Professional Documents
Culture Documents
Adaptation to Changing Environment in General and Economic Environment in Particular Economic Growth and Change Areas Emerging Opportunities in Various Sectors including Social Sector Management Practice and Cultural Issues The global Political Situation The Global Competitive Environment and the internal scene in India, War Game.
At Independence
SOCIAL CHANGE
Empowerment of Women- Culture- -Buying Patterns and consumption- Needs- greater opportunities-Employment ChoicesDisposable Income.higher aspirations,urbanization, nuclear families
TECHNOLOGICAL CHANGE
Computers- Connectivity- Constant Innovation- Outsourcing- Mobility Cost of Connectivity-
POLITICAL CHANGE
Wars for Oil- Legal and financial constraints imposed for vote bank- India and China emerging as powers with voices- Co-operation to avoid wars and promote growth.
ECONOMIC CHANGE
Influence of US and Europe on India- Inflation- Oil Prices- Gold Price Dollar and Euro RateGlobalization-Unemployment - Liberalization
Socialist Principles
State Ownership- Red Tape and License Raj Annualized Growth Rate -1% 3-4 % Fundamentals were started here- Maruti Suzuki Pro Business Green Revolution
Current growth Rate 7-8% It Revolution Software and Hardware Services Sector- Contact Centers/KPOs/Hospitality Social Economy- NGOs
Increase in Fiscal Deficit Downgraded by rating agencies Deficit in BOP Low Resources and foreign exchange Mounting Inflation Gulf Wars
Devaluation Disinvestment Dismantling of The Industrial Licensing Regime ( all but 18 industries) Allowing Foreign Direct Investment (FDI) Non Resident Indian Scheme Throwing Open Industries Reserved For The Public Sector to Private Participation. Abolition of the (MRTP) Act The removal of quantitative restrictions on imports. The reduction of the peak customs tariff Wide-ranging financial sector reforms
Employment Opportunities Increased Spending Growth for Companies- Acquisition Capability TATA/RELIANCE/INFOSYS/HINDALCO Relatively Strong Rupee Reduction in Poverty Fourth largest Economy in terms of PPP 5 % of Global GDP is from India Private Public Partnership Ventures
Super Power 2050 50000 Millionaires and counting Surpass China in 2020 Highest Saving Rate Economic Policy of Inclusion
MNREGA/RTE/FOOD SECURITY BILL/
CAGR
11% 8.3 %
Teledensity Vacations
Mortgage
White Goods
Passenger Vehicles
15.7
120 %
GDP Growth (%)
9.2
FDI ($ B)
7 6 5 4 3 2 1 0
5.5
3.2
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Challenges
Payment infrastructure Revenue share between operator and content provider Low GPRS adoption
Challenges
Challenges
Challenges
Infrastructure
Consulting Execution
Retail
Hyper Marts Direct Access to Producer
Social Media
Presence on different media
Consists of 4 billion people Living on less than $ 2 per day 400 million people in India constitutes the bottom of the pyramid
Tiers 2-3
$1,500
1,500 1,750
Tier 4
4,000 <$1,500
Tier 5
Exploitation of poor people by Private sector. Rural population was primarily poor & urban population was relatively rich. Private sector businesses , especially MNCs logic about BOP.
Aid Agencies
PRIVATE ENTERPRISE
BOP entrepreneurs
BOP consumers
Huge market potential 4 to 5 billion underserved people Economy of more than $ 13 trillion PPP The needs of the poor are many Thus, the case for growth opportunity in the BOP markets is easy to make.
A philosophy for developing products & services for the BOP - small unit packages - low margin per unit - high volume - high return on capital employed
Introduction,infrastructure,innovate,improvement./.. Price Performance,value for money Innovation : Hybrids Scale of Operations Sustainable Development : Eco-Friendly Identifying Functionality : Is the BOP different from Developed Markets? Process Innovation Deskilling Of Work Awareness Of Customers Designing for Hostile Infrastructure Interfaces Distribution : Accessing the Customer BOP markets essentially allow us to challenge the Conventional Wisdom in Delivery of Products and Services
Some BOP markets are very large and attractive Local innovations can be leveraged across other BOP markets Some innovations from the BOP markets will find applications in developed markets Lessons from the BOP markets can influence the management practices of global firms
Micro encapsulation of iodine in salt in India has found market in other BOP markets in Africa especially in Ivory coast, Kenya & Tanzania. Launch of Wheel detergent by HLL. Micro-financing by Grameen Bank in Bangladesh. Jaipur foot Aravinda Eye Care
International Business Division Exports agricultural commodities 60% of Foreign Exchange Earnings Model seeks to use Intermediaries only for Storage, Transport, Quality assessment and risk reduction and eliminate asymmetry created on account of inefficient information distribution
It transfers Knowledge (farm management, risk management) It facilitates sales of Farm Inputs (screened for quality) and It offers the choice of an alternative Outputmarketing channel (convenience, lower transaction costs) to the farmer right at his doorstep Rural Market e-Choupal It is an interlocking network of partnerships (ITC + Met Dept + Universities +Input COs + Sanyojaks, the erstwhile Commission Agents) bringing the best-in class in information, knowledge and inputs.
Information centers linked to the internet. Connects subsistence farmers with large farms,current agricultural research and global markets. Operated by local farmer called sanchalak. Information provided by samyojaks.
Virtual integration of supply chain. Results in better yield through better practices. Farmers benefit by realizing better prices
Better information content. Better information timing Transportation cost Transaction duration Weighing accuracy Professionalism and dignity
Largest retail chain in Brazil. - 330 stores - 10 million customers - 20,000 employees - 4.2 Billion Reais Sells electronics, appliances and furniture.
Individuals stratified into five basic economic classes: A,B,C,D and E. C,E and D considered to be the BOP 84% of the total population of Brazil. Represents significant purchasing power in Brazils economy at 45% total spending capacity. 70% of Casas Bahias customers have no consistent income.
customers to make small installment payments for merchandise. Payment schedules ranges from 1 to 15 months. Financed sales are responsible for 90% of all sales volume. 6% Cash and 4% Credit Card Payments 600Reais or less- Permanent Address.600 < Proof of income Credit score system for customers.
Customer Education Default Rate 8.5% Competitions Default Rate- 16% Training of the Credit Analyst -800 15% of all TVs sold were through Casas Bahia They Sell Sony ,Toshiba, Whirlpool Great Customer Service- Two Complaints and you are out !!
Identifying the nature and implications of national cultural differences within the team
Individualism/collectivism: This
dimensions reflect the extent to which individuals value self-determination as opposed to their behaviour being determined by the collective will of a group or organization.
lies the question of involvement in decision making. In low power-distance cultures, employees seek involvement and have a desire for a participative management style. At the other end of this scale, employees tend to work and behave in a particular way because they accept that they will be directed to do so by the hierarchy or the organization.
concerned with employees' tolerance of ambiguity or uncertainty in their working environment. In cultures which have a high uncertainty avoidance, employees will look for clearly defined, formal rules and conventions governing their behaviour.
most difficult dimension to use in an organization context. In practice, the difficulty is more to do with terminology and linguistics, in Hofstede's work the dimension related to values. In highly "masculine cultures" dominant values relate to assertiveness and material acquisition. In highly "feminine cultures" values focus on relationship among people, concern for others and quality of life.
Domestic: to achieve balance between individual (self-interest) and collective (common good) interests when beliefs, values, and behaviors are (mostly) shared
Global: Achieve this same balance when beliefs, values, and behavior are not shared
Rules of law
Transparent consistent Enforced
Transfer of government roles to businesses Privatization Deregulation Governments play more active roles in business Industrial policies and subsidies Stimulating business activities Encourage export activities Attract FDI Civil society organizations monitor activities collaborate engage in social activism
China and India emerging Superpowers Oil-wars Security threats due to Nuclear Power Building Economic Policy Influenced by Vote Bank Politics Environmental Concerns Foreign Aid- Food Crisis Religious Warfare & Terrorism Free Trade
Technology Vs Industrialization Human Rights Sustainable Development Displacement on account of war Financial Crisis The Corruption Plague
Social Activism Growth in Tier Two Cities Urbanization of rural youth Shift in choice of occupation Connectivity among large masses of the populace Galloping growth in services and information technology Sector Pro Development vs. Pro Environment Media Explosion
Scam Infested Nation Questionable Authourity Government Cost of Living vs. Standard of Living Prioritization of Education Citizen Movements
An open system to facilitate trade ISO and global accounting standards Standards on transparency and corruption Infrastructures and institutions for Security Conflict management Crime management Supra Terrorism Equity To create a viable world future