Adhyayan June 2013 Final

Adhyayan A Journal of Management Sciences

ISSN : 2249-1066 Vol.3 No.I, June 2013

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Editorial

It is a matter of pride and honour to introduce this 1hird volume of ADHYAYANThe Joumal of Management Sciencea, Lw:know. Thill peer R'iviewed iuue of 1he Joumal. iDcmporate9 a OODpgation of various R'isearoh papers on diverse fields of Managemellt and allied areas. Thillissueincludestenqualityreseardl.paper~.

The 81lthors are a mix from varioWI well-known iutituma and universities of 1he coUDtry. I am s:ure the joumal will serve as a valuable addition to 1he JllllllaFDleDt literature and will alao prove to be a valuableR'iferencomaterial. I would a1ao like to place on recanl my sincere thanks to all the memben of 1he editorial and advisory board for their umelenting !Npport to Adhyayan. I also Binc:erely 1hank 1he &.PJliWiable efforhJ of the membera of 1he editorial team for helpiDgto bring out this iuue of1he joumal.

I am alao gratefUl to reviewers for provkting their comments and suggestiODS. Our Binc:cre fiWiec::iation goes to all the au1hors :fur their timely eon1ribution and to 1he readers ibrtbeirincessantsupport.

We look fmwani to your COJDDU:nt& on this issue and aqgeatiolUI on matters concemiDg the jOlJIIIal.

__l=::f Prof. (Dr.) M. Mehro1ra Editor-in.Oricf Sollool~lkli-. hwow

EDITOR'S DESK

1. Utilizing Information Systems for Model Management in Decision Making Environments-Ruben Swing

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The information overload in modem commercial world asks for a blended approach, from

information system and managerial requirements to fulfill organizational goals. In this paper

the author explains the optimum utilization of modeling approaches to create a foolproof

support system for all managerial levels.

Determinants of Factors Affecting Bid-Ask Spread for Companies Listed in SME

Platform ofBombay Stock Exchange- SouvikBanerjee, Dr. C.A. K. T.Rangamani This paper gives a descriptive analysis of various factors or determinants that affect Bid Ask

Spread for companies listed in SME segment ofBombay Stock Exchange. Emphasis has been

given on establishing a pattern between these factors and liquidity concerns post listing.

Emerging Characteristics and Trends ofMNCs in India-MayankBajpai, Prof. (Dr.) M.

Mehrotra This paper focuses on impact oflndian multinational firms and its affect on the host country

economically, culturally and socio-politically. It also talks about reaping benefits from MNCs'

for the gross development of the country.

Relationship of Customer Preferences, Service Quality & Customer Satisfaction in Banking Sector: Critical Analysis of Literature Review-Dr. Sunayna This paper gives us an insight on the relationship between service quality and customer

satisfaction. Emphasis is on enhancement of service quality to attain maximum customer

satisfaction in retail banking industry.

Herzberg's Theory: Implications in Present Scenario-Zubair Ahmad The present scenario is marked by customer-service oriented jobs, high unemployment rates,

idle and closed plants, the diverse workforce, and decline of unionization. The purpose of this

study is establish a relation between Herzberg's theory of job satisfaction and other motivating

factors with respect to present organizational situations.

Women Entrepreneurship: The Key Accelerator for Empowered India - Dr. Shailja

Dixit, AnuragDixit This paper projects emergence of women entrepreneurship as a strong contributor to

economic growth. It also highlights on major constraints and challenges faced by women

entrepreneur and opportunity available to them.

Shop & Hop: VIrtually an Emerging Landscape of Retail & Its Impact on Economy

Abhiruchi Pandey, Jaya Jain This paper focuses on latest trends of digital marketing with respect to online shopping. It also

provides an insight of present comparative standing of online shopping with respect to brick

and mortar retailers or mall culture.

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The Influence of Consumer Attitude on Brand Extension Assessment - Rishikesh Padmanabhan, Dr. K. S. Chandrasekar This paper evaluates the association of consumer assessment towards brand extension on the

basis of previous experiences of parent brand. The study has been done in reference to high

involvement product.

Repercussion of Junk Food Advertisements on Minds of Children A Study- Parmeet Kaur, RituAhuja The study indicates a link between junk food, food promotions and eating behaviors of

children. This paper also sets a clear view about the attitudinal reactions of parents as well as

their children about junk food advertisements.

Are Contract Workers the Golden Trap: A Case of Maruti Suzuki Ltd. - Dr Swati Agrawal This case brings out the facts on long term employer-employee relationship. It showcases an

adverse effect ofhiring contract workers on the organizational health with special reference to

Maruti Suzuki Ltd.

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104

Utilizing Information Systems for Model Management in Decision Making Environments

Mr. Ruben Swing Central Institute of Management and Technology, Lucknow

Abstract

Computer-based information systems and models encounter forbearance and doubt by management, because they frequently do not converge the knowledge needs of management in a company. Solving this problem entails managing, modeling and information systems development as a management discipline. This discipline includes the undertaking of development, maintenance, efficient use and preserving of models and systems. The paper finishes with a standard analysis of relationship between management levels and model management activities, and contemplates possible use of computer-based information systems for efficient model management.

Key Words: Information system, management levels, model management.

I. The Problem

Contemporary organizations are challenged with growing managerial complexity resulting from shorter product life cycles, increasing market demands, increasing organizational size, increasing capital amount, and altering laws that demand a reduction of environmental pollution and market liberalization. This growing complexity has conventionally been met by allocating slack resources (e.g. large work in-process capital and stocks) and independent tasks or working groups (Galbraith, 1973). More lately, managerial complexity is also managed with, by the making of precise company strategies aiming at a reduction of the amount and diversity of markets and products to be managed (e.g. emphasis and role strategies, see Ansoff, 1987; Porter, 1985) and planning at outsourcing of company divisions.

The subject of this paper is to investigate the strategy of increasing the prevailing information processing capacities in organizations. This concern is inspired by the increasing technical opportunities of computer-based information systems in recent years (lower priced and improved user-interfaces) and progresses in human intellectual competences to make reason out of data, e.g. as a outcome of enhancements in system dynamics (Senge, 1990; Vermix, 1990). The difficulty with both developments is that they frequently are means and technologies without a clear link to managerial needs. If we do not

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gravely consider what managerial prerequisites can be met by both, and what are its restrictions it's quite possible that the well-recognized problems with M.I.S. and Operations Research, which both overshoot demands and pretended much more than what could be regarded as realistic (Ackoff, 1967 and 1979).

The aim ofthis paper is to gain reasons from insights in business management, by which we can evaluate the value or models and the impact of computer-based information systems for management. To avoid a technology thrust, the author has first described management categories that describe different model needs. Secondly, the author has examined the probable functions of computer-based information systems in management (development, maintenance, use and conservation) of models. Both these analyses will unite to a standard view of types of models and computers for different management levels.

II. Management Types and Need for Models

Because of their ability to assess problems and find means-ends relations in a methodical way, models can be of much value to management. Usage of the models is highly dependent on nature of models (mathematical or qualitative, complex or simple, formal or informal). Different types of management require different types of models. Oddly enough, no explicit thought about the relation between management types and the shape of models is known to me. Therefore, taxonomy of management has been first, followed by investigating its significance for models.

A. Taxonomy of Management

The most well-known taxonomy of management consists of a distinction between strategic planning, tactical management, and operational planning and control (Anthony, 1965). Strategic management is concerned with the definition of company goals, policies and general guidelines projecting the course of organization. Tactical management is concerned with the procurement of resources, the preparation of acquisition tactics, determination of plant locations, and the arrangement and monitoring ofbudgets. Operational management involves effective and efficient use of existing facilities and resources to carry out activities, and monitoring and control of activities in relation to correctly planned goals and (budget) limitations.

B. Strategic Management & Models

When planning organizational goals, management aims at suggesting what the company should do and what should be like for staying viable. This idea generating process mostly

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Utilizing Information Systems for Model Management in Decision Making Environments 3

uses only implicit models about goals and means. Sometimes, like in Delphi-sessions, such a management procedure is well organized and specifically aims at finding consent among its participants (Linstone and Turoff, 1975). This can be done by first finding consent about the main issues at stake and then second, members can start discussing relations between these variables. One step further, people can try to enumerate these relationships. Though at the strategic level, models remain rather soft, and extensive endeavour is not done in building very precise models. For the most part acquiring a mutual terminology at this position which is politically adequate is very essential (De Geus, 1988).

The evolving model must be motivating and directing people in the organization on account of inaccurate models at this stage (often with very inaccurate classifications), they are supple enough to be used for legitimation or clarification of activities and they are every now and then enhanced after mirroring on actions (Mintzberg, 1987). On the other hand, many business scientists have obtained knowledge which, when used well, expands the chance for developing effectual plans and policies and making the organization more ardent as well (Ansoff, 1987;Porter, 1985;BuzzellandGale, 1987).

Besides these, more or less scientific tools, also much information from informal media, newspapers and literature could be used. It is essential to have inspired minds which connect all these impressions and make logic out of them with relevancy for finding a way the company should go. In this case, management is undoubtedly coherent as well as perceptive (Mintzberg, 1976).

System dynamics modelling is extremely useful for strategic management, because it is a means for organizing ideas in a organized way (from very soft to very mathematical) and it aids the comprehension of accidental effects of policies (Vennix 1990). An instance of this method oflogic is offered by Senge. Senge (1990: 99-100) asserts that quality circles were introduced to correct problem solving by ways of open communications. Open communications, however, were viewed as threats to conventional union-management relationships, because they were inconsistent with adversarial outlooks of unions to management and were a threat to management's uni-lateral control. This means: the more successful quality circles are, the more resistance they will meet, probably leading to their failure at a later stage. The models for strategic management in particular systems dynamics will typically be very soft, having no clear measurements of variables and no estimation of parameters. This kind of soft modeling (Checkland, 1981) is exactly what is necessary for successful strategic management.

C. Tactica/ManagementandModeling

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At this management level, various models are developed and enhanced on the basis of experience. Business schools are evolving ideas especially in this area; e.g. econometric models for planning fund needs (e.g. M. Aiso, 1973 for an econometric method to monetary projecting). Many quantitative variables are included here. Just to cite a few: interest rates, inflation, development prospects of manufacturing and markets, necessity for capital and people, fiscal policy with regard to interests, dividends, taxes assets etc. and on the essence of these variables, one could create a model by which estimates can be made regarding fund needs and decide the best type of funding (loans, stocks). These models can be utilised many times with certain variations on parameters involved (interest rates etc.).

For budgeting many models can painlessly be built by means of a spreadsheet. Besides, one wants a system for evaluating budgets and supporting cost accounting, which comprise a model with process variables to be calculated, and assessment tools for associating performance alongside settled on standards (Lawler and Rhode, 1976; Hofstede, 1981 ).

The determination of plant location contains decisions that can be reinforced by models as well. Important variables are: human resources available in the area, availability of transportation and other infrastructures, obtainability of mineral resources, fiscal policy, political stability and support from (local) government.

New products must be developed, produced and marketed. These activities entail great sums of money, which sometimes can give uncertain influence to a company's profits. In this situation, market information is mostly obsolete before the product comes on the market. Therefore, a more long-term view is required, in which features of the aimed market(s) are systematically linked. This would perhaps lead to a more or less qualitative view, containing ideas about cause-effect relationships.

At this level of management, system dynamics models can be helpful for assessment for decisions. One example of this kind is given by Senge (1990: 316-320). A computer company had a very effective sales group, realizing each year a 20% growth in sales. Therefore, each year more salesmen were appointed. Each year the growth in sales personnel was comprehended by hiring experienced people from other companies. At a certain moment, there were not enough experienced people to get from competitors. The strategy of personnel growth, therefore, did not work anymore. The company had to start training programmes for junior salesmen, led by seniors. The last group was not motivated for this teaching job, because they received the main income from the contracts they achieved. The company had to choose between a different payment system for seniors or to decide to restrict growth ambitions. Just hiring more junior salesmen would only lead to more· management problems for the sales division and could harm the reputation of the

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company.

While at the level of strategic management specifically soft models were suggested, at this level of management more proper and quantitative models are relevant as well. We will call these models medium (soft/hard).

D. OperationalManagement

This management level is concerned with the effective and efficient use of existing facilities and resources within given budget constraints. At this level the principle of models is to be clear-cut of the definitions of performance indicators, measurement instruments (for providing feedback information) and ideas about efficient actions to regulate behaviour. The model functions as a rigid set of rules and is very far from the dynamics explained earlier. Functional organizations with steady environments do not suffer much from the rigidity of control systems. On the other hand, when there are more subtleties in organizational environment, the organization can fail to make contact with its environment at operational planning and control stage. Feedback should be applied to the principles of management (theory) which are used at this level and are imposed by tactical management.

The addition of system dynamics produces crucial understandings, which should be added. It is not so that the realisation of these dynamics is only computer-based. Systems around the control system are essential for providing people with the necessary feedback. These substructural systems can comprise of open communications between people to find improved ways of learning, a management flair that supports learning and that is not built on unilateral control, a refinement that targets shared sustenance and accountability for the common goals of the group and a political atmosphere in which class struggles are made subordinate to company performance should be created ( cf. Argyris and Schon, 1978).

In a marketing company, management was based on the basis of hierarchy. This meant that reports were sent to the top in the organizational hierarchy and reviewed by management. Occasionally actions were carried out to motivate people and to regulate organizational behaviour. This method of the management did not fit with the opinion of the new president of the company. He recommended that the company should become more adaptable and more people should be concerned with management matters. Consequently, a project called "MIS" was set up with the goal of computing performance of people and divisions. The information from this system has become available for top level management and CEOs. This signified that heads of the divisions had access to data about their co-workers as well, which motivated the presidents to be knowledgeable about data from their own department. During the consultations ofthe CEOs with division presidents, performance problems were

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discussed on basis of the data. The open consultations were not only a control on what is happening, but also led to reinforcing each other in finding resolutions. In this way intellectual models received many new useful ideas never thought about in the specific division.

In relation to other management types these models are very quantitative, formal and precise, and are called hard models. However, technical they may look alike, they do not make human and social processes entirely obsolete.

III. Computer-Based Information Systems and Model Management

In the preceding section, the impression of diverse modelling needs connect to different management types has become clear. Now, I will review the function of computer-based information systems in these modelling methods. The modelling process is pointing at supporting management. This can only be understood when well-managed, leading to high satisfaction of the model user. Analogous to information systems management, one can describe four functions in model management development, maintenance, use and conservation. The development process is well described in the literature on information systems development and modelling. When completed, the systems is said to be connected or implemented. This denotes that it ought to be ready for use, which suggests that it should be ready and available. Furthermore, it must be maintained, denoting that it should be improved when necessary. When the expenses for upkeep of the systems are too high relative to the user's satisfaction, the system or model should be rejected and the model management procedure can start again with developing a new model. In the subsequent section, We will survey these roles for model management in relation with computer systems in more detail.

A. Development

Particularly in the region of strategic management, the development of a model is significant, because the process of model development is documented as an important learning result. When the knowledge is attained, the model is discarded, as strategic management processes are typically non- repetitive, directing at finding composition in fuzzy problems and agreeing on the way the problem(s) should be perceived. Computer systems can support the management level in three ways:

1. Use of prevailing external systems (data and models) by which associations with other companies are possible.

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This kind of system is PIMS, a database which encompasses data concerning competitive standpoint, market qualities, and capital and product group. Built upon an enormous database with market choices and business results of over 3,000 companies and strategic business units, an econometric prototype has been developed with which data of a particular company subscribing to PIMS (Buzzell and Gale, 1985), is compared with others and examined (anonymously). The goal of PIMS is to find the critical success factors which are appropriate to the company in its exact market and situation.

2. Frame works for structured thinking at the strategic level.

An interesting instance in the support of structured thinking is established in ANSPLAN, software by which management thinking is systematized by reassuring the correct questions and problems in a systematic way (Ansoff, 1986). A portion of ANSPLAN comprises of the SPA (Strategic Position Analysis), which is divided up in an analysis of the market and an analysis of competitiveness. In the competitiveness analysis estimates of demand and profits are attained on basis ofthree methods:

• Extrapolation of past progresses.

• Developing anticipation under "stable" market development This implies that deviations that will impact success and that positively are going to occur are also considered.

• Developing expectations under "chaotic" conditions. · Here the chance element is taken into deliberation and optimistic (opportunities) and pessimistic (threats) situations are developed.

The supplementary part of ANSPLAN reinforces evaluating strengths and weaknesses of existing human resources, company competencies and other company assets. A relationship between market developments and organizational strengths and weaknesses heads to the description of an organizational strategy.

3. Tools for organizing thought: System dynamics modelling.

Although PIMS is quite beneficial for relating the organization with others, ANSPLAN possesses the competency to develop an individual's ideas in a systematic way. Nonetheless, both the above mentioned software use many deductions that are not every time considered as pertinent especially, when cause and effect, or means-ends relationships, are considered. PIMS is constrained to the economic variables only, while ANSPLAN doesn't clearly reinforce thinking in terms of means and ends. The prominence of system dynamics is that it does not require considerable beliefs for

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management, excluding the impression that management is centred on a theory of actions that encompasses thinking about the feedback processes, functions and dysfunctions of likely policy alternatives. When companies confront catastrophic situations, novel ways of thinking must be developed that can handle conditions never encountered before ( cf. De Geus, 1988). Our knowledge and experiences, then can act as conditions making things even worse. In this form of condition thinking, Delphiresearch are significant.

Computers can support these procedures with offering adaptable tools for the organization which are thought only in terms oflogic and not of assumptions. One tool which enables the extensible development of systems dynamics models is STElLA (Vermix, 1990: 52-54and223).

In the process of development, methods of analysis are conceived for organising insights. This is normally one of the main processes of strategic management models and therefore model development tools must, contain the least of presumptions, or must have extended a larger high standing, which also could act as a legitimation for action (e.g. Ansplan and PIMS). Also in the case of reused models the relation between management and models is very loose, leaving management with many tasks in thinking and deciding themselves.

B. Maintenance

At the strategic management level, models are used for finding a way of thinking about the problem at stake. The determined technique for thinking is established in data-gathering and analysis departments (De Groot, De Wolf, 1989). At the tactical management level, intricate problems which occasionally have a tendency of repeating, are handled, and it is worthwhile considering to keep a model and do research on it to improve it as well.

Dual kinds of supportable information are appropriate here: quantitative types (centred on statistics, mathematics and econometrics) and qualitative types (centred on knowledge based systems).

Quantitative Models

PIMS is yet again a worthy instance for a quantitative model here. Knowledge from economics is defined in an econometric model and the constraints are predicted on basis of the data received from the applicant companies. The Strategic Planning Institute (SPI) now sustains the model and offers distinct companies with information about their position in relation to other companies via the model. Certain companies develop their own models for

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Utilizing Information Systems for Model Management in Decision Making Environments

management.

Qualitative Models

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These models can have a vastly flexible form. Presently, knowledge engineers are learning the function of computers for upholding qualitative knowledge. Certain key developments in the area of application of knowledge based systems for dealing with manufacturing are cited by Kerr (1991). Some ofthe elementary characteristics of the system Kerr studied was that the ideologies in which a production process should be done, can be formalized in so-called production rules. This implies that one can state accurately which elements must be supplementary to the process and in what quantity and proportions. This has large repercussion for the scheduling of purchasing, stocks · and supplies. Besides, the effects of market strategies can be spread on in terms of needed volumes. Fundamentally, the models developed are sustained not only because they are programmed, but also because engineers and managers have access to them, and can verify their validity and improve them when necessary.

Models at the tactical management level have a rather composite, formal and quantitative shape. Nevertheless, they are not used without a critical view and only when appropriate. Individual experiences and new perceptions must be added to the model, and therefore (like a good computer based information system) it must be open for maintenance activities.

C Use

At the operation management level, processes are monitored by comparing processes and

activities with standards. The standards are chosen on the basis of a theory of action, which

management thinks will give them most success. Thus, the standards and the ideas behind

them are a structure of reference by which actions and data are interpreted and management

actions are motivated. This structure of reference is of course limited by the general policy

and purposes delineated at the strategic and tactical management levels in the organization.

Again one could distinguish quantitative and qualitative models.

Quantitative Models

Operations managers are often given certain aims and short term goals. These are typically defined in a precise quantitative form. Performance control is only the contrast of this norm with real performance at certain point in time. Nevertheless, there is more at risk than comprehending that a performance criterion not achieved is only the start for fmding out means how this problem can be solved and how management hypotheses should be

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changed. It is occasionally quite challenging to find the main cause of the problem, as information can be concealed for management, and there is no open learning orientation (Argyris and Schon, 1978). Also the organizational adjustments involved for effective learning, and the system dynamics modelling tools can be valuable for analysing the condition and finding the roots for the problems discovered. The organizational technostructure can be valuable in being supportive to the development of models and ideas for solutions (Mintzberg, 1979). They are also the sentinels of models and knowledge for the problems which are not used on a daily basis.

Qualitative Models

For examining the roots of the problem and activities to be taken, the use of knowledgebased systems is rising in prominence. As specified earlier· production rules can be formalized and become part of an expert system. Coupled with a monitoring system, analysis of problem causes is possible and actions can be triggered. In monitoring of chemical processes, this can be part of the process control system. In manufacturing it can act as a supplement to current production planning and resource planning systems like MRPII (Kerr, 1991). This implies that computers are used as tools for the analysis of data. For developing such models and systems, a well- defined view must exist of the production process and about aspects influencing its performance. Also feedback loops must be defined. Systems Dynamics then is an integral part of systems development and the way processes are actually controlled.

Particularly at the operational management level, hard models are presented not to be used critically. Even not applying them could harm the uniformity of management. This in no way implies that managers have no decision discretion any more. The application of a particular model does not necessarily imply that only a single solution is possible. Use of the systems relevant here is highly essential at this level, it can be any MIS, DSS, MRPII.

D. Conservation

Organizations always are in apprehension between renewal and reusing of results. From the perspective of efficiency, it is not clever to regard all problems as exclusive and, thus, having to reinvent solutions. Thus, it might be valuable to conserve knowledge spawned from experience and earlier research in models, knowledge bases and databases. Conservation can be understood by giving particular organizational units this job. In stringent functional organizations, this undertaking is (implicitly) assigned to the techno structure (saving knowledge about technology of production in the shape of soft or hard models) and the

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assisting staff (saving administrative data about precise cases, cumulative or individual) (Mintzberg, 1979). Moreover, a lot of this knowledge can be saved on computer systems in model bases and knowledge-base. When these models and knowledge bases are not used frequently (especially in case of tactical management), knowledge about them starts to corrode, leading to underutilization of existing knowledge. In this case, internal consultants, the support staff of the organization, or experts within a functional unit or working group, could act as model consultants. The model consultant also should make models available for organizational groups that have not been involved in the development of the model, or have never encountered the related problems before.

The maintenance of models can be both, effective and efficient at the operational management level because the same models are used on a very recurrent basis in recurring decisions. At the tactical management levels, model conservation is valuable, because ofthe costs of developing them afresh. As specified before, the model should then be open for modifications and improvements. At the strategic management level, model conservation is frequently outsourced and done by highly respected institutes that also take charge of refining the models on basis of new scientific visions.

As much motivating the topic of model conservation may be, some caution is necessary because it could easily lead to a conservative mind not adapting to new and future problems. So, a system dynamic method for knowledge conservation is extremely crucial for keeping a critical view on the influence ofhistorical solutions for the future.

IV. The Synthesis

It was proposed that strategic management chiefly uses the model development activity, with explicit computer support and at the tactical level of management critical reuse of models is suggested, demanding model maintenance activities and models that are open for maintenance. The compulsory use of models at the operational level is also proposed. The conservation activity is mainly subcontracted at the strategic application field, embedded in computer applications that are regularly used at the operational management level. These recommendations are summarised in Table 1.

The table defines a standard view on model types and computer use for the different management levels. Deviating from these standards (the empty cells 1 through 6) will probably lead to the same problems OR and MIS have met in the past, for the reason that there exists a discrepancy between their features and management demands.

1. The medium soft/hard models used for strategic management can probably be challenging to use, as strategic management may feel hindered by assumptions which

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they find irrelevant.

Tablet: Standard Relations Between Management Level, Model Management, Model Type & Computer Use

Management Model Mana2ement Activity Level Development Maintenance Use Conservation

Soft modelling. Outsourced Computer conservation by Strategic support by highly respected Stella, institutes Ansplan, PIMS

Medium Moderate

soft/hard conservation,

models. e.g. by

Tactical Computer specialists in technology

support structure and withDSS support staff.

Hard models. Much Computer Conservation, Operational support: DSS, e.g. by DSS and MIS, knowledge Knowledge based systems. based systems

2. Also utilizing too many soft models for tactical management, will not provide them with organizational goals and directives. They will feel trouble with the vagueness of the models and feel insecure for using them during decision making.

3. Hard models for tactical management will indicate problems, as tactical management will feel that the model is too strict and over precise.

4. Application of medium soft/hard models to operational management will point to failure because the model does not give the provision for making the precise decisions needed at this management level.

5. Hard models for strategic management are too precise and therefore lead to strict opposition and disqualifications of the supplier or consultant proposing it.

6. Soft models will cause prohibition ofthe consultant or supplier again.

5 and 6 are very evidently wrong. Cells 1 through 4 are more problematic to evaluate, because for more than one management level. Also, it needs a very exact understanding of

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the way management is, and also the way it thinks and works.

V. Conclusion

In this paper the author has explained an association between modelling, computer based information systems and managerial requirements for both technologies. The subsequent understandings lead to some proposals that could elucidate past problems in this area and give ideas for avoiding them in the future. Yet, for this projected model it should not only be utilised and preserved, but also be upheld and if necessary be substituted by better ones. For example, one might study in more detail the organizational environmental surroundings concerned with effective model and computer use in a management context. What ought to be aimed at is not the optimization of models and computers, but the optimization of the interface between the, models and computers and the organizational goals.

References

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[12] Groot, E. de, and W.J.M de Wolf. 1989. Spiegel voor Strategen. [A study ofPIMS andAnsplan in 16 Dutch companies]. Dutch society for Strategic Policy.

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[14] Kerr, Roger. 1991. Knowledge based manufacturing management: applications of artificial intelligence to the effective management of manufacturing companies. Addison-Wesley, Sydney, Australia.

[15] Lawler III, Edward E. and John R. Rhode .1976. Information and Control in Organizations. Goodyearpubl., Santa Monica.

[ 16] Linston, Harold A. and Murray Turoff .197 5. ( eds.) The Delphi Method: techniques and applications. Reading Mass., Addison-Wesley

[17] Mintzberg, Henry. 1976. Planning on the left side and managing on the right. Harvard Business Review July-August: 49-58

[18] Mintzberg, Henry. 1979. The Structuring of organizations. Englewood Cliffs, New Jersey, Prentice Hall.

[19] Mintz berg, Henry. 1987. Crafting Strategy. Harvard Business Review, July-August, pp.66-75.

[20] Porter, Michael. 1985. Competitive advantage: creating and sustaining superior performance. Free Press, New York.

[21] Senge, Peter M. 1990. The Fifth Discipline: the art and practice of the learning organization. Doubleday Currency, New York.

[22] Vennix, Jac. A.M. 1990. Mental Models and Computer Models: design and evaluation of computer-based learning environment for policy-making. University ofNijmegen.

[23] Weston, J.F. and E.F. Brigham. 1979. Essentials of Managerial Finance, fifth

edition. The Dryden Press, Hinsdale, Illinois.

*****

ISSN: 2249-1066, Vol. 3, No. 1, June 2013

Determinants of Factors Mfecting Bid-Ask Spread for Companies Listed in SME Platform of Bombay Stock Exchange

Abstract

Souvik Banerjee Assistant Professor, Sri Sri Institute of Management Studies, Goa

Dr. C.A. K.T.Rangamani Senior Professor, VIT Business School, VIT University, Chennai

Trading platforms exclusively for Small and Medium Enterprises (SMEs) is a new phenomenon in India, as traditionally these companies depended on capital from owner and their close associates to be used as equity capital. In West there is a vibrant SME segment for equity in mainstream stock exchange for long. After introduction in India, in a very short span of time this segment has seen a good amount of activity. The main concern of investors in these IPOs is lack ofliquidity of scrip's post listing. To maintain liquidity, the capital market regulator SEBI has mandated that there should be two way quotes by market makers, so that investors do not face liquidity related issues. In this paper, the analysis offactors that affects bidask spread for companies listed in SME segment of Bombay Stock Exchange (BSE) has been conducted in detail.

Key Words: SMEs, Bombay Stock Exchange (BSE), MSMEs, SEBI

I. Introduction For long time, Indian equity markets had entry barrier for Small and Medium Companies. Thus for most of the small and medium Indian companies door was closed to raise money from the formal equity market. Few companies who are relatively bigger, used to venture abroad, to list in markets like AIM (Alternative Investment Market) ofLSE (London Stock Exchange).

AIM of LSE was launched in 1995 and it has more than 2200 entities listed. Companies raised more than 24 billion Great Britain Pound ( GBP) to list in this market.

There are 72 India focussed companies listed in LSE-AIM. However, market capitalization of these companies are much higher than the companies that are getting listed in SME segment of Bombay Stock Exchange (BSE hence forth) or National Stock Exchange (NSE hence forth).

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16 AdhlJalJan

However, if we track the journey ofLSE-AIM, we can put things into perspective for SME Segment oflndian Stock Exchanges.

LSE-AIM started its journey on 19th June, 1995 with 10 listed entities and combined market cap of only GBP 82.2 million. This exchange is for companies that aim to raise money more than GBP 10 million and also get some international visibility. This need was felt in 1930s, that the smaller businesses do not get adequate equity capital (Arcot, Black and Owen, 2007).

Initial Public Offerings (IPOs) of companies under chapter XB of Issue of Capital and Disclosure Requirements (ICDR) of2009 to list in SME Segment ofBSE and NSE are given as follows. These companies can raise capital under this rule:

• An issuer whose post-issue face value capital does not exceed ten crore rupees shall mandatorily issue its specified securities in accordance with provisions of this Chapter.

• An issuer, whose post issue faces value capital, is more than ten crore rupees and up to twenty five crore rupees, may also issue specified securities in accordance with provisions of this Chapter, depending on its discretion.

II. India's SME Scenario

Special roles for SMEs were earmarked in the Indian economy with the advent of planned economy from 1951 and the subsequent industrial policy followed by the Government. By and large, SMEs developed in a manner, which made it possible for them to achieve the desired objectives. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provided for facilitating the promotion and development and enhancing the competitiveness of MSMEs and for matters connected therewith or incidental thereto. It emphasized on the following:

• Remove impediments due to multiple laws.

• Introduce statutory consultative and recommendatory bodies on MSME policies.

• Improve registration procedure ofMSMEs.

• Statutory basis for purchase preference and credit policies.

• Improve realization of payments due to MSMEs.

• The Prime Minister's Task Force (Jan. 2010) has recommended to set-up a dedicated Stock Exchange I Platform for SMEs. SEBI has also laid down the Regulations for the governance of SME Exchange I Platform.

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Determinants of Factors Affecting Bid-Ask Spread for Companies Listed in SME Platform of Bombay Stock Exchange 17

III. Regulations by Securities & Exchange Board of India (SEBI)

SEBI has issued a final Circular on May 18, 2010 for setting up a stock exchange I a trading platform by a recognized Stock Exchange having nationwide trading terminals for SMEs.

The necessary amendments are made to various SEBI's Regulations. Chapter XB has been inserted in the SEBI (Issue of Capital and Disclosure Requirements {ICDR}) Regulations for the SME Platforms.

Chapter XB ofiCDR Regulations specifies that the provisions of main ICDR Regulations in respect of matters not specifically dealt or excluded under Chapter XB, shall mutatis mutandis apply to any issue of specified securities under Chapter XB.

Model SME Equity Listing Agreement has been notified vide SEBI's Circular No. CIR/CFD/DIL/6/20 10 dated 17th May, 2010.

SEBI issued Guidelines for Market Makers on SME Platform vide its Circulars, Nos. CIR/MRD/DP/14/2010 dated 26th April, 2010; CIR/MRD/DSA/17/2010 dated 18th May, 2010; CIR/MRD/DSA/SE/43/2010 dated 31st December, 2010 and Chapter XB ofiCDR Regulations.

BSE is the first Stock Exchange in the Country to receive final approvals from SEBI for launch of the SME Platform, vide its letter dated OW/MRD/DSA/30653/2011 dated 27th September, 2011.

Difference in IPO process under this rule:

A. Underwriting by Merchant Bankers and Underwriters for these Issues

The issue made under this Chapter shall be hundred percent underwritten. The underwriting under this regulation shall be for the entire hundred percent of the offer through offer document and shall not be restricted up to the minimum subscription level. The merchant banker shall underwrite at least fifteen percent of the issue size on his or their own account.

B. Draft Offer document

The SMEs issuers, making a public issue or a rights issue, are not required to file the draft offer document with SEBI. While filing the prospectus with the SME exchange, they are required to file a copy with the SEBI on which SEBI will not issue any observation.

C Number of Investors

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Minimum 50 investors required while listing IPO. No post-listing continuous requirement of minimum number of shareholders.

D. /PO Process and Post Listing

• The minimum application size in terms of the specified securities shall not be less than one lakh specified securities. Further no allotment shall be made pursuant to any initial public offer ifthe number of prospective allottees is less than fifty.

• Grading ofthe IPO is not required.

• Further, SEBI has made the process of market making mandatory in a SME public offering and the responsibility is on the merchant banker to ensure compulsory market making through the stock brokers of the SME exchange for a minimum period of three years from the date oflisting of the specified securities. Pursuant to a SEBI circular dated April 26, 2010, SEBI has laid down the norms for the market makers involved in the process of market making such as registration of the market makers, the obligations and responsibilities of the market makers, risk containment measures and monitoring of market makers etc.

• Periodical financial results may be submitted on "half yearly basis", instead of "quarterly basis".

• SMEs need not publish their financial results, as required in the Main Board and can make it available on their website.

E. Rationale for granting special treatment to SMEs under chapter XB of Issue of

Capital and Disclosure Requirements(/ CDR) of 2009

• This relaxation (like no requirement ofiPO grading) of rules provides much needed reduction in cost of an IPO.

• Other relaxations like allowing publication of annual results in website, reduces operating cost, post listing.

• Mandatory market making, up to 3 years, post listing provides much needed liquidity to investors

• 100% underwriting ensures that, the issue will not fail

Benefits for SMEs to list in equity market:

1) Provide SMEs with equity financing opportunities to grow their business - from expansion to acquisition

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2) Expand investors' base which in tum will help for getting secondary equity financing, including private placement

3) Enhance Company's visibility. Media coverage can provide SMEs with greater profile and credibility leading to increase in the value ofthe shares

4) Incentive for greater venture capital participation by providing them an exit route

There are a total of 11 companies listed in BSE SME, they are as follows;

• Anshus Clothing

• BCBFin.

• Bronze Infra.

• Comfort Commotrade

• J ointeca Edu.

• Jupiter Infomedia

• Max Alert Sys.

• Monarch Health

• RCLRetail

• SangamAdvisors

• SRG Hsg. Fin.

Following are the only companies listed on NSE 'Emerge':

• Thejo Engineering Limited

• Veto Switch Gears and Cables Limited

IV. Registered Market Makers in BSE-SME Platform

• Asit C. Mehta Investment Intermediates Ltd.

• BCB Brokerage Pvt. Ltd.

• Keynote Capitals Ltd.

• IKAB Securities & Investment Ltd.

• Systematic Shares & Stocks India Ltd.

• Networth StockBroking Ltd.

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20 AdhlJalJan

• Share India Securities Ltd .

• K.M. Jain StockBrokers Pvt. Ltd .

• SMC Global Securities Ltd .

• NVS Brokerage Pvt. Ltd .

• NNM Securities Pvt. Ltd .

• DJS Stock & Shares Ltd .

• Prabhudas Lilladhar Pvt. Ltd .

• ISJ Securities Pvt. Ltd .

• Pilot Capital Pvt. Ltd .

• Karvy StockBroking Ltd .

• Shah Investors Home Ltd .

• Master Capital Services Ltd .

• Nirman Share Brokers Pvt. Ltd .

• Guiness Securities Ltd .

• Oswal Shares & Securities Ltd .

• Mili Consultants & Investment Pvt. Ltd .

• UrjainvestmentPvt. Ltd .

• Rikhav Securities Ltd .

• Comfort Securities Ltd .

• Vertex Securities Ltd .

• RJ StockBroking Pvt. Ltd .

• Narayan Securities Ltd .

• Prudent Broking Services Pvt. Ltd .

• Trade bulls Securities Pvt. Ltd .

• Sunflower Broking Pvt. Ltd .

• Choice Equity Broking Pvt. Ltd .

• Basan Equity Broking Ltd .

:..~,-~ ~ "lJ~~ ISSN: 2249-1066, Vol. 3, No.1, June 2013 LUCKNOW


• PRL Stock & Share Brokers Pvt. Ltd .

• Intensive Soft Share Pvt. Ltd .

• Ajcon Global Services Ltd .

• Sherwood Securities Pvt. Ltd .

• FRR Shares & Securities Ltd .

• Asiatic Portfolio Ltd .

• Aristro Capital Markets Ltd .

V. Calculations and Interpretations

One of the major issues in SME Segment is liquidity, to allay the investor's fears, SEBI has made market making mandatory for all the companies listed in SME Segment.

For our research we have taken all the companies listed in BSE SME platform. Out of 11 companies, two companies namely RCL Retail did not bid and Comfort Commotrade didn't ask quote, so these two companies, are kept out of analysis.

In this paper, we tried to ascertain the factors that determine the bid- ask spread quoted by market makers.

Table 1: Company-wise Market Makers for BSE SME Platform

Sl.No. Company Name Market Maker

1. Anshus Clothing Oswal Shares And Securities Limited

2. BCB Finance IKAB Securities and Investment Limited

3. Bronze Infra-Tech Sherwood Securities Private Limited

4. Jointeca Edu. Ajcon Global Services Ltd

5. Jupiter Infomedia BCB Brokerage Pvt. Ltd

6. Max Alert System Comfort Securities Limited

7. Monarch Health Net worth StockBroking Limited

8. Sangam Advisors K.M. Jain Stock Brokers Private Limited

9. SRG Housing Finance ISJ Securities Private Limited

Bid-Ask spread as a percentage of Bid Price on one particular day (2nd January, 2013) is

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22 AdhlJalJan

taken into account as the dependent variable(Y). Independent variables are:

X1 =Quantity Reserved for Market Makers in IPO as %total free float.

X2= Post Issue Promoter Holding in%

X3= Issue Size(in terms oftotal amountofmoneyraised)

X4= Number of Shares Issued to the public.

X5= Independent Directors as a percentage of the board.

X6= Price to Earnings Ratio, as calculated by LTP (Last Traded Price) and Earning per Share (EPS).

X7 = Lot Size ofBuy (Bid).

Table 2: Bid-Ask spread as a percentage of Bid Price on 2nd January, 2013

Differen Quantity

ce of Reserved

Pro mot Issu Total

Name Bid& for Numbe In depend

Sl. Market er e r of ent PIE= Buy of Ask Boldin Size N Compa Price as Makers gin% (in Shares Director LTP/E Quanti o. as%of Issued as%of PS ty ny %of Quantity (post Rs.

to Board Bid Offered

issue) Cr.) Public

Price to Public Anshus 2.71646 18,71,9 23.0769

1. Clothin 20.00000 68.5 5.05 0.6 4000 85 95 2

g

2. BCB

1.6666 22.06897 62.22 8.85 353999

0.6 54 4000 Fin 1

3. Bronze

2.649 17.85124 50.4 8.56 57,03,9

0.5 155 8000 Infra 91

4. Jointeca

5.3333 11.21845 64.32 5.35 35,68,9 0.3333 63.2 8000 Edu 95 Jupiter 14,99,9 47.5490

5. Info me 4.5161 13.63636 57.02 4.08 0.6 6000 dia

96 2

Max 39,99,9 27.8787

6. Alert 5.6179 17,64700 56.48 8 0.5 6000 System

92 9

Monarc 17,99,9 h 4.2771 20.00000 10.17 7.2 0.2857

-3000 7.

93 16.7002 Health Sangam 19,62,0 37.9310

8. Advisor 9.0909 17.43119 49.68 5.07 00 0.3333 3 6000 s

9. SRG 3.5714 15.70439 65.01 7.00 25,98,0

0.5 31.6176

6000 HsgFin 8 00 5

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Multiple Regression Analysis

After doing multiple regression analysis, we get the following equation with R

squaredvalueof 0.901087 at 95% confidence level.

Y=-23.4784+1.080582X1 -0.04181X2 -0.38781X3 -(1.182E-06)X4 -1.85387X5 -0.06194X6 +

o.0037512 X7 Table 3: Correlation of Independent Variables with Dependent Variable

Two Variables Correlation

Y, x, -0.38307

Y, x2 -0.1674

Y, x3 -0.47104

Y, x4 -0.29603

Y, Xs -0.61467 Y,X6 -0.2429 Y,X1 0.247357

The equation derived by multiple regression gives the factors affecting liquidity in BSE SME segment. Research in this paper shows, that following 7 variables have significant effect on bid-ask spread for companies listed in SME platform of Bombay Stock Exchange: • Quantity Reserved for Market Makers in IPO as % of total free float,

• Post Issue Promoter Holding in percentage (%)

• Issue Size (in terms oftotal amount of money raised)

• Number of Shares Issued to the public,

• Independent Directors as a percentage of the board,

• Price to Earnings Ratio, as calculated by dividing LTP (Last Traded Price) with Earning per Share (EPS)

• Lot Size ofBuy (Bid).

From the equation, it can be clearly interpreted that independent variable 5 (i.e. independent directors as a percentage of the board) has the highest impact on the dependent variable followed by independent variable 1 (Quantity Reserved for Market Makers in IPO as %total free float), where as variable 4 (Number of Shares Issued to the public), has the least impact. The other factors like issue size, price to earnings ratio, post issue promoter holding have their impact in descending order.

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24 AdhlJalJan

The negative sign in the regression equation shown above, indicates that most of the independent variables (except variable no. 7) have an inverse relationship with the bid-ask spread (dependent variable).

VI. Conclusion

The research done, shows that bid-ask spread in SME segment of BSE is less when the company is better governed (has more independent directors on the board), has higher mopped up capital, share price has more price to earnings ratio, has higher promoter shareholding post issue, has lower lot size and has lower percentage (%) reserved for the market makers. Less bid-ask spread is a sign ofhigher liquidity.

VII. Recommendations

To make the SME segment more vibrant and liquid, and attract more companies as well as investors, the regulator (SEBI) should think of the following suggestions, as came out from the research:

• At least 50% ofthe board should comprise of the independent directors, to have better overseeing and good corporate governance of the companies listed.

• Lot size should not be more than 100, for good vibrancy of the market.

• The percentage of shares held by the market makers should be capped to 15% of the free float. So that public shareholding increases and consequently liquidity in the market increases.

References

[1] BSE SME segment handbook

[2] www.bsesme.com

[3] http:/ /www.nseindia.com/emerge/

[ 4] http:/ /www.londonstockexchange.com/ companies-and-advisors/aim/aim/aim.htm

*****

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Emerging Characteristics and Trends of MNCs in India

Abstract

Mayank Bajpai Institute of Cost Accountants of India

Prof. (Dr.) M. Mehrotra Director, School of Management Sciences, Lucknow

India, one of the fastest growing economies with a projected GD P growth rate of nearly 9% is also expected to produce the most new multinational companies, overtaking China as potentially the emerging world's largest source of new multinationals. On the other hand India too has undergone different economic, cultural, socio-political changes since 1990 when the economy opened its door to the world. This paper aims to study the impact of Indian multinationals on the destination countries and the effect of transnational corporation's strategies in India on its future.

Key Words: Indian multinationals, emerging markets, MNC impact on India, Key strategies of Indian MNCs, Growth of service sector.

I. Introduction

Globalization was initially believed to be driven by the West with developed countries setting the rules and western companies and consumers reaping the benefits. However global economic environment is fast evolving and in today's complex and dynamic business environment the only factor constant is change, whereby the new trend in globalization is characterized by multinationals from emerging markets gobbling up western companies'. Although firms are becoming more global, markets while still large are becoming more local. Emerging market multinational firms are faring well against challenges at both their home turfs and in developed markets. They are in the process redefining management practices and innovation thus having an overall impact on the global business environment. About 70% of the world's growth in the next five years is expected to come from emerging markets.

Emerging markets provide an invaluable catalyst to companies in their core activities at home, which are then leveraged internationally as is evident from the fact that not even a single emerging market firm was world class a decade ago and now they are world's best in 25 industries. BRIC (Brazil, China, India and Russia) nations are all set to dominate the global business scenario.

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II. The Indian Business Powerhouses

During the last decade we have seen Indian companies outgrowing their national roots and making a mark in the global market. These new multinationals are expected to become more prominent in the future, providing a host of opportunities for infrastructure and business service firms in developed economies. Some will become International powerhouses of the future requiring high levels of support services around the world - IT and telecoms services, for example.

Domestic companies are symbolizing success nationally and internationally, they have made it big while staying archetypically Indian in nature undisputedly emerging as Indian MNCs. In an increasingly globalized world this is a paradigm shift. A number of these companies have successfully leveraged their expertise not only to the advantage of the Indian economy but also to spearhead the global economy (Table 1)

Table 1: Indian Multinational Companies; Turnover, Sales

Top 10 Indian MNC's Sales Total Forex Earnings Forex/Sales (By Turnover) (Rs. Crores) (Rs Crores) (%)

Jindal Saw 3873.1 2446.2 63.2

KEC Int'l 2093.2 1257.8 60.1

Lupin 2013.7 1093.9 54.3

Cipla 3572.1 1865.1 52.2

Dr. Reddy's Labs 6422.9 3092.5 48.1

Ranbaxy Labs 6017 2755.9 45.8

Jindal Stainless 4978 2267 45.5

MRPL 8563.3 11917.2 41.7

Nalco 5942.5 2318.2 39

Sterlite Industries. 24386.8 4244.1 17.4

Bharti Airtel 53487 8457 15.81

Reliance telecom 40971 7541.14 18.40

Source: Economic Times Intelligence Guide Database

A. Leading Sectors

While talking about Indian presence in global business the first thought that comes to mind is the IT sector, a sector that revolutionized the Indian business scene and placed India on the global business map. Thus making India lead the globalization of knowledge industry.

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Emerging Characteristics and Trends of MNCs in India 27

Besides IT many non IT companies are also making a foray into the international business. Starting by aggressively exporting from their low-cost operations in India and gradually opting for options as going in for overseas acquisitions, making Greenfield investments in foreign markets, signing joint ventures or a mix of all these. Indian Pharmacy companies were amongst the first to touch the foreign shores beginning their journey by exporting from their low cost bases, they are now aggressively acquiring companies in their overseas market.

A similar trend is visible in auto ancillaries, steel and metal sectors. India is only one of the major markets for these companies, which are expanding their footprints in overseas markets. In the Pharma sector, Dr Reddy's Labs acquired BetapharmArzneimittel, Ranbaxy acquired Terapia and Sun Pharma is trying to wrest control over Taro. Bharat Forge and Amtek auto have followed a similar model in the auto ancillary sector.

Table 2: Cross-border deals by Indian firms post-liberalization

12,000 ,---------------------------, 250

10,000 .............................................................................................................................................................................................................................. .

r::: 8,000 ........................................................................................................................................................................................................... . . Q .E ~ 6,000 ........................................................................................................................................................................................................ . Q) ::J Ill > ~ 4,000 ..................................................................................................................................................................... .

2,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

D By value D By numbers ---- 3 per Mov. Avg

(By value)

3 per Mov. Avg

(By numbers)

Source: UNCTAD

200

150 ~ Q) .0 E ::J

100 r::: >

CD

50

In their quest for better technology and to increase their scale of operations electrical equipment companies such as Havels and Crompton Greaves are following the same

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28 AdhlJalJan

footsteps. Suzlon Energy is also aiming for the same, as it tries to fill the market share and technological gap between itself and its global peers in wind energy. In the metals space, Tata Steel bought Corns, while Hindalco bought Novelis. Textile is another sector where many Indian companies have emerged as MNCs. The textile industry is the third-largest group among Indian MNCs.

The rise of Indian multinationals stems from the fact that these companies have been operating in a very traditional manner resulting into low debts and high liquidity. Liberalization, Privatization and Globalization policy of 1990 has given a wider horizon and a global vision free from many regulatory shackles to the Indian companies. As per UNCTAD, India's cumulative outward FDI increased exponentially from about $0.5 bn in 1995 to about $62 bn by 2008. This includes both FDI investment abroad and acquisition of global assets. Thus, globalization oflndian business has been on the rise since the mid '90s and has significantly accelerated in recent years. (Table2).

Availability of large, talented and cheap manpower in India gives companies a major advantage and helps them to remain cost-competitive amidst cutting-edge technology. 2007 was a record year for out-bound mergers and acquisitions from India. A total of 223 deals, worth $33 billion, were transacted. This represented an increase of 300 per cent over the previous year. The average deal size increased from $58 million in 2006 to $150 million in 2007. Europe topped the list as far as investment destinations were concerned, accounting for 54 per cent of the total value. The US followed in second place, accounting for 27 per cent. In terms of sectoral composition of these M&A deals, metals led the way with 56 per cent ofthe total value, followed by engineering (7% ), IT (7% ), oil and gas ( 4% ), Pharma and healthcare (3% ). Other sectors contributed the remaining 23 percent.

B. StrategiesoflndianMNCs

Internationalization of the Indian companies does not conform to the conventional form where firms expand overseas to exploit their firm specific advantages; rather, these firms have largely been driven by a search for resources, technology and other strategic assets. Several Indian companies have entered foreign markets targeting their exports at the ethnic population. Raymonds and Birla-VXL, have a number of showrooms in West Asia top sell their range of textiles items. Shaw Wallace launched a beer brand called Lai Too fan in UK through Shaw Wallace Overseas; the target consumers of this brand sold at the up market Indian restaurants are Indians.

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Emerging Characteristics and Trends of MNCs in India

Table 3: Investment Factor considered by Indian companies ( Investment factors considered by Indian MNCs on a Scale of 10)

Economic Basic Conditions 6.9

Political Development 6.1

Legal Indicators 5.6

Infrastructural Standards 4.2

Total Expenditure Comparison 7.0

Financing and Taxation 6.3 Staff Management 5.8

Cultural Influences 7.5 Source: Yojana

29

Most of the companies use local management and skills (only 4-5 Indians are sent) through adoption of their own best practices, suitably modified for local conditions. Cultural integration is the key, achieved through extensive communication at every level including Indian personnel learning to speak the home country's local language. Acquisitions facilitate quicker transformation by enabling transfer of status and reputation which helps emergingeconomy firms to overcome the liabilities of newness and foreignness in global markets, and allow integration of new and diverse organizational practices with their traditional management techniques (Cuervo-Cazurra, Maloney, & Manrakhan, 2007; Uhlenbrnck, Hitt, & Semadeni, 2006; Vermeulen & Barkema, 2001). Acquisitions have been a strong alternative mechanism to indigenous R&D efforts and internal development of innovation capabilities (Business Line, 2007a; Vanhaverbeke, Duysters, & Noorderhaven, 2002). Such capabilities are essential to enter higher value-added segments. For instance, in announcing the acquisition of US-based Wausaukee Composites Inc. (WCI), the Managing Director of Sintex Industries, a leading plastic manufacturing company in India, commented: with a portfolio of established products that have tremendous growth potential ... [WCI] will enable [Sintex] to enhance its various skills in manufacturing and marketing of value-added offerings, which will be extremely relevant in a rapidly changing Indian business environment (Sintex Industries, 2007). Advanced markets are likely to be superior venues in which to acquire knowledge-based resources.

A case in point is the Tata Steel-Corns merger, where it is expected that Tata Steel, with a 20% cost advantage in slab production, will supply low-cost slabs to Corns. In tum, Corns, with its superior product-finishing facilities, branded products and access to a wider geographical market, can realize better average yields for the combined entity (Business

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Line, 2007b ).

C. Trends inActivities ofMNCs in India

Globalization started with many international companies making a foray into the Indian markets to take advantage of the availability of cheap labor, large English speaking population, leverage the growing middle class market and increasing disposable incomes of the rural Indian population. A recent trend that has emerged in the process of globalization is global R&D activity being predominantly located in East and Southeast Asia including India. Most R&D in India was in IT but increasingly chemicals, life sciences and engineering specialties are seeing R&D related activity. Another recent trend is that India is now looking for a big leap in KPO. India automatically becomes a natural choice if we analyze the comparative costs of various aspects of KPO for different countries some of which are great record of software development, Government Support and policies, English Language proficiency, Strong tertiary education, Process quality focus, Skilled workforce, Cost advantage, Entrepreneurship, Reverse brain drain, Expansion of existing relationships, leverage relationships in West to access overseas markets Indian domestic-market growth. With the more enlightened and aware Indian consumer the MNCs are really slogging out hard to get their share of attention.

III. Conclusions and Recommendations

This study reveals that the way Indian firms have internationalized is very unconventional, rather than Greenfield projects these Indian firms however have globalized in search for resources, technology and related assets.

Following remarks summarize the points made in this paper and suggest a way forward:

1. These new Indian multinationals are also increasingly likely to operate in the higher value-add business services or manufacturing sectors and not in the more basic natural resource extraction sectors.

2. In order to reap the long term gains from globalization Indian companies need to create employment and benefit the economies of the destination countries.

3. These companies need to provide enormous opportunities for business-to-business suppliers in the host countries, in the infrastructure and business services sectors in particular, as the new multinationals are likely to require services all around the world.

4. The multinationals in India now look at it as the knowledge hub where a lot of technical talent is available at a reasonable cost.

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Emerging Characteristics and Trends of MNCs in India 31

5. With India emerging as the nation of young people, growing affluence of its rural population and an educated middle class a lot can be harnessed by the MNCs from this growing market in the coming years.

References

[1] Dalal Street

[2] Emerging Multinationals

[3] Kumar Nagesh. Emerging TNCs: trends, patterns and determinants of outward FDI by Indian enterprises, 2006.

[4] Parwan Ravi. The Indian Tiger Is on a Global Prowl. The Economic Times 500 stories, 2005.

[5] Transnational Corporation Vol. 17 Number 3 UNCTAD December, 2008

[6] The rise ofNew Multinational Companies from Emerging Economies. Price Waterhouse Cooper report, April2010.

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Relationship of Customer Preferences, Service Quality & Customer Satisfaction in Banking Sector : Critical Analysis of

Literature Review

Dr.Sunayna Assistant Professor, Chandigarh Business School, Punjab

Abstract

All the banks in India offer similar kinds of services, but they could provide differences in terms of service quality. This paper analyzes past studies regarding service quality and customer satisfaction in the retail banking industry. The relationship between service quality and customer satisfaction and their effect is also explained in this paper. Improved service quality should be adopted to give maximum satisfaction to customer and this paper contributes knowledge and background for banks to apply these findings to better shape and focus their position in the market and also to provide maximum satisfaction to customer.

Key Words: Banking, customer preferences, service quality communication, customer

I. Introduction

All customers in marketplace are involved with all kinds of services like in educational institutions, fitness centers, insurance, retail and transportation, as well as in banking in their everyday life. Customer service has increasingly played a critical role in bank's operations in today's highly competitive business environment.

Managing quality of services is difficult as compared to goods due to the heterogeneity, perish-ability, intangibility and dimensions of services. All the players of banking industry are providing more or less same services to customers. Banking practitioners have to pay close attention to superior service provision because service quality does not impact only on the customer decision-making process, but also influences customer satisfaction, purchase retention, loyalty and business survival as shown in many studies.

II. Objectives

The objective of this paper is to review the literature regarding relationship between service quality and customer satisfaction and their effect in the retail banking industry, from various kinds of studies and sources. It will lead to understandings of aspects of service quality and customer satisfaction. Past studies examined are mainly about service quality, customer

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Relationship of Customer Preferences, Service Quality & Customer Satisfaction in Banking Sector: Critical Analysis of Literature Review 33

satisfaction and their relationship in banking services. This research will seek to close the gap in this field of study.

III. Problem Identification

The major problems for this paper are to explore the body knowledge of service quality, customer satisfaction and their relationship in the retail banking industry.

IV. Service Sector in India

There was a time when it was believed that industrial revolution was the only solution to social problems such as poverty and unemployment. Now, however, the service sector promises to fulfill the task. Services touch the lives of every person everyday, be it in the field of food services, communication, leisure services or financial services, to name a few. Our welfare and the welfare of our economy are now based on services. Services lie at the very hub of economic activity in any society. No wonder that the service sector will be the biggest driver of new economic growth and profit earner in the new millennium for the world in general and India in particular. The services sector can best be characterized by its diversity.

Pattnaik and Chhatoi (2006) said that, when a customer buys a service in the service market, he buys time, knowledge, skill or resources of someone else who is the provider or supplier of the service.

Service sector plays an important role in the development of our country. Studies have shown that the employment elasticity (to GDP Growth) in the services sector is higher than that in both the agriculture and manufacturing sectors; therefore, the growth of service sector helps in the generation of employment opportunities in the country. Pattnaik and Chhatoi, (2006) also said that the services sector by providing complementary services to industry and agriculture acts as a catalyst in the growth of the entire economy.

Service sector emerged as the largest contributor to the country's GDP and grew faster than the agriculture and industrial sectors. In year 1993-94, the agriculture sector had 26.5% share in the real GDP which was reduced to 20.5% in the year 2004-05. Similarly, the industrial sector had 22.1% share in real GDP in the year 1993-94 which was reduced to 21.9% in 2004-05. While in the case of the services sector, its share in real GDP increased from 50.5% in the year 1993-94 to 57.6% in 2004-05. Trade, transportation, communication, financial services, software services including the Information Technology Enabled Services (ITES) and Business Process Outsourcing (BPO) which are the key movers of services sector. Banking sector plays a significant role in the economic

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development ofthe country.

Pattnaik and Chhatoi (2006) said that, bank by providing remittance facility with their vast branch network, help in the free flow of funds to different parts of the country, wherever there is a need for it, instead of allowing them to lie dormant in stagnant pools.

V. Banking in India The banking system in India is significantly different from that of other Asian nations because of the country's unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. There are high levels of illiteracy among a large percentage of its population but, at the same time, the country has a large reservoir of managerial and technologically advanced talents. About 30 to 35 percent of the population resides in metro and urban cities and the rest is spread in several semi-urban and rural centers. The country's economic policy framework combines socialistic and capitalistic features with a heavy bias towards public sector investment. India has followed the path of growth-led exports rather than the "export led growth" of other Asian economies, with emphasis on self-reliance through import substitution. These features are reflected in the structure, size, and diversity of the country's banking and financial sectors. The banking system has had to serve the goals of economic policies enunciated in successive five-year development plans, particularly concerning equitable income distribution, balanced regional economic growth, and the reduction and elimination of private sector monopolies in trade and industry. In order for banking industry to serve as an instrument of state policy, it was subjected to various nationalization schemes in different phases (1955, 1969, and 1980). As a result, banking remained internationally isolated (few Indian banks had presence abroad in international financial centers) because of preoccupations with domestic priorities, especially massive branch expansion and attracting more people to the system. Moreover, the sector has been assigned the role of providing support to other economic sectors such as agriculture, smallscale industries exports, and banking activities in the developed commercial centers (i.e., metro, urban, and a limited number of semi-urban centers).

International isolation ofbanking system was also due to strict branch licensing controls on foreign banks already operating in the country, as well as entry restrictions facing new foreign banks. A criterion of reciprocity is required for any Indian bank to open an office abroad. These features have left the Indian banking sector with weaknesses and strengths. A big challenge facing Indian banks is how, under the current ownership structure, to attain operational efficiency suitable for modem fmancial intermediation. On the other hand, it has

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been relatively easy for the public sector banks to recapitalize, given the increases in nonperforming assets (NPAs ), as their Government dominated ownership structure has reduced the conflicts of interest that private banks would face.

VI. Service Quality

From the marketer's perspective, service quality can be viewed as the level of service attributes needed to make the service acceptable and profitable in the market place, thus, satisfying the marketer's need for profitability and economic success. On the other hand, customer's view of service quality has equivalent to the level of service attributes required to satisfy their own needs and requirements. In this respect, marketers try to define service quality in advance while customers make during and after use evaluations.

Lewis (1993) said that customers perceive service quality in a subjective (sometimes irrational and sentimental) way and in clearly human terms. Zeithaml et al. (1990), Zeithaml and Parasuraman (2004) had opinion that unlike products; the quality of services is evaluated by customers not only by the service outcome (core service) but also by the production and delivery process as well as by the "peripherals" related to the service .

As a result of the characteristics of services, the principles and practices of product quality control cannot be used for assessing service quality. Bitner and Hubert (1994), Gronroos,(1982, 1984), Lehtinen and Lehtinen (1982) and Lewis and Booms (1983) said that, to assess the quality of services, and form an impression about the relative inferiority/ superiority of a service provider and its services, customers compare the level of the service delivered to them with their own personal expectations, shaped by past experience. Gronroos, (1982, 1984), Takeuchi and Quelch (1983); Parasuraman et al. (1985, 1988) named the result ofthis comparison is as Perceived Service Quality. However, Parasuraman et al. (1988) explained the perceived service quality as the customer's global attitude or judgment "related but not equivalent to satisfaction" of the overall excellence or superiority of a service. However Berry et al. (1988) tells that, what counts in services is the conformance to the wishes of customers rather than to any predetermined set of specifications.

As, Lewis and Booms (1983) put the service quality as a measure of how well the service level delivered matches customer expectations. Delivering quality service means conforming to customer expectations on a consistent basis. This means that, in the final analysis, customers are the exclusive judges of service quality, no matter what the marketer thinks. Berry and Parasuraman (1991) said that, if customers disagree with the marketer's perspective, then the service is problematic. Lewis (1993) explained that there is no other

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fact or reality about service quality but what customers perceive about a service.

Gronroos (1982, 1984), Parasuraman et al. (1985), Oliver (1980) gives the disconfirmation paradigm, which define service quality as a result of the comparison between perceived and expected service performance. In this respect, researchers have generally adopted either the Nordic (European) model developed by Gronroos (1982, 1984), or the American model developed by Parasuraman et al. (1985, 1988).

Quality Dimensions in the Banking Sector across the Globe

1. Gronroos (1982) suggest three dimensions of service quality: technical quality, functional quality and corporate image.

2. Lehthinen and Lehthinen (1982) identified three dimensions of service quality: physical quality, corporate quality and interactive quality.

3. Gronroos (1984) refined their previous work into three dimensions of service quality.

4. Parasuraman et al. ( 1985) identified ten dimensions of service quality

5. Parsuraman et al. (1988) refmed their previous work and explored five dimensions of quality: reliability, responsiveness, empathy, assurance & tangibility.

6. Gronroos (1990) explored six dimensions of service quality.

7. Parasuraman et al. ( 1991) refined five dimensions of service quality and devised the final version of SERVQUAL (replicate in three service industries. banking, telephone repairing and insurance)

8. Cronin and Taylor (1992) developed SERVPERF to compare with SERVQUAL.

9. Avkiran (1994) developed four factor scale that consists of seventeen items to measure Service quality.

10. Johnston ( 1997) identified eighteen dimensions of service quality.

11. Oppewal and Vriens (2000) explored twenty eight attributes to measure service quality.

12. Bahia and Nantel (2000) developed six dimensions of service quality contained thirty one items.

13. Suresh Chander et al. (2002) developed five dimensions of service quality that consists of forty one item scale.

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Relationship of Customer Preferences, Service Quality & Customer Satisfaction in Banking Sector: Critical Analysis of Literature Review 3 7

14. Malhotra et al. (2005) used 10 dimensions to measure service quality of conflicts.

VII. Customer Satisfaction

Despite extensive research on customer satisfaction, its antecedents, and consequences, no consensual definition of customer satisfaction has been developed yet. Various definitions are either fundamentally or partially inconsistent with one another even when these definitions have overlapping components. In general, customer satisfaction is viewed as a response, based on evaluations, and expressed sometimes during the purchase-consumption process.

Churchill and Surprenant (1982) explained the customer satisfaction as a cognitive response while Westbrook and Reilly (1983) understand that customer satisfaction is comprised of both cognitive and affective dimensions.

Cadotte et al. (1987) explain the customer satisfaction as an emotional response while Peterson and Wilson (1992) had opinion that customer satisfaction lacks in definitional and methodological standardization.

Westbrook and Oliver( 1991) ) considered the customer satisfaction as a result of postchoice response, Fomell (1992) as a result of post-purchase, Mano and Oliver (1993) as a result of post consumption, and Halstead et al(1994) explained that customer satisfaction take shape during consumption.

Vavra (1997) explained the customer satisfaction as the end state resulting from the consumption experience. The end state might be a positive perception of the reward sacrifices ratio or an emotional response to the consumption and use experience or resulting from the comparison of rewards and sacrifices against anticipated consequences from consuming and use of the product or service.

Customer Satisfaction in Banking Industry

Banking is one of the numerous services in which the customer satisfaction has had an ever increasing importance in the corresponding research areas. This is essentially because the banking sector is becoming more and more competitive. Retail banks are pursuing this strategy, in part, because of the difficulty in differentiating based on the service offering. Customer satisfaction in banking has not been neglected by researchers.

Rust and Zahorik (1993) provided a mathematical framework for assessing the value of customer satisfaction. The framework enables managers to determine which customer satisfaction elements have the greatest impact, and how much money should be spent to

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improve particular customer satisfaction elements. They demonstrated the application of their approach in a pilot study of a retail banking market.

Athanassopoulos (2000) performed a complete survey on customer satisfaction in retail banking services in Greece. The study proposed an instrument of customer satisfaction that contains service quality and other attributes. The performance implications of customer satisfaction instruments are also explored.

Manrai L.A. and Manrai A. K. (2007) developed and tested some hypotheses regarding the relationship between customer satisfaction and bank service switching behaviour as it is mediated by the importance of a particular bank service to a particular customer and by the nature of competitive offerings for different types ofbanking services available from other banks.

Gil et al. (2007), in their research exhibited that services encountered directly and significantly affect perceived service value which is the fmal antecedent to customer satisfaction in banking industry. Finally, Sweeney and Swait (2008) investigated the important role ofbrand ofbanks in managing the churn of current customers and improving their satisfaction.

VIII. Service Quality and Customer Satisfaction

Although service quality and customer satisfaction are dominating the market literature, it is common to find no clear distinctions between the two constructs. Nguyen ( 1991) considers that service quality and customer satisfaction represent the same concept while Dabholkar ( 1993) suggest that, service quality and customer satisfaction converge in time to represent the same thing: a kind of global attitude. Iacobucci et al. (1995) said that sometimes the terms "service quality" and "customer satisfaction" are used interchangeably both in industry and in academia. This confusion is largely a result of two factors (Figure 1.1 ). The first factor is somewhat exclusive, use of the disconfirmation paradigm to conceptualize both service quality and customer satisfaction as functions of expectations and performance perceptions. The second factor is that the two constructs have similar consequences.

Figl: Service Quality and Customer Satisfaction Source: Iacobucci et a!., 1995

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Iacobucci et al. (1995) suggest that the difference between service quality and customer satisfaction may only reflect managerial versus customers' concerns; that is when service providers deliver high quality services, customers are satisfied or not depend upon experiencing these services. However, Shemwell et al. (1998) explain the position that service quality and customer satisfaction are conceptually distinct but closely related constructs that prevail in the literature. Service quality researchers tend to consider service quality as a more long-term and general evaluation as opposed to satisfaction which is a transaction specific assessment. Based on these grounds Parasuraman et al. (1988) proposed that the instances of satisfaction over a time period lead to a perception of general service quality. This argument gained support from other researchers such as Bitner (1990), who developed a transaction appraisal model in services and empirically supported the effect of satisfaction on service quality, and Bolton and Drew (1991b) who suggested that satisfaction leads to service quality.

On the contrary, researchers of customer satisfaction propose that perceived service quality is an antecedent of customer satisfaction. For example, Cronin and Taylor (1992) reported that, in their analysis for the causal relationships between satisfaction, service quality, and purchasing intentions, the coefficients of the path:

'Service quality'~ 'satisfaction'~' purchasing intentions' were all significant while the ones of the path:

'Satisfaction'~ 'service quality'~ 'purchasing intentions' were not.

Parasuraman et al. (1994) pointed out that conflicting arguments might result from the holistic focus of research on service quality contrary to satisfaction research which is mainly based on specific transactions. They proposed that service quality and customer satisfaction should be examined under both viewpoints. The prevailing general conclusion is that when the term service quality is used to refer to a global, long-term attitude about a service provider, then customer satisfaction is generally recognized as an antecedent of service quality. However, where the term is used to refer to something rather more specific (quality ofthe delivered service or quality of the service encounter, for example), then there seems to be a strong case for seeing quality as an antecedent of satisfaction.

Kristiansen et al. (1999) propose that the relationship of perceived quality with customer satisfaction depends on product category and the process of satisfaction depends on price and other factors such as:

1. The complexity of evaluation

2. The objective quality ofthe product and

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3. How prestigious the product is with respect to the customer's social status?

These factors are included in the European Customer Satisfaction Index ECSI which links customer satisfaction with its determinants and its outcome, namely customer loyalty. In the ECSI model, perceived quality is divided in two components namely hardware, referring to the quality of the attributes of the product/service and human-ware referring to the human contact.

IX. Service Quality and Customer Satisfaction in Banking

Avkiran (1994) in their research found that the banking industry has a link between service quality and customer satisfaction. Levesque and McDougall (1996) investigated the influence of key determinants of service quality on customer satisfaction in financial institutions. They found a substantial impact of service problems on customer satisfaction and their intensions to switch. Yavas et al. ( 1997) suggest that service quality is an essential determinant of customer satisfaction.

Islamic banks working in different parts of the world assessed their performance in reference to service quality and customer's responses. An empirical study was conducted by Naseer, Jamal and Al-Khatib in 1999 to measure customer awareness and satisfaction by using a sample of 206 respondents towards Islamic banking in Jordan. It was observed by them that customers have awareness about products oflslamic bank but expressed a sense of dissatisfaction towards some ofthe services.

Oppewal and Vriens (2000) empirically investigated the relationship between service quality and customer satisfaction by using original SERVQUAL instrument with 10 dimensions as devised by Parasuraman et al. (1985). This study gave a direction to relate service quality and customer satisfaction.

Service quality gained significance with the passage of time due to increased competition among service firms. It was examined that how customer satisfaction affects the customers' behavioral consequences. The study conducted by Athanassopoulos, Gounaris and Stathakopoulos in 2001 found a strong impact of customer satisfaction on their decision to stay with the existing service provider; and restrain their negative behavioral intentions.

Kayis, Kim and Shin (2003) conducted a comparative analysis of Australian and Korean banks to fmd out the quality management practices and its outcomes. They found a meaningful relationship between perceived service quality and customer satisfaction. They suggest that organizations should focus on service quality as an input to customer satisfaction for long-term benefits and business success.

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Wang et al. (2003) said that now banks have realized the importance of service quality for successful survival in today's global and highly competitive environment.

Jamal (2004) investigated the customer behavior in retail banking by considering service quality and its outcomes. It was observed that customers have varied experiences of satisfaction and dissatisfaction for utilization of self-service technologies. Financial sector is becoming more conscious about the performance evaluation regarding quality of products/services according to customers' expectations.

In another study conducted by Duncan and Elliott (2004), findings reveal a positive correlation between financial performance and customer service quality scores.

Curry and Penman (2004) reported that service quality is inevitable for differentiation to compete in the banking sector. They suggested that the right service could retain the customers for long-term benefits. So, banks should maintain the level of services by proper allocation of resources to meet customer requirements. Findings indicate that financial institutions require reasonable procedures to evaluate the overall satisfaction of their customers.

However, Joseph et al. (2005) said that understanding of changing needs and expectations of customers is an essential prerequisite for the financial sector.

Jabnoun and Khalifa (2005) proposed and tested a measure of service quality to compare conventional and Islamic banks in UAE. The study found that four dimensions were significant in case of conventional banks. While only personal skill and values were crucial in determining service quality in Islamic banks.

Nelson and Chan (2005) in their study found that bank-customer relationship quality is evident between satisfied and dissatisfied customers. Both types of customers have clearly distinctive feelings regarding their service experience.

Al-Hawari and Ward (2006) found that customer satisfaction plays an inter-mediator role in the relationship between service quality and financial performance of the banks.

In another study by Nelson (2006), overall customer satisfaction was investigated in Malaysian banking industry by collecting data from 220 customers of 15 retail banks. It was found that overall customer satisfaction is one of the key determinants of relationship quality.

Razak et al. (2007) in their study suggested that bank should start service quality improvement programs to enhance customer satisfaction and customer loyalty.

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X. Contribution of Knowledge

This research provides information on effect of service quality on customer satisfaction as well as service quality improvements in retail banking. Hence, bankers can apply knowledge and findings for their banks to build or improve a competitive edge, increase customer satisfaction and maintain long-term profits.

XI. Conclusion

Nowadays, banks are working in a dynamic business environment as they experience cut throat competition and changes in customer demand, and a decrease in profit margins. Understanding of changing needs and expectations of customers is an essential prerequisite for the financial sector (Joseph et al. 2005). Thus, it is significant for banking practitioners to focus on a service quality improvement (Razak et al., 2007), to satisfy their customer as customer satisfaction plays an inter-mediator role in the relationship between service quality and financial performance of the banks (Al-Hawari and Ward, 2006). Many researchers found meaningful relationship between perceived service quality and customer satisfaction. They all suggest that banks should focus on service quality as an input to customer satisfaction for long-term benefits and business success.

XII. Suggestions and Recommendations

On the basis of critical analysis ofliterature review, researcher suggested that banks should consider the demographic profile of each customer while giving the banking services to these customers, as each customer have individual needs and wants according to their demographic status. Bank manager should offer customized services to customers of different age group. They should offer service according to age as customers of different age group have different needs of banking services. Bank should also provide customized services to business class customers and service class customers. Likewise the married customers have need of different type ofbank services as compared to unmarried customers. So it is suggested that banks should consider the demographic profile of each customer while giving the banking services to these customers as each customers have individual needs and wants according to their demographic status.

Bank should give more attention towards tangibility dimension of service quality. Bank should have modem equipments and fixtures. Physical facilities at bank should be visually appealing. Materials associated with the bank's service (such as ATM card, debit cards, catalogs, or statements) should be visually appealing and the bank staff should be friendly and courteous to the customers.

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In order to give better customer service and more satisfaction to customers, it is suggested that bank should concentrate on some important points like the sales persons in the bank should give prompt service to customers, bank staff should perform services right the first time, the bank should understand the specific needs of customers, staff of the bank should appear neat and clean, the bank staff should keep their promise, operating hours of the bank should be more convenient to customers, personal attention should be given.

Finally, it is important that service quality be re-assessed on a regular basis. The first assessment provides a baseline for comparison with future assessments. This comparison is essential for measuring the effectiveness of service quality improvement efforts and identification of service quality drifts as they come into view. The regularity of reassessments will vary with the individual firm's situation. However, customer satisfaction studies can be typically conducted either quarterly or annually.

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[44] Razak, R.M., Chong, C.S., & Lin, B. (2007). Service quality of a local Malaysian bank: Customers' expectations, perceptions, satisfaction and loyalty. International Journal of Services and Standards, 3 (1 ), 18-38.

[45] Rust, R.T. andZahorik,A.J. (1993). Customer Satisfaction, Customer retention and Market Share. Journal ofRetailing, 69:193-215

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[46] Shemwell, D.J., Yavas, U., and Bilgin, Z. (1998). Customer-service provider relationships: an empirical test of a model of service quality, satisfaction and relationship oriented. International Journal of Service Industry Management, 9(2):155-168

[47] Sureshchander, G.S., Chandrasekharan, R. and Anantharaman, R.N. (2002). The relationship between Service Quality and Customer Satisfaction-A Factor Specific Approach. Journal of Service Marketing, 16( 4):363-379

[ 48] Sweeney, J. C., & Swait, S. (2008). The effects of brand credibility on customer loyalty. Journal of retailing and consumer services, 15, 179-193. http:/ /dx.doi.org/1 0.1 016/j .jretconser.2007 .04.001

[49] Takeuchi, H. and Quelch, J. A. (1983). Quality Is More Than Making A Good Product. Harvard Business Review, 61 (Jul-Aug): 139-145.

[50] Vavra, G.T. (1997). Improving your Measurement of Customer Satisfaction: A Guide to Creating, Conducting, Analyzing and Reporting Customer Satisfaction Measurement Programs. ASQ Quality Press, Milwaukee, Wisconsin

[51] Wang, Y., Lo, H-P. and Hui, Y.V. (2003). The antecedents of service quality and product quality and their influences on bank reputation: evidence from the banking industry in China. Managing Service Quality, 13(1 ):72-83

[52] Westbrook, R.A. and Reilly, M.D. (1983). Value-precept disparity: an alternative to the disconfirmation of expectations theory of consumer satisfaction. In R.P. Baggozi and A.M., Tybout (Eds.), Advances in consumer Research (pp. 256-261), (Ann Arbor, MI, Association for Consumer Research)

[53] Westbrook, R.A., and Oliver, R.L. (1991). The dimensionality of consumption emotion patterns and consumer satisfaction. Journal of Consumer Research, 18:84-91

[54] Yavas U, Bigin Z, Shenwell D (1997). Service quality in the banking sector in an emerging economy: a consumer survey, Inter. J. Bank Mark, 15( 6): 217-223.

[55] Zeithaml, V.A. and Parasuraman, A. (2004). Service Quality. Marketing Science Institute, Relevant Knowledge Series, Cambridge, Massachusetts

[56] Zeithaml, V.A., Parasuraman, A. and Berry, L.L. (1990). Delivering Quality Service. Balancing Customer Perceptions and Expectations. The Free Press, New York.

****

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Herzberg's Theory: Implications in Present Scenario

Zubair Ahmad Sr. Lecturer, Dept. of Business Administration, Azad Institute of Engineering & Technology,

Lucknow.

Abstract

The major factor that keeps the employees bounded with the organization is motivation. Various management thinkers have conducted several studies to understand the relationship between motivation, efficiency and satisfaction. One of the outstanding effort in this regard is Herzberg's two factor theory.

Herzberg in his theory took two categories containing various factors that may have impact on employee satisfaction. The study was conducted on a group of people and the theory was propounded. This theory is relevant even today, keeping this in mind, this study is conducted in the Lucknow city but interviewing a selected sample of respondents working in different capacities.

Motivation in simple terms may be understood as the set of forces that cause people to behave in certain ways. A motivated employee generally is more quality oriented. Highly motivated worker are more productive than apathetic worker. One reason why motivation is a difficult task is that the worliforce is changing. Employees join organizations with different needs and expectations. Their values, beliefs, background, lifestyles, perceptions and attitudes are different. Not many organizations have understood these and not many HR experts are clear about the ways of motivating such diverse worliforce.

Now-a-days, employees have been hired, trained and remunerated but they need to be motivated for better performance. Motivation in simple terms may be understood as the set of forces that cause people to behave in certain way. People are motivated towards something they can relate to and something they can believe in. Times have changed, people want more. Motivated employees are always looking for better ways to do a job. It is the responsibility of managers to make employees look for better ways of doing their jobs.

The purpose of this study was to identifY through hypothesis testing how Herzberg's theory ofjob satisfaction is relevant in present scenario. The study was conducted using structured questionnaire on private and public sector employees. Chi-square technique was applied and chi value was computed to test the formulated hypotheses in order to find relevance of Herzberg theory in present context.

Key Words: Motivation, hygiene factors, job satisfaction, satisfaction, dissatisfaction.

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Herzberg's Theory: Implications in Present Scenario 49

I. Herzberg Theory ofMotivation

Traditionally job satisfaction has been assumed to follow a single underlying continuum. One end of this continuum was supposed to represent a high level of satisfaction with the job, while the other end was purported to reflect a high level of dissatisfaction with the job. Points between the two extremes were assumed to reflect various degrees of satisfaction/ dissatisfaction.

Frederick Herzberg and associates in 1959, conducted extensive interviews on two hundred engineers and accountants using critical-incident method for data collection. Herzberg made a theoretical departure from traditional continuum concept by suggesting that job satisfaction was hypothesized to operate on a continuum which ranged from high to no job satisfaction while job dissatisfaction operated on another continuum which ranged from no to high job dissatisfaction. These two continua were hypothesized to be independent of each other. Based on extensive empirical investigation, Herzberg set forth a two-factor theory of job satisfaction which received both widespread support and criticism. Herzberg published two-factor theory of work motivation in 1959. The theory was highly controversial at the time it was published; claims to be the most replicated study in this area, and provided the foundation for numerous other theories and frameworks in human resource development (Herzberg, 1987). The theory states that job satisfaction and dissatisfaction are affected by two different sets of factors. Therefore, satisfaction and dissatisfaction cannot be measured on the same continuum. Herzberg's research was conducted during the late 1950s within a thirty mile radius of Pittsburg, which was at that time, was a centre for heavy industries. It was the time of full employment and nearly 100% utilization of plants and facilities. Although demo graphical information of the workers studied was not explicitly stated by authors in the literature. So, it is implied that the majority of workers studied were white males. It was also a period of heavy unionization. This is in stark contrast to the current work environment of customer-service oriented jobs, high unemployment rates, idle and closed plants, the diverse workforce, and decline of unionization.

Herzberg's Two-Factor Theory divides motivation and job satisfaction into two groups of factors known as the motivation factors and hygiene factors. According to Frederick Herzberg, "motivating factors are six job content' factors that include achievement, recognition, work itself, responsibility, advancement, and possibility of growth. Hygiene factors are the 'job context' factors, which include company policy, supervision, work conditions, relationship with peers, salary, personal life, relationship with subordinates, status, and job security". Basically the theory differentiates factors between intrinsic motivators and extrinsic motivators. The intrinsic motivators, known as job content factors,

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50 Adht~alJan

define things that the people actually do in their work; their responsibilities and achievements. These factors are ones that can contribute a great deal to the level of job satisfaction which an employee feels at work. Job context factors, on the other hand, are extrinsic factors that someone as an employee does not have much control over; they relate more to the environment in which people work than to the nature of the work itself (Schermerhorn, 2003). Herzberg identifies these factors as the sources for job dissatisfaction. "Hertzberg reasoned that because the factors causing satisfaction are different from those causing dissatisfaction, the two feelings cannot simply be treated as opposites of one another. Opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction. While at first glance this distinction between the two opposites may sound like a play on words, Herzberg argued that there are two distinct human needs portrayed" ("Herzberg's MotivationHygiene Theory," 2002).

Therefore, the basic premise of two-factor theory is that if an employer or manager is trying to increase job satisfaction and ultimately job performance for an employee or co-worker, they need to address those factors that effect one's job satisfaction. The most direct approach is to work on intrinsic, job content factors, giving the employee encouragement and recognition which helps them to feel more valued.

II. Research Methodology

There has been a lot of study in the area of motivation and job satisfaction which still remains unexplored to some extent and yet a general understanding that has not been developed when it comes to studies conducted at different times and in different work environment. One ofthe greatest challenges that organizations face today is how to manage turnover of work force that may be caused by migration of lot of industrial workers. Therefore, it has become an important area of research that how to reduce turnover and absenteeism and improve performance of an organization. Moreover, it has been observed many a times that employees who are satisfied with their jobs are still not good performers. This may be because of lack of motivation and commitment for the organization. The purpose of this present study is to retest Herzberg's theory of job satisfaction using a questionnaire in the light of critical incident technique used in original study.

As the research is descriptive in nature the study relies on primary data collected from employees from various sectors. Survey was conducted at Saharaganj walk-in and fun republic walk-in. About 60% of the employees are from the private sector and 40% from public sector. Primary data has been collected by the researcher through standard structured

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questionnaire. The questionnaire consists of 10 questions and all are 5 point Likert scale based questions. Sample size of 200 is taken and convenience method of sampling is adopted.

Tool used : Chi-square Test

Chi-square test is applied to test the goodness of fit to verify distribution of observed data with assumed theoretical distribution. Therefore it is a measure to study the divergence of actual and expected frequencies; Karl Pearson's has developed this method to test the difference between the theoretical (hypothesis) and the observed value.

Chi-square test

Degrees ofFreedom V=(R-1)(C-1)

Where,

'0' =Observed frequency

'E' =Expected frequency

'R' =Number of rows

'C' =Number of columns

III. Interpretations and Calculations

Hypotheses

H 0: There exist no significant relationship between Herzberg hygiene factors & job satisfaction.

H 1: There exist significant relationship between Herzberg hygiene factors & job satisfaction.

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Table: Relation between Hygiene Factors & Job Satisfaction

SINo. Factors Strongly

Agree Undecided Disagree Strongly

Agree Disagree

1. Company policy 86 57 12 24 21

2. Working conditions 116 61 14 9 0

3. Technical supervision 26 95 30 22 27

4. Salary 174 17 4 5 0

5. Status 53 73 5 40 29

6. Personal life 55 92 17 33 3

7. Job security 143 24 0 23 10

Interrelationship with 8. peers, supervisors and 47 65 22 44 22

subordinates

Table for Chi-square Test

0 E (0-E) (O-E)2 (O-E)2/E

86 87.5 -1.5 2.25 0.03

57 60.5 -3.5 12.25 0.20

12 13 -1 1 0.08

24 25 -1 1 0.04

21 14 7 49 3.50

116 87.5 28.5 812.25 9.28

61 60.5 0.5 0.25 0.00

14 13 1 1 0.08

9 25 -16 256 10.24

0 14 -14 196 14.00

26 87.5 -61.5 3782.25 43.23

95 60.5 34.5 1190.25 19.67

30 13 17 289 22.23

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22 25 -3 9 0.36

27 14 13 169 12.07

174 87.5 86.5 7482.25 85.51

17 60.5 -43.5 1892.25 31.28

4 13 -9 81 6.23

5 25 -20 400 16.00

0 14 -14 196 14.00

53 87.5 -34.5 1190.25 13.60

73 60.5 12.5 156.25 2.58

5 13 -8 64 4.92

40 25 15 225 9.00

29 14 15 225 16.07

55 87.5 -32.5 1056.25 12.07

92 60.5 31.5 992.25 16.40

17 13 4 16 1.23

33 25 8 64 2.56

3 14 -11 121 8.64

143 87.5 55.5 3080.25 35.20

24 60.5 -36.5 1332.25 22.02

0 13 -13 169 13.00

23 25 -2 4 0.16

10 14 -4 16 1.14

47 87.5 -40.5 1640.25 18.75

65 60.5 4.5 20.25 0.33

22 13 9 81 6.23

44 25 19 361 14.44

22 14 8 64 4.57

Total 490.96

Calculated value of x2 =490.96

Tabulated value of X2 at a(p)= 0.05, d.f.28 = 41.333

Interpretation

Since, calculated value of X2 is much greater than tabular value of X2, we reject H0 and

conclude that, there exists significant relationship between Herzberg hygiene factors and

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54 Adht~alJan

job satisfaction.

IV. Conclusion

The study has proved that, there is a significant relationship between Herzberg's hygiene factors and job satisfaction. Herzberg's study was conducted keeping in mind certain predetermined assumptions which may or may not be applicable in all the situations. The employee criterion for job satisfaction is subjected to various personal priorities that ultimately determine how and in what manner the employee will react.

Some factors which are relevant in present scenario and also in Herzberg theory are company policy, working conditions, technical supervision, salary, status, personal life, job security, interrelationship with peers, supervisors and subordinates. In all the above factors salary plays the most important role then comes job security, working conditions, company policy and other factors. These factors give motivation to all employees and where salary structure, job security and company policy are in favour of the employee, turnover rate decreases and they can perform better in terms of quality also. Training also gives motivation to employees, so when there is a need of training, every effort should be done to provide training to employees.

References [ 1] Decenzo DavidA. and Robbins Stephen P., 2002, Human Resource Management, 7th

ed. John Wiley and Sons, Inc.

[2] Emmert, M. and Tamer W. A., 1992, Public Sector Professionals: The effect of Public Sector Job on Motivation, Satisfaction and Work involvement, American Review ofPublicAdministration, Vol. 22, pp.3 7-48.

[3] Herzberg Fredrick, Work and the Nature ofMan, Clevated, Ohio, World Publishing Co., 1966.

[ 4] Likert, Rensis New Pattern ofManagement, New York, Me. Graw Hill, 1961.

[5] Steers, R. and Black, J. 1994,"0rganization Behavior", 5th ed, Harper Collins. Their Reward," Wall Street journal, pp. B-1.

[6] Wagar, Terry H., 1998, "Determinants of Human Resource Management Practices in Small Firms: Some Evidence from Atlantic Canada", Journal of Small Business Management, pp.13-23.

*****

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Women Entrepreneurship The Key Accelerator for Empowered India

Dr. Shailja Dixit Asst. Professor, Amity Business School, Gomti Nagar, Lucknow

Anurag Dixit Dean, VIMS, Gomti Nagar, Lucknow

"There is a women at the beginning of all great things". -Lamartine

"Women is the Builder, Moulder & Nation's Destiny". -Rabindranath Tagore

Abstract

Women entrepreneurship is an increasingly salient part oft he economic makeup and is a key contributor to economic growth in almost all countries. Any strategy aimed at economic development will be unbalanced without involving women who constitute half of the world's population. Women entrepreneurs comprise about a third of enterprises globally and contribute significantly to employment generation and development. Skill, knowledge and adaptability in business are the main reasons for women to take up entrepreneurship. Nonetheless, their potential is underutilized, and women's under-representation as leaders in both business and the political arena remains a concern. In many countries, women are not only less likely to turn to entrepreneurship, but their businesses are more likely to be informal, generate less revenue and employ fewer staff. Reasons for these are varied and include unfavorable business regulations, continued cultural barriers, gender stereotypes, women's double roles at home and work, as well as unequal access to resources and bank credit.

Major objectives of the study are to assess the role of women entrepreneurs in creating new economy, to ascertain the factors in the emergence of women entrepreneurs' highlight the major constraints and challenges faced by women entrepreneur and opportunity available to them. At the end the paper makes some suggestions for increase or promotion of women entrepreneurs and healthy growth ofwomen entrepreneurs in India.

Key Words: Women entrepreneurship, economic development, challenges & opportunities in India.

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I. Introduction

"Women are the most underutilized economic asset in the world's economy."

-Angel Gurria, Secretary-General, OECD.

The dawn of 21 •t century has come with greater trials and tribulations and lesser stability in every domain of social life. A central driver and the most vital aspect of modern civilization and of economic growth over the past century is the increased role ofwomen. The position and status ofwomen in any society is an index of its civilization and progress. Nearly 1 billion women around the world will enter the global economy during the coming decade. They are poised to play a significant role in countries around the world as significant as that ofthe billion-plus populations of India and China. Yet this "third billion" has not received sufficient attention from governments, business leaders, or other key decision makers in many countries.

Research from United Nations Entity for Gender Equality and the Empowerment of Women indicates that there is a direct link between increased female labor participation and growth. It is estimated that if women's paid employment rates were raised to the same level as men's, America's GDP would be 9 percent higher; the Euro-zone's would be 13 percent higher, and Japan's would be boosted by 16 percent and in developing economies, the effect is even more pronounced. The United Arab Emirates would see a boost of 12 percent in GDP, and the Egyptian economy would grow by 34 percent. It is estimated worldwide that, approximately one third of all businesses are owned by women. Despite this, there is a need for changing mindset towards women so as to give equal rights as enshrined in the constitution.

Simply put, empowering half of the potential workforce has significant economic benefits beyond promoting gender equality (Duflo 2005, World Bank 2012). This growth stimulus is particularly true for female entrepreneurship and the economic dynamics that entrepreneurship promotes.

II. Literature Review

A. EntrepreneurshipMeaning

The origin of the basic word "Entrepreneurship" is from a French word "Entreprendre", where it cradled and originally meant to designate an organizer of certain musical or other entertainments. Since then, the term "Entrepreneur" is used in various ways and various views. Broadly speaking, a person who assumes and

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Women Entrepreneurship The Key Accelerator for Empowered India 57

bears all types of risks involved in an enterprise, who organizes the various inputs or factors of production and who innovates news ideas, concepts, strategies and methodology in business from time to time is known as Entrepreneur. Schumpeter, 1934, describes that entrepreneur is someone who innovates and whose function is to carry out new combinations called "enterprises" and are the prime movers in economic development.

B. WomenEntrepreneurship

"Women Entrepreneurship" means, an act of business ownership and business creation that empowers women economically, increases their economic strength as well as position in society. Women entrepreneurs have enormous potential to bring prosperity in the world and therefore encouraging women entrepreneurship is very important (Me. Connell, 2007). These women entrepreneurs are generally classified into self-entrepreneurs, inheritance entrepreneurs, and partner entrepreneurs (Starr andYudkin, 1996).

Studies show that women business owners are making significant contributions to global economic health, national competitiveness and community commerce by bringing many assets to the global market. As per the analysis of research study, women entrepreneurs have demonstrated the ability to build and maintain long-term relationships and networks to communicate effectively, to organize efficiently, to be fiscally conservative, and to be aware ofthe needs of their environment and to promote sensitivity to cultural differences. Researchers contend that women business owners posses certain specific characteristics that promote their creativity and generate new ideas and ways of doing things.

C. Quantifying Economic Contribution ofWomen

One can determine the relationship between economic activity (GDP) and employmentforagivencountrybyusingthefollowingequation:

per capita GDP =labor productivity x amount of work produced per person x employment

rate x age factor.

Hence, positive changes in labor productivity, hours worked, employment rate, and demographics all positively affectGDP.

Amore scientific form ofthe equation looks like this:

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58

pacap."ta GDP-GDPIB X BIE X EIWAI' X WAI'/P Where:

GDPIB~GDP/hourworked(laborproductivity).

BIB~ hour worked/employment (annual average in workiq hour per employed person).

BIWAP~ employment/working-agepopulation (1 S-64) (employment rata).

WAPIP~workiq-agepopulation/population("youthdividend").

Goldman Sachs, in 2007 calculated the impact of greater female participation in workforce that em have a hqe impact on national economy. It assumed that raising female employment to the male employment level in a country would boost the overall employment rate by a meuurable amount [(male rate-to-overall rate )/overall rate ]-andalsopercapitaGDPbyaaimilaramount.

IlL The Global Women

..4. PositiiJIIO/WOIIWIIIIIIITqmwii'Gioklly

In tile 21atcentury, womenajoymme fi'wlam ad powertlwl ever before. However, they an: still d.isadVIIItagcd when compved to men in virtually all aapecls of life. Women an: ckprived of equal accesa to education, heallh can:, capiCa1, and dcciaion making power& in the political, social,IUid buincss sector~. Whmu, men are cmlited with perf'Ol'llliq dJree quarters of all economic adivitics in developing c:ountrics, women aetwilly pcafwm 53 pm:ent of the work, according to the United Natiou. The 1995 UN HUDWlDevelopment hporf.states1hat"ani!Biimatecl$16trillioninglobalou1]ndiscummtly'invUible',ofwbic:h $111rillioniaeatimatedtobeproduoodbywomen".

The graph below clearly dtmcmsbates 1hat 865 ID111ion wam1111 live outside the Global Bccmomic system worldwide, which will grow to 1 billion in the comingdooade.

AllCO!ding to the Global EnbepeneurBhip M<mifm (GEM) 13th Aimwd Survey Report (2011) CCJildnc:ted in 54 ec<momiel, 8l"'mD"8 divene geographies and a nmge of development levels, it is e,t'imatcd that 388 million tmln!pnmmm Willa actively engaged in starting IUid nmning new buaineasea in 2011. Tbeae included an eatimate that 163 mmjon women w~~~a early-slllio enttepreU1118, 165 million YOULI8 early-ctap cmbeplen"lll'S between the ages of181U1d3S, 141 million early-stage en1Zepmltul'l whoexpec1ed to create a least five new jobs in the lieD five years, 6S million early-slap entrepreneurs who

~ .~ ' ~.;

t~~l.\,;,

59

expedtd to create 20 or more new jobs in lhc l!eld five years, 69 million early-stage elllrepreDew's tludofii:rilmovadveproduds IDd services dware new to customers ami have :few o1lu!r compll1itun, 18 million early-ataga ~ dw sell at least 2S% of their produc11andservices iD.tmulionally.

865 million ww worl4wido lead liC4 outside the -nomio II)'Btm1

91.8

2020 {Ill Mmlou)

649.3

Thcae 865 million women in 2020 will ~vahly glOW 10 1 bil&n infoUowiJis decade

JJ. CtmtlihfllillllafWOlffiiiiB11tnp,_,,_.,.GIDklECOIIIIIIf,1

Overlhcnextfi.veyears,thcBottonConsultingOroup(BCO)eslimatesthatglobal.incomes of women wiD grow from Sl31rillian to SIS trillicm. That incremental SS trillion ia nearly twice the growth in GDP expeetcd from China. ($4.4 to $6.6 trillioa) aDd IDdia ($1.2 trillion to $1.8 trillion) combined. Globally, womc:n are the biggest emergiDg market ever sem. 0ven11, men cam nearly twice u IDIICh IDOI1CY u women today, but that gap wiD shrink u momwumenmdartholabarfarceand atbipiii'WIIpl1han ev•baf'ore. 'I'h11vastmajority of new illcome growth over lhc neatt1al yeara wiD come from womCD. Tb chart below ahowa thaOrowthofWomen'sc:ontributiontoForbmeSOOCompamas:fi:mnl997to2007. 'l'hedata ahows1hatgmdual.lywomc:nareiacreuiDgdWrabaleinbulille8aatal.llevel8global.ly.

'l'hlmiiiRI abou18 nrillian WOIIIe!HlWUCl entmprises in 1hll U.S. These businesaes hava an amma1 impactof$3 trillionandcreateormaintain moretlum23 mjmonjobs i.e.16%ofal.l U.S. cmploymant, acc:onliDgto1h11 Canter for WOIIICIII's BusiniiSS Rctsoan:h. The Canter also fouDd dw while women-owned :lhmJ accoiiDt far 40"AI of al.l privately held :firma, only one in fi.vewomcn-ownedfirms have revenue over $1 million.

ISIIN: :1149-1006, W. 3, N"' I,-:1013

60 Adht~alJan

Table 1: Growth in Women's Contributions to Fortune 500 Companies from 1997 to 2007

Level in Fortune 500 Companies Increase from 1997 to 2007

CEOs 2 to 13

Top earning officers 61 to 142

Board seats 643to831

Corporate officers 1,173 to 1,344

Source: Catalyst Census of Women

Research shows the contribution of women entrepreneurs towards GDP in various countries globally.

Table 2: Women Entrepreneurs towards GDP

Country Gross Impact on GDP Net Impact on GDP

Argentina 19% 12%

Brazil 15% 9%

China 8% 5%

Denmark 4% 3%

Egypt 56% 34%

France 7% 4%

Germany 7% 4%

India 45% 27%

Italy 19% 11%

Japan 15% 9%

South Africa 17% 10%

Spain 10% 6%

Sweden 3% 2%

Tanzania 3% 2%

United Arab Emirates 19% 12%

United Kingdom 8% 5%

United States 8% 5%

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C. Global Problems For Women Entrepreneurs

Globally, only 20% of women cite income from a business as the main source of wealth. The survey said that, today's global picture of female wealth was largely driven from earnings and business ownership (83.9%) or from personal investments (32.8%), which compares favorably to marriage (24. 7% ), divorce (2.2%) and inheritance (19 .9% ).

Global Competitiveness Report 2011, shows that economic participation of Asian countries is far behind Europe and USA; despite that the survey titled 'Barclays Wealth Insights: A Question of Gender' said that, "compared to any other global regions, wealth generated by female entrepreneurship is highest in Asia, where 26% cite income from a business as their main source of wealth".

Outputs THE THIRD BILLION INDEX

Finland

Canada ""' Australia ~ ¢ ""' //Norway

Germanx.__ ¢ ¢.

France -----¢ ¢ ~ AfricaK . ~ ~ Sweden Smgapore ¢ ¢ ¢ ~

D ¢ / ¢¢ Belgium

S ¢o ¢ ¢ ¢ 1 , , -o -, ¢ Netherlands

D o: \ ¢ ¢ ¢

'" ------------o---o- -o-o-- f;ii Qr-il-ci!Jt ~,..;,-l-~~~/ -~---1>\).-----------Chad : !If : ~, ~ Brazil \I~-~

D D ' or I /A Argentina ll. United D D D '-a ,,,.. States 0 Egypt D D __ , : Japan

D D D '\. D D :ll. D 0 I

/ DO ?D D: India / 0 D ~ll.

Morocc Jordan P., 1 Kuwait

oo /~ : / D Turkey United 4mb

Syrus ? Emirate:

Saudi Arabia 1

80

70

60

40

~Sudan 30

20 I

20 30 40 50 60 70

Source: Third Billion Index (Booz & Company); data from World Econorni c Forum and Economist Intelligence Unit

Fig: Five Country Clusters, Based on Performance in Economically Empowering Women

In a research conducted by Booz & Co. on Women Entrepreneurship in 128 countries the

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62 AdNJQ\lan

result shows:

Argentina 3~ "On the Path to Success"

Bmzil 4~ "On the Path to Success"

China ss• "Forging Their Own Padl"

Gemumy s• "On the Path to Success"

India use "At the Starting Gate"

11aly 33""' "On the Path to Success"

Japan 43111 •'Taking the Right Steps ..

SoWh Africa 3~ "On the Path to Success ..

Tanzania 8~ "At the Starting Gate"

United States 3ot' "On the Path to Success"

The research shows that economic pat1icipation of women is maximum in North America and lowest in Latin America. InAsia it is fairly low as compared to Buropean Countries.

1. Economic Parddoatlon 6.0 ----,

5.0 r--

4 0 i-r--

3.0 1- r-- 1-

2.0 ·I- -- 1-

t.O i- !-----;

00 l .;~~t in ~rr01111 nc.a f•1IICICJ .. f;r~f( As1"

Alr'lnA

The economic opportunity available for women entrepreneurs is maximum in European Countries and low for Asian countries.

2. Economle Opportanlty 60

5 .0

r--r-- J -

I -

d .O

3 .0

2 .0

1.0 -

0 .0 M lddtc E a.z.t & A!iiu

Alu (;:SI

- .-- .---

--

-Ea-::;tt:~tl

Et.r~;.~

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The educational attainment for women is lowest in Africa and maximum in Eastern Europe resultins is maximlDD women capable for starting their own business.

3. Educatiooal AUaimneD.t !S.U

G.O ,..----,..----r- - - 1-4.0

~

- r-- - I--

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:rv. The Indian Woman

A. PosilionOflmlilzn Womm

63

The Indian woman has never given a chance to prove that they lag behind anyone despite that the women are 1reated as second citizen of the country. According to 20 ll census, the sex ratio in India is 1 female /1.08 males and the literacy rate oflndia as per the Provisional Population Totals of Census 2011 is 74.04. Male Literacy Rate is 82.14 which is higher than the female literacy rate of 65.46. It is significant to note that the gap in literacy rate among males and females has reduced to 16.68 in the country. The progress towards gender equality is slow and is partly due to the failure to attach money to policy commitments. The data shows that there is considerable change in the position of women in Indian society. Thble below indicates demographics, health and family welfare, literacy and employment etc of Indian society.

Table 3: Progreu of Indio Women, 2008

Development Indieaton WomeD Men Total WomeD Men Total 1. Demography

i) Population 264.1 284.0 548.1 495.7 531.2 1027.1 (in million in 1971 & 2001)

ii) Decennial Growth (1971 & 24.9 24.4 24.6 21.7 20.9 21.34 2001)

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2. Vital Statistics

i) Sex Ratio (1971 & 2001) 930 - - 933 - -

ii) Expectation of Life at Birth 50.2 50.5 50.9 66.91 63.87 -(1971 & 2001-06)

iii) Mean Age at Marriage (1971 17.2 22.4 - 19.3 23.9 -& 1991)

3. Health and Family Welfare

i) Birth Rate (1971 & 2008) - - 36.9 - - 22.8

ii) Death Rate (1970 & 2008) 15.6 15.8 15.7 6.8 8.0 7.4

iii) Infant Mortality Rate (1978 & 131 123 127 55 52 53 2008) Per 1000 live births

iv) Child Death Rate (2007) - - - 16.9 15.2 16.0 (0-4 years) (2007) (5-14 years) - - - 1.2 1.1 1.2

v) Maternal Mortality Rate 468 - - 254 - -(1980 & 2006)

4. Literacy and Education

i) Literacy Rates ( 1971 & 2001) 7.9 24.9 16.7 54.28 75.96 65.38

Gross Enrolment Ratio (1990-91 & 2006-07) (%)

Classes 1-V 85.5 113.9 100.1 107.8 114.4 111.2

Classes I-VIII - - - 45.3 46.6 46.0

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5. Work and Employment

i) Work Participation Rate 14.2 52.8 34.3 25.68 51.93 39.26

(1971 & 2001) (%)

ii) Organized Sector 19.3 155.6 174.9 51.21 (19%) 218.72 269.93

(No. in lakhs in 1971 & 2006 (11%)

iii) Public Sector 8.6 (8%) 98.7 107.3 30.03

151.85 181.88 (No. in lakhs in 1971 & 2006 (16.51%)

6. Decision Making

i) Administrative

lAS (2002 & 2006) 535

4624 5159 571(11.9% 4219 4790 (10.4%)

IPS (2005 & 2006) 142

3056 3198 150 (4.7%) 3059 3209 (4.4%)

ii) Political

PRis (No. in lakhs in 1997 & 8.14 17.84 25.98 10.38 (36.83 17.79 28.18

2009) (31.3%)

Legislative Assemblies 141 2632 2773 229 (5.6%) 3838 4067

(No. in 1985 & 2000) (5.1%)

Parliament (No. in 1989 & ~7 (61%) 721 768 80 (10.12%) 710 790

2009)

Notes:

@Refers to 1995 in respect of only 9 States viz. Gujarat, Haryana, Kerala, Madhya Pradesh, Punjab,

Rajasthan, Tripura and West Bengal. Figure in parentheses indicate the percentage in the total and

year of the data in respective columns. Data from Planning Commission. India, Ministry of Human

Resource Development, Department ofWomen and Child Development. (200 1 ).

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Source:

Working Group on Empowerment of Women: Tenth Plan (2002-07): Report. New Delhi. p. 43.

India, Ministry of Human Resource Development, Department of School Education and Literacy.

(2009). Annual Report 2008-09. New Delhi. p. 307-08,317-18. India, Registrar General. (2008).

Sample Registration System: Statistical Report 2007. New Delhi. p. 83-84. India, Registrar

General. (2009). Sample Registration System Bulletin, October 2008. New Delhi. p. 1-5.

B. Contribution of Indian Woman Entrepreneur towards Indian Economy

The performance of the Indian economy since the later part of 1990s marks a significant departure from that of earlier periods in terms ofGDP growth. This is coupled with a distinct demographic advantage arising due to the fast-changing age distribution of population in the country (MoL&E, 2010). After the slowdown in growth in 2008-09, Indian economy has experienced a robust and broad-based growth of8.4 per cent in 2009-10, mainly driven by a turnaround in industrial output, and continued resilience of service sector. Over past few years, India has moved to a higher growth phase of 8 to 9.5 per cent, and the dip in growth in 2008-09 is viewed to be a minor slump in the Indian economic growth story.

Overall annual growth rate in GDP between 1999-2000 and 2004-05 was about 5.99 percent. In the case of contribution ofwomen, the growth rate was lower at 5.61 per cent as against 6.1 per cent in the case of males. While the growth rate of GDP in formal sector was about 7.6 per cent, it was only 4.5 per cent in the informal sector. GDP contribution of females in formal sector, however, recorded a higher growth rate of 9.2 per cent.

Apart from women workers, Indian women-entrepreneurs have been making a considerable impact in almost all the segments of economy which is more than 25% of all kinds of businesses. In India "Entrepreneurship" is very limited amongst women especially in the formal sector, which is less than 5% of all the business.

Table 4: Women Work Participation

Country Percentage India (1970-1971) 14.2

India (1980-1981) 19.7

India (1990-1991) 22.3

India (2010-2011) 31.6

USA 45

UK 43

Canada 42

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Indonesia 40

France 38 Sri Lanka 35 Brazil 35

Source: Centre for Monitoring Indian Economy Report, 2011

Table 5: Women Entrepreneurship in India

States No. of Units Registered No. of Women Entrepreneurs Percentage

Tami1Nadu 9618 2930 30.36 Uttar Pradesh 7980 3180 39.84 Kera1a 5487 2135 38.91 Punjab 4791 1618 33.77 Maharastra 4339 1394 32.12 Gujrat 3872 1538 39.72 Karnatka 3822 1026 26.84 Madhya Pradesh 2967 842 28.38 Bihar 7344 1123 15.04 Other States & UTS 14576 4185 28.71 Total 64,796 19,971 32.82

Source: Centre for Monitoring Indian Economy Report 2011

C. Problems for Indian Women

Despite much economic advancement since liberalization began, role of women in Indian economy still lags well behind that of advanced economies (e.g., Dunlop and Velkoff 1999, Mammen and Paxson 2000, Ghani 2010, World Bank 2011 ). Cross-country data from the World Bank Entrepreneurship Snapshots find that India's rate of entrepreneurship rate is lower than its stage of development would suggest; similar comparisons also highlight that India's gender ratio is lower than its peers. This dual under-performance has cultural and economics antecedents, but it is starting to change.

The global survey called the Third Billion Index shows on its scorecard the depleted position of women in the country which is demanding a change for good. India gets placed at a dismal 115 on a recent global survey on women empowerment out of 128 countries surveyed. India needs to make serious considerations to scale up the meter by employing measures to empower women and establish a world standard in equality among the sexes.

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This study shows that the position of women work participation as well as women entrepreneurship both is low in India in comparison to selected countries of the world. Women work participation in India is 31.6 per cent where as in USA it is 45, UK 43, Canada 42, France 3 8, Indonesia 40, Sri Lanka and Brazil both 3 5 per cent.

The report prepared by the international consulting and management firm Booz & Company ranked India on various parameters like access to work policy, entrepreneurial support, advancement, and equal pay. It is true that women are sophisticated to play leading parts in the global economy in the future; even then they are not given the required consideration by government's decision makers and business leaders in many countries.

This situation is seen as a missed opportunity for large number of women all over the world which can amount to a great number of workforces just by employing them. As for India, with the second largest population in the world, it creates just 14 percent of world skill pool. With 5.5 million Indian women embarking into the professional world every year, fully fledged to succeed and climb corporate ladders, the trend seems positive.

The tradition, customs, socio cultural values, ethics, motherhood subordinates to sibling husband and men, physically weak, hard work areas, feeling of insecurity, cannot be tough etc are some peculiar problems that Indian women are coming across while they jump into entrepreneurship.

V. Major Findings

Independent of the way different studies have been conducted, women entrepreneurs are found to have an important impact on the economy, both in their ability to create jobs for themselves and to create jobs for others. Although the actual economic impact in most countries has not been assessed, women entrepreneurs have an important impact on the economy.

1. In all countries women still represent a minority of those that start new firms, are selfemployed, or are small business owner-managers. Obviously, this economic resource, if not untapped, has not been successfully explored yet.

2. Specific obstacles to women's entrepreneurship are: type of education, lack of role models in entrepreneurship, gendering of entrepreneurship, weak social status, competing demands on time and access to finance.

3. Women's entrepreneurship must be examined both at the individual level (i.e. the choice ofbecoming self-employed) and at the firm level (the performance of women owned and managed firms) in order to fully understand the differences between men's and

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women's entrepreneurship.

4. Women's entrepreneurship is dependent on both demand side (political and institutional framework, family policy and market sources) and supply side factors (the availability of suitable individuals to occupy entrepreneurial roles).

5. In addition, women's entrepreneurship depends on both, situation of women in society and role of entrepreneurship in that same society. Both the factors that affect gender system and factors that affect entrepreneurship in society are involved.

6. In order to provide accurate statistics on women's entrepreneurship, a number of possible method biases need to be controlled.

VI. Recommendations

1. Better Support System to Empower Women

Government and business leaders need a better understanding of women as employees, producers, and business owners and strengthen the impact of their contribution through improved measures like, infrastructure improvements (such as safe roads for travel to work), the removal oflegal restrictions on female participation in the workforce, more cultural support for female leadership, or more inclusive approaches to risk and credit.

2. Ensure Proper Child Care and Equal Treatment

Increase the ability of women to participate in the labor force by ensuring the availability of affordable child care and equal treatment in the work place.

3. Listen to Voice ofWomen Entrepreneurs

The creation of government offices of women's business ownership is one way to facilitate this. Such offices could have programme responsibilities such as providing women's business centres, organizing information seminars and meetings and/or providing web-based information to those wanting to start and grow a business.

4. Incorporate Women's Entrepreneurial Dimension in Formation Policies

This can be done by ensuring that the impact on women's entrepreneurship is taken into account at the design stage.

5. Promote Development ofWomen Entrepreneur Networks

These are major sources of knowledge about women's entrepreneurship and valuable tools for its development and promotion. Co-operation and partnerships between national and international networks can facilitate entrepreneurial endeavours by women

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in a global economy.

6. Periodically Evaluate Impact Policies on Women-owned Businesses

The objective should be, to identify ways to improve the effectiveness of policies and measure the impact on women entrepreneurs.

7. Ensure that Women Entrepreneurs are not Hampered by Discriminatory Laws

Although women represent 40-50% of businesses in developing countries; World Bank/IFC's doing business project has identified several legal and regulatory barriers facing women in terms of working timings, loans, their credibility etc.

8. Help Women-owned Companies, Scale Their Businesses by Meeting their Distinctive Needs

These needs include lack of access to capital and business networks. While women own about 30% of US businesses, only about 5% of all equity capital investments in the US go to businesses headed by women and just 3% get investments from venture capital, according to Babson College research.

9. Improve Women'sAccess to Global Supply Chain

At present, global spending on supplier diversity is largely un-documented. According to researches, women entrepreneurs' are largely ignored in global supply chain.

VII. Conclusion

Women empowerment is one of the momentous issues of contemporary development policies in developing countries. Data from World Bank, World Economic Forum and other organizations demonstrates that, women-owned businesses can be the tipping point for a global economic comeback. Giving women the chance to become financially independent and make the most of their talents is the key to higher living standards and stronger economies. With the global economy still struggling through a slow and spotty recovery, it is in everyone's interest to help women make the most of their potential. This is truer today, than ever before. Despite the admirable efforts of these women-and millions like them in rich and poor countries around the world, they need support systems to succeed. Governments and corporations will need to step in with smarter policies that can remove social, cultural, and professional constraints on women and foster greater economic opportunities.

At the end, it is concluded that women empowerment which is declared as Millennium Development Goal by UNDP, could be achieved only when, all concerned bodies will work

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in cooperation and women's capabilities and their contributions are applied in full potential for the economic and potential development of entire society and thus ensuring sustainable development.

References

[ 1] Aid in Support ofWomen's Economic Empowerment," OECD-DAC, January 2011.

[2] Annual Report of the UN Economic and Social Commission for Asia and the Pacific (ESCAP), 2007.

[3] Batliwala, S. (1994). The meaning ofWomen's Empowerment: New Concepts from Action. Pp.127-138 in Population Policies Reconsidered: Health, Empowerment and Rights.

[4] DFID (2007). Gender Equality Action Plan 2007-2009 making faster PDFID (2007). Gender Equality Action Plan 2007-2009 making faster Progress to Gender Equality.ADFIDPracticePaper, UK.

[ 5] ILO, 'Global Employment Trends for Women', 2009.

[ 6] Interventions, and Policy. Asian Development Review, 17, 96-131.

[7] Kabeer, Naila (1999). Resources, Agency, Achievements: Reflections on the Measurement of Women's Empowerment. Development and Change, 30,435-464.

[8] Kishore, S. and Gupta, K. (2004). Women's Empowerment in India and Its States: Evidence from the NFHS, Economics and Political Weekly

[9] Klasen, S. (2006). UNDP's Gender-related Measures: Some Conceptual Problems and Possible Solutions, Journal ofHuman Development, 7 (2), 243-27 4.

[10] Rajagopala Nair and Mohan P. Philip, "Entrepreneurial Motivation in Kerala," Enchanting Kerala, http:/ I enchantingkerala.org/kerala-articles/ entrepreneurialmotivation-in-kerala.php.

[11] Report on the Gender Initiative: Gender Equality in Education, Employment and Entrepreneurship," OECD, May2011,p. 34.

[12] Sylvia Ann Hewlett et al., "The Battle for Female Talent in India," Center for WorkLife Policy, 2010.

[13] United Nations Development Programmed (UNDP) (1995). Human Development Report 1995: Gender and Development. New York and Oxford: Oxford University Press.

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[14] United Nations Development Programmed (UNDP) (1998). Human Development Report 1998: Consumption for Human Development. New York and Oxford: Oxford University Press.

[15] World Bank (2001). Engendering Development: Through Gender Equality in Rights, Resources, and Voice, New York: Oxford University Press.

[ 16] World Bank, 'World Bank calls for expanding economic opportunities for women as global economic crisis continues', press release 29 January 2009.

[17] Women's Economic Empowerment: Issues Paper," DAC Network on Gender Equality(GENDERNET),April2011,p.26.

[ 18] World Economic Forum, "Women's Empowerment: Measuring the Global Gender Gap", 2005

[ 19] UNICEF, 'Women and Children: The Double Dividend of Gender Equality', 2007.

*****

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Shop & Hop: Virtually an Emerging Landscape of Retail and Its Impact on Economy

Abhiruchi Pandey Lecturer, Sri Ramswaroop Memorial Group of Professional Colleges, Lucknow

JayaJain Sr. Lecturer, Sri Ramswaroop Memorial Group of Professional Colleges, Lucknow,

Abstract

E-commerce is a way of trading in goods and services through the electronic medium. In simple words, electronic commerce means buying and selling of goods and services over the World Wide Web. The global financial crisis has seen retailer's turn towards e-commerce. Retailers who are looking to maximise overheads and also improve their profit margins and consumers who are lookingfor greater value and convenience, continue to drive the growth in online shopping. In this e-age, online shopping is a trend which is sweeping away the traditional brick-and-mortar retailers and the shopping trolleys of shopping malls. In today's scenario even the big players or big brands are trying to promote and sell their products online.

Online shopping is a form of electronic commerce (e-commerce) whereby consumers, directly purchase goods or services from a marketer, over the internet without any mediator. It can also be called as, the internet market place or the virtual shopping ore-shopping.

The online shopping is a boon to the new generation, as it saves a lot of money by the way of fuel and parking. Moreover, it is said that internet shopping is growing in a big way in India and at present accounts toRs. 2000 crore business, and it is said that by 2015, it will reach to Rs. 7000 crore. There was a time when mall culture was an innovation in the market where people could get all the products under a single roof But the recent trend of online shopping gives the ease to consumer to shop around the world by just a click of his mouse. It is a makeover ofteleshopping.

This paper focuses on the growing trend of digital marketing in the form of online shopping internationally.

Key Words: Online shopping, e-commerce, traditional shopping, drivers, challenges, retailing,

internet.

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74

I. Introduction

E-commerce is a domain conducting business on Internet. It represents the digital age. Ecommerce stands for electronic commerce and is associated with buying and selling of goods through the electronic medium, i.e., internet, phone, mobile etc.

II. Types ofE-Commerce Models

1. Business to Consumer (B2C): This is the most common model of e-commerce. In this model, online businesses sell to individual consumers. The business houses need to have an e-commerce website which will list all their product categories with detailed information about products through photographs and animation.

2. Business to Business (B2B): It is the largest form of e-commerce. In this form, buyers and sellers both are business entities and do not involve any individual consumer. It is like the manufacturing and supplying of goods to a retailer or a wholesaler.

3. Consumer to Consumer (C2C): Through this model, a consumer can sell his used items to rest of the consumers which can be done through auction or bidding. e.g. eBay.com.

4. M-Commerce: M-commerce is done through mobile phones. It is commonly used by fmancial institutions due to which it is also known as mobile banking. The consumer can also use M-Commerce model for paying their utility bills, insurance premiums, telephone bills, income taxes etc.

Table: B2C E-Commerce Sales* in Select Countries in Asia-Pacific Region, 2006-2011 (billions)

2006 2007 2008 2009 2010 2011 Australia $ 9.5 $ 13.6 $20.4 $26.4 $28.7 $ 31.1 China** $2.4 $ 3.8 $6.4 $ 11.1 $ 16.9 $24.1 India $ 0.8 $ 1.2 $ 1.9 $ 2.8 $4.1 $ 5.6 Japan $36.8 $43.7 $56.6 $69.9 $80.0 $90.0 South Korea $ 9.6 $ 10.9 $12.4 $ 14.0 $ 15.9 $17.9 Asia-Pacific $59.1 $73.3 $97.7 $ 124.1 $ 145.5 $ 168.7

Note: converted at average annual exchange rates (projected for future years); total B2C e-commerce sales include all purchases made on a retail website, regardless of device used to complete the transaction; *includes online travel, event ticket and digital download sales; ** expludes Hong Kong Source: eMarketer, January 2008

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Shop & Hop: Virtually an Emerging Landscape of Retail & Its Impact on Economy

Fig: Distribution of 82C E-Commerce Sales* in Select Countries in Asia-Pacific Region, 2006-2011 (o/o of total)

2006

China India 4% lo/o

2011

Australia SouthKorea 18%

16,...

75

Note: Converted at average annual exchange rates(projected for future years); total B2C e-commerce sales include all purchases made on a retail website, regardless of device used to complete the transaction;

*includes online travel, event ticket and digital download sales; **excludes Hong Kong

III. E-Commerce Mechanics -A Process Innovation in Retailing Dawson (200 1) identified a new commerce, comprised of an innovative force, laden with information enabling companies to speed up activities and increase their scope.

Sl. No. Characteristics of New Commerce

1. New commerce companies operate through multiple marketing channels.

2. Channel structures in new commerce are intermediated in new ways.

3. New commerce retailers operate internationally.

4. New commerce uses new forms of non price competition.

5. In new commerce. organisational scale and scope economies become more important than establishment scale and scope economies.

6. New commerce companies do not subscribe to a traditional view of difference between goods and services.

7. New commerce companies are using the convergence of information and communications technologies as a primary source of innovation.

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8. New managerial ideas support innovation process.

9. Customer loyalty is a central concept in new commerce.

10. Public sector policies relate to old commerce not new commerce.

Source: Adapted from Dawson (2001)

IV. Benefits of E-Commerce

Growing awareness among the business community has given rise to various opportunities in e-commerce. The increased cost efficient internet connections and PCs have resulted in adaptation of net commerce among the consumers. Consumers now get benefited of innovations by:

1. Easy accessibility to a fast growing online community.

2. Unlimited shelf space for products and services.

3. Timeless and limitless reach.

4. Lowest operational cost for the national and international

brands.

V. Digital Marketing

Digital marketing is a way of advertising and marketing a product through digital sources like internet, television, radio and mobile phones. It is similar to the traditional marketing such as direct marketing but in a digital fashion.

There are two forms of digital marketing: Push and Pull. Through Pull digital marketing, the consumer sees the content by searching the web while in push digital marketing, the content is sent to the customer via e-mail. Examples of Pull Digital marketing are websites and blogs, streaming media. Examples of Push Digital marketing are email, text messages and web feeds.

VI. Online Retailing

Online retailing covers a broad spectrum of business activities; e.g. banking, retailing, entertainment, information portals and auction houses. In most instances, exchanges occur between an online retailer and an online consumer. In the case of auction sites, such as e Bay, exchanges may occur between individual bidders with the business site acting as an

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Shop & Hop: Virtually an Emerging Landscape of Retail & Its Impact on Economy 77

intermediary. Online retailing differs from traditional direct retailing in three ways:

1. Huge data creation and collection,

2. Information and communication is global in scope,

3. Centralized control mechanisms are absent (Brown and Muchira, 2004, p.63).

VII. Online Shopping

Online shopping, is the buying and selling of product or services over the internet, instead of going to traditional brick and mortar store. Amazon. com, which was founded by JeffBezos, was the first online bookstore which made history.

The term online shop can be substituted with the words like e-shop, e-store, internet shop, web shop, web store, online store or virtual store. The process of online shopping is a type of B2C online shopping.

VIII. History of Online Shopping

The onset of online shopping started with the introduction of World Wide Web server and browser in 1990 by Tim Berners-Lee. It got commercialised in 1991. In 1994, a German company, Inter shop introduced its first online shopping system. In 1995, Amazon emerged as an online shopping portal followed by eBay in 1996.

IX. Shopping Cart System in Online Shopping

A customer can find a product of his interest by visiting the website of the retailer by searching from the various alternatives available with the help of shopping search engine.

The virtual shopping cart system is similar to the physical shopping trolley system in a conventional store. The online retailers, allows the customer to accumulate multiple items and to adjust quantities. Then the process of"checkout" follows in which the payment and delivery information is collected by the retailer. The customers can have a permanent online account for the sake of convenience as the information will be entered once and can be used in future. After the transaction is completed, the customer receives a confirmation e-mail.

X. Mode of Payment

Credit cards are the most commonly used mode of payment by the online shoppers. Alternatively, they can also pay by:

1. Billing to mobile phones and landlines

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2. Cash on delivery

3. Cheque

4. Debit cards

5. Direct debit in some countries

6. E-money in some cases

7. Gift cards

8. Postal money orders

XI. Mode of Product Delivery

After the transaction is complete, the question arises is how to deliver the product. There are several modes of delivery such as:

1. Downloading: This method is often used for digital media products such as software, . . . music, movies, or Images.

2. Drop Shipping: The order is passed on to the manufacturer or third party distributor, who ships the item directly to the consumer, by passing the retailer's physical location to save time, money, and space.

3. In Store Pickup: The customer orders online, fmds a local store using locator software and picks the product up at the closet store. This is the method often used in the bricks and clicks business model.

4. Printing Out: provision of a code for, or emailing of such items as admission tickets and scrip (e.g. gift certificates and coupons). The tickets, codes, or coupons may be redeemed at the appropriate physical or online premises and their content reviewed to verify their eligibility (e.g. assurances that the right of admission or use is redeemed at the correct time and place, for the correct amount and for the correct number of uses).

5. Shipping: The product is shipped to the customer's address or that of a customerdesignated third party.

6. Will Call, COBO (in Care Of Box Office): or "at the door" pick up. The patron picks up pre-purchased tickets for an event, such as plays, sporting events, or concert either just before the event or in advance. With the onset of the Internet and e-commerce sites, which allow customers to buy tickets online, the popularity of such services has increased.

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XII. Factors Affecting the Online/Offline Shopping Preferences

Conceptual model ofthe role of product and consumer characteristics in online/offline shopping preferences.

Attribute Values

,.---

....... Perception of

--" Utility of

--" Consumer Product shopping Shopping Characteristics --v

Characteristics --v

online/offiine --v

Preferences

~

Attributes Weights

XIII. Type of Products which are Most Likely Preferred to be Purchased Online/Offline

79

Several studies have shown that "high touch" products that consumers feel they need to touch, smell or try on are those that require an offline presence at least at the final purchase stage (Chiang and Dholskia 2003;Lynch, Kent, and Srinivasan 2001). Levin et al. (2003) showed that the special importance of being able to personally handle and inspect the product before purchasing underlies the preference for traditional brick-and-mortar shopping methods for products like clothing, sporting goods, and health and grooming products. At the other extreme, "low touch" products like airline tickets and computer software, generally favour online services because of the special importance placed on shopping quickly. In between this spectrum, products like books and CDs where some attributes like large selection play important role, are better delivered online while other important attributes like personalised service are better delivered "virtually" offline or by providing surrogate experiences through feedback provided by others.

Using a classification scheme similar to the high touch-low touch distinction, Girard, Silverblatt, and Korgaonkar (2002) adopted the Ford, Smith, and Sway (1998) typology of search, experience, and credence products to examine the influence of product class on

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preference for shopping on the Internet. Girard et al. found that preference for shopping online was particularly strong for search products like books and PCs where most of the key attributes can be determined online. By contrast, Alba et al. (1997) point to the greater reliability of experimental information coming from in-store visits. However, Klein (1998) argues that the multimedia capabilities of the Web can tum experience goods into search goods by substituting in store visits with virtual encounters.

Related to the conclusions of Klein (1998) and Girard et al. (2002), Peterson and Merino (2003) describe the Internet as replacing many of the traditional search methods such as word-of -mouth and hands-on-experience. Consequently, consumers may focus less on brand information and more on the attributes of their product searching goal.

XIV. Types of Consumers who are most likely to Purchase Online & Offline

In a study, while sampling a nationwide panel of consumers, who had online capabilities at home, Swinyard and Smith (2003) compared those who did not make purchases online during the preceding holiday shopping season. They found that online shoppers were younger, wealthier, better educated, more computer literate, more likely to spend time on computer, more likely to find online shopping to be easy and entertaining, and less fearful about financial loss resulting from online transactions. Bellman, Lohse, and Johnson (1999) also found Internet shoppers to younger, more educated and wealthier, to have a more "wired lifestyle", and also having more time-constrains than non-Internet shoppers. Childers et al. (2001) like Klein (1998), found perceived substitutability of the electronic environment, for personally experiencing products, to be an important predictor of online shopping attitudes.

XV. Comparison of Online and Offline Shopping Across Stages

Paralleling models of consumer behaviour in more traditional environments. Haubl and Trifts (2000) suggest that potential online consumers use a two-stage process of screening products to identify a promising subset and then comparing these products to make a purchase decision. Perceived risk of online purchasing in the form of concern about product returns and refunds and the security of transactions on the Internet can deter online shopping at the final stage (Levin et al., 2005). This is a particularly important issue in contemporary marketing practice because those consumers who switch modes between the "search" stage and the "fmal purchase" stage are utilising the resources of one shopping mode while providing profit to the other mode.

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XVI. Shopping Trolley vs. Shopping Cart

In the past the only mode of shopping available, was a nearby shopping store, where we had the opportunity to see the product before purchasing.

The internet revolution has changed the way in which we spend our money. Through online shopping, we have a wide market to visit just by clicking the mouse of our PC or a laptop. Traditional shopping limits our reach, as all the products are not available in a single store. In contrast to this, the online shopping helps the shopper to shop beyond the geographical boundaries ofthe country.

The traditional shopping restricts the payment mode to just cash payments, which makes the shopper conscious of his pocket capacity. Whereas the online shopping has opened the doorways of various modes of payment thereby allowing the shopper to shop with the help of even plastic money (credit cards, debit cards, shopping cards, e-money, gift vouchers etc.).

There are instances where traditional shopping has made itself superior than online shopping. When a shopper has to shop for a product whose aesthetics play an important criteria of evaluation and selection, online shopping lags behind traditional shopping in which the shopper can touch, feel and smell the product.

The immediate requirements of a consumer can be addressed with the help of traditional shopping practices. For instance, the top-up needs in the form of grocery in the kitchen, milk for the baby, life saving medicines, fresh vegetables etc.

XVII. Advantages of Online Shopping

Advantages

To Consumers To Retailers ToE-Retailers

To Consumers

1. Convenience

2. Better Information

3. Price and Selection

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4. Ability to shop 24x7

5. Wider product availability

6. Customised and personalised information and buying options

7. Easy comparison shopping

To Retailers

1. Location is unimportant

2. Saves on wages and premises costs

3. Reaches larger audience

4. Accepts orders, 24-hours a day

ToE-Retailers

1. Global reach

2. Better customer service

3. Low capital cost

4. Mass customization

5. More value added services

XVIII. Disadvantages of Online Shopping

Disadvantages

To Consumers To Retailers

For Consumers

1. Credit card frauds and security concerns

2. Lackofinteraction

3. Can't see or feel the merchandise

ToE-Retailers

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4. Don't know how (Unawareness)

5. Premium charged for delivery

6. Difficulties with returning goods (Refund/ Exchange)

For Retailers

1. May lack know-how and technology

2. Substantial set-up, investment and ongoing costs

3. Complex logistics of fulfilment

4. E-selling less powerful than face-to-face

5. Uptake slow for goods selected by taste or smell

6. Legal problems

7. Less role for traditional high street retail expertise

8. After-sales care difficulties

ForE-Retailers

83

1. The site must be available and operational24 hours a day. This may mean employing a night shift of customer service operators or maintenance staff.

2. The internet market is still only small in comparison to the traditional market.

3. The retailer must be vigilant maintaining the site. Regularly updating of offers, prices, specials and products is required. Checking for errors, working links and prompt answering is required.

XIX. Online Shopping in India

Indian e-commerce space percentage is getting higher as more and more online retailers enter the market. The internet has been around in India since quite some time now. Although this level of entry in the e-commerce market is good from a long term perspective, the challenge is that most entrepreneurs don't have the resources or capital, to wait for years before they can get profits.

Major Indian portal sites have also shifted towards e-commerce instead of depending on advertising revenue. The web communities built around these portal sites with content have been effectively targeted to sell everything from event and movie tickets to the computers and grocery. Online shopping is truly catching on in India, traditional brick and mortar stores are also getting the hang of doing business online. The trends demonstrate that

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traditional stores will keep on doing sufficient business while the online stores increase their virtual presence on the internet.

XX. Online Shopping-TheN ext Big Thing in India

Online retailing has been a distant concept in India, except in the travel and ticketing sector. The Future Group has been an early mover while others such as Reliance Retail, RPG Cell com, and Tata Woolworths are gearing up to launch their own online shopping portals.

Importantly, smaller players such as Vishal Retail, Subhiksha and Spinach too are seriously looking ate-tailing as a future revenue generator. Says, R Subramaniun, MD, Subhiksha, "We are investing Rs 12 crore into this venture and expect 3-4% of total business coming from online. We'll deliver across 400 towns we are present in."

The challenges in replicating the success of physical stores online are very different, and retailers are eyeing a different set of value adds and experiences to hook customers. Some are planning to introduce virtual shopping, where the customer can get a feel of moving around in a mall, and can click on the items he/she wants to buy.

Online retail is also expected to benefit the credit cards business. According to credit card companies, retail has been instrumental in boosting average consumer spending per card at stores. According to an AT Kearney report, credit card transaction value in organised retail has been growing at 35% in India.

XXI. Top Online Retailers in India

For more than a decade now, online merchandisers have increasingly grown their sales activities to the point they now have reached. The Indian retail industry is valued at $270 billion, with organized retail cornering 4.5%. The organized pie is expected to see a growth at a CAGR of37% (India Retail Report 2007) which is growing at an average rate of 4% p.a (as per 2010 estimates).

Having the growing shopping mall trend in India, more and more net clever people are shifting towards online shopping. And if comScore report is to be believed then there is exceptional rise in the numbers of online retail visitors in India this year. Latest comScore data figures that nearly 60 per cent of online users in India visited a retail site in November 2011 and the number of online shoppers increasing 18 per cent in the last year.

Table: List of Top Online Retailers 2011

Total Retail Audience 46390 100.00%

Total Retail Sites 27171 58.57%

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Top 10 Online Retailers Unique Website Visitors %age Amazon Sites 6805 14.67%

Apple.com 3450 7.44% Samsung Group 2759 5.95% Flip kart. com 2675 5.77% Homeshop 18.com 2286 4.93% Naaptol.com 2145 4.62%

Bookmyshow.com 2125 4.58% Myntra.com 2110 4.55% Priceindia.com 2047 4.41%

Alibaba.com 1973 4.25%

XXII. Conclusion

Many countries in Asia are taking advantage of e-commerce through the opening of economies, which is essential for promoting competition and diffusion of internet technologies. With the rapid growth of internet, e-commerce is set to play an important role in the 21st century, the new opportunities that will be thrown open, will be accessible to both large corporations and small companies.

A multitude of strategies may be available to retail and shopping mall managers competing in the new "Internet shopping" era. Two strategic alternatives include "brick-and-mortar" retailers competing directly with internet retailers by offering "Internet shopping-type benefits" and combining forces with internet retailers in a strategist effort to serve consumers from all shopper categories.

References

[1] Armstrong, A., Hagel, J., 1996. The real value of on-line communities, Harvard Business Review 7 4 (3 ), 134--141.

[2] Baker Michael, "Multi Channel Retailing", ICSC Research Quarterlyv.6, no.3 (Fall 1999).

[3] Kathryn M. Kimery Third-Party Assurances: "Mapping the Road to Trust in£Retailing", Central Missouri State University.

[ 4] Tractinsky Noam, Ben-Gurion "A Study on Web-Store Aesthetics in E- Retailing: A Conceptual Framework and Some Theoretical Implications", by University of the

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Negev, Israel & OdedLowengart, Ben-Gurion University ofthe Negev, Israel

[ 5] http:/ /www.leapfrogg.co. uk/what-we-do/

[ 6] http:/ /www.dmnews.com/can-digital-marketing-save-retail/article/123 849/

[7] http:/ /en. wikibooks.org/wiki/E-Commerce _and_ E-Business/E

Commerce_ Applications: _Issues_ and_ Prospects.

[8] http:/ /tanmaysblog. wordpress.com/20 11/02/02/ growth-of-e-commerce-anddigital-marketing-in-india

[9] http://www.indianexpress.com/news/digital-marketing-is-just-starting-in-india/702272

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The Influence of Consumer Attitude on Brand Extension Assessment

Rishikesh Padmanabhan Assistant Professor, Manipal Global Education Services, Bangalore

Dr. K. S. Chandrasekar Prof. & Chairman in Mgmt, School of Business Mgmt. & Legal Studies, University of Kerala

Abstract

In this day and age, branding and brand extension are central part of a business and brand extension has become imperative in the growth of an organization. From the past researches, it has been identified that the fit between the core and extended product in any category is the most important and positive factor for brand extension success. Conversely, there are exceptions like ITC limited which was successful, even in far extension such as cigarettes (core product) to apparel, foods, personal care and stationery (extended products). This paper analyzes the influence of effects of consumer attitude (both positive and negative) on the assessment of brand extension extenuating brand belief and gender with special reference to high involvement products.

Key Words: Brand extension, brand assessment, category fit, consumer attitude, influence

I. Introduction

It is evident from the history that branding has been an essential division of marketing products and services (Blois, 2000). Earlier, it used to be considered as a delightful name on product cover, later on, it was understood as a promise for the customers on quality.

Past researches recognize the fact that, consumer attitude always depend on the consumer's awareness or its past association with the parent brand, while assessing a brand extension. Usage of branding as a strategy for enhancing the brand extensions into new product extensions clearly indicate the requirement for understanding customer influence on brand extension evaluation.

Attitude plays an important role, while the consumer records a product extension in his mind which is an essential element for product extension evaluation as per the consumer evaluation studies conducted on mood effects (Howard and Barry 1994: Isen et al. 1978; Miniard, Bhatia, and Sirdeshmukh 1992, Kahn, 1995; Menon and Kahn, 1995). For instance, the consumer will even be willing to accept a varied extension if in a good attitude compared to consumers with negative attitude.

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Even though there have been researches done on consumer attitude on brand extension evaluation, there hasn't been any proper method for analyzing the course of action that influences the consumer. According to Luomala and Laaksonen (2000), positive attitude/ mood stimulates the customer for purchase where they seems to be much sensible while evaluating the brand and on the other hand, the consumers may be either in good or bad mood (unconsciously), where the effect of that would be problematic and the decision becomes more complex.

II. Literature Review

Kotler ( 1991) elucidated brands as highly indispensable and intangible resource of a firm as they stand for the space captured by a firm's goods and services in the mind of the consumer and on the retail shelf space that has been occupied by the same. Brand names always serves the customer in identifying and examining the decision making activity (Birger Wemerfelt,1988). Researches done by Parker and Dawar (1994) signals that the trust of consumer is more on brand as compared to cost or physical appearance.

Consumers repeatedly evaluate products by converting their evaluations ofthe parent brand and the extended one (Boush & Loken, 1991 ).

Companies always can use attitude as an advantage, by effectively utilising advertisement strategies to use "attitude" in favour of them through advertisements and also the components that improve consumer attitude (Gardner, 1985). For example the consumer will always relate a car manufactured by Toyota as a representative of brand Toyota, whereas it will be very less in low involvement products such as sandals etc. (Boush and Loken 1991 ). From the past researches it can be identified that the similarity of the brand is a key influence factor in brand extension evaluation. Broniarczyk and Alba (1994) explain that brand extension evaluation can also be encouraged by brand specific associations apart from the similarity between the core brand and the extended brand.

Researches done by Braon and Miniard, 2002 indicates that the influence of positive consumer attitude is very significant while evaluating a brand. It is observed that there is a positive correlation between the core and the extended brand, where the consumer depends on the core brand for evaluating the extensions which is more likely for products that fall under similar category under the same brand name and the same is less likely for brands under dissimilar category. This study is basically intended to analyze the aspects of correlation between attitude and brand extension evaluation. Consumer decision making becomes important, when it comes to purchase of irregular, luxurious products or services which is more complex and relevant while purchasing high involvement products as far as

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The Influence of Consumer Attitude on Brand Extension Assessment 89

the customer is concerned.

This study is basically intended to analyze the aspects of correlation between attitude and brand extension evaluation for high involvement products.

III. Hypotheses

A. EvaluationofBrandExtension

According to Yeung & Wyer, 2004, consumer while evaluating a brand may not be doing it in detail, but may depend upon the attitude that he had, when he experienced the product for the first time. It depicts the fact that, attitude plays an important role irrespective of the resemblance ofthe extended brand with the parent brand.

Pahl Wostl had done a number of researches on consumer attitude and expresses that gender differences will alter the buying behavior. It is being suggested that, the dimensions of consumer attitude will increase his views of the parent brand similarity with the brand that has been extended. Certain attitudes can impact the consumer evaluation judiciously and similar kind of extensions through the inspiration of perceptions of comparison.

B. Attitude of the customer and influence of communication

Research studies explored the importance of attitude and its impact of consumer buying behavior as recalling a purchase (Stemthal and Lee, 1999). Within this type of research, a number of attitude types will be taken into consideration such as positive attitude, joyful attitude, unhappy attitude and irate attitude and the study restricts its investigation on positive and unhappy attitude.

Positive attitude will always deliver a joyful surrounding and influence the consumer to communicate effectively involved with less thinking in decision making with the brand, whereas an unhappy environment will be challenging and will make it much difficult for the consumer in thinking and decision making. Therefore, it is important to investigate the attitude effect for understanding its impact for further improvement on both these in influencing the decision making of the consumer and the following hypothesis were postulated for the study.

C. Attitude and its effect on Brand Extension

H0: Positive attitude will result in a fair evaluation of distant brand extension only for utilitarian brands (excluding hedonic).

H1: Negative attitude will have an undesirable evaluation for close brand extension only for

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utilitarian brands (excluding hedonic).

H 2 : For females, positive attitude will result in an improvement of brand extension evaluation for distance brand extension, but for men, it can't be meaningful.

H 3: For men, the negative attitude will result in an improvement of brand extension evaluation for close brand extension but for female, it can't be meaningful.

IV. Research Methodology

Experimental study was conducted for this research. Attitude, Brand excellence, brand extension, Brand belief and Gender were taken for the experimental study. The Extensions were distinguished as distant and close extensions. Positive attitude was aimed at distant extensions and unhappy/negative attitude was on close extensions. Brand belief was split up in to utilitarian and hedonic. A total of 100 business management students participated and convenience sampling method was used for the study. The questionnaire was prepared by considering the variables such as attitude, brand excellence, brand belief and brand extension. Familiar and most common products which are known to both male and female (students) were considered for the study. Nokia mobile phones and Titan watches were selected for a preliminary test and put as representation of utilitarian and hedonic brands. It was also checked to explore the respondents understanding level on the similarity ofNokia mobile phones to other possible extensions such as MP3 player, computer, camera and mobile applications. Correspondingly time piece, anklet wallet etc. were chosen to evaluate the resemblance level of watch. The respondents were requested to choose the product categories on the basis of distant and close extensions. Consequently Nokia digital camera (Close extension) and Nokia web applications (distant extension) were formed. Titan time piece (Close extension) and Titan anklet (distant extension) were formed for hedonics. The extension was classified as distant and close extensions wherein terms of close extensions, the gap between the parent and extended brand would be insignificant while in distant extensions, there would be no relation in the product set between the parent and extended brand. Positive attitude was aiming at distant extension and the unhappy/negative attitude was focusing on close extensions. Brand belief was classified in to hedonic and utilitarian and the hypothesis Ho and H1 were formulated accordingly. Similarly Gender was considered as a variable for hypothesis ~and H 3•

The common brands known to both male and female segments were taken into consideration for both hedonic and utilitarian brands. Significance of hypothesis has been tested and represented by "P". The confidence level for the test is 95% and the significance level is 5%. So if the "P" value is less than 5%, then it would be significant. Here in all

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hypotheses, value ofP is less than that and hence it is significant.

V.Findings

To analyze the impact of brand extension acceptance based on attitude, the respondents mood was manipulated as mentioned above in methodology of the study. The results of the experiment on the basis of positive and unhappy (negative) attitude states that there are remarkable difference between both these attitudes, wherein the case of positive attitude MPositive= 4.756 and unhappy attitude Unhappy= 2.153 Cronbach's (alpha) was used to test reliability of the variables such as attitude and brand resemblance. The cronbach's value was between 0.7405 and 0.8429, which shows high reliability as a value above 0.7 is acceptable and it is considered as reliable.

It has also been proved that attitude boosts the assessment of utilitarian brand. On the other hand, it is not noteworthy for hedonic brands (P value= 0.123 ). Hence, the positive attitude will always have positive inclination towards the evaluation of distant brand extension for utilitarian brand and not for hedonic brand. Thus, H 0 is accepted.

As regard to the unhappy attitude (negative), the result depicts that there is significant impact on utilitarian brand with closer extension (PvaJue = 0.228), which explains that unhappy attitude will not have negative effect for a hedonic brand but will have for a utilitarian brand and thus H 1 is accepted.

The positive attitude for men doesn't seemed to be noteworthy on distant extensions, but proved to have a positive effect on brand extension evaluation with P value (PvaJue = 0.029) specifically on variables such as brand attitude and brand resemblance which is the expected steady result and thus H 2 is accepted.

It is always likely that the mood has got different effect on different Gender. As awaited, the unhappy attitude effects were superior in men than women. The brand extension evaluation with (Pvalue = 0.026) on variables such as brand attitude and brand resemblance were steady for women and thus H3 is accepted.

Table 1

N o/o

Cases Valid 100 100.0

Excluded 0 0 .0

Total 100 100.00

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Table 2: List-wise Detention of all Variables in Procedure

Utilitarian Brands Gender

~ I~ Y. ~ Positive Unhappy e

t

e e

e

e

n n n n

PValue 0.123 0.228 0.029 0.026 - -

Attitude - - - - 4.756 2.152

Table 3: Reliability Statistics

Cronbach's Alpha No. of Items 0.8391 4

VI. Conclusion

The outcome of the study proves that even though attitude can influence brand extension evaluation, the processes accountable for these results varies. Precisely when consumers are encouraged to think through the relation between the parent brand and the extended brand, attitude has a circuitous impact on brand extension evaluations especially on high involvement products.

VII. Suggestions and Recommendations

Consumer researches are progressively focusing to understand methods of brand extension evaluation. Consequently efforts have been made to examine the factors that influence "parent brand-extended brand" similarity by putting forth, the possibility of evaluation done for the parent brand would be utilized in evaluating its extensions (Alba & Broniarczyk, 1994; Sood & Zhang, 2002). Similarly the focus of the study was to analyze the importance/influence of attitude and its involvement level in brand extension evaluation. The outcome of the study indicates that effect of attitude on customers while considering brand extension evaluation is very high especially in high involvement products, that is attitude indirectly influences evaluations facilitates the opinion of"parent brand-extended brand" similarity.

Hence, upcoming researches should also investigate the possibility of generalizing these findings into other products and services.

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References

[1] Arthur Cheng-Hsui, C., & Shiou-Huei, C. (2010). The Impact of Consumer Mood on Brand Extension Evaluation. Proceedings for the Northeast Region Decision Sciences Institute (NEDSI), 15-20.

[2] Barone, M. J., Miniard, P. W., & Romeo, J. B. (2000). The Influence of Positive Mood on Brand Extension Evaluations. Journal of Consumer Research, 26( 4 ), 3 86-400.

[3] Kang-Ning, X., & Yu-Tse, L. (2009). Mood Awareness and Brand Extension. Advances in Consumer Research, 36103 7-1038.

[ 4] Martinez, E., & de Chematony, L. (2004). The Effect ofBrand Extension Strategies upon Brand Image. JournalofConsumerMarketing, 21(1), 39-50.

[5] Xie, Y. (2008). Consumer Innovativeness and Consumer Acceptance of Brand Extensions. Journal ofProduct&BrandManagement, 17(4), 235-243.

[ 6] http:/ /www.business-standard.com/article/management/brand-extension-good-or -bad-1120 11600079 l.html.

[7] http://www.thehindubusinessline.com/industry-and-economy/marketing/fmcg-brand extensions-work -better-than-new-launches-nielsen/article414 7062.ece

[8] http:/ /www.ats. ucla.edu/stat/spss/faq/alpha.html

[9] http://www. statisticshowto. com/ articles/how-to-calculate-expected-value-instatistics/

[10 http:/ /books.google.co.in/books?id=5yE_ wuCeukUC&pg=PA68&lpg =PA68&dq=customer+decision+making+on+high+involvement+products&sourc e=bl&ots=a 7Ykh 7 6wPQ&sig=8AbMVDOg 14N d7 eDd 1 XqiaiCsIE&hl=en&sa=X&ei= _ NGVUbT4Ms7KrAf6zYCYDQ&ved=OCFMQ6AEwBA# v=onepage&q=customef'l/o20decision%20making%20on%20high%20involvemen t%20products&f=false

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Repercussion of Junk Food Advertisements on Minds of Children- A Study

Parmeet Kaur Research Scholar, New Delhi Institute of Management, New Delhi.

RituAhuja Research Scholar, AITM, Palwal, Haryana.

Abstract

Junk food is defined as a food that is oflittle nutritional value and high in fat, sugar, salt, and calories. They contain insufficient vitamins, minerals, proteins and amino acids. Junk food is easy to carry, purchase and consume. Generally, a junk food is given a very attractive appearance by adding food additives and colours to enhance flavour, texture, appearance. And such junk food is highly promoted through television (TV) advertisements. Now-a-days TV watching is considered to be normal daily activity for children. Advertisements, especially in children's TV programmes are ofjunk food that is coupled with attractive gifts, toys, games, offers, etc. Children get attracted towards such goods and free offers. TV advertisements affect young children's unhealthy food consumption. The study in this paper indicates that there is a positive attitude of children, towards junk food and there is a strong link between junk food promotions and eating behaviours of children. Based on the results, the paper concludes that, parents are aware of bad effects ofjunk food, but still, they fulfill their child's demand ofjunkfood items.

Key Words: Junk food, television advertisements, attractiveness, pester power.

I. Introduction

Television food advertising has attracted attention, for its potential role in promoting unhealthy eating among children. Today, television advertising is filled with fast food i.e. soft drinks, burgers, pizzas, candies, cereals etc.

Majority of advertisements of food product, are for fast food, cereals, and other foods which are high in fat, sugars, sodium and are low in nutritional value. These advertisements are coupled with attractive gifts, toys, games, offers, etc. Toys like Pokemon, Ben, Chota Bheem are very popular among kids. Such offers have a very long lasting influence over children, which may encourage pester power. Pester power is a child's ability, to affect their parents' purchase decisions.

Food companies such as, McDonald's put their logos, symbols on toys, games and other supplies. They also distribute coupons. McDonald's offers cups, toys and other labelled

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Repercussion of Junk Food Advertisements on Minds of Children -A Study 95

items through its outlets throughout the world. Even Kinder Joy has adopted surprise gift strategy.

Toys like these, convert children into soft-drink consumers and advertisers for these product. Children love such toys and gifts and fast food companies reinforce such desires.

Food companies in order to increase their profits, market share etc. completely ignore the health perspective of children. They make use of all such words which may mislead children and even their parents. Like Nestle Milk bar use the word 'calcium', Sunfeast noodles use Yippee, Complan uses 'complete food', Real juice uses' real', Me Cain uses 'Fresh', 'healthy', Lays uses 'baked' or 'cooked in healthy oil'.

The overall strategy of fast food companies is to establish brand loyalties as early in a consumer's life

as possible. Coca Cola, and Me Donalds, target commercials at young children for the sole reason

that it will probably make them life-long consumers. Junk food is one of the mainstays of food

advertising to children, who form the key market for junk food advertisers.

II. Objectives

Aim ofthe topic is to find the answers specifically aiming at :

1) To what extent does junk food advertisement have an influence over children and on their parents, in buying the product?

2) Extent of attraction among children towards junk food advertisements, which have free offer.

3) To identify catchy tricks of advertisers, that arouses interest among children.

4) Awareness and attitude of parents and children in terms of creating a balance in relation to free gifts offered and the product.

III. Research Methodology

The different heads of research methodology are specified in following sections.

A. Area of Study

The area of study was taken as South Delhi.

B. Questionnaire

Time utilized for filling up each questionnaire, was 10 minutes.

C. Period of Study

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96

PeriodofstudywasAugust2012.

D. Sample Size

Sample Size was 150.

E. ResearchApproach

Adht~alJan

Qualitative approach was used in the study which could describe the underlying motives of human

behaviour. In this approach main area of focus was junk food advertisement and its impact. This

approach includes subjective assessment of attitudes, opinions and behaviour of children and their

parents separately in order to interpret their individual behaviour, reasons and actions and also

analyzing the various factors which motivates them to behave in a particular manner.

E Research Type

Descriptive research and conclusive oriented was used to find the nature of the problem. Descriptive research was conducted so as to fmd solutions of the problem. Even in this, the main area of inquiry was kept as junk food advertisement and its impact.

G. Sampling Methods

1) Convenience sampling method (while approaching families at different school gates)

2) Judgmental I Purposive sampling method.

H. Data Collection

1) Secondary data- that is information available in internet sites, research journals, books, magazines, newspapers.

2) Primary data through

(a) Questionnaire filled by parents. The questionnaire carried mixed questions having multiple choice, close ended question and some basic open ended questions.

(b) Personal Interview with the parents of different income levels and with their kids (with a general approach).

L DataAnalysis Tools

Statistical data analysis was used, starting with the basic tabulation of data and summarizeing the

data in order to relate critical points with study objectives.

IV. Repercussion of Junk Food Scoring Model

It is possible to construct a Repercussion of Junk Food Scoring Model with the data (responses obtained from the questionnaire). The 20 questions in the questionnaire can be

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classified and grouped as follows.

Table No. 1: Repercussion of Junk Food Scoring Model

Subject Q. Question Theme no. 1 How many children do you have?

2 What is the age of your child/children?

3 Are you working? Background 4 What is your educational level?

5 You belong to which state I VT?

6 Do you have any background of commerce or management?

7 How much time your child spends on watching

Less = positive answer TV everyday?

8 Does your child demand anything from you? Less = positive answer

How often does your child take Junk Food in a 9 week (wafers, cold drink, ready to eat snacks Less = positive answer

etc)?

10 Does your child watch advertisements in Yes =positive answer

Behaviour between TV programs?

11 Does your child prefer those goods that offer

Yes =positive answer free gifts, stickers, toys, games?

12 Does your child collect free gifts? Yes =positive answer

13 What attract him/her the most?

14 Does your child pressurize you to buy things No= positive answer

that he/she has seen in TV ads?

15 What do you want to include in your child's diet?

Health 16 Do you prepare snacks at home? Yes =positive answer

Concern 17 What is your child's demand for his/her meals?

18 Given two options, what does your child prefer?

Physical 19 In general, would you say your child health is? Good = positive answer Activities 20 How often your child gets sick? Less = positive answer

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The questions from 1 to 6 are basic information, which are kept out of scoring. Q 10, 11, 12, 16, 19 have been assigned each with score 1 for a yes/positive answer. Q 7, 8, 9, 14, 20 being a negative question, score 1 was assigned for answer No/Less.

Table No.2: Pattern of Distribution of Repercussion of Junk Food Scores

No. of Percentage Cumulative

Score Respondents of Percentage

(Frequency) Respondents

1 0 0 0

2 1 0.67 0.67

3 4 2.67 3.34

4 5 3.33 6.67

5 13 8.67 15.34

6 22 14.67 30.01

7 20 13.33 43.34

8 19 12.67 56.01

9 19 12.67 68.68

10 16 10.66 79.34

11 13 8.67 88.01

12 10 6.66 94.67

13 8 5.33 100

14 0 0 100

150 100

Table No.3: Compress form of Distribution pattern (ref Table No 2)

No. of Percentage Cumulative

Score Respondents of Percentage

(Frequency) Respondents

1 to 5 23 15.33 15.33

6 to 10 96 64 79.33

11 to 14 31 20.67 100

150 100

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V. Conclusion

From the results we can see majority ofthe sample scored between 6 to 10 i.e. 64% oftotal sample. The questions that had reduced the score (to 6 or 7 out of14) were Question No. 7, 9, 14. Majority of respondents scored zero in these questions, being these negative questions which indicates the time spent on watching TV, junk food consumption, lifestyle of children, behavior of children, their ability to create pressure on their parents by demanding them again and again (Pester power). There is a change in nature of child-parent relationships. Parents now, take their child's demands more seriously. Also, the increased work pressure on parents and longer work hours has led to creation of a society, that has higher disposable income that means rich in cash in hand but poor in terms of time, which makes it even more attractive and easy, to buy their children's demand as to way out of the time-consuming task of fending off their demands. And the children are now able to make their parents buy things by asking for, again and again.

Besides, the respondents scored one mark each in questions like 10, 11 etc, which indicated TV viewing, and attractiveness of children towards free gifts, stickers, toys, games. This shows a positive attitude of children toward junk food. One can conclude that TV addiction, increases junk food consumption among children. They easily get influenced by what is shown in TV advertisements. In addition to above, respondents scored one mark each in question No 12 & 13 that indicates that there is a clear link between food promotions and eating behavior in children. It shows that the catchy tricks used by advertisers do succeed in arousing interest among children. Junk food advertisements do a brainwash of children's mind. The brain of children gets 'imprinted' with food logos and attractive offers.

On analyzing the data of the respondent who scored between 1 to 5, shows that their children watch less TV hence demand less, most of these respondent's children are either young i.e. pester power is less or parents spend more time with their kids or parents are more conscious about their children's health.

On analyzing the data of the respondent who scored between 11 to 14, shows that even though the parents in this category, are concerned for their child's health, but since children are older in age, mostly above 5 years, they get easily fascinated by free gifts, toys and hence they like to make collection of such items. They get influenced by advertisements and then they influence their parent to buy such products. The consumption of junk food is high.

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Impact of Junk Food Ads

I

Behavioural

I

Change in Eating Habits

I

More Pester Power

I

Attractiveness

I

Certain Product

I

I I

Psychological

I

Thinking Pattern

I Imaginative world -

becoming strong, taller, popular etc.

Figure No. 1: Impact of Junk Food Ads on Children

Adht~alJan

VI. Suggestions

We must not forget the bad effects of these foods advertised, over the health of children during their growing stages. One problem with junk foods is that they're low in satiation value that is, people don't tend to feel as full when they eat them, which leads to overeating. Overweight rates are increasing day by day, a major cause of which is advertisements and marketing strategies, by fast food companies on television. Another problem is that junk food tends to replace other more nutritious foods. Instead we should promote healthier, more nutritious food choices.

Children are naive and vulnerable, therefore, their inability to understand such advertisements makes it unethical to display them for large amounts of time throughout the day and causes the child's parents to get involved financially.

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Marketers will do anything to encourage even the youngest children to ask for the advertised products, thereby encouraging young generation to become lifetime consumers. In order to prevent this parents and guardians should sit with the children, while they are watching TV. Do make them watch TV programmes, but avoid TV advertisements. Just because fast-food marketers try to get you to buy fatty, sugary foods doesn't mean you have to let them get inside your head.

We need to educate parents- along with kids- on healthier eating habits.

References

[ 1] Banerjee Soupamo, 2012, Watch out for what you eat. It could be killing you slowly and sweetly: says new CSE junk food and nutrition study, Centre of Science and Environmment (online) Available at: http://cseindia.org/content/watch-out-what-youeat-it-could-be-killing-you-slowly-and-sweetly-says-new-cse-junk-food-and(Accessed 24July2012)

[2] Dillon Eric, 2006, Gale/Greenhaven, Available at: Google Books <booksgoogle.com> (Accessed 3 Sept 20 12)

[3] Doheny Kathleen, 2012, Fight Junk Food Marketing to Kids, (online) Available at: http://www.webmd.com/parenting/raising-fit-kids/food/junk-food-marketing (Accessed21 July2012)

[4] Jackie & Sculle, 1999, Fast Food-Roadside Restaurants in the Automobile Age (e book), JHU Press, Available at: <booksgoogle.com> (Accessed 1 Aug 2012)

[5] Kotler, Philip & Keller, Kevin Lane (2006)Marketing Management,12th Edition, Prentice-Hall,Inc Pg 59,74,94,204,265,328,332,350,390,395,585

[6] Neergaard Lauran, 2012, Trans-fat ban made fast food a bit healthier in New York, The Bulletin (online) 19 July. Available at: http://www. bendbulletin.com/article/20 120719/NEWSO 107/207190305/ (Accessed 22 July,2012)

[7] Rashad & Grossman, Chou Shin-Yi, 2005, Fast-Food Restaurant Advertising On Television And Its Influence On Childhood Obesity, NBER Working Paper Series, (online) Available at: http://www.nber.org/papers/w 11879 (Accessed 22 July 20 12)

[8] Read & Digest,2013, Junk Food: Facts and Health Effects, (online)Available at: http:/ /readanddigest.com/junk-food-facts-and-health-effects/(Accessed 2 April20 13)

[9] Smith. F. Andrew, 2006, Encyclopaedia of Junk Food And Fast Food (e book),

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Greenwood Publishing Group, Available at: Google Books <booksgoogle.com>

(Accessed 1Aug2012)

[10] Soni . S. & Upadhyaya .M, Pester Power Effect of Advertising, Available at:

http://dspace.iimk.ac.in/bitstream/2259/355/1/313-324.pdf (Accessed 2April20 13)

Appendix

Questionnaire on Junk Food and their advertisements.

The questionnaire is presented to the respondents, after discussing with them the objectives of the

study, benefits of the study, in formations required, knowledge etc.

Questionnaire

1) How many children do you have?

2) What is the age of each of your child/children?

3) Are you working?

4) What is your educationallevel?

5) You belong to which state I VT?

6) Do you have any background of commerce or management?

7) How much time your child spends on watching TV every day?

8) Does your child demand anything from you?

9) How often your does your child take junk food in a week (wafers, cold drink, ready to eat snacks

etc)?

1 0) Does your child watch advertisements in between TV programmes?

11) Does your child prefer those goods that offer free gifts, stickers, toys, games?

12) Does your child collect free gifts?

13) What attract him/her the most:

a) Toys, Stickers

b) Games

14) Does your child pressurize you to buy things that he/she has seen in TV advertisements?

a) Never

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b) Sometimes

c) Mostly

15) What do you want to include in your child's diet?

a) Wheatproduct&milk

b) Wheat product, milk, junk food & cold drinks

16) Do you prepare snacks at home?

17) What is your child's demand for his/her meal?

a) Wheat product, milk, junk food & cold drinks

b) Junk food, cold drinks

18) Given two options, what does your child prefer?

a) Homemade snacks

b) Ready to eat snacks from market

19) In general, would you say about your child's health?

20) How often your child gets sick?

*****

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Are Contract Workers the Golden Trap: A Case of Maruti Suzuki Ltd.

Dr Swati Agrawal Associate Professor (HR/OB), Jaipuria Institute of Management, Noida

Abstract

Employees are the key to success of any organization with employer-employee relationship at its centre. At times, this relationship between employer-employee gets disturbed, resulting in conflict, sometimes to the extent of strikes and non cooperation. Maruti Suzuki plant in Manesar and Gurgaon has been the centre stage of this conflict in recent times. The author in this article tries to bring the new picture of Industrial Relations in modern India, where competition is increasing at ever fast rate and organizations are using modern HR intervention like engagement tools. Despite this, organizations fail to ensure mutually rewarding employer-employee relationship. This article brings out the fact that how lack of long term relationship, due to hiring contract workers to reduce cost, results in loss of trust and effective employer-employee relationship. Content of the article has been derived from secondary resources and open dialogue with some employees from Maruti Suzuki Plant.

Key Words: Conflict, contract, employee and employer.

I. Introduction

Are the labor unions back? The riot that followed the labour management dispute in Gurgaon over the Honda Motorcycle and Scooter India spat could be the first major sign of the things to come, and recently we witnessed the case ofMaruti Suzuki Ltd. After a decadeand-a-half of market friendly policy changes, the union seems to be sticking their neck out again to ensure they are being heard.

Maruti Suzuki India Ltd. has been continuously making changes, especially in last few years to face competition. As a joint venture between Government oflndia and Suzuki Motors of Japan, the company began a new era as manufacturers of people's car in the late 1983, when commercial production and sales ofMaruti 800 began (Sen, 2011 ). The company was able to establish as a model employer, using several Japanese techniques, for integrating employees into production process. Mid 1990s, the company witnessed decline in market share, with entry and growth of new passenger automobile in India. Lately, in Maruti has

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Are Contract Workers the Golden Trap: A Case of Maruti Suzuki Ltd. 105

introduced several initiatives to increase its production, which has resulted increase in production by 2000, though employment in mid 1990s to 2000, has increased only by 65% (Sen, 2011).

In 2002, change in ownership resulted, with Suzuki buying 1.2 million new issued Maruti Suzuki shares for Rs 3.280 for share by paying Rs 400 Cr. As a result of this, Suzuki share increased to 54.2% and govt holding decreased to 45.5% from exitising 49.7%. Later Government of India through IPO offioaded its stake and fmally exist the venture by 2004 (http://en.wikipedia.org/wiki/Maruti_Suzuki). Starting from 2000, right upto 2011, the company has faced labour problems, strikes, and disturbances.

II. Employee Relation

From the inception, till mid 90's Maruti Suzuki has relatively few problems related to workforce and management. But competition after liberalization and ever expanding automobile sector made management unable to handle people issue in the demand of high efficiency, due to which, Maruti ftrst time faced strike in the year 1995.

Late 1990's almost all major players in global market launched their models in India, with many establishing manufacturing and ancillary units in India. This made the market very competitive. The result was to revamp the people management practices and policies for labourers. Is Maruti able to do this successfully?

One such practice is the habit ofhiring contract workers. The contract workers are different, from what we see in other organized sectors. The job of hiring these people is given to contractors. In this case contractors are responsible for everything (like salary of worker, leave issues and etc) while company just pays the contract amount. They get no medical proftts, insurance, savings or disability concern. A regular worker in Maruti gets paid Rs.25000 a month, after 3 years of service as a trainee. Contract worker can get paid anything between 4644/- (Haryana minimum wage) to Rs.l2000/- depending upon contractor. Though both regular and contract workers have same amount of work.

Labor Unrest in 2000

At ftrst glance, it appears, everything is good in the Maruti Suzuki factory, there is a common canteen, uniform for managerial staff and workers, communication programmes through tasks, management union forum.

After the 3 days and 2 days strike in Gurgaon facility in April 1995 and March 1998 respectively, major unrest was seen in the year 2000, 89 days strike, longest ever in Maruti in

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Gurgaon facility. In 2000 the extensive emphasis on production and output, resulted in a pen down agitation in the Gurgaon plant in September. With the break down ofManagement Union talk with no result in September 2000, agitation of workers started; which later become the cause of change of culture in Maruti Suzuki. These agitation were in form of hunger strike, tool down strike, started earlier with black badges strike. In same period, management came up with incentive scheme. According to the scheme, incentives paid would depend upon the sales of the company. The purpose was again productivity but it was not accepted by unions for obvious reasons as sales are dependent upon many factors beyond the control oflabourers. Union demanded previous incentive scheme, according to which 65 % of all savings in labour cost will be distributed to labourers as bonus.

Till late 1990s, labour wage structure was at relatively higher side of market average. At that time workers satisfaction was also at higher side as they were receiving significantly higher salaries. Generally wage revisions results from bilateral negotiations, but with increased market competition and decline in profit, company could not make it to the expectations of labour. As a result agitation started to grow in the company.

Labor Unrest in 2011

Production stopped at Manesar facility on June 4, 2011, when employees of Maruti Suzuki demanded, to form a new independent union for Manesar facility. Management refused, giving reason of existing union in Maruti, Maruti Udyog Kamgar Union (MUKU). This union is mainly dominated by workers at the Gurgaon plant. Management on the other hand asked, Good Conduct Bond from workers.

The refusal of management was followed by series of strike on August 29, September 25 and October 7 for 10 days which has an impact of full closure of Suzuki's India operation (Bureau, Business Line, 2012 ).

For modem India, the strike by 2,000 workers ofMaruti's Manesar factory is a new age labor law case for the reference. Since no intimation or notice was given to the management about the strike, the strike was called illegal according to Industrial Disputes Act, 1947. R.C. Bhargava, Chairman, Maruti Suzuki India said, "Our stand is clear. The strike is illegal. Even the Haryana government and labor commission have said the same. Still, we will continue to talk" (Hindustan Times, 2011 ).

The Haryana government toughened its stand on the workers ofMaruti Suzuki's Manesar plant by declaring the strike as illegal deed and imposed a ban on the strike by passing prohibitory orders. In a press statement, Haryana Minister of State for Labor and Employment, Shiv Charan Lal Sharma, pointed out that the state government had also

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Are Contract Workers the Golden Trap: A Case of Maruti Suzuki Ltd. 107

referred the matter to the local labor court under the provisions of the Industrial Disputes Act, 1947. This move ofthe state came even as the Maruti's management offered, striking workers a peace proposal. Seven days into the strike, the management expressed their readiness to "review" the two demands of workers ifthey in return, agree to call off the strike and make up for the losses in production due to the strike.

During the 2001 strike, the Company derecognized the Maruti Udyog Employees' Union which had spearheaded the workers' agitation, and recognized the Maruti Udyog Kamgar Union, a new Union, which is reportedly regarded by the strikers as a pliable promanagement body, the basis for the demand to register a new union being a key issue in the current agitation.

The management's efforts to enforce order in the plant by suspending four workers on 28, July 2011 led to a day-long 'tool down' strike. Over the course of the next month, further dismissals and suspensions intensified the grievances which were amplified to include 'absence of proper breaks, low wages and equitable treatment of contract workers. The workers at the Gurgaon plant, who are subject to similar hours and conditions of work, did not join the strike.

The other issue which has formed a road block is the requirement that the workers sign a 'good conduct bond' before entering the plant. A four sentence undertaking which acknowledges the company's right to dismiss worker- indulging in slow working, intermittent stoppage of work, etc. has raised concerns on the legality and purpose of the bond in the present dispute. The workers interpreted this condition to be effectively a 'lockout'. With leadership in strike being diffused, somehow, the strike went off, but the reason to unrest, still remains. Management, workers representatives, government, hasn't done much to avoid any such future strike.

The management suggested a modification in the structure of the existing union and the company agreed to the establishment of individual bodies at the Manesar and Gurgaon facilities to deal with plant-level issues. Maruti has also proposed the formation of a governing council comprising of workers' representatives from both the plants to deal with corporate level issues like wage negotiations. However, the management made it clear that they would not accept any union which had members from outside or with political affiliation.

Maruti Suzuki for long has been introducing different policies and activities which are pro workers like engagement tools. Pay is also not very different from market average. However, high focus on productivity is resulting in employee dissatisfaction. Drivers to this unrest were mainly environmental, social issues, workers problem in Gurgaon- Manesar

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belt. Political forces and outside environment are also reasons for prevailing problem in Maruti plant. With change in management, it's also evident that Japanese culture doesn't fit well with Indian workers needs and aspirations and they are not able to understand influence of social and political issues on the work environment.

What cheap and convenient in the short term, like hiring contract workers doesn't work over longer period. For organization, contract workers act as flexible labour, and are also paid less in comparison to permanent workers, however any HR intervention like engagement tools used in Maruti Suzuki plants fail to serve its purpose of increasing organization loyalty for contract workers, with whatever benefit, organistaion perceives remains for very short period. In present time of complex, multistage manufacturing operations, organisation needs people with skills. Whenever workers leave or are forced to leave, organisation will need to train new people. With constantly changing workforce, no company can maintain growth.

Questions for Case Discussion:

1) Discuss past and present scenario of industrial relation in Maruti Suzuki plant.

2) Elaborate pros and cons ofhiring contract workers.

3) Suggest a framework for ensuring effective employer-employee relationship, when the strategy ofMaruti Suzuki is of expansion.

References

[1] Bureau, Business line, Maruti Staff Continue Strike, retrieved from

[2] Sen, Ratna (2011) Industrial Relations at Maruti- Suzuki, Indian Journal of Industrial Relation, vol. 47,pp.191-204

[3] http:/ /hindu.com/businessline/2000/09/28/stories/142807 a6.htm, accessed on November, 2, 2012

[ 4] http:/ /hresonance. blogspot.in/20 11/06/maruti -suzuki -strike-can-we-count-on.html, accessed on June 2, 2011

[5] http://en.wikipedia.org/wiki/Maruti_Suzuki accessed on November, 11, 2012

[6] Ians, Hindustan times (2011), retrieved from http://www.hindustantimes.com /India-news/N ewDelhi/Talks-fail-strike-at-Maruti -plant-in-Manesar-enters-1 Othday/ Article 1-708856, accessed on June 14, 2011.

*****

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Adhyayan June 2013 Final