1. Briefly explain the employee Selection Process with any real world example. How Google Hires: THE CORE - Looking for the next Noogler - someone whos good for the role good for !oogle and good at lots of things. - "hings mo#e at internet speed. $e look for people who are great at lots of things lo#e %ig challenges and welcome %ig changes. - "hey do not ha#e too many specialists in one partic&lar area. - "hey look for people who are good for !oogle'and not (&st for right now %&t for the long term. - "he path to getting hired &s&ally in#ol#es a first con#ersation with a recr&iter a phone inter#iew and an onsite inter#iew at one of o&r offices. The Interview ro!ess: - !oogle looks for smart team-oriented people who can get things done. - !oogle looks for ) things when they inter#iew a candidate. "he ) parameters are as follows: "1# $e%&ershi: !oogle wants to know how the prospect %eha#es in different sit&ations in order to mo%ili*e a team. "his might %e %y asserting a leadership role at work or with an organi*ation or %y helping a team s&cceed when yo& werent officially appointed as the leader. "2# Role'Rel%te& (nowle&ge: !oogle looks for people who ha#e a #ariety of strengths and passions not (&st isolated skill sets. "hey also want to make s&re that the prospects ha#e the experience and the %ackgro&nd that will set them &p for s&ccess in roles. +or engineering candidates in partic&lar theyll %e looking to check o&t the coding skills and technical areas of expertise. ")# How *o+ Thin,: !oogle is less concerned a%o&t grades and transcripts and more interested in how the propects think. "heyre likely to ask some role-related ,&estions that pro#ide insight into how the prospects sol#e pro%lems. "-# Google.ness: !oogle wants to know what makes the prospect what he-she what he c&rrently is. "hey also want to make s&re as to ggogle is a place a prospect will thri#e so thayll %e looking for signs aro&nd the prospects comfort with am%ig&ity their %ias to action and their colla%orati#e nat&re. /ee&0%!, 1ro2 2+ltile googlers: - .t !oogle one works on tons of pro(ects with different gro&ps of !ooglers across many teams and time *ones. "o gi#e a sense of what working in google is really like some of the inter#iewers co&ld %e potential teammates %&t some inter#iewers will %e with other teams. "his helps to see how one might colla%orate and fit in at !oogle o#erall. In&een&ent !o22ittees o1 Googlers hels ens+re hiring 1or the long ter2: - .n independent committee of !ooglers re#iews feed%ack from all of the inter#iewers. "his committee is responsi%le for ens&ring the hiring process is fair and that google is holding tr&e to /good for !oogle0 standards as it grows. The 0otto2 line !oogle %elie#es that if they hire great people and in#ol#e them intensi#ely in the hiring process theyll get more great people. 1#er the past co&ple of years they#e spent a lot of time making the hiring process as efficient as possi%le - red&cing time-to-hire and increasing comm&nications to candidates. $hile in#ol#ing !ooglers in process does take longer %&t they %elie#e its worth it. "heir early !ooglers identified these principles more than ten years ago and its what allows them to hold tr&e to who they are as they grow. "hese core principles are tr&e across !oogle %&t when it comes to specifics there are some pieces of process that look a little different across teams. .t !oogle they dont (&st accept difference - they cele%rate it they s&pport it and they thri#e on it for the %enefit of their employees their prod&cts and their comm&nity. !oogle is pro&d to %e an e,&al opport&nity workplace and is an affirmati#e action employer. 2. 3isc&ss the Stat&tory and non- stat&tory %enefits pro#ided for employees in an organi*ation with which yo& are familiar4 . general high le#el o#er#iew of common stat&tory and non-stat&tory %enefits pro#ided for employee welfare in .xis Bank are as follows: St%t+tor. 3el1%re S!he2es "he stat&tory welfare schemes incl&de the following pro#isions: Drin,ing 3%ter: .t all the working places safe hygienic drinking water sho&ld %e pro#ided. /%!ilities 1or sitting: 5n e#ery organi*ation especially factories s&ita%le seating arrangements are to %e pro#ided. /irst %i& %li%n!es: +irst aid appliances are to %e pro#ided and sho&ld %e readily assessa%le so that in case of any minor accident initial medication can %e pro#ided to the needed employee. $%trines %n& Urin%ls: . s&fficient n&m%er of latrines and &rinals are to %e pro#ided in the office and factory premises and are also to %e maintained in a neat and clean condition. C%nteen 1%!ilities: 6afeteria or canteens are to %e pro#ided %y the employer so as to pro#ide hygienic and n&tritio&s food to the employees. Sittoons: 5n e#ery work place s&ch as ware ho&ses store places in the dock area and office premises spittoons are to %e pro#ided in con#enient places and same are to %e maintained in a hygienic condition. $ighting: Proper and s&fficient lights are to %e pro#ided for employees so that they can work safely d&ring the night shifts. 3%shing l%!es: .de,&ate washing places s&ch as %athrooms wash %asins with tap and tap on the stand pipe are pro#ided in the port area in the #icinity of the work places. Ch%nging roo2s: .de,&ate changing rooms are to %e pro#ided for workers to change their cloth in the factory area and office premises. .de,&ate lockers are also pro#ided to the workers to keep their clothes and %elongings. Rest roo2s: .de,&ate n&m%ers of restrooms are pro#ided to the workers with pro#isions of water s&pply wash %asins toilets %athrooms etc. Non St%t+tor. S!he2es 7any non stat&tory welfare schemes may incl&de the following schemes: 4erson%l He%lth C%re "Reg+l%r 2e&i!%l !he!,'+s#: Some of the companies pro#ide the facility for extensi#e health check-&p /le5i'ti2e: "he main o%(ecti#e of the flextime policy is to pro#ide opport&nity to employees to work with flexi%le working sched&les. +lexi%le work sched&les are initiated %y employees and appro#ed %y management to meet %&siness commitments while s&pporting employee personal life needs E2lo.ee Assist%n!e 4rogr%2s: 8ario&s assistant programs are arranged like external co&nseling ser#ice so that employees or mem%ers of their immediate family can get co&nseling on #ario&s matters. H%r%ss2ent 4oli!.: "o protect an employee from harassments of any kind g&idelines are pro#ided for proper action and also for protecting the aggrie#ed employee. M%ternit. 6 A&otion $e%ve: 9mployees can a#ail maternity or adoption lea#es. Paternity lea#e policies ha#e also %een introd&ced %y #ario&s companies. Me&i'!l%i2 Ins+r%n!e S!he2e: "his ins&rance scheme pro#ides ade,&ate ins&rance co#erage of employees for expenses related to hospitali*ation d&e to illness disease or in(&ry or pregnancy. DRM22 : 2.2. MAR(ETING MANAGEMENT 1. 9xplain the different stages of Prod&ct Life 6ycle and strategies to %e followed for each stage. 1#er 2:::: new offerings incl&ding con#enience foods health and %ea&ty aids electronics a&tomo%iles pharmace&tical prod&cts hotels resta&rants and so on enter the marketplace each year. +or example in 2::; almost 1):: food prod&cts making a /whole grain claim0 were introd&ced. 1ther recent new prod&ct introd&ctions incl&de many technological prod&cts s&ch as Nintendos $i-+i iPods and digital #ideo recorders <38=s>? many new personal care prod&cts s&ch as new fragrances of shampoo and conditioner and new fla#ors of toothpaste? and new con#enience foods s&ch as fro*en meals /1:: calorie pack0 snacks and cereal %ars. 1nce a prod&ct is created and introd&ced in the marketplace the offering m&st %e managed effecti#ely for the c&stomer to recei#e #al&e from it. 1nly if this is done will the prod&cts prod&cer achie#e its profit o%(ecti#es and %e a%le to s&stain the offering in the marketplace. "he process in#ol#es making many complex decisions especially if the prod&ct is %eing introd&ced in glo%al markets. Before introd&cing prod&cts in glo%al markets an organi*ation m&st e#al&ate and &nderstand factors in the external en#ironment incl&ding laws and reg&lations the economy and stage of economic de#elopment the competitors and s&%stit&tes c<&ral #al&es and market needs. 6ompanies also need expertise to s&ccessf&lly la&nch prod&cts in foreign markets. !i#en many possi%le constraints in international markets companies might initially introd&ce a prod&ct in limited areas a%road. 1ther organi*ations s&ch as 6oca- 6ola decide to compete in markets worldwide. "he ro&+!t li1e !.!le "4$C# incl&des the stages the prod&ct goes thro&gh after de#elopment from introd&ction to the end of the prod&ct. @&st as children go thro&gh different phases in life <toddler elementary school adolescent yo&ng ad< and so on> prod&cts and ser#ices also age and go thro&gh different stages. "he PL6 is a %eneficial tool that helps marketers manage the stages of a prod&cts acceptance and s&ccess in the marketplace %eginning with the prod&cts introd&ction its growth in market share mat&rity and possi%le decline in market share. 1ther tools s&ch as the Boston 6ons<ing !ro&p matrix and the !eneral 9lectric approach may also %e &sed to manage and make decisions a%o&t what to do with prod&cts. +or example when a market is no longer growing %&t the prod&ct is doing well <cash cow in the B6! approach> the company may decide to &se the money from the cash cow to in#est in other prod&cts they ha#e rather than contin&ing to in#est in the prod&ct in a no-growth market. "he prod&ct life cycle can #ary for different prod&cts and different prod&ct categories.ALife 6ycleA ill&strates an example of the prod&ct life cycle showing how a prod&ct can mo#e thro&gh fo&r stages. Bowe#er not all prod&cts go thro&gh all stages and the length of a stage #aries. +or example some prod&cts ne#er experience market share growth and are withdrawn from the market. 1ther prod&cts stay in one stage longer than others. +or example in 1CC2 Pepsi6o introd&ced a prod&ct called 6lear Pepsi which went from introd&ction to decline #ery rapidly. By contrast 3iet 6oke entered the growth market soon after its introd&ction in the early 1CD:s and then entered <and remains in> the mat&re stage of the prod&ct life cycle. New comp&ter prod&cts and software and #ideo games often ha#e limited life cycles whereas prod&ct categories s&ch as diamonds and d&ra%le goods <kitchen appliances> generally ha#e longer life cycles. Bow a prod&ct is promoted priced distri%&ted or modified can also #ary thro&gho&t its life cycle. Lets now look at the #ario&s prod&ct life cycle stages and what characteri*es each. The Intro&+!tion St%ge "he first stage in a prod&cts life cycle is the intro&+!tion st%ge. "he introd&ction stage is the same as commerciali*ation or the last stage of the new prod&ct de#elopment process. 7arketing costs are typically higher in this stage than in other stages. .s an analogy think a%o&t the amo&nt of f&el a plane needs for takeoff relati#e to the amo&nt it needs while in the air. @&st as an airplane needs more f&el for takeoff a new prod&ct or ser#ice needs more f&nds for introd&ction into the marketplace. 6omm&nication <promotion> is needed to generate awareness of the prod&ct and pers&ade cons&mers to try it and placement alternati#es and s&pply chains are needed to deli#er the prod&ct to the c&stomers. Profits are often low in the introd&ctory stage d&e to the research and de#elopment costs and the marketing costs necessary to la&nch the prod&ct. "he length of the introd&ctory stage #aries for different prod&cts. Bowe#er %y law in the Enited States a company is only allowed to &se the la%el /new0 on a prod&cts package for six months. .n organi*ations o%(ecti#es d&ring the introd&ctory stage often in#ol#e ed&cating potential c&stomers a%o&t its #al&e and %enefits creating awareness and getting potential c&stomers to try the prod&ct or ser#ice. !etting prod&cts and ser#ices partic&larly m<inational %rands accepted in foreign markets can take e#en longer. 6onse,&ently companies introd&cing prod&cts and ser#ices a%road generally m&st ha#e the financial reso&rces to make a long-term <longer than one year> commitment to their s&ccess. "he specific promotional strategies a company &ses to la&nch a prod&ct #ary depending on the type of prod&ct and the n&m%er of competitors it faces in the market. +irms that man&fact&re prod&cts s&ch as cereals snacks toothpastes soap and shampoos often &se mass marketing techni,&es s&ch as tele#ision commercials and 5nternet campaigns and promotional programs s&ch as co&pons and sampling to reach cons&mers. "o reach wholesalers and retailers s&ch as $almart "arget and grocery stores firms &tili*e personal selling. 7any firms promote to c&stomers retailers and wholesalers. Sometimes other more targeted ad#ertising strategies are employed s&ch as %ill%oards and transit signs <signs on %&ses taxis s&%ways and so on>. +or more technical or expensi#e prod&cts s&ch as comp&ters or plasma tele#isions many firms &tili*e personal selling informational promotions and in-store demonstrations so cons&mers can see how the prod&cts work. Many new convenient snack packages, such as jelly snacks and packages of different sizes, are available in China and the United States. 3&ring introd&ction an organi*ation m&st ha#e eno&gh distri%&tion o&tlets <places where the prod&ct is sold or the ser#ice is a#aila%le> to get the prod&ct or ser#ice to the c&stomers. "he prod&ct ,&antities m&st also %e a#aila%le to meet demand. +or example 5B7s "hinkPad was a %ig hit when it was first introd&ced %&t the demand for it was so great that 5B7 wasnt a%le to prod&ce eno&gh of the prod&ct. 6ooperation from a companys s&pply chain mem%ers'its man&fact&rers wholesalers and so forth'helps ens&re that s&pply meets demand and that #al&e is added thro&gho&t the process. $hen yo& were growing &p yo& may remem%er eating =ice Frispies "reats cereal a #ery pop&lar prod&ct. "he prod&ct was so pop&lar that Felloggs co&ld not keep &p with initial demand and placed ads to cons&mers apologi*ing for the pro%lem. $hen demand is higher than s&pply the door opens for competitors to enter the market which is what happened when the microwa#e was introd&ced. 7ost people own a microwa#e and prices ha#e dropped significantly since .mana introd&ced the first microwa#e at a price of almost GH::. .s cons&mers in the Enited States initially saw and heard a%o&t the prod&ct sales increased from forty tho&sand &nits to o#er a million &nits in only a few years. Sales in @apan increased e#en more rapidly d&e to a lower price. .s a res< of the high demand in %oth co&ntries many competitors entered the market and prices dropped. Prod&ct pricing strategies in the introd&ctory stage can #ary depending on the type of prod&ct competing prod&cts the extra #al&e the prod&ct pro#ides cons&mers #ers&s existing offerings and the costs of de#eloping and prod&cing the prod&ct. 1rgani*ations want cons&mers to percei#e that a new offering is %etter or more desira%le than existing prod&cts. "wo strategies that are widely &sed in the introd&ctory stage are penetration pricing and skimming. . enetr%tion ri!ing str%teg. in#ol#es &sing a low initial price to enco&rage many c&stomers to try a prod&ct. "he organi*ation hopes to sell a high #ol&me in order to generate s&%stantial re#en&es. New #arieties of cereals fragrances of shampoo scents of detergents and snack foods are often introd&ced at low initial prices. Seldom does a company &tili*e a high price strategy with a prod&ct s&ch as this. "he low initial price of the prod&ct is often com%ined with ad#ertising co&pons samples or other special incenti#es to increase awareness of the prod&ct and get cons&mers to try it. . company &ses a s,i22ing ri!ing str%teg. which in#ol#es setting a high initial price for a prod&ct to more ,&ickly reco&p the in#estment related to its de#elopment and marketing. "he skimming strategy attracts the top or high end of the market. !enerally this market consists of c&stomers who are not as price sensiti#e or who are early adopters of prod&cts. +irms that prod&ce electronic prod&cts s&ch as 38=s plasma tele#isions and digital cameras set their prices high in the introd&ctory stage. Bowe#er the high price m&st %e consistent with the nat&re of the prod&ct as well as the other marketing strategies %eing &sed to promote it. +or example engaging in more personal selling to c&stomers r&nning ads targeting specific gro&ps of c&stomers and placing the prod&ct in a limited n&m%er of distri%&tion o&tlets are likely to %e strategies firms &se in con(&nction with a skimming approach. The Growth St%ge 5f a prod&ct is accepted %y the marketplace it enters the growth stage of the prod&ct life cycle. "he growth st%ge is characteri*ed %y increasing sales more competitors and higher profits. Enfort&nately for the firm the growth stage attracts competitors who enter the market #ery ,&ickly. +or example when 3iet 6oke experienced great s&ccess Pepsi soon entered with 3iet Pepsi. Io&ll notice that %oth 6oca-6ola and Pepsi ha#e similar competiti#e offerings in the %e#erage ind&stry incl&ding their own %rands of %ottled water (&ice and sports drinks. .s additional c&stomers %egin to %&y the prod&ct man&fact&rers m&st ens&re that the prod&ct remains a#aila%le to c&stomers or r&n the risk of them %&ying competitors offerings. +or example the prod&cers of #ideo game systems s&ch as Nintendos $i-+i co&ld not keep &p with cons&mer demand when the prod&ct was first la&nched. 6onse,&ently some cons&mers p&rchased competing game systems s&ch as 7icrosofts J%ox. Deand for the !intendo "i#$i increased sharply after the product%s introduction. . company sometimes increases its promotional spending on a prod&ct d&ring its growth stage. Bowe#er instead of enco&raging cons&mers to try the prod&ct the promotions often foc&s on the specific %enefits the prod&ct offers and its #al&e relati#e to competiti#e offerings. 5n other words altho&gh the company m&st still inform and ed&cate c&stomers it m&st co&nter the competition. 9mphasi*ing the ad#antages of the prod&cts %rand name can help a company maintain its sales in the face of competition. .ltho&gh different organi*ations prod&ce personal comp&ters a highly recogni*ed %rand s&ch as 5B7 strengthens a firms ad#antage when competitors enter the market. New offerings that &tili*e the same s&ccessf&l %rand name as a companys already existing offerings which is what Black K 3ecker does with some of its prod&cts can gi#e a company a competiti#e ad#antage. 6ompanies typically %egin to make a profit d&ring the growth stage %eca&se more &nits are %eing sold and more re#en&e is generated. "he n&m%er of distri%&tion o&tlets <stores and dealers> &tili*ed to sell the prod&ct can also increase d&ring the growth stage as a company tries to reach as m&ch of the marketplace as possi%le. 9xpanding a prod&cts distri%&tion and increasing its prod&ction to ens&re its a#aila%ility at different o&tlets &s&ally res<s in a prod&cts costs remaining high d&ring the growth stage. "he price of the prod&ct itself typically remains at a%o&t the same le#el d&ring the growth stage altho&gh some companies red&ce their prices slightly to attract additional %&yers and meet the competitors prices. 6ompanies hope %y increasing their sales they also impro#e their profits. The M%t+rit. St%ge .fter many competitors enter the market and the n&m%er of potential new c&stomers declines the sales of a prod&ct typically %egin to le#el off. "his indicates that a prod&ct has entered the 2%t+rit. st%ge of its life cycle. 7ost cons&mer prod&cts are in the mat&re stage of their life cycle? their %&yers are repeat p&rchasers #ers&s new c&stomers. 5ntense competition ca&ses profits to fall &ntil only the strongest players remain. "he mat&rity stage lasts longer than other stages. L&aker 1ats and 5#ory Soap are prod&cts in the mat&rity stage 'they ha#e %een on the market for o#er one h&ndred years. !i#en the competiti#e en#ironment in the mat&rity stage many prod&cts are promoted hea#ily to cons&mers %y stronger competitors. "he strategies &sed to promote the prod&cts often foc&s on #al&e and %enefits that gi#e the offering a competiti#e ad#antage. "he promotions aimed at a companys distri%&tors may also increase d&ring the mat&re stage. 6ompanies may decrease the price of mat&re prod&cts to co&nter the competition. Bowe#er they m&st %e caref&l not to get into /price wars0 with their competitors and destroy all the profit potential of their markets threatening a firms s&r#i#al. 5ntel and .d#anced 7icro 3e#ices <.73> ha#e engaged in se#eral price wars with regard to their microprocessors. Likewise Sams&ng added feat&res and lowered the price on its 5nstinct mo%ile phone engaging in a price war with .pples iPhone. $ith the weakened economy many online retailers engaged in price wars d&ring the 2::D holiday season %y c&tting prices on their prod&cts and shipping costs. .ltho&gh large organi*ations s&ch as .ma*on.com can a%sor% shipping costs price wars often h&rt smaller retailers. 7any retailers learned from their mistakes and ordered less in#entory for the 2::C holiday season. 6ompanies are challenged to de#elop strategies to extend the mat&rity stage of their prod&cts so they remain competiti#e. 7any firms do so %y modifying their target markets their offerings or their marketing strategies. Next we look at each of these strategies. 7odifying the target market helps a company attract different c&stomers %y seeking new &sers going after different market segments or finding new &ses for a prod&ct in order to attract additional c&stomers. +inancial instit&tions and a&tomo%ile dealers reali*ed that women ha#e increased %&ying power and now market to them. $ith the growth in the n&m%er of online shoppers more organi*ations sell their prod&cts and ser#ices thro&gh the 5nternet. 9ntering new markets pro#ides companies an opport&nity to extend the prod&ct life cycles of their different offerings. 7any companies enter different geographic markets or international markets as a strategy to get new &sers. . prod&ct that might %e in the mat&re stage in one co&ntry might %e in the introd&ctory stage in another market. +or example when the E.S. market %ecame sat&rated 7c3onalds %egan opening resta&rants in foreign markets. 6ell phones were #ery pop&lar in .sia %efore they were introd&ced in the Enited States. 7any cell phones in .sia are %eing &sed to scan co&pons and to charge p&rchases. Bowe#er the market in the Enited States might not %e ready for that type of technology. 7odifying the prod&ct s&ch as changing its packaging si*e fla#ors colors or ,&ality can also extend the prod&cts mat&rity stage. "he 1:: 6alorie Packs created %y Na%isco pro#ide an example of how a company changed the packaging and si*e to pro#ide con#enience and one-h&ndred-calorie portions for cons&mers. $hile the sales of many packaged foods fell the sales of the 1:: 6alorie Packs increased to o#er G2:: million prompting Na%isco to repackage more prod&cts. Fraft +oods extended the mat&re stage of different crackers s&ch as $heat "hins and "risc&its %y creating different fla#ors. .ltho&gh not pop&lar with cons&mers many companies &ownsi7e <or decrease> the package si*es of their prod&cts or the amo&nt of the prod&ct in the packages to sa#e money and keep prices from rising too m&ch. 6ar man&fact&rers modify their #ehicles slightly each year to offer new styles and new safety feat&res. 9#ery three to fi#e years a&tomo%ile man&fact&rers do more extensi#e modifications. 6hanging the package or adding #ariations or feat&res are common ways to extend the mat&re stage of the life cycle. Pepsi recently changed the design and packaging of its soft drinks and "ropicana (&ice prod&cts. Bowe#er cons&mers tho&ght the new (&ice package looked like a less expensi#e %rand which made the ,&ality of the prod&ct look poorer. .s a res< Pepsi res&med the &se of the original "ropicana carton. Pepsis redesigned soda cans also recei#ed negati#e cons&mer re#iews. $hen introd&cing prod&cts to international markets firms m&st decide if the prod&ct can %e st%n&%r&i7e& <kept the same> or how m&ch if any %&%t%tion or changing of the prod&ct to meet the needs of the local c<&re is necessary. .ltho&gh it is m&ch less expensi#e to standardi*e prod&cts and promotional strategies c<&ral and en#ironmental differences &s&ally re,&ire some adaptation. Prod&ct colors and packages as well as prod&ct names m&st often %e changed %eca&se of c<&ral differences. +or example in many .sian and 9&ropean co&ntries 6oca-6olas diet drinks are called /light0 not diet. !9 makes smaller appliances s&ch as washers and dryers for the @apanese market. By&ndai 7otor 6ompany had to impro#e the ,&ality of its a&tomo%iles in order to compete in the E.S. market. 6ompanies m&st also examine the external en#ironment in foreign markets since the reg&lations competition and economic conditions #ary as well as the c<&res. &n 'urope, diet drinks are called (light,) not diet. *his Coca#Cola product is available in +erany. . Some companies modify the marketing strategy for one or more marketing #aria%les of their prod&cts. +or example many coffee shops and fast-food resta&rants s&ch as 7c3onalds now offer specialty coffee that competes with Star%&cks. .s a res< Star%&cks managers a decided it was time to change the companys strategy. 1#er the years Star%&cks had added l&nch offerings and mo#ed away from grinding coffee in the stores to pro#ide faster ser#ice for its c&stomers. Bowe#er c&stomers missed the coffee shop atmosphere and the aroma of freshly %rewed coffee and didnt like the smell of all the l&nch items. .s a res< of falling market share Star%&cks former 691 and fo&nder Boward Sch<* ret&rned to the company. Sch<* hired cons<ants to determine how to modify the firms offering and extend the mat&rity stage of their life cycle. S&%se,&ently Star%&cks changed the atmosphere of many of its stores %ack to that of traditional coffee shops modified its l&nch offerings in many stores and res&med grinding coffee in stores to pro#ide the aroma c&stomers missed. "he company also modified some of its offerings to pro#ide health-conscio&s cons&mers lower-calorie alternati#es. .fter the E.S. economy weakened in 2::C Star%&cks anno&nced it wo&ld %egin selling instant coffee for a%o&t a dollar a c&p to appeal to c&stomers who were str&ggling financially %&t still wanted a special c&p of coffee. "he firm also changed its comm&nication with c&stomers %y &tili*ing more interacti#e media s&ch as %logs. *he oldest operating McDonald%s is in California.
$hereas Star%&cks might ha#e o#erexpanded 7c3onalds plans to add fo&rteen tho&sand coffee %ars to selected stores. 5n addition to the coffee %ars many 7c3onalds stores are remodeling their interiors to feat&re flat screen tele#isions recessed lighting and wireless 5nternet access. 1ther 7c3onalds resta&rants kept their original design which c&stomers still like. The De!line St%ge $hen sales decrease and contin&e to drop to lower le#els the prod&ct has entered the &e!line st%ge of the prod&ct life cycle. 5n the decline stage changes in cons&mer preferences technological ad#ances and alternati#es that satisfy the same need can lead to a decrease in demand for a prod&ct. Bow many of yo&r fellow st&dents do yo& think ha#e &sed a typewriter adding machine or slide r&le4 6omp&ters replaced the typewriter and calc&lators replaced adding machines and the slide r&le. .sk yo&r parents a%o&t eight-track tapes which were pop&lar %efore cassette tapes which were pop&lar %efore 63s. Some prod&cts decline slowly. 1thers go thro&gh a rapid le#el of decline. 7any fads and fashions for yo&ng people tend to ha#e #ery short life cycles and go /o&t of style0 #ery ,&ickly. <5f yo&#e e#er asked yo&r parents to %orrow clothes from the 1CC:s yo& may %e am&sed at how m&ch the styles ha#e changed.> Similarly many st&dents dont ha#e landline phones or 86= players and cannot %elie#e that people still &se the /o&tdated0 de#ices. Similarly payphones are rapidly %ecoming o%solete. "echnical prod&cts s&ch as digital cameras cell phones and #ideo games that appeal to yo&ng people often ha#e limited life cycles. 6ompanies m&st decide what strategies to take when their prod&cts enter the decline stage. "o sa#e money some companies try to red&ce their promotional expendit&res on these prod&cts and the n&m%er of distri%&tion o&tlets in which they are sold. "hey might implement price c&ts to get c&stomers to %&y the prod&ct. H%rvesting the prod&ct entails grad&ally red&cing all costs spent on it incl&ding in#estments made in the prod&ct and marketing costs. By red&cing these costs the company hopes that the profits from the prod&ct will increase &ntil their in#entory r&ns o&t. .nother option for the company is &ivesting <dropping or deleting> the prod&ct from its offerings. "he company might choose to sell the %rand to another firm or simply red&ce the price drastically in order to get rid of all remaining in#entory. 5f a company decides to keep the prod&ct it may lose money or make money if competitors drop o&t. 7any companies decide the %est strategy is to modify the prod&ct in the mat&rity stage to a#oid entering the decline stage. (E* TA(EA3A* "he prod&ct life cycle helps a company &nderstand the stages <introd&ction growth mat&rity and decline> a prod&ct or ser#ice may go thro&gh once it is la&nched in the marketplace. "he n&m%er and length of stages can #ary. $hen a prod&ct is la&nched or commerciali*ed it enters the introd&ction stage. 6ompanies m&st try to generate awareness of the prod&ct and enco&rage cons&mers to try it. 3&ring the growth stage companies m&st demonstrate the prod&cts %enefits and #al&e to pers&ade c&stomers to %&y it #ers&s competing prod&cts. Some prod&cts ne#er experience growth. "he ma(ority of prod&cts are in the mat&re stage. 5n the mat&re stage sales le#el off and the market typically has many competitors. 6ompanies modify the target market the offering or the marketing mix in order to extend the mat&re stage and keep from going into decline. 5f a prod&ct goes into decline a company m&st decide whether to keep the prod&ct har#est and red&ce the spending on it &ntil the entire in#entory is sold or di#est and get rid of the prod&ct. 2. 3isc&ss the concept of c&stomer =elationship 7anagement - Bighlight its importance in the glo%ali*ed scenario. 9#ery %&siness &nit emphasi*es on sp&rting a long term relationship with c&stomers to n&rt&re its sta%ility in todays %looming market. 6&stomers expectations are now not only limited to get %est prod&cts and ser#ices they also need a face-to-face %&siness in which they want to recei#e exactly what they demand and in a ,&ick time 6&stomer =elationship 7anagement is an &pright concept or strategy to solidify relations with c&stomers and at the same time red&cing cost and enhancing prod&cti#ity and profita%ility in %&siness. .n ideal 6=7 system is a centrali*ed collection all data so&rces &nder an organi*ation and pro#ides an atomistic real time #ision of c&stomer information. . 6=7 system is #ast and significant %&t it %e can implemented for small %&siness as well as large enterprises also as the main goal is to assist the c&stomers efficiently. Es&ally an organi*ation consists of #ario&s departments which predominantly ha#e access to c&stomers information either directly or indirectly. . 6=7 system piles &p this information centrally examines it and then makes it addressa%le within all the departments. Lets take an example of an international call center which &ses a 6=7 tool called Mxy* and is integrated with a phone and a comp&ter system or laptop. Now this system a&tomatically percei#es which c&stomer is calling. Before the exec&ti#e attends the phone the 6=7 system %rings forth the c&stomer details on the comp&ter or laptop screen and also indicates what the opport&nity of deals is with that partic&lar c&stomer what the c&stomer had already p&rchased or ordered in past and what is the pro%a%ility of %&ying in f&t&re. Not only this it can also highlight what all prod&cts %est s&it this c&stomer. +or finance department it may show the information regarding the c&rrent %alance and for acco&nting department it may pop o&t the information regarding the recent p&rchases %y the c&stomer. .ll these pieces of data are stored in the 6=7 data%ase and are a#aila%le as and when it is needed. .ccording to this example 6=7 system pro#ides a well defined platform for all %&siness &nits to interact with their clients and f&lfill all their needs and demands #ery effecti#ely and to %&ild long-term relationship. $angling this kind of relationship with c&stomers is not easy to manage and it depends on how the systematically and flexi%ly a 6=7 system is implemented or integrated. B&t once its accomplished it ser#es the %est way in dealing with c&stomers. 5n t&rn c&stomers feels gratit&de of self-satisfaction and loyalty which res<s in %etter %onding with s&pplier and hence increasing the %&siness . 6=7 system is not only &sed to deal with the existing c&stomers %&t is also &sef&l in ac,&iring new c&stomers. "he process first starts with identifying a c&stomer and maintaining all the corresponding details into the 6=7 system which is also called an M1pport&nity of B&siness. "he Sales and +ield representati#es then try getting %&siness o&t of these c&stomers %y sophistically following &p with them and con#erting them into a winning deal 6&stomer =elationship 7anagement strategies ha#e gi#en a new o&tlook to all the s&ppliers and c&stomers to keep the %&siness going &nder an estima%le relationship %y f&lfilling m&t&al needs of %&ying and selling 6&stomer =elationship management is the strongest and the most efficient approach in maintaining and creating relationships with c&stomers. 6&stomer relationship management is not only p&re %&siness %&t also ideate strong personal %onding within people. 3e#elopment of this type of %onding dri#es the %&siness to new le#els of s&ccess. 1nce this personal and emotional linkage is %&ilt it is #ery easy for any organi*ation to identify the act&al needs of c&stomer and help them to ser#e them in a %etter way. 5t is a %elief that more the sophisticated strategies in#ol#ed in implementing the c&stomer relationship management the more strong and fr&itf&l is the %&siness. 7ost of the organi*ations ha#e dedicated world class tools for maintaining 6=7 systems into their workplace. Some of the efficient tools &sed in most of the renowned organi*ation are BatchBook Salesforce B&**stream S&gar 6=7 etc. Looking at some %roader perspecti#es gi#en as %elow we can easily determine why a 6=7 System is always important for an organi*ation 5N "B9 !L1B.L5S93 S69N.=51. . 6=7 system consists of a historical #iew and analysis of all the ac,&ired or to %e ac,&ired c&stomers. "his helps in red&ced searching and correlating c&stomers and to foresee c&stomer needs effecti#ely and increase %&siness 6=7 contains each and e#ery %it of details of a c&stomer hence it is #ery easy for track a c&stomer accordingly and can %e &sed to determine which c&stomer can %e profita%le and which not 5n 6=7 system c&stomers are gro&ped according to different aspects according to the type of %&siness they do or according to physical location and are allocated to different c&stomer managers often called as acco&nt managers. "his helps in foc&sing and concentrating on each and e#ery c&stomer separately . 6=7 system is not only &sed to deal with the existing c&stomers %&t is also &sef&l in ac,&iring new c&stomers. "he process first starts with identifying a c&stomer and maintaining all the corresponding details into the 6=7 system which is also called an M1pport&nity of B&siness. "he Sales and +ield representati#es then try getting %&siness o&t of these c&stomers %y sophistically following &p with them and con#erting them into a winning deal. .ll this is #ery easily and efficiently done %y an integrated 6=7 system "he strongest aspect of 6&stomer =elationship 7anagement is that it is #ery cost-effecti#e. "he ad#antage of decently implemented 6=7 system is that there is #ery less need of paper and man&al work which re,&ires lesser staff to manage and lesser reso&rces to deal with. "he technologies &sed in implementing a 6=7 system are also #ery cheap and smooth as compared to the traditional way of %&siness .ll the details in 6=7 system is kept centrali*ed which is a#aila%le anytime on fingertips. "his red&ces the process time and increases prod&cti#ity. 9fficiently dealing with all the c&stomers and pro#iding them what they act&ally need increases the c&stomer satisfaction. "his increases the chance of getting more %&siness which <imately enhances t&rno#er and profit. 5f the c&stomer is satisfied they will always %e loyal to yo& and will remain in %&siness fore#er res<ing in increasing c&stomer %ase and <imately enhancing net growth of %&siness. 5n todays commercial world practice of dealing with existing c&stomers and thri#ing %&siness %y getting more c&stomers into loop is predominant and is mere a dilemma. 5nstalling a 6=7 system can definitely impro#e the sit&ation and help in challenging the new ways of marketing and %&siness in an efficient manner. Bence in the era of %&siness e#ery organi*ation sho&ld %e recommended to ha#e a f&ll-fledged 6=7 system to cope &p with all the %&siness needs. DRM2): 2.). /INANCIA$ MANAGEMENT 1. 9xamine the techni,&es a#aila%le to meas&re risk in capital %&dgeting decisions. C%it%l 8+&geting 6apital %&dgeting is defined as the process of planning for pro(ects on assets with cash flows of a period greater than one year. "hese pro(ects can %e classified as: - =eplacement decisions to maintain the %&siness - 9xisting prod&ct or market expansion - New prod&cts and ser#ices - =eg&latory safety and en#ironmental - 1ther incl&ding pet pro(ects or diffic< to e#al&ate pro(ects .dditionally pro(ects can also %e classified as 2+t+%ll. e5!l+sive or in&een&ent: ' 7&t&ally excl&si#e pro(ects indicate there is only one pro(ect among all possi%le pro(ects that can %e accepted. ' 5ndependent pro(ects are potential pro(ects that are &nrelated and any com%ination of those pro(ects can %e accepted. The I2ort%n!e o1 C%it%l 8+&geting 6apital %&dgeting is important for many reasons: - Since pro(ects appro#ed #ia capital %&dgeting are long term the firm %ecomes tied to the pro(ect and loses some of its flexi%ility d&ring that period. - $hen making the decision to p&rchase an asset managers need to forecast the re#en&e o#er the life of that asset. - Lastly gi#en the length of the pro(ects capital-%&dgeting decisions <imately define the strategic plan of the company. Ris, =isk is the potential that a chosen action or acti#ity <incl&ding the choice of inaction> will lead to a loss <an &ndesira%le o&tcome>. "he notion implies that a choice ha#ing an infl&ence on the o&tcome exists <or existed>. Potential losses themsel#es may also %e called Arisks. A "here are n&mero&s kinds of risks to %e taken into acco&nt when considering capital %&dgeting incl&ding: corporate risk international risk <incl&ding c&rrency risk> ind&stry-specific risk market risk stand-alone risk pro(ect-specific risk competiti#e risk Coror%te /in%n!e ' Ris,'An%l.sis Te!hni9+es 5t is important to keep in mind that when a company analy*es a potential pro(ect it is forecasting potential not act&al cash flows for a pro(ect. .s we all know forecasts are %ased on ass&mptions that may %e incorrect. 5t is therefore important for a company to perform a sensiti#ity analysis on its ass&mptions to get a %etter sense of the o#erall risk of the pro(ect the company is a%o&t to take. "here are three risk-analysis techni,&es that sho&ld %e known for the exam: 1. Sensitivit. An%l.sis Sensiti#ity analysis is simply the method for determining how sensiti#e o&r NP8 analysis is to changes in o&r #aria%le ass&mptions. "o %egin a sensiti#ity analysis we m&st first come &p with a %ase-case scenario. "his is typically the NP8 &sing ass&mptions we %elie#e are most acc&rate. +rom there we can change #ario&s ass&mptions we had initially made %ased on other potential ass&mptions. NP8 is then recalc&lated and the sensiti#ity of the NP8 %ased on the change in ass&mptions is determined. 3epending on o&r confidence in o&r ass&mptions we can determine how potentially risky a pro(ect can %e. 2. S!en%rio An%l.sis Scenario analysis takes sensiti#ity analysis a step f&rther. =ather than (&st looking at the sensiti#ity of o&r NP8 analysis to changes in o&r #aria%le ass&mptions scenario analysis also looks at the pro%a%ility distri%&tion of the #aria%les. Like sensiti#ity analysis scenario analysis starts with the constr&ction of a %ase case scenario. +rom there other scenarios are considered known as the A%est-case scenarioA and the Aworst-case scenarioA. Pro%a%ilities are assigned to the scenarios and comp&ted to arri#e at an expected #al&e. !i#en its simplicity scenario analysis is one the most fre,&ently &sed risk-analysis techni,&es. N. Monte C%rlo Si2+l%tion 7onte 6arlo sim&lation is considered to %e the A%estA method of sensiti#ity analysis. 5t comes &p with infinite calc&lations <expected #al&es> gi#en a n&m%er of constraints. 6onstraints are added and the system generates random #aria%les of inp&ts. +rom there NP8 is calc&lated. =ather than generating (&st a few iterations the sim&lation repeats the process n&mero&s times. +rom the n&mero&s res<s the expected #al&e is then calc&lated. Bence 3ifferent %&siness and market risks m&st %e taken into acco&nt when planning o&t the process of capital %&dgeting. 2. 3isc&ss the present stat&s of 5ndian +inancial System Intro&+!tion: 9conomic growth and de#elopment of any co&ntry depends &pon a well-knit financial system. +inancial system comprises a set of s&%-systems of financial instit&tions financial markets financial instr&ments and ser#ices which help in the formation of capital. "h&s a financial system pro#ides a mechanism %y which sa#ings are transformed into in#estments and it can %e said that financial system play an significant role in economic growth of the co&ntry %y mo%ili*ing s&rpl&s f&nds and &tili*ing them effecti#ely for prod&cti#e p&rpose. "he financial system is characteri*ed %y the presence of integrated organi*ed and reg&lated financial markets and instit&tions that meet the short term and long term financial needs of %oth the ho&sehold and corporate sector. Both financial markets and financial instit&tions play an important role in the financial system %y rendering #ario&s financial ser#ices to the comm&nity. "hey operate in close com%ination with each other. /in%n!i%l S.ste2: "he word AsystemA in the term Afinancial systemA implies a set of complex and closely connected or interlined instit&tions agents practices markets transactions claims and lia%ilities in the economy. "he financial system is concerned a%o&t money credit and finance-the three terms are intimately related yet are somewhat different from each other. 5ndian financial system consists of financial market financial instr&ments and financial intermediation Role; /+n!tions o1 /in%n!i%l S.ste2: . financial system performs the following f&nctions: O 5t ser#es as a link %etween sa#ers and in#estors. 5t helps in &tili*ing the mo%ili*ed sa#ings of scattered sa#ers in more efficient and effecti#e manner. 5t channelises flow of sa#ing into prod&cti#e in#estment. O 5t assists in the selection of the pro(ects to %e financed and also re#iews the performance of s&ch pro(ects periodically. O 5t pro#ides payment mechanism for exchange of goods and ser#ices. O 5t pro#ides a mechanism for the transfer of reso&rces across geographic %o&ndaries. O 5t pro#ides a mechanism for managing and controlling the risk in#ol#ed in mo%ili*ing sa#ings and allocating credit. O 5t promotes the process of capital formation %y %ringing together the s&pply of sa#ing and the demand for in#esti%le f&nds. O 5t helps in lowering the cost of transaction and increase ret&rns. =ed&ce cost moti#es people to sa#e more. O 5t pro#ides yo& detailed information to the operators- players in the market s&ch as indi#id&als %&siness ho&ses !o#ernments etc. Co2onents; Constit+ents o1 In&i%n /in%n!i%l s.ste2: "he following are the fo&r main components of 5ndian +inancial system 1. +inancial instit&tions 2. +inancial 7arkets N. +inancial 5nstr&ments-.ssets-Sec&rities ). +inancial Ser#ices. /in%n!i%l instit+tions: +inancial instit&tions are the intermediaries who facilitates smooth f&nctioning of the financial system %y making in#estors and %orrowers meet. "hey mo%ili*e sa#ings of the s&rpl&s &nits and allocate them in prod&cti#e acti#ities promising a %etter rate of ret&rn. +inancial instit&tions also pro#ide ser#ices to entities seeking ad#ises on #ario&s iss&es ranging from restr&ct&ring to di#ersification plans. "hey pro#ide whole range of ser#ices to the entities who want to raise f&nds from the markets elsewhere. +inancial instit&tions act as financial intermediaries %eca&se they act as middlemen %etween sa#ers and %orrowers. $ere these financial instit&tions may %e of Banking or Non-Banking instit&tions. /in%n!i%l M%r,ets: +inance is a prere,&isite for modern %&siness and financial instit&tions play a #ital role in economic system. 5tPs thro&gh financial markets the financial system of an economy works. "he main f&nctions of financial markets are: 1. to facilitate creation and allocation of credit and li,&idity? 2. to ser#e as intermediaries for mo%ili*ation of sa#ings? N. to assist process of %alanced economic growth? ). to pro#ide financial con#enience /in%n!i%l Instr+2ents .nother important constit&ent of financial system is financial instr&ments. "hey represent a claim against the f&t&re income and wealth of others. 5t will %e a claim against a person or an instit&tions for the payment of the some of the money at a specified f&t&re date. /in%n!i%l Servi!es: 9fficiency of emerging financial system largely depends &pon the ,&ality and #ariety of financial ser#ices pro#ided %y financial intermediaries. "he term financial ser#ices can %e defined as Aacti#ites %enefits and satisfaction connected with sale of money that offers to &sers and c&stomers financial related #al&eA. 4re're1or2s 4h%se Entil the early 1CC:s the role of the financial system in 5ndia was primarily restricted to the f&nction of channelling reso&rces from the s&rpl&s to deficit sectors. $hereas the financial system performed this role reasona%ly well its operations came to %e marked %y some serio&s deficiencies o#er the years. "he %anking sector s&ffered from lack of competition low capital %ase low Prod&cti#ity and high intermediation cost. .fter the nationali*ation of large %anks in 1C;C and 1CD: the !o#ernment-owned %anks dominated the %anking sector. "he role of technology was minimal and the ,&ality of ser#ice was not gi#en ade,&ate importance. Banks also did not follow proper risk management systems and the pr&dential standards were weak. .ll these res<ed in poor asset ,&ality and low profita%ility. .mong non-%anking financial intermediaries de#elopment finance instit&tions <3+5s> operated in an o#er-protected en#ironment with most of the f&nding coming from ass&red so&rces at concessional terms. 5n the ins&rance sector there was little competition. "he m&t&al f&nd ind&stry also s&ffered from lack of competition and was dominated for long %y one instit&tion #i*. the Enit "r&st of 5ndia. Non-%anking financial companies <NB+6s> grew rapidly %&t there was no reg&lation of their asset side. +inancial markets were characteri*ed %y control o#er pricing of financial assets %arriers to entry high transaction costs and restrictions on mo#ement of f&nds-participants %etween the market segments. "his apart from inhi%iting the de#elopment of the markets also affected their efficiency. /in%n!i%l Se!tor Re1or2s in In&i% 5t was in this %ackdrop that wide-ranging financial sector reforms in 5ndia were introd&ced as an integral part of the economic reforms initiated in the early 1CC:s with a #iew to impro#ing the macroeconomic performance of the economy. "he reforms in the financial sector foc&sed on creating efficient and sta%le financial instit&tions and markets. "he approach to financial sector reforms in 5ndia was one of grad&al and non-disr&pti#e progress thro&gh a cons<ati#e process. "he =eser#e Bank has %een consistently working towards setting an ena%ling reg&latory framework with prompt and effecti#e s&per#ision de#elopment of technological and instit&tional infrastr&ct&re as well as changing the interface with the market participants thro&gh a cons<ati#e process. Persistent efforts ha#e %een made towards adoption of international %enchmarks as appropriate to 5ndian conditions. $hile certain changes in the legal infrastr&ct&re are yet to %e effected the de#elopments so far ha#e %ro&ght the 5ndian financial system closer to glo%al standards. "he reform of the interest regime constit&tes an integral part of the financial sector reform. $ith the onset of financial sector reforms the interest rate regime has %een largely dereg&lated with a #iew towards %etter price disco#ery and efficient reso&rce allocation. 5nitially steps were taken to de#elop the domestic money market and freeing of the money market rates. "he interest rates offered on !o#ernment sec&rities were progressi#ely raised so that the !o#ernment %orrowing co&ld %e carried o&t at market-related rates. 5n respect of %anks a ma(or effort was &ndertaken to simplify the administered str&ct&re of interest rates. Banks now ha#e s&fficient flexi%ility to decide their deposit and lending rate str&ct&res and manage their assets and lia%ilities accordingly. .t present apart from sa#ings acco&nt and N=9 deposit on the deposit side and export credit and small loans on the lending side all other interest rates are dereg&lated. 5ndian %anking system operated for a long time with high reser#e re,&irements %oth in the form of 6ash =eser#e =atio <6==> and Stat&tory Li,&idity =atio <SL=>. "his was a conse,&ence of the high fiscal deficit and a high degree of monetisation of fiscal deficit. "he efforts in the recent period ha#e %een to lower %oth the 6== and SL=. "he stat&tory minim&m of 2N per cent for SL= has already %een reached and while the =eser#e Bank contin&es to p&rs&e its medi&m-term o%(ecti#e of red&cing the 6== to the stat&tory minim&m le#el of ) per cent. .s part of the reforms programme d&e attention has %een gi#en to di#ersification of ownership leading to greater market acco&nta%ility and impro#ed efficiency. 5nitially there was inf&sion of capital %y the !o#ernment in p&%lic sector %anks which was followed %y expanding the capital %ase with e,&ity participation %y the pri#ate in#estors. "his was followed %y a red&ction in the !o#ernment shareholding in p&%lic sector %anks to H1 per cent. 6onse,&ently the share of the p&%lic sector %anks in the aggregate assets of the %anking sector has come down from C: per cent in 1CC1 to aro&nd QH per cent in2::). $ith a #iew to enhancing efficiency and prod&cti#ity thro&gh competition g&idelines were laid down for esta%lishment of new %anks in the pri#ate sector and the foreign %anks ha#e %een allowed more li%eral entry. Since 1CCN twel#e new pri#ate sector %anks ha#e %een set &p. .s a ma(or step towards enhancing competition in the %anking sector foreign direct in#estment in the pri#ate sector %anks is now allowed &p to Q) per cent s&%(ect to conformity with the g&idelines iss&ed from time to time. 6oncl&sion: "he 5ndian financial system has &ndergone str&ct&ral transformation o#er the past decade. "he financial sector has ac,&ired strength efficiency and sta%ility %y the com%ined effect of competition reg&latory meas&res and policy en#ironment. $hile competition consolidation and con#ergence ha#e %een recogni*ed as the key dri#ers of the %anking sector in the coming years DRM2- : 2.-. O4ERATIONS MANAGEMENT 1. 3escri%e the different types of man&fact&ring systems with s&ita%le examples . man&fact&ring system is an approach to making prod&cts that is %ased &pon se#eral factors. "hese incl&de how m&ch of the prod&ct is needed how ,&ickly the prod&ct m&st %e prod&ced and how &ni,&e the prod&ct m&st %e to ens&re s&fficient sales. 7an&fact&ring systems incl&de c&stom assem%ly flexi%le intermittent reconfig&ra%le (&st-in-time and lean man&fact&ring systems. 6&stom man&fact&ring is the original form of prod&ction. 5t is the making of &ni,&e items one at a time %y employing the skills of a single craftsman. 6raftsmen might work alongside one another %&t they do not work together as a team %eca&se one person completes the man&fact&re of an indi#id&al item. "his is in contrast with an assem%ly man&fact&ring system in which each worker contri%&tes one or more actions that are re,&ired in the man&fact&ring process. "his action might %e repeated e#ery few seconds or for longer inter#als depending on the complexity of the task. "his also is referred to as a mass-prod&ction man&fact&ring system and it typically #al&es speed and &niformity. "he draw%acks to mass-prod&ction man&fact&ring systems are the diffic<y of ass&ring the correct s&pply of prod&cts in real time and %eing &na%le to pro#ide c&stomi*ed prod&ct offerings. +lexi%le man&fact&ring proposes a sol&tion to prod&cing too m&ch or too little of the prod&ct. "his method also ena%les a man&fact&rer to respond to cons&mer demand for c&stomi*ed prod&cts. 5t is more expensi#e to tool a flexi%le man&fact&ring system. 5ntermittent man&fact&ring in which the same item is made repeatedly might employ a reconfig&ra%le man&fact&ring system. "his is so that different items can %e mass-prod&ced one type of item at a time. "here is a trade-off with flexi%le man&fact&ring systems. "he red&ndancy of f&nctions in tooling systems adds costs in exchange for flexi%ility so the initial capital o&tlay might %e higher. "he goal of (&st-in-time prod&ction is to eliminate in#entory. 6arrying more in#entory than is needed adds to o#erhead costs. +or example prod&cing too many of a partic&lar model of a&tomo%ile res<s in &nsold #ehicles depreciating on the car sellers lot. "he storage of &nsold items also can %e costly in terms of space and money. 6on#ersely r&nning o&t of in#entory ad#ersely affects sales %eca&se c&stomers will go to a competitor if a partic&lar item is not a#aila%le when the c&stomer is ready to %&y. Lean man&fact&ring is often employed in tandem with (&st-in-time prod&ction methods. .ltho&gh it is a man&fact&ring system lean man&fact&ring is act&ally a strategy that foc&ses on eliminating &nnecessary or wastef&l elements of the man&fact&ring process and achie#ing maxim&m efficiency. "his strategy can %e &sed in tandem with other man&fact&ring systems to #arying degrees depending &pon the system. The t.es o1 2%n+1%!t+ring s.ste2s %re %s 1ollows: "he types of prod&ction system are gro&ped &nder two categories #i*. 1. 5ntermittent prod&ction system and 2. 6ontin&o&s prod&ction system. Inter2ittent ro&+!tion s.ste2 5ntermittent means something that starts <initiates> and stops <halts> at irreg&lar <&nfixed> inter#als <time gaps>.5n the intermittent prod&ction system goods are prod&ced %ased on c&stomerPs orders. "hese goods are prod&ced on a small scale. "he flow of prod&ction is intermittent <irreg&lar>. 5n other words the flow of prod&ction is not contin&o&s. 5n this system large #arieties of prod&cts are prod&ced. "hese prod&cts are of different si*es. "he design of these prod&cts goes on changing. 5t keeps changing according to the design and si*e of the prod&ct. "herefore this system is #ery flexi%le. +ollowing are examples on the intermittent prod&ction system. Please refer a%o#e chart while reading examples gi#en %elow. 1. "he work of a goldsmith is p&rely %ased on the fre,&ency of his c&stomerPs orders. "he goldsmith makes goods <ornaments> on a small-scale %asis as per his c&stomerPs re,&irements. Bere ornaments are not done on a contin&o&s %asis. 2. Similarly the work of a tailor is also %ased on the n&m%er of orders he gets from his c&stomers. "he clothes are stitched for e#ery c&stomer independently %y the tailor as per onePs meas&rement and si*e. !oods <stitched clothes> are made on a limited scale and is proportional to the n&m%er of orders recei#ed from c&stomers. Bere stitching is not done on a contin&o&s %asis. "he characteristics of an intermittent prod&ction system are listed as follows: 1. "he flow of prod&ction is not contin&o&s. 5t is intermittent. 2. $ide #arieties of prod&cts are prod&ced. N. "he #ol&me of prod&ction is small. ). !eneral p&rpose machines are &sed. "hese machines can %e &sed to prod&ce different types of prod&cts. H. "he se,&ence of operation goes on changing as per the design of the prod&ct. ;. "he ,&antity si*e shape design etc. of the prod&ct depends on the c&stomerPs orders. 4ro<e!t ro&+!tion 1lows Bere in pro(ect prod&ction flows company accepts a single complex order or contract. "he order m&st %e completed within a gi#en period of time and at an estimated cost. 9xamples of pro(ect prod&ction flows mainly incl&de constr&ction of airports dams roads %&ildings ship%&ilding etc 6haracteristics: 1. "he re,&irement of reso&rces is not same <it #aries>. !enerally the reso&rce re,&irement at the %eginning is low. "hen in mid of prod&ction the re,&irement increases. +inally it slows down when the pro(ect is near its completion phase. 2. 7any agencies are in#ol#ed in the pro(ect. 9ach agency performs speciali*ed (o%s. Bere coordination %etween agencies is important %eca&se all (o%s are interrelated. N. 3elays take place in completion of pro(ects d&e to its complexity and massi#eness. ). .s ro&ting and sched&ling changes with fresh orders proper inspection is re,&ired at each stage of prod&ction. =o00ing ro&+!tion 1lows Bere in (o%%ing prod&ction flows company accepts a contract to prod&ce either one or few &nits of a prod&ct strictly as per specifications gi#en %y the c&stomer. "he prod&ct is prod&ced within a gi#en period and at a fixed cost. "his cost is fixed at the time of signing the contract. 9xamples of s&ch (o%%ing prod&ction flows incl&de ser#ices gi#en %y repair shops tailoring shops man&fact&rer of special machine tools etc 6haracteristics: 1. "he prod&ction of items takes place in small lots. Sometimes only one prod&ct is prod&ced at one time. 2. "he items are man&fact&red strictly as per c&stomerPs specifications. N. Bighly skilled la%o&r is re,&ired to perform speciali*ed (o%s. ). "here is disproportionate man&fact&ring cycle time. +or e.g. the time needed to design the prod&ct may %e more than the man&fact&ring time. 8%t!h ro&+!tion 1lows 5n %atch prod&ction flows the prod&ction sched&le is decided according to specific orders or are %ased on the demand forecasts. Bere the prod&ction of items takes place in lots or %atches. . prod&ct is di#ided into different (o%s. .ll (o%s of one %atch of prod&ction m&st %e completed %efore starting the next %atch of prod&ction. 9xamples of %atch prod&ction flows incl&de man&fact&ring of dr&gs and pharmace&ticals medi&m and hea#y machineries etc. 6haracteristics: 1. "he prod&cts are made and kept in stock &ntil their demand arises in the market. 2. !eneral p&rpose machines and handling e,&ipments which can do many different (o%s ,&ickly are installed. "his is %eca&se large #arieties of items are to %e prod&ced. N. "here is a possi%ility of large work-in-progress d&e to many reasons. ). "here is a need for detailed prod&ction planning and control. Contin+o+s ro&+!tion s.ste2 6ontin&o&s means something that operates constantly witho&t any irreg&larities or fre,&ent halts. 5n the contin&o&s prod&ction system goods are prod&ced constantly as per demand forecast. !oods are prod&ced on a large scale for stocking and selling. "hey are not prod&ced on c&stomerPs orders. Bere the inp&ts and o&tp&ts are standardi*ed along with the prod&ction process and se,&ence. +ollowing are examples on the contin&o&s prod&ction system. Please refer a%o#e chart while reading examples gi#en %elow. 1. "he prod&ction system of a food ind&stry is p&rely %ased on the demand forecast. Bere a large-scale prod&ction of food takes place. 5t is also a contin&o&s prod&ction. 2. Similarly the prod&ction and processing system of a f&el ind&stry is also p&rely %ased on demand forecast. 6r&de oil and other raw so&rces are processed contin&o&sly on a large scale to yield &sa%le form of f&el and compensate glo%al energy demand. "he characteristics of a contin&o&s prod&ction system are listed as follows: 1. "he flow of prod&ction is contin&o&s. 5t is not intermittent. 2. "he prod&cts are standardi*ed. N. "he prod&cts are prod&ced on predetermined ,&ality standards. ). "he prod&cts are prod&ced in anticipation of demand. H. Standardi*ed ro&ting sheets and sched&les are prepared. "he types of contin&o&s prod&ction system incl&de: 1. 7ass prod&ction flows and 2. Process prod&ction flows. M%ss ro&+!tion 1lows Bere company prod&ces different types of prod&cts on a large-scale and stock them in wareho&ses &ntil they are demanded in the market. "he goods are prod&ced either with the help of a single operation or &ses a series of operations. 9.g. of mass prod&ction is the prod&ction of toothpastes soaps pens etc. 6haracteristics: 1. "here is a contin&o&s flow of prod&ction. Bowe#er this depends on the demand in the market. 2. Bere there is limited work-in-progress. N. S&per#ision is easy %eca&se only few instr&ctions are necessary. ). "he material handling is done mostly %y machines i.e. con#eyors and a&tomatic transfer machines. H. "he flow of materials is contin&o&s. "here is little or no ,&e&ing at any stage of prod&ction. 4ro!ess ro&+!tion 1lows Bere a single prod&ct is prod&ced and stocked in wareho&ses &ntil it is demanded in the market. "he flexi%ility of these plants is almost *ero %eca&se only one prod&ct can %e prod&ced. 9xamples of these plants incl&de steel cement paper s&gar etc. 6haracteristics: 1. "here is a highly mechani*ed system for handling materials. 6on#eyors and a&tomatic transfer machines are &sed to mo#e the materials from one stage to another. 2. Low-skilled la%o&r and skilled technicians are re,&ired. N. "here is #ery less work-in-progress %eca&se material flow is contin&o&s. ). "he prod&ction planning and sched&ling can %e decided well in ad#ance. H. "he f&ll prod&ction system is designed to prod&ce only one specific type of item. 3rite Notes on "i# M%teri%l Re9+ire2ent 4l%nning "ii# C%%!it. Re9+ire2ent 4l%nning 7aterial re,&irements planning <7=P> is a comp&ter-%ased in#entory management system designed to assist prod&ction managers in sched&ling and placing orders for items of dependent demand. 3ependent demand items are components of finished goods's&ch as raw materials component parts and s&%assem%lies'for which the amo&nt of in#entory needed depends on the le#el of prod&ction of the final prod&ct. +or example in a plant that man&fact&red %icycles dependent demand in#entory items might incl&de al&min&m tires seats and %ike chains. "he first 7=P systems of in#entory management e#ol#ed in the 1C):s and 1CH:s. "hey &sed mainframe comp&ters to explode information from a %ill of materials for a certain finished prod&ct into a prod&ction and p&rchasing plan for components. Before long 7=P was expanded to incl&de information feed%ack loops so that prod&ction personnel co&ld change and &pdate the inp&ts into the system as needed. "he next generation of 7=P known as man&fact&ring reso&rces planning or 7=P 55 also incorporated marketing finance acco&nting engineering and h&man reso&rces aspects into the planning process. . related concept that expands on 7=P is enterprise reso&rces planning <9=P> which &ses comp&ter technology to link the #ario&s f&nctional areas across an entire %&siness enterprise. 7=P works %ackward from a prod&ction plan for finished goods to de#elop re,&irements for components and raw materials. 7=P %egins with a sched&le for finished goods that is con#erted into a sched&le of re,&irements for the s&%assem%lies the component parts and the raw materials needed to prod&ce the final prod&ct within the esta%lished sched&le. 7=P is designed to answer three ,&estions: what is needed4 how uch is needed4 and when is it needed4A 7=P %reaks down in#entory re,&irements into planning periods so that prod&ction can %e completed in a timely manner while in#entory le#els'and related carrying costs'are kept to a minim&m. 5mplemented and &sed properly it can help prod&ction managers plan for capacity needs and allocate prod&ction time. B&t 7=P systems can %e time cons&ming and costly to implement which may p&t them o&t of range for some small %&sinesses. 5n addition the information that comes o&t of an 7=P system is only as good as the information that goes into it. 6ompanies m&st maintain c&rrent and acc&rate %ills of materials part n&m%ers and in#entory records if they are to reali*e the potential %enefits of 7=P. MR4 IN4UTS "he information inp&t into 7=P systems comes from three main so&rces: a %ill of materials a master sched&le and an in#entory records file. "he %ill of materials is a listing of all the raw materials component parts s&%assem%lies and assem%lies re,&ired to prod&ce one &nit of a specific finished prod&ct. 9ach different prod&ct made %y a gi#en man&fact&rer will ha#e its own separate %ill of materials. "he %ill of materials is arranged in a hierarchy so that managers can see what materials are needed to complete each le#el of prod&ction. 7=P &ses the %ill of materials to determine the ,&antity of each component that is needed to prod&ce a certain n&m%er of finished prod&cts. +rom this ,&antity the system s&%tracts the ,&antity of that item already in in#entory to determine order re,&irements. "he master sched&le o&tlines the anticipated prod&ction acti#ities of the plant. 3e#eloped &sing %oth internal forecasts and external orders it states the ,&antity of each prod&ct that will %e man&fact&red and the time frame in which they will %e needed. "he master sched&le separates the planning hori*on into time A%&cketsA which are &s&ally calendar weeks. "he sched&le m&st co#er a time frame long eno&gh to prod&ce the final prod&ct. "his total prod&ction time is e,&al to the s&m of the lead times of all the related fa%rication and assem%ly operations. 5t is important to note that master sched&les are often generated according to demand and witho&t regard to capacity. .n 7=P system cannot tell in ad#ance if a sched&le is not feasi%le so managers may ha#e to r&n se#eral possi%ilities thro&gh the system %efore they find one that works. "he in#entory records file pro#ides an acco&nting of how m&ch in#entory is already on hand or on order and th&s sho&ld %e s&%tracted from the material re,&irements. "he in#entory records file is &sed to track information on the stat&s of each item %y time period. "his incl&des gross re,&irements sched&led receipts and the expected amo&nt on hand. 5t incl&des other details for each item as well like the s&pplier the lead- time and the lot si*e. MR4 4ROCESSING Esing information c&lled from the %ill of materials master sched&le and in#entory records file an 7=P system determines the net re,&irements for raw materials component parts and s&%assem%lies for each period on the planning hori*on. 7=P processing first determines gross material re,&irements then s&%tracts o&t the in#entory on hand and adds %ack in the safety stock in order to comp&te the net re,&irements. "he main o&tp&ts from 7=P incl&de three primary reports and three secondary reports. "he primary reports consist of: planned order sched&les which o&tline the ,&antity and timing of f&t&re material orders? order releases which a&thori*e orders to %e made? and changes to planned orders which might incl&de cancellations or re#isions of the ,&antity or time frame. "he secondary reports generated %y 7=P incl&de: performance control reports which are &sed to track pro%lems like missed deli#ery dates and stock o&ts in order to e#al&ate system performance? planning reports which can %e &sed in forecasting f&t&re in#entory re,&irements? and exception reports which call managersP attention to ma(or pro%lems like late orders or excessi#e scrap rates. .ltho&gh working %ackward from the prod&ction plan for a finished prod&ct to determine the re,&irements for components may seem like a simple process it can act&ally %e extremely complicated especially when some raw materials or parts are &sed in a n&m%er of different prod&cts. +re,&ent changes in prod&ct design order ,&antities or prod&ction sched&le also complicate matters. "he importance of comp&ter power is e#ident when one considers the n&m%er of materials sched&les that m&st %e tracked. 8ENE/ITS AND DRA38AC(S O/ MR4 7=P systems offer a n&m%er of potential %enefits to man&fact&ring firms. Some of the main %enefits incl&de helping prod&ction managers to minimi*e in#entory le#els and the associated carrying costs track material re,&irements determine the most economical lot si*es for orders comp&te ,&antities needed as safety stock allocate prod&ction time among #ario&s prod&cts and plan for f&t&re capacity needs. "he information generated %y 7=P systems is &sef&l in other areas as well. "here is a large range of people in a man&fact&ring company that may find the &se of information pro#ided %y an 7=P system #ery helpf&l. Prod&ction planners are o%#io&s &sers of 7=P as are prod&ction managers who m&st %alance workloads across departments and make decisions a%o&t sched&ling work. Plant foremen responsi%le for iss&ing work orders and maintaining prod&ction sched&les also rely hea#ily on 7=P o&tp&t. 1ther &sers incl&de c&stomer ser#ice representati#es who need to %e a%le to pro#ide pro(ected deli#ery dates p&rchasing managers and in#entory managers. 7=P systems also ha#e se#eral potential draw%acks. +irst 7=P relies &pon acc&rate inp&t information. 5f a small %&siness has not maintained good in#entory records or has not &pdated its %ills of materials with all rele#ant changes it may enco&nter serio&s pro%lems with the o&tp&ts of its 7=P system. "he pro%lems co&ld range from missing parts and excessi#e order ,&antities to sched&le delays and missed deli#ery dates. .t a minim&m an 7=P system m&st ha#e an acc&rate master prod&ction sched&le good lead-time estimates and c&rrent in#entory records in order to f&nction effecti#ely and prod&ce &sef&l information. .nother potential draw%ack associated with 7=P is that the systems can %e diffic< time cons&ming and costly to implement. 7any %&sinesses enco&nter resistance from employees when they try to implement 7=P. +or example employees who once got %y with sloppy record keeping may resent the discipline 7=P re,&ires. 1r departments that %ecame acc&stomed to hoarding parts in case of in#entory shortages might find it diffic< to tr&st the system and let go of that ha%it. "he key to making 7=P implementation work is to pro#ide training and ed&cation for all affected employees. 5t is important early on to identify the key personnel whose power %ase will %e affected %y a new 7=P system. "hese people m&st %e among the first to %e con#inced of the merits of the new system so that they may %&y into the plan. Fey personnel m&st %e con#inced that they personally will %e %etter ser#ed %y the new system than %y any alternate system. 1ne way to impro#e employee acceptance of 7=P systems is to ad(&st reward systems to reflect prod&ction and in#entory management goals. C%%!it. re9+ire2ent l%nning is the process of determining the prod&ction capacity needed %y an organi*ation to meet changing demands for its prod&cts. 5n the context of capacity planning design capacity is the maxim&m amo&nt of work that an organi*ation is capa%le of completing in a gi#en period. 9ffecti#e capacity is the maxim&m amo&nt of work that an organi*ation is capa%le of completing in a gi#en period d&e to constraints s&ch as ,&ality pro%lems delays material handling etc. "he phrase is also &sed in %&siness comp&ting as a synonym for capacity management. . discrepancy %etween the capacity of an organi*ation and the demands of its c&stomers res<s in inefficiency either in &nder-&tili*ed reso&rces or &nf&lfilled c&stomers. "he goal of capacity planning is to minimi*e this discrepancy. 3emand for an organi*ationPs capacity #aries %ased on changes in prod&ction o&tp&t s&ch as increasing or decreasing the prod&ction ,&antity of an existing prod&ct or prod&cing new prod&cts. Better &tili*ation of existing capacity can %e accomplished thro&gh impro#ements in o#erall e,&ipment effecti#eness <199>. 6apacity can %e increased thro&gh introd&cing new techni,&es e,&ipment and materials increasing the n&m%er of workers or machines increasing the n&m%er of shifts or ac,&iring additional prod&ction facilities. 6apacity is calc&lated as <n&m%er of machines or workers> R <n&m%er of shifts> R <&tili*ation> R <efficiency>. "he %road classes of capacity planning are lead strategy lag strategy match strategy and ad(&stment strategy. $e%& str%teg. is adding capacity in anticipation of an increase in demand. Lead strategy is an aggressi#e strategy with the goal of l&ring c&stomers away from the companyPs competitors %y impro#ing the ser#ice le#el and red&cing leadtime. 5t is also a strategy aimed at red&cing stocko&t costs. . large capacity does not necessarily imply highin#entory le#els %&t it can imply in higher cycle stock costs. 9xcess capacity can also %e rented to other companies. $%g str%teg. refers to adding capacity only after the organi*ation is r&nning at f&ll capacity or %eyond d&e to increase in demand <North 6arolina State Eni#ersity 2::;>. "his is a more conser#ati#e strategy. 5t decreases the risk of waste %&t it may res< in the loss of possi%le c&stomers either %y stocko&t or low ser#ice le#els. M%t!h str%teg. is adding capacity in small amo&nts in response to changing demand in the market. "his is a more moderate strategy. A&<+st2ent str%teg. is adding or red&cing capacity in small or large amo&nts d&e to cons&merPs demand or d&e to ma(or changes to prod&ct or system architect&re. C%%!it. 5n the context of systems engineering capacity planning
is &sed d&ring system design and system performance monitoring. 6apacity planning is long-term decision that esta%lishes a firmPs o#erall le#el of reso&rces. 5t extends o#er time hori*on long eno&gh to o%tain reso&rces. 6apacity decisions affect the prod&ction lead time c&stomer responsi#eness operating cost and company a%ility to compete. 5nade,&ate capacity planning can lead to the loss of the c&stomer and %&siness. 9xcess capacity can drain the companyPs reso&rces and pre#ent in#estments into more l&crati#e #ent&res. "he ,&estion of when capacity sho&ld %e increased and %y how m&ch are the critical decisions. C%%!it. > %v%il%0le or re9+ire&? +rom a sched&ling perspecti#e it is #ery easy to determine how m&ch capacity <or time> will %e re,&ired to man&fact&re a ,&antity of parts. Simply m<iply the standard cycle time %y the n&m%er of parts and di#ide %y the part or process 199 S. 5f prod&ction is sched&led to prod&ce H:: pieces of prod&ct . on a machine ha#ing a cycle time of N: seconds and the 199 for the process is DHS then the time to prod&ce the parts wo&ld %e calc&lated as follows: <H:: parts R N: seconds> - DHS T 1Q;)Q.1 seconds "he 199 index makes it easy to determine whether we ha#e ample capacity to r&n the re,&ired prod&ction. 5n this example ).2 ho&rs at standard #ers&s ).C ho&rs %ased on the 199 index. By repeating this process for all the parts that r&n thro&gh a gi#en machine it is possi%le to determine the total capacity re,&ired to r&n prod&ction. C%%!it. %v%il%0le $hen considering new work for a piece of e,&ipment or machinery knowing how m&ch capacity is a#aila%le to r&n the work will e#ent&ally %ecome part of the o#erall process. "ypically an ann&al forecast is &sed to determine how many ho&rs per year are re,&ired. 5t is also possi%le that seasonal infl&ences exist within the machine re,&irements so a ,&arterly or e#en monthly capacity report may %e re,&ired. "o calc&late the total capacity a#aila%le the #ol&me is ad(&sted according to the period %eing considered. "he a#aila%le capacity is difference %etween the re,&ired capacity and planned operating capacity. DRM2@ : 2.@. DECISION SU44ORT S*STEM 1. 9xplain the applications of 3SS in a %&siness organi*ation. . decision s&pport system <3SS> is a comp&ter-%ased information system that s&pports %&siness or organi*ational decision-making acti#ities. 3SSs ser#e the management operations and planning le#els of an organi*ation and help to make decisions which may %e rapidly changing and not easily specified in ad#ance. 3SSs incl&de knowledge-%ased systems. . properly designed 3SS is an interacti#e software-%ased system intended to help decision makers compile &sef&l information from a com%ination of raw data doc&ments personal knowledge or %&siness models to identify and sol#e pro%lems and make decisions. "ypical information that a decision s&pport application might gather and present are: in#entories of information assets <incl&ding legacy and relational data so&rces c&%es data wareho&ses and data marts> comparati#e sales fig&res %etween one period and the next Pro(ected re#en&e fig&res %ased on prod&ct sales ass&mptions. T%5ono2. .s with the definition there is no &ni#ersally-accepted taxonomy of 3SS either. 3ifferent a&thors propose different classifications. Esing the relationship with the &ser as the criterion Baettenschwiler differentiates Passi#e 3SS .cti#e 3SS 6ooperati#e 3SS . passi#e 3SS is a system that aids the process of decision making %&t that cannot %ring o&t explicit decision s&ggestions or sol&tions. .n acti#e 3SS can %ring o&t s&ch decision s&ggestions or sol&tions. . cooperati#e 3SS allows the decision maker <or its ad#isor> to modify complete or refine the decision s&ggestions pro#ided %y the system %efore sending them %ack to the system for #alidation. .nother taxonomy for 3SS has %een created %y 3aniel Power. Esing the mode of assistance as the criterion Power differentiates comm&nication-dri#en 3SS data-dri#en 3SS doc&ment-dri#en 3SS knowledge-dri#en 3SS and model-dri#en 3SS. . comm&nication-dri#en 3SS s&pports more than one person working on a shared task? examples incl&de integrated tools like 7icrosoftPs Net7eeting or !roo#e . data-dri#en 3SS or data-oriented 3SS emphasi*es access to and manip&lation of a time series of internal company data and sometimes external data. . doc&ment-dri#en 3SS manages retrie#es and manip&lates &nstr&ct&red information in a #ariety of electronic formats. . knowledge-dri#en 3SS pro#ides speciali*ed pro%lem-sol#ing expertise stored as facts r&les proced&res or in similar str&ct&res. . model-dri#en 3SS emphasi*es access to and manip&lation of a statistical financial optimi*ation or sim&lation model. 7odel-dri#en 3SS &se data and parameters pro#ided %y &sers to assist decision makers in analy*ing a sit&ation? they are not necessarily data-intensi#e. 3icodess is an example of an open so&rce model-dri#en 3SS generator. Co2onents o1 DSS "hree f&ndamental components of 3SS architect&re are: 1. "he data%ase <or knowledge %ase> 2. "he model <i.e. the decision context and &ser criteria> N. "he &ser interface "he &sers themsel#es are also important components of the architect&re. 3SS components may %e classified as: 1. 5np&ts: +actors n&m%ers and characteristics to analy*e 2. Eser Fnowledge and 9xpertise: 5np&ts re,&iring man&al analysis %y the &ser N. 1&tp&ts: "ransformed data from which 3SS AdecisionsA are generated ). 3ecisions: =es<s generated %y the 3SS %ased on &ser criteria Ali!%tion .s mentioned a%o#e there are theoretical possi%ilities of %&ilding s&ch systems in any knowledge domain. U 1ne example is the clinical decision s&pport system for medical diagnosis. 1ther examples incl&de a %ank loan officer #erifying the credit of a loan applicant or an engineering firm that has %ids on se#eral pro(ects and wants to know if they can %e competiti#e with their costs. U 3SS is extensi#ely &sed in %&siness and management. 9xec&ti#e dash%oard and other %&siness performance software allow faster decision making identification of negati#e trends and %etter allocation of %&siness reso&rces. U . growing area of 3SS application concepts principles and techni,&es is in agric<&ral prod&ction marketing for s&staina%le de#elopment. +or example the 3SS.") package de#eloped thro&gh financial s&pport of ES.53 d&ring the D:Ps and C:Ps has allowed rapid assessment of se#eral agric<&ral prod&ction systems aro&nd the world to facilitate decision-making at the farm and policy le#els. "here are howe#er many constraints to the s&ccessf&l adoption on 3SS in agric<&re. U 3SS are also pre#alent in forest management where the long planning time frame demands specific re,&irements. .ll aspects of +orest management from log transportation har#est sched&ling to s&staina%ility and ecosystem protection ha#e %een addressed %y modern 3SSs. . comprehensi#e list and disc&ssion of all a#aila%le systems in forest management is %eing compiled &nder the 61S" action +orsys U . specific example concerns the 6anadian National =ailway system which tests its e,&ipment on a reg&lar %asis &sing a decision s&pport system. . pro%lem faced %y any railroad is worn-o&t or defecti#e rails which can res< in h&ndreds of derailments per year. Ender a 3SS 6N managed to decrease the incidence of derailments at the same time other companies were experiencing an increase. Benefits 5mpro#es personal efficiency Speed &p the process of decision making 5ncreases organi*ational control 9nco&rages exploration and disco#ery on the part of the decision maker Speeds &p pro%lem sol#ing in an organi*ation +acilitates interpersonal comm&nication Promotes learning or training !enerates new e#idence in s&pport of a decision 6reates a competiti#e ad#antage o#er competition =e#eals new approaches to thinking a%o&t the pro%lem space Belps a&tomate managerial processes 2. AD%t%0%se M%n%ge2ent S.ste2 A!t %s % DSS &evelo2ent toolB > Co22ent. .s one of the oldest components associated with comp&ters the data%ase management system or 3B7S is a comp&ter software program that is designed as the means of managing all data%ases that are c&rrently installed on a system hard dri#e or network. 3ifferent types of data%ase management systems exist with some of them designed for the o#ersight and proper control of data%ases that are config&red for specific p&rposes. .s the tool that is employed in the %road practice of managing data%ases the 3B7S is marketed in many forms. Some of the more pop&lar examples of these sol&tions incl&de 7icrosoft .ccess +ile7aker 3B2 and 1racle. .ll these prod&cts pro#ide for the creation of a series of rights or pri#ileges that can %e associated with a specific &ser. "his means that it is possi%le to designate one or more data%ase administrators who may control each f&nction as well as pro#ide other &sers with #ario&s le#els of administration rights. "his flexi%ility makes the task of &sing 3B7S methods to o#ersee a system something that can %e centrally controlled or allocated to se#eral different people. "here are fo&r essential elements that are fo&nd with (&st a%o&t e#ery example of 3B7S c&rrently on the market. "he first is the implementation of a modeling lang&age that ser#es to define the lang&age of each data%ase that is hosted #ia the system. "here are se#eral approaches c&rrently in &se with hierarchical network relational and o%(ect examples. 9ssentially the modeling lang&age ens&res the a%ility of the data%ases to comm&nicate with the 3B7S and th&s operate on the system. Second data str&ct&res also are administered %y the 3B7S. 9xamples of data that are organi*ed %y this f&nction are indi#id&al profiles or records files fields and their definitions and o%(ects s&ch as #is&al media. 3ata str&ct&res are what allows these systems to interact with the data witho&t ca&sing damage to the integrity of the data itself. . third component of 3B7S software is the data ,&ery lang&age. "his element is in#ol#ed in maintaining the sec&rity of the data%ase %y monitoring the &se of login data the assignment of access rights and pri#ileges and the definition of the criteria that m&st %e employed to add data to the system. "he data ,&ery lang&age works with the data str&ct&res to make s&re it is harder to inp&t irrele#ant data into any of the data%ases in &se on the system. Last a mechanism that allows for transactions is an essential %asic for any 3B7S. "his helps to allow m<iple and conc&rrent access to the data%ase %y m<iple &sers pre#ents the manip&lation of one record %y two &sers at the same time and pre#enting the creation of d&plicate records. DRM2C : 2.C. INTERNATIONA$ 8USINESS MANAGEMENT 1. E5l%in INCO Ter2s Lang&age is one of the most complex and important tools of 5nternational "rade. .s in any complex and sophisticated %&siness small changes in wording can ha#e a ma(or impact on all aspects of a %&siness agreement. $ord definitions often differ from ind&stry to ind&stry. "his is especially tr&e of !lo%al "rade. $here s&ch f&ndamental phrases as Adeli#eryA can ha#e a far different meaning in the %&siness than in the rest of the world. +or %&siness terminology to %e effecti#e phrases m&st mean the same thing thro&gho&t the ind&stry. "hat is why the 5nternational 6ham%er of 6ommerce created A5N61"9=7SA in 1CN;. INCOTERMS are designed to create a %ridge %etween different mem%ers of the ind&stry %y acting as a &niform lang&age they can &se. 9ach INCOTERM refers to a type of agreement for the p&rchase and shipping of goods internationally. "here are 11 different terms each of which helps &sers deal with different sit&ations in#ol#ing the mo#ement of goods. +or example the term +6. is often &sed with shipments in#ol#ing =o-=o or container transport. INCOTERMS also deal with the doc&mentation re,&ired for glo%al trade specifying which parties are responsi%le for which doc&ments. 3etermining the paperwork re,&ired to mo#e a shipment is an important (o% since re,&irements #ary so m&ch %etween co&ntries. "wo items howe#er are standard: the commercial in#oice and the packing list. INCOTERMS were created primarily for people inside the world of glo%al trade. 1&tsiders fre,&ently find them diffic< to &nderstand. Seemingly common words s&ch as Aresponsi%ilityA and Adeli#eryA ha#e different meanings in glo%al trade than they do in other sit&ations. 5n glo%al trade Adeli#eryA refers to the seller f&lfilling the o%ligation of the terms of sale or to completing a contract&al o%ligation. A3eli#eryA can occ&r while the merchandise is on a #essel on the high seas and the parties in#ol#ed are tho&sands of miles from the goods. 5n the end howe#er the terms wind &p %oiling down to a few %asic specifics 5t is essential for shippers to know the exact stat&s of their shipments in terms of ownership and responsi%ility. 5t is also #ital for sellers K %&yers to arrange ins&rance on their goods while the goods are in their AlegalA possession. Lack of ins&rance can res< in wasted time laws&its and %roken relationships. INCOTERMS can th&s ha#e a direct financial impact on a companyPs %&siness. $hat is important is not the acronyms %&t the %&siness res<s. 1ften companies like to %e in control of their freight. "hat %eing the case sellers of goods might choose to sell 65+ which gi#es them a good grasp of shipments mo#ing o&t of their co&ntry and %&yers may prefer to p&rchase +1B which gi#es them a tighter hold on goods mo#ing into their co&ntry. 5n this glossary wePll tell yo& what terms s&ch as 65+ and +1B mean and their impact on the trade process. 5n addition since we reali*e that most international %&yers and sellers do not handle goods themsel#es %&t work thro&gh c&stoms %rokers and freight forwarders wePll disc&ss how %oth fit into the terms &nder disc&ssion. INCOTERMS are most fre,&ently listed %y category. "erms %eginning with + refer to shipments where the primary cost of shipping is not paid for %y the seller. "erms %eginning with 6 deal with shipments where the seller pays for shipping. 9-terms occ&r when a sellerPs responsi%ilities are f&lfilled when goods are ready to depart from their facilities. 3 terms co#er shipments where the shipper-sellerPs responsi%ility ends when the goods arri#e at some specific point. Beca&se shipments are mo#ing into a co&ntry 3 terms &s&ally in#ol#e the ser#ices of a c&stoms %roker and a freight forwarder. 5n addition 3 terms also deal with the pier or docking charges fo&nd at #irt&ally all ports and determining who is responsi%le for each charge. =ecently the 566 changed %asic aspects of the definitions of a n&m%er of 5N61"9=7S %&yers and sellers sho&ld %e aware of this. "erms that ha#e changed ha#e a star alongside them. ED3 "ED'3or,s# 1ne of the simplest and most %asic shipment arrangements places the minim&m responsi%ility on the seller with greater responsi%ility on the %&yer. 5n an 9J-$orks transaction goods are %asically made a#aila%le for pick&p at the shipper-sellerPs factory or wareho&se and Adeli#eryA is accomplished when the merchandise is released to the consigneePs freight forwarder. "he %&yer is responsi%le for making arrangements with their forwarder for ins&rance export clearance and handling all other paperwork. /O8 "/ree On 8o%r&# 1ne of the most commonly &sed-and mis&sed-terms +1B means that the shipper-seller &ses his freight forwarder to mo#e the merchandise to the port or designated point of origin. "ho&gh fre,&ently &sed to descri%e inland mo#ement of cargo +1B specifically refers to ocean or inland waterway transportation of goods. A3eli#eryA is accomplished when the shipper-seller releases the goods to the %&yerPs forwarder. "he %&yerPs responsi%ility for ins&rance and transportation %egins at the same moment. /CA "/ree C%rrier# 5n this type of transaction the seller is responsi%le for arranging transportation %&t he is acting at the risk and the expense of the %&yer. $here in +1B the freight forwarder or carrier is the choice of the %&yer in +6. the seller chooses and works with the freight forwarder or the carrier. A3eli#eryA is accomplished at a predetermined port or destination point and the %&yer is responsi%le for 5ns&rance. /AS "/ree Alongsi&e Shi# 5n these transactions the %&yer %ears all the transportation costs and the risk of loss of goods. +.S re,&ires the shipper-seller to clear goods for export which is a re#ersal from past practices. 6ompanies selling on these terms will ordinarily &se their freight forwarder to clear the goods for export. A3eli#eryA is accomplished when the goods are t&rned o#er to the B&yers +orwarder for ins&rance and transportation. C/R "Cost %n& /reight# "his term formerly known as 6N+ <6K+> defines two distinct and separate responsi%ilities-one is dealing with the act&al cost of merchandise A6A and the other A+A refers to the freight charges to a predetermined destination point. 5t is the shipper-sellerPs responsi%ility to get goods from their door to the port of destination. A3eli#eryA is accomplished at this time. 5t is the %&yerPs responsi%ility to co#er ins&rance from the port of origin or port of shipment to %&yerPs door. !i#en that the shipper is responsi%le for transportation the shipper also chooses the forwarder. CI/ "CostE Ins+r%n!e %n& /reight# "his arrangement similar to 6+= %&t instead of the %&yer ins&ring the goods for the maritime phase of the #oyage the shipper-seller will ins&re the merchandise. 5n this arrangement the seller &s&ally chooses the forwarder. A3eli#eryA as a%o#e is accomplished at the port of destination. C4T "C%rri%ge 4%i& To# 5n 6P" transactions the shipper-seller has the same o%ligations fo&nd with 65+ with the addition that the seller has to %&y cargo ins&rance naming the %&yer as the ins&red while the goods are in transit. CI4 "C%rri%ge %n& Ins+r%n!e 4%i& To# "his term is primarily &sed for m<imodal transport. Beca&se it relies on the carrierPs ins&rance the shipper-seller is only re,&ired to p&rchase minim&m co#erage. $hen this partic&lar agreement is in force +reight +orwarders often act in effect as carriers. "he %&yerPs ins&rance is effecti#e when the goods are t&rned o#er to the +orwarder. DAT "Delivere& At Ter2in%l# "his term is &sed for any type of shipments. "he shipper-seller pays for carriage to the terminal except for costs related to import clearance and ass&mes all risks &p to the point that the goods are &nloaded at the terminal. DA4 "Delivere& At 4l%!e# 3.P term is &sed for any type of shipments. "he shipper-seller pays for carriage to the named place except for costs related to import clearance and ass&mes all risks prior to the point that the goods are ready for &nloading %y the %&yer. DD4 "Delivere& D+t. 4%i&# 33P term tend to %e &sed in intermodal or co&rier-type shipments. $here%y the shipper-seller is responsi%le for dealing with all the tasks in#ol#ed in mo#ing goods from the man&fact&ring plant to the %&yer-consigneePs door. 5t is the shipper-sellerPs responsi%ility to ins&re the goods and a%sor% all costs and risks incl&ding the payment of d&ty and fees. 2. Dis!+ss Intern%tion%l $%0or str%teg. in the resent &%. !onte5t 5ntrod&ction =e,&ire the esta%lishment of a separate inspection system for agric<&re. "he !o#ernment of Bangladesh indicated that ratification is not &nder consideration in #iew of the impractica%ility of carrying o&t la%o&r inspections in the co&ntry. "he !o#ernments of 6am%odia 6anada and 6ape 8erde stated that they do not en#isage ratification of the 6on#ention for the time %eing. Bowe#er the !o#ernment of 6ape 8erde indicated the need for technical assistance. 9mployment Policy 9mployment Policy 6on#ention 1C;) <No. 122> "he !o#ernment of Swit*erland confirmed that it had s&%mitted the 6on#ention to Parliament for ratification. "he State 6o&ncil appro#ed ratification on N: 7ay 2:12 and the National 6o&ncil will disc&ss the matter at its next session. "he !o#ernment of 7a&riti&s indicated that ratification of the 6on#ention will %e deferred &ntil after the adoption of the National 9mployment Policy and the esta%lishment of the rele#ant monitoring mechanisms. "he !o#ernments of Bahrain Botswana 6ape 8erde !am%ia 7alaysia and Samoa indicated that there are prospects for the ratification of the 6on#ention. "he !o#ernments of Fenya F&wait and So&th .frica indicated that ratification of the 6on#ention is not &nder consideration at this stage. "he !o#ernments of Bangladesh 9ritrea !am%ia Fenya 7alaysia and Samoa re,&ested technical assistance. "ripartite cons<ation "ripartite 6ons<ation <5nternational La%o&r Standards> 6on#ention 1CQ; <No. 1))> "he !o#ernments of 6ape 8erde 6&%a !am%ia 7yanmar Pap&a New !&inea Samoa E*%ekistan and Enited .ra% 9mirates indicated that there are prospects for the ratification of the 6on#ention. "echnical assistance was re,&ested %y the !o#ernments of Bahrain 9ritrea !am%ia Pap&a New !&inea Samoa and S&dan. 6oncl&sion "he 1ffice will follow &p on re,&ests made for technical assistance. "he standards strategy adopted %y the !o#erning Body in 2::H co#ers fo&r components: <1> standards policy? <2> the s&per#isory system? <N> standards and technical cooperation? and <)> information and comm&nication on the standards system. 5n No#em%er 2::Q the !o#erning Body appro#ed an interim plan of action for the implementation of the standards strategy. "his paper pro#ides an &pdate on the progress made since No#em%er 2:11 in the implementation of the standards strategy. 3e#eloping keeping &p to date and promoting 5L1 standards +ollow-&p to the action plan <2::;V11> to achie#e rapid and widespread ratification and effecti#e implementation of the 7aritime La%o&r 6on#ention 2::; 5n Septem%er 2::; the 1ffice started to implement a fi#e-year <2::;V11> action plan to achie#e rapid and widespread ratification and effecti#e implementation of the 7aritime La%o&r 6on#ention 2::; <7L6 2::;>. 5t was aimed at achie#ing %oth widespread ratification and effecti#e implementation of the 6on#ention. "he approach adopted has pro#ed to %e #ery s&ccessf&l in making the first of these o%(ecti#es achie#a%le: the essential precondition for widespread ratification was met in .&g&st 2:12 with the registration of the N:th ratification %y mem%er States with a total share of at least NN per cent of the world gross tonnage of ships. "he 7L6 2::; will enter into force on 2: .&g&st 2:1N and will apply to nearly ;: per cent of the worlds fleet and to the seafarers working on %oard ship. "his is a remarka%le o&tcome partic&larly since this is the first international la%o&r standard to incl&de re,&irements for flag States on working and li#ing conditions on %oard ship. "he n&m%er of ratifications has increased dramatically o#er the last 12 months as mem%er States ha#e completed their national tripartite cons<ations and the legal work necessary to ena%le the ratification of this comprehensi#e 6on#ention. "he glo%al nat&re of the sector means that widespread ratification partic&larly %y key port States and co&ntries from which the worlds seafaring force is drawn is essential to ens&re that the 6on#ention meets the twin goals of decent work for seafarers and a le#el playing field for shipowners. $hile there are some regions with comparati#ely few ratifications it is expected that a n&m%er of ratifications will %e deposited in the next 12 months partic&larly from mem%er States in 9&rope .sia and the Pacific and the .mericas. "he second o%(ecti#e of the action plan ens&ring effecti#e implementation has %een the foc&s of extensi#e efforts o#er the fi#e years of the action plan and partic&larly o#er the past 12 months. "his reflects the importance that the 6on#ention attaches to compliance and enforcement at the ship%oard le#el. "here was a need identified in 2::; to foc&s on capacity %&ilding in the maritime la%o&r inspection systems of flag and port States well in ad#ance of entry into force in order to address the immense workload of inspection and certification which was estimated in 2::; to %e of at least ):::: ships %efore the initial entry into force of the 6on#ention. "he 1ffice has de#eloped an array of training co&rses and workshops that are mainly deli#ered thro&gh the 5L1 5nternational "raining 6entre in "&rin <the "&rin 6entre>. Participants often drawn from the ind&stry and from go#ernments ha#e s&%se,&ently pro#ided training at the national or organi*ational le#el. "he 1ffice has also r&n workshops in cooperation with international seafarers and shipowners organi*ations to ens&re that capacity is also %&ilt in the sector. 5n addition the 1ffice has responded to re,&ests from mem%er States for assistance in de#eloping their capacity to carry o&t the legal work needed to mo#e towards the ratification of the 7L6 2::;. "his has in#ol#ed de#eloping model national pro#isions com%ined with legal implementation workshops at the "&rin 6entre to help %&ild national legal capacity. "here is a growing demand for these workshops partic&larly at the national and regional le#els with many more planned for 2:1N. 5n addition to these 5L1-sponsored acti#ities there has %een extensi#e acti#ity in the maritime ind&stry in all regions regarding the promotion and implementation of the 7L6 2::;. "hese acti#ities ha#e ranged from de#eloping training co&rses and online or #ideo mod&les to detailed man&als for inspections and checklists for flag State inspections related to the certification of 7L6 2::; compliance. "here has also %een acti#ity in the marine ins&rance sector to meet the re,&irements of the 7L6 2::;. 7oreo#er regional organi*ations are now de#eloping training workshops for inspectors. with comparati#ely few ratifications it is expected that a n&m%er of ratifications will %e deposited in the next 12 months partic&larly from mem%er States in 9&rope .sia and the Pacific and the .mericas. "he second o%(ecti#e of the action plan ens&ring effecti#e implementation has %een the foc&s of extensi#e efforts o#er the fi#e years of the action plan and partic&larly o#er the past 12 months. "his reflects the importance that the 6on#ention attaches to compliance and enforcement at the ship%oard le#el. "here was a need identified in 2::; to foc&s on capacity %&ilding in the maritime la%o&r inspection systems of flag and port States well in ad#ance of entry into force in order to address the immense workload of inspection and certification which was estimated in 2::; to %e of at least ):::: ships %efore the initial entry into force of the 6on#ention. "he 1ffice has de#eloped an array of training co&rses and workshops that are mainly deli#ered thro&gh the 5L1 5nternational "raining 6entre .frica. "hro&gh two pro(ects f&nded %y Sweden and the 9&ropean Enion <9E> training and g&idance materials ha#e %een prepared on the de#elopment of national 1SB programmes and on cond&cting a&dits on the implementation of the 5L1 !&idelines on occ&pational safety and health management systems <5L1V1SB 2::1>. . workshop for selected .frican co&ntries on impro#ing safety and health in mining held in the Enited =ep&%lic of "an*ania <7ay 2:12> was attended %y !o#ernment $orker and 9mployer participants from Botswana 9thiopia !hana Fenya 7alawi Nami%ia So&th .frica Enited =ep&%lic of "an*ania Eganda Wam%ia and Wim%a%we. "raining of trainer workshops &sing the $ork 5mpro#ements in Small 9nterprises <$5S9> methodology were held in Senegal and the Enited =ep&%lic of "an*ania. .merica "he "&rin 6entre pro#ided training on risk assessment in 9l Sal#ador. "he "rade Enion 6onfederation of the .mericas <"E6.> identified 1SB as a strategic priority at its second congress <Bra*il .pril 2:12>. .sia. "he 5L1 has promoted 6on#ention No. 1DQ thro&gh the 5L1-@apan m<i-%ilateral programme the 5L1-Forea Partnership Programme and the .S9.NV1SB Network <.S9.NV1SBN9"> which ha#e enco&raged the ratification and application of the 6on#ention. .ra% States. Bahrain organi*ed the +irst National 1cc&pational Safety and Bealth 6onference <7ay 2:12>. "he 5L1 ga#e a presentation on a pre#entati#e safety and health c<&re and pro#ided an analysis of the 2:12 comments of the 6ommittee of 9xperts on the .pplication of 6on#entions and =ecommendations <69.6=> on the application of 6on#ention No. 1HH in Bahrain. "he 1ffice thro&gh .6"-97P contin&ed to raise awareness among employers organi*ations of the importance of 1SB and to help them pro#ide 1SB-related ser#ices for their mem%ers. 6apacity-%&ilding acti#ities were carried o&t in .rgentina .rmenia Bangladesh Pl&rinational State of Boli#ia 6roatia 9c&ador !eorgia B&ngary 5ndia Fenya 7ontenegro Parag&ay =omania Saint L&cia Slo#enia and "a(ikistan. "hro&gh .6"=.8 the 1ffice has &ndertaken or contri%&ted to #ario&s training acti#ities in the area of 1SB in .l%ania .rgentina Bosnia and Ber*ego#ina Botswana Bra*il 6hile 6olom%ia 6osta =ica 9l Sal#ador !hana !&atemala Fenya 7alawi 7a&riti&s 7exico =ep&%lic of 7oldo#a Nami%ia Parag&ay Per& Seychelles So&th .frica "he former I&gosla# =ep&%lic of 7acedonia Er&g&ay Boli#arian =ep&%lic of 8ene*&ela Wam%ia and Wim%a%we. S&pport sho&ld %e strengthened in co&ntries interested in ratifying and applying the key 1SB instr&ments and re,&iring technical assistance for the de#elopment of their 1SB legislation policies profiles and programmes. 5n .sia with the s&pport of .S9.NV1SBN9" more .S9.N co&ntries may ratify 6on#ention No. 1DQ. 5n .frica mem%er States are making progress in the design and implementation of 1SB profiles policies and legislation in cons<ation with the social partners and with 5L1 s&pport. 5n the .mericas more efforts are needed to assist in the adoption of national 1SB policies. 5n the .ra% States recent de#elopments in the ela%oration and &pdating of 1SB policies and profiles are pa#ing the way for new 1SB acti#ities for which technical assistance sho&ld %e increased. "he 1SB acti#ities of workers and employers organi*ations sho&ld also %e gi#en f&rther s&pport. .ction plan <2:11V1;> to impro#e the conditions of work of fishers thro&gh the widespread ratification and effecti#e implementation of the $ork in +ishing 6on#ention 2::Q <No. 1DD> and the effect gi#en to the $ork in +ishing =ecommendation 2::Q <No. 1CC> .s 6on#ention No. 1DD has recei#ed #ery few ratifications assistance has %een pro#ided for national legislati#e gap analyses to foster %est practices and the de facto implementation of the 6on#ention. "ripartite national seminars workshops and training co&rses ha#e %een held and the 6on#ention has %een incorporated into the 3ecent $ork 6o&ntry Programmes <3$6Ps> of some co&ntries. 5n order to implement the next phase of the pro(ect which consists of an online reporting system fi#e mem%er States ha#e #ol&nteered to &se the pilot system for the 2:12 reporting exercise. 1nce the system has pro#ed to %e &sef&l and relia%le it will %e extended to more mem%er States. DRM2F : 2.F. STRATEGIC MANAGEMENT 1. Est%0lish in &et%il the +se o1 S3OT in the %n%l.sis o1 Intern%l str%tegi! %ssess2ent. . S$1" analysis is commonly &sed in marketing and %&siness in general as a method of identifying opposition for a new #ent&re or strategy. Short for Strengths $eaknesses 1pport&nities and "hreats this allows professionals to identify all of the positi#e and negati#e elements that may affect any new proposed actions. A"his analysis leads to %&siness awareness and is the cornerstone of any s&ccessf&l strategic planA said Bonnie "aylor #ice president of strategic marketing at 66S 5nno#ations. A5t is impossi%le to acc&rately map o&t a small %&sinessPs f&t&re witho&t first e#al&ating it from all angles which incl&des an exha&sti#e look at all internal and external reso&rces and threats. . S$1" accomplishes this in fo&r straight-forward steps that e#en rookie %&siness owners can &nderstand and em%race.A Niki Pfieffer fo&nder of Niki Pfieffer 3esigns noted that many small %&siness owners donPt know how to properly &se a S$1" analysis to g&ide their %&siness. A5t is a%o&t le#eraging yo&r strengths o&tso&rcing and partnering where yo& are weak foc&sing on opport&nities and %eing aware of threatsA she said. "he p&rpose of a S$1" analysis "he S$1" analysis ena%les companies to identify the positi#e and negati#e infl&encing factors inside and o&tside of a company or organi*ation. Besides %&sinesses other organi*ations in areas s&ch as comm&nity health and de#elopment and ed&cation ha#e fo&nd m&ch &se in its g&iding principles. "he key role of S$1" is to help de#elop a f&ll awareness of all factors that may affect strategic planning and decision making a goal that can %e applied to most any aspect of ind&stry. S$1" is meant to act primarily as an assessment techni,&e tho&gh its lengthy record of s&ccess among many %&sinesses makes it an in#al&a%le tool in pro(ect management. A. good S$1" analysis ser#es as a dash%oard to yo&r prod&ct or ser#ices and when done correctly can help yo& to na#igate and implement a so&nd strategy for yo&r %&siness regardless of company si*e or sectorA said 8ipe 3esai fo&nder and 691 of B3J Bydration 7ix. A$e contin&e to re#isit o&rs e#ery year to keep it &pdated d&e to constant shifts in market trends. 5tPs a crisp and simple way to comm&nicate the most important aspects of o&r %rand.A $hen to &se S$1" S$1" is meant to %e &sed d&ring the proposal stage of strategic planning. 5t acts as a prec&rsor to any sort of company action which makes it appropriate for the following moments: 9xploring a#en&es for new initiati#es 7aking decisions a%o&t exec&tion strategies for a new policy 5dentifying possi%le areas for change in a program =efining and redirecting efforts mid-plan "he S$1" analysis is an excellent tool in organi*ing information and presenting sol&tions identifying road%locks and emphasi*ing opport&nities. APerforming a S$1" analysis is a great way to impro#e %&siness operations and decision makingA said .ndrew Schrage fo&nder and 691 of 7oney 6rashers. A5t allowed me to identify the key areas where my organi*ation was performing at a high le#el as well as areas that needed work. Some small %&siness owners make the mistake of thinking a%o&t these sorts of things informally %&t %y taking the time to p&t together a formali*ed S$1" analysis yo& can come &p with ways to %etter capitali*e on yo&r companyPs strengths and impro#e or eliminate weaknesses.A $hile the %&siness owner sho&ld certainly %e in#ol#ed in creating a S$1" analysis it co&ld %e m&ch more helpf&l to incl&de other team mem%ers in the process. A1&r management team does a S$1" analysis ,&arterlyA said Shawn $alsh president and 691 of Paradigm 6omp&ter 6ons<ing. A"he collecti#e knowledge remo#es %lind spots that if left &ndisco#ered co&ld %e detrimental to o&r %&siness of o&r relationship with o&r clients.A Brandon 3&dley director of marketing and operations at "he B&sBank also said that colla%orati#e S$1" analyses gi#e employees a greater sense of &nderstanding and in#ol#ement in the company. "he elements of a S$1" analysis . S$1" analysis foc&ses entirely on the fo&r elements incl&ded in the acronym allowing companies to identify the forces infl&encing a strategy action or initiati#e. Fnowing these positi#e and negati#e impacting elements can help companies more effecti#ely comm&nicate what elements of a plan need to %e recogni*ed. $hen drafting a S$1" analysis indi#id&als typically create a ta%le split &p into fo&r col&mns so as to list each impacting element side-%y-side for comparison. Strengths and weaknesses wont typically match listed opport&nities and threats tho&gh some correlation sho&ld exist since theyre tied together in some way. =oyce Leather !ifts marketing director Billy Ba&er noted that pairing external threats with internal weaknesses can highlight the most serio&s iss&es faced %y a company. A1nce yo&P#e identified yo&r risks yo& can then decide whether it is most appropriate to eliminate the internal weakness %y assigning company reso&rces to fix the pro%lems or red&ce the external threat %y a%andoning the threatened area of %&siness and meeting it after strengthening yo&r %&sinessA Ba&er said. Intern%l 1%!tors "he first two letters in the acronym Strengths and $eaknesses refer to internal factors which means the reso&rces and experience readily a#aila%le to yo&. 9xamples of areas typically considered incl&de: +inancial reso&rces s&ch as f&nding so&rces of income and in#estment opport&nities. Physical reso&rces s&ch as yo&r companys location facilities and e,&ipment. B&man reso&rces s&ch as employees #ol&nteers and target a&diences. 6&rrent processes s&ch as employee programs department hierarchies and software systems. $hen it comes to listing strengths and weaknesses indi#id&als sho&ldnt try to s&garcoat or gla*e o#er inherent weaknesses or strengths. 5dentifying factors %oth good and %ad is important in creating a thoro&gh S$1" analysis. AEsing the S$1" analysis has more than once sa#ed me from myself keeping me from taking on pro(ects that wo&ld likely ha#e %een too m&ch for my small companyA said "om .tkins fo&nder of L&arry Bo&se. 7itchell $eiss %&siness professor at the Eni#ersity of Bartford recommended f&lly analy*ing yo&r strengths and weaknesses first. A6ompanies canPt hope to take ad#antage of or control the external factors &ntil the internals ha#e %een o%(ecti#ely assessedA he said. S$1" .nalysis "emplate Bere is a S$1" .nalysis template with some examples filled in: Strengths 3e%,nesses Political s&pport +&nding a#aila%le 7arket experience Strong leadership Pro(ect is #ery complex Likely to %e costly 7ay ha#e en#ironmental impact Staff reso&rces are already stretched Oort+nities Thre%ts Pro(ect may impro#e local economy $ill impro#e safety 9n#ironmental constraints "ime delays 1pposition to change Pro(ect will %oost companyPs p&%lic image "he S$1" analysis is a simple al%eit comprehensi#e strategy in identifying not only the weaknesses and threats of a plan %&t also the strengths and opport&nities a#aila%le thro&gh it. $hile an excellent %rainstorming tool the fo&r-cornered analysis prompts entities to examine and exec&te strategies in a more %alanced way. Bowe#er it is not the only factor in de#eloping a %&siness strategy. 2. E5l%in with the hel o1 e5%2lesE the 1or2s o1 &iversi1i!%tion. 3i#ersification is a method of risk management that in#ol#es the change and implementation of different in#estments stated in a specific portfolio. "his is practices %eca&se of the rationale that a portfolio containing a #ariety of in#estments can yield higher profits and ser#e as a lower risk to the independent in#estments in the same portfolio. 5t is only thro&gh in#esting more sec&rely that the %enefits of di#ersification may %e f&lly reaped. 5n#estment thro&gh foreign sec&rities may also reap %enefits %eca&se of the decreased correlation %etween local in#estments. "he concentric di#ersifications specify that there exists similarities %etween the ind&stries in terms of the technological standpoint. 5t is thro&gh this that the firm may compare and apply its technological know how to an ad#antage. "his is thro&gh a caref&l change or alteration in the marketing strategy performed %y the %&siness. "his strategy aims to increase the market #al&e of a partic&lar prod&ct and therefore gain a higher profit. "he hori*ontal di#ersification tackles prod&cts or ser#ices that are in a sense not related technologically to certain prod&cts %&t still pi,&e the interest of c&rrent c&stomers. "his strategy is more effecti#e is the c&rrent clientele is loyal to the existing prod&cts or ser#ices and if the new additions are well priced and ade,&ately promoted. "he newest additions are marketed in the same way that the pre#io&s ones were which may ca&se insta%ility. "his is %eca&se the strategy increases the new prod&cts dependence on an existing one. "his integration normally occ&rs when a new %&siness is introd&ced howe#er &nrelated to the existing. 6onglomerate or lateral di#ersification is where the company or %&siness promotes prod&cts or ser#ices with no relation commercially or technologically to the existing prod&cts or ser#ices howe#er still interest a n&m%er of c&stomers. "his type of di#ersification is &ni,&e to the c&rrent %&siness and may pro#e ,&ite risky. Bowe#er it may also pro#e #ery s&ccessf&l since it independently aims to impro#e on the profit the company acc&m&lates with regards to the new prod&ct or ser#ice. .t times there are certain defensi#e actions that may promote to the risk of contraction within the market or that the c&rrent prod&ct market seems to ha#e no more growth opport&nities. "his m&st also %e considered %efore initiating a certain type of di#ersification strategy. .nother factor is the o&tcome of the chosen di#ersification strategy. "he expected res< is expected to generate a profita%ility growth that will complement the ongoing acti#ities within the company. DRM1G : 1.G. RESEARCH METHODO$OG* 1. E5l%in the ro0le2s to 0e en!o+ntere& 0. rese%r!hers in In&i% 4ro0le2s en!o+ntere& 0. rese%r!hers in In&i% %n& Re2e&i%l 2e%s+res 1or ro2oting %n& i2roving the 9+%lit. o1 To+ris2 %n& Hotel rese%r!h in In&i% "o&rism as an academic field and a research area is a recent phenomenon. =esearchers in 5ndia partic&larly engaged in empirical research are facing se#eral pro%lems: 1. "he lack of a scientific training in the methodology of research is a great impediment for researchers in o&r co&ntry. "here is pa&city of competent researchers especially in to&rism and hospitality where the research primarily is %eha#ior %ased and spans across cross c<&ral %o&ndaries there%y making it all the more important and imperati#e that researcher is competent and ed&cated eno&gh to &nderstand the intricacies and n&ances of this type of research. 7any researchers take a leap witho&t knowing research methods. 7ost of the work which goes in the name of research is not methodologically so&nd. =esearch to many researchers and e#en to their g&ides is mostly a scissor and paste (o% witho&t any insight shed on the collated materials. "he conse,&ences are o%#io&s #i* the research res<s ,&ite often do not reflect the reality or realities. "h&s a systematic st&dy of research methodology is an &rgent necessity. Before &ndertaking research pro(ects researchers sho&ld %e well e,&ipped with all the methodological aspects. .s s&ch efforts sho&ld %e made to pro#ide short-d&ration intensi#e co&rse for meeting this re,&irement. 2. "here is ins&fficient interaction %etween the &ni#ersity research departments on one side and %&siness esta%lishments go#ernment departments and research instit&tions on the other hand. . great deal of primary data of non-confidential nat&re remain &nto&ched %y the researchers for want of proper contacts. 9fforts sho&ld %e made to de#elop satisfactory liaison among all concerned for %etter and realistic researchers. "here is a need for de#eloping some mechanics of a &ni#ersity- ind&stry interaction programme so that academics can get ideas from practitioners on what needs to %e researched and practitioners can apply the research done %y the academics. N. 7ost of the %&siness &nits in o&r co&ntry do not ha#e the confidence that the material s&pplied %y them to researchers will not %e mis&sed and as s&ch they are often rel&ctant in s&pplying the needed information to researchers. "he concept of secrecy seems to %e sacrosanct to %&siness organi*ations in the co&ntry so m&ch so that it pro#es an impermea%le %arrier to researchers. "h&s there is need for generating the confidence that the information o%tained from a %&siness &nit will not %e mis&sed. ). =esearch st&dies o#erlapping one another are &ndertaken ,&ite often for want of ade,&ate information. "his res<s in d&plication and fritters away reso&rces. "his pro%lem can %e sol#ed %y proper compilation and re#ision at reg&lar inter#als of a list of s&%(ects on which and the places where the research is going on. 3&e attention sho&ld %e gi#en toward identification of research pro%lems in #ario&s disciplines of applied science which are of immediate concern to the ind&stries. H. "here does not exist a code of cond&ct for researchers and inter-&ni#ersity and interdepartmental ri#alries are also ,&ite common. Bence there is need for de#eloping a code of cond&ct for researchers which if adhered sincerely can win o#er this pro%lem. ;. 7any researchers in o&r co&ntry also face the diffic<y of ade,&ate and timely secretarial assistance. "his ca&ses &nnecessary delays in completion of research st&dies. .ll possi%le efforts %e made in this direction so that efficient secretarial assistance is made a#aila%le to researchers and that too well in time. Eni#ersity !rants 6ommission m&st play a dynamic role in sol#ing this diffic<y. Q. Li%rary management and f&nctioning is not satisfactory at many places and m&ch of the time and energy of researchers are spent on tracing o&t the %ooks (o&rnals reports etc. rather than in tracing o&t rele#ant material from them. D. "here is also the pro%lem that many of o&r li%raries are not a%le to get copies of old and new .cts-r&les reports and other go#ernmental p&%lications in time. "his pro%lem is felt more in li%raries which are away in places from3elhi and other state capitals. "h&s efforts sho&ld %e made for the reg&lar and speedy s&pply of all go#ernmental p&%lications to reach o&r li%raries. 5nternet has eased the way research (o&rnals reports and a%stracts were read and &sed earlier making this pro%lem sol#ed to a #ery great extent. "h&s researcher sho&ld %e well #ersed with all that it takes to sort the %est and most &sef&l information there%y making the whole process efficient for red&cing time effort and money spent on it. C. "here is also the diffic<y of timely a#aila%ility of p&%lished data from #ario&s go#ernment and other agencies doing this (o% in o&r co&ntry. =esearcher also faces the pro%lem on acco&nt of the fact that the p&%lished data #ary ,&ite significantly %eca&se of differences in co#erage %y the concerning agencies. 1:. "here may at times take place the pro%lem of concept&ali*ation and also pro%lems relating to the process of data collection and related things. 11. "here is one pro%lem &ni,&e to to&rism and hospitality research st&dies in 5ndia and that is of its si*e. 5ndia is a #ast co&ntry with all the di#ersities and demographic differences like no other and that pose a great diffic<y while researching %eca&se it %ecomes practically impossi%le to incl&de e#eryone in its p&r#iew gi#en all its differences. 6hoosing a sample %ecomes the %iggest challenge. Bence in 5ndia to&rism st&dies are more region and area specific #ery &nlike other co&ntries where the st&dies are &ndertaken on national le#els. 2. E5l%in the !ontents o1 % rese%r!h reort in &et%il. 6ontents o1 Rese%r!h Reort "he researcher m&st keep in mind that his research report m&st contain following aspects: 1. P&rpose of st&dy 2. Significance of his st&dy or statement of the pro%lem N. =e#iew of literat&re ). 7ethodology H. 5nterpretation of data ;. 6oncl&sions and s&ggestions Q. Bi%liography D. .ppendices "hese can %e disc&ssed in detail as &nder: "1# 4+rose o1 st+&.: =esearch is one direction oriented st&dy. Be sho&ld disc&ss the pro%lem of his st&dy. Be m&st gi#e %ackgro&nd of the pro%lem. Be m&st lay down his hypothesis of the st&dy. Bypothesis is the statement indicating the nat&re of the pro%lem. Be sho&ld %e a%le to collect data analy*e it and pro#e the hypothesis. "he importance of the pro%lem for the ad#ancement of knowledge or remo#ed of some e#il may also %e explained. Be m&st &se re#iew of literat&re or the data from secondary so&rce for explaining the statement of the pro%lems. "2# Signi1i!%n!e o1 st+&.: =esearch is re-search and hence the researcher may highlight the earlier research in new manner or esta%lish new theory. Be m&st refer earlier research work and disting&ish his own research from earlier work. Be m&st explain how his research is different and how his research topic is different and how his research topic is important. 5n a statement of his pro%lem he m&st %e a%le to explain in %rief the historical acco&nt of the topic and way in which he can make and attempt. 5n his st&dy to cond&ct the research on his topic. ")# Review o1 $iter%t+re: =esearch is a contin&o&s process. Be cannot a#oid earlier research work. Be m&st start with earlier work. Be sho&ld note down all s&ch research work p&%lished in %ooks (o&rnals or &np&%lished thesis. Be will get g&idelines for his research from taking a re#iew of literat&re. Be sho&ld collect information in respect of earlier research work. Be sho&ld enlist them in the gi#en %elow: 1. .&thor-researcher 2. "itle of research -Name of %ook N. P&%lisher ). Iear of p&%lication H. 1%(ecti#es of his st&dy ;. 6oncl&sion-s&ggestions "hen he can compare this information with his st&dy to show separate identity of his st&dy. Be m&st %e honest to point o&t similarities and differences of his st&dy from earlier research work. "-# Metho&olog.: 5t is related to collection of data. "here are two so&rces for collecting data? primary and secondary. Primary data is original and collected in field work either thro&gh ,&estionnaire inter#iews. "he secondary datarelied on li%rary work. S&ch primary data are collected %y sampling method. "he proced&re for selecting the sample m&st %e mentioned. "he methodology m&st gi#e #ario&s aspects of the pro%lem that are st&died for #alid generali*ation a%o&t the phenomena. "he scales of meas&rement m&st %e explained along with different concepts &sed in the st&dy. $hile cond&cting a research %ased on field work the proced&ral things like definition of &ni#erse preparation of so&rce list m&st %e gi#en. $e &se case st&dy method historical research etc. Be m&st make it clear as to which method is &sed in his research work. $hen ,&estionnaire is prepared a copy of it m&st %e gi#en in appendix. "@# Interret%tion o1 &%t%: 7ainly the data collected from primary so&rce need to %e interpreted in systematic manner. "heta%&lation m&st %e completed to draw concl&sions. .ll the ,&estions are not &sef&l for report writing. 1ne has to select them or cl&% them according to hypothesis or o%(ecti#es of st&dy. "C# Con!l+sions;s+ggestions: 3ata analysis forms the cr&x of the research pro%lem. "he information collected in field work is &sef&l to draw concl&sions of st&dy. 5n relation with the o%(ecti#es of st&dy the analysis of data may lead the researcher to pin point his s&ggestions. "his is the most important part of st&dy. "he concl&sions m&st %e %ased on logical and statistical reasoning. "he report sho&ld contain not only the generali*ation of inference %&t also the %asis on which the inferences are drawn. .ll sorts of proofs n&merical and logical m&st %e gi#en in s&pport of any theory that has %een ad#anced. Be sho&ld point o&t the limitations of his st&dy. "F# 8i0liogr%h.: "he list of references m&st %e arranged in alpha%etical order and %e presented in appendix. "he %ooks sho&ld %e gi#en in first section and articles are in second section and research pro(ects in the third. "he pattern of %i%liography is considered con#enient and satisfactory from the point of #iew of reader. "G# Aen&i!es: "he general information in ta%&lar form which is not directly &sed in the analysis of data %&t which is &sef&l to &nderstand the %ackgro&nd of st&dy can %e gi#en in appendix. Layo&t of the =esearch =eport "here is scientific method for the l%.o+t o1 rese%r!h reort. "he l%.o+t o1 rese%r!h reort means as to what the research report sho&ld contain. "he contents of the research report are noted %elow: 1. Preliminary Page 2. 7ain "ext N. 9nd 7atter "1# 4reli2in%r. 4%ges: "hese m&st %e title of the research topic and data. "here m&st %e preface of foreword to the research work. 5t sho&ld %e followed %y ta%le of contents. "he list of ta%les maps sho&ld %e gi#en. "2# M%in Te5t: 5t pro#ides the complete o+tline o1 rese%r!h reort along with all details. "he title page is reported in the main text. 3etails of text are gi#en contin&o&sly as di#ided in different chapters. a> 5ntrod&ction %> Statement of the pro%lem c> "he analysis of data d> "he implications drawn from the res<s e> "he s&mmary <a> Intro&+!tion: 5ts p&rpose is to introd&ce the research topic to readers. 5t m&st co#er statement of the research pro%lem hypotheses o%(ecti#es of st&dy re#iew of literat&re and the methodology to co#er primary and secondary data limitations of st&dy and chapter scheme. Some may gi#e in %rief in the first chapter the introd&ction of the research pro(ect highlighting the importance of st&dy. "his is followed %y research methodology in separate chapter. "he methodology sho&ld point o&t the method of st&dy the research design and method of data collection. <%> St%te2ent o1 the ro0le2: "his is cr&x of his research. 5t highlights main theme of his st&dy. 5t m&st %e in nontechnical lang&age. 5t sho&ld %e in simple manner so ordinary reader may follow it. "he social research m&st %e made a#aila%le to common man. "he research in agric<&ral pro%lems m&st %e easy for farmers to read it. <c> An%l.sis o1 &%t%: 3ata so collected sho&ld %e presented in systematic manner and with its help concl&sions can %e drawn. "his helps to test the hypothesis. 3ata analysis m&st %e made to confirm the o%(ecti#es of the st&dy. <d> I2li!%tions o1 D%t%: "he res<s %ased on the analysis of data m&st %e #alid. "his is the main %ody of research. 5t contains statistical s&mmaries and analysis of data. "here sho&ld %e logical se,&ence in the analysis of data. "he primary data may lead to esta%lish the res<s. Be m&st ha#e separate chapter on concl&sions and recommendations. "he concl&sions m&st %e %ased on data analysis. "he concl&sions m&st %e s&ch which may lead to generali*ation and its applica%ility in similar circ&mstances. "he conditions of research work limiting its scope for generali*ation m&st %e made clear %y the researcher. <e> S+22%r.: "his is concl&si#e part of st&dy. 5t makes the reader to &nderstand %y reading s&mmary the knowledge of the research work. "his is also a synopsis of st&dy. ")# En& M%tter: 5t co#ers rele#ant appendices co#ering general information the concepts and %i%liography. "he index may also %e added to the report.