

Before analyzing EQ and IQ, let us familiarize ourselves with what exactly these terms mean. Emotional Quotient (EQ) refers to an employees ability and

understanding of his or her emotions along with his or her colleagues emotions at the workplace to create better work coordination and environment. In contrast, Intelligence Quotient (IQ) defines the level of intelligence an employee possesses to understand, interpret and implement ones knowledge in varied situations leading to his or her growth as well as the Companys. IQ is mainly used to measure ones cognitive capabilities, such as the capacity to learn or understand new situations; reasoning through a given predicament or setting and the ability to apply ones knowledge in current circumstances. Emotional Intelligence (EI) skills do not limit themselves to sympathy, intuition, imagination, flexibility, stress management, management, truthfulness, genuineness, intrapersonal skills and interpersonal skills but extend far beyond these. When working in an organization, an employee with higher EI than others can convince his or her colleague(s) about a certain argument by appealing to their emotions rather than presenting facts and figures. While judging an individuals EI, keep in mind these few points:

/n employee&s ability to comprehend and apply his or her personal emotions /n employee&s ability to e#press his or her feelings, beliefs and thoughts /n employee&s ability to recogni8e and appreciate his or her own potential /n employee&s ability to manage his or her personal and professional life under stress and pressure /n employee&s ability to adapt to different wor environments and handle varied challenges that come his or her way /n employee&s ability to possess self,confidence /n employee&s ability to not only wor towards the growth of the Company but also towards the growth of his or her co,wor ers For best results, employees must develop communication and organizational skills for good decision-making as well as good inter-personal relations with co-workers.

An individuals success rate at work depends on his or her EQ as well as IQ in the ratio of 80:20. Why 80:20? Well, because, EQ help individuals build and maintain relations with peers and superiors, increases productivity and opens up doors for clarity in communication (good listening habit is integral to EQ). While hiring, corporates look at an individuals EQ rather than IQ. Having a high IQ will help build interpersonal and intrapersonal skills to a certain extent, unlike EQ, which talks about ones character based on the way he or she writes or replies to mail, collaborates and networks with peers and subordinates and works towards attaining Company GOALS.

SPIRITUAL QUOTIENT (SQ)AND INTELLIGENCE(SI)ARE COMPARATIVELY NEW FIELDS

+piritual -uotient and spiritual intelligence are not the part of scientific terminologies yet. They may become some day. 'linical definition of +I or +. is not available. *et, there is a growing understanding of these two terms /+I and +.0 among many and they believe that these exist. We hear lots of these terms fre-uently1 spiritual intelligence, spiritual -uotient, spiritual relation -uotient, soul2s intelligence, cosmic intelligence, selfactuali3ation etc. ,uman being2s interest ever multiplies in both the directions1 the scientific and empirical. It will be interesting to explore this sub#ect of +I and +.. Finer ,s Stronger We think muscles are powerful because with them we can lift heavy weights. 4ut come to think of it, they are not because it is the tiny thread like structures called neurons that give power to muscles. The moment we disconnect the neurons in the brain from muscles, the muscles #ust can2t function. These neurons actually bring the power from something still finer- thoughts and perhaps, something more fine. +o, the greatest power lies in fine and not in coarse. +. and +I are those finer things.

..// Now ,t ,s S0 !ll along it was I. that was thought to be supreme- the cognitive and rational intelligence. Then came the concept of emotional intelligence /5I0 and emotional -uotient /5.0 some time during mid 6778s. It was thought that our emotions and those of others and how to manage them were as important or even more important. 5. was thought to be the basic re-uirement for better use of I.. It is known that if the brain areas with which we feel get damaged, we would think less effectively. !nd lately, we have added a new dimension to human intelligence- the +.. It is considered to be the ultimate intelligence. It is believed that it is through +. that we are in a position to solve the issues related with meaning and value. +ome examples of the issues related to meaning and value are the constant search of human beings for answers to the fundamental and ultimate -uestions like1 Why was I born9 What is the meaning of my life9 :oes my work give me the satisfaction I need9 :o I relate to myself and to the other people well9 What way am I contributing to my and others2 happiness9 +hould I go on even when I am tired or depressed9 What makes it all worthwhile9 !nswers to such -uestions lead us to happiness and +. helps to answer these -uestions better than what I. and 5. in their separate capacities are capable of. S0 1efined I. ; 5. < +. ,uman beings are different from animals and computers because of +.. !nimals can have 5. and computers can have I. but they won2t have +.. +. is all about holistic approach to life1 the wholesomeness, self-awareness, compassion, creativity, ability to think, ability to reason out etc= all of this together. +I e-uips us to look at and solve the problems of meaning and value and then we begin to direct our thoughts, actions and so, our lives towards wider and meaningful hori3ons. With +I or +., we can distinguish more clearly the right from the wrong. It empowers us to compare various life paths. +. is the foundation on which should lie our I. and 5.. +I is ultimate intelligence. Three Ps'chological Processes 6. %rimary process 5.1 based on associative neural wiring in the brain.

>. ?.

+econdary process I.1 based on serial neural wiring in the brain. Tertiary process +.1 based on third neural system in the brain, the synchronous neural oscillations that unify and integrate the data across the brain. The process facilitates interactions between emotions and logic. Thus it provides a meaning giving center. S0 Should Not Be Confused 2ith "eligion There is no correlation that religious people have to have high +. or nonreligious people have to have low +.. While conventional religion is set of beliefs, rules and guidelines imposed from external environment, +I /+.0 is the intelligence that rests internally and if used, provides us that wisdom which is beyond any ego and which recogni3es the existing values and empowers us with creativity to discover even new values. Some 3arl' Scientific 3-idence !fter early 6778s, some research has been carried out by neuropsychologists and neurologists. They propagate existence of @God spotA in the human brain. This builtin spiritual center is located among neural connections in the temporal lobes of the brain. Taking scans using positron emission topography, it was found that these neural areas light up whenever the research sub#ects were drawn to the discussions on spiritual topics. ,owever, @God spotA has nothing to do with proving the existence or non-existence of God. ,ndicators of )igh S0 +elf-awareness Blexibility and adaptability !bility and capacity to face, use and transcend pain and suffering. Cision Calues Wisdom not to harm or hurt others and self ,olistic approach and views !ppetite for seeking answers to fundamental -uestions by using @whyA and @what ifA 'ourage to work against conventions if necessary

LOGISTICS AND SUPPLY CHAIN MANAGEMENT

BY
M.RAJKUMAR,MBA

MASTER OF BUSINESS ADMINISTRATION ANNAMALAI UNIVERSITY

UNIT-1 INTRODUCTION =ierce competition in today&s mar et has forced business enterprises to invest in and focus on supply chains. The growth in telecommunication and transportation technologies has led to further growth of the supply chain. The supply chain, also nown as the logistics networ , consists of suppliers, manufacturing centers, warehouses, distribution centers and retail outlets, as well as raw materials, wor ,in,process inventory and finished products that flow between the facilities. The logistics management ta es into consideration every facility that has an impact on cost. It plays an important role in ma ing the product conform to customer re-uirements. /lso it involves efficient integration of suppliers, manufacturers, warehouses and stores and encompasses the firms& activities at many levels, from the strategic level through the tactical to the operational level. !ogistics is a challenging and important activity because it serves as an integrating or boundary spanning function. It lin s suppliers with customers and it integrates functional entities across a company. $ith the ever,growing competition in today&s mar et place it becomes necessary for a firm to use its resources to focus on strategic opportunities. This includes several internal factors li e management style, culture, human resources, facilities and several e#ternal factors li e technology, globali8ation and competition. This is where the concept of logistics plays a ma5or role, i.e. it helps to leverage certain advantages the firm has in the mar etplace. DEFINITION OF LOGISTICS MANAGEMENT The ter" logistic "anage"ent is #rocess of #lanning, i"#le"enting and controlling the effecti e and efficient flo! of storing goods and ser ices and related infor"ation fro" the #oint origin to #oint conce#tion. for the #ur#ose of confor"ing to custo"er require"ent. THE WORK OF THE LOGISTICS MANAGEMENT $. custo"er ser ices %. de"and forecasting &. distributing co""unication

'. in entory controlling (. "aterial handling ). order of #rocessing *. affect sales #erson and ser ices and su##ly +. #lant and !here house location ,. #rocure"ent $-.#ac.aging $$.retained goods handling $%.re ers logistics $&.traffic and trans#ortation $'.!arehousing and storing $(.trans#orting $).facilities of the custo"ers LOGISTICS MANAGEMENT NET WORK DESIGN Lo#is!i$s N"!work /"si#n A ro2%s! n"!work is !h" 2asis 0or a s%++ ) $hain im+ro5"m"n!s 6istorically grown structures, mergers, ac;uisitions, as well as e#ol#ing customer needs re;uire periodic optimi0ation of the distribution networ&. @osts for transport and warehousing need to be balanced whilst ta&ing into account the a#ailability of goods and agreed ser#ice le#els. (ften when starting out heterogeneous cost structures, undefined ser#ice le#els and non-transparent flow of goods need to be understood and standardi0ed. @amelot supports you in creating transparency and designing and de#eloping an intelligent distribution networ&. *e pro#ide you with support through our pro#en, structured approach, best practices and speciali0ed software for networ& simulations9

<se our networ& simulation software to optimi0e the number of warehouse locations while ta&ing into consideration transport costs

.election of the optimal warehouse locations +xcellence and transparency of processes for all areas, including customs and foreign trade 7a&e-or-buy assessment >artner selection using tenders "mplementation management =uality management and business intelligence coc&pit (ur logistics experts guarantee efficient and robust solutions and will support you with design and implementation.

The primary drivers of logistics network design are re-uirements resulting from integrated procurement, manufacturing, and customer relationship management strategies. Within the framework of these interlocking strategies, integrated logistics re-uirements are satisfied by achieving total cost and service trade-offs. These capabilities play out across a network of enterprise facilities. Important to the performance of logistics re-uirements are warehouses. Warehouses are #ustified in logistical system design as a result of their contribution to cost reduction, service improvement, or a combination of both. Transportation and inventory economics are critical network design considerations. In the least-total-cost e-uation, transportation reflects the spatial aspects of logistics. The ability to consolidate transportation is a primary #ustification for including warehouses in a network design. Inventory introduces the temporal dimension of logistics. !verage inventory increases as the number of warehouses in a system increase in a stable demand situation. Total cost integration provides a framework for simultaneous integration of logistics, manufacturing, and procurement costs. Thus, total cost analysis provides the methodology for logistical network integration. !ccurate total cost analysis is not without practical problems. Boremost is the fact that a great many important costs are not specifically measured or reported by standard accounting systems. ! second problem involved in total cost analysis is the need to consider a wide variety of network design alternatives. To develop complete analysis of a planning situation, alternative shipment si3es, modes of

shipment, and range of available warehouse locations must be considered. These problems can be overcome if care is taken in network analysis. The cost format recommended for total cost analysis is to group all functional costs associated with inventory and transportation. The significant contribution of total cost integration is that it provides a simultaneous analysis of time- and space-impacted costs involved in logistical network design. The formulation of a logistical strategy re-uires that total cost analysis be evaluated in terms of customer service performance. (ogistical service is measured in terms of availability, capability, and -uality of performance. The ultimate reali3ation of each service attribute is directly related to logistical network design. To reali3e the highest level of logistical operational support within overall enterprise integration, in theory each customer should be provided service to the point where marginal cost e-uates to marginal revenue. +uch marginal e-uali3ation is not practical to achieve= however, the relationship serves as a normative planning goal. The formulation of a service policy starts from the identification and analysis of the least-total-cost-system design. Given a managerially specified inventory availability target, service capability associated with the least-cost design can be -uantified. This initial service level is referred to as the threshold service level. To evaluate potential modifications to the least-cost design, sensitivity analysis is used. +ervice levels may be improved by modifying /60 variation in the number of facilities, />0 change in one or more aspects of the performance cycle, andDor /?0 change in safety stock.

EOG8&<8.& & <5A?&-O5<A<8O?

While a lo#al supply chain ena#les companies to levera e lower cost manufacturin ! there are si nificant challen es imposed on transportation mana ers in ensurin products delivered over lon distances arrive on time and are distri#uted to the ri ht locations" <ransportation costs are typically 2$4W of a company7s revenue and a maAor contri#utor to overall product costs" @etter transportation mana ement helps companies improve their overall supply chain efficiency" <he lon er lead times with lo#al suppliers! volatile fuel prices and risks such as unavoida#le delays! make estimatin the cost and time associated with transportation difficult" As a result! companies incur hi h e6pedite and inventory costs" <o reduce transportation overheads and ensure that the ri ht product reaches the ri ht location on time! transportation

mana ers require a centrali:ed view into all of their transportation activities as well as the a#ility to understand transportation7s impact on product inventory" O!er,o$ n) ,-"llen)es n lo) s% ,s "nd %r"ns#or%"% on A consolidated view into lo istics and transportation within the supply chain is vital to understandin ! mana in and #alancin supply and demand! Iiewlocity <echnolo ies solutions assist transportation mana ers with% Mana'in' l n' lead ti"es and (aria;ilit1 Due to the lo#al nature of supply chains! companies have to deal with lon er lead times and si nificant varia#ility" Cncertainty in transportation often leads to hi her inventory costs as companies #uffer their stock" -roducts are also e6pedited when there mi ht #e alternate! cheaper ways to meet demand" Iiewlocity <echnolo iesF solutions allow you to view the impact of disruptions on upstream or downstream activities as well as on inventory" <hese tools allow you to focus on hi h value! critical issues while leavin other! less critical pro#lems to #e automatically resolved within the system"

M nit rin' and - ""uni-atin' -han'es in de"and .onsumer spendin ha#its are more unpredicta#le than ever" A company needs to #e a#le to communicate chan es in demand si nals to suppliers and transportation partners to effectively mana e costs and inventories" Eo istics and transportation solutions from Iiewlocity <echnolo ies ena#le you to levera e e6istin investments that you and your partners have made in various systems and present an inte rated and meanin ful #usiness picture" On$ #oardin partners can #e mana ed easily! even if they have widely differin technolo ical capa#ilities"

In-reasin' %r du-t "ar'ins -roper mana ement and disposition of product returns can si nificantly impact product mar ins" Dynamic fuel costs also si nificantly impact overall transportation cost" .ompanies are a#le mana e all areas of lo istics! includin returns usin Iiewlocity <echnolo iesF supply chain visi#ility and control solutions" Csers are a#le to view the details of products on a shipment! down to a serial num#er and can analy:e prior shipment data and #etter plan for anticipated carrier requirements" When it comes to lo istics and transportation mana ement! Iiewlocity<echnolol ies has the solutions you need to ensure% 5educed overall system inventory 5educed supply chain operatin costs 5educed e6pedited frei ht costs 9na#lement of lean supply chain operations 8ncreased operatin efficiency

Inventory management
<he answer to the question of Dwhat is inventory mana ementD is% 8nventory mana ement is a collection of interdisciplinary processes that include a full circle from supply chain mana ement to demand forecastin ! throu h inventory control and includin reverse lo istics" 8nventory mana ement starts and ends with supply chain mana ement #ecause many of the opportunities to improve efficiencies start with shortenin order to receipt time without incurrin additional cost" <hat said! the other sta es of the inventory mana ement cycle are no less important in attainin overall efficiency" Given that inventory in all its forms enerally represents one of the top three e6pense lines for nearly all companies! there is a universal need for applyin the ri ht discipline to each step in the process"

While in the perfect world! all inventory is consumed daily! we must operate #usinesses in a less than perfect environment" <he challen e is% how close can you et to perfect #efore >ust 8n <ime inventory mana ement #ecomes a little too late"

/0123T243 MA5A16M65T 7AR6 80U3251

A bit broad, but the ele"ents that "a.e u# the "odern logistics industry continue to e ol e as the breadth of alue added ser ices !arehouse logistics #ro iders often does. This e9#ansion has been accelerated by three ital trends in the ne! econo"y: the general trend to!ards outsourcing, the #re iously un#recedented gro!th of e;co""erce and the i"#ortance of the #artnershi# as#ect of the "anufacturer<"ar.eter = logistics #ro ider relationshi#. 2t>s benefits include: reduced need for #ersonnel, reduced trans#ortation and distribution cost, i"#ro ed custo"er ser ice, i"#ro ed cycle ti"e, free;u# /ogistics call for an understanding of the total su##ly chain, the ele"ents of !hich include in entories, #ac.ing, for!arding, freight, storage and handing. /ogistics isres#onsible for all the "o e"ent that ta.es #lace !ithin the organi?ation !hether it is inbound logistics of inco"ing, ra! "aterials or "o e"ent !ithin the co"#any or the #hysical distribution of finished goods, logistics enco"#asses all of these. Ty#ical logistics fra"e!or. "ainly consists of @hysical 3u##ly, 2nternal 0#erations and @hysical Aistribution of goods and 3er ices. To #ut it "ore si"#ly, the "aterial su##ly logistics starts fro" the base le el of Bgeneration of the de"andC, through the B#rocess of #urchaseC and Bsu##ly of "aterial fro" the endorC right through to Bfinal acce#tanceC and B#ay"ents to the su##lierC and Bissue to the indenterC and has to be considered as a Mone whole activityN with each stage having an impact on priceLcost of material supply. !ogistics is, itself, a system> it is a networ of related activities with the purpose of managing the orderly flow of material and personnel within the logistics channel. Transport logistics and warehouse logistics are the most important divisions of logistics deeply connected with each other. The main target of any logistics company is not only providing any freight delivery and forwarding by any means of transport, but a wide range of warehouse services as well. /s the cargo delivery is not always door to door, the transport and warehouse logistics

provides the forwarding and control of freight> placing at customers disposal a real information about the status of e#ecution, the order and the location of freight at any time.

EHTERNAL COVER 1ITH 'UNCTIONAL CONTENT PACKAGING

(ptimal pac&aging of a product is a critical factor in logistics. -nd the reason is clear9 *ithout it, many logistics processes could not be performed at all or could be carried out only at great additional cost. )he function of the pac&aging is not just to protect the product. "t performs many other jobs as well. )hese include pro#iding information about the contents as well as enabling and facilitating other logistics processes including transport and handling as well as storage, order processing and warehousing. MATERIAL HANDLING & LOGISTICS Machines for transport packaging Cardboard crate and tray formin mac!ine" #. Carton formin mac!ine" $. Ca"e%ac&in ' formin ( fi))in ( c)o"in mac!ine" of cardboard bo*e" +. Cratin and crate',n)oadin mac!ine" -. Dam%enin mac!ine" to c)o"e carton" .it! ,mmed %a%er /. De%a))eti0er" 1. Heat"!rin& o2en" for %a))eti0ed )oad" 3. Hoodin ' .ra%%in mac!ine" of %a))eti0ed )oad" 4. Nai)in mac!ine" 15. 6ac&'bindin mac!ine" 11. 6a))eti0er" 1#. 6a))eti0er" ' by carte"ian a*e" 1$. 6a))eti0er" ' by fi*ed or mobi)e ba"e 1+. Robot" for %a))eti0ation 1-. Stra%%in mac!ine" 1/. Sy"tem" for %ac&a in .it! airb,bb)e c,"!ionin 11. Sy"tem" for %ac&a in .it! biode radab)e c,"!ion" 13. Sy"tem" for %ac&a in .it! foam %)a"tic "!red" 14. Sy"tem" for %ac&a in .it! %a%er c,"!ionin #5. Sy"tem" for %ac&a in .it! %o)ye,ret!ane foam
1.

Ta%in mac!ine" ##. 7ra%aro,nd ca"e%ac&in mac!ine" #$. 7ra%%in mac!ine" for %ac&a in ro,%ed in b,nd)e" .it! a,toad!e"i2e fi)m #+. 7ra%%in mac!ine" for %ac&a in ro,%ed in b,nd)e" .it! !eat"!rin& fi)m #-. 7ra%%in mac!ine" for %ac&a in ro,%ed in b,nd)e" .it! "ea)ab)e fi)m #/. 7ra%%in mac!ine" for %ac&a in ro,%ed in b,nd)e" .it! "tretc! fi)m #1. 7ra%%in mac!ine" for %a))eti"ed )oad" in !eat"!rin& fi)m #3. 7ra%%in mac!ine" for %a))eti"ed )oad" in "tretc! fi)m
#1.

INTERNAL HANDLING AND STOCKING - LOGISTICS Accident %re2ention e8,i%ment 9for !and)in : #. Air con2eyor be)t" for bott)e" $. A,tomatic .are!o,"e" +. ;e)t" for fa"tenin ( )a"!in ( etc. -. Contin,o," con2eyor" and tran"%orter" /. Con2eyor be)t" 1. Con2eyor be)t" 9com%onent" for: 3. Door" and )e2e)in e8,i%ment 4. <)oorin and co2erin " for ind,"tria) ,"a e 15. <or& )ift tr,c&" 11. Ind,"tria) door" 1#. Liftin de2ice" 1$. Loadin bay" ' doc& )e2e))er" 1+. Lo i"tic" mana ement "y"tem" 1-. Mean" for aeria) .or&in 1/. Mean" for a,tomatic and robot !and)in 9AG=( LG=( etc.: 11. Mec!anica) con2eyor be)t" for bott)e" 13. Mod,)ar con2eyor be)t" 14. 6a))et tr,c&" #5. 6a))et t,rner #1. 6ic&in )ine" ##. S!e)f and a)ternati2e e)e2ator" for bo*e" and %a))et" #$. S!e)2in for .are!o,"e" #+. S)at con2eyor" #-. Stora e rac&" #/. Stora e "y"tem"
1.

Sy"tem" and %)ant" for .are!o,"in #3. Sy"tem" for )oad" "tabi)ity #4. Tan&" $5. T!erma) and e)ectric tr,c&" for tran"%ort and )iftin $1. Tro))ey" for man,a) mo2ement
#1. $#.

=ertica) con2eyor be)t" 9contin,o,"( bea&er"( etc.:

A TYPICAL OR?ANIJATIONAL CHART EKA(PLES TO REPRESENT THE LO?ISTICS OR?ANIJATION STR<CT<REE Eo istics enterprise can have many or ani:ation structures! #ut the most typical lo istics or ani:ational structure consists of the shareholder! #oard of directors! the sales supervisor! lo istics mana er! customs supervisor! merchandiser supervisor! materials mana er! purchasin mana er! tradin mana er! merchandiser mana er! warehouse mana er! distri#ution mana er! customs specialist! documentation specialist! shippin specialist! courier ! warehouse stock mana ement and employees"

?O>ERN(ENT ROLE IN TRANSPORTATION )X Government plays a very important and crucial role in the transportation #usiness or system"

,X <hey provide #asic infrastructure to the nation like roads! railway tracks! ports! container yards! cranes at ports! pu#lic warehouses etc" /X Government is conductin an inspection! verification of oods and other stora e #y esta#lishin customs authority" 1X 3owever ovt" can also char e a ta6 on the oods and services provided #y distri#uter! <hey char ed various ta6es like octroi! road ta6! other duties such as customs! e6port trade! e6cise ta6! sales ta6 whether it is state or central! then IA< that is value added ta6! service ta6 etc" 2X 8f someone is shirkin or avoidin their ta6es then the overnment should take decision to frame a procedure for the payment of that ta6es and duties with the penalties for that person" 4X Government can ive restriction or prohi#itions re ardin the carryin of oods and services in specific modes of transport like 8nflamma#le products such as petrol! diesel etc" GX Govt" is licensin the transporters and provides a commission" <hat is they permit the transporters to make trade on a law #asis" JX Government can fi6ed or char ed the frei ht rates for the ovt" vehicle or carrier like trains! #uses etc" <he Government has announced a road policy and a set of uidelines for development of hi hways! includin a series of measures to attract private investment in the sector! #oth forei n and domestic" 0ey initiatives in this sector include% <he overnment has permitted )PP per cent forei n equity

(up to C&Y /P4 million) in construction and maintenance of roads! hi hways! tunnels etc" 8n order to share proAect risks! the overnment! throu h the ?ational 3i hways Authority of 8ndia (?3A8)! can acquire equity stakes up to 1P per cent in #uild$operate$transfer (@O<) proAects" -romoters are permitted to char e toll ta6 on certain proAects" <hese toll ta6es are inde6ed to the wholesale price inde6" 5oad proAects are entitled to corporate ta6 holidays for )P years" <he overnment also facilitates investors with feasi#ility study! land acquisition! resettlement and reha#ilitation! etc" 9arlier! most of the private sector investments were throu h the #uild$operate$transfer schemes" ?ow many of the recent proAects are #ein #id on a toll collection system to finance the proAect" <his new scheme has enerated considera#le interest amon private investors and operators" <he Government of 8ndia has studied various strate ies adopted #y ports world$wide to address similar issues facin ports in 8ndia" <he overnment envisa es commerciali:ationN privati:ationN moderni:ation of maAor e6istin ports" <hese are e6pected to result in technolo ical up rades and overall improvement of performance levels! of the ports" <oday the Government of 8ndia has reco ni:ed the need for privati:in the national carriers althou h the procedure for this is yet to #e decided" 5ecently! chan es have #een made in the Airports Authority of 8ndia Act in order to permit the privati:ation of the two 'etro airports of Delhi and 'um#ai" <he Government has also taken an important step in settin $up

a hi h$powered .ommittee! whose task is to e6amine the inconsistencies in the aviation sector and make recommendations for its rapid improvement" <his document takes into account these positive developments and e6amines important questions often raised in the conte6t of improvin civil aviation in 8ndia

<NIT'2
LO?ISTICS RESO<RCES NET3ORKIN? L 'isti-s O(er(ie# R Third ,art1 L 'isti-s I/,L@ R Air Trans% rt D Frei'ht Su%%l1 Chain Mana'e"ent R Green L 'isti-s !ogistics is the beating heart of many industries that rely on supplies that are created in one location and used or sold in another. The globally intertwined economy necessitates that products be sourced cheaply wherever they are available and moved by land, sea, or air to the place where they can be used most profitably. / huge networ of cargo companies, freight forwarders, security and trac ing operations, warehouse managers, truc drivers, and do8ens of other players have to wor together on a tightly coordinated schedule to eep businesses of all si8es running. These blogs and websites represent some of the best companies and individuals wor ing in the logistics industry today, and reading up on current logistics practices and coming trends is a must for anyone who wants to enter and thrive in this competitive field.

Lo#is!i$s O5"r5i"w
Some of these sites are ept by companies who provide logistics services, and others are purely information sources covering industry news and other points of interest for those whose livelihoods depend on logistics. Bl 's in L 'isti-s Blogs in Logistics is a social networ&ing site especially for the logistics industry. *ith lin&s to Baceboo&, )witter, job boards, forums, and outside
1)

blog lin&s, they connect people both to possible jobs, to logistics and company information, and to others in the industry. DataN #Gl ;a /ata?ow 'lobal is a website that focuses on the technology and best business practices in the logistics industry. )he data they collect is throughout the global logistics trade and helps clients to understand the affects of technology in their industry.
2)

SOLE J The Internati nal S -iet1 ! L 'isti-s Logistics .pectrum is the maga0ine produced by the "nternational .ociety of Logistics. >roducing 1theme2 editions ;uarterly, it is filled with articles written by industry leaders in their chosen field including commercial, data, efficiency, technology, green sustainability, and more.
3)

The L 'isti-s ! L 'isti-s Logistics of Logistics is a blog that simplifies the logistics process, demystifying any technical terms or o#erused acronyms. >eople curious about the complete logistics industry can benefit from the &nowledge and experience of this blog.
4)

In; und L 'isti-s Logistics of Logistics is a blog that simplifies the logistics process, demystifying any technical terms or o#erused acronyms. >eople curious about the complete logistics industry can benefit from the &nowledge and experience of this blog.
5)

Gl ;al L 'isti-s Media 'lobal Logistics 7edia is a news source for global logistics happenings. *ith news, case studies jobs and product listings from the <.-, "ndia, -sia, -ustralia, and the <nited Kingdom, they
6)

L 'isti-s Mana'e"ent Logistics 7anagement pro#ides both monthly and annual printed reports for logistics companies and professionals. *ith news about technology, e;uipment, and trends, it reaches the largest number of industry professionals for a maga0ine of its &ind. /ogistics Manage"ent #ro ides both "onthly and annual #rinted re#orts for logistics co"#anies and #rofessionals. 7ith ne!s about technology, equi#"ent, and trends, it reaches the largest nu"ber of industry #rofessionals for a "aga?ine of its .ind.
)

Su%%l1 Chain and L 'isti-s Bl ' )he .upply @hain and Logistics Blog is maintained by a professor of operations research and supply chain management. Lin&ing to news and resources for modern logistics and supply chain management operators, the blog ser#es as a central point for any new and interesting logistics news.
!)

Telstar L 'isti-s )elstar Logistics is a brand that an indi#idual created to explore urban locations, military bases, and other extreme locations. *hile not practical for true logistics purposes, it does offer an interesting insight into the landscape of urban exploring.
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EU L 'isti-s Hu; Bl ' Kinaxis Su%%l1 Chain C ""unit1 As%en L 'isti-s

1#)

>rinciples of formation of the logistics information

"n order to logistical information ade;uately meet the re;uirements of logistics systems and effecti#e support the process of management and operational control, it should be based on rele#ant principles laid in the basis of its formation. 4-ccessibilit $4 accuracy %4 timeliness C4 the promptness of response to failures and errors D4 flexibility E4 #isibility :- A$$"ssi2i i!). -ny company constantlyneed information about the progress of orders and the presence of reser#es. "nformation of this &ind is usually in abundance, but they are either stored on paper carriers, or their ore extracted from the computer:s memory because of the difference of filling of databases. (n the speed of access to the re;uired information depend responsi#eness to consumer needs and opportunity to impro#e

management decisions. )hus, the customer can at any time as& to be notified about the presence of reser#es and the prospects for the fulfillment of his order. But the a#ailability of information there is another, more 'eneral aspect9 often need information about the status of their orders outside the context of the specific 7anager, the client or the place where the processing ta&es place this order. STUTVWXYZ[\]^YVV]_W` logistics operations re;uires information to be a#ailable to read and update from any point of the world. )his allows you to impro#e the performance of economic acti#ity, planning and management. ;- A$$%ra$). Logistical information should accurately reflect the current #alues and the dynamics of the functional indices 3the passage of orders, in#entory le#els4. Bor uniform wor& of the logistics system will need to stoc& assessment, issued by the information system, coincided with the actual le#el by more than HHJ. "f such a degree of accuracy is not the case, had to &eep the insurance reser#es, which would fulfill the role of a buffer to protect against uncertainty. -s in the case of the a#ailability, the higher the accuracy of the information reduces uncertainty and the need for reser#es. <-TIMELINESSI )imeliness is determined by the inter#al of time between the moment when an e#ent occurs, and when it is reflected in the information system. Bor example, in certain situations the system re;uire hours or days to identify the new order as a real re;uest for deli#ery, and all because of the fact that the order does not always fall directly in the database of the demand. Because of such delay in the recognition against the demand of the effecti#eness of planning decreases, and the #olume of reser#es increases. -nother example of how important the timeliness, connected with the updating of the information on the composition of the reser#es, when the products passes from the category to the category. +#en if commoditymaterial flow is continuous, the information can be updated at #arious inter#als - TaTb[VWcV], hourly, or at the end of the wor&ing day. Best of all, of course, update information in real time, but this is not the most easy solution9 it re;uires a #ery thorough database management. )imely updating of the information contribute to the bar coding, scanning and electronic data exchange.

)imeliness is important not only for operational management of reser#es, but also for management control, carried out on the basis of the daily or wee&ly reports. )imely control allows you to ma&e adjustments to the wor&, when there is still time to correct the situation and minimi0e losses. "n 'eneral, timely information reduces uncertainty and helps in time to identify discrepancies, which reduces the need for reser#es and contributes to the more robust solutions. =-THE PROMPTNESS O' RESPONSE TO 'AILURES AN/ ERRORS 9 /espite the constant increase of a le#el of automation of information systems, many of them re;uire that decisions in extreme situations were ta&en by the managers themsel#es, in the result of the analysis. )he reason is that the basis of many decisions VTd]XbYZ[\]^YVe, because their adoption can not do without the acti#e participation of users of the information system. )he best logistic information system 3L".4 is able to detect such KemergencyK situation automatically. )han&s to this, the employees ha#e the opportunity to focus attention on the most difficult and non-automatic solution of the problems. -dditional examples of exceptions, which should detect B(f+. are #ery large orders, products with 0ero or #ery low le#el of stoc&s, sending delay or loss of producti#ity. "n 'eneral, a good system of logistics information must be able to identify all of the exceptional situation, for which it should be able to identify solutions that re;uire the attention of managers. >- ' "?i2i i!). )he information system should pro#ide data in accordance with the special demands of the consumers. Bor example, one premium necessary to recei#e the in#oice for the supply in each shop, and the other company would prefer to ha#e the in#oice reflects the amount of supplies to all shops of the company. Blexible information system able to meet the re;uirements of each client. )he structure of the information system should pro#ide for the possibility of its de#elopment in response to periodically arising needs of the enterprise, and the impro#ement without the inflated cost and without the complete replacement of the software. @- Visi2i i!). )he output documents and reports should be properly contain the right information and in a con#enient form. Bor example, B(f+. will often on the monitor graph, reflecting the presence of a product in a separate distribution center. )he presentation of the data means that customers when searching for the source of supply

need to #iew information about the a#ailability of this product in all distribution centers of the company. Bor example, if there are se#en of them, then you need to consider and compare the se#en diagrams. *ith the right design of on-screen displays information about the product in all of the se#en distribution centers will be placed on one picture that is much easier to consumers search problem. IN CONCLUSIONI it should be noted that in logistics information is one of the &ey factors of maintenance of competiti#eness. )oday, for it is not enough simply to ha#e a logistics information system. @ompetiti#eness in the present and in the future will pro#ide only such information system, which is able to pro#ide information support of not only the basic logistics operations, but of management and control, the analysis of operational decisions and strategic planning. )he rationally organi0ed B(f+. information should be timely, readily accessible, accurate. Besides, the system should respond ;uic&ly to failures, be flexible and to pro#ide the information in an easy-to-use form. LOGISTICS IN'ORMATION SYSTEMS )o manage your logistics processes effecti#ely, you need a welldesigned management system. )he basis of successful sales wor& is the co-ordination of orders, stoc& status and shipments as well as up-to-date information about the flow of goods. /rawing on its ") expertise, "tella Logistics can pro#ide companies with comprehensi#e solutions, including both physical logistics ser#ices and the related ") systems. )he comprehensi#e logistics ser#ice encompasses warehousing and transport ser#ices and information flow

APPLICATION TECHNOLOGIES

OF

INFORMATION

8nformation and communication technolo y (8.<) has #ecome a eneric and indispensa#le tool for addressin and solvin pro#lems in such diverse areas as mana ement! social and health services! transportation! security and education" As the cost of equipment drops dramatically! it also #ecomes widely accessi#le in the developin countries" 3owever! pro#lems of hi h costs for adequate trainin of personnel! access to state$ to$the$art software and the consultancies needed to facilitate access to 8.< can constitute hi hly dissuasive factors in the dissemination of 8.< in developin countries" <his volume descri#es a series of successful initiatives for the insertion of 8.< in developin economies" 8t also identifies si nificant pro#lems that are likely to #e encountered! and su ests useful solutions to these pro#lems" 8t therefore serves

as a useful tool for e6ample applications! and for the successful assimilation of these technolo ies in developin societies and countries" S"$#le C-"#%er9s) .om#inatorial Generation of 'atroid 5epresentations% <heory and -ractice (,41 0@) Con%en%s: $lgorithm and %omputation& o .om#inatorial Generation of 'atroid 5epresentations% <heory and -ractice (P Hlineny)
o

Detection of .ertain Balse Data 5aces from 5untime <races (K Sinha& R Gupta) Acceleratin @oolean &A< 9n ines Csin <hreadin <echnolo y (T Schubert et al ) 3yper$

%ommunity Informatics&
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<38?0M% <owards 3andlin 8ntuitive and ?urtured 0nowled e (! Anantha"rishnan& R Tripathi) Desi n and Development of a Data 'inin &ystem for &uperstore @usiness (S # ShamimulHasan& $ Ha%ue)

Innovative $pplications for the 'eveloping (orld&

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Eocatin .ell -hone <owers in 9nvironment (H A &iselt& ! #arianov)

5ural

Mo#ile and )#i*uitous %omputing&

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'o#ile -ayments% -artner or -erish? (& 'a(rence et al ) .om#ad e% A Ioice$'essa in Device 'asses () ' *ran"el & D +romber,) for the

+atural ,anguage -rocessing&

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An 8mplementation Eevel Bormal >ava#eans (+ P -padhyaya& + Keshari)

'odel

for

Soft %omputing&
o

A &ymmetric 9ncryption <echnique throu h 5ecursive 'odulo$, Operation of -aired @its of &treams (5'O-@) (P K )ha& ) K #andal) &oftware 5elia#ility Growth 'odelin for 96ponentiatedWei#ull Bunction with Actual &oftware Bailures Data (- +o"hari& . Ahmad)

Speech .ecognition&
o

5eco nition of Bacial -attern #y 'odified 0ohonenFs &elf$Or ani:in 'ap ('0&O') and Analy:e of -erformance (S # KamrulHasan et al )

/thers&
o

8ntrusion Detection &ystem (8D&) Csin -rocessor (P G Shete& R A Patil)

?etwork

and other papers

Electronic Data Interchange (EDI) Is 1 ur - "%an1 *ee%in' %a-e #ith te-hn l '1<
FedEx Trade Networks Transport & Brokerage, Inc. is a pioneer in the application of infor ation technolog! to international logistics. "e #se Electronic Data Interchange (EDI) and a growing en# of we$%$ased tools to co #nicate with c#sto ers, reg#lator! agencies, and o#r glo$al network of air, ocean, and gro#nd carriers. &#r s!ste s let !o# keep track of !o#r ship ents at e'er! step and gi'e !o# co prehensi'e infor ation for planning ti e% and cost%$ased ad'antages. Te-hn l '1 s luti ns $e bring together the e#perience and nowledge of business analysts, information systems, account management and '"I specialists. This cross, functional team has the technical and business savvy to help you to integrate '"I within your overall business strategies. That4s why our e#perienced and nowledgeable '"I business team can ease the pain of your transition to '"I.

=ed'# Trade ;etwor s regularly delivers successful '"I and electronic commerce solutions. $e can impact your logistics and business processes through services that includeK

'lectronic transmission of customs entry information, commercial invoices and status information in a standard format, so you can reduce paperwor and -uic ly audit customs entries. These timely audits help you meet Customs Ioderni8ation /ct )Iod /ct* obligations, ensure that goods are classified and valued correctly, and that accurate duties are paid.

Costs analyses and management of product flows to meet customer and manufacturing demands, ultimately improving your bottom line. Streamlined business processes for fewer errors in manual data entry and elimination of the need for a variety of data -uality chec s. Utili8ation of =TP and email as alternatives to traditional value,added networ s for enhancing your cost,based advantages.

'"a!%r" J E "$!roni$ /a!a In!"r$han#" So %!ion

.table and reliable document interchange @onnection to customs and logistics networ&s all across the globe and $C-hour prior report consulting ser#ice for each country .upports #arious document forms and connection to systems 8apid $C,F failure response globally

B-8@(/+ >-8@+L @(LL+@)"(? g /+L"A+8Y <K , *(8L/*"/+, .-7+ /-Y /+/"@-)+/ A+6"@L+. ?-)"(?*"/+, .+@<8+ *-8+6(<."?' g /".)8"B<)"(?, (8/+8 B<LB"L7+?), >"@K g >-@K .+8A"@+ Barcode Logistics Ltd are a local family run business. -ttention to detail, reliability and excellent customer ser#ice are all &ey factor:s of our business.

*e offer a full range of courier ser#ices from o#ernight parcels and pallets to sameday dedicated #ehicles. (ne of our core business components is o#ernight parcels and we are able to offer a comprehensi#e selection of parcel deli#ery and freight forwarding ser#ices throughout the <K and to any destination around the world. (ur fleet of #ehicles is based in Lancashire but operate accross the <K on a daily basis carrying out collections and delil#eries. *hen dealing with smaller consignments we turn to the larger networ&s to mo#e your freight, ma&ing it more cost effecti#e and &eeping charges to a minimum. .ecure storage is a#ailable within our warehouse which is complemented by our range of fulfilment, order pic&ing and distribution ser#ice. >lease feel free to contact us with any en;uiries you may ha#e.

Sam" da) d" i5"r) *or&ing in concert with a networ& of professional partners, we can assure a same day deli#ery ser#ice across the entire <nited Kingdom. (ur own fleet of #ehicles is on standby $C hours a day, F days a wee&. )his means that if your deli#ery really cannot wait, we can always help you. O5"rni#h! d" i5"r) .tarting at just h%.HD i A-), our o#ernight deli#eries represent an excellent way of getting parcels and pac&ages distributed ;uic&ly, safely and at affordable prices. (ur couriers are professional, and our fleet of #ehicles is #ersatile enough to cater for the deli#ery of all goods from paperwor& to major commercial deli#ery.

1ar"ho%s" s"r5i$"s As w" as "ns%rin# sa0" and ra+id d" i5"ri"s7 w" +ro5id" 0% s!ora#" s"r5i$"s 0or $omm"r$ia n""ds4 1i!h %niF%" 2ar$od" s)s!"ms and ada+!a2 " s"$%r" 0a$i i!i"s7 w" $an !ak" $ar" o0 )o%r 2%sin"ss"s in!"r"s!s a! a r"asona2 " +ri$"4 1" a so o00"r an ord"r 0% 0i m"n! s"r5i$"4 G"! )o%r +ar$" d" i5"r"d !oda) .ince $III, Barcode Logistics Ltd has pro#ided goods deli#ery and warehouse solutions for both domestic and commercial customers. *hether you need a birthday present deli#ered to a friend or a shipment of commercial goods sent to another country, contact us today. *e ta&e each job indi#idually and establish a bespo&e solution based on your needs. )here are ne#er hidden charges - the price you are ;uoted is the price you pay. *e are based in east Lancashire, $ minutes tra#el from junction F of the 7ED. )his allows us excellent access to the region:s motorway networ&s and means that we can reach most locations in the ?orth *est within an hour. (ur own fleet runs daily ser#ices throughout the BB, BL, BY, and >8 postcodes for the deli#ery and collection of parcels. (ur networ& of partners means that we can deli#er on a much wider basis throughout the <nited Kingdom.

.@-??"?'
.canning acti#ity is a common acti#ity on the "nternet today, representing malicious acti#ity such as information gathering by a moti#ated ad#ersary or automated tools searching for #ulnerable hosts 3e.g., worms4. 7any scan detection techni;ues ha#e been de#eloped5

howe#er, their focus has been on smaller networ&s where pac&et-le#el information is a#ailable, or where internal characteristics of the networ& are &nown. Bor large networ&s, such as those of ".>s, large corporations or go#ernment organi0ations, this information might not be a#ailable. )his paper presents a model of scans that can be used gi#en only unidirectional flow data. )he model uses a Bayesian logistic regression, which was de#eloped using a combination of expert opinion and manually-classified training data. "t is shown to ha#e a detection rate of HD.DJ with a false positi#e rate of I.CJ o#erall when tested against a set of %II )@> e#ents.

U$%&4 In%rodu,% on %o Su##l7 C-" n ("n")e$en% 8f your company makes a product from parts purchased from suppliers! and those products are sold to customers! then you have a supply chain" &ome supply chains are simple! while others are rather complicated" <he comple6ity of the supply chain will vary with the si:e of the #usiness and the intricacy and num#ers of items that are manufactured" A simple supply chain is made up of several elements that are linked #y the movement of products alon it" <he supply chain starts and ends with the customer"

Cust "erK The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific -uantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a re-uirement that needs to be fulfilled by the production facility.

,lannin'K The re-uirement triggered by the customer&s sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customer&s orders. To manufacture the products the company will then have to purchase the raw materials needed. ,ur-hasin'K The purchasing department receives a list of raw materials and services re-uired by the production department to complete the customer&s orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the re-uired date. In(ent r1K The raw materials are received from the suppliers, chec ed for -uality and accuracy and moved into the warehouse. The supplier will then send an invoice to the company for the items they delivered. The raw materials are stored until they are re-uired by the production department. ,r du-ti nK Based on a production plan, the raw materials are moved inventory to the production area. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. /fter the items have been completed and tested, they are stored bac in the warehouse prior to delivery to the customer. Trans% rtati nK $hen the finished product arrives in the warehouse, the shipping department determines the most efficient method to ship the products so that they are delivered on or before the date specified by the customer. $hen the goods are received by the customer, the company will send an invoice for the delivered products. Su##l7 C-" n ("n")e$en%

<o ensure that the supply chain is operatin as efficient as possi#le and eneratin the hi hest level of customer satisfaction at the lowest cost! companies have adopted &upply .hain 'ana ement processes and associated technolo y" &upply .hain 'ana ement has three levels of activities that different parts of the company will focus on% strate icH tacticalH and operational"

Strate'i-K /t this level, company management will be loo ing to high level strategic decisions concerning the whole organi8ation, such as the si8e

and location of manufacturing sites, partnerships with suppliers, products to be manufactured and sales mar ets. Ta-ti-alK Tactical decisions focus on adopting measures that will produce cost benefits such as using industry best practices, developing a purchasing strategy with favored suppliers, wor ing with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory. O%erati nalK "ecisions at this level are made each day in businesses that affect how the products move along the supply chain. Hperational decisions involve ma ing schedule changes to production, purchasing agreements with suppliers, ta ing orders from customers and moving products in the warehouse. Su##l7 C-" n ("n")e$en% Te,-nolo)7

8f a company e6pects to achieve #enefits from their supply chain mana ement process! they will require some level of investment in technolo y" <he #ack#one for many lar e companies has #een the vastly e6pensive 9nterprise 5esource -lannin (95-) suites! such as &A- and Oracle" <hese enterprise software implementations will encompass a company7s entire supply chain! from purchasin of raw materials to warranty service of items sold" <he comple6ity of these applications does require a si nificant cost! not only a monetary cost! #ut the time and resources required to successfully implement an enterprise wide solution" @uy$in #y senior mana ement and adequate trainin of personnel is key to the success of the implementation" <here are now many 95solutions to choose from and it is important to select one which fits the overall needs of a company7s supply chain" &ince the wide adoption of 8nternet technolo ies! all #usinesses can take advanta e of We#$#ased software and 8nternet communications" 8nstant communication #etween vendors and customers allows for timely updates of information! which is key in mana ement of the supply chain" .upply @hain 7anagement 7agnox Limited has a supply chain management policy which lays down the principles of our interaction with our suppliers

j /"0ini!ionI .upply @hain 7anagement is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right ;uantities, to the right locations and at the right time, and so as to minimi0e total system cost subject to satisfying ser#ice re;uirements. j No!i$"I . *ho is in#ol#ed $. @ost and .er#ice Le#el %. "t is all about integration

Conflicting Objectives in the SupplyChain . P%r$hasin# j .table #olume re;uirements j Blexible deli#ery time j Little #ariation in mix j Large ;uantities $. Man%0a$!%rin# j Long run production j 6igh ;uality j 6igh producti#ity j Low production cost %. 1ar"ho%sin# j Low in#entory j 8educed transportation costs j =uic& replenishment capability C. C%s!om"rs j .hort order lead time j 6igh in stoc& j +normous #ariety of products j Low prices :4 INTRO/UCTION )he purpose of this document is to define the .upply @hain 7anagement policy. -dherence to this policy is mandatory for all staff

and all business units in the @ompany who are in#ol#ed in the procurement of goods, ser#ices or wor&s from the external supply chain. ; /E'INITION O' SUPPLY CHAIN MANAGEMENT .upply @hain 7anagement is the deli#ery of added #alue through management of the procurement process from initiation of re;uirement to deli#ery of goods and ser#ices and completion of wor&s which the @ompany re;uires to run the business. /isposals of obsolete and redundant items are also encompassed within this definition. <4 POLICY A S%++ ) Chain Mana#"m"n! 0or !h" Com+an) sha 2" $arri"d o%! in a$$ordan$" wi!h !h" d"$ ar"d mission !o KG"n"ra!" ma?im%m shar"ho d"r 5a %" !hro%#h %n$om+romisin# a++ i$a!ion o0 sim+ " dis$i+ in"d +ro#ramm" d" i5"r)K and sha !h"r"0or" %+ho d !h" 0o owin# +rin$i+ "sI 7eet legal re;uirements @omply with the @ompany health, safety, ;uality and en#ironmental re;uirements +nsure that all goods and ser#ices purchased within the @ompany conform to specified re;uirements at point of use 7eet the agreed re;uirements of the customer >ro#ide #alue for money /emonstrate the highest professional ethics, standards and conduct >ro#ide sound commercial financial control, ensure sound corporate go#ernance > VALUE 'OR MONEY -ll sourcing decisions for the @ompany shall demonstrably pro#ide #alue for money recognising that this does not mean just lowest tendered price, but shall ta&e into account costs and benefits that are objecti#ely measurable of the goods, ser#ices or wor&s on a lifetime basis, including, ;uality, deli#ery, maintenance, spares, commercial obligations and ris&.

@ MAKE VERSUS (UY -ll re;uirements for the procurement of goods, ser#ices and wor&s shall be subject to an annual 7a&e-Buy decision process through the preparation of Lifetime >lans. )he 7a&e-Buy decision is the formal strategic process for determining, through economic analysis, the best #alue option to be deli#ered either by the @ompany:s wor&force or procured from the external supply chain. A HEALTH7 SA'ETY AN/ ENVIRONMENT -ll .upply @hain 7anagement shall carried out in accordance with the @ompany:s primary goal that no harm to persons, plant or the en#ironment should result from contractual acti#ities and that the 'roup will wor& with #endors to maintain and impro#e standards in the conduct of operations, in particular by ensuring that they are ade;uately resourced and carried out by suitably ;ualified and experienced people B SEPARATION O' /UTIES Pro$%r"m"n! has o5"ra r"s+onsi2i i!) 0or makin# so%r$in# d"$isions ha5in# o2!ain"d r" "5an! in+%! 0rom !"$hni$a 7 F%a i!)7 $omm"r$ia and 0inan$ia !"ams4 "n addition, to protect the indi#idual, as well as the @ompany, there shall be a three way separation of procurement duties such that different fficers shall9 -uthorise the re;uirement7a&e the commitment7a&e payment Aariation from this rule is permitted in certain documented circumstances such as the use of Aisa @ard, emergencies etc. L4 AUTHORITY AN/ CHANGE MANAGEMENT -ll those in#ol#ed in the procurement process should be aware of the authority they are permitted to exercise and should not depart from it. )he appro#al of all procurement transactions shall be in accordance with formal le#els of delegated authority, including authorisation by the customer, where re;uire

Su%%l1 -hain "ana'e"ent " dels

TOP SUPPLY CHAIN CHALLENGES The =ive Iost Common Supply Chain Ianagement Challenges Periodically we as our practitioner members for their ey supply chain challenges. This list changes over time, here is our current top (. Una;le t a%%l1 the ri'ht "etri-s t "ana'e su%%l1 -hains e!!e-ti(el1 By far the most 4popular4 challenge, finding and implementing the right metrics remains a problem in supply chain management. This includes disputes about the right metrics between supply chains, product lines or departments within a company, agreeing on definitions and calculations, having too many metrics or too few metrics, difficulty benchmar ing and difficulty finding metrics that are supported 4of,the,shelf4 in reporting tools. Hur practitioners recommend using SCHES metrics. SCHE metrics are the de facto standard for measurement. This allows you to move the discussion from what to measure and how to calculate to selecting metrics from a list. Plus, software companies have integrated SCHE in their scorecard and dashboard solutions and benchmar ing is available through SCHEmar T and other service providers. %. Di!!i-ult1 %ri riti?in' su%%l1 -hain i"%r (e"ent e!! rts Companies struggle to identify where to deploy their e#pert resources and in what se-uence. Problem solvers are scarce, you want them to wor on those problems that have the biggest impact on your supply chain performance. This includes lac of a standard approach )every group has their own methods with varying results*, internal politics, lac of fact,based prioriti8ation, capabilitiesLs ills are limited to few ey individuals. If you operate in a pro5ect environment than Pro,(em So(ving with S01R will help you establish the processes for identification and prioriti8ation of your ey resources. =or companies interested in establishing this as a structural supply chain management capability> /dopt I2SCT to identify and develop strategic supply chain management initiatives. &. ,er! r"an-e is la''in' $hether you are driven by the need to reduce costs or inventory, need to improve customer satisfaction, or want to increase the speed to respond to mar et changes, performance gaps continue to ma e it on our top 3 list. "o

you now how to improve the performance of a lagging metric without negatively impacting your other ey metricsF The SCHES framewor was developed with this problem in mind. Since (::6 our practitioners have used SCHE metrics, processes, practices and s ills to assess supply chain performance and develop strutrally sound supply chain networ s and processes operated by s illed staff. Pro,(em So(ving with S01R is recommended to continue the discussion how to solve supply chain problems using proven techni-ues. '. C "%lexit1 ! su%%l1 -hains Serving many different customers with a wide varity of products and services may result in a comple#, global, networ of suppliers, factories, warehouses, transporters, customers and others. The comple#ity of such a networ is hard to unravel and ma es it difficult to find where and why problems occur. This includes challenges li eK Q$e don4t now what our supply chains areQ, Q$hat is the right number of supply chainsFQ, the desire to standardi8e processes. Gou are not alone, many of our member practitioners have comple# businesses. Those that e#cel at supply chain management now how to segment products and customers in order to develop and maintain the right supply chain strategy, networ , processes and resources. The I2SCT framewor was developed to address these types of problems. /nd if you are not ready to adopt I2SC 5ust yet, consider S01R 2un amenta(s and Pro,(em So(ving with S01R training to understand how SCHES can help your supply chain improvement pro5ects. 3. Findin' and h ldin' n t su%%l1 -hain talent /lthough supply chain management is now a generally accepted and understood function in a company, it is difficult to find true supply chain talent. Supply chain management covers multiple disciplines and it can therefore be difficult to find that all,round supply chain person. 1ow many people in your organi8ation have deep and wide nowledge of planning, sourcing, manufacturing, distribution and order management functionsF 1ow many can see the supply chain as a wholeF This includes problems li e finding the right people, reducing attrition and developing hiring, training and redeployment plans. Hur practitioners recogni8ed this problem in .<<: and e#panded SCHES to include s ills, training, e#perience, aptitudes and competency levels.

/doption by these people aspects of supply chain management were later integrated in the I2SCT framewor . These tools help companies identify the development needs of their staff and organi8ations. The right person at the right place in the organi8ation is one of the eys to prevent your staff from see ing the greener grass ne#t door.

Inventory Planning Strategy

O5"r5i"w

and

Deployment

Knowing how to manage in#entory position and deployment is as important as determining how much to in#entory to maintain and where to stoc& it. -s the company shifts its manufacturing or distribution strategy, the in#entory positioning and deployment strategy should be realigned. /ifferent customers or product lines may re;uire different supply chains and in#entory ser#ice re;uirements. "n#entory >osition and /eployment .trategy is about deciding how best to manage in#entory to support customer deli#ery and supply chain operations in the most efficient and effecti#e manner. (%sin"ss Pro2 "m -re you experiencing these business challengesQ /o these ;uestions sound familiarQ Common (%sin"ss Cha "n#"s j @hanging postponement j j j j manufacturing strategy5 build-to-stoc& #s.

@hanging distribution strategy9 consolidated #s. fragmented @hanging supply chain networ& design ?eed to rationali0e in#entory stoc&ing locations /ifficulty rebalancing in#entory across the networ&

KEY *UESTIONS 'OR CONSI/ERATION

j *hich products should be stoc&ed centrally and which should be stoc&ed at all locationsQ j @an we consolidate our in#entory storage and ta&e ad#antage of in#entory ris& poolingQ j "f we transition from a build-to-stoc& to postponement manufacturing or configuration strategy, where should in#entory be positionedQ "n what form should in#entory be storedQ j .hould we stoc& product in our distribution networ& or ha#e our supplier drop ship product directly to the customerQ j 6ow much should we order and when should we place an order from suppliersQ *hat is the projected impact to in#entory positionQ

Unit-4 Inventory management

<he answer to the question of Dwhat is inventory mana ementD is% 8nventory mana ement is a collection of interdisciplinary processes that include a full circle from supply chain mana ement to demand forecastin ! throu h inventory control and includin reverse lo istics" 8nventory mana ement starts and ends with supply chain mana ement #ecause many of the opportunities to improve efficiencies start with shortenin order to receipt time without incurrin additional cost" <hat said! the other sta es of the inventory mana ement cycle are no less important in attainin overall efficiency" Given that inventory in all its forms enerally represents one of the top three e6pense lines for nearly all companies! there is a universal need for applyin the ri ht discipline to each step in the process" While in the perfect world! all inventory is consumed daily! we must operate #usinesses in a less than perfect environment" <he challen e is% how close can you et to perfect #efore >ust 8n <ime inventory mana ement #ecomes a little too late"

In5"n!or) O+!imi9a!ion

In5"n!or) O+!imi9a!ion 0or a /"+ar!m"n! o0 !h" '"d"ra Go5"rnm"n! -ssisted in designing, planning, functional testing and deploying a L/-k multi-echelon in#entory optimi0ation solution to set safety stoc& le#els for ,III,III .K<s across the enterprise networ&. 8ecommended changing in#entory strategy to simplify in#entory management. +xpected cost sa#ings and wor&ing capital reductions to be millions of dollars in with similar ser#ice performance. In5"n!or) O+!imi9a!ion " "$!roni$s $om+an) 0or a 2i ion do ar !"$hno o#) and

>erformed multi-echelon in#entory optimi0ation for alternati#e global supply chain designs and manufacturing strategies reducing safety stoc& in#entory more than $IJ. @ompared the in#entory re;uirements for a build-to-stoc& model and a postponement model.

In5"n!or) Sim% a!ion 0or a /"+ar!m"n! o0 !h" '"d"ra Go5"rnm"n!

>erformed in#entory simulation to e#aluate the projected performance from a multi-echelon in#entory optimi0ation. .imulation performance of -year demand history of E,GIIi .K<s resulted in %J-EJ lower fill rates than those projected from in#entory optimi0ation. .imulated actual $-year demand history of $I,IIIi .K<s across more than %I locations to determine an appropriate replenishment policy for customer-facing stoc&ing locations. In5"n!or) Sim% a!ion 0or m% !i.2i ion do ar man%0a$!%r"r 8an in#entory simulation using annual demand forecast to determine the re;uired warehouse space for in#entory storage throughout the year. "dentified in#entory high-points and low-points throughout the year per warehouse. )his analysis was used to assist annual planning and budgeting, and led to implementing l$ million in sa#ings to close warehouse locations and reduce space utili0ation. In5"n!or) Posi!ionin# and /"+ o)m"n! S!ra!"#) Ana )9"d in5"n!or) +osi!ionin# 0or a na!iona m% !i.mi ion do ar man%0a$!%r"r -naly0ed in#entory position and deployment strategy and current stoc&ing locations. 8ecommended consolidating and ris& pooling slower mo#ing, higher #ariability in#entory to be shared across regions and customers. -ssigned faster mo#ing, lower #ariability to be positioned regionally or locally. "ncreased in#entory turns, reduced excess and obsolete in#entory, decreased transportation cost, and impro#ed production planning. -naly0ed opportunities to use different modes and consolidate loads. In5"n!or) R"+ "nishm"n! P annin# 0or a m% !i.mi ion do ar $ons%m"r " "$!roni$s $om+an) /esigned and de#eloped an 7. -ccess-based in#entory replenishment tool that dynamically calculates order ;uantities and projects in#entory le#els based on min,max in#entory le#els and alternati#e shipment methods. @ollaborated with ") programming contractor to write code in .=L. *rote a DD-page user reference guide and trained new users of

the model, resulting in a $IJ reduction in in#entory le#els and enabling scenario analysis.

Chain Mana#"m"n!I S!ra!"#) and P annin# 0or E00"$!i5" O+"ra!ions S%++ ) "ntegrate .trategy, >lanning, and (perations @reate opportunities for re#olutioni0ing your operations through increased efficiencies in the design and management of your supply chain. "n this program, faculty present state-of-the-art models and practical tools for supply chain management and multi-plant coordination. You will learn effecti#e logistics strategies for companies operating complex networ&s and be inspired to integrate supply chain components into a coordinated system to increase ser#ice le#els and to reduce costs. )he effecti#e management of facilities, in#entories, transportation, information, outsourcing and strategic partnering to impro#e operational performance are presented with real-world case studies. +ach participant recei#es the boo&, .upply @hain 7anagement9 .trategy, >lanning, and (peration. O+"ra!ions Mana#"m"n! 1""k You may combine this program with our .cience of Lean .ix .igma (perations program in (perations 7anagement *ee&. *hen ta&en consecuti#ely, these programs are offered at a I-percent discount and pro#ide an executi#e summary of the inno#ati#e approach to operations management used in the highly-acclaimed Kellogg 7Bprogram. S!ra!"#i$ O+"ra!ions 1""k You may combine this program with our (perations .trategy program in .trategic (perations *ee& . *hen ta&en consecuti#ely, these programs are offered at a I-percent discount. *ho .hould -ttend "f you are a senior or mid-le#el manager or consultant responsible for domestic and international supply chain and logistics systems, this program is designed for you.

(perations, purchasing, in#entory control, and transportation managers who want to ensure smooth production with as little in#entory as possible, high customer ser#ice le#els, and low systemwide cost are encouraged to attend. You will also benefit from this program if you are a manager who wants to gain a deeper understanding of the role supply chains play in a companyOs o#erall business strategy.

k") 2"n"0i!s

"n this course, you will9

Learn to design supply chains that impro#e supplychain profitability <se product design, strategic sourcing and contracts to most efficiently match supply and demand Build and maximi0e supply-chain coordination and collaboration "dentify supply-chain ris&s and design ris& mitigation strategies +xplore purchasing, production strategies for a global en#ironment >rogram @ontent and distribution

Mana#in# In5"n!or) and /"si#nin# Lo#is!i$s

"dentify performance dri#ers5 impact of product lifecycle characteristics on the ma&e,buy decision 7anage demand uncertainty5 ris& pooling5 multistage in#entory systems5 e-business and supply-chain in#entories

8educe and control demand #ariability through product design, postponement and delayed differentiation S%++ ) Chain Coordina!ion and In!"#ra!ion

/iscuss bullwhip effect, push #ersus pull and distribution strategies5 impact of demand #ariability, lead times, and centrali0ed decision ma&ing5 role of the "nternet in impro#ing supply chain integration

8e#iew continuous replenishment5 #endor-managed replenishments5 third-party logistics

P%r$hasin# and So%r$in# In a S%++ ) Chain

/iscuss framewor&s for outsourcing5 identify areas in which #alue can be extracted from procurement5 understand auctions from the perspecti#e of both buyers and sellers

>articipate in a sourcing simulation with a low cost and responsi#e supplier A$$%ra!" R"s+ons" in a G o2a S%++ ) Chain

/e#elop strategic sourcing for accurate response5 design contracts and networ&s for accurate response +#aluate performance measures5 global capacity as a real option5 opportunities and pitfalls, local #ersus global suppliers, centrali0ed #ersus local control5 logistics networ& design

E.Comm"r$" and !h" S%++ ) Chain

"ncorporate e-commerce into existing supply chains and identify opportunities and explore different business models from a supply-chain perspecti#e

S%++ ) Chain Risk

-naly0e sources of supply-chain ris& and their impact on supply-chain performance5 strategies to help mitigate supply-chain ris& Baculty

.unil @hopra - -cademic /irector5 "B7 >rofessor of (perations 7anagement and "nformation .ystems

/aniel /iermeier - "B7 >rofessor of 8egulation and @ompetiti#e >ractice5 /irector of the Bord 7otor @ompany @enter for 'lobal @iti0enship5 Baculty /irector, Kellogg >ublic->ri#ate "nitiati#e 3K>>"4 Lan -. Aan 7ieghem - 6arold L. .tuart >rofessor of 7anagerial +conomics5 >rofessor of (perations 7anagement

ush and pull! redirects here. "or other uses, see ush and pull #disambiguation$.

)he image shows a technology push, mainly dri#en by internal research and de#elopment acti#ities and mar&et pull, dri#en by external mar&et forces.[ ! )he business terms +%sh and +% originated in logistics and supply chain management,[$! but are also widely used inmar&eting.[%![C! *al-7art is an example of a company that uses the push #s. pull strategy. pushPpull system in business describes the mo#ement of a product or information between two subjects. (n mar&ets the consumers usually!pull! the goods or information they demand for their needs, while the offerers or suppliers !push! them toward the consumers. "n logistics chains or supply chains the stages are operating normally both in pushand pull-manner.[D! >ush production is based on forecast demand and pull production is based on actual or consumed demand. )he interface

between these stages is called the push%pull boundary or decoupling point.[D!

PUSH STRATEGY
-nother meaning of the push strategy in mar&eting can be found in the communication between seller and buyer. /epending on the medium used, the communication can be either interacti#e or non-interacti#e. Bor example, if the seller ma&es his promotion by tele#ision or radio, it:s not possible for the buyer to interact. (n the other hand, if the communication is made by phone or internet, the buyer has possibilities to interact with the seller. "n the first case information is just !pushedK toward the buyer, while in the second case it is possible for the buyer to demand the needed information according to their re;uirements.

-pplied to that portion of the supply chain where demand uncertainty is relati#ely small >roduction and distribution decisions are based on long term forecasts Based on past orders recei#ed from retailer:s warehouse 3may lead to Bullwhip effect4 "nability to meet changing demand patterns Large and #ariable production batches <nacceptable ser#ice le#els +xcessi#e in#entories due to the need for large safety stoc&s Less expenditure on ad#ertising than pull strategy

PULL STRATEGY
"n a mar&eting KpullK system, the consumer re;uests the product and KpullsK it through the deli#ery channel. -n example of this is the car manufacturing company Bord -ustralia. Bord -ustralia only produces cars when they ha#e been ordered by the customers.

-pplied to that portion of the supply chain where demand uncertainty is high >roduction and distribution are demand dri#en

?o in#entory, response to specific orders >oint of sale 3>(.4 data comes in handy when shared with supply chain partners /ecrease in lead time /ifficult to implement

PUSH&PULL MUSIC MARKETING 'UTURE

7any media and music futurists ha#e obser#ed large changes within the music industry and predict larger ones to come. )he introduction and success of social networ&ing, along with the rise of digital music, has transformed the way music is mar&eted to the consumer5 shifting from a push to pull strategy. )he prior push strategy would feature a mar&eting campaign in total control of the message being sent out. )he newer pull strategy has been #iewed as a shift in power from ad#ertisers to consumers, and so re;uires a more adapti#e approach by mar&eters. *ith the increase of social networ&ing platforms and users, social networ&ing has become a major and focal part to music mar&eting adopting the pull mar&eting strategy. >ull mar&eting shifts the emphasis and attention onto the customer, trying to mar&et in the correct places by &nowing who the target audience . @onsumers are increasingly customi0ing to better suit their indi#idual needs. 8ather than relying on music companies or a /L to pre-determine the mix of songs on a @/, an increasing number of music listeners are downloading indi#idual trac&s and assembling their own se;uence of songs. )his process is also being replicated with the creation of playlists through platforms such as i)unes, .potify and Last B7. Ban-built playlists and mixes are ta&ing o#er the way people get their music. >laylists are ine#itably becoming a pull mar&eting resource that mar&eting alliances must embrace, due to their ability to be shared #ia >eer to peer networ&s. >eople are choosing what they want to hear rather than ha#ing it pushed on them. -s consumers gain access to a greater number of options and platforms, and more information about such ser#ices, the consumer will probably become more demanding on resource pro#iders, re;uiring ser#ices to be made a#ailable on consumers terms, rather than when it is con#enient for the resource pro#iders to deli#er them. "n addition, consumers are demanding the ability to configure their own products from resource pro#iders, leading to rapid growth in options and music ser#ices. )o

thri#e in a broad mar&et, digital music ser#ices attempt different models and features to find the optimum mix and ensure consumer satisfaction.

Insid" /" I Th" s"$r"!s o0 i!s s%++ ) $hain s%$$"ss

)weet Oracle )ags9 supply chain, lean manufacturin What does it take for a C&Y4P #illion hi h$tech iant like Dell 8nc" to compete in todayFs mar in$hun ry personal computer market? DWe are always lookin for ways to take out waste! to take out time and take out costs! and then passin those savin s alon to our customer!D says Dave &chneider! continuous improvement en ineerin mana er for Dell Americas operations" <o meet these oals! Dell relies on a unique supply chain strate y that athers lar e volumes of customer information throu h its direct$sales model and shares it with internal procurement and sales departments! as well as e6ternal suppliers" D<hese close relationships with customers and suppliers allow us to know what we must #e a#le to supply in real time! and then very quickly and precisely meet that demand while maintainin low inventory!D &chneider says" DWe are not manufacturin finished oods that we hope people will #uy" 3owever! the relationships we have with the maAority of our customers ena#le us to forecast accurately without fillin a pipeline of finished oods"D $t/s All About the $n0ormation <o successfully forecast demand! Dell maintains a constant flow of data in two information loops% one #etween customers and the Dell sales team! and the other amon sales! procurement! and suppliers" 0ey metrics Dell shares with suppliers include forecasted sales dollars! sales quantities and parts requirements" 8n return! it

receives data a#out how well suppliers can support these forecasts" DWe need to understand the supporta#ility of our demand in the short term for every sin le product that weFre oin to sell V down to every hard disk! video card and optical drive!D &chneider e6plains" DWhat we are really measurin is our suppliersF a#ility to #e fle6i#le and adAust to our chan in demands"D <he information Dell receives from suppliers tells its sales team what products it can effectively promote" D<hat really oes to a demand$shapin concept"D $n0ormation &volution DellFs communication system evolved from the early days of spreadsheets to todayFs sophisticated online and colla#orative tools! which provide a rich mi6 of current and historical information a#out supplier performance" DellFs other key information technolo y infrastructure components include Oracle Data#ase )P (on which it has standardi:ed) and Oracle 9$@usiness &uite ))i! includin Oracle Binancials! Oracle -urchasin ! Oracle Order 'ana ement! Oracle .olla#oration &uite! Oracle Bield &ales and Oracle <elesales" Dell also uses the Oracle .ustomer Data 3u#" DWe have certainly moved the needle on the use of technolo y in this supply chain process!D &chneider says /" modi0i"s i!s s%++ ) $hain s!ra!"#) j /" E?am+ "I P /ell @omputer has outperformed the competition in terms of shareholder #alue growth o#er the eight years period, HGG- HHE, by o#er %,IIIJ 3see -nderson and Lee, HHH4 /ell modifies its supply chain strategy )his blog post is in relation to the first wee&Os reading assignment and from an article that " came across this wee&

/ell, a DF billion dollar industry, employs its supply chain systems unli&e any other >@ ma&er on the planet. )he company was one of the first to introduce a configure-to-order 3@)(4 model where customers could ha#e millions of configurations to customi0e their >@s according to their re;uirements. )hrough the direct sales approach, /ell builds systems to order, which helps the company to introduce new products and technologies faster than its competitors. /ellOs uni;ue model has shaped the company in estimating customer re;uirements, forecasting demand, and pro#iding low-cost >@s to customers. )he only downside to this business model is the shipment time of about F- C days, as >@s are made after an order is placed. /ue to changing mar&et trends, /ellOs >@ business since last ;uarter has experienced mar&et share losses. "n order to tac&le this situation, /ell has transformed its core principles and de#ised a new strategy called the m+nd user computingO growth plan that deals with simplifying its business, gaining new mar&et share through new prospecti#e customers, employing end-user computing solutions and scaling alternate computing solutions.

/ell is to introduce a m.mart .electionO program where it will pre-build the most popular >@ configurations that customers desire and ship them within $C hours. *ith this new build-to-order 3B)(4 model complementing its existing @)( model, /ell hopes to pro#ide a wider spectrum of options that will be a#ailable for customers to choose from. )his initiati#e changes the whole supply chain landscape for /ell, since it now has to thin& about increasing the warehouse capacity, unli&e their pre#ious @)( model where they could afford to &eep small in#entory space. (n the other hand, /ellOs long history of direct customer sales 3about $ billion customers4, gi#es them a wealth of customer intelligence and help gain a competing ad#antage o#er their ri#als. @lose relationships with customers through direct sales, helps /ell precisely meet the demand and maintain low in#entory as possible. -lso since limited configurations are produced, you &now exactly what is inside each system, which ma&es maintenance and troubleshooting for the original e;uipment manufacturer 3(+74 less complex.

*ith the offering of B)( and @)( models, /ell can customi0e their .K<s for different countries and channels. )his helps to lower cost and dri#e re#enue. )he cost reductions will come out of supply chain and support. "n line with this strategy, /ell plans to de#elop specific models

for education. Bor @hina, it is optimi0ing their offerings with different colors, richer configuration and thinner form factors. "n this regard, /ellOs *yse business, the cloud Pclient computing business is on a growth trajectory with re#enues touching l billion. /ell belie#es that this is the real future dollar play and is wor&ing on dri#ing its long term growth.

/EMAN/'LO1 SUPPLY CHAINM /o"s G"!!in# An Ord"r Thro%#h Yo%r S%++ ) Chain Ca%s" Chaos3 You and your company are under tremendous pressure. Pressure to meet rising customer expectations for product availability and order leadtime, to reduce supply chain costs and to outperform competitors; all in an effort to capture market share. At the same time, market forces are increasing supply chain complexity, push for efficient supply chains result in supply response becoming more vulnerable to disruption; while fragmented markets and product proliferation fosters higher demand uncertainty. Accurate forecasts are becoming harder to create and business processes are becoming less repeatable putting your supply chain into a state of chaos to complete an order! At DemandPoint, we have a long history and proven track record of deciphering these issues and solving your most difficult supply chain problems. Tradi!iona S%++ ) Chains S)s!"ms Ha5" A '%ndam"n!a ' aw4 Since their inception by Joseph Orlicky in the 1970s Material Requirements Planning, better known as MRP, systems are flawed as forecasting logic is embedded into the core DNA. With todays higher demand uncertainty, this causes many businesses to plan and to build solely based off poor point forecasts. The peanut butter approaches of point forecasts and safety stocks across all product families have become antiquated supply chain buffer strategies. There is a better approach to balancing the supply chain with customer demand; by separating the process of forecasting from the process of building product. Plan to forecast. Build to demand.

O%!+"r0orm Yo%r Com+"!i!ors4 1in Mark"! Shar"4 Continuing the almost 30 year legacy of recognizing that a companys ability to adapt to constantly changing customer demand determines its success, the DemandFlow Supply Chain solution is based on applying the award-winning, patented DemandFlow math and science to the entire supply chain; closely integrating customer demand with manufacturing, procurement and order fulfillment. Demand is rarely uniform. However, combine a highly variable response to uniform demand and inventory buffers are still required. Factor in more realistic demand variability and inventories quickly become excessive to ensure service level. Drive quicker, more repeatable response and inventory levels begin to optimize; add demand-driven demand management strategies for sustainable inventory entitlement. While a more traditional forecast driven supply chain can often damage a companys reputation, financials and investor confidence, a wellarchitected demand-driven supply chain becomes a sustainable market advantage that enables you to significantly outperform your competitors in customer service, operating costs, and free cash flow. Contact DemandPoint to see how DemandFlow science can help you outperform your competitors.

Inno5a!i5" So %!ions4 Transforming your supply chain to deliver working capital, operating cost and customer service level benefits through the deployment of best-inclass DemandFlow Supply Chain methodologies, such as: @hannel /esign The data driven grouping of customers with like behaviors and expectations (service level, order lead-time, etc.) to establish order fulfillment standards that most effectively and profitability service those customers; detailed data interpretation and validation through sales organization; increased productivity and profitability allowing business efforts to be directed at exceptions based management. >ostponement .trategy By holding inventory in a less finished state and postponing final product assembly until actual customer demand is known, companies can more quickly respond to market opportunities, offer greater customization options and free up cash for the business.

/emand Blex Bences The traditional master schedule, overly reliant on inaccurate point forecasts, mirrors the unresponsive nature of the factory floor. Work content, measured in minutes or hours, is frequently dwarfed by planning times measured in days or weeks; increasing the impact of market demand variability. Utilizing our patented flex fence logic allows dynamic planning of mix and volume changes based on actual demand. /emand >rofiling The start of the transformation begins with understanding of demand and its journey through your supply chain, including; detailed demand analysis leading to groupings of modeled demand by channel (not necessarily by business segment) with specific sales order policies; delivery based customer requirements; order based; or order policy based with make-to-order, assemble-to-order and make-to-stock replenishment service levels. DemandFlow, our award-winning and patented math and science, drives demand-driven, industry leading factory, supply chain and procurement solutions to deliver real results. /"mand' ow inno5a!ion4 S%++ ) $hain so 5"d4 Con!a$! %s !oda)N CHANNEL DESIGN )he design of a channel in#ol#es the selection of channel alignment, shape, si0e, and bottom slope and whether the channel should be lined to reduce seepage and,or to pre#ent the erosion of channel sides and bottom. .ince a lined channel offers less resistance to flow than an unlined channel, the channel si0e re;uired to con#ey a specified flow rate at a selected slope is smaller for a lined channel than that if no lining were pro#ided. )herefore, in some cases, a lined channel may be more economical than an unlined channel. >rocedures are not presently a#ailable for selecting optimum channel parameters directly. +ach site has uni;ue features that re;uire special considerations. )ypically, the design of a channel is done by trial and error. @hannel parameters are selected and an analysis is done to #erify that the operational re;uirements are met with these parameters. number of alternati#es are considered, and their costs are compared. )hen, the most economical alternati#e that gi#es satisfactory performance is selected. "n this process, it is necessary to include the maintenance costs while comparing different alternati#es. .imilarly, the costs of energy re;uired if pumping is in#ol#ed and, for power canals,

the amount of re#enues produced by hydropower generation must be included in the o#erall economic analysis. )he channel design may be di#ided into two categories, depending upon whether the channel boundary is erodible or non-erodible. Bor erodible channels, flow #elocities are &ept low so that the channel bottom and sides are not eroded. )he minimum flow #elocity in flows carrying a large amount of sediment should be such that the material being transported is not deposited in the channel. "n this chapter, we first consider the design of rigid-boundary channels and then the design of erodible channels.

Dual Su%%l1 Channel Disru%ti n and Su%%l1 Chain Desi'n This is the continuation of the Greece wee and today I am going to have a loo at a mathematical model to capture the effects of dual disruptions in a news, vendor model. This time the three authors )Uanthopoulos, +lachos and Ia ovou* come from the /ristotle University of Thessaloni i.

I'T1H"
The authors developed a model where a retailer is able to order from two different supply channels. =igure ( shows the supply chain schematic. Three different types of the model are modeled separatelyK (. .. 0. unconstrained model, fill rate constrained model, Type I service level constraint, The decision variables are the order -uantities from channel one and two.

The authors conclude

3t is a(so o,serve that as the im.a*t of a isru.tion on the first *hanne( in*reases$ the o.tima( so(ution moves from a so(ution that main(# uti(i4es the first su..(# *hain to a so(ution that main(# uti(i4es the se*on one! De.en ing on the va(ues of the .ur*hase *osts '* i)$ the isru.tion .ro,a,i(ities '.i)$ an the effe*t of a isru.tion '# i)$ one of the su..(iers ma# ominate over the other one$ (ea ing to a sing(e su..(# sour*e! Neverthe(ess$ for ,oth the un*a.a*itate an *a.a*itate .ro,(ems for *ertain *om,inations of the va(ues of *i$ .i$ an #i$ a ua(-sour*ing .o(i*# out.erforms a sing(e-sour*ing one! 3n su*h *ases$ it is o.tima( to .(a*e the (arger .art of the tota( or er to the ominant *hanne( an its (esser .art to the se*on one$ so as to he ge+mitigate the isru.tion risks! Moreover$ for ver# high servi*e (eve(s 'near 5667)$ (arge or ers shou( ,e .(a*e to ,oth su..(iers! 83n9 the *ase in whi*h the first su..(ier is the ominant su..(ier as we(( as the more re(ia,(e from the two! 3n su*h a *ase$ no matter how high the fi(( rate wi(( ,e$ or ers shou( ,e .(a*e on(# to the first su..(ier an the se*on one shou( not ,e a*tivate at a((!

Conclusion This article provides some insights into a dual supply channel disruption case. =rom the title and abstract of the article, I was however e#pecting more discussion of the results, perhaps the impact of other driving factors beside the impact, probability and ordering cost.

Unit $3 su%%l1 -hain "ana'e"ent desi'n

IM,ACT OF INTERNET ON SU,,LF CHAIN &. The 'ynamics of the (upply )hain *. )onflicting +bjectives in the (upply )hain ,. The -ullwhip .ffect

Conflicting Objectives in the Supply Chain . 1ar"ho%sin# j Low in#entory j 8educed transportation costs j =uic& replenishment capability $. C%s!om"rs j .hort order lead time j 6igh in stoc& j +normous #ariety of products j Low prices

E-BUSINESS

THE E-BUSINESS MODELS $.e;Business is the #rocess of redefining old $. business "odels, using 2nternet technology, %. so as to i"#ro e the e9tended enter#rise &. #erfor"ance = e;co""erce is #art of e;Business = 2nternet technology is the dri er of the business '. change = The focus is on the e9tended enter#rise: = 2ntra;organi?ational = Business to 4onsu"er DB%4E = Business to Business DB%BE

25T61RAT6A 3U@@/Y 48A25 MA5A16M65T

The supply chain of a manufacturing enterprise is a world,wide networ of suppliers, factories, warehouses, distribution centres and retailers through which raw materials are ac-uired, transformed and delivered to customers. In order to optimi8e performance, supply chain functions must operate in a coordinated manner. But the dynamics of the enterprise and the mar et ma e this difficultK ban rates change overnignt, political situations change, materials do not arrive on time, production facilities fail, wor ers are ill, customers change or cancel orders, etc. causing deviations from plan. In some cases, these events may be dealt with locally, i.e. they lie within the scope of a supply chain function. In other cases, the problem can not be Qlocally containedQ and modifications across many functions are re-uired. Conse-uently, the supply chain management system must coordinate the revision of plansLschedules across supply chain functions. The agility with which the supply chain is managed at the tactical and operational levels in order to enable timely dissemination of information, accurate coordination of decisions and management of actions among people and systems, is what will ultimately determine the efficient, coordinated achievement of enterprise goals.

O;Ae-ti(es Hur research addresses coordination problems at the tactical and operational levels. It organi8es the supply chain as a networ of cooperating, intelligent agents, each performing one or more supply chain functions, and each coordinating their actions with other agents. Hur focus is in supporting the construction of supply chain intelli gent agent systems in a manner that guarantees that agents use the best communication, coordination and problem solving mechanisms available with minimal programming effort on the developers4 side. $e achieve this goal

by developing communication and coordination theories and methodologies allowing agents to cooperatively manage change and cooperatively reason to solve problems, developing ontologies that semantically unify agent communication, developing intelligent information infrastructures that consistently aware of relevant information, eep agents

developing constraint,based reasoning as the fundamental agent reasoning technology and pac aging the above theories into agent development tools that ensure that agents are able to reuse standardi8ed coordination and reasoning mechanisms, relieving developers from the tedious process of implementing agents from scratch.

Status All abo e technology is currently in #lace. The T0F6 irtual enter#rise #ro ides the unified testbed used by the agents !e built for the "aGor su##ly chain functions: /ogistics, Trans#ortation Manage"ent, 0rder Acquisition, Resource Manage"ent, 3cheduling and Ais#atching. These agents rely on ontologies for acti ity, state, ti"e, resources, cost, quality and organi?ation as a co""on ocabulary for co""unication and use the ser ices of 2nfor"ation Agents that auto"atically distribute infor"ation and "anage infor"ation consistency and e olution. $e have developed a unified theory of constraint,based scheduling and used it to build the Scheduling and other agents. =inally, theories of coordination as constraint rela#ation have been developed and are being incorporated into agents.

On$' in' # r* $e are now developing a Generic /gent Shell that will support agent construction in a more principled way, pro viding several layers of reusable services and languages. They are concerned with agent communication, specification of coordination mechanisms,

services for conflict management services for information distribution, common sense reasoning , time, action, causality, etc. integration of legacy application programs.

Purpose built application programs can ma e use of this agent architecture to enhance their problem solving and to improve their robustness through coordination with other agent based applications. Pre,e#isting )legacy* application programs can also be incorporated with little adaption and can e#perience similar benefits. This latter point is important because in many cases developing the entire application afresh would be considered too e#pensive or too large a change away from proven technology. C lla; rati n 7e collaborate !ith 5u"etri9 /i"ited, a "aGor #ro ider of su##ly chain #roducts and !ith the Technical Uni ersity of Berlin. 5u"etri9 is !or.ing closely !ith us in both require"ents analysis and s#ecification of agent and architecture functionality. They !ill incor#orate our ideas in their ne9t generation of #roducts. 7ith the Technical Uni ersity of Berlin !e !or. closely to design and de elo# the 1eneric Agent 3hell architecture that !ill su##ort agent de elo#"ent.

ENTER,RISE RESOURCE ,LANNING LM: ER, ENTERPRISE RESOURCE PLANNIN ! ERP +8>, short for +nterprise 8esource >lanning, is an industry term for the broad set of acti#ities that helps a business manages the important parts of its business. )he information made a#ailable through an +8> system pro#ides #isibility for &ey performance indicators 3K>"s4 re;uired for meeting corporate objecti#es. +8> software applications can be used to

manage product planning, parts purchasing, in#entories, interacting with suppliers, pro#iding customer ser#ice, and trac&ing orders. +8> can also include application modules for the finance and human resources aspects of a business. )ypically, an +8> system uses or is integrated with an relational databasesystem.

)he deployment of an +8> system can in#ol#e considerable business process analysis, employee retraining, and new wor& procedures. +8> is business management software that allows an organi0ation to use a system ofn integrated applications to manage the business. +8> software integrates all facets of an operation, including de#elopment, manufacturing, sales and mar&eting.

./ 0odules +8> software consists of manyn enterprise software modules that an enterprise would purchase, based on what best meets its specific needs and technical capabilities. +ach +8> module is focused on one area of

business processes, such as product de#elopment or mar&eting. .ome of the more common +8> modules include those for product planning, material purchasing, in#entory control, distribution, accounting, mar&eting, finance and 68.

SUPPLY CHAIN MANAGEMENT MATRI'

.@(8 is based on fi#e distinct management processes9 >lan, .ource, 7a&e, /eli#er, and 8eturn.

lan P >rocesses that balance aggregate demand and supply to de#elop a course of action which best meets sourcing, production, and deli#ery re;uirements. (ource P >rocesses that procure goods and ser#ices to meet planned or actual demand. 0ake P >rocesses that transform product to a finished state to meet planned or actual demand. 'eliver P >rocesses that pro#ide finished goods and ser#ices to meet planned or actual demand, typically including order management, transportation management, and distribution management. /eturn P >rocesses associated with returning or recei#ing returned products for any reason. )hese processes extend into post-deli#ery customer support.

.nable - ?ew process since Aersion

3/ec $I $4.

*ith all reference models, there is a specific scope that the model addresses. .@(8 is no different and the model focuses on the following9

-ll customer interactions, from order entry through paid in#oice. -ll product 3physical material and ser#ice4 transactions, from your supplierOs supplier to your customerOs customer, including e;uipment, supplies, spare parts, bul& product, software, etc. -ll mar&et interactions, from the understanding of aggregate demand to the fulfillment of each order.

.@(8 does not attempt to describe e#ery business process or acti#ity. 8elationships between these processes can be made to the .@(8 and some ha#e been noted within the model. (ther &ey assumptions addressed by .@(8 include9 training, ;uality, information technology, and administration 3not supply chain management4. )hese areas are not explicitly addressed in the model but rather assumed to be a fundamental supporting process throughout the model. .@(8 pro#ides three-le#els of process detail. +ach le#el of detail assists a company in defining scope 3Le#el 4, configuration or type of supply chain 3Le#el $4, process element details, including performance attributes 3Le#el %4. Below le#el %, companies decompose process elements and start implementing specific supply chain management practices. "t is at this stage that companies define practices to achie#e a competiti#e ad#antage, and adapt to changing business conditions. .@(8 is a process reference model designed for effecti#e communication among supply chain partners. -s an industry standard it also facilitates inter and intra supply chain collaboration, hori0ontal process integration, by explaining the relationships between processes 3i.e., >lan-.ource, >lan-7a&e, etc.4. "t also can be used as a data input to completing an analysis of configuration alternati#es 3e.g., Le#el $4 such as9 7a&e-to-.toc& or 7a&e-)o-(rder. .@(8 is used to describe, measure, and e#aluate supply chains in support of strategic planning and continuous impro#ement. "n the example pro#ided by the picture the Le#el relates to the 7a&e process. )his means that the focus of the analysis will be concentrated on those processes that relate to the added-#alue acti#ities that the model categori0es as 7a&e processes. Le#el $ includes % sub-processes that are 1children2 of the 7a&e 1parent2. )hese children ha#e a special tag P a letter 374 and a number

3 , $, or %4. )his is the syntax of the .@(8 model. )he letter represents the initial of the process. )he numbers identify the 1scenario2, or 1configuration2. 7 e;uals a 17a&e build to stoc&2 scenario. >roducts or ser#ices are produced against a forecast. 7$ e;uals a 17a&e build to order2 configuration. >roducts or ser#ices are produced against a real customer order in a just-in-time fashion. 7% stands for 17a&e engineer to order2 configuration. "n this case a blueprint of the final product is needed before any ma&e acti#ity can be performed. Le#el % processes, also referred to as the business acti#ities within a configuration, represent the best practice detailed processes that belong to each of the Le#el $ 1parents2. )he example shows the brea&down of the Le#el $ process 17a&e build to order2 into its Le#el % components identified from 7$.I to 7$.IE. (nce again this is the .@(8 syntax9 letter-number-dot-serial number. )he model suggests that to perform a 17a&e build to order2 process, there are E more detailed tas&s that are usually performed. )he model is not prescripti#e, in the sense that it is not mandatory that all E processes are to be executed. "t only represents what usually happens in the majority of organi0ations that compose the membership base of the .upply @hain @ouncil. )he Le#el % processes reach a le#el of detail that cannot exceed the boundaries determined by the industry- agnostic and industry-standard nature of the .@(8 model. )herefore all the set of acti#ities and processes that build P for instance P the 7$.I% 1>roduce g test2 process will be company-specific, and therefore fall outside the modelOs scope.

&upply .hain 95- 'odules of system <his section descri#es the #asic modules and features of an 95- system that are unique to supply chain processes" <he supply chain modules are typically inte rated into a sin le system used #y multiple functions in the or ani:ation" <his represents one of the reatest challen es to information systems developers" 'any information systems have rown in increments! with different divisions and functions developin their own systems and applications" 95- systems desi ned to inte rate these le acy systems provide a means of linkin

sources" &upply chain processes require information from a variety of sources includin %

.urrent inventory and order status .ost accountin &ales forecasts and customer orders 'anufacturin capacity ?ew product introductions .omputer$aided desi n (.AD) drawin s -roduct and quality specifications &upplier capa#ilities <ransportation rates Borei n currency e6chan e rates .ompetitive #enchmark analysis

<he role of these modules throu hout the order fulfillment cycle is descri#ed ne6t% Inventory Management $nd %ontrol <he purpose of this module is to provide control and visi#ility to the status of individual items maintained in inventory" <he main functions of this module are to maintain inventory record accuracy and to enerate material requirements for all purchased items" <he system should also #e a#le to analy:e inventory performance of purchased items" Material .e*uirements -lanning (M.<his module involves the plannin of material requirements enerated in the inventory control and mana ement module" <his part of the system also allows the manual input of requirements to handle one$time purchase requirements when no esta#lished need or requirement e6ists within the system" <he '5- module enerates automatic purchase requisitions

and passes that information to the material release system" <his step is necessary #efore eneratin material releases #ecause an item may not have an outstandin #lanket purchase order with a supplier" 8n other words! no supplier may yet e6ist on file for that item" <he proper personnel must have visi#ility to e6ception items so they can esta#lish a purchase order" Material .eleases <his step involves the physical eneration and forwardin of material releases to suppliers (either electronically or #y mailNfa6)" A material requirement does not reach this sta e unless it has an assi ned purchase order" <he material release in a non$electronic environment is a paper$ enerated document sent directly throu h the mail or fa6ed to suppliers" 8n an electronic environment! the supplier receives the release electronically from the purchaser! either throu h an 9D8 system or via the 8nternet" @oth types of systems rely upon this module to enerate the actual material requirement" <he difference lies in how the two environments transmit the release" .e*uest 0or 1uotation -rocessing Within most lar e companies! the routine reorderin of items with esta#lished purchase orders is the responsi#ility of a materials roup not directly connected to purchasin " <he request for quotation module is the direct responsi#ility of purchasin " When a user enerates a material request with no current supplier! it is often the responsi#ility of purchasin to identify potential suppliers" One method to accomplish this is to enerate requests for quotes (5BQs)" An 5BQ is a request to su#mit a proposal #ased on a set of specifications provided #y a #uyer" <his module assists in identifyin qualified suppliers to receive 5BQ requests" <he module automatically enerates! issues! and tracks the pro ress of the 5BQs throu hout the system" A ain! this may #e done either electronically or manually"

Supplier Selection $ssistance Birms are placin an increasin emphasis on supplier selection #ecause of the contri#ution the supply makes to strate ic performance o#Aectives" <he supplier selection assistance module uses a #asic set of mathematical al orithms to assist a #uyer when evaluatin different supply and cost scenarios" -urchase /rder Issuance <his module supports the eneration of purchase orders! which involves the automatic assi nment of purchase order num#ers for selected items alon with the transfer of purchase order information to the proper data#ase(s)" <his module provides purchasin with visi#ility to current purchase orders on file" Supplier -erformance Measurement $nd %ontrol <his module provides visi#ility to open$item status! and measures and analy:es supplier performance" <he module provides updated information a#out the pro ress of a material release as it moves throu h the orderin cycle" <he key features of this module include automatic inquiry of item status! monitorin of order due dates! and supplier performance analysis" @uyers must have current information a#out the status of material releases" <he module should have the capa#ility to monitor planned receipts a ainst due dates! provide immediate visi#ility to past$due items! and fla those items likely to #ecome past due" <he system should enerate summary reports of supplier performance compared a ainst predetermined performance criteria" .riteria can include due$ date compliance! quality ratin s! price variances! quantity discrepancies! and total transportation char es" .eceiving $nd Inspection <his module updates system records upon receipt of an item" 'ost systems hold a received item in a protected state (unavaila#le for use) until all in#ound processin is complete" &ophisticated systems are a#le to do this via a #arcode reader that automatically transmits all necessary information into the data#ase" <his processin includes tasks such as inspection (if required)! material transfer! or stock keepin "

Management $nd .eporting %apa#ilities A well$desi ned 95- supply chain module can enerate timely mana ement reports! providin visi#ility to the entire materials process"

` ERP SUPPORT TO SCM En!"r+ris" r"so%r$" + annin# 3ERP4 is business management softwareousually a suite of integrated applicationsothat a company can use to store and manage data from e#ery stage of business, including9

>roduct planning, cost and de#elopment 7anufacturing 7ar&eting and sales "n#entory management .hipping and payment

+8> pro#ides an integrated real-time #iew of core business processes, using common databases maintained by a database management system. +8> systems trac& business resourcesocash, raw materials, production capacityoand the status of business commitments9 orders, purchase orders, and payroll. )he applications that ma&e up the system share data across the #arious departments 3manufacturing, purchasing, sales, accounting, etc.4 that entered the data. +8> facilitates information flow between all business functions, and manages connections to outside sta&eholders.[ ! +nterprise system software is a multi-billion dollar industry that produces components that support a #ariety of business functions. ") in#estments ha#e become the largest category of capital expenditure in <nited .tates-based businesses o#er the past decade. )hough early +8> systems focused on large enterprises, smaller enterprises increasingly use +8> systems.[$! (rgani0ations consider the +8> system a #ital organi0ational tool because it integrates #aried organi0ational systems and facilitates errorfree transactions and production. 6owe#er, +8> system de#elopment is different from traditional systems de#elopment. [%! +8> systems run on a

#ariety of computer hardware and networ& configurations, typically using a database as an information repository.[C! Two !i"r "n!"r+ris" r"so%r$" + annin# )wo-tier +8> software and hardware lets companies run the e;ui#alent of two +8> systems at once9 one at the corporate le#el and one at the di#ision or subsidiary le#el. Bor example, a manufacturing company uses an +8> system to manage across the organi0ation. )his company uses independent global or regional distribution, production or sales centers, and ser#ice pro#iders to support the main companyOs customers. +ach independent center or subsidiary may ha#e their own business model, wor&flows, and business processes. 'i#en the realities of globali0ation, enterprises continuously e#aluate how to optimi0e their regional, di#isional, and product or manufacturing strategies to support strategic goals and reduce time-to-mar&et while increasing profitability and deli#ering #alue. [ $! *ith two-tier +8>, the regional distribution, production, or sales centers and ser#ice pro#iders continue operating under their own business modeloseparate from the main company, using their own +8> systems. .ince these smaller companies: processes and wor&flows are not tied to main company:s processes and wor&flows, they can respond to local business re;uirements in multiple locations.[ %! Bactors that affect enterprises adoption of two-tier +8> systems include9

7anufacturing globali0ation, the economics of sourcing in emerging economies >otential for ;uic&er, less costly +8> implementations at subsidiaries, based on selecting software more suited to smaller companies +xtra effort re;uired where data must pass between two +8> systems[ C! )wo-tier +8> strategies gi#e enterprises agility in responding to mar&et demands and in aligning ") systems at a corporate le#el while ine#itably resulting in more systems as compared to one +8> system used throughout the organi0ation. [ D!

Chara$!"ris!i$sO"di!P +8> 3+nterprise 8esource >lanning4 systems typically include the following characteristics9

-n integrated system that operates in 3or near4 real time without relying on periodic updates[citation needed! - common database that supports all applications - consistent loo& and feel across modules "nstallation of the system without elaborate application,data integration by the "nformation )echnology 3")4 department, pro#ided the implementation is not done in small steps[ F!

Com+on"n!sO"di!P Transa$!iona da!a2as"

7anagement portal,dashboard Business intelligence system @ustomi0able reporting .imple resource planning - *ho "s /oing *hat and *henQ -nalysing the product +xternal access #ia technology such as web ser#ices .earch /ocument management 7essaging,chat,wi&i *or&flow management

RETAILING AND MARKETING

BY(
K.F215638,MBA

MASTER OF BUSINESS ADMINISTRATION ANNAMALAI UNIVERSITY U52T $

8+)-"L 7-?-'+7+?) P "?)8(/<@)"(?

T)* +,-*.&%/* +0 1%2&3%,4&%+$ %2 &+ 567.* &)* 8++12 %$ &)* )7$1 +0 &)* 0%$76 42*39 R*&7%6%$8 +..43 %$ 766 &)* :73;*&%$8 .)7$$*62 0+3 .+$24:*3 8++12< 27& % .+$2%2& +0 &)* 7.&%/%&= %$/+6/*1 %$ 2*66%$8 1%3*.&6= &+ &)* 46&%:7&* .42&+:*39 T)* 3*&7%6%$8 %2 &)* 672& 6%$; %$ &)* .)7%$ +0 1%2&3%,4&%+$9

A..+31%$8 &+ &)* A:*3%.7$ 722+.%7&%+$ &)* 3*&7%6%$8 %2 .+$2%2& +0 &)* 7.&%/%&= %$/+6/*1 %$ &)* 2*66%$8 1%3*.&6= &+ &)* 46&%:7&* .+$24:*3 0+3 5*32+$769 N+$-,42%$*22 42*

3TRAT6124 @/A55251 25 R6TA2/251

SITUATION ANALYSIS
19 I$&*3$76 S%&47&%+$ 7$76=2%2 29 E>&*3$76 S%&47&%+$ 7$76=2%2

TGP'S H= E'T/I! I;STITUTIH;S HE E'T/I!'ES

)he business institutions or persons who sell goods to final consumers are called retailers. )here are different types of such retailers. Bor the systematic study they can be di#ided in different classes, such as on the basis of ownership, on the basis of product line, on the basis of sales #olume and on the basis of operation method.

"# T$PES O% RETAILERS ON T&E 'ASIS O% O(NERS&IP

(n the basis of ownership, retailers are di#ided into four classes as follows9 i4 Ind"+"nd"n! s!or"s )he retailing shops operated under the ownership of a single person is called independent stores. Because such retailing institutions are operated under the management, ownership, direction and control of a person, they are called independent stores. ii4 Chain s!or"s @hain stores are those retailing institutions, which are operated by a company under its ownership and management. .tores are opened at different places and they are operated under the management and control of company:s central office. iii4 Con!ra$! $hain @ontract chain means a business institution, which is operated by pri#ate entrepreneurs under their own management. But they perform some business related functions such as purchase of goods of same nature, branding, ad#ertising etc. jointly with the retailers. )he retailers selling same nature goods enter into contract for buying goods. Buying huge amount of goods in this method reduces price of goods and the cost also is borne jointly due to which profit can be increased. i54 Cons%m"r s!or"s )he retailing shops operated under the ownership of consumers are called consumer stores. )he consumers in association establish such retailing shops to get rid of the exploitation of middlemen. 'enerally, consumer stores purchase goods directly from producers and sell them to its members at cheap rate.

)# T$PES O% RETAILERS ON T&E 'ASIS O% PRO*UCT LINE

8etailers can be di#ided in three classes on the basis of product line as follows9 i4 G"n"ra s!or"s 'eneral stores are such retailing shops where all &inds of goods are found or bought and sold. "n such stores all the necessary goods for the local consumers are made a#ailable. Boodstuffs, clothes, sports materials, household goods, medicines etc are found in such stores. ii4 Sin# " in" s!or"s .ome retailers deals in only the goods of certain product line. .uch retailers achie#e speciali0ation in selling some &inds of goods. .ingle line retailers in#ol#e in dealing in goods belonging to one product line li&e goods of household uses, medicines, electronic goods, motor cars, clothes etc. iii4 S+"$ia !) s!or"s )he retailers who deal in only one &ind of products of a certain product line are called specialty stores or retailers.

+# T$PES O% RETAILERS ON T&E 'ASIS O% ,OLU-E O% SALES

8etailers can be di#ided in two classes on the basis of #olume of sales as follows9 i4 Sma .s$a " r"!ai "rs )he retailers who buy and sell small ;uantity of goods are called small-scale retailers. 7ostly, the small-scale retailers who operate business under sole ownership or partnership firms &eep small stoc& of goods. )hey purchase necessary goods from wholesalers and sell to local consumers. ii4 Lar#".s$a " r"!ai "rs )he retailers who buy large amount of goods, &eep in store and sell them are called large-scale retailers. .uch businessmen gi#e emphasis to di#ision of labor and speciali0ation to bring effecti#eness in their business. )he financial position of such retailers remain relati#ely strong and ha#e ris& bearing capacity.

.# T$PES O% RETAILERS ON T&E 'ASIS O% -ET&O* O% OPERATION

+n the basis of method of operation, retailers can be classified as follows1 i4 In.s!or" r"!ai in# )he retailers who sell different goods opening their shops are called shop&eepers or in-store retailers. @ustomers buy necessary goods going to retailers: shops. )he retailers from small-scale retailing shops to large-scale retailing shops li&e departmental stores, supermar&ets, multiple shops etc from which goods are sold to final consumers, include in in-store retailing class. ii4 Non.s!or" r"!ai in# ?owadays, retailers are found selling different goods to consumers without establishing any shop. .imilarly, the practice of selling goods #isiting door to door of customers is not a new. (ther main methods of selling goods without opening any shop are retailing through mail and use of #ending machine.

RETAIL IN INDIA ' THE PASTF PRESENT AND F<T<RE

@efore the decade of ei hties! 8ndia with hundreds of towns and cities was a nation strivin for development" <he evolution was #ein witnessed at various levels and the people of 8ndia were learnin to play different roles as #usinessmen and consumers" 5etail$which literally means to put on the market! is a very important aspect of every city" Without a well or ani:ed retail industry we would not have our necessities and lu6uries fulfilled" @e it our daily roceries or fashion accessories and everythin in #etween! retail industry #rin s us the #lissful e6perience of shoppin " <hou h or ani:ed retailin industry #e an much earlier in the developed nations! 8ndia had not actively participated" 3owever with its vast e6panse and youn population! 8ndia in the ,)st century emer es as a hi hly potential retail market" <he Aourney of retailin in 8ndia has #een rivetin and the future promises further rowth" 3ere is a complete picture decipherin the past! present and future trends of 8ndian 5etail 'arket" Re%" l n Ind " ' P"s% @efore the decade of ei hties! 8ndia with hundreds of towns and cities was a nation strivin for development" <he evolution was #ein witnessed at various levels and the people of the nation were learnin to play different roles as #usinessmen and consumers" <he foundation for a stron economy were #ein laid! youth were #eckonin new awareness in all spheres" And this #rou ht in an opportunity for retail industry to flourish" Birst in the metros and maAor cities later to impact su# ur#an and rural market as well" 5etailin in 8ndia at this sta e was completely unor ani:ed and it thrived as separate entities operated #y small and medium entrepreneurs in their own territories" <here was lack of international e6posure and only a few 8ndian companies e6plored the retail platform on a lar er scale" Brom overseas only companies like EeviFs! -epe! 'arks and &pencer etc" had entered tar etin upper middle and rich classes of 8ndians" 3owever as more than 2P W population was formed #y lower and lower middle class people! the market was not completely captured" <his was later reali:ed #y #rands like @i @a:aar and -antaloons who made their products and services accessi#le to all classes of people and today the success of these #rands proves the potential of 8ndian retail market"

A reat shift that ushered in the 8ndian 5etail 5evolution was the eruption of 'alls across all re ional markets" ?ow at its peak! the mall culture actually #rou ht in the or ani:ed format for 5etailin in 8ndia which was a#sent earlier" <hou h malls were also initially planned for the hi her strata! they successfully adapted to cater to the lar er population of 8ndia" And it no wonder! today 'alls are chan in the way common 8ndians have their shoppin e6perience" 3owever there is still reat scope for enhancin 8ndian mall culture as other than am#ience and #randin many other aspects of 5etail &ervice remains to #e developed on international standards" <o your surprise there was not a sin le mall in 8ndia a decade #efore and Aust a few years a o only a handful of them were strivin ! today there are more than 2P malls across different cities and , years from now around 2PP malls are predicted to come up" 8ndeed this shows a very promisin trend ahead! however #efore takin a leap into the future of 5etail in 8ndia! letFs see what the 8ndian retail 8ndustry is currently occupied with" Re%" l n Ind " ' Presen% At present the 5etail industry in 8ndia is acceleratin " <hou h 8ndia is still not at an equal pace with other Asian counterparts! 8ndian is eared to #ecome a maAor player in the 5etail 'arket" <he fact that most of the developed nations are saturated and the developin ones still not prepared! 8ndia secures a reat position in the international market" Also with a hi hly diverse demo raphy! 8ndia provides immense scope for companies #rinin in different products tar etin different consumers" Accordin to the Glo#al 5etail Development 8nde6! 8ndia is positioned as the foremost destination for 5etail investment and #usiness development" <he factor that is presently playin a si nificant role here is the fact that a lar e section of 8ndian population is in the a e roup of ,P$/1 with a considera#ly hi h purchasin powerH this has caused the increase in the demand in the ur#an market resultin in consistent rowth in the 5etail #usiness" And thou h the metros and other tier ) cities continue to sustain 5etail rowth! the #u:: has now shifted from these reat cities to lesser known ones" As the spendin power is no lon er limited to metros! every tier , city in the country has ood market for almost every product or service" Due to this! tier , cities like .handi arh! .oim#atore! -une! 0olkatta! Ahmeda#ad! @aroda! 3ydera#ad! .ochin! ?a pur! 8ndore! <rivandrum etc" provide a ood platform for a #rand to enter 8ndian market" 3owever there are a few precautions for every #rand that e6plores 8ndian market" As 8ndian consumers are very curious and have a #road perspective! they respond well to a new product or concept and there are

very fair chances of a #rand survivin well! #ut every 8ndian consumer #e it an ur#anite or a small town dweller needs a feelin of value for money" Althou h la#eled as ti ht fisted! 8ndian consumers are reat spenders once they reali:e that they are ettin value for their money" Also new product Nservice concepts from the western world are #etter adopted first #y the ur#an 8ndians! the smaller markets respond well to the need #ased retailin rather than lu6ury concepts" As the 8ndian retailin is ettin more and more or ani:ed various retail formats are emer in to capture the potential of the market"

'e a 'alls 'ultiple6es Ear e and small supermarkets 3ypermarkets Departmental stores are a few formats which flourishin #oth #i and small re ional markets in the

As the maAor cities have made the present retail scenario pleasant! the future of the 8ndian 5etailin industry lies in the rural re ions" .aterin to these consumers will #rin tremendous #usiness to #rands from every sector" 3owever as the market e6pands companies enterin 8ndia will have to #e more cautious with their strate ic plans" <o tap into the psyche of consumers with different likes and dislikes and differin #ud ets a company has to #e well prepared and hi hly fle6i#le with their product and services" 8n this re ard focusin on developin each market separately can save a #rand from many trou#les" Re%" l n Ind " ' T-e Fu%ure Accordin to a study the si:e of the 8ndian 5etail market is currently estimated at 5s" GP1 crores which accounts for a mea er / W of the total retail market" As the market #ecomes more and more or ani:ed the 8ndian retail industry will ain reater worth" <he 5etail sector in the small towns and cities will increase #y 2P to 4P W pertainin to easy and ine6pensive availa#ility of land and demand amon consumers" Growth in 8ndia 5eal estate sector is also complementin the 5etail sector and thus it #ecomes a stron feature for the future trend" Over a period of ne6t 1 years there will #e a retail space demand of 1P million sq" ft" 3owever with rowin real estate sector space constraint will not #e there to meet this demand" <he rowth in the retail sector is also caused #y the development of retail specific properties like malls and multiple6es"

Accordin to a report! from the year ,PP/ to ,PPJ the retail sales are rowin at a rate of J"/W per annum" With this the or ani:ed retail which currently has only /W of the total market share will acquire )2$,P W of the market share #y the year ,P)P" Bactors that are playin 5etail are as follows%

a role in fuellin

the #ri ht future of the 8ndian

<he income of an avera e 8ndian is increasin and thus there is a proportional increase in the purchasin power" <he infrastructure is improvin reatly in all re ions is #enefitin the market" 8ndian economy and its policies are also #ecomin more and more li#eral makin way for a wide ran e of companies to enter 8ndian market" 8ndian population has learnt to #ecome a ood consumer and all national and international #rands are #enefitin with this new awareness" Another reat factor is the internet revolution! which is allowin forei n #rands to understand 8ndian consumers and influence them #efore enterin the market" Due to the reach of media in the remotest of the markets! consumers are now aware of the lo#al products and it helps #rands to #uild themselves faster in a new re ion3owever despite these factors contri#utin to the rowth of 8ndian retail 8ndustry! there are a few challen es that the industry faces which need to #e dealt with in order to reali:e the complete scope of rowth in 8ndian market" Borei n direct investment is not allowed in retail sector! which can #e a concern for many #rands" @ut Branchise a reements circumvent this pro#lem" Alon with this re ulations and local laws and real estate purchase restrictions #rin up challen es" Other than this lack of inte rated supply chain and mana ement and lack of trained workforce and flu6 of the market in terms of price and product choice also need to #e eliminated"Despite these challen es many international #rands are thrivin in the 8ndian market #y findin solutions around these challen es" A company that plans to enter 8ndian market at this time can definitely look forward to reat #usiness if it analy:es and puts efforts on all parameters" And with Good -lannin ! <imely 8mplementation and a media campai n that touches 8ndian consumers any #rand can o far ahead in the 8ndian 5etail 5evolution"

OR?ANIJED RETAIL IN INDIA

The recent years have witnessed rapid transformation and vigorous profits in Indian retail stores across various categories. This can be contemplated as a result of the changing attitude of Indian consumers and their overwhelming acceptance to modern retail formats. !sian markets witness a shift in trend from traditional retailing to organi3ed retailing driven by the liberali3ations on Boreign :irect Investments. Bor example, in 'hina there was a drastic structural development after B:I was permitted in retailing. India has entered a stage of positive economic development which re-uires liberali3ation of the retail market to gain a significantenhancement. :omestic consumption market in India is estimated to grow approximately E to FG with retail accounting for H8G of the overall segment. If this H8G, organi3ed retail is #ust JG which is comparatively lesser than other countries with emerging economies. In developed countries organi3ed retailing is the established way of selling consumerproducts. :espite the low percentage, Indian textile industry has grown noticeably in organi3ed retailing of textile products. The negative phase in exports may have compelled the Indian textile retailers to explore the opportunities in the domestic market substantially causing the outstanding growth in the concerned segment.These indications give a positive notion that organi3ed retailing has arrived in the Indian market and is here to stay. It is expected to grow >J-?8 per cent annually and would triple in si3e from )s?J,888crore in >88K-8J to )s687,888 crore /L>K billion0 by >868.

India is on the radar screen in the retail world and global retailers and at their wings seeking entry into the Indian retail market. The market is growing at a steady rate of 66-6> percent and accounts for around 68 percent of the country2s G:%. The inherent attractiveness of this segment lures retail giants and investments are likely to sky rocket with an estimate of )s>8->J billion in the next >-? years, and over )s >88 billion by end of >868. Indian retail market is considered to be the second largest in the world in terms of growth potential. ! vast ma#ority of India"s young population favors branded garments. With the influence of visual media, urbanconsumer trends have spread across the rural areas also. The shopping spree of the young Indians for clothing, favorable income demographics, increasing population of young people #oining the workforce with considerably higher disposable income, has unleashed new possibilities for retail growth even in the rural areas. Thus, FJG of the retail boom which was focused only in the metros has started to infiltrate towards smaller cities and towns.Tier-II cities are already receiving focused attention of retailers and the other smaller towns and even villages are likely to #oin in the coming years. This is a positive trend, and the contribution of these tier-II cities to total organi3ed retailing sales is expected to grow to >8->JG. CHALLENGES INDUSTRY: FACING THE ORGANIZED RETAIL

:espite the rosy hopes, some facts have to be considered to positively initiate the retail momentum and ensure its sustained growth. The ma#or constraint of the organi3ed retail market in India is the competition from the un-organi3ed sector. Traditional retailing has been deep rooted in India for the past few centuries and en#oys the benefits of low cost structure, mostly owner-operated, therein resulting in less labor costs and little or no taxes to pay. 'onsumer familiarity with the traditional formats for generations is the greatest advantage to the un-organi3ed sector. In the contrary, organi3ed sector have big expenses like higher labor costs, social security to employees, bigger premises, and taxes to meet. !vailability and cost of retail space is one ma#or area where Government intervention is necessary. (iberali3ing policy guidelines for B:I needs focus as well. %roper training facilities for meeting the increasing re-uirements of workers in the sector would need the attention of both Government and the industry. 'ompetition for experienced personnel would lead to

belligerence between retailers and higher rates of attrition, especially during the phase of accelerated growth of the retail industry. The process of avoiding middlemen and providing increased income tofarmers through direct procurement by retail chains need the attention of policy makers. Taking care of supply chain management, mass procurement arrangements and inventory management are areas that need the focus of entrepreneurs. India is now on the radar of global retailers. !ccelerated development of retailing industry in the country and building brand value of domestic products is essential not only for marketing our consumer products more efficiently, but also for the development of our own retailing industry

9?<95 OB .O5-O5A<8O? 59<A8E 8? 8?D8A

)he "ndian retail sector, which traditionally has been the source of li#elihood for millions of small scale entrepreneurs, is witnessing a dramatic shift in terms of organisation P from the traditional family-run small shops and street mar&ets to modern formats of retailing such as mega-stores, supermar&ets and hypermar&ets.

)he entry of organised corporate retail in the country and its subse;uent expansion at a fast pace has led to a widespread debate on its pros and cons. 6owe#er, thus far case study research on its implicationsonthemillionsofsmall shop owners and street haw&ers is scanty. "n the

absenceofade;uate empirical e#idence, this study is, therefore, an attempt to understand the concerns of the small retailers P including &irana stores and street #endors dealing in food and grocery retailing in the metro city of 7umbai. *e hope this paper will be useful for researchers, academicians, acti#ists and common people to build an understanding on the impact of organised,corporate retail on the millions earning their li#elihood through retail.

Uni! ;
TARGETING CUSTOMERS AND GATHERING INFORMATION

This sub-category encompasses identifying and understanding consumers, and information gathering and processing in retailing. A Vid"o Look a! R"!ai in# ;Q;Q 'oca-'ola )esearch has produced a neat video on retailing >8>8, especially from the perspective of appealing to younger consumers. Take a look. Thanks#i5in# ;Q:< Sho++in#I H)+"r2o " V"rs%s R"a i!) ,ow good or bad were the results for the Thanksgiving Weekend9 If one looks at today2s headlines, you would think it was a disaster. That2s the hyperbole. Take the headlines from the Mew *ork Times1 @Gloomy Mumbers for ,oliday +hopping2s 4ig WeekendA and the Wall +treet Nournal1 @,oliday +ales +ag :espite 4lit3 of :eals.A 4ut how about the reality9 *es, the K-day sales revenues were down slightly /from LJ7.6 billion in >86> to LJE.K billion in >86?, according to early estimates0. !nd yes, retailers2 profit margins will be s-uee3ed by the continuing discounts until 'hristmas. *et, consider this1 !ccording to the Mational )etail Bederation1 @&ore than 6K6 million uni-ue shoppers will have shopped by the end of the big Thanksgiving weekend, up from 6?7 million over the same time frame last year. Bor those who shopped multiple times over the weekend, the survey found more than >KF million waited in line, took advantage of big discounts offered throughout the mall, and shopped on retailers2 Web sites, up from >KE million shoppers last year.A &any reports indicated that 4lack Briday revenues were affected by more store openings on Thanksgiving. +o what9 The holiday weekend covers four days. Mow that more retailers o%en on Thursda'4 it is im%ortant to not o-erreact to an' sales swa%s *etween Thursda' and Frida'/ 5ook at the results of the whole weekend66 This is where 7*ig data8 9eroes in too much/ The holiday season begins earlier each year, making the Thanksgiving weekend less important than it used to be. When the shopping season starts earlier, customers shift their buying behavior. They do not spend significantly more over the holiday season. The way the media reports handle the holiday shopping season typically do not take into account the earlier start to the season. They @discoverA retailing each year around Thanksgiving. The M)B still expects holiday shopping to rise by ?.7 percent over >86>. This is a more important measure of holiday successDfailure by retailers. 'onsumers have gotten smarter. They look for the big discounts and hold off on buying gifts that are not on sale.

+@ A N"w In0o#ra+hi$ on G o2a

R"!ai in# Tr"nds

'egid, a software developer focused on retailing, has produced an excellent infographic on retailing trends around the globe. This infographic incorporates data from the !.T. Oearney Global )etail :evelopment Index1 @The Global )etail :evelopment Index is an annual study that

.@R"!ai "rs P%m+in# U+ /i#i!a

Ad5"r!isin#

!s we know, digital communications and retailing are booming. Mow, new data from e&arketer shows how big the boom is1 @4olstered by growing 5-commerce sales and time spent across digital channels, the $.+. retail industry will grow its digital ad spending P

/@How R"!ai "rs Ar" P annin# Th"ir Promo!ions This Ho ida) S"ason
!s we noted recently, the timing of holiday promotions is a big deal /pun intended 1-00. !nd most retailers really get this. !ccording to e&arketer1 @'onsumers seem to have the impression that marketers are constantly expanding the holiday

RETAIL STORE LOCATION IM,ORTANT FACTORS

TIPS FOR CHOOSIN? A LOCATION +@ , %ulati n and F ur Cust "er If you are choosing a city or state to locate your retail store, research the area thoroughly before ma ing a final decision. Eead local papers and spea to other small businesses in the area. Hbtain location demographics from the local library, chamber of commerce or the Census Bureau. /ny of these sources should have information on the area4s population, income and age. Gou now who your customers are, so ma e sure you find a location where your customers live, wor and shop. .@ A--essi;ilit1> Visi;ilit1 and Tra!!i-

"on4t confuse a lot of traffic for a lot of customers. Eetailers want to be located where there are many shoppers but only if that shopper meets the definition of their target mar et. Small retail stores may benefit from the traffic of nearby larger stores.

1ow many people wal or drive past the location. Is the area served by public transportationF Can customers and delivery truc s easily get in and out of the par ing lotF Is there ade-uate par ingF "epending on the type of business, it would be wise to have somewhere between 3 to 9 par ing spaces per (,<<< s-uare feet of retail space. $hen considering visibility, loo at the location from the customer4s view point. Can the store be seen from the main flow of trafficF $ill your sign be easily seenF In many cases, the better visibility your retail store has, the less advertising needed. / specialty retail store located si# miles out of town in a free standing building will need more mar eting than a shopping store located in a mall.

/@ Si'na'e> E nin' and ,lannin' Before signing a lease, be sure you understand all the rules, policies and procedures related to your retail store location. Contact the local city hall and 8oning commission for information on regulations regarding signage. /s about any restrictions that may affect your retail operation and any future planning that could change traffic, such as highway construction. 0@ C "%etiti n and Nei'h; rs Hther area businesses in your prospective location can actually help or hurt your retail shop. "etermine if the types of businesses nearby are compatible you4re your store. =or e#ample, a high,end fashion bouti-ue may not be successful ne#t door to a discount variety store. Place it ne#t to a nail or hair salon and it may do much more business. 2@ L -ati n C sts

Besides the base rent, consider all costs involved when choosing a retail store location.

$ho pays for lawn care, building maintenance, utilities and securityF $ho pays for the up eep and repair of the heatingLair unitsF If the location is remote, how much additional mar eting will it ta e for customers to find youF 1ow much is the average utility billF $ill you need to ma e any repairs, do any painting or remodeling to have the location fit your needsF $ill the retailer be responsible for property ta#esF The location you can afford now and what you can afford in the future should vary. It is difficult to create sales pro5ects on a new business, but one way to get help in determining how much rent you can pay is to find out what sales similar retail businesses are ma ing and how much rent they4re paying. 3@ ,ers nal Fa-t rs If you plan to wor in your store, thin about your personality, the distance from the shop to home and other personal considerations. If you spend much of your time traveling to and from wor , the commute may overshadow the e#hilaration of being your own boss. /lso, many restrictions placed on a tenant by a landlord, management company or community can hamper a retailer4s independence. 5@ S%e-ial C nsiderati ns Gour retail shop may re-uire special considerations. Ia e a list of any uni-ue characteristic of your business that may need to be addressed.

$ill the store re-uire special lighting, fi#tures or other hardware installedF /re restrooms for staff and customers availableF Is there ade-uate fire and police protection for the areaF Is there sanitation service availableF "oes the par ing lot and building e#terior have ade-uate lightingF "oes the building have a canopy that provides shelter if rainingF "on4t feel rushed into ma ing a decision on where to put your retail store. Ta e your time, research the area and have patience. If you have to change your schedule and push bac the date of the store4s opening, than do so. $aiting to

find the perfect store location is better than 5ust settling for the first place that comes along. The wrong location choice could be devastating to your retail business.

8+)-"L )8-/+
)he 8etail )rade sector comprises establishments engaged in retailing merchandise, generally without transformation, and rendering ser#ices incidental to the sale of merchandise. )he retailing process is the final step in the distribution of merchandise5 retailers are, therefore, organi0ed to sell merchandise in small ;uantities to the general public. )his sector comprises two main types of retailers9 s!or" and nons!or" r"!ai "rs. S!or" r"!ai "rs operate fixed point-of-sale locations, located and designed to attract a high #olume of wal&-in customers. "n general, retail stores ha#e extensi#e displays of merchandise and use mass-media ad#ertising to attract customers. )hey typically sell merchandise to the general public for personal or household consumption, but some also ser#e business and institutional clients. )hese include establishments, such as office supply stores, computer and software stores, building materials dealers, plumbing supply stores, and electrical supply stores. @atalog showrooms, gasoline ser#ice stations, automoti#e dealers, and mobile home dealers are treated as store retailers. "n addition to retailing merchandise, some types of store retailers are also engaged in the pro#ision of after-sales ser#ices, such as repair and installation. Bor example, new automobile dealers, electronics and appliance stores, and musical instrument and supplies stores often pro#ide repair ser#ices. -s a general rule, establishments engaged in retailing merchandise and pro#iding after-sales ser#ices are classified in this sector. )he first ele#en subsectors of retail trade are store retailers. )he establishments are grouped into industries and industry groups typically based on one or more of the following criteria9 . )he merchandise line or lines carried by the store5 for example, specialty stores are distinguished from general-line stores. $. )he usual trade designation of the establishments. )his criterion applies in cases where a store type is well recogni0ed by the industry and the public, but difficult to define strictly in terms of merchandise lines carried5 for example, pharmacies, hardware stores, and department stores. %. C. @apital re;uirements in terms of display e;uipment5 for example, food stores ha#e e;uipment re;uirements not found in other retail industries. 6uman resource re;uirements in terms of expertise5 for example, the staff of an automobile dealer re;uires &nowledge in financing, registering, and licensing issues that are not necessary in other retail industries.

Nons!or" r"!ai "rs, li&e store retailers, are organi0ed to ser#e the general public, but their retailing methods differ. )he establishments of this subsector reach customers and mar&et merchandise with methods, such as the broadcasting of 1infomercials,2 the broadcasting and publishing of direct-response ad#ertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls 3street #endors, except food4, and distribution through #ending machines. +stablishments engaged in the direct sale 3nonstory4 of products, such as home heating oil dealers and home deli#ery newspaper routes are included here. )he buying of goods for resale is a characteristic of retail trade establishments that particularly distinguishes them from establishments in the agriculture, manufacturing, and construction industries. Bor example, farms that sell their products at or from the point of production are not classified in retail, but rather in agriculture. .imilarly, establishments that both manufacture and sell their products to the general public are not classified in retail, but rather in manufacturing. 6owe#er, establishments that engage in processing acti#ities incidental to retailing are classified in retail. )his includes establishments, such as optical goods stores that do in-store grinding of lenses, and meat and seafood mar&ets. *holesalers also engage in the buying of goods for resale, but they are not usually organi0ed to ser#e the general public. )hey typically operate from a warehouse or office and neither the design nor the location of these premises is intended to solicit a high #olume of wal&-in traffic. *holesalers supply institutional, industrial, wholesale, and retail clients5 their operations are, therefore, generally organi0ed to purchase, sell, and deli#er merchandise in larger ;uantities. 6owe#er, dealers of durable nonconsumer goods, such as farm machinery and hea#y duty truc&s, are included in wholesale trade e#en if they often sell these products in single units.

(ETTER RETAIL SITE SELECTION

8etail site selection is not simply a ;uestion of what real estate is a#ailable. "t:s an analytic challenge that re;uires an understanding of the customer and the mar&et potential for a retailer at a location. *hether you are a retailer, shopping center owner,de#eloper, or real estate bro&er,de#eloper, the challenge is the same. 1e belie#e customer beha#ior and demographic profiles dri#e mar&et potential, leading to the right answer about where to place a retail store - or what retail tenants to recruit for your existing location..

RETAIL SITE SELECTIONI 1HAT 1E CAN /O 'OR YOU

*e pro#ide analytical ser#ices, software, and data to help you select store, branch or other business locations that are profitable and contribute positi#ely to your o#erall store or branch networ&.

*hen you wor& with 7apping -nalytics, you will disco#er that retail site analysis leads to a sound business site selection decision. *e include a series of important analyses when helping you select new retail store sites, including9

@ustomer profiling 7apping customer locations @ompetiti#e analysis )rade area de#elopment and mapping /emographic, @ensus, and mar&et data analysis 7ar&et potential analysis -nalysis of site impact on o#erall store networ& :- Ma++in# a N"!work o0 Si!"s !o O+!imi9" Mark"! Co5"ra#" Lust as no man is an island, no retail store sits on its own. (ther stores, competitors, traffic patterns, population density and more affect the profitability of a retail store location. )hat:s why it:s critical to consider retail store networ& optimi0ation when determining9 - new retail store location 6ow many retail stores you can open in an existing mar&et *here you should expand your retail store networ& *hat stores should be closed or consolidated 6ow can you account for all these factorsQ "t:s easy when you wor& with 7apping -nalytics. *e:re experts at it and ready to help you. ;- Lo$a!ions !ha! /" i5"r C%s!om"rs @ustomer analysis and demographic analysis are essential to choosing the best retail store locations. You won:t want to ma&e decisions without &nowing the profile of your best customers and the demographics of the area you are considering for store networ& expansion. Bortunately, 7apping -nalytics is staffed with experts who can help you understand your customers and any geographic area where you may want to open a store. <- 1h"r" ar" !h"r" Mor" C%s!om"rs Lik" Yo%rs3 *e should re-phrase that9 *here are there more customers li&e your best customersQ 8eality is, not all your customers are ideal.

.ome customers purchase infre;uently, don:t spend much money, or ha#e no loyalty, yet manage to consume a lot of your selling resources. (ther customers are stars9 fre;uent purchasers, fiercely loyal, open to crosssell and up-sell offers. )hese are the customers you want more of.

7apping -nalytics will help you find more of these customers with our site selection ser#ices. =- Cr"a!" C%s!om"r Pro0i "s *e build customer profiles based on past purchase beha#ior, demographics, lifestyle segmentation systems, and other mar&et data to gi#e you an accurate sense of who your best customers are.

Learn more about customer profiling (nce you &now what your best customers loo& li&e, where do you find more of themQ >- Ana )9" Mark"! Po!"n!ia You find more ideal customers in geographic areas where the demographic profile of the neighborhood populations closely match the profile of your best customers. - customer profile is a &ey input into understanding mar&et potential. 7ar&et potential is a numerical answer. 7apping -nalytics calculates mar&et potential for any area using estimated mar&et penetration and expected #olume of sales. *e use both a customer profile analysis and mar&et potential analysis, including trade area definition, to ma&e site selection recommendations. Bor the mathematically inclined, thin& of it this way9 @- Rank Po!"n!ia Si!" Lo$a!ions )here may be many potential locations for opening a new store or branch. 6ow do you pic& the right one, or the top three, or howe#er many you need to openQ 7apping -nalytics will help you find the answers. (ur modeling techni;ues result in a store trade area profile and scores for each potential location. You:ll &now how any proposed location compares to an ideal store profile. )he store location score ta&es into account expected sales, mar&et penetration, cannibali0ation, competitor influence, and other factors.

A- K") ("n"0i!s !o Rankin# S!or" Lo$a!ions .peed to mar&et by &nowing where to go first Better allocation of your resources in the retail mar&et Baster return on in#estment by focusing on the most profitable retail locations first Borecast demand and sales more accurately B- Sa "s 'or"$as!in# 0or S!or" Lo$a!ions )he &ey metric in deciding where to open a new store location is its sales potential. 7apping -nalytics uses customer profiles, demographic data, and trade area analsysis to forecast demand and sales potential of proposed locations. .o you:ll always be confident in the locations you choose.

L- 1"E5" don" !his ana )sis s%$$"ss0% ) 0or o!h"rs )o safely mo#e forward on a new branch location suggested by a board member, an lG billion ban& as&ed 7apping -nalytics to model the expected performance. )he model re#ealed the location offered ample deposit potential. 6owe#er, an unconsidered site located only % minutes away offered =QR mor" d"+osi! +o!"n!ia , caused less cannibali0ation on other branches, and carried a total net deposit increase l C million higher than the original location being tested. :Q-O+!imi9" S!or" and (ran$h N"!works !o R"a i9" '% Po!"n!ia

Mark"!

.ite selection focuses on answering ;uestions related to Kwh"r"K . . . *here are your customersQ *here are your best prospectsQ *here are your current stores and your competitors:Q ::-How Man) S!or"s in a N"!work3 -naly0ing the answers to the ;uestions of where gi#es insight into the ;uestion ofKhow man)4K 6ow many suitable mar&ets exist in a gi#en geographic area for the products,ser#ices you offerQ 6ow many locations are necessary to optimally co#er a gi#en mar&et areaQ *hich locations offer the greatest potentialQ )he answers to these ;uestions pro#ide actionable information that can help you build a networ& of stores,branches to ta&e full ad#antage of mar&et opportunity. "t:s the &ind of information decision ma&ers recei#e when wor&ing with 7apping -nalytics.

:;-Goa s o0 N"!work O+!imi9a!ion Mor" R"5"n%"7 Pro0i! and Shar" 0rom C%rr"n! Mark"! Ar"a )here may be untapped potential in your current mar&et footprint. )he ;uestion is9

@an you add stores or branches without cannibali0ing business from existing locationsQ (ur analysis of existing store trade areas and o#erall mar&et potential will identify gaps in your networ& co#erage and point out areas that offer the most opportunity. N"w R"5"n%" O++or!%ni!) in Mark"!s (")ond C%rr"n! N"!work )here may be new mar&ets ripe for your products and ser#ices. )he ;uestion is9

*hich areas offer the greatest mar&et opportunity combined with the lowest ris&Q *e will profile the demographics and mar&et potential in the trade areas around your most profitable stores and use this information to ran& potential mar&ets for expansion. -ll the way down to sales projections for potential store locations. *hen you wor& with 7apping -nalytics, you get the answers you need. -nd the site locations to be profitable.

@ontact us for more information about our site selection analytical ser#ices

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8+)-"L (8'-?"p-)"(? g 6<7-? 8+.(<8@+ 7-?-'+7+?)
*e propose measures that ma&e the organi0ation of a unit more effecti#e and efficient and which are intended to manage the roles, tas&s and responsibilities of each member of the team.

B8?A?.8AE D8'9?&8O? O@>9.<8I9& A?D &C''A5=

2" 3o define operations management

Operations mana ement involves efficiently and effectively implementin the tasks and policies to satisfy the retailer7s customers! employees! and mana ement" <his chapter covered the financial aspects of operations mana ement" Operational dimensions are studied in .hapter )/" ," 3o discuss profit planning <he profit$and$loss (income) statement summari:es a retailer7s revenues and e6penses over a specific time! typically on a monthly! quarterly! andNor yearly #asis" 8t consists of these maAor components% net sales! cost of oods sold! ross profit (mar in)! operatin e6penses! and net profit after ta6es"

/"

3o descri#e asset management, including the strategic profit model, other key #usiness ratios, and financial trends in retailing 9ach retailer has assets and lia#ilities to mana e" A #alance sheet shows assets! lia#ilities! and net worth at a iven time" Assets are items with a monetary value owned #y a retailerH some assets appreciate and may have a hidden value" Eia#ilities are financial o#li ations" <he retailer7s net worth! also called owner7s equity! is computed as assets minus lia#ilities" Asset mana ement may #e measured #y reviewin a firm7s net profit mar in! asset turnover! and financial levera e" ?et profit mar in equals netprofit divided #y net sales" Asset turnover equals net sales divided #y total assets" @y multiplyin the net profit mar in #y asset turnover! a retailer can find its return on assets ( which is #ased on net sales! net profit! and total assets" Binancial levera e equals total assets divided #y net worth" <he strate ic profit model incorporates asset turnover! profit mar in! and financial levera e to yield the return on net worth" 8t allows a retailer to #etter plan and control its asset mana ement" Other key ratios for retailers are the quick ratio! current ratio! collection period! accounts paya#le to net sales! and overall ross profit (in percent)" 8mportant financial trends involve the state of the economyH fundin sourcesH mer ers! consolidations! and spinoffsH #ankruptcies and liquidationsH and questiona#le accountin and financial reportin practices"

1"

3o look at retail #udgeting

@ud etin outlines a retailer7s planned e6penditures for a #ased on its e6pected performanceH costs are linked to oals"

iven time

<here are si6 preliminary decisions% (a) 5esponsi#ility is defined #y top$ down andNor #ottom$up methods" (#) <he time frame is specified" (c) @ud etin frequency is set" (d) .ost cate ories are esta#lished" (e) <he level of detail is ascertained" (f) @ud etin fle6i#ility is determined" <he on oin #ud etin process then proceeds% oals! performance standards! planned spendin ! actual e6penditures! monitorin results! and adAustments" With :ero$#ased #ud etin ! each #ud et starts from scratchH with incremental #ud etin ! current and past #ud ets are uides" <he #ud eted versus actual profit$and$loss (income) statement and the percenta e profit$and$loss (income) statement are vital tools" 8n all #ud etin decisions! cash flow! which relates the amount and timin of revenues received with the amount and timin of e6penditures made! must #e considered" 4" 3o e5amine resource allocation @oth the ma nitude of costs and productivity need to #e e6amined" .osts can #e divided into capital and operatin cate oriesH the amount of #oth must #e re ularly reviewed" Opportunity costs mean for oin possi#le #enefits if a retailer invests in one opportunity rather than another" -roductivity is the efficiency with which a retail strate y is carried outH the oal is to ma6imi:e sales and profits while keepin costs in check"

OPERATION DI(ENSION O86ECTI>ES AND S<((ARY

)" 3o descri#e the operational scope of operations management Operations mana ement efficiently and effectively seeks to enact the policies needed to satisfy customers! employees! and mana ement" 8n contrast to .hapter ),! which dealt with financial aspects! .hapter )/ covered operational facets" ," 3o e5amine several specific aspects of operating a retail #usiness An operations #lueprint systematically lists all operatin functions! their characteristics! and their timin ! as well as the responsi#ility for performin the functions" &tore format and si:e considerations include the use of prototype stores and store dimensions" Birms often use prototype stores in conAunction with rationali:ed retailin " &ome retailers emphasi:e cate ory killer storesH others open smaller stores" 8n space allocation! retailers deploy a

top$down or a #ottom$up approach" <hey want to optimi:e the productivity of store space" -ersonnel utili:ation activities to improve productivity ran e from #etter screenin Ao# applicants to workload forecasts to Ao# standardi:ation and cross$trainin " >o# standardi:ation routini:es the tasks of people with similar positions in different departments" With cross$trainin ! people learn tasks associated with more than one Ao#" A firm can advance its personnel fle6i#ility and minimi:e the total num#er of workers needed at any iven time #y these techniques" &tore maintenance includes all activities in mana in physical facilities" 8t influences people7s perceptions of the retailer! the life span of facilities! and operatin costs" <o #etter control ener y resources! retailers are doin everythin from usin #etter$quality insulation materials when #uildin and renovatin stores to su#stitutin hi h$efficiency #ul#s" @esides everyday facilities mana ement! retailers need to set decision rules as to the frequency and manner of store renovations" Good inventory mana ement requires that retailers strive to acquire and maintain the proper merchandise while ensurin efficient and effective operations" <his encompasses everythin from coordinatin different supplier shipments to plannin customer deliveries (if needed)" &tore security measures protect #oth personal and merchandise safety" @ecause of safety concerns! fewer people now shop at ni ht and some avoid shoppin in areas they view as unsafe" 8n response! retailers are employin security uards! #etter li htin parkin lots! ti htenin access to store facilities! and deployin other tactics" Amon the insurance that retailers #uy are workers7 compensation! pu#lic lia#ility! product lia#ility! fire! accident! property! and directors7 and officers7 lia#ility" 'any firms also have employee health insurance" 'ost C"&" adults use credit cards" .heck and credit payments mean lar er transactions than cash payments" One$third transactions are in cash! one$si6th #y check! and one$half #y de#it card" 5etailers pay various fees to #e a#le to offer payment options to customersH and there is a wide ran e of systems availa#le for retailers" enerally of retail credit or noncash payment

A rowin num#er of retailers have computeri:ed elements of operations" Iideoconferencin and wireless in$store telephone communications are ainin in popularity" .omputeri:ed checkouts and electronic point$of$sale systems are quite useful" 9lectronic point$of$sale systems perform all the tasks of computeri:ed checkouts ( as well as verify check and char e transactions! provide instant sales reports! monitor and chan e prices! send intra$ and inter$store messa es!

evaluate personnel and profita#ility! and store data" &elf$scannin ainin in popularity"

is

With outsourcin ! the retailer pays another party to handle one or more operatin functions" <he oals are to reduce costs and #etter utili:e employees7 time" .risis mana ement must handle une6pected situations as smoothly as possi#le" <here should #e contin ency plans! information should #e communicated to all those affected! all parties should cooperate! responses should #e swift! and the chain of command for decisions should #e clear"

RETAILIN? PRICIN?
Pri$in# is the process of determining what a company will recei#e in exchange for its product. >ricing factors are manufacturing cost, mar&et place, competition, mar&et condition, brand, and ;uality of product. >ricing is also a &ey #ariable in microeconomic price allocation theory. >ricing is a fundamental aspect of financial modeling and is one of the four >s of the mar&eting mix. 3)he other three aspects are product, promotion, and place.4 >rice is the only re#enue generating element amongst the four >s, the rest being cost centers. 6owe#er, the other >s of mar&eting will contribute to decreasing price elasticity and so enable price increases to dri#e greater re#enue and profits. >ricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as9 a fixed amount, ;uantity brea&, promotion or sales campaign, specific #endor ;uote, price pre#ailing on entry, shipment or in#oice date, combination of multiple orders or lines, and many others. -utomated systems re;uire more setup and maintenance but may pre#ent pricing errors. )he needs of the consumer can be con#erted into demand only if the consumer has the willingness and capacity to buy the product. )hus pricing is #ery important in mar&eting.

ELEMENTS O' PRICING

>ricing in#ol#es as&ing many ;uestions li&e9

6ow much to charge for a product or ser#iceQ )his ;uestion is a typical starting point for discussions about pricing, howe#er, a better ;uestion for a #endor to as& is - 6ow much do customers value the products, ser#ices, and other intangibles that the #endor pro#ides. *hat are the pricing objecti#esQ /o we use profit maximi0ation pricingQ 6ow to set the priceQ9 3fixed pricing, cost-plus pricing, demand-based or #alue-based pricing, rate of return pricing, or competitor indexing4 .hould there be a single price or multiple pricingQ .hould prices change in #arious geographical areas, referred to as 0one pricingQ .hould there be ;uantity discountsQ *hat prices are competitors chargingQ /o you use a price s&imming strategy or a penetration pricing strategyQ

*hat image do you want the price to con#eyQ /o you use psychological pricingQ 6ow important are customer price sensiti#ity 3e.g. Kstic&er shoc&K4 and elasticity issuesQ @an real-time pricing be usedQ "s price discrimination or yield management appropriateQ -re there legal restrictions on retail price maintenance, price collusion, or price discriminationQ /o price points already exist for the product categoryQ 6ow flexible can we be in pricingQ9 )he more competiti#e the industry, the less flexibility we ha#e. )he price floor is determined by production factors li&e costs 3often only #ariable costs are ta&en into account4, economies of scale, marginal cost, and degree of operating le#erage

)he price ceiling is determined by demand factors li&e price elasticity and price points

-re there transfer pricing considerationsQ *hat is the chance of getting in#ol#ed in a price warQ 6ow #isible should the price beQ - .hould the price be neutralQ 3i.e.9 not an important differentiating factor4, should it be highly #isibleQ 3to help promote a low priced economy product, or to reinforce the prestige image of a ;uality product4, or should it be hiddenQ 3so as to allow mar&eters to generate interest in the product unhindered by price considerations4. -re there joint product pricing considerationsQ *hat are the non-monetary costs of purchasing the productQ 3e.g. tra#el time to the store, wait time in the store, disagreeable elements associated with the product purchase - dentist -q pain, fishmar&et -q smells4 *hat sort of payments should be acceptedQ 3cash, chec&, credit card, barter4 +lements of pricing $ *hat a price should do % )erminology %. Line pricing %.$ Loss leader %.% >rice,;uality relationship %.C >remium pricing %.D /emand-based pricing %.E 7ultidimensional pricing C ?ine laws of price sensiti#ity and consumer psychology D -pproaches E >ricing tactics F >ricing mista&es G 7ethods H 8eferences I +xternal lin&s and further reading

ESTA8LISH(ENT AND (AINTAININ? THE I(A?E O86ECTI>ES

)" <o show the importance of communicatin with customers and e6amine the concept of retail ima e ," <o descri#e how a retail storeFs ima e is related to the atmosphere it creates via its e6terior! eneral interior! layout! and displays! and to look at the special case of nonstore atmospherics /" 1" <o discuss ways of encoura in shoppin customers to spend more time

<o consider the impact of community relations on a retailerFs ima e

UNIT$0
RURAL MARKETING J CONCE,T AND SCO,E
OB4ECTIVEB The ob5ective of this chapter is to understandK The concept and scope of rural mar ets The nature and attractiveness of rural mar ets Eoadbloc s of Indian Eural Iar ets Solutions to problems of rural mar ets

DEFINITION OF RURAL MARKET AND RURAL MARKETING

India is a land of diversity and about 7<V of the Indian population lives in villages. These llages contribute in the economic development of the nationthrough the production of food ains, vegetables, fruits, etc. '#port of these agricultural commodities result in the generation of petal and earnings offoreign e#change.There are 6<<,<<< villages in India. .3V of all villages account for 63Vof the total rural population. So we can contact 63V of 69< million or <<million population by simply contacting (3<<<< villages D which shows the huge potential of this mar et.The Census defines urban India as ,

Q/ll the places that fall within theadministrative limits of a municipal corporation, municipality, cantonment boardetc or have a population of at least 3,<<< and have at least 73 per cent malewor ing population in outside the primary sector and have a population densityof at least 2<< per s-uare ilometer. Eural India, on the other hand, comprisesall places that are not urbanRQThe government of India only defines a non,urban mar et. /n urban mar et is the one which has a population density of 2<< people per s-L m. 7V ofits population as to be involved in non,agricultural activities and there is amunicipal body. If we go by statistics, roughly around 7<V of the Indianpopulation lives in the rural areas. That&s almost .V of the world population.To e#pand the mar et by tapping the countryside, more and more ;Csare foraying into India4s rural mar ets. /mong those that have made someheadway are industan !ever, Coca,Cola, !G 'lectronics, Britannia, Standard!ife, Philips, Colgate almolive and the foreign,invested telecom companies. Rural Mar*etin' Eural mar eting involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to e#change between rural and urban mar et which satisfies consumer demand and also achieves HEG/;IW/TIH;/! HBP'CTI+'S. (. Urban to EuralK It involves the selling of products and services by urban mar eters in rural areas. These includeK Pesticides, =ICG Products, Consumer durables, etc. .. Eural to UrbanK 1ere, a rural producer )involved in agriculture* sells his produce in urban mar et. This may not be direct. There generally are middlemen, agencies, government co,operatives, etc who sell fruits, vegetables, grains, pulses and others. 0. Eural to ruralK These include selling of agricultural tools, cattle, carts and others to another village in its pro#imity. FEATURES OF INDIAN RURAL MARKETSB !arge, "iverse and Scattered Iar etK Eural mar et in India is large, and scattered into a number of regions. There may be less number of shops available to mar et products. Ia5or Income of Eural consumers is from /gricultureK Eural Prosperity is tied with agriculture prosperity. In the event of a crop failure, the income of the rural masses is directly affected. Standard of !iving and rising disposable income of the rural customersK It is nown that ma5ority of the rural population lives below poverty line

and has low literacy rate, low per capital income, societal bac wardness, low savings, etc. But the new ta# structure, good monsoon, government regulation on pricing has created disposable incomes. Today the rural customer spends money to get value and is aware of the happening around him. Traditional Hutloo K +illages develop slowly and have a traditional change gradually. This is gradually changing due to literacy especially in the youth who have begun to change the outloo in the villages. Eising literacy levelsK It is documented that appro#imately 23V of rural Indians are literate. 1ence awareness has increases and the farmers are well,informed about the world around them. They are also educating themselves on the new technology around them and aspiring for a better lifestyle. "iverse Socioeconomic bac groundK "ue to dispersion of geographical areas and uneven land fertility, rural people have disparate socioeconomic bac ground, which ultimately affects the rural mar et. Infrastructure =acilitiesK The infrastructure facilities li e cemented roads, warehouses, communication system, and financial facilities are inade-uate in rural areas. 1ence physical distribution is a challenge to mar eters who have found innovative ways to mar et their products. /s part of planned economic development, the government is ma ing
continuous efforts towards rural development. In this age of liberali8ation, privati8ation and globali8ation, rural mar et offers a big attraction to the mar eters to e#plore mar ets that are untapped.X O;Ae-ti(eB (* The ob5ective of this chapter is to understandK 2) Characteristics of rural mar et 3) Challenges of rural mar eting 4) The 2Ps of rural mar eting

THE CHANGING SCENARIO

/ dramatic change is in progress in the villages. +illagers who used tocrac open peanut candies, eat the nut and throw away the shell are nowdemanding chocolate candies that will melt in their mouths, not in their hands.The new advertisement of Per featuring Eani Iu er5ee spea s about thedemand created in rural mar ets for chocolates. Charcoal, neem twigs and twigs of babool tree to cleaned teeth arereplaced by Paste. Today, the ultra bright shine of Colgate or some otherinternational brand of toothpaste holds more appeal than the traditional methodsof cleaning teeth.The terminologies being used to describe activities are also undergoingchange with respect to mar eting appeal of products. Consumerism andglobali8ation is invading parts of India where, as some would venture to say, time seems to have ceased for centuries.These villages and small towns, which were once inconse-uential dotson maps, are now getting the attention of global mar eting giants and mediaplanners. Than s to globali8ation, economic liberali8ation, IT revolution,female power, and improving infrastructure, middle class rural India today has

more disposable income than urban India. Eural mar eting is gaining new heights in addition to rural advertising.

CHARACTERISTICS OF RURAL MARKET

+@ Challen'es ! rural "ar*etin' The rural mar et may be attracting mar eters but it is not without itsproblemsK !ow per capita disposable incomes that is half the urban disposableincome> large number of daily wage earners, acute dependence on the vagariesof the monsoon> seasonal consumption lin ed to harvests and festivals andspecial occasions> poor roads> power problems> and inaccessibility to conventional advertising media.1owever, the rural consumer is not unli e his urban counterpart in manyways. The more mar eters are meeting the conse-uent challenges of availability,affordability, acceptability and awareness in rural mar et. .@ A(aila;ilit1 The first challenge in rural mar eting is to ensure availability of theproduct or service. India4s 7, <<,<<< villages are spread over 0.. million s- m>7<< million Indians may live in rural areas, finding them is not easy. They arehighly dispersed.Given the poor infrastructure, it is a greater challenge to regularly reachproducts to the far,flung villages. Iar eter should plan accordingly and strive toreach these mar ets n a regular basis. Iar eters must trade off the distributioncost with incremental mar et penetration.India4s largest I;C, 1industan !ever, a subsidiary of Unilever, has builta strong distribution system which helps its brands reach the interiors of the rural mar et. To service remote village, stoc ists use auto ric shaws, bulloc carts and even boats in the bac waters of ?erala.Coca,Cola, which considers rural India as a future growth driver, hasevolved a hub and spo e distribution model to reach the villages. To ensure fullloads, the company depot supplies, twice a wee , large distributors which whoact as hubs. These distributors appoint and supply, once a wee , smallerdistributors in ad5oining areas. !G 'lectronics has set up 23 area offices and 3: ruralLremote area offices to cater to these potential mar ets. /@ A!! rda;ilit1 The second ma5or challenge is to ensure affordability of the product orservice. $ith low disposable incomes, products need to be affordable to therural consumer, most of who are on daily wages./ solution to this has been introduction of unit pac s by somecompanies. This ensures greater affordability.Iost of the shampoos are available in smaller pac s.

=air and lovely was launched in a smaller pac .Colgate toothpaste launched its smaller pac s to cater to the travelingsegment and the rural consumers. Godre5 recently introduced three brands of Cinthol, =air Glow and Godre5 in 3<, gm pac s.1industan !ever has launched a variant of its largest selling soap brand, !ifebuoy.Coca,Cola has addressed the affordability issue by introducing thesmaller bottle priced at Es 3. The initiative has paid offK 'ighty per cent of newdrin ers now come from the rural mar ets. / series of advertisement for thiswas rune showing people from diverse bac grounds featuring /amir ?han. 0@ A--e%ta;ilit1 of its largest selling soap brand,!ifebuoy.Coca,Cola has addressed the affordability issue by introducing thesmaller bottle priced at Es 3. The initiative has paid offK 'ighty per cent of new drin ers now come from the rural mar ets. / series of advertisement for thiswas rune showing people from diverse bac groundsThe ne#t challenge is to gain acceptability for the product or service.Therefore, there is a need to offer products that suit the rural mar et. !G 'lectronics have reaped rich dividends by doing so. In (::9, it developed a customi8ed T+ for the rural mar et named Sampoorna. It was arunway hit selling (<<,<<< sets in the very first year.Coca,Cola provided low, cost ice bo#es in the rural areas due to the lac of electricity and refrigerators. It also provided a tin bo# for new outlets and thermocol bo# for seasonal outlets.The insurance companies that have tailor, made products for the ruralmar et have also performed well. 1"=C Standard !I=' topped private insurers by selling policies worth Es 0.3 crore in total premia. The company tied up with non,governmental organi8ations and offered reasonably,priced policies in the nature of group insurance covers. 2@ A#areness / large part of rural India is inaccessible to conventional advertisingmedia. Hnly 2( per cent rural households have access to T+.Building awareness is another challenge in rural mar eting. / common factorbetween the rural and the urban consumer is the interest for movies and music.=amily is the ey unit of identity for both the urban and rural consumer. 1owever, the rural consumer e#pressions differ from his urbancounterpart. =or a rural consumer, outing is confined to local fairs and festivalsand T+ viewing is confined to the state,owned "oordarshan. Consumption ofbranded products is treated as a special treat or indulgence.1industan !ever has its own company,organi8ed media. These are

promotional events organi8ed by stoc ists. Godre5 Consumer Products, which is trying to push its soap brands into the interior areas, uses radio to reach the local people in their language.Coca,Cola uses a combination of T+, cinema and radio to reach the ruralhouseholds. It has also used banners, posters and tapped all the local forms ofentertainment. Since price is a ey issue in the rural areas, Coca,Cola advertising stressed its Ymagical4 price point of Es 3 per bottle in all media. !G'lectronics uses vans and road shows to reach rural customers. The companyuses local language advertising. Philips India uses wall writing and radioadvertising to drive its growth in rural areas.. /lso, in India, the retailers are highly fragmented, highly dispersed. /tthe same time, each of these regions serves a large population. The mediapenetration in rural areas is only about 37V. It has been seen that, two out of five Indians are unreached by any media , T+, Press, Eadio and Cinema put together. 1aats, mandis and melas are opportunities.

SEGMENTATION
INTRODUCTION OF SEGMENTATIONS The market for any product is normally made up of several segments. A \u2018market\u2019 after all is the aggregate of consumers of a given product.And, consumer (the end userthe end user), who makes a market, are of varying characteristics and buying behavior. There are different factors contributing for varying mind set ofconsumers. It is thus natural that many differing segments occur within a market.In order to capture this heterogeneous market for any product, marketers usuallydivide or disintegrate the market into a number of submarkets/segments and theprocess is known as market segmentationmarket segmentation. Thus we can say that market segmentation is the segmentation of markets intohomogenous groups of customers, each of them reacting differently to promotion,communication, pricing and other variables of the marketing mix. Market segmentsshould be formed in that way that difference between buyers within each segment is as small as possible. Thus, every segment can be addressed with an individuallytargeted marketing mix.

The importance of market segmentation results from the fact that the buyers of aproduct or a service are no homogenous group. Actually, every buyer has individualneeds, preferences, resources and behaviors. Since it is virtually impossible to caterfor every customer\u2019s individual characteristics, marketers group customers tomarket segments by variables they have in common. These common characteristicsallow developing a standardized marketing mix for all customers in this segment. Through segmentation, the marketer can look at the differences among the customergroups and decide on appropriate strategies/offers for each group. This is preciselywhy some marketing gurus/experts have described segmentation as a strategy of

Segmentation is the process of dividing a heterogeneous mar et into homogeneous sub,units. The division is based on the premises that different people have different preferences. The following are the basic mar et preferencesK 1omogeneous preferences where consumers have roughly the same preferences "iffused preferences where consumers are scattered throughout the mar et by their preferences. Clustered preferences where consumers are found in distinct preference groups.

DEGREES OF SEGMENTATION
If segmentation is considered as a process with two polar points from 8ero to complete, four distinct segmentation approaches are identifiable. "egree of segmentation Ii@ MassMar*etin' In the early period of the twentieth century, many companies practicedmass production and mass distribution. /s economies evolved and societiesbecame civili8ed, consumer choice and re-uirements came into focus. Untilnow, the rural mar et was considered a homogeneous mass as was the IndianIar et till some .< years ago. Some companies depend on mass mar eting, while many others do not. Iii@ Se'"ent Mar*etin' The principal of segment mar eting rests on the reali8ation that buyers differ in their needs, wants, demands and behaviors. The need for segment mar eting

arises whenK Consumers have become more diverse, sophistical and choosy. Competition has become tough Bene!its ! se'"ent "ar*etin'B Company can service its customers more effectively and efficiently Company gains the image of a creative and innovative organi8ation Company may gain monopoly by virtue of its uni-ue mar eting offer. ,rereNuisites ! r se'"ent "ar*etin'B Understanding of consumer needs and wants /wareness of competitors, products and services Innovative capabilities of mar eters to fine tune products and services to the varied customer groups. Iiii@ Ni-he Mar*etin' / niche is a very small group with a distinctive set of traits, who see a special combination of benefits. ;iche mar eting identifies special sub,groups within larger segments and offers different products and services. Ii(@ Mi-r Mar*etin' Iicro Iar eting involves tailoring products and programs to suit the tastes of specific locations and individuals. It includes local mar eting and individual mar eting. Ia@ L -al "ar*etin'K It involves and programs to suit the tastes of specific locations and wants of local customer groups on a geographical basis. The advantages of local mar eting areK 'ffective mar eting in the face of difference in demographics and life styles and communities in different regions. Supports and stimulates retailers, who prefer offers customi8ed to their locality.

DISADVANTAGESB
It may create logistical problems as companies try to meet the varied re-uirements of different regions. It may reduce economies of scale. It may affect the overall image of a brand as promotion programs vary from place to place I;@ Indi(idual "ar*etin'K Individual mar eting is customi8ed mar eting or one,to,one mar eting. Tailoring units, hotels, tourist operators and doctors provide individuali8ed services. Building contractors build houses or flats to the specific re-uirements of customers.

GUIDES TO EFFECTIVE SEGMENTATION

/ny process can be effective, if it has a sound philosophy and practical validity. Segmentation can be effective only if it satisfies the following re-uirementsK Ii@ Measura;le Segments are formed with the help of certain variables. These variables should be distinct, clear and measurable. Hnly then segments can be described in e#act terms and differences understood. Companies, so far, are not able to reach rural mar ets due to lac of proper data. In the absence of information related to si8e, purchasing power and profiles of rural consumers, they considered them similar to urbanites. Iii@ A--essi;le Eeach is important to serve the segments. Till recently, mar eters preferred urban mar ets to rural ones because of the inaccessibility of the latter. They were dependent on the mobile vans and nearby town distributors and retail outlets to reach rural consumers. ;ow, research has established that effective means of reaching rural fol is possible by participation in haats or shan is organi8ed wee ly. /lso, there is considerable improvement in the infrastructure Ia ing several villages accessible. Iiii@ Di!!erentia;le Segments merit consideration of mar eters only when they have distinguishing features. Eural mar eters are identified as a different segment, for their responses are different from the urban in case of some products and programmes. =or instance, in case of buying wrist watches, rural consumers differ with urbans. Eural buyers are more worried about the value for money and weigh the watch in hand to now how heavy it is. Hn the contrary, urban consumers prefer light ones with latest technology. Ii(@ Su;stantial / segment is attractive only when it is profitable. / segment should as such possess

ATTRIBUTES OF EFFECTIVE SEGMENTATION

Market segmentation is resorted to for achieving certain practical purpose. Forexample, it has to be useful in developing and implementing effective and practicalmarketing programmers. For this to happen, the segments arrived at must meet certain criteria such as following :A).IDENTIFIABLE Identifiable:: The differentiating attributes of the segments must be measurable so that they can be identified. B).ACCESSIBLE Accessible:: The segments must be reachable through communication and distribution channels. C).SIZEABLE Sizeable : The segments should be sufficiently large to justify the resources required to target them. A very small segment may not serve commercial exploitation. D).PROFITABLE Profitable:: - There is no use in locating segments that are sizeable but not profitable. E).UNIQUE NEEDS Unique needs : To justify separate offerings, the segments must respond differently to the different marketing mixes. F).DURABLE Durable : The segments should be relatively stable to minimize the cost of frequent changes. G).MEASURABLE Measurable : The potential of the segments as well as the effect of a specific marketing mix on them should be measurable. H).COMPATIBLE: Compatible: - Segments must be compatible with firm\u2019s resources and Capabilities

FMCGRURAL MARKET SHARE AS PERCENT OF ALL INDIA MARKET

The increase in rural purchasingpower is reflected in many ways. Ruralincomes have been growing at morethan 7 percent over the past few years,helping to account for almost 40percent of Indias total consumptionof goods and services . !on"foode#penditures are growing at an $.%percent annual compound rate. Rural households are purchasing a widerange of products&cars, flat" screentelevisions, microwaves&that untilrecently would have been beyondtheir reach. 'ome industrial sectorshave seen surprising growth comingfrom rural consumers. (ifty percentof revenues from the fast movingconsumer goods )(*+,- sector nowcome from rural sales7.In the case of the telecom sector,subscriber base in the semi"urban andrural mar.ets )+ircle + geographies-has grown at a phenomenal /$ percentover the last five years in comparisonto other circles representing metros'ource0 !ational +ouncil for 1pplied 2conomic Research )!+12R- and urban mar.ets )see (igure 3.%c.-.

RURAL MARKETINGI CHALLENGES IN /ISTRI(UTION S CHANNEL MANAGEMENT

- number of companies in B7@', consumer durables as well as telecom sector ha#e adapted strategies to expand their base in rural mar&et. -mong those who ha#e already ta&en remar&able initiati#e in rural mar&et are 6LL, @olgate, L' +lectronics, >hilips, B.?L, L"@, @a#inKare, Britannia and 6ero 6onda. 8ural 7ar&eting in simple word is planning and implementation of mar&eting function for rural areas. 8ural mar&eting has been defined as the process of de#eloping, pricing, promoting, distributing rural specific products and ser#ices leading to exchange between urban and rural mar&ets which satisfies consumer demands and also achie#es organi0ational objecti#e 3.ource9 "yer, ..8., K7ar&eting .trategies for 8ural 7ar&etK,

IMPORTANCE O' RURAL MARKET

)he main reason why the companies are focusing on rural mar&et and de#eloping effecti#e strategies to tap the mar&et potential can be identified as9 . Large >opulation9 -pproximately FDJ of "ndia:s population resides in

around E,%G,%ED #illages of "ndia spread o#er %$ la&h s;uare &ilometer. C J of "ndia:s middle class resides in rural areas. $. 6igher >urchasing @apacity9 >urchasing power of rural people is on rise. %. 7ar&et 'rowth9 7ar&et is growing at a rate of %-CJ per annum adding more than one million new customers e#ery year. C. /e#elopment of "nfrastructure9 'o#ernment is ta&ing a number of initiati#es and in#esting towards de#elopment of infrastructure facility and public ser#ice projects in rural "ndia, which includes construction of roads, electricity connections, telephone connections, etc.)hus, more number of rural people will start enjoying facilities li&e tele#ision, internet access, electricity, impro#ed roads and better public transport system.

CHALLENGES 'ACE/ (Y MARKETERS IN RURAL MARKET

:- Low literacy rate. ;-)raditional outloo& of rural consumers due to which they are resistant to change. )heir buying decision is low and delayed. <-/emand in rural mar&et depends on the agricultural situation as it is the main source of income. -gain agriculture depends on monsoon. .o buying capacity of rural consumers #aries and it becomes difficult to predict demand. =-Lac& of infrastructure facilities. >-8etailers pushing imitation or fa&e products in place of branded ones for better commission. @- @ommunication problems. A->roblems related to distribution and channel management.

/is!ri2%!ion S Chann" Mana#"m"n! in R%ra Mark"!

>roper distribution is a major area of concern for companies. /istribution can ma&e or brea& a company. - good distribution system means that the company has a greater chance of selling its products as compared to

competitors. - company that can ma&e its product a#ailable o#er wide areas and at lower cost as compared to its competitors will capture larger mar&etshare. )he importance of distribution for a company can be explained with an example of pharm mar&eting. Bor example, a /octor prescribes a particular brand to a patient. But the company representati#e has failed to ma&e the product a#ailable to a number of medical shops of the mar&et prior to promoting the brand. )he patient will try to purchase the product but due to non-a#ailability of the product will face problems in ac;uiring it. )he effect of this will be on the sale of the brand in the mar&et as either the patient will gi#e feedbac& to the doctor regarding non-a#ailability to the product which will lead to the doctor prescribing competitors: brands, or otherwise, if the patient is not #ery literate, the chemist will try to push the competitors: brands. "n both ways, the company will ha#e to face negati#e impact on sales of its product. In r%ra India7 !h" maCor road.2 o$ks r" a!"d !o dis!ri2%!ion and $hann" mana#"m"n! ar" id"n!i0i"d asI 4 Lac& of retail infrastructure $4 Lac& of proper warehousing facility %4 )ransportation problem C4 Large and scattered mar&et D4 Lac& of 8etail "nfrastructure

SOME PRO(LEMS THAT ARE 'ACE/ (Y RURAL RETAILERS AREI .

4 6e has to deal in a large number of products which results in large in#entory and high in#entory costs. $4 6e cannot charge higher mar&-up as the consumers can not afford to pay higher prices. %4 7ajor purchases are done by rural consumers on credit basis. C4 8etailers ha#e to tra#el fre;uently to feeder town , mantis to collect products. /ue to this additional cost of tra#eling, their total expenditure towards collecting product increases. "n rural mar&et, the wholesalers play an important role in distribution structure. *holesalers are based in feeder town , mandis. )hey pic& up their stoc&s from nearest company stoc& point. 8ural people and retailers purchase products from these wholesalers when they #isit the mandis. )he wholesalers usually operate on a cash and carry basis and

at a #ery thin margin and manage a return on in#estment only by achie#ing a high in#entory turno#er. )hough the wholesale channel is a low cost channel, there are certain problems with this model. 7ar&eters ha#e lac& of control o#er their operation. *hen it is the ;uestion of pushing one product between two substitutable products, the wholesaler generally pushes the one which will earn him higher margin. )here is high chance that they will push fa&e or duplicate products as they attract high incenti#es as compared to those from reputed brands. -lso, wholesalers are reluctant in pushing new products due to ris& factors associated with them.

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"n HHG, 6LL landed K(peration 6ar#estK with an objecti#e to increase penetration, increase brand awareness, encouraging trials and identification of &ey distribution points and retail points. -round %I,III #illages ha#ing high growth potential, ha#ing a population of at least $III, and well connected by roads, were selected.

Rural "ar.eting strategic

PEHP'CT S1/?TI

"ndia has more than E,%I,III #illages, most of these are :hard to reach: and offer relati#ely lower business potential. 6ence, reaching them through the con#entional distribution system is a challenge. -t 6industan <nile#er Limited 36<L4, we ha#e always belie#ed in an approach of doing business which we call 1doing well by doing good2. >roject .ha&ti is a rural distribution initiati#e that targets small #illages. )he project benefits 6<L by enhancing its direct rural reach and also creates li#elihood opportunities for underpri#ileged rural women. .ha&ti is our initiati#e that combines social responsibility, sustainability, and business strategy. .ha&ti model is #ery strong and sustainable because it is the best way we can gi#e it bac& to the society through supporting our cause of : empowering underpri#ileged rural women: along with ma&ing business sense. .ha&ti started with F women in one state. )oday, it pro#ides li#elihood enhancing opportunities to CG,III women in D "ndian states and pro#ides access to ;uality products across II,IIIi #illages and o#er % million households e#ery month. TARGETS S PER'ORMANCE Tar#"! *e will increase the number of .ha&ti entrepreneurs that we recruit, train and employ from CD,III in $I I to FD,III in $I D. P"r0orman$" CG,III entrepreneurs 3m.ha&ti ammasO4 were selling products to o#er %.% million households in %D,III "ndian #illages in $I $.

1HY IT STARTE/ By the late HHIOs, though the company had a #ast reach and was the mar&et leader, it was loo&ing for the next big opportunity. )he aim was to get to really small #illages not reached by their distribution networ&. "ndia is the second largest country in terms of population si0e after @hina and o#er FIJ of its more than one billion people li#e in rural areas. *hile the business rationale was clear, setting up a distribution channel to reach remote parts of "ndia was less straightforward. *e were tapping into some of the rural populations through tools such as #an road shows, but a large share remained outside its reach. 6ence we came up with an interesting solution9 build a distribution system through a networ& of women micro-entrepreneurs to get the product directly to consumers. )he solution also aimed to assist rural entrepreneurs to start businesses and impro#e li#ing conditions in their regions. )he business objecti#e was to extend our direct reach into untapped mar&ets and to build brands through local influencers. )he social objecti#e was to pro#ide sustainable li#elihood opportunities for underpri#ileged rural women. )he model pro#ed to be an excellent way of tapping the fortune at the mbottom of the pyramidO.

(USINESS MO/EL
)his business model was centred on partnerships with the go#ernmentsupported and microcredit-financed #illage self-help groups. )he selfhelp groups composed predominantly of women. )his was not only because women tended to be its main consumers, but also because of the belief that gi#ing additional income to women would result in greater benefits for the household as a whole and enhance li#elihood for the family. )his model has been guided by the belief that the pri#ate sector can help create solutions to social challenges through inno#ati#e strategies that meet both business and social objecti#es. By promoting microenterprise, our initiati#e not only made great business sense but also had deep social impact.

THE 1IN.1IN MO/EL

.ha&ti is not only a channel for increasing our reach, the .ha&ti entrepreneurs are also brand ambassadors for all 6<L brands in rural "ndia. )heir relationship with consumers is forged by their home-to-home contacts, and goes a long way in building brand loyalty. )he .ha&ti "nitiati#e, started bac& in $III when we wor&ed closely with rural self-help groups, microcredit lenders, nongo#ernmental organi0ations 3?'(s4, and the "ndian go#ernment Pthe &ey forces that were dri#ing opportunity creation to ele#ate po#erty and enhance li#elihood in rural "ndia. "n general, a member from a .6' was selected as a .ha&ti entrepreneur, commonly referred as :.ha&ti -mma:. .he recei#ed stoc&s from our rural distributor. -fter being trained by the company, the .ha&ti entrepreneur then sold those goods directly to consumers and retailers in the #illage. .ha&ti entrepreneur incomes a#erage 8s DII per month, doubles household income through supplemental acti#ity, %IJ of entrepreneurs earn more than rural per capita income.

/RIVING GRO1TH ACROSS MARKETS

(ur .ha&ti initiati#e can be described in many ways P as a sales and distribution initiati#e that deli#ers growth5 a communication initiati#e that builds brands5 a micro-enterprise initiati#e that creates li#elihoods5 and a social initiati#e that impro#es the standard of life in rural "ndia by pro#iding ;uality products. *hat ma&es .ha&ti scalable and sustainable is the fact that it contributes not only to our business, but also to the community it is a part of. "n most .ha&ti mar&ets we are dominant and enjoy a mar&et share which is ;ualitati#ely better as compared to non.ha&ti mar&ets. )he project is being customi0ed and adapted in se#eral .outh-+ast -sian, -frican and Latin -merican mar&ets li&e Bangladesh, .ri Lan&a and Aietnam. "n Bangladesh and .ri Lan&a, it is being promoted as project Loyeeta and .aubaghya respecti#ely. .ha&timaans ?ow >roject .ha&ti has pro#ided business opportunity to the male member of the family too, who could ser#ice outlets not only in their own #illage but also of the nearby #illages.

"n $I I- , .ha&timaan initiati#e was introduced under which men of the .ha&ti families are gi#en bycycles to co#er surrounding #illages to increase 6<LOs distribution and sales as well as enhance the income of .ha&ti families. )here are now %I,III .ha&timaans across "ndia. +ach sha&timaan co#ers D-E #illages in his #icinity which is a larger area than a woman, .ha&ti amma, can co#er on foot. *hile there are no fixed selection criteria, a .ha&timaan is chosen based on his location ad#antage and his proximity to #illages which are to be co#ered. .ince the .ha&timaan is a male member of the .ha&ti household, his additional income from this programme results in an increase in household income. "t is estimated that the .ha&timaan would earn $.D times this amount, gi#en the arduous tas& he has been gi#en to perform.

ALLIANCE 1ITH COMPANIES

TELECOM

(ANKING

6<L has built alliances with competing industries li&e telecom g ban&ing which would increase the income of the .ha&ti family with the sale of telecom prepaid currency, sim acti#ations and acting as a ban&ing correspondent. )his would not only double the income of the .ha&ti family but also help the community by getting better access to communication products and to ban&ing facilities leading to sustained prosperity. 6<L has partnered with a leading public sector ban& in "ndia for enabling ban&ing ser#ices to rural consumers and low income people in .ha&ti #illages. - pilot was run in 7aharashtra and Karnata&a in $I with $ .ha&ti entrepreneurs helping local #illagers open more than III ban& accounts. )he scale up model will be finali0ed by Bebruary $I %. 6<L has also entered into a partnership on telecom distribution with a leading telecom company to sell its products and ser#ices across rural "ndia. )his initiati#e will help .ha&ti entrepreneurs increase their income by selling telecom products and ser#ices to retailers and consumers. )he project has been rolled out in the states of 'ujarat, <ttar >radesh, Karnata&a and *est Bengal after successful pilot in $I . )he ?ational roll out of telecom will be completed by the end of $I $.

RESUME
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OB?ECTIVES To de elo# a career in your estee"ed organi?ation and gro! !ith the organi?ation by contributing to its success and gro!th and thus leading to a successful and res#onsible #osition in the organi?ation. ACADEMIC PROFILE MBA @0%$76 =*73)-@D476 S5*.%76%A7&%+$- :73;*&%$8 :7$78*:*$& BHRM) C+66*8* UG-BBA C+66*8* (-G+/&9 A3&2 7$1 S.%*$.* C+66*8* <C)%17:,737: (-A$$7:767% U$%/*32%&=

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STRENGTH IN ACADEMIC AREA Mar.eting "anage"ent Aecision 3u##ort 3yste" 4ost Reduce Thin.er Analyses of "ar.et research DA33E

6"#athy and sy"#`athy identify the custo"er Ti"e "anage"ent PRO?ECT REPORT I$ MBA P3+-*.&( SME PRO?ECT (Title :; 3"all Mediu" 6nter#rises @roGect Tolls :; 370T Analysis Aescri#tion:; Analy?ing the 370T 4once#t of a Mediu" 6nter#rises MAIN PRO?ECT (Title :; A 3tudy on ne! #roduct de elo#"ent : ; 1.U.3 clothes #ri ate /td.

4o"#any

ACHEVIEMENTD S 8as attended 5ational Manage"ent /e el DAUABA JU63T $%E 4onducted By Ae#art"ent of Business Ad"inistration Anna"alai Uni ersity

PERSONAL EUALITY 6ffecti e 4o""unication 3.ills. 1oal 0riented and @ositi e Attitude.

 8ard 7or.ing. 1ood #resentation s.ill. Aecision Ma.ing. Tea" Builders. /eadershi# Jualities.

Relationshi# "aintainer. Ieature Thin.er and forecasting. 5egotiation s.ill PERSONAL DETAILS Iather 5a"e : ThiyagaraGan

A.0.B.: ; -(<-'<$,,3e9 Material status /anguage .no!n 5ationality : ; Male. : ; Un"arried. :; :; 6nglish, Ta"il. 2ndian.

@er"anent Address : ; Maria" "an te"#le street. Then#athi.. Fa?ha.ollai D#oE 4hida"bara" DT.KE. 4uddalore DA23TE. Ta"ilnadu;)-+&-(. 2ndia. DECLARATION 2 hereby declare that abo e "entioned infor"ation is correct u# to "y .no!ledge and 2 bear the res#onsibility for the correctness of these #articular .

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