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www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ZENITH INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCHVol.1 Issue 6 October 201 ISSN 2231-5780SR. NO. CONTENTS PAGE NO.123456789A MULTIVARIATE ANALYSIS APPROACH OF SELECTING PROFITABILITYINDICATORS – AN EMPIRICAL STUDY OF COMMERCIAL BANKS IN INDIADR. DEBAPROSANNA NANDYIMPACT OF SERVICE QUALITY IN COMMERCIAL BANKS ON THE CUSTOMERSSATISFACTION: AN EMPIRICAL STUDYDR. S. FATIMA HOLY GHOST, DR. M. EDWIN GNANADHASE-COMMERCE TRENDS FOR ORGANIZATIONAL ADVANCEMENTDR. BADIUDDIN AHMED, MD RAFIUDDINA COMPARATIVE STUDY OF RECRUITMENT PROCESS IN IT COMPANIES ININDIA: ASPIRANT’S PERCEPTIONPOOJA MISRA, JAYA GUPTAUNDERSTANDING THE INDIAN RURAL MARKET POTENTIALDR. DEVARAJ BADUGU, MR. SHANTI SWAROOP CHAUHANNEED OF FINANCIAL INCLUSION FOR POVERTY ALLEVIATION AND GDPGROWTHRAJESH SHARMA, MANISH DIDWANIA, PUNEET KUMARE-COMMERCE IMPACT ON TRANSPORTS. BALASUBBU LAKSHMIREGIONAL VARIATION IN DEVELOPMENT PROFILE OF ORISSA: ANECONOMETRIC ANALYSIS OF INDICATOR OF DEVELOPMENTUMAKANTA TRIPATHY, MILI DAS, PRAGNYA LAXMI PADHIAN EMPIRICAL STUDY ON FACTORS INFLUENCING E- BANKING SERVICES:WITH SPECIAL REFFRENCE TO ICICI BANK IN GOBICHETTIPALAYAMTOWN1-1819-3738-5354-6768-8283-9192-106107-130131-1461011DR. K.KRISHNAKUMAR, V.SELVAMMOBILE BANKING AS TECHNOLOGY ADOPTION AND CHALLENGESARCHANA SHARMAMULTIDIMENTIONAL MODEL FOR BIOLOGICAL DATA INTEGRATIONMS. ALPA R. PATEL147-157158-16912THE CORRELATION BETWEEN BLOOD CONTENT HAEMOGLOBIN ANDBLOOD GLUCOSE LEVEL ON THE EMOTIONAL INTELLIGENCE - A STUDYDR. ASHOK GINGINE, MR. ASHISH SAWALE170-1771314IMPACT OF EMOTIONAL INTELLIGENCE ON TEAMWORK – A COMPARATIVESTUDY OF SELF MANAGED AND CROSS FUNCTIONAL TEAMSDR. HARMINDER KAUR GUJRAL, JAYA AHUJAAN EMPIRICAL EVALUATION OF MONEY TRANSFER SERVICES IN INDIADR.M.LATHA NATARAJAN, DR. M.G.SARAVANARAJ,R. SERANMADEVI178-185186-199

www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780151617181920212223242526272829FDI IN RETAIL SECTOR : CONCERN FOR AAM AADMIDR. RAJESH KESARI, ABHISHEK KUMAR SRIVASTAVAA STUDY TO DEVELOP AN ADVANCED MARKETING STRATEGY FORWELLNESS TOURISM IN KERALA BASED ON THE PREVAILING SCENARIORAMESH U, KURIAN JOSEPHTHE STRATEGY OF DE-INTERNATIONALIZATION OF THE SMES OF THEFOOTWEAR IN THE AREA METROPOLITANA DE GUADALAJARAPAOLA N. VELÁZQUEZ – RAZO, JOSÉ G. VARGAS-HERNÁNDEZINSTITUTIONAL PLANNING : THE WORKING PRINCIPLESDR. VIKRANT MISHRA, VINOD PUNDIRINDIAN PREMIER ACADEMIC RESEARCH INSTITUTIONS FACULTY’SINTEREST IN PATENT FILLINGB. K. R. NAIK, SUDHIR K. JAIN, SURENDRA S. YADAVIMPACT ON GENERAL MANAGEMENT AREAS DURING RECESSION ININSURANCE INDUSTRYDR. D.D. BEDIA, MS. ANNADA PADMAWATHUMAN RESOURCES STRATEGY AND SME GROWTHS. DAVID RAJAN, DR. B. MADHAVANSYNERGISM BETWEEN ONLINE BRANDING AND PROMOTION OF TOURISMDESTINATION: REVIEW IN THE CONTEXT OF DESTINATION MANAGEMENTORGANIZATIONS (DMOs)MR. VIVEK SHARMA, MR. JEET DOGRACULTURAL DIMENSIONS & IMPACT ON PERFORMANCE MANAGEMENTANURADHA REDDYAN APPRAISAL OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN HARYANASTATE OF INDIAANISHA SAHAPATHI, DR PARUL KHANNAGENDER EQUALITY IN EDUCATIONN. SANTOSH RANGANATH, DR. K. ATCHYUTA RAO, DR. N. SRINIVASAN ANALYTICAL STUDY ON THE MICRO FINANCE INSTITUTIONS’REGULATORY NORMS FOR CAPITALISATION, CAPITAL ADEQUACY ANDAUDIT NEEDSMRS. VIJAYALAKSHMI. SSENSORY AND NUTRITIONAL CHARACTERISTICS OF ICELOLLY WITHCARROT FLAVOURSTUTI AGRAWAL, RANU PRASADTESTING OF RELATIONSHIP BETWEEN STOCK RETURN AND TRADINGVOLUME IN INDIARAVI KANTPROBLEMS AND PROSPECTS OF RETAIL BUSINESS – A STUDY WITHREFERENCE TO SIVAKASI TALUKDR. M. SELVAKUMAR, DR. A. MUTHUMONI200-210211-222223-237238-252253-264265-276277-286287-299300-311312-324325-332333-344345-370371-393396-427

www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578030THE RISE OF KOREAN AUTOMOBILE INDUSTRY:SUGGESTIONSCHOONG Y. LEEANALYSIS AND428-43931 ZENITH VOL-01,ISSUE-06, OCTOBER 2011

www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780MANAGEMENT24252627282930ANURADHA REDDYAN APPRAISAL OF SMALL AND MEDIUM ENTERPRISES (SMEs)IN HARYANA STATE OF INDIAANISHA SAHAPATHI, DR PARUL KHANNAGENDER EQUALITY IN EDUCATIONN. SANTOSH RANGANATH, DR. K. ATCHYUTA RAO, DR.N. SRINIVASAN ANALYTICAL STUDY ON THE MICRO FINANCEINSTITUTIONS’ REGULATORY NORMS FOR CAPITALISATION,CAPITAL ADEQUACY AND AUDIT NEEDSMRS. VIJAYALAKSHMI. SSENSORY AND NUTRITIONAL CHARACTERISTICS OFICELOLLY WITH CARROT FLAVOURSTUTI AGRAWAL, RANU PRASADTESTING OF RELATIONSHIP BETWEEN STOCK RETURN ANDTRADING VOLUME IN INDIARAVI KANTPROBLEMS AND PROSPECTS OF RETAIL BUSINESS – A STUDYWITH REFERENCE TO SIVAKASI TALUKDR. M. SELVAKUMAR, DR. A. MUTHUMONITHE RISE OF KOREAN AUTOMOBILE INDUSTRY:ANALYSIS AND SUGGESTIONSCHOONG Y. LEE312-324325-332333-344345-370371-393396-427428-43931 ZENITH VOL-01,ISSUE-06, OCTOBER 2011

1www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTA MULTIVARIATE ANALYSIS APPROACH OF SELECTINGPROFITABILITY INDICATORS – AN EMPIRICAL STUDY OFCOMMERCIAL BANKS IN INDIADR. DEBAPROSANNA NANDY**Assistant Professor, A.C. College of Commerce, University of North Bengal,Jalpaiguri, West Bengal, India.Chairman, Siliguri-Gangtok Chapter of Cost Accountants,The Institute of Cost & Works Accountants of India.In the light of liberalization, privatization and globalization a lot of challenges were faced by thecommercial banks. After the nationalization and till the early 1990s, the main thrust of bankingoperations was on social banking and accordingly the emphasis was placed on enhancing thebranch network in rural and semi-urban areas. Further banks had to undertake severalresponsibilities which included financing the fiscal deficit and facilitating the development ofcertain specific sectors as reflected in high and increasing prescriptions of SLR and directedlending. By and large, banking remained concentrated in the public sector and functioned in ahighly regulated environment. All this implied that profit earning was not considered as animportant objective. While all these social objectives continue to be important from the socioeconomicperspective even today, profitability of banking assumed significant importance in thecontext of financial sector reforms, which have resulted in increased competition to enhanceefficiency/productivity and positioning stringent supervisory norms on the lines of internationalbest practice to ensure banking soundness. The differential profit performance has beenattributed to various factors. The objective of the study is to identify these factors and examinewhether they have any significant influence on profitability of commercial banks in India.KEYWORDS: Profitability, Multiple Correlation, Multiple Regression, Enter Method, ForwardStepwise Regression Method.1. INTRODUCTIONIn the light of liberalization, privatization and globalization a lot of challenges were faced by thecommercial banks. After the nationalization and till the early 1990s, the main thrust of bankingoperations was on social banking and accordingly the emphasis was placed on enhancing thebranch network in rural and semi-urban areas. Further banks had to undertake severalresponsibilities which included financing the fiscal deficit and facilitating the development ofcertain specific sectors as reflected in high and increasing prescriptions of SLR and directedlending. By and large, banking remained concentrated in the public sector and functioned in ahighly regulated environment. All this implied that profit earning was not considered as animportant objective. While all these social objectives continue to be important from the socio-

2www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780economic perspective even today, profitability of banking assumed significant importance in thecontext of financial sector reforms, which have resulted in increased competition to enhanceefficiency / productivity and positioning stringent supervisory norms on the lines of internationalbest practice to ensure banking soundness.An important question which arises in this context is whether banks should focus on socialresponsibilities and facilitate growth of specific sectors or should aim at enhancing profitabilitybased on commercial considerations. Profit motive has surfaced in recent years from a number ofvalid considerations. Profitability of the banking sector assumes critical importance in order toretain confidence of the saving community, who view banking as one of the safest channels ofsavings. Earlier as most of the banks were in the public sector, the financial soundness per se wasnot viewed as quite essential to sustain confidence of the depositors, as there was built inconfidence on account of public ownership. With the launching of financial sector reforms andmove towards enhancing competition/reduction in Government equity holding, increasedefficiency to meet new challenges have been at the forefront of sound and stable banking system.The phenomenal growth in the business of new private sector banks is a testimony to thischallenge. Furthermore, the strain on the fiscal system may not permit continued Governmentsupport through capitalization.TABLE 1: NET PROFIT AS A PERCENTAGE OF TOTAL ASSETS DURING THE PERIOD 1995 – 2007All ScheduledPublic Sector Old Private New Private ForeignYearCommercialBanks Sector Banks Sector Banks BanksBanks1995-1996 -0.07 1.06 1.85 1.58 0.161996-1997 0.57 0.91 1.73 1.19 0.671997-1998 0.77 0.81 1.55 0.97 0.821998-1999 0.42 0.48 1.03 0.69 0.471999-2000 0.57 0.84 0.97 1.17 0.662000-2001 0.42 0.59 0.81 0.93 0.492001-2002 0.72 1.08 0.44 1.32 0.752002-2003 0.96 1.17 0.90 1.56 1.012003-2004 1.12 1.20 0.83 1.65 1.132004-2005 0.87 0.33 1.05 1.29 0.892005-2006 0.82 0.58 0.97 1.54 0.882006-2007 0.83 0.7 0.91 1.65 0.90Source: Report on Trend & Progress of Banking in India, RBI

3www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780An important aspect of banking soundness amply echoed in high capital adequacy ratios. Bankswould be in a better position to enlarge their equity base through public issues, if the banks are insound financial condition and enjoy investors‟ confidence and continue to observe variousprudential measures prescribed from time to time. Another way to enhance capital ratios isthrough reinvested profits. Thus, enhancing the strength of the banking institutions depends uponthe inherent strength and efficiency of any bank. Thus, we cannot afford the luxury of ignoringprofitability of banks and factors contributing in enhancing the same. In view of the foregoing,the quest for profitability is central both from the point of view of safeguarding andstrengthening the viability of banks and their ability to serve the socio-economic objectives ofthe society. In this context, identification of determinants of profitability would facilitateefficient use of bank resources and long-term banking performance. An attempt is made in thischapter to examine and identify the factors, which influence banking profitability in India. Table1 shows a comparative profit performance (Net Profit as a % of Total Assets) of different Bank-Groups during the period 1995 – 2007.2. OBJECTIVES OF THE STUDYThe above table shows an improvement in the performance of almost all the bank groups,although this has not been uniform across individual banks within the same bank group. Thedifferential profit performance has been attributed to various factors. The objective of the studyis to identify these factors and examine whether they have any significant influence onprofitability of banks in India.3. REVIEW OF LITERATUREThere are many micro and macro level studies conducted by individuals and institutions, whichanalyzed the factors affecting the profitability of commercial banks in India. Some of the recentstudies are reviewed as follows:Shah (1977), in his various papers discussed bank profitability and productivity. He expressedconcern about increased expenses and overheads. Slow growth in productivity and efficiency,wasteful work of banks that higher profitability can result from increased spread and thatinnovations have a limited role. He favoured written job descriptions for improvement to staffproductivity. He also emphasized reduction of costs, creation of a team spirit improvement in themanagement for improving bank profitability and productivity.Swamy and Subrahmanyam (1993), attempted to focus on profitability within public sectorbanks in an attempt to set benchmark for laggards.Satyamurty (1994), clarified the concepts of profits, profitability and productivity applicable tothe banking industry. It is organized by the bank managements that the pressure on theprofitability is more due to the factors beyond their control. He suggested the technique of ratioanalysis to evaluate the profit and profitability performance of banks. He opined that endeavorsshould be made to improve the spread performance through better funds management.

www.zenithresearch.org.in4ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Murty (1996), analyzed various factors, which can be helpful to improve the profitability ofpublic sector banks. The study examine the impact of monetary policy and market interest rateson the bank profitability and also suggest various measures to improve the profitability of thepublic sector banks in India.Sarker and Das (1997), compares the performance of public, private and foreign banks for theyear 1994-95 by using measures of profitability, productivity and financial management. Theyfound PSBs performing poorly with the other two categories. However, they give caution that nofirm inference can be derived from a comparison done for a single year.Das (1999), compares performance among public sector banks for three years in the post-reformperiod, 1992, 1995 and 1998. He finds a certain convergence in performance. He also notes thatwhile there is a welcome increase in emphasis on non-interest income, banks have tended toshow risk-averse behaviour by opting for risk-free investments over risky loans.Sabnani (2000), analyzed the importance of “Universal Banking” in India. Globalization,Liberalization and Deregulation of financial markets in many developed and developingcountries have resulted in increased dis-intermediation and have made commercial banksvulnerable to interest rate risk. Relaxing exchange controls, adopting uniform accountingpractices concerning income recognition, assets classification, provisioning norms, andprescribing capital adequacy norms has further aggravated the position. Now the developmentsin IT and telecommunications are allowing international pooling of financial resources therebyspreading the risk across more than one market. He feels that Universal Banking System willcome to stay in India in the near future. There is therefore need to prepare ourselves right now.Swamy (2001), studied the comparative performance of different bank-groups since 1995-96 to1999-2000. During this period, IT, new competition, deregulation took place. He studied threeimportant aspects:What has been the impact of financial sector reforms on the structure of the Indianbanking system?What are the advantages reaped by some of the new Indian private and foreign banks visà-visPSBs?Whether new competition has enhanced the overall efficiency of the banking system?Swamy identified those factors, which could have led to changes in the position of individualbanks in terms of their share in the overall banking industry.Kaveri (2001), in his study attempts to extend the study conducted by the Verma Committeemore specifically to ascertain whether enough signals of weakness were indicated much beforethe event. The present study considers 1998-99 as the year of event when the Verma Committeeidentified weak banks, strong banks and potential weak banks. This study considers nineefficiency parameters, which are computed, based on the data collected from the RBIpublications. The parameters include –

www.zenithresearch.org.in6ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780(E)(F)(G)(H)Old Public Sector BanksOld Private Sector BanksNew Private Sector BanksForeign Banks4.2. STUDY PERIODThe study covers secondary data for a very recent period of 3 years, ranging from 2004-05 to2006-07.4.3. VARIABLES USEDSix factors or variables have been selected which are affecting the profitability of the banks inthe either direction. They are as follows:Dependent VariableIndependent Variable1. Interest Income as % of Total Assets (Interest Income) – X 1Net Profit as a % ofTotal Assets(Net Profit)– Y2. Other Income as % of Total Assets (Other Income) – X 23. Interest Expenses as % of Total Assets (Interest Expenses) – X 34. Operating Expenses as % of Total Assets (Operating Expenses)– X 45. Net NPA as % of Total Assets (Net NPA) – X 56. Spread (NII) as % of Total Assets (Spread) – X 6NII – Net Interest Income4.4. HYPOTHESISAn attempt has been made in this chapter to test the following hypothesis:“Net Profit of different bank groups depends upon Interest Income, Other Income, InterestExpenses, Operating Expenses, Net NPA and Spread.”4.5. STATISTICAL AND ECONOMETRIC TECHNIQUES USEDFor the simplification of the study we have taken the mean of the figures of threeconsecutive years i.e. 2004 – 2007.

www.zenithresearch.org.in7ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Multiple Correlation and Multiple Regression Technique (Enter and Forward StepwiseMethod) have been used for the study.To calculate all the statistical results, SPSS Package (Version – 16.0) has been used.4.6. THE DATA SETTABLE 2. IMPORTANT FINANCIAL INDICATORS - BANK GROUP-WISE(2004 – 2007) (%)Bank Groups /YearsNetProfit(Y)InterestIncome(X 1 )OtherIncome(X 2 )InterestExpenses(X 3 )OperatingExpenses(X 4 )NetNPA(X 5 )Spread(NII)(X 6 )(A) ScheduledCommercialBanks:1 2 3 4 5 6 7 82004-05 0.89 6.61 1.46 3.78 2.13 1.28 2.832005-06 0.88 6.65 1.27 3.85 2.13 1.07 2.812006-07 0.90 6.85 1.12 4.16 1.91 1 2.69Mean 0.89 6.70 1.28 3.93 2.06 0.72 2.78(B) Public SectorBanks:2004-05 0.87 6.79 1.36 3.88 2.09 1.31 2.912005-06 0.82 6.84 1.09 4 2.05 1.06 2.852006-07 0.83 6.89 0.86 4.24 1.77 0.91 2.65Mean 0.84 6.84 1.10 4.04 1.97 0.76 2.80(C)NationalizedBanks:2004-05 0.89 6.91 1.32 3.89 2.18 1.28 3.022005-06 0.81 6.74 0.9 3.84 2 0.98 2.89

8www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802006-07 0.85 6.89 0.79 4.18 1.73 0.92 2.71Mean 0.85 6.85 1.00 3.97 1.97 0.69 2.87(D) State BankGroup:2004-05 0.91 7.02 1.51 3.96 2.14 1.53 3.062005-06 0.86 7.13 1.38 4.05 2.28 1.31 3.072006-07 0.82 6.99 0.97 4.2 1.98 0.96 2.79Mean 0.86 7.05 1.29 4.07 2.13 0.89 2.97(E) Other PublicSector Banks:2004-05 0.38 3.26 0.77 3.03 0.56 0.07 0.232005-06 0.63 6.08 1.45 5.65 0.97 0.27 0.432006-07 0.61 6.11 0.99 5.48 0.75 0.27 0.63Mean 0.54 5.15 1.07 4.72 0.76 0.79 0.43(F) Old PrivateSector Banks:2004-05 0.33 6.95 0.94 4.25 1.96 1.35 2.72005-06 0.58 6.92 0.81 4.17 2.06 0.93 2.752006-07 0.7 7.25 0.9 4.42 1.85 1.19 2.83Mean 0.54 7.04 0.88 4.28 1.96 0.96 2.76Bank Groups /YearsNetProfit(Y)InterestIncome(X 1 )OtherIncome(X 2 )InterestExpenses(X 3 )OperatingExpenses(X 4 )NetNPA(X 5 )Spread(NII)(X 6 )(G) New PrivateSector Banks:1 2 3 4 5 6 7 8

9www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802004-05 1.05 5.77 1.74 3.6 2.06 0.8 2.172005-06 0.97 5.89 1.63 3.62 2.12 0.81 2.272006-07 0.91 6.75 1.65 4.41 2.11 0.97 2.34Mean 0.98 6.14 1.67 3.88 2.10 0.59 2.26(H) ForeignBanks:2004-05 1.29 5.97 2.52 2.63 2.88 1.69 3.342005-06 1.54 6.17 2.69 2.58 2.94 1.8 3.582006-07 1.65 6.48 2.5 2.74 2.78 1.8 3.74Mean 1.49 6.21 2.57 2.65 2.87 0.39 3.55Source: Trend and Progress of Banking in India, 2006-2007 and Balance sheets of respectivebanks.NOTE1. The number of scheduled commercial banks in 2004-05, 2005-06 and 2006-07 were 88, 85and 82, respectively.2. The number of old private banks in 2004-05, 2005-06 and 2006-07 were 20, 20 and 17,respectively.3. The number of new private banks in 2004-05, 2005-06 and 2006-07 were 9, 8 and 8,respectively.4. The number of foreign banks in 2004-05, 2005-06 and 2006-07 were 31, 29 and 29,respectively.5. Figures in the table are percentages to total assets.6. NII - Net Interest Income.7. Scheduled commercial banks data for 2005-06 are as reported in the balance sheets for 2006-07 and hence may not tally with those reported in the Report on Trend and Progress of Bankingin India, 2005-06, to the extent the figures of 2005-06 were revised by some banks.5. ANALYSIS, RESULTS AND DISCUSSIONS5.1. CORRELATION ANALYSIS

10www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 3. CORRELATION MATRIX OF SELECT FINANCIAL INDICATORS OFGROUP-WISE BANKS (2004 – 2007)VariablesMeasuresNetProfitInt.IncomeOtherIncomeInt.Exp.Op.Exp.NetNPASpread(NII)(Y)(X 1 )(X 2 )(X 3 )(X 4 )(X 5 )(X 6 )Net Profit Pearson Correlation 1.00 0.02 0.93** -0.97** 0.81* -0.88** 0.63Sig. (2-tailed) 0.96 0.00 0.00 0.01 0.00 0.10Interest Income Pearson Correlation 0.02 1.00 -0.24 -0.14 0.55 0.34 0.78*Sig. (2-tailed) 0.96 0.56 0.75 0.16 0.41 0.02Other Income Pearson Correlation 0.93** -0.24 1.00 -0.90** 0.67 -0.87** 0.40Sig. (2-tailed) 0.00 0.56 0.00 0.07 0.01 0.33Interest Expenses Pearson Correlation -0.97** -0.14 -0.90** 1.00 -0.88* 0.82* -0.73*Sig. (2-tailed) 0.00 0.75 0.00 0.00 0.01 0.04Operating Expenses Pearson Correlation 0.81* 0.55 0.67 -0.88** 1.00 -0.52 0.94**Sig. (2-tailed) 0.01 0.16 0.07 0.00 0.18 0.00Net NPA Pearson Correlation -0.88** 0.34 -0.87** 0.82* -0.52 1.00 -0.28Sig. (2-tailed) 0.00 0.41 0.01 0.01 0.18 0.51Spread Pearson Correlation 0.63 0.78* 0.40 -0.73* 0.94** -0.28 1.00Sig. (2-tailed) 0.10 0.02 0.33 0.04 0.00 0.51** Correlation is significant at the 0.01 level (2-tailed).* Correlation is significant at the 0.05 level (2-tailed).Table 3 shows the output of correlation table. The values in the correlation table are standardizedand range from 0 – 1 (positive and negative). First column of Table 2 shows that except forInterest Income (X 1 ), all the other variables are highly correlated (ranging from 0.63 to 0.97)either positively or negatively with the dependent variable, Net Profit (Y). This means that wemay have chosen a fairly good set of independent variables (X 2 , X 3 , X 4 , X 5 and X 6 ) to correlatewith Net Profit (Y). Interest Expenses (X 3 ) and Net NPA (X 5 ) are rightly negatively correlatedwith Net Profit. But surprisingly, Operating Expense (X 4 ) is positively correlated with Net Profit.

www.zenithresearch.org.in11ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The correlation table can also be used to find out the correlation between independent variables.We further observe that except for the Interest Income (X 2 ) column, all other independentvariables are more or less highly correlated with each other. This indicates that they are notindependent of each other and only one or two of them can be used to predict the dependentvariable, Net Profit. Regression is helpful in eliminating some of the independent variables as allof them are not required. Some of them, being correlated with other variables, do not add anyvalue to the regression model.5.2. REGRESSION ANALYSISA Regression Analysis is done to explain the variation in one variable (dependent variable),based on variation in one or more other variables (independent variables). In case there is onlyone independent variable to explain the variation in one dependent variable, it is known assimple regression. If there are multiple independent variables to explain the variation in a singledependent variable, it is known as a multiple regression model. In this case, we use multipleregression model to arrive at a solution.5.2.1. ENTER METHODThe regression model of the following form has been used by entering all the six independentvariables in the model:Y = a + b 1 X 1 + b 2 X 2 + b 3 X 3 + b 4 X 4 + b 5 X 5 + b 6 X 6 ……..……...(1)As per the Enter Method (Table 4) [SPSS Package (Version 16.0)], the value of „B‟, theunstandardized coefficients give all the coefficients of the included 5 independent variables ofthe model, which are as follows:b 2 = 0.86; b 3 = 0.66; b 4 = -0.76; b 5 = -1.25; b 6 = 0.68; a = -2.21Note: Interest Income (X1) is excluded for the purpose of regression (Table 5), theunstandardized beta coefficient of which is 0.96.The above values can be substituted in the regression equation no….(1) to get and predict thevalue of Y (Net Profit):Net Profit = - 2.21 + 0.86* (Other Income) + 0.66* (Interest Expenses) – 0.76* (OperatingExpenses) – 1.25* (Net NPA) + 0.68* (Spread)………………………..(2)INTERPRETATIONFrom the above equation it can be inferred that if „Other Income‟ is increased by 1%,„Net Profit‟ will be increased by 0.86%, assuming all the other variables to be constant.

www.zenithresearch.org.in12ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Similarly the influence on the „Net Profit‟ for every % increase or decrease in the above 5factors can be explained by their coefficients case by case.In multiple-regression analysis, the regression coefficients often become less reliable asthe degree of correlation between the independent variables increases. If there is a highlevel of correlation between the independent variables, we have a problem thatstatisticians call multicollinearity. The last column in Table 4 is Collinearity Statistics. Inthis column, we get statistics for testing multicollinearity in the model. CollenearityStatistics gives two values – Tolerance and VIF (variance inflation factor). Tolerance isjust the inverse of VIF. A value of VIF higher than 5 or Tolerance less than 0.2 indicatesthe presence of multicolinearity. In social sciences research, a VIF value as high as 10 isconsidered to be acceptable. Here in the model VIF value for all the 5 includedindependent variables are more than 10 or the Tolerance is less than 0.2. So there existsevery sign of multicollinearity in the model as reflected in Table 4.The 5 independent variables as used in equation no.(2) are not good predictors for „NetProfit‟, as there exists multicollinearity i.e. strong inter-relationships between theindependent variables as was reflected in Table 3 showing Correlation Matrix.TABLE 4. COEFFICIENTS aModelUnstandardizedCoefficientsStandardizedCoefficientstSig.95% ConfidenceInterval for BCollinearityStatisticsBStd.ErrorBetaLowerBoundUpperBoundToleranceVIF(Constant) -2.21 0.17 -13.14 0.01 -2.93 -1.48OtherIncome 0.86 0.03 1.59 28.90 0.00 0.74 0.99 0.01 67.97InterestExpenses 0.66 0.04 1.30 18.13 0.00 0.50 0.81 0.01 115.55OperatingExpenses -0.76 0.04 -1.48 -21.01 0.00 -0.92 -0.60 0.01 111.07Net NPA -1.25 0.04 -0.75 -31.12 0.00 -1.43 -1.08 0.08 12.99Spread 0.68 0.03 2.12 25.88 0.00 0.57 0.79 0.01 150.39

13www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780a. Dependent Variable: Net ProfitTABLE 5. EXCLUDED VARIABLES bModelBetaInt Sig. PartialCorrelationCollinearity StatisticsTolerance VIF MinimumToleranceInterestIncome0.96 a 3.48 0.18 0.96 8.90E-05 1.12E+04 4.11E-05a. Predictors in the Model: (Constant), Spread, Net NPA, Other Income, Operating Expenses,Interest Expensesb. Dependent Variable: Net Profit5.2.2. FORWARD STEPWISE REGRESSION METHODWhen the problem involves 6 independent variables, all the variables may not be equallyimportant. It may be that some combinations can effectively explain the variation better thanothers. To resolve this uncertainty, an evaluation of various combinations of independentvariables can be done in different regression equations. The number of variables to be includedin the analysis should be decided upon. Stepwise multiple regression analysis is done for theabove purpose. Here we have applied FORWARD Stepwise regression method.It is a model, in which the algorithm adds one factor at a time, starting with the one whichexplains most of the variation in „Net Profit‟ and adding any one of the given six factors to it,rechecking the model to see that both the variables form a good model, then adding a thirdvariable to see that it could still add to the explanation of „Net Profit‟ and so on.Table 6 shows that the result of running a forward stepwise regression, which ends up only oneout of 6 factors in the regression model. The only variable included in the model is InterestExpenses (X 3 ). This explains the principle of multicollinearity, i.e. there is some dependencybetween the independent variables taken.Based on the model from Table 6, the equation can be written as follows:Net Profit = 2.80 – 0.49* (Interest Expenses) ……………..(3)Table 9 shows the F-test for the model, which is highly significant and the R 2 value for themodel is 0.94 which shows that 94% of the variation in „Net Profit‟ can be explained by the onlyindependent variable, Interest Expenses (Table 9). The t-value of „Interest Expenses‟ is alsohighly significant as per Table 6. As the value of VIF is less than 5 i.e. 1 as per Table 6, thereexists no multicollinearity in this model and hence the equation no.(3) is quite reliable.

14www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 6. COEFFICIENTS aModelUnstandardizedCoefficientsSandardizedCo-efficientst Sig. 95%ConfidenceInterval for BCollinearityStatisticsBStd.ErrorBetaLowerBoundUpperBoundToleranceVIF(Constant) 2.80 0.21 13.50 0.00 2.29 3.31Interest Expenses -0.49 0.05 -0.97 -9.38 0.00 -0.62 -0.36 1.00 1.00a. Dependent Variable: Net ProfitTABLE 7. EXCLUDED VARIABLES bModel Beta In T Sig.PartialCorrelationToleranceCollinearity StatisticsVIFMinimumToleranceInterestIncomeOtherIncomeOperatingExpenses-0.11 a -1.08 0.33 -0.44 0.98 1.02 0.980.31 a 1.47 0.20 0.55 0.20 5.12 0.20-0.19 a -0.82 0.45 -0.34 0.22 4.57 0.22Net NPA -0.27 a -1.76 0.14 -0.62 0.33 2.99 0.33Spread -0.16 a -1.09 0.33 -0.44 0.47 2.11 0.47a. Predictors in the Model: (Constant), Interest Expensesb. Dependent Variable: Net Profit

15www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 8. COLLINEARITY DIAGNOSTICS aDimension Eigen Value Condition IndexVariance Proportions(Constant)Interest Expenses1 1.990 1.000 0.00 0.002 0.010 14.407 1.00 1.00a. Dependent Variable: Net ProfitTABLE 9. ANOVA bModel Sum of Squares Df Mean Square F Sig.Regression 0.577 1 0.577 87.896 0.000 aResidual 0.039 6 0.007Total 0.616 7a. Predictors: (Constant), Interest Expensesb. Dependent Variable: Net ProfitTABLE 10. MODEL SUMMARY bModel R R Square AdjustedR SquareStd. Error of theEstimateDurbin-Watson1 0.97 a 0.94 0.925 0.081 3.005a. Predictors: (Constant), Interest Expensesb. Dependent Variable: Net Profit

16www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57806. CONCLUSIONFrom the above calculation, it is clear that „Interest Expenses‟ is the only good predictor for „NetProfit‟ of all different bank groups taking together during the years 2004-05 to 2006-07 with thegiven data set. The study may be extended to take other important variables into consideration aswell as to include other years after 1991 or to calculate the factors affecting „Net Profit‟ of eachbank group individually over a certain period of time.REFERENCESAmandeep (1993) “Profits and Profitability in Commercial Banks, Deep and Deep Publications”,New Delhi, Ed.1.Banerjee, Amalesh and Singh, Shrawan Kumar (2001) “Banking and Financial Sector Reformsin India”, Deep and Deep Publications Pvt. Ltd., New Delhi, Ed.1.Bhatia, Saveeta and Verma, Satish (1999) “Factors Determining Profitability of Public Sectorbanks in India: An Application of Multiple Regression Model”, Prajnan, January – March.Bhatt, P.R. (1999) “Profitability of Commercial Banks in India”, Indian Journal ofEconomics (March), pp. 202-214.Dasgupta, Debajyoti (2001) “Profitability of Indian Public Sector banks in the light ofliberalisation of Indian economy – an overview”, The Management Accountant, September.Deolalkar, G.H. (2000) “The Indian Banking Sector: On the Road to Progress”, mimeo.Garg, I.K (2003) “Indian Banking in Transition: Some Management Challenges”, IBA Bulletin,Vol. XXV, No. 3, (March), pp. 121-123.Ghosh, Arun Kumar (1979) “Cost Accounting in Commercial Banking Industry”, The Instituteof Cost And Works Accountants of India, Ed.1.Government of India (1998) Report of the Committee on Banking Sector Reforms (Chairman: MNarasimham).Jadav, Narendra (1996) “Challenges to Indian Banking – Competition, Globalization andFinancial Markets”, Union Bank of India, Macmillan India Limited, New Delhi, Ed.1.Joshi, Vasant and Joshi, Vinay (1998) Managing Indian Banks – The Challenges Ahead, SagePublications Ltd., New Delhi, Ed.1.

17www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Joshi, Vijay & J.M.D. Little (1998) “India's Economic Reforms: 1991 – 2001”, OxfordUniversity Press, New Delhi.Kapila, Uma & Kapila, Raj (Eds.) (1998) “Banking and Financial Sector Reforms”,Academic Foundation, New Delhi.Kaveri,V. S. (2001) “Loan Default and Profitability of Banks”, IBA Bulletin (Jan.).Monga, G.S. and Sinha, R.K. (2001) “Nationalization of Banks – Retrospect and Prospects”,Deep and Deep Publications Pvt. Ltd., New Delhi, Ed.1.Murty, P.V.R. (1996) “Cost & Profitability of PSBs”, Mohit Publications.Nandy, Debaprosanna (2007) “How Efficient the Indian Banks Are: A DEA Approach”, TheManagement Accountant, Vol.42 No.10, 803-812.Ojha, J. (1997) “Productivity and Profitability of Public Sector Banks in India: AnInternational Comparison”, SBI Monthly Review (July).Patra, Michael Debabrata and Sunando Roy (2000) “Financial Stability: A Survey of the IndianExperience”, Vol.21, No.1, Summer.Proceedings of the Bank Economists‟ Conference 2000 (2000) “Banking in the NewMillennium”, Oriental Bank of Commerce, New Delhi, Ed.1.Raut, Kishore and Das, Santosh (1996) “Commercial Banks in India – Profitability, Growth andDevelopment”, Kanishka Publishers Distributors, New Delhi, Ed.1.Reddy Y.V. (2005) “Banking Sector Reforms in India: An Overview”, Reserve Bank of IndiaBulletin, June.Reserve Bank of India (1991) Report of the Committee on the Financial System (NarasimhamCommittee Report).Reserve Bank of India, Report on Trend and Progress of Banking in India, Various issues.Shirai, Sayuri (2002) “Road from State to Market – Assessing the Gradual Approach to BankingSector Reforms in India”, Asian Development Bank Institute, Tokyo, Japan.Swami, S B and G Subrahmanyam (1993) “Comparative Performance of Public Sector Banksin India”, Prajnan, 23, 185-95.The Vysya Bank Ltd. (1999) Banking for better profitability, Bank Economists‟ Conference(Collection Papers), MacMillan India Ltd., New Delhi, Ed.1.Uppal, R. K. and Kaur, Rimpi (2006) Banking Sector Reforms – A Review of Post-1991Developments, New Century Publications, Ed.1.

18www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Verma, S (2002) “Determinant of Profitability of SBI Group, Other Nationalized and ForeignBanks in India”, Edited book, Banking and Financial Sector Reforms in India, Deep & DeepPub., pp. 321-336.

19www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780IMPACT OF SERVICE QUALITY IN COMMERCIAL BANKS ON THECUSTOMERS SATISFACTION: AN EMPIRICAL STUDYABSTRACTDR. S. FATIMA HOLY GHOST*; DR. M. EDWIN GNANADHAS***Assistant Professor in Commerce, Holy Cross College,Kanyakumari District, Tamil Nadu.**Associate Professor in Commerce, Scott Christian College,Kanyakumari District, Tamil Nadu.Quality in service is very important especially for the growth and development ofservice sector business enterprise. It works as an antecedent of customer's satisfaction .Inthe past, quality was measured only for the tangible products because of less dominance ofservice sector in the economy. Due to the increasing importance of service sector in theeconomy, the measurement of service quality became important. Undoubtedly owing to thebelief that delivery of high service quality is a must for attaining customers satisfactionand a number of other desirable behavioural outcomes, recent years have incensed a flurryof research exploring interrelationship between service quality, satisfaction andbehavioural outcomes. The objective of the present study are to identify the customer'sperception on service quality factors in commercial banks and the customers satisfactiontowards the banks ;to analyse the impact of perception on service quality factorsin commercial banks among the different group of customers based on their demographics.The applied sampling technique is purposive sampling. The present study concludes thatthere is a close link between the customer's perception on the service quality factors andthe customer satisfaction. But the impacts of service quality factor on customer satisfactionamong the customer are not unique. It depends upon the demographic profile of thecustomers.KEYWORDS: Assurance, Empathy , Reliability , Responsiveness and Tangibles.INTRODUCTIONDuring the past two decades or so, regulatory, structural and technological factors havesignificantly changed the banking environment throughout the world (Angur et al., 1999). In amilieu which becomes increasingly competitive, service quality as a critical measure oforganizational performance continues to compel the attention of banking institutions andremains at the forefront of services marketing literature and practice (Lasser et al., 2000;Yavas and Yasin, 2001). The interest is largely driven by the realization that higher servicequality results in customers satisfaction and loyalty, greater willingness to recommend tosomeone else, reduction in complaints and improved customer retention rates (Danaher,1997; Magi and Julander, 1996; Levesque and Me Dougall, 1996).Undoubtedly owing to the belief that delivery of high service quality is a must forattaining customers satisfaction and a number of other desirable behavioural outcomes,recent years have incensed a flurry of research exploring interrelationship between service

20www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780quality , satisfaction and behavioural outcomes (Festus and Hsu, 2006; Hsu, et al., 2006;Thamarai selvan and Raja, 2007).QUALITY IN SERVICE INDUSTRYQuality in service is very important especially for the growth and development ofservice sector business enterprise (Powell, 1995). It works as an antecedent of customer'ssatisfaction (Ruyter and Bloemer, 1995). In the past, quality was measured only for thetangible products because of less dominance of service sector in the economy. Due to theincreasing importance of service sector in the economy, the measurement of service qualitybecame important. Crosby (1979) defined quality as the 'Conformance to requirements'. Theguru of quality movement Juran (1988, 1992) defined quality as 'fitness for use whileservicing (1986) viewed quality as a process promising to result in products and services.In late 1980s, Parasuraman et al., (1985) explained quality as a gap between whatcustomers feel to be offered and what is provided. Even though there is no single definitionon quality they all have a single focus on how users look at it (Piji, 1994; Zeithaml, 1988;Khader, 1997). Ramaswamy (1996) identified three different sets of measures for servicequality such as service performance, customer measure and financial measure. The otherresearchers such as Lilijander, (1995). Prakash and Lounsbury (1984) and Swan (1988)suggested many possible comparison standards including predicted service, comparativeexpectations and fairness. However, SERVQUAL only incorporates a rough aggregatedmixture of a selection of these.ESTABLISHING CURRENT UNDERSTANDING OF SERVICE QUALITYParasuraman et al., (1985) developed the Gap analysis model. In his model, hemeasured the gap between expected service and perception of service among thecustomers. Later it was refined to SERVQUAL scale (Parasuraman et al., 1988). It isdesigned to measure consumers perceptions of the identified dimensions of tangibles,empathy, assurance, responsiveness and reliability relative to consumers expectationsSERVQUAL critics, have voiced their concerns for many years with respect tocontextual, dimensional and empirical correctness considerations (Asubonteng et al., 1996;Finn and Lamb, 1991).Boulding et al., (1993) are among those who consider service quality to beperformance-based and hence take perceptions, rather than expectations, as they are ofdeparture in developing their dynamic process model. They see perception of functions ofwhat the consumer's expectations will occur and what should occur during the serviceencounter. But Boulding et al., (1993) also assume service quality as perceived withrespect to Parasuraman's et al., (1988) five dimensions.IMPORTANCE OF SERVICE QUALITY IN COMMERCIAL BANKSIncreased competition, highly educated consumers, and increase in standard of livingare forcing many businesses to review their customer service strategy. Many business firmsare channeling more efforts to retain existing customers rather than to acquire new onessince the cost of acquiring one new.customer is greater than cost of retaining existingcustomers. There is enough evidence that demonstrates the strategic benefits of quality incontributing to market share and return on investment (Adiran, 1995; Bakesm, 1995;

21www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Reichhel and Sasser 1990). Maximizing customer satisfaction through quality customerservice has been described as 'the ultimate weapon' by Davidow and Vital (1989).According to them in all industries, when competitors are roughly matched, those with stresson customer's service will win.In view of the abovementioned facts, an analysis of service quality perceptionsfrom customer's point of view may be sound and interesting at this juncture. Such ananalysis will provide banks, a quantitative estimate of their services being perceived withintricate details such as whether banks are meeting or not meeting the customer'sexpectations. The present paper, therefore attempts to achieve the following objectives.CONCEPTUAL FRAMEWORKActually, the conceptualization and measurement of service quality began in themarketing literature in 1985. Service Quality is a vital antecedent of customer'ssatisfaction (Cronin and Taylor, 1992). In turn customer satisfaction is believed to affectpost-purchase and perception and future decisions. Subsequent works on service quality.(Parasuraman et al., 1993; Cronin and Taylor, 1994; Avkiran, 1994; Teas, 1994; Newmanand cowling, 1996) not withstanding, the debate has not yet reached a point of solution. Inits wake, however, it has raised many issues for both academicians and parishioners byproviding important but some-what conflicting in rights into the conceptual, themethodological, analytical and practical issues related to the service quality concept. Forinstance, Cronin and Taylor (1992, 1994) argue the measuring of service quality using aperformance -minus - expectation (SERVQUAL) basis inappropriate and suggest theperformance - only (SERVPERF) measurement is a better method.However, Parasuraman, Zeithaml and Berry (1994) contend that the SERVQUALscale using the expectations / performance gaps method is a much richer approach tomeasuring service quality and augment that earlier assertion (e.g. Parasuraman et al., 1988,1993) that service quality is a multi dimensional rather than a one- dimensional construct.SERVQUAL has been widely used (Dabholhar et al., 1996; Hurswey, 1999; Getz et al.,2001). There have been a few empirical studies that dealt with the application of SERVQUALinstrument in the banking industry such as Natarajan et al., (1999) and Lassar et al., (2000).At the same time, the empirical evidence of using SERVPERF scale in banking industry arethe studies by Howcaft (1991) and Newman and Cowling (1996). In the present study,the performance only measurement (SERVPERF) has been used to analyse the customer'sperceptions in banking.RELATED REVIEWSThe literature pertaining to relationship among service quality, customer's satisfactionand their behavioural intention can be divided into two groups. The first, servicemanagement literature, proposes that the service quality influences the customersatisfaction (Cronin et al., 2000; Dabholkar et al., 2000 and Schemenner 2004). Theservice quality is identified as the determinants of customer satisfaction in banking(Naceur et al., 2002). The relative importance of service quality attached with customersatisfaction and their behavioural intention is highlighted by Niki et al., (2006). The directand indirect links between service quality and the customers satisfaction and their

22www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780behavioural intention are analysed with the help of structural equation modeling (Festus andMaxwell, 2006).RESEARCH GAPThe above said previous studies are analyzing the perception on service qualityin commercial banks by performance only on the SERVQUAL scale measure. There isno exclusive study on the impact of perception on SQFs on customer's satisfaction underdifferent demographic profile. Hence, a research models have been generated to fill upthe research gap.PROPOSED RESEARCH MODELDemographicsCustomersin differentgroup ofbanksAge of thecustomersEducationof thecustomersServiceQualityFactors inBanksNativityofcustomersGender ofcustomerIncome ofcustomersOccupationofcustomersCustomerSatisfactionDenographicsOBJECTIVES OF THE STUDYThe objective of the present study is summarized below:1) To identify the customer's perception on service quality factors incommercial banks and the customers satisfaction towards the banks;

23www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802) To analyse the impact of perception on service quality factors incommercial banks among the different group of customers based on theirdemographics.METHODOLOGYThe descriptive research designs have been followed to fulfill the objectives of theresearch.SAMPLING PROCEDUREThe total number of commercial banks in Kanyakumari district is 143 branches. Outof the 143 branches, 112 branches are Public Sector Banks (PSBs), 25 branches are PrivateSector Banks (PrSBs) and only 6 banks are New Private Sector Banks NPrBs. In total, amaximum of 79 branches are seen in semi urban area whereas 44 branches are at urban area.The remaining 20 branches are at rural area. In all the three areas, the numbers of PSBs areidentified as higher as compared to other two groups of banks. 5 customers from each bankwere selected as the sample respondents. Hence the sample size came to 715. Here theapplied sampling technique is purposive sampling. The required data have been collectedthrough the structured questionnaire which consists of, profile of the customer andperception on service quality of banks and their overall attitude towards the banks.Out of 715 customers only 43.64 per cent of the customers responded thequestionnaire. The number of responded customers in PSBs, PrSBs and NPrSBs are 194,89 and 29 respectively. At the same time, in urban, semi urban and rural areas, these are 104,159 and 49 customers respectively.RESULTS AND DISCUSSIONCUSTOMER SATISFACTIONThe customer satisfaction is the collective opinion on various aspects in commercialbanks. The primary motto of any commercial banks in the globalized era is customersatisfaction. Even though the customers satisfaction is derived from the customer's attitudetowards various variables related to banks, the present study confines these variables to only12 variables. These variables are given in Table 1.1TABLE 1.1VARIABLES IN CUSTOMER’S SATISFACTIONSl.No Variables Sl.No Variables1.2.3.4.Decision to use this bankExperience with this bankMy choice towards this bankEmployed behavior7.8.9.10.Relationship marketing adopted bythe bank.Customer’s orientation of the bankHandling of complains

www.zenithresearch.org.in24ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805.Accessibility of the bank11.Reporting system of the bank6.Trust worthiness towards the bank12.Quality of the serviceCost of the services offeredThe identified variables are related to the service offered by the banks, serviceprovider (employees) and service cost. The customers are asked to rate the twelvevariables at five point scale. The assigned scores on these scales are from 5 to 1respectively. The score have been included for reliability test with the cronbach alpha.Since the cronbach alpha is 0.8119, the included 12 variables explain the customersatisfaction to the extent of 81.19 per cent.CUSTOMERS SATISFACTION INDEX (CSI) AMONG THE CUSTOMERSThe customer satisfaction is derived from the score of all 12 variables includedit. The score of customer satisfaction is summated with the help of an index called as'Customer Satisfaction Index' (CSI). It is computed byi lnSVCSiCSIi ln100MSVCSWhereasSVCS - Score of variables in customers satisfactioniMSVCS- Maximum score of the variables in customers satisfactioni = 1... .n - Variables in customers satisfactionThe customer satisfaction among the customers has been measured with the help of anindex called as Customers Satisfaction Index (CSI). It reveals the summative view on thecustomers' satisfaction towards the various aspects related to the banking. The CSI in thepresent study is confined to less than 21 per cent, 21 to 40, 41 to 60, 61 to 80 and above 80per cent. The customers with CSI of less than 21 per cent constitutes only 21 .08 per cent tothe total whereas the customers with the CSI of 21 to 40 per cent constitutes 28.49 per centto the total. The total 39.17 per cent of the customers are with the CSI of 41 to 60 per centwhereas 7.31 per cent of the customers are with CSI of 61 to 80 per cent. The customerswith the CSI of above 80 per cent constitutes 3.95 per cent to the total.

25www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780CUSTOMER PERCEPTION ON SQFsThe Service Quality Factors (SQF) in commercial banks identified by Avkiran,(1994); Howcraft (1991); Laural and Nasser, 2002; and Leversque and Gordon, (1996) arefive factors. These are Reliability, Responsiveness, Assurance, Tangibles and Empathy. Thesame five factors have been included in the present study. Since the reliability of thevariables in each SQF have been already tested by Vanniarajan and Gurunathan, (2007)and Jabnour and Hussein (2002), the present study is not conducting any reliability test. Thecustomers are asked to rate each SQFs five point scale according to their order of satisfaction.The mean score of each SQFs, its standard deviation and co-efficient of variation is given inTable 1.2.TABLE 1.2CUSTOMER’S PERCEPTION ON SQFsSl.No. SQFs Mean score StandarddeviationCo-efficient ofvariation1.Reliability2.99780.687622.942.Responsiveness2.60850.994338.123.Assurance2.71791.036538.144.Tangibles3.05440.854427.975.Empathy2.50850.990239.47The highly perceived SQFs among the customers is 'Tangibles' since its meanscore is 3.0544 which has a co-efficient of variation of 21.91 per cent. The secondSQFs perceived by the customer's is 'Reliability' since their mean score is 2.9978 withthe co-efficient of variation of 22.94 per cent. The next two SQFs perceived by thecustomers is assurance and responsiveness since their mean scores are 2.7179 and2.6085 respectively.IMPACT OF SERVPERF SCALE ON SQFs ON CSI IN DIFFERENT BANKSThe perception on SQFs may have its own influence on the customersatisfaction. In order to analyse the impact of SQFs on customer satisfactionamong the customers, the multiple regression analysis have been administered. Thefitted regression model isY= a+b 1 x 1 +b 2 x 2 +b 3 x 3 +b 4 x 4 +b 5 x 5 +eY=customer satisfaction Index any the customersWhereas X 1 - Score on Reliability among the customersX 2 - Score on Responsiveness among the customers

26www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780X 3 - Score on Assurance among the customersX 4 - Score on Tangibles among the customersX 5 - Score on Empathy among the customersb 1 ,b 2 ….b n - Regression co-efficient of independent variablesa - Intercept ande - Error termInitially, the impact of SQFs on the customer satisfaction among the business in PublicSector Banks (PSBs) Private Sector Banks (PrSBs) and New Sector Banks (NPrSBs) havebeen examined separately. The result of regression analysis is given in Table 1.3TABLE 1.3IMPACT OF SERVPERF SCALE ON SQFs ON CSIRegression Co-efficient among customer inSl.No. SQFsPSBs PrSBs NPrSBs1.Reliability0.1814*0.2492*0.2096*2.Responsiveness0.09330.1891*0.1443*3.Assurance0.10440.1044*0.1862*4.Tangibles0.11330.1338*0.2101*5.Empathy0.1681*0.2096*0.2633*Constant0.91941.30391.5238R 20.63450.75690.7161F-Statistics8.0828*11.1083*9.8689** Significant at five per cent level.The significantly influencing SQFs on the CSI among the customers in PSBsis reliability and empathy. A unit increase in the perception on reliability and empathyresult in an increase in CSI among the customers in PSBs by 0.1814 and 0.1681 unitsrespectively. Among the customer in PrSBs, the significantly influencing SQFs arethe perception on reliability, responsiveness, tangibles and empathy since theirrespective regression co-efficients are significant at five percent level. A unitincrease in the perception on the above said SQFs results in a increase in CSI by

27www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57800.2492, 0.1891, 0.1338 and 0.2096 units respectively. Among the customers inNPrSBs, a unit increase in the perception on reliability, responsiveness, assurance,tangibles and empathy result in an increase in customer satisfaction index by 0.2096,0.1443, 0.1862, 0.2101 and 0.2633 units respectively. The changes in theperception on SQFs explain the changes in CSI among the customers in PSBs andPrSBs is to the extent of 63.45 and 75.69 per cent respectively. Whereas among thecustomers in NPrSBs, it is to the extent of 71.61 per cent. The analysis reveals theimportance of SQFs is customer satisfaction. The satisfaction 'F' statistics reveal thevalidity of fitted regression models. In total, the degree of impact of SQFs oncustomers satisfaction in PrSBs is greater than in NPrSBs and PSBs.IMPACT OF SERVPERF SCALE OF SQF ON CSI AMONG THE URBAN ANDRURAL CUSTOMERSOn the basis of nativity, the customers are classified into urban and rural customers.Since the perception on SQFs among the group of customers may have different customersatisfaction, the present study has made an attempt to analyse the degree of influence ofSQFs on customer satisfaction among the urban and rural customers separately. It is highlyimperative to identify the impact of each SQFs on the CSI for some policy implications. Themultiple regression analysis have been executed to find out such impact. The ordinary leastsquare method is followed to fit the multiple regression models. The resulted regression coefficientof the SQFs are given in Table 1.4.TABLE 1.4IMPACT OF SERVPERF SCALE ON CSI AMONG THE URBAN AND RURALCUSTOMERSRegression co-efficient among customers inSl.NoSQFsUrbanRural1.Reliability0.3109*0.14612.Responsiveness0.2411*0.22013.Assurance0.10020.09684.Tangibles0.09170.19475Empathy0.1861*0.2868ConstantR 2F-Statistics* Significant at five per cent level..1.21460.733911.2308*0.68619.3091*

28www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The significantly influencing SQFs on customers satisfaction among the urbancustomer are reliability, responsiveness and empathy since their respective regression coefficientsare significant at five per cent level. A unit increase in the perception on abovesaid SQFs result in an increase in customer satisfaction by 0.3019, 0.2411 and 0.1861units respectively. The changes in the perception on SQFs explain the changes incustomer satisfaction index to the extent of 73.39 per cent since their respective R 2 is0.7339.Among the rural customers, the significantly influencing perceptions on SQFs arereliability, responsiveness, tangibles and empathy. A unit increase in the perception onabove said SQFs result in an increase in CSI by 0.1461, 0.2201, 0.1947 and 0.2868units respectively. The changes in the perception on SQFs explain the changes incustomer satisfaction index to the extent of 68.61 per cent only. The analysis revealsthat the most significantly influencing SQFs on the customer satisfaction among theurban and rural customers are reliability and empathy respectively.IMPACT OF SERVPERF SCALE OF SQFs ON THE CSI AMONGDIFFERENT AGED CUSTOMERSThe degree of influence of the SERVPERF scale of SQFs on the level ofsatisfaction (CSI) is examined to identify the importance of SQFs in the customersatisfaction among the different age group of customers. The perception score on fiveSQFs is treated as the score of independent variables whereas the CSI is considered asthe score of dependent variables. The impact of independent variables on thedependent variable is examined with the help of multiple regression analysis. Theresults are given in Table 1.5.TABLE 1.5IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG DIFFERENT AGEDGROUPSSl.No SQFs Regression co-efficient among customers inYoungsters Middle aged Aged1.2.3.4.5.Reliability0.1408*Responsiveness0.0924Assurance0.1661*Tangibles0.1024Empathy0.0439Constant0.8565R 2 0.69620.08180.1816*0.2145*0.07760.1337*1.38170.74120.2417*0.2133*0.09480.1471*0.2803*1.89160.7966

29www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780F-Statistics 8.4336* 10.2449* 12.3908*Among the youngsters, the significantly influencing SQFs on their CSI arereliability and assurance. A unit increase in the perception on above said two SQFs result inan increase in CSI by 0.1408 and 0.1661 units respectively. Among the middle agedcustomers, these independent variables are responsiveness, assurance and empathy sincetheir respective regression co-efficient are significant at five per cent level. A unitincrease in the perception on above said three SQFs result in an increase in CSI by 0.1816,0.2145 and 0.1337 units respectively. Among the aged customers, the significantlyinfluencing SQFs are reliability responsiveness, tangibles and empathy. A unitincrease in the above said SQFs result in an increase in CSI by 0.2417, 0.2133, 0.1471and 0.2803 units respectively.IMPACT OF SERVPERF SCALE OF SQFs ON CUSTOMERS SATISFACTIONAMONG MALE AND FEMALE CUSTOMERThe gender may play an important role in the degree of influence of SQFs on thecustomer satisfaction towards their banks. The present analysis has made an attempt toanalyse the impact with the help of multiple regression analysis. The included independentvariables are the perception on SQFs whereas the dependent variable is their CSI. Theimpact of perception on SQFs on the CSI among the male and female customers hasbeen examined separately. The resulting regression co-efficients of SQFs issummarized in Table 1.6.TABLE 1.6IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG THE MALE ANDFEMALE CUSTOMERSRegression co-efficients amongSl.NoSQFsMaleFemale1.Reliability0.2217*0.10442.Responsiveness0.1414*0.2104*3.Assurance0.09620.1616*4.Tangibles0.10840.2069*5Empathy0.08690.3144*Constant099461.2142R 20.82410.7433F-Statistics14.9817*10.3914** Significant at five per cent level.

30www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The significantly influencing SQFs on CSI among the male customers is reliabilityand responsiveness since their regression.co-efficients are significant at five per cent level.A unit increase in the perception on reliability and responsiveness result in anincrease in CSI by 0.2217 and 0.1414 units respectively. Among the female customers,the significantly influencing SQFs on the CSI are responsiveness, assurance, tangibles andempathy. A unit increase in the perception on above said SQFs result in an increase in theirCSI by 0.2104, 0.1616, 0.2069 and 0.3144 units respectively. The changes in the perceptionon SQFs explain the changes in their CSI among the female customers to the extent of74.33 per cent. The analysis reveals that the perceptions on SQFs have a higher influence onCSI among the female customers than the male customers. The important SQFs among thefemale customers are empathy and responsiveness whereas among the male customers, it isreliability.IMPACT OF SQFS ON CSI AMONG DIFFERENT EDUCATED GROUPSThe level of eduation among the customers may influence their perception on SQFssince their level of awareness and banking knowledge are different. By the level ofeducation, the customers are grouped into lesser educated ,educated and highly educatedgroups. The perception on SQFs among the three groups of customers based on educationmay have its own impact on the CSI. It is imperative to identify the significantlyinfluencing SQFs on CSI and also compare the degree of influence by each SQFs on CSIamong each group of customers separately for some policy implications. The multipleregression analysis has been executed to analyse such impact. The resulted regression coefficientsare given in table 1.7TABLE 1.7IMPACT OF SERVPERF SCALE OF SQFS ON CSI AMONG DIFFERENTEDUCATED CUSTOMERSRegression co-efficient among customers inSl.NoSQFsLesser Educated Educated Highly Educated1.Reliability0.10130.2117*0.2021*2.Responsiveness0.2817*0.1338*0.1917*3.Assurance.0.1868*0.11420.1436*4.Tangibles0.08660.09110.10115.Empathy0.12170.1904*0.1803*Constant0.85871.23481.4508R 20.62470.76670.8134F-Statistics7.5868*10.3441*12.4561** Significant at five per cent level.

31www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The significantly influencing SQFs on CSI among the lesser educated customersare responsiveness and assurance since their respective regression co-efficient aresignificant at five per cent level. A unit increase in the perception on responsiveness andassurance result in an increase in CSI by 0.2817 and 0.1868 units respectively. Among theeducated customers, these significant SQFs are reliability, responsiveness and empathy. Aunit increase in the perception on the above said three SQFs result in an increase in CSI by0.2117, 0.1338 and 0.1904 units respectively.Among the highly educated customers, the significantly influencing SQFs arereliability, responsiveness, assurance and empathy. A unit increase in the perception onthe above said SQFs result in an increase in CSI by 0.2021, 0.1917, 0.1436 and 0.1803units respectively. The changes in the perception on SQFs explain the changes in the CSIamong the higher educated customers are identified as higher as to the extent of 81.34per cent. The analysis reveals that the perceptions on SQFs have higher impact onCSI among the highly educated customers than the other two groups of customers.IMPACT OF SERVPERF SCALE ON SQFs ON CSI AMONG DIFFERENTINCOME GROUPSOne of the important demographics of customers is their income. Since the incomemay influence the level of awareness and knowledge on banking, it is included one of theprofile variables. By the level of income, they are classified into Lower Income Groups(LIG), Middle Income Groups (MIG) and Higher Income Groups (HIGs).The impact of SERVPERF scale of SQFs on CSI among the customer has beenexamined with the help of multiple regression analysis. The impact has been examinedamong LIG, MIG and HIG separately. The results are given in Table 1.8TABLE 1.8IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG DIFFERENT INCOME GROUPSRegression co-efficient among customers inSl.NoSQFsLIG MIG HIG1.Reliability0.1817*0.2144*0.3142*2.Responsiveness0.12020.2639*0.2108*3.Assurance0.11440.6640.1440*4.Tangibles0.09810.09170.1664*5.Empathy0.2114*0.1438*0.1649*Constant0.94111.24331.8246R 20.70280./79490.8144F-Statistics8.1443*10.3842*14.2841*

32www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Among the LIG, the significantly influencing SQFs on CSI are reliability andempathy. A unit increase in the perception on above said SQFs result is an increase in CSIamong the LIG by 0.1817 and 0.2114 units respectively. The significantly influencingSERVQUAL scale on SQFs among the middle income are reliability, responsiveness andempathy. A unit increase in the perception on above said three SQFs result in an increase inCSI by 0.2144, 0.2639 and 0.1438 units respectively.Among the HIG, the significantly influencing SQFs on the CSI are reliability,responsiveness, assurance, tangibles and empathy. A unit increase in the perception on abovesaid SQFs result in an increase in CSI by 0.3142, 0.2108, 0.1440, 0.1664 and 0.1649respectively. The changes in the perception on SQFs explain the changes in CSI among theHIG to the extent of 81.44 per cent. The analysis reveals that the perceptions on SQFs arerelatively influencing on the CSI at higher rate among the HIG than the MIG and LIGs.IMPACT OF SERVPERF SCALE ON SQFs ON CSI AMONG DIFFERENTOCCUPIED CUSTOMERSThe occupation of the customers determines their level of requirements, expectationand perception on banking services. Hence, it is included as one of the demographic profileof the customers. By the occupation, the customers are classified into agriculturalists,employees and businessmen. The impact of SERVPERF scales on SQFs on the CSI amongthe agriculturalists employees and businessmen have been analysed with the help of multipleregression analysis. The CSI among the customers is treated as the score of the dependentvariables whereas the SERVPERF scale on SQFs is treated as the score of independentvariables. The Ordinary Least Square (OLS) method has been followed to identify the degreeof influence of SQFs on CSI among three group of customers separately. The results areshown in Table 1.9.TABLE 1.9IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG DIFFERENT OCCUPIED CUSTOMERSRegression co-efficient among customers inSl.NoSQFsAgriculturalists Employees Businessmen1.Reliability0.1427*0.1819*0.2424*2.Responsiveness0.09330.1502*0.1761*3.Assurance-0.04380.1617*0.06694.Tangibles0.10810.09610.11045.Empathy0.1884*-0.05390.2478*Constant0.91341.24411.8569R 20.78720.81940.8646F-Statistics8.1816*10.3326*12.8603** Significant at five per cent level.

33www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Among the agriculturalists, the significantly influencing SERVPERF scales of SQFson the CSI are reliability and empathy since their respective regression co-efficient aresignificant at five per cent level. A unit increase in CSI by 0.1427 and 0.1884 unitsrespectively. The changes in the SERVPERF scale on SQFs explain the changes in CSI tothe extent of 78.72 per cent.The significantly influencing SERVPERF scale of SQFs on CSI among theemployees are reliability, responsiveness and assurance. A unit increase in the SERVPERFscale on the above said SQFs result in an increase in CSI by 0.1819,0.1502 and 0.1617 unitsrespectively. The changes in SERVPERF scale on SQFs explain the changes in CSI amongthe employees to the extent of 81.94 per cent. Among the businessmen, a unit increase inthe SERVPERF scale on reliability, responsiveness and empathy result in an increase inCSI by 0.2424, 0.1761 and 0.2478 units respectively. The changes in the SERVPERFscale on SQFs among the businessmen explain the changes in CSI to the extent of 86.46per cent. The analysis reveals that the businessmen are highly influenced by theSERVPERF scale on SQFs compared to other two groups of customers.CONCLUDING REMARKSThe present study concludes that there is a close link between the customer'sperception on the service quality factors and the customer satisfaction. But the impacts ofservice quality factor on customer satisfaction among the customer are not unique. Itdepends upon the demographic profile of the customers. For example, the degree ofinfluence of the service quality factors on customer's satisfaction is higher among the male,higher income group and highly educated customers. It may be because of their level ofknowledge and awareness on the banking services offered at the industry. Hence, the bankmanagers are advised to formulate appropriate marketing strategy to satisfy theircustomers. Even though the scope of the study is limited to Kanyakumari district, it may beextended to the customers at the state level in near future. The customers at variousdistricts may be analysed and also the important discriminant service quality factorsamong them.

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36www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578030. Levesque, T. and McDougall, G.H.G., (1996), "Determinations of customerssatisfaction in retail banking," International Bank Marketing, No.7, pp.12-20.31. Lewis, R., and Booms, B., (1983). The Marketing Aspects of service Quality.In L.L., Berry, L.G., Shostack and G.D., upah (Eds). Emerging Perspectives onServices Marketing, Chicago: American Marketing Association, pp.25-28.32. Lilijandr, V., (1995). A Comparison Standards in erceived Service Qualitypublication of the Swedish School of Economics and Business Administration,Helsinki, finland, No. 63.33. Magi, A., and Julander, C.R., (1996), "perceived service quality andcustomers satisfaction in a store performance frame work," Journal of Retailingand Consumer Services, No-1, pp.189-209.34. Maxwell K. Hsu, Festus olorunniwo and Godwin J. Vdo, (2006), "Sendee quality,customers satisfaction and behavioral intention in the service factory," Journal ofServices Marketing, 20(1), pp.59-72.35. Naceur Jabnour and Hussein (2002), "Measuring Perceived service quality at UAECommercial Banks", International Journal of Quality and ReliabilityManagement 20(4), pp.458-472.36. Naceur Jabnour and Hussein (2002), "Measuring Perceived service quality atCommercial banks", International Journal of Quality and ReliabilityManagement, 20(4), pp.458-472.37. Natarajan, R., Balaram, A., and Ramana, V., (1999), Continuousimprovement of service operations: applications of service template. Total QualityManagement 10(6), DD.877-885.38. Newman, K and Cowling, A., (1996). Service quality in retail banking: Theexperience of two British clearing banks. The International Journal of BankMarketing, 14(6), pp.3-11.39. Niki Glaveli, Chris Liassides and Spathis (2006), "Band Service Quality evidencefrom five Balkan Countries", Managing Service Quality, 16(4), pp.380-394.40. Parasuraman, A., Zeithammal, V., and Berry, C, (1985), A Conceptual Model ofService Quality and its implications for future Research, Journal Marketing, 4994,pp.69-81.41. Pijil G.J, Van Der (1994). Measuring The Strategic Dimensions of the Qualityof Information, Journal of Strategic Information Systems, 3(3), pp.179-190.42. Powell, T.C., (1995), Total Quality Management as competitive advantage: AReview and Empirical Study, Strategic Management Journal, 16(2), pp. 15-3743. Reichheld, F. Ford Sasser, E.W., (1990), Zero Defections: Quality comes to service.Harvard Business Review, September-October, pp.105-1 1 1.

37www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578044. Schmenner, R.W., (2004), Service Business and Productivity, Decision Sciences,35(3), pp.333-347.45. Swan, J.E., (1988), A Consumer Satisfaction Related to Disconfirmation ofExpectations and Product Performance, Journal of Consumer Satisfaction andDissatisfaction and Complaining Behaviour, 1(1), pp.40-47.46. Teas, K.T., (1994), Expectations as a comparison standard in measuring servicequality an assessment of a reassessment, Journal of Marketing, 58(January),pp.l32-139.47. Terrence Levesque and Gurdon, H.G. Me Dor gull (1996), "Determination ofcustomer satisfaction in retail banking", International Rural BankMarketing, 14(7), pp. 12-20. . .48. Thamaraiselvan, N., and J. Raja, (2007), "Customer Evaluation ofAutomated Teller Machines, service Encounters - An Empirical Model", TheJournal of Contemporary Management Research, 1 ( 1 ) , March, pp.52-71.49. Vanniarajan, T. and Gurunathan, P., (2007), "SERVPERF analysis in retailbanking: Review of Professional Management, 5(1), January-June, pp.11-22.50. Yavas, V and Yasin, M.M (2001), "Enhan ching organizational performance in banksa systematic approach," Journal of Services Marketing, No.6, pp.444-453.51. Zeithammal, V., Parasuraman, A., and Berry, L., (1988), SERVQUAL: A Multi-Item scale for measuring Consumer Perceptions of Service Quality,Journal of Retailing, 64(Spring), pp. 12-40.

38www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTE-COMMERCE TRENDS FOR ORGANIZATIONALADVANCEMENTDR. BADIUDDIN AHMED*; MD RAFIUDDIN***Associate Professor & Head, Department of Management and Commerce,Maulana Azad National Urdu University,Hyderabad, A.P.- 500032 India.**Assistant professor, Department of Management Studies,Lords Institute of Engineering and Technology,Himayath Sagar, Hyderabad, A.P. -500008 India.Globalization means a big change in regulation of the economy. Borders are less significantand are partly supplemented by electronic firewalls (e.g. the Golden Shield Project ofChina). The recent advances in wireless and mobile communication technologies enableusers to conduct commercial activities anywhere and at any time. In this new environment,the designing of appropriate applications constitutes both a necessity and a challenge at thesame time in order to support effectively the movable user. Considering the global spread ofe-commerce technologies and the rapid pace of organizational adoption of thesetechnological advancements, there is a need for reliable research results on e-services,outsourcing applications, and consumer resources management, Consumer Behaviour,Organizational Development. This article provides current coverage of e-commerce issues,like electronic identities (e-persons), electronic actions (e-actions), electronic market placesand social fora, trends, and methodologies with a focus on how organizations can adapt toand benefit from new systems and tools in the field. consumers are more focused than everon finding the best prices, firms like Amazon that are known for their high value at lowprices strategy are well positioned to prosper.KEYWORDS: Distinct Categories of E-Commerce, Significance of E-Commerce, Trends,New Tricks, Commit To Advancement, What's Next.INTRODUCTIONThe ecommerce and Internet sector has evolved rapidly, going through severaldistinct stages since its beginnings in the 1970s. Before we delve into an analysis of thetrends that are shaping the Internet sector todayElectronic commerce or e-commerce consists primarily of the distributing, buying,selling, marketing, and servicing of products or services over electronic systems such as theInternet and other computer networks. The information technology industry might see it asan electronic business application aimed at commercial transactions. It can involveelectronic funds transfer, supply chain management, e-marketing, online marketing, onlinetransaction processing, electronic data interchange (EDI), automated inventory managementsystems, and automated data collection systems. It typically uses electronic communicationstechnology such as the Internet, extranets, email, e-books, databases, and mobile phones.

www.zenithresearch.org.in39ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIG 1: MEANING OF E-COMMERCEGLOBAL VIEW OF E-COMMERCEThe Great Recession that the world faced in 2008-2009 had mixed effects on the E-Commerce and Internet industry. Online ad sales were soft, and in many cases ad priceswere down considerably. Since consumers are more focused than ever on finding the bestprices, firms like Amazon that are known for their high value at low prices strategy are wellpositioned to prosper. The global Internet audience continued to grow rapidly, with theworldwide base of Internet users now in the 1.7 billion ranges, including a large base ofmobile broadband users.Growth in 2010-2011 will be access to the Internet via mobile devices and consumeraccess to entertainment online (such as television programs viewed online). Consumerpurchases overall will remain relatively weak, due to tough economic times, particularly inthe U.S. and other nations with high rates of unemployment. Sales on eBay were up by only2.1% in 2009, but profits soared by 34.2% thanks to cost control and effective newstrategies.The standout winner in e-commerce of late is Amazon, where sales have soared thanks toaggressive discount pricing and an ever-growing variety of merchandise categories.Amazon’s revenues rose by 27.8% in 2009, to $24.5 billion, and profits grew substantiallyas well. Clearly, there is growing adoption of online consumer purchases throughout theworld’s major economies. Online advertising leader Google saw revenues increase 8.5% infiscal 2009, to $23.65 billion, while profits soared 54.2% to $6.5 billion. China now holdsthe world’s highest number of Internet users, at an estimated 384 million as of early 2010,according to the China Internet Network Information Centre, representing growth of 86million during 2009. Growth in broadband subscriptions worldwide is very strong. Analystsestimate that there were 578 million broadband subscribers worldwide by the end of 2009(both fixed and wireless), and that the number will surpass 1 billion by 2013.FUNCTIONS OF ELECTRONIC COMMERCEThe four functions of e-commerce are:1. Communication

www.zenithresearch.org.in40ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802. Process management3. Service management4. Transaction capabilitiesFIG 2: SHOWING FOUR FUNCTIONS OF E-COMMERCEDISTINCT CATEGORIES OF E-COMMERCEFour distinct categories of electronic commerce can be identified as follows• BUSINESS-TO-BUSINESS (B2B): Business-to-Business refers to the full spectrum ofecommerce that can occur between two organizations. Among other activities, B2Becommerce includes purchasing and procurement, supplier management, inventorymanagement, channel management, sales activities, payment management, and service andsupport. While we may be familiar with a few B2B pioneers- e.g., Chemdex(www.chemdex.com), Fastparts (www.fastparts.com), and FreeMarkets(www.freemarkets.com) - some other exciting new consortia are emerging.• BUSINESS-TO-CONSUMER (B2C): Business-to-Consumer e-commerce refers toexchanges between businesses and consumers, e.g., Amazon.com, Yahoo.com andSchwab.com. Similar transactions that occur in business-to business e-commerce also takeplace in the business-to-consumer context. For instance, as with smaller business-tobusiness,transactions that relate to the “back office” of the customer (i.e., inventorymanagement at the home) are often not tracked electronically. However, all customerfacing,or “front office” activities are typically tracked. These include sales activities,consumer search, frequently asked questions and service and support.

www.zenithresearch.org.in41ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780• CONSUMER-TO-CONSUMER (C2C): Consumer-to-Consumer exchanges involvetransactions between and among consumers. These exchanges may or may not includethird-[arty involvement as in the case of the auction-exchange eBay. Other activitiesinclude: classified ads (www.numberoneclassifieds.com), games (www.heat.net), jobs(www.monster.com), Web-based communication (www.icq.com), and personal services(e.g., Yahoo! Personals, webpersonals.com).• CONSUMER-TO-BUSINESS (C2B): Consumers can band together to form and presentthemselves as a buyer group to businesses in a consumer-to-business relationship. Thesegroups may be economically motivated as with the demand aggregator, Mercata.com, orsocially oriented as with cause-related advocacy at voxcap.com. see belowFIG 3: COMPARISON OF DISTINCT CATEGORIES OF E-COMMERCESIGNIFICANCE OF E-COMMERCEThe electronic market place participants are not limited only to digital productcompanies. e.g. publishing, software and information industries. The digital age and thedigital revolution affect all by virtue of their process innovations: Web-TV and digital television is going to affect TV news and entertainmentprogrammes. Changes in telecommunication will affect the way the information is received,product announcements, orders etc. Phones, Fax machines, Copiers, PCs and Printers have become essential ingredientsin doing business, so are E-mail, websites and integrated digital communication. Today’s office business machines are not integrated. (eg. Faxed orders have to betyped in on computers).COMMON ONLINE CONSUMER ACTIVITIES1. Research Work2. Automobile Purchase Information

42www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57803. Banking/Manage Accounts4. Instant Message5. Dating6. Shopping7. Read/Post to Facebook, MySpace and LinkedIn8. Check/Trade Stock and Investment Accounts9. Email/Instant Message10. Job Search11. Mortgage Information and Application12. Participate in Auctions13. Play Games14. Read News Items15. Read Product or Entertainment Reviews16. Download Entertainment/Watch Videos17. Research Consumer Health Issues18. Shop/Check Product Prices and Features19. Make Travel Reservations20. Visit Pornographic Sites21. GambleMAJOR TRENDS AFFECTING THE E-COMMERCE1. Booking Travel Over the Internet Becomes the Norm2. Apple’s iPod Revitalizes the Music Industry/Amazon and MySpace Follow Suit3. Internet Film and TV Content Grows as Viewers’ Options and Downloads Expand4. User Generated Content, Social Media, Video, Blogs and Wikis Abound5. Car Purchasers Rely on the Internet6. Health Information Research Remains a Leading Use of the Internet

43www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57807. Bricks, Clicks and Catalogs Create Synergies While Online Sales Growth Slows8. Amazon Posts Growth While Other Retailers Suffer9. Online Advertising Becomes Targeted, Nears 10% of Total U.S. Advertising Market10. Banks See Growth in Online Services11. Insurance Direct Selling and E-Commerce Grows12. Wi-Fi Accelerates13. WiMAX Extends Wireless Range Far Beyond Wi-Fi14. Last Mile Challenges Tumble; Mass Broadband Markets Emerge15. Fiber-to-the-Home Gains Traction16. Services Available via Ultra-High-Speed Broadband are Imaginative, Futuristic17. U.S. Broadband Connections Rank Behind Other Nations18. VOIP Use Soars and Threatens to Revolutionize Telecom19. Telecommunications Move Online Including Unified Communications,Telepresence20. Security Needs Flourish/Firefox and Google Chrome GrowOLD DOGS HAVE LEARNED NEW TRICKSResearch firm McKinsey & Company recently unearthed a fascinating statistic: 86percent of the most successful e-tailers are online channels of existing, established brickand-mortarcompanies. Someone a long time ago put forth the radical theory that a companyneeds a business plan to survive in the long-term. Web-based companies slapped together,someone’s home office are not likely to have as sound business plans as a company such asEddie Bauer that has been around for generations.E-COMMERCE STATISTICSTABLE 1: E-COMMERCE INDUSTRY QUARTERLY REVENUES: 2008-2009(IN MILLIONS OF US$)NAICSCode 1 Total 2Kind of business 2009 2008 % of3Q* 2Q 1Q 4Q5112 Software publishers 33,239 34,905 33,124 38,533 100.0

44www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Government2,5672,6942,3992,5317.7Business26,99628,17126,63532,24781.2Household consumers & individuals3,6764,0404,0903,75511.1516,5181,519Internet publishing & broadcasting,Internet service providers, websearch portals & other informationservicesGovernmentBusiness Household consumers &individuals14,3721,9389,52214,2041,8589,35914,1352,0509,13515,1232,1629,656100.013.566.32,9122,9872,9503,30520.3Wired telecommunications carriers43,92844,75944,29445,754100.05171GovernmentBusiness1,65622,4401,70123,1861,56223,0611,78024,1963.851.1Household consumers & individuals19,83219,87219,671S45.15172Wireless telecom. carriers (exceptsatellite48,584 47,673 47,025 47,589 100.0Data processing, hosting & relatedservices17,68217,79117,55518,008100.05182GovernmentBusinessHousehold consumers & individuals1,82014,763S2,00014,6681,1231,78614,473S1,81914,907S10.383.5SComputer systems design andrelated services65,13264,35661,92864,816100.05415GovernmentBusiness21,48943,03920,05143,64018,57942,74819,30544,91833.066.1Source: U.S. Census Bureau

45www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780S = Estimate does not meet publication standards because of high sampling variability(coefficient of variation is greater than 30%) or poor response quality (total quantityresponse rate is less than 50%). For a description of publication standards and the totalquantity response rate, see http://www.census.gov/quality/S20-0_v1.0_Data_Release.pdf* Preliminary estimate.1For a full description of the NAICS codes used in this table, seewww.census.gov/epcd/www/naics.html2 Percentages for class of customer using latest quarterly numbers.TABLE 2: WORLD INTERNET USAGE & POPULATION STATISTICS: 2009World RegionsPopulation(2009 Est.)Population%of WorldInternetUsage,Latest Data%Population(Penetration)Usage% ofWorldUsageGrowth2000-2009Africa 991,002,342 14.64% 67,371,700 6.8% 3.89% 1392.4%Asia 3,808,070,503 56.27% 738,257,230 19.4% 42.58% 545.9%China 1,338,612,968 19.78% 360,000,000 26.9% 20.76% 1500.0%Hong Kong 7,055,071 0.10% 4,878,713 69.2% 0.28% 113.7%Japan 127,078,679 1.88% 95,979,000 75.5% 5.54% 103.9%India 1,156,897,766 17.09% 81,000,000 7.0% 4.67% 1520.0%Europe 803,850,858 11.88% 418,029,796 52.0% 24.11% 297.8%France 62,150,775 0.92% 43,100,134 69.3% 2.49% 407.1%Germany 82,329,758 1.22% 54,229,325 65.9% 3.13% 126.0%Russia 140,041,247 2.07% 45,250,000 32.3% 2.61% 1359.7%Sweden 9,059,651 0.13% 8,085,500 89.2% 0.47% 99.7%United Kingdom 61,113,205 0.90% 46,683,900 76.4% 2.69% 203.1%Turkey 76,805,524 1.13% 26,500,000 34.5% 1.53% 1225.0%Middle East 202,687,005 2.99% 57,425,046 28.3% 3.31% 1648.2%North America 340,831,831 5.04% 252,908,000 74.2% 14.59% 134.0%Canada 33,487,208 0.49% 25,086,000 74.9% 1.45% 97.5%United States 307,212,123 4.54% 227,719,000 74.1% 13.13% 138.8%

46www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780LatinAmerica/Caribbean586,662,468 8.67% 179,031,479 30.5% 10.32% 890.8%Mexico 111,211,789 1.64% 27,600,000 24.8% 1.59% 917.5%Brazil 198,739,269 2.94% 67,510,400 34.0% 3.89% 1250.2%Oceania/Australia 34,700,201 0.51% 20,970,490 60.4% 1.21% 175.2%New Zealand 4,213,418 0.06% 3,360,000 79.7% 0.19% 304.8%Australia 21,262,641 0.31% 17,033,826 80.1% 0.98% 158.1%WORLD TOTAL 6,767,805,208 100.00% 1,733,993,741 25.6% 100.00% 380.3%Source: Internet World Stats, www.internetworldstats.com/stats.htmNote: Data is as of September 30, 2009.TABLE 3: TOP 10 GLOBAL WEB PARENT COMPANIES, HOME & WORK:DECEMBER 2009Parent NameUnique Audience(000)ActiveReach %Time PerPersonGoogle 353,851 83.91 2:38:50Microsoft 315,490 74.81 3:01:38Yahoo! 228,711 54.23 2:12:36Facebook 206,878 49.06 5:57:17eBay 163,844 38.85 1:41:31Wikimedia Foundation 141,239 33.49 0:16:01Amazon 137,364 32.57 0:32:11AOL LLC 129,360 30.67 2:21:03News Corp. Online 120,316 28.53 0:59:17IAC/InterActiveCorp 115,131 27.30 0:11:36Source: Nielsen Online

47www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TALE 4: TOP 20 E-COMMERCE SITES, JANUARY 2009(WEEK ENDING JANUARY 24, 2009; BASED ON MARKET SHARE OF VISITS)Rank Name Domain Market Share1 Amazon.com www.amazon.com 12.65%2 Walmart www.half.ebay.com 5.34%3 Target www.target.com 3.14%4 BestBuy www.bestbuy.com 2.52%5 JC Penney www.jcpenney.com 1.96%6 QVC www.qvc.com 1.83%7 Sears www.sears.com 1.74%8 Overstock.com www.overstock.com 1.58%9 Dell USA www.dell.com 1.41%10 Home Depot www.homedepot.com 1.35%11 Lowes www.lowes.com 1.30%12 CircuitCity.com www.circuitcity.com 1.28%13 Ticketmaster www.ticketmaster.com 1.24%14 Home Shopping Network www.hsn.com 1.23%15 Macy's www.macys.com 1.03%16 Cabela's www.cabelas.com 1.03%17 Kohl's www.kohls.com 0.95%18 Fandango www.fandango.com 0.93%19 Barnes & Noble www.barnesandnoble.com 0.85%20 Toys 'R Us www.toyrsus.com 0.84%Source: Experian HitwiseNote: This index does not include websites from the following industries: auctions,classifieds, subscription services, DVD and video game rental, reward point collecting andcoupons.

48www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 5: LEADING SEARCH ENGINES, FEBRUARY 2010(RANKED BY VOLUME OF SEARCHES)Rank Search Engine Search Volume1 www.google.com 71.35%2 search.yahoo.com 14.60%3 www.bing.com 9.56%4 www.ask.com 2.55%5 www.aolsearch.com 1.06%Source: Experian HitwiseNote: Data was collected during the four weeks ending February 6, 2010.TABLE 6: EBAY QUARTERLY STATISTICS: 2003-2009200920092009200920082007200620054Q3Q2Q1Q1Q1Q1Q1QValue of ItemsSold 1(In Billions of US$)Revenues 2(In Billions of US$)Income 3(In Millions ofUS$)16.3 14.6 13.4 12.8 16.0 14.3 12.5 10.62.40 2.20 2.10 2.02 2.19 1.77 1.39 1.032586.0 502.0 479.0 500.0 561.5 460.5 342.9 275.5Active Users 4(In Millions)90.1 89.2 88.4 88.3 86.2 82.9 75.4 60.5Source: eBay1 Gross Merchandise Volume (GMV), the total value of all successfully closed items oneBay’s trading platforms.2 Consolidated net revenues.

49www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57803 Pro forma net income, or non-GAAP net income.4 The number of users on the eBay platform, who bid on, bought, listed or sold an itemwithin the previous 12-month period.COMMIT TO ADVANCEMENTAs we look back at e-commerce as it was two years ago, we have seen major shiftsin the way companies are doing business online. What was hip then is not what customerswant today. Those companies that are successful and staying successful are constantlyreshaping and revaluating their e-businesses. Companies such as Amazon, eBay, and Dell(and the list goes on) have made sure to stay ahead of the curve in the e-commerce arena.Commitment to never-ending improvement and adopted the advancement is the key tostaying ahead. You will notice that it is a combination of offering more and better services,redefining their position in the marketplace, researching customer buying trends, partneringwith companies, and continuing to take advantage of technological changes.CASE # 1THE DELL STORYDell was one of the first companies to reap the benefits of e-commerce.Dell has continually improved its site to include more personalization and one-to-onerelationships with its customers. It has consistently increased online customer service andhas expanded its business to provide added value services. Currently, more than 40 percentof the company's revenue is from sales online. This year it has generated approximate $15million per day of revenue online. Dell expects to generate half its revenue online by theend of this year. Dell attributes its success to customer service and providing a personalizedexperience for its shoppers. In 1999, Dell was named one of the winners of the Ten BestWeb Support Sites from the Association of Support Professionals. Although Dell is one ofthe leading e-commerce success stories, it has not stopped thinking ahead. This year itinvested $26 million into SiteSmith, an application service provider that is expanding itsservices worldwide. You may ask, why would Dell go into the application service providermarket? Well, Dell's acquisition is part of the company's efforts to expand into new marketsand increase its revenue stream beyond just selling computers online. Dell's goal is toincrease its infrastructure services using the ASP business model. Another initiative is thedevelopment of Dell Ventures, which will focus on making strategic investments in earlystageprivate companies. Dell is also offering clients value-added services such as Webdesign and e-commerce storefronts.

50www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780CASE # 2THE EBAY STORYeBay, with a simple concept (Web-based auctions) and a market capitalization of$16 billion, has harnessed the resources of the Internet to capture over two millionregistered users. Has it stopped looking ahead? No! eBay is constant looking for ways toincrease its markets by providing international sites and moving into new markets. Thisyear, eBay partnered with zipReality.com to provide a new category of products andservices called eBay Real Estate. zipRealty.com will provide professional real estateservices as part of the new category. By taking advantage of zipRealty.com and thepowerful technology and infrastructure of eBay, both companies will win in this market.Even though eBay is a brand name for auctioning online, it still keeps moving forward andthinking of the next steps it must take to stay ahead of the market.CASE # 3THE JCPENNEY STORYJCPenney.com has 2.56% market share. It is amazing how JCPenney went fromincluding a few catalog items online to becoming one of the most visited sites on theInternet. In order to move ahead, it formed a separate subsidiary called JCP InternetCommerce Solutions, which focuses primarily on its e-commerce presence and catalog. Thekey to JCPenney's success was thinking about how it could provide the best customerservice, fulfilment, and personalization online. We are seeing that often brick-and-mortarcompanies will create a new department or company purely related to e-commerce. Why?Because e-commerce is not completely the same as selling via catalog or in a brick-andmortarstore. However, it takes time to shift a large corporation to think in e-commerce.CASE # 4THE BID.COM STORYBid.com was a company that created an auction-based site focused on business-toconsumerauctions. It wanted to provide a site similar to eBay. The results it lostsubstantially over the year. In the spring of 1999, the company's share price crested at$30.70 in Toronto but then suffered a long decline, bottoming at the end of May at $2.80per share. Did Bid.com keep on pushing its site to the business-to-consumer market? No!Instead it rethought its business model and shifted toward the business-to-business model.The company knew it had a great auction technology, so it moved to a business model basedentirely on selling the online auction technology and services to other businesses. Thecompany business revenue model is now based on implementation fees, monthly hostingfees, and transaction fees from the businesses.Bid.com is now seeing some successes with this new model. Customers such as GECapital and strategic partners such as PricewaterhouseCoopers are becoming part ofBid.com. In this example, we see a complete shift in the offerings from an e-company.

51www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780THINK! THINK! THINK! WHAT'S NEXTA few companies are thinking ahead. Because the e-commerce field is constantlychanging with innovative individuals and companies moving ahead, commit toadvancement is the key.The following is a great list to help you make sure you are not forgetting the areas to focus:1. Read.a. Know what the latest research/inventions/tech solutions are.b. Know what is happening in the market around you.2. Research the trends.a. Your customers change daily-do you know how they've changed?b. Available products change daily.i. Do you know what's out there?ii. Can you add new products to your site?c. Your competitors change daily.i. Do you know what they're planning?ii. How can you position yourself away from them?iii. How can you keep your selling point unique?3. Invest in change that improves access to your goods and services.a. Invest in marketing repositioning.b. Invest in Web site enhancements.4. Invest in change that adds value to your goods and services.a. Invest in service upgrades.b. Invest in product upgrades.c. Invest in information upgrades.5. Create barriers to entry for subsequent competitors.a. Make sure the value of your product/service increases with higher use ordistribution.b. Keep your branding unique and strong.

52www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57806. Network!c. Define yourself apart by honing your unique selling point.a. Become involved in groups that feed on success.b. Join the e-commerce consortium.CONCLUSIONThe e-commerce is one of the biggest thing that has taken the business by a storm. Itis creating an entire new economy, which has a huge potential and is fundamentallychanging the way businesses are done. It has advantages for both buyers as well as sellersand this win-win situation is at the core of its phenomenal rise. The e-commerce market isfairly new. Companies will need to test what works and what does not work. The key is todo it right once. You may find over time that what you thought would work does not work.Though there are some weak links, with improvements in technology and commitment inthe advancement, they will be ironed out, making the e-commerce easy, convenient andsecure. The ecommerce is certainly here to stay.REFERENCES1. Bajaj & Nag (2000), “E-Commerce- The Cutting Edge of Business”, New Delhi20002. Brian E. Mennecke and Troy J. Strader (2003), Mobile Commerce—Technology,Theory, and Applications, Idea Group Publishing, Singapore and London.3. C.S.V.Murthy (2006), E-Commerce, Himalaya Publishing House, New Delhi 2002.4. Georg Erber, Peter Klaus und-“E-Commerce-induced Change in Logistics andTransport Systems”,5. International Journal of Electronic Commerce - Special section: Diversity inelectronic commerce research, Volume 1 Issue 1, September 2010.6. Jack W. Plunkett (2010), E-commerce and Internet Business Almanac, Plunkett’sResearch Ltd. USA.7. Nabeel Al-Qirim (2004), Electronic Commerce: in Small to Medium-SizedEnterprises, Idea Group Publishing, Singapore and London.8. Sam Lubbe (2003), The Economic and Social Impacts of E-Commerce, Idea GroupPublishing, Singapore and London.9. Steve Elliot (2002), Electronic Commerce: B2C Strategies and Models, John Wiley& Sons Ltd, England.10. Ulrich Voigt in: Economic Bulletin 10, Vol. 38, 2001, p. 313-320.

53www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578011. http://en.wikipedia.org/wiki/Electronic_commerce12. http://www.census.gov/quality/S20-0_v1.0_Data_Release.pdf13. http://www.cyberzest.com/ecommerce/Ecommerce%20Growth%20in%20India14. www.census.gov/epcd/www/naics.html15. www.ecommerce-guide.com16. www.ecommercetrends.com17. www.internetworldstats.com/stats.htm

54www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780A COMPARATIVE STUDY OF RECRUITMENT PROCESS IN ITCOMPANIES IN INDIA: ASPIRANT’S PERCEPTIONABSTRACTPOOJA MISRA*; JAYA GUPTA***Assistant Professor, Birla Institute of Management Technology,Plot No. 5, Knowledge Park – II, Greater Noida, UP – 201306.**Assistant Professor, Birla Institute of Management Technology,Plot No. 5, Knowledge Park – II, Greater Noida, UP – 201306.The information technology (IT) industry has become of the most robust industries in theworld. Over the past decade, the Indian IT-BPO sector has become the country‟s premiergrowth engine, crossing significant milestones in terms of revenue growth, employmentgeneration and value creation, in addition to becoming the global brand ambassador forIndia. Most of the new recruits in this industry are fresh graduates indicating the availabilityof a large pool of fresh resources each year as opposed to the siphoning off of resourcesfrom other industries.The recruitment process is about employers identifying suitable employees for thefuture and about candidates gaining an insight into the organisation. With an upsurge ininterest in the idea of „employer branding‟, more employers are giving thought toensuring a positive candidate experience and favourable company material andcommunications received by individuals as part of the recruitment process.The present study aims at understanding the positioning of a leading IT company inIndia, Electronic & Computer Systems, (E & CS), as it is perceived by candidates. Theobjective of the study is to identify the factors that could contribute toeffective/ineffective recruitment process and a comparison to the process prevalent incompetitive organisations in Tier I cities. Factor Analysis along with perceptual mappingwas used for analysing the data.KEYWORDS: Recruitment, Selection, Perceptual Mapping.INTRODUCTIONThe information technology (IT) industry has become of the most robust industries in theworld. IT, has been a key driver of global economic growth. Economies of scale andinsatiable demand from both consumers and enterprises characterize this rapidly growingsector. Over the past decade, the Indian IT-BPO sector has become the country‟s premiergrowth engine, crossing significant milestones in terms of revenue growth, employmentgeneration and value creation, in addition to becoming the global brand ambassador forIndia.

55www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802009 was instrumental for this industry in many ways. While the industry displayed tenacityand resilience, it also marked the commencement of the journey to achieve its aspirations inview of the altered landscape. Several measures and India‟s game changing valueproposition has helped India widen its leadership position in the global sourcing market.The advent of 2010 signalled the revival of outsourcing within core markets and theemerging markets increasingly have initiated to assume outsourcing for enhancedcompetitiveness. Key demand indicators in the last two quarters such as increased deal flow,volume growth, stable pricing, and faster decision making has made the industry post goodresults. Having apt IT and management skills, in fact, is assuming an ever-greaterimportance, in the current day environment, where the IT sector is emerging as a majordriver of the Indian economy. IT manpower development today, is not only crucial forsustaining the growth of the Indian economy, but is also important for maintaining thecountry‟s edge in the global markets, where competition is on the rise.The total number of IT and ITES professionals employed in India has grown from 284,000in 1999-2000 to over 1 million in 2004-05, growing by over 200,000 in the last year alone.INDIAN IT AND ITES SECTORS: GROWTH IN PROFESSIONALS100000075000050000025000056000160000 284000 430114522250 670000 84150010450000Most of the new recruits in the industry are fresh graduates indicating the availability of alarge pool of fresh resources each year as opposed to the siphoning off of resources fromother industries. A break-up of the 1 million professionals in different sectors indicate thatthe number of employees in the ITES-BPO segment has witnessed the highest levels ofgrowth over the last few years – attributed to the tremendous growth in demand for theseservices. ITES companies recruited approx. 100,000 professionals in 2004-05. Companiesin the IT software exports sector recruited 75,000 professionals in 2004-05, compared to65,000 professionals recruited in 2003-04.As the global economic recession begins to become a thing of the past and companiesacross the world start hiring with renewed interest, the issue of talent would once again getprominence. The war for talent has been getting peculiar, with most industry sectors,including the sunrise IT-BPO segment facing a challenge in terms of hiring right andholding on to expertise. As hiring becomes the norm, so will attrition. IT-BPOorganisations will face pressure from peer firms, and also from organisations operating inother industry verticals. The IT-BPO industry will therefore have to focus on its internalcustomer, its people. Companies would need to relook at their people management practicesand embrace policies that create a conducive work environment to help retain valuableemployees.

56www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Recruitment and selection is the process of discovering of potential of applicants for actualor anticipated organizational vacancies. It actually links together the organizations with jobopenings and those seeking jobs. According to Flippo‟s : “Recruitment is a process ofsearching for prospective employees and stimulating and encouraging them to apply forjobs in an organization.”The purpose of recruitment is to locate sources of manpower tomeet job requirements and job specifications. The recruitment and selection experience of aperson has an impact on the likelihood that a candidate would accept a job offer and ontheir subsequent commitment to remaining with the organisation.Various factors which could influence the recruitment process of an organization wouldinclude the size of the organization., the employer branding of the organization, theemployment conditions in the community where the organization is located, the effect ofpast recruiting efforts which show the organization‟s ability to locate and retain the goodperforming people, working conditions, salary and benefit packages offered by theorganization, rate of growth of the organization, the future expansion and productionprograms and the socio- cultural, economic and legal factors.FLOWCHART OF THE PROCESS OF RECRUITMENT IN E & CSStartRequirements /Vacancies inProjectReported toResourceManagementGroup (RMG)Checks forinternalavailablitlyNoCAMPUSTEAM forFreshersTAG forRecruitmentEP TEAM forExperiencedProfessionals1.Sourcing Team Checksprofiles in careers portal orcareer websites andschedule Interviews2.Placement Vendorsinform candidates in theirdatabase3.Direct Candidates reportdirectly at the Venue4.Candidates through BYBreport directly with EP RefID created by the refereeYesThen the candidate isredirected to project forinternal absorbtionSources Of Recruitment1.Direct Candidates2.Careers Portal3.Regional Fast Track (RFT)4.Referrals BYB5.Placement VendorsNORegistration atVenueCheck forEligibilityCriteriaDrop candidateYESProject AllocationOffer Acceptanceby CandidateInterview ProcessInitiation of BGCby the candidate1.Technical Round2.Management Review3.HR RoundInductionProgram1.5 Days YESBGC Positive?NODrop TheCandidate -RejectEND

57www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780IDENTIFICATION OF THE PROBLEMWith an upsurge in interest in the idea of „employer branding‟, more employers are givingthought to ensuring a positive candidate experience and the kind of company material andcommunications received by individuals as part of the recruitment process. Hence, thisstudy aims at realising how the process is perceived by candidates with respect to thevarious attributes identified and in comparison to other Tier I companies.OBJECTIVEThe objective of the present study is to identify the factors for an effective/ineffectiverecruitment process and to conduct a comparative study with other organisations existing inthe same industry.RESEARCH METHODOLOGYThe study was conducted amongst the experienced professionals who came in for weekendand weekday drives at E & CS facilities with the aid of a questionnaire. Candidatescurrently working in Tier I companies as well as earlier employed by Tier I companies havebeen chosen as the respondents of this survey. It should also be noted that majority of therespondents have attended interview process of more than two companies.Exploratory research design was used in this study for the purpose of analysis usingsurveys. The questionnaire has tried to capture certain factors which have been obtainedthrough discussions with the employees, and which have been observed during the course ofthe study duration.The information collected from the sample of respondents was to identify the major factorsout of those already captured in the questionnaire and where E & CS stands against othermajor Tier I companies with respect to certain factors in the minds of candidates who walkinfor the recruitment drive.The data for this study was mainly primary data. An interval 5 – point Likert scale was usedto collect the responses. The questionnaire included questions which was based oninformation sharing, communication, time taken for the interview process, interactionbetween candidates and the HR / Panellist, response of HR personnel regarding queriesfrom selected candidates etc,. Pretesting was done and chron-bach alpha value was found tobe above 0.5. The sampling technique used was convenience sampling. Internet, direct mailand personnel interview were the modes by which responses were collected from samples.Perception mapping is a graphics technique used by marketers that attempts to visuallydisplay the perceptions of customers or potential customers. Typically the position of aproduct, product line, brand, or company is displayed relative to their competitors.Perceptual maps may have any number of dimensions but the most common is twodimensions. Items that are positioned close to each other are seen as similar on the relevantdimensions by the consumer.

58www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780DATA ANALYSIS AND RESULTSThe hypotheses tested included factors such as information provided regarding prerequisitesof interview, time taken for registration, time between the call interview andactual interview, communication regarding venue & interview schedule, interaction withpanellist, interaction with HR, seating & other infrastructure at the Venue, level of difficultyof interview as against years of experience, transparent negotiations by HR (i.e. letting youknow their limitations when it comes to salary and role during negotiations), interactionwith HR personnel after selection, query resolution by Personnel after selection until offer,process Co-ordination at venue and overall experience at the venue. A Fisher MSD test wasconducted to test these hypotheses. From the final set of data it could be concluded thatthere is no significant difference between majority of the factors among the Tier Icompanies since these processes are more or less standardised in the IT Industry.However, there are two hypotheses that have been rejected by Fisher MSD.Q9 Transparent negotiations by HR (i.e. letting you know their limitations when itcomes to salary and role during negotiations)H0: All the companies are similar in terms of transparency during HR negotiations.H1: There is significant difference in transparency during HR negotiations amongorganizations.The minimum significant difference which causes this rejection can be obtained from FisherMSD.E & CSCompany1Company2Company3Company4Company5E & CS - 0.7281 0.7629 0.8921 0.8075 1.0332Company 1 0.24975 - 0.8617 0.9780 0.9015 1.1082Company 2 0.5128 0.26304 - 1.0041 0.9298 1.1313Company 3 0.932* 0.6823 0.4192 - 1.0384 1.2222Company 4 0.5746 0.3248 0.06176 0.3575 - 1.1619Company 5 0.4961 0.24638 0.016667 0.4359 0.07843 -Result of Fisher MSD - Q9 - Transparent negotiations by HR (i.e. letting you know theirlimitations when it comes to salary and role during negotiations)Here the rejection occurs due to significant observed absolute value of the difference inmeans between each pair of groups i.e E & CS Vs Company 3. Since 0.932 > 0.7629 Thenull hypothesis is rejected.

59www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Q11Query Resolution by Personnel after selection until offerH0: All the companies are similar in their approach to resolution queries from selectedcandidates.H1: There is significant difference their approach to resolution queries from selectedcandidates among different companies.The minimum significant difference which causes this rejection can be obtained from FisherMSD.E & CSCompany1Company2Company3Company4Company5E & CS - 0.6838 0.7164 0.8378 0.7583 0.9702Company 1 0.4307 - 0.8093 0.9184 0.8466 1.0407Company 2 0.9047* 0.4739 - 0.9430 0.8732 1.0624Company 3 0.6816 0.25084 0.22308 - 0.9752 1.1478Company 4 0.487 0.05627 0.4176 0.19457 - 1.0911Company 5 0.7158 0.28502 0.18889 0.03419 0.22876 -Result of Fisher MSD - Q11 - Query Resolution by Personnel after selection until offerHere the rejection occurs due to significant observed absolute value of the difference inmeans between each pair of groups i.e E & CS Vs Company 2. Since 0.9047 > 0.7164 Thenull hypothesis is rejected.FACTOR ANALYSISFactor analysis is a correlation technique to determine meaningful clusters of sharedvariances. The Cronbach‟s Alpha being 0.879 shows data is highly reliable.KMO and Bartlett's TestKaiser-Meyer-Olkin Measure of Sampling Adequacy. .690Bartlett's Test of Sphericity Approx. Chi-Square 332.193Df 78Sig. .000

60www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780KMO value of 0.690, shows that the number of sample is adequate for doing factor analysis.The high value of Bartlett‟s Test and the sig. Value of 0.000 (

61www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TIME AND ITS CORRELATION TO EFFECTIVENESS OF PROCESSQ3 - Time between the call interview and actual interview, Q13 - Over all Experience atVenue, Q12 - Process Co-ordination at venue and Q2 - Time taken for Registration loadhigh on the second component.Hence second component explains the factor of Time and its correlation to effectiveness ofthe process.EXPERIENCEQ7 - Seating & Other Infra at Venue, Q8 - Level of Difficulty Interview as against youryears of experience, Q9 - Transparent negotiations by HR ( i.e. letting you know theirlimitations when it comes to salary and role during negotiations) and Q11 - QueryResolution by Personnel after selection until offer load high on the third component.Hence third component explains the factor of experience a candidate has in different stagesof interview.INFORMATION SHARINGQ1.i.e. Information provided regarding the pre-requisites of interview loads high on thefourth component.The fourth component thus explains the factor of information shared by the organisationbefore the Interview process.DISCRIMINANT ANALYSISIn the present study, Discriminant analysis was used as confirmatory research as against thefactor analysis carried out in the previous section.CLASSIFICATION STATISTICS - SOURCE OF INFORMATION ON THE WALK-INType of sourcing or the source of information through which the candidate receivedinformation on the walk-in drive was analysed:1. Job Portals (like naukri.com and monster.com)2. Placement Vendors3. Directly applied online through careers.E & CS.com4. Referrals (Friends or Family)5. Newspaper and print media ads6.Direct call from E & CS HR

62www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780CLASSIFICATION PROCESSING SUMMARYProcessed 43Excluded Missing or out-of-range group codes 0At least one missing discriminating variable 0Used in Output 43PRIOR PROBABILITIES FOR GROUPS16. Source of Infoon Job OpeningPriorCases Used in AnalysisUnweightedWeighted1 .163 7 7.0002 .186 8 8.0003 .093 4 4.0004 .256 11 11.0006 .302 13 13.000Total 1.000 43 43.000CLASSIFICATION RESULTS a16. Sourceof Info onJobOpeningPredicted Group Membership1 2 3 4 6TotalOriginal Count 1 5 1 0 0 1 72 0 4 0 2 2 83 0 0 3 0 1 44 0 2 0 5 4 116 1 0 0 1 11 13

www.zenithresearch.org.in63ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780% 1 71.4 14.3 .0 .0 14.3 100.02 .0 50.0 .0 25.0 25.0 100.03 .0 .0 75.0 .0 25.0 100.04 .0 18.2 .0 45.5 36.4 100.06 7.7 .0 .0 7.7 84.6 100.0a. 65.1% of original grouped cases correctly classified.From the above classification results table, 65.1% of the original groups were correctlyclassified.PERCEPTUAL MAPPINGThe perceptual mapping for the various attributes are done on the basis of the responsesreceived. The mean of the responses were plotted in a scatter graph (one attribute againstanother) and the perceived relations between the attributes were thus interpreted.In this case, five pairs of attributes are formed on the basis of their relevance to each otherand the positioning of the brand as per the attributes is evaluated. The pairs of attributes are:Communication – Venue & interview schedule vs. Information provided regardingthe pre-requisites of interviewSeating & Other Infra at Venue Vs Over all Experience at VenueInteraction with HR Personnel after Selection Vs Over all Experience at VenueTransparent Negotiations Vs. Over all Experience at VenueQuery Resolution by Personnel after selection until offer Vs Over all Experience atVenueCOMMUNICATION – VENUE & INTERVIEW SCHEDULE VS. INFORMATIONPROVIDED REGARDING THE PRE-REQUISITES OF INTERVIEWAs per the respondent‟s perception, E & CS provides an apt description of Venue &Interview Schedule. However E & CS comes almost third with regards to informationshared on pre-requisites. This can be explained by missing pay-slips during registrationprocess / many non-eligible candidates who report to the venue unaware of the eligibilitycriteria. The onus of this not only lies on E & CS as the candidates can still choose to ignorecertain specifications.SEATING & OTHER INFRA AT VENUE VS OVER ALL EXPERIENCE ATVENUE

64www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Company 1 and Company 2 are far ahead of E & CS with regards to Seating & Other Infracontributing to Overall Experience as perceived by the candidates. E & CS, Company 2andCompany 3 are very similar in this attribute based perception by the candidates.TRANSPARENT NEGOTIATIONS VS. OVER ALL EXPERIENCE AT VENUEIt is evident that Company 4 and Company 5 have almost similar transparency innegotiations. Of all the six brands, E & CS has the highest score in transparent HRnegotiations though slightly less in its contribution to overall experience in the minds ofcandidates as compared to Company 1 & Company 2. This is one key area where E & CSstands ahead of the rest.INTERACTION WITH HR PERSONNEL AFTER SELECTION VS OVER ALLEXPERIENCE AT VENUEIt is evident that Company 1, Company 2, Company 3 as one category and E & CS andCompany 4 as another are similar in their overall experience as perceived by the candidate,this contributed by the interaction with HR personnel after the selection process.QUERY RESOLUTION BY PERSONNEL AFTER SELECTION UNTIL OFFER VSOVER ALL EXPERIENCE AT VENUEIt is evident that Company 2 leads in this attribute, whereas Company 1, Company 3Company 4 and Company 5 very closely associated when it comes to Query resolution inthe minds of a selected candidate. Of all the six organizations the Company 2 seems to leadin as the candidate friendly organization.CONCLUSIONS & RECOMMENDATIONSThe research was successful in identifying the various factors which helped the candidatesbuild a certain perception of the organizations interview process. Also has given insightsinto various variables and factors that help in comparison with selected Tier I companies.THE MAJOR FACTORS AS IDENTIFIED BY FACTOR ANALYSIS1. The Interaction that the candidate has with the HR or the Interview Panel creates a certainmental map of the company in the minds of the candidates. A healthy interaction processincreases the zest in the candidate to be an integral part of the organisation.2. The factor of Time matters to the candidate and this directly helps in quantifying theeffectiveness of the whole interview process in the minds of the candidate. Effective usageof time during the interview process leaves a good taste in the minds of the candidates.3. The third factor is Experience of comfort – this includes level of difficulty perceived, HRnegotiations and Query Resolution. The infrastructure provided also has an impact on theexperience candidates have and this has been explained in tandem with the above variablesby the third component of Factor Analysis.4. Communication and information shared by the organisation before and during the processare also considered a major factor by the respondents.

65www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780THE MAJOR FINDINGS FROM PERCEPTUAL MAPPINGE & CS scores high on the factor of communication with regards to venue details andinformation on pre-requisites. Company 1 and Company 2 are ahead of E & CS when itcomes to information shared before the interview process.This could be explained as many non-eligible candidates who report to the venue unawareof the eligibility criteria and certain candidates reporting with wrong skill set at the walk-in.The onus of this not only lies on E & CS as there have been cases where candidates havechosen to ignore certain specifications. The company should aim at improving theinformation sharing quotient before interview of E & CS.RECOMMENDATIONSTo minimize the number of candidates reporting with incorrect skill set / technologies, thesourcing team could help understand and put standard operating procedures in place forclarity of the hiring team. Also, the team can clarify the same with the candidates whilescheduling their interview.For eg: While recruiting for testing openings project requirement is either for Performanceor Automation Testing. Within Automation testing there are applications furtherclassifications like QTP (for which opening is available) and RFT and manual scripting.Similarly under Performance Testing there is Load runner, win-runner etc. Hence this thesourcing team can specifically clarify with the candidates in case of scheduled interviews.Also, one common area of miscommunication seems to be confusion between performancetesting and performance engineering. The latter is into hardware testing of ICs etc. Whilescheduling the candidates need to be asked specifically for their area of work.The variable „seating & other infrastructure‟ is cause of bad experience as attributed bycandidates. It is evident that candidates perceive Company 1 and Company 2 as far ahead ofE & CS with regards to Seating & Other Infra contributing to Overall Experience asperceived by the candidates.RECOMMENDATIONSThe seating arrangement is one variable that most of the respondents felt as unsatisfactory.An alternate arrangement of seating can be made in one part of the cafeteria for theweekend drives. This would certainly make perception of seating arrangements better.E & CS has the highest score in transparent HR negotiations and stands ahead of the rest ofthe Tier I organizations used in comparison. E & CS needs to look into the interaction factorselected candidates have with the HR personnel and also its Query resolution process onethe candidate is selected. These two factors majorly influence any candidate‟s decisionwhile joining an organization.RECOMMENDATIONSQuery resolution by HR personnel after the selection of the candidate greatly influences hisdecision to join the organisation. Hence the HR for the respective skill set or any other HR

www.zenithresearch.org.in66ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780personnel can be given the responsibility of handling queries such as joining formalities,change of candidate‟s information etc.The person can be the SPOC to answer such queries and can redirect the candidates torecruiters of specific skill set. The details of communication (email ID or extn number) ofthis SPOC can be given to the candidates after the HR interview. This makes the HR easilyaccessible to the candidate.Interaction with HR after selection as been pointed out to be minimal by responses capturedby the open ended questions administered in the questionnaire. This can be improved intandem with Query Resolution process.Interaction with HR after selection as been pointed out to be minimal by responses capturedby the open ended questions administered in the questionnaire. This can be improved intandem with Query Resolution process.Overall, since in any recruitment process offer acceptance by the candidate and finaldecision of candidates to join an organization is as important as selection the right numberof candidates, the experience a candidate has based on the four factors realised by this studyand the perception of E & CS against its major competitors matters. Also, the majorcompetitors of E & CS as realised from perception maps are Company 1 and Company 2followed by Company 3 being the minor competitor.LIMITATIONS1. Data collected for doing this study was taken from only experienced professionals atfew locations of E & CS. The experience of the candidates range from 2 yrs andabove to 10yrs. This makes it more specific.2. Perception of candidates from few Tier I companies and candidates who had earlierbeen employees of Tier I were considered. This makes the sampling very specific.3. The respondents were chosen such that majority of the candidates had attended theinterview process of at least more than two organizations to assist in the comparisonof processes.4. The research work is restricted to few locations only and hence the parameters mayvary when all locations are considered.REFERENCESAswathappa K, Human Resource Management, Fifth EditionDessler G, Varkkey B, Human Resource Management, Twelfth EditionGupta CB, Human Resource Management, Ninth editionIvancewich J M - Human Resource Management, Tenth EditionKanka SS, Human Resource Management (Text & Cases), First Edition

www.zenithresearch.org.in67ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Kothari, C.R.,“Research Methodology” Methods & Techniques, Second Edition,New Age International publishers New Delhi, 2004.Malhotra NK; Satyabhusan D - Marketing Research an applied orientation, FifthEditionPritchard C W - 101 Strategies for Recruiting Success Where, When, and How toFind the Right People Every TimeRao VSP, Human Resource Management, Text & Cases, Second editionSubba Rao P, Personnel & Human Resource Management (Text & Cases), FirsteditionWayne F C, Nambuddin R, Managing Human Resources: Productivity, Quality ofwork Life, Profits, Eight edition

68www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780UNDERSTANDING THE INDIAN RURAL MARKET POTENTIALABSTRACTDR. DEVARAJ BADUGU*; MR. SHANTI SWAROOP CHAUHAN***Associate Professor,Joseph School of Business Studies, SHIATS,Allahabad, Uttar Pradesh.**Assistant Professor,Joseph School of Business Studies, SHIATS,Allahabad, Uttar Pradesh.The rural markets represent the heartland of the true culture, racial, language anddemographic identity of India. This is so because the majority of India lives in the ruralmasses.The chief challenge for the FMCG marketer is to cut across the barriers of language to reachout to the 'all India' market. Just the southern belt itself requires powerful languages withtremendous following like Tamil, Telugu, Malayalam, Kannada etc to be reckoned with.While these bridges can be taken care of, the product and brand approaches have to keep inmind the poverty, and consequent inability of a large market to exercise their choice. Thechallenge and subsequent innovations, then is often to break the bulk, through packagingand pricing innovations. The shampoos, cooking oils, daily life grandma medicine,sweetmeats and even pickles have been sachet-sized and are now daily used items for therural Indian. This has regenerated and channeled much of the rural market to shift attentionto modern products and services. However the difficulty to penetrate a broad based ruralmarket is understandable. This is though certain FMCG food industries, particularly likeHaldirams, Shakthi Masala, etc have made deep inroads with ethnic flavored products.These success stories have come into being, simply because of the reinstatement ofconventional marketing logic, i.e. understanding the needs of the market, before offering theproducts. Positioning depends on the specific product to be just positioned along with thecompetitors in the market. The rural mind is simpler and straightforward. Good products doget deep into the minds of consumers. Lifebuoy soaps may look like a brick but itsgermicidal value and macho image makes it still a success in rural India. Similarly the'Bullet' bike still appeals to the male farmer in rural India, though its recent positioning asan up market tough urban bike has appealed to the connoisseur biker.This paper is essentially exploratory in nature and has three key objectives. The firstobjective is to find out the rural consumers‘ preference for the brands. The second objectiveis to identify the level of penetration of Brands in nondurable products and the premiumbrands, and the third objective is to study the annual size of the rural market.During the last decade companies were forced to re look at the rural markets owing tonumbers of reasons. The important ones were the saturation of urban markets and immensemarket competition leading to flat or declining sales. The easiest way for growth was byreaching competition leading to flat or declining sales. Today in highly competitive &volatile market every marketer is worried, what is brand equity, brand identity, brandloyalty, and brand awareness of its product in any particular geography? Aforesaid termsare the reason that brings branding as most important content of any production line's

69www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780survival in the world.KEYWORDS: Consumer‘s perception, FMCG, Rural Marketing, Volatile Market.INTRODUCTIONThe empowerment spree of rural India is on its high from the last couple of years due towhich the economy pertaining to this section is showing impressive growth. The propellersfor this progress include government initiatives and schemes, infrastructure development,industry projects across the country and the emphasis on local-employability.Rural Indians are developing desire for packaged foods, personal care products, consumerdurables and IT products, two- and four-wheelers, and fashion accessories. Over the lastfive years, some consumer product companies have recognized the potential of ruralmarkets and invested time and resources to tap into this opportunity - understanding andsegmenting the consumer, based on their spends and lifestyles.Some companies have even re-engineered products, pricing and packaging to customisefeatures and value relevant for these markets. For instance, Godrej has introduced chotukoolrefrigerator; Vortex has launched low cost ATMs and Nokia has developed Life tools - amobile application that provides access to agricultural, educational and entertainmentcontent. These innovative features and products have facilitated a better lifestyle for thepeople residing in hinterlands. Some players have developed new communication anddistribution channels within the rural agents (HUL's Project Shakti; Tata Tea's 'GaonChalo') and some have created completely new products.―Rural India is where the opportunity is that is where the money will come from to drivecurrent business and breed new entrepreneurs‖. The research facts support this claim- eightof the world‘s population resides in India‘s rural markets.Mere one percent increase in India‘s rural income translates to a large buying power of Rs10,000 crore. Nearly two-thirds of all middle-income households in the country are inrural India. And close to half of India's buying potential lies in its villages. This isindeed a huge untapped market. What had hitherto prevented its conquest was theinnate Indian problem due to lack of infrastructure to access this market. Rural Indiabeing an untapped market initially the successful strategy rested on theimplementation of the 3 A's: Availability, Affordability and Acceptability.But during the last decade companies were forced to re-look at the rural marketsowing to number of reasons. The important ones were the saturation of urban marketsand immense market competition leading to flat or declining sales. The easiest wayfor growth was by reaching out to 150 million strong rural markets and tapping thelatent demand there. Micr6finance and sachet marketing provided the means todo so. Sachet marketing in particular, as rural populace could now buy products insmaller and affordable packs. Marketers suddenly found that they had made greatstrides, as they unleashed a plethora of products and services with innovativefinancing schemes to back them up. Suddenly the rural markets no longer appeared

www.zenithresearch.org.in70ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780unviable. Where until some years ago, the rural market was being given a stepmotherlytreatment by many companies and advertising to rural consumers wasusually a hit and miss affair, the sudden realisation of the potential of rural Indiachanged all that. It was realised that the communications that is rooted in urbansensitivities didn't touch the hearts and minds of the rural consumer. Organisations startedlooking at the right product and communications mix that would have a pan-Indianrural appeal. Coca Cola, with their ad campaign succeeded in providing just that.Pioneers like CavinKare came up with innovative ideas to target the rural markets.CavinKare came up with its brand Chic shampoo in s mall sachets. Bigger players likeHLL took the cue and followed up with their own versions. HLL also launched ProjectShakti, with a greater emphasis on volumes from the rural markets.Nestle came with maggi ka chota pack, even Cadbury came with one rupee chocolateand very popular campaign like pappu pass ho gaga & cow campaign. On the other handITC has totally brought new perspective to rural India's branding history by launchinge-chaupal first at sagar district of Madhya Pradesh. This was a few years ago, forwardingto the present things are changing fast now. Thanks to the increasing literacy leveland media explosion, people in the rural areas are becoming conscious about theirlifestyles and about their rights to live a better life. Brand consciousness is on the rise.This, clubbed with increasing disposable income of rural households, has madethe rural consumer more demanding and choosier in his purchase behavior than everbefore. In the rural families, studies indicate a slow but determined shift in theuse of categories. There is a remarkable improvement in the form of products used.For instance, households are upgrading from indigenous teeth-cleaning ingredientsto tooth powder and tooth-pastes, from traditional mosquito repellent to coils andmats. There is also a visible shift from local and unbranded products to nationalbrands; from low-priced brands to premium brands. And now, the dream is blazingbrighter than ever as the Indian rural bazaar is displaying a market trend towardsconsumerism, outpacing the urban market in its ever-increasing demand for durableproducts like wrist-watches, fans, televisions, video cassette recorders as also nondurableslike nail polish, lipstick, ice-cream, shampoo and mosquito repellents. All thishas created the demand on the organizations that to continue to prosper and developin these untapped markets need to invest their energies in their only future proofpatent: Their Brand. As per Alvin Toffler's revolutionary book third wave the needgap of rural market can be put as following:The first wave was ProductionThe second wave was availability or distributionThe third wave will be Branding.ITC, Godrej Agrovet, DCM Shriram and other companies expanding in rural areas mayeclipse the growth of their urban counterparts, including Reliance Fresh and the FutureGroup-owned Food Bazaar chain, helped by higher farm income that is spurring a boom insales of fast moving consumer goods (FMCG), consumer durables and apparel.The FMCG sector in rural areas is expected to grow by as much as 40 per cent comparedwith the growth of 25 per cent in urban areas

71www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780―The growth in rural income has been better than urban income since the minimum supportprice for crops like wheat and paddy has been substantially hiked. Even prices of pulses,rice, oilseeds and milk have increased dramatically over the last one year. The disposableincome with the farmer is still higher now.DCM Shriram Consolidated-promoted Hariyali Kisaan Bazaar runs 180 stores and ispresent in Uttar Pradesh, Punjab, Haryana, Rajasthan and Maharashtra. These stores saw a30 to 40 per cent growth in FMCG sales and a three-figure growth in grocery sales duringthe April-June quarter.―The FMCG growth at 25 per cent in the April-June quarter (over the corresponding periodlast year) is higher than earlier years. Better prices for farm produce, the increasedgovernment spending and remittances from workers in urban areas have contributed tohigher income. ITC has 23 stores in Uttar Pradesh, Madhya Pradesh and Maharashtra.In fact the sales of agricultural inputs have done even better. With higher prices for theproduce providing the incentive, on the one hand, and shortage of labour spurring the use ofinputs, on the other hand, there is an increase in sales of the farm input. Rise in food pricesis not the only reason. Large retail players like Reliance, Spencer‘s and Subhiksha procurefarm commodities in bulk directly from the fields and this has cut out the middle man‘scommission, which farmers used to pay. Moreover, farm earnings do not attract income tax.The future is set to see a further improvement in the disposable income from agriculture dueto the Rs 71,000-crore farm-loan waiver and increased government spending on raising thefarm output through schemes. ―When disposable income goes up, a part of it is spent onapparel, FMCG and education. It seems that we are going through this phase. At the sametime, the farm-loan waiver and debt-relief scheme, which became public about four monthsago, has also been factored into by farmers.THE 4A APPROACHThe rural market may be alluring but it is not without its problems: Low per capitadisposable incomes that is half the urban disposable income; large number of daily wageearners, acute dependence on the vagaries of the monsoon; seasonal consumption linked toharvests and festivals and special occasions; poor roads; power problems; andinaccessibility to conventional advertising media.However, the rural consumer is not unlike his urban counterpart in many ways. The moredaring MNCs are meeting the consequent challenges of AVAILABILITY,AFFORDABILITY, ACCEPTABILITY, and AWARENESS. (The so-called 4 A‘s).AVAILABILITYThe first challenge is to ensure availability of the product or service. India's 627,000villages are spread over 3.2 million sq km; 700 million Indians may live in rural areas,finding them is not easy. Any serious marketer must strive to reach at least 13,113 villageswith a population of more than 5,000. Over the years, India's largest MNC, HindustanLever, a subsidiary of Unilever, has built a strong distribution system, which helps itsbrands reach the interiors of the rural market. To service remote village, stockiest use autorickshaws,bullock-carts and even boats in the backwaters of Kerela. Coca-Cola, which

72www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780considers rural India as a future growth driver, has evolved a hub and spoke distributionmodel to reach the villages. LG Electronics defines all cities and towns other than the sevenmetros cities as rural and semi-urban market.Study on buying behavior of rural consumer indicates that the rural retailers influences 35%of purchase occasions. Therefore sheer product availability can affect decision of brandchoice, volumes and market share. Some of the FMCG giants like HLL took out projectstreamline to significantly enhance the control on the rural supply chain through a networkof rural sub-stockiest, who are based in the villages only. Apart from this to acquire furtheredge in distribution HLL started Project ―SHAKTHI” in partnership with Self Help groupsof rural women.AFFORDABILITYThe second challenge is to ensure affordability of the product or service. With lowdisposable incomes, products need to be affordable to the rural consumer, most of whom areon daily wages. Some companies have addressed the affordability problem by introducingsmall unit packs. Godrej recently introduced three brands of Cinthol, Fair Glow and Godrejin 50-gm packs, priced at Rs 4-5 meant specifically for Madhya Pradesh, Bihar and UttarPradesh - the so-called `BIMARU' States.Hindustan Lever, among the first MNCs to realise the potential of India's rural market, haslaunched a variant of its largest selling soap brand, Lifebuoy at Rs 2 for 50 gm. The move ismainly targeted at the rural market. Coca-Cola has addressed the affordability issue byintroducing the returnable 200-ml glass bottle priced at Rs 5. The initiative has paid off:Eighty per cent of new drinkers now come from the rural markets. Coca-Cola has alsointroduced Sunfill, a powdered soft-drink concentrate. The instant and ready-to-mix Sunfillis available in a single-serve sachet of 25 gm priced at Rs 2 and multiserve sachet of 200 gmpriced at Rs 15.ACCEPTABILITYThe third challenge is to gain acceptability for the product or service. Therefore, there is aneed to offer products that suit the rural market. One company, which has reaped richdividends by doing so, is LG Electronics. In 1998, it developed a customized TV for therural market and christened it Sampoorna. Because of the lack of electricity andrefrigerators in the rural areas, Coca-Cola provides low-cost ice-boxes - a tin box for newoutlets and thermocol box for seasonal outlets.The insurance companies that have tailor-made products for the rural market haveperformed well. HDFC Standard LIFE topped private insurers by selling policies worth Rs3.5 crore in total premia. The company tied up with non-governmental organizations andoffered reasonably priced policies in the nature of group insurance covers.AWARENESSMass media is able to reach only to 57% of the rural population. Creating awareness then,means utilizing targeted, unconventional media including ambient media .For generatingawareness, events like fairs and festivals, Haats, etc., are used as occasions for brandcommunication. Cinema vans, shop-fronts, walls and wells are other media vehicles that

www.zenithresearch.org.in73ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780have been utilized to increase brand and pack visibility. innovative media used by personalwash like Lux and Lifebuoy and fabric wash items like Rin and Wheel. Idea was toadvertise not only at the point of purchase but also at the time of consumption.With large parts of rural India inaccessible to conventional advertising media - only 41 percent rural households have access to TV - building awareness is another challenge.However, the rural consumer expressions differ from his urban counterpart. Outing for theformer is confined to local fairs and festivals and TV viewing is confined to the state-ownedchannels. Consumption of branded products is treated as a special treat or indulgence.Hindustan Lever relies heavily on its own company-organised media. These arepromotional events organized by stockists. Godrej Consumer Products, which is trying topush its soap brands into the interior areas, uses radio to reach the local people in theirlanguage.Coca-Cola uses a combination of TV, cinema and radio to reach 53.6 per cent of ruralhouseholds. Since price is a key issue in the rural areas, Coca-Cola advertising stressed its`magical' price point of Rs 5 per bottle in all media. LG Electronics uses vans and roadshows to reach rural customers. The company uses local language advertising.The key dilemma for MNCs eager to tap the large and fast-growing rural market is whetherthey can do so without hurting the company's profit margins. In case of nestle, company'sproduct portfolio is essentially designed for urban consumers which cautions companiesfrom plunging headlong into the rural market as capturing rural consumers can beexpensive.RURAL CONSUMERS’ PREFERENCE FOR THE BRANDSIn rural India the branding rules are distinctly different from urban markets. Not only theculture landscape differs, the factor that influences purchasing decisions differs too. Priceand Value for money is high on their list. Rural branding calls for a greater component oflocal media and less of the mass media. Since these markets have specialized forum of theirown like temple festival, melas, cinema halls, these can be the right path to promote brands.Somehow the direct marketing and events like road shows, film shows and street theaterscan be right medium of brand promotion.It has been observed that:Rural purchasing power has grown faster than urban in the last six quartersFaster growth in rural is not limited to penetration; today the rural consumer‘sfrequency of consumption is growing faster as well, demonstrating theirentrenchment in these categoriesInstant noodle sales are growing nearly twice as fast in rural India compared tourban in both penetration and frequencySeemingly ‗urbane‘ brands in categories like deodorant and fabric softener aregrowing much faster in rural India than urban

www.zenithresearch.org.in74ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Several FMCG firms, including ITC and DCM, have been registering faster and highergrowth in sales of their goods in the rural markets as compared to the urban markets. Someof the FMCG companies such as Godrej Consumer Products, Dabur, Marico and HindustanUnilever (HUL) have increased their hiring in rural India and small towns in order toestablish a local connect and increase visibility.Swiss FMCG giant, Nestle plans to make further inroads into the rural markets. At present,rural consumers spend about US$ 9 billion per annum on FMCG items and productcategories such as instant noodles, deodorant and fabric, with the pace of consumptiongrowing much faster than urban areas.There are certain factors which influence the rural consumer purchase like:The BrandThe size of the productThe price of the product andThe product features.There are also some regional brands have developed good image due to the followingreasons:Cable channel and their networkUnderstandingLower costOne to one relationshipEntrepreneurship.TABLE 1: PREFERENCE FOR BRANDSPercent BrandedNECESSITYPOPULAR PREMIUM SUPER-PREMIUM< 20% Non–Refinedoil21-40% Oil Coconut Refinedoil41-60% Iodized Salt,Tea, WashingHome Insecticides

75www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Cakes.61-80% Biscuits Vanaspati, Bulbsand hair oils81-100% Toilet SoapslikeLifebuoy, luxetc andwashingpowders.Razors, Blades,tooth powders,hair wash soaps,and analgesicsBatteries,Balms,skin creamstoothpates andShampoos.Tooth brushes,Antiseptic creams,Chayavanprash,Digestive,MosquitoRepellents, sahvingPreparations andCFLsSource: Business World April 1997It is observed that on an average 6-7 bathing soaps brands were available in the rural shopsvisited most of is national brands and well advertised through the electronic and printmedia. But in the case of Tea it is observed that on an average 2-3 brand is available in therural shops visited, most of the visiting customers preferred local mix/ retailers brand overand above national/ regional brands. It is also found that price plays an important role inbuying the local tea mixtures. Similarly in biscuits which are necessity, many brands aremaking their presence in the rural market starting from Parle G, Sun feast and alsoBritannia‘s low cost range of cookies. With the introduction Gillette‘s Rs 5 safety razorbecoming popular in the rural market.THE LEVEL OF PENETRATION OF BRANDS IN NONDURABLE PRODUCTSAbout 12 per cent of world population lives in rural areas in India. This is a huge market byworld standards. According to an NCAER survey, rural consumers own only 64 percent ofavailable consumer durables, even though they constitute 81 per cent of total households inIndia. According to this survey, on an average rural households owned three consumerdurables as compared to seven consumer durables owned by an average household. It alsoshowed that purchase and use of certain durables and non-durables by consumers in ruralareas is more than that of the consumers in urban areas. The durable products are: Sewingmachines, radio/ transistors; wrist-watches, black and white television sets, cassetterecorders, bicycles, table fans and pressure cookers. However, in case of non-durables,following data shows that at least for six products, rural market has a larger share than theurban.

76www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 2Category Category Penetration Brand with highest penetrationToilet SoapWashing Cakes/BarsEdible OilTeaSafety Razor BladesCoconut OilShampoosSalt91%89%86%79%51%55%

77www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780consumption is dictated by need, and shaving blades, which has low penetration levels,entry barriers are relatively high. Only players with strong brands can pass on costincreases.TABLE 3BrandPenetration of category usersSurf6.2%Ariel4.5%Pantene1.8%Denim1.8%marketThe table below shows some FMCG‘s are which are less penetrated in the ruralTABLE 4FMCG Urban Rural TotalToothpaste749376486Soft Drinks370122198Mosquito Repellent541152267Coffee23279125Skin Cream Health315178220

78www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Beverage 188 47 88THE ANNUAL SIZE OF THE RURAL MARKETTraditionally, consumers can be divided into two broad categories: individuals andhouseholds. The household sector is a major consumer of food products, user ofmanufactured goods ranging from low-priced durables such as transistors, electric irons etcto high priced colour TV sets, motorcycles etc. This sector meets the needs of a wide rangeof consumer from rural to urban, from rich to poor, from wage earners to professionals. Arural market broadly comprises of consumer markets, institutional markets and Services,being a relatively new entrant in this market.Consumer markets constitutes of Fast Moving Consumer Goods (FMCG) like personal care(oral care, hair care, soaps, cosmetics and toiletries and household care (fabric wash andhousehold cleaners) and Consumer durables like home appliances, watches, bicycles, TVsets, radio, automobiles etc.Institutional markets constitutes agricultural and allied activities like food processing,poultry farming fisheries, cottage industries, schools, NGO's etc.It includes products likeagri inputs, animal feed, fuel, engine oil etc and agri implements like tractors ,pumps setsetc.Services market constitutes Banking, Insurance, Retail, Healthcare, IT, power,communication etc.The rural market in India is beginning to emerge as an important consumption area. Thetotal size of the rural market is estimated at Rs.1, 23, 000 crore which includes FMCGs,durables and agri-products.FMCGDurablesRs 65,000 CrRs 5,000 CrAgri inputs (including tractors)Rs 45,000 Cr2/4 Wheelers Rs 8,000 CrTotalRs 1,23,000 CrSource Francis Kanoui

79www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780India's rural market has been growing steadily over the years and is now bigger than theurban market for fast moving consumer goods with an annual size estimated at Rs 65000crore. Rural markets account for 56% of the total domestic FMCG demand. In fact,companies like HLL derive more than half of its Rs.12000 crore revenue from the ruralmarkets.This table represents the percentage of households that have purchased the following itemsin last few years as per IRS 2008 R2:TABLE 5Total Urban RuralToilet Soaps 93.1 97.7 91.1Washing Cakes/Bars 88.6 91.4 87.4Washing Powder/Liquid 86.1 90.7 84.1Hair Oil 71.8 81.7 67.7Shampoo 56.7 70.7 50.9Tooth Paste 48.6 74.9 37.6Talcum Powder 34.7 30.6 36.5Floor Cleaners 8.4 22.5 2.4Salt 99.7 99.6 99.8Edible Oil 95.3 98.5 94Tea 84.0 91.2 80.9Fresh Milk 70.3 89.5 62.2Vanaspati 41.6 44.1 40.6Atta 35.8 47.3 31.0Ghee / Desi Ghee 25.7 41.1 19.2Coffee 12.5 23.2 7.9Source: IRS 2008 R2From the above values, it can be noted that the purchase of toilet soap, washing power andfood products like salt, tea and edible oil is high in the rural areas and at par with the urbancounterpart.

80www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780According to the NCAER, an average rural Indian household have five major consumerappliances. The table given below represents the percentage of households owning variousconsumer durablesTABLE 6Universe Total Urban RuralTV 42.2 72.2 29.6Pressure Cooker 34.5 68.4 20.2AV System 28.2 38.1 24.0Two Wheelers 13.6 26.0 8.4Fridge 11.8 29.7 4.2Motor Cycles 7.4 12.4 5.3Kitchen Sink 6.6 17.5 2.0Scooters 4.3 10.4 1.7Washing Machine 3.5 10.8 0.5Automobile 1.5 4.0 0.5Source: IRS 2008Rural penetration rates in most cases are much lower than urban penetration rates. About 6products exhibit rural penetration levels that are less than a fourth of the correspondingurban numbers. However, it doesn't necessarily mean that rural Indians don't want theseproducts. Low penetration rates can be attributed to three factors-low income level,inadequate infrastructure and different lifestyles like lack of electricity. The urban ruraldisparity is highest in case of electrical goods due to the non-electrification of more that 50percent of rural households. The graph below displays consumer durable ownership patternsamongst SEC categories:

81www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578060How Different are Rural consumers from each other5040302010Col TVC&SConTwoWhlrsMobileFridgeCooler4whlr0R1 R2 R3 R4Source: AC Nielsen ORG MARG NRSThe above figures are a clear indication that the rural markets offer the great potential tohelp the India which has reached the plateau of their business curve in urban India to bankupon the volume-driven growth. As a result of the growing affluence, fuelled by goodmonsoons and the increase in agricultural output to 200 million tonnes from 176 milliontonnes in 2007, rural India has a large consuming class with 41 per cent of India's middleclassand 58 per cent of the total disposable income.The importance of the rural market for some FMCG and durable marketers is underlined bythe fact that the rural market accounts for close to 70 per cent of toilet-soap users and 43 percent of all two-wheeler purchased. The rural market accounts for half the total market forTV sets, fans, pressure cookers, bicycles, washing soap, blades, tea, salt and toothpowder,What is more, the rural market for FMCG products is growing much faster than the urbancounterpart.CONCLUSIONThus looking at the challenges and the opportunities which rural markets offer to themarketers it can be said that the future is very promising for those who can understand thedynamics of rural markets and exploit them to their best advantage. A radical change inattitudes of marketers towards the vibrant and burgeoning rural markets is called for, so theycan successfully impress on the 230 million rural consumers spread over approximately sixhundred thousand villages in rural India. Given the well-documented problems of traditionalcommunications, such as advertising and direct marketing, there is a clear need foracademics and practitioners alike to re-evaluate the means by which brand messages arebest conveyed. Greater attention has been paid recently to the role of experience in brandperformance, and how experience and interaction between internal and external brandrepresentatives can sustain consumer brand relationships, as they co-produce added value.

82www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Such relationships are built on trust and an emotional bond between the brand and theconsumer, facilitated through brand values. The importance of the rural market for someFMCG and durable marketers is underlined by the fact that the rural market accounts forclose to 70 per cent of toilet-soap users and 43 per cent of all two-wheeler purchased. Therural market accounts for half the total market for TV sets, fans, pressure cookers, bicycles,washing soap, blades, tea, salt and toothpowder, What is more, the rural market for FMCGproducts is growing much faster than the urban counterpart.REFERENCESAndersson, M. and Weslau, A. (2000) ‗Organising for event marketing in order to changebrand image and increase sales‘,International Management Master Thesis No. 2000:44,Graduate Business School, University of Gothenburg, Sweden.Agarwal, J. and Malhotra, N. K. (2005) ‗An integrated model of attitude and affect:Theoretical foundation and empirical investigation‘, Journal of Business Research,Vol. 58,No. 4, pp. 483–493.de Chernatony, L. (2001) ‗A model for strategically building brands‘, Journal of BrandManagement, Vol. 9, No. 1, pp. 32–44.Evans, M., O‘Malley, L. and Patterson, M. (2004) ‗Exploring Direct & CustomerRelationship Marketing‘, 2nd edn, Thomson, London, UK.Kroeber-Riel, W. (1984) ‗Zentrale Probleme auf gesttigten Ma¨rkten‘, Marketing —Zeitschrift fu¨r Forschung und Praxis, Vol. 6, No. 3, pp. 210–214.Pine II, B. J. and Gilmore, J. H. (1998) ‗Welcome to the experience economy‘, HarvardBusiness Review, Vol. 76, No. 4, pp. 97–105.Poulsson, S. H. G. and Kale, S. H. (2004) ‗The experience economy and commercialexperiences‘, The Marketing Review, Vol. 4, No. 2, pp. 267–277.Weinberg, P. (1993) ‗Cross cultural aspects of emotional benefit strategies‘, EuropeanAdvances in Consumer Research, Vol. 1, pp. 84–86.Weinberg, P. (1998) ‗Behavioural aspects of customer commitment‘, European Advances inConsumer Research, Vol. 3, pp. 268–272.Wohlfeil, M. and Whelan, S. (2004) ‗Investigating consumers‘ motivations to participate inmarketing-events‘, in ‗Proceedings of the Irish Academy of Management 2004‘, TrinityCollege Dublin 2–3 September, available on CD-ROM.Wohlfeil, M. and Whelan, S. (2005) ‗Event-marketing as innovative marketingcommunications: Reviewing the German experience‘, Journal of Customer Behaviour, Vol.4, No. 2, pp. 181–207.

83www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780NEED OF FINANCIAL INCLUSION FOR POVERTY ALLEVIATIONAND GDP GROWTHRAJESH SHARMA*; MANISH DIDWANIA**; PUNEET KUMAR****Department of Commerce & Computer, Faculty of Arts Science and Commerce,Mody Institute of Technology and Science, Lakshmangarh, Sikar, Rajasthan- 332311.**Department of Commerce & Computer, Faculty of Arts Science and Commerce,Mody Institute of Technology and Science, Lakshmangarh, Sikar, Rajasthan- 332311.***Department of Commerce & Computer, Faculty of Arts Science and Commerce,Mody Institute of Technology and Science, Lakshmangarh, Sikar, Rajasthan- 332311.ABSTRACTSince last three decades the major objective of policy makers is to remove poverty fromIndia. Many programmes and policies were started at the grass root level. But results werenot very encouraging. After liberalization India‟s GDP growth witnessed an encouragingchange. It was hoped that it will be a solution for the problem. But due to some basicreasons at grass root level, results were not very overwhelming. It has also been realized bythe policymakers that increase in GDP alone is not the solution of the deep rooted problemof poverty. Growth is necessary but not sufficient for the poverty eradication. Inclusivegrowth can be a solution for poverty removal. In the1990s government of India startedmany programmes which were specially made for enhancing the income level of the poormasses. Consequently, all the major initiatives of government – in agricultural and ruraldevelopment, in industry and urban development, in infrastructure and services, ineducation and health care – sought to promote „inclusive growth‟. It is apparent from thestudy that Inclusive growth is necessary for sustainable development and equitabledistribution of wealth and prosperity. The success of poverty alleviation programmes can beachieved in real sense, when common man is also a part of growth.INTRODUCTIONIndia is the largest democracy in the world, something to be very proud of, but, does thisdemocracy really offer the average Indian the choice that it ought to? Rapid economicgrowth over the past decade in India was the main driver of poverty reduction, but; poorface multiple deprivations due to the interaction of economic, political and social processes.Beyond the lack of income, the multidimensional concept of poverty refers to disadvantagesthat those afflicted are subjected to when trying to access productive resources such as land,credit and services (e.g. health and education), to vulnerability and powerlessness as well associal exclusion. A 10 percentage point‟s drop in poverty levels, other things being equal,can increase economic growth by one percent and reduce investment by up to eight percentof GDP. 1 This is so because the poor are in no position to engage in many of the profitableactivities that stimulate investment and growth, thus creating a vicious circle in which lowgrowth results in high poverty and high poverty, in turn, results in low growth.1 Perry et al. (2006)

84www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780DEFINITION OF THE POVERTYThe international poverty line has been recalibrated at $1.25 a day, using new data onpurchasing power parties; earlier it was merely $ 1 a day. As per the World Bank report thenew data change our view of poverty in the world, there are more people- extremely poorpeople and the incidence of poverty reaches farther into middle-income countries. By thenew measurements 1.4 billion people are living in extreme poverty- more than one quarterof the population of developing countries 2 . Human Development Index (HDI) is probablythe most widely recognized and used composite measure embodying other welfaredimensions (i.e., on health and education) apart from income. Starting in 1998, UNDP alsobegan releasing estimates of a Human Poverty Index, a measure closely related to the HDI. 3India was the first country in the world to define poverty as the total per-capita expenditureof the lowest expenditure class, which consumed 2400 kcal /day in rural and 2100 kcal/dayin urban areas and attempt to provide comprehensive package of essential goods andservices to people below the poverty line. category. A recent World Bank study estimatesthat about 47 percent of children below 3 years in India are undernourished. Persistingmalnutrition has a severally debilitating effect on human development and this has seriousimplications for economic growth in general.INCIDENCE OF POVERTYNearly one-fourth of India‟s population is below poverty line. In terms of incidence ofpoverty measured in India on the basis of consumption expenditure, there is a definiteimprovement over the years, both in rural and urban areas. There is about 7 to 8 percentagepoints decline in poverty ratio in 2004-05 over 1993-94 and improvement being morepredominant in the rural areas.There are several factors affect the extent and depth of poverty and hunger; some of themhave overwhelming impacts under the Indian setting. An effective water policy andinstitutional support is needed to ensure judicious and equitable allocation, distribution andexploitation of water and land resources. Table-1 shows that with the increase of farm sizepoverty in rural areas decreases. Similarly, Table- 2 shows the positive impact of rainwateron poverty alleviation. Because good farm size and good rain water ensures goodproduction. Farmers those who are leaving in rural areas but have no land are suffering fromhunger and poverty which is clear from the tables. Incidence of poverty and hunger is verysevere in this segment of the society.TABLE 1INCIDENCE OF HUNGER AND POVERTY BY FARM SIZE IN RURAL INDIALand ClassPercentage of PopulationHungryPoorLand Less 49 542 (World Bank 2009)3 HPI in effect measures deprivation of welfare as measured by the HDI.

85www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57804 ha 12 13Source: IARI-FAO/RAP study (2001) based on 50 th NSS Round (1993-94)TABLE 2IMPACT OF IRRIGATION ON ALLEVIATION OF HUNGER AND POVERTY ININDIAIrrigated area (%)Percentage of PopulationHungryPoorRainfed 33 3580 19 26Source: IARI-FAO/RAP study (2001) based on 50 th NSS Round (1993-94)Literacy has a very high impact on poverty alleviation as well as on hunger reduction (Table3). The illiterate people, whether urban or rural, are the most poor and malnourished. Inurban areas the impact of literacy on poverty is the highest. Education, even above primarylevel, is extremely effective in reducing both poverty and hunger. Therefore, the educationpolicy of the country must be geared to remove illiteracy as soon as possible.TABLE: 3IMPACT OF LITERACY ON ALLEVIATION OF HUNGER AND POVERTY ININDIALiteracy LevelPercent of PopulationMalnourishedBelow poverty levelRural Urban Rural UrbanZero 36 28 43 55Below PrimaryLevel31 25 29 42

86www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Above PrimaryLevelGraduate andTechnical26 18 20 3314 8 7 4Source: IARI-FAO/RAP study (2001) based on 50 th NSS Round (1993-94)TABLE 4RELATIVE PERFORMANCE OF FIFTEEN MAJOR STATES IN POVERTYREDUCTION OVER THREE DECADES(STATES HAVE BEEN SORTED ACCORDING TO THE POVERTY RATIO ASREPORTED BY THE PLANNINGCOMMISSION IN THE ORDER OF HIGHER TO LOWER VALUE)1973-74 ( 54.88%- All India)States with poverty ratio above nationalaverageOrissa, West Bangal, Bihar, MadhyaPardesh, Kerla, Uttar Pardesh, TamilnaduStates with poverty ratio below nationalaverageKarnataka, Maharashtra, Assam, AndhraPardesh, Gujrat, Punjab, Rajasthan, Haryana1983-84 ( 44.48%- All India)Orissa, Bihar, West Bangal, Tamilnadu,Madhya Pardesh, Uttar PardeshMaharashtra, Assam, Kerla, Karnataka,Rajasthan, Gujrat, Andhra Pardesh, Punjab,Haryana1993-94 ( 35.97%- All India)Bihar, Orissa, Madhya Pardesh, Assam,Uttar Pardesh, MaharashtraWest Bangal, Tamilnadu, Karnataka,Rajasthan, Kerla, Haryana, Gujrat, AndhraPardesh, Punjab2004-05 ( 27.5%- All India)Orissa, Bihar, Madhya Pardesh, UttarPardesh, MaharashtraKarnataka, West Bangal, Tamilnadu,Rajasthan, Assam, Gujrat, Andhra Pradesh,Kerla, Haryana, PunjabSource: Planning Commission (2002) and Planning Commission (2007).The states (Table 6) could be grouped into four categories on the basis of poverty ratio inthe initial year (1973-74), the rate of decline in poverty over three decades, 1973-74 to2004-05, and other characteristics, like, size of the state, income and population.GROWTH-POVERTY LINKAGEPoverty reduction is one of the major objectives of economic growth. Economists recognizethat even when there is robust economic growth poverty reduction may not always be fully

87www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780achieved. Economic growth is necessary but not sufficient when it comes to povertyreduction. We cannot preclude the role of economic growth in creating necessary resourcesfor social development, but, at the same time, complementary social and environmentalpolicies are required, too. If poor people do not have access to basic education, how canthey take advantage of employment and income opportunities created by economic growth?Poverty is thus a highly complex socio-economic problem that needs to be tackledconcurrently in various sectors in order to untangle the Gordian knot of poverty. It is thesynergy of combined efforts that produces the most sustainable results.The relationship between income growth and poverty reduction has been shown to beparticularly stronger in developing Asia. In other words, the data suggest that growth hasserved the poor better in Asia than elsewhere in the developing world. Ferreira andRavallion (2008), in reviewing the evidence on levels and recent trends in global povertyand income inequality, similarly pointed to the dominant role of Asia in accounting for thebulk of the world‟s poverty reduction since 1981. Table 5 looks at the 2000–2006 period,and derives PEG based on income poverty using the US$1.25-a-day yardstick (World Bank2008). The strongest performers in this more recent period are Indonesia, Pakistan, andPRC, all with elastic poverty reduction responses to economic growth. Malaysia, Thailand,and Viet Nam are also strong performers, while Cambodia, India, Mongolia, and thePhilippines had the weakest performance.TABLE: 5POVERTY ELASTICITY OF GROWTH BASED ON INCOME POVERTYHEADCOUNT & AVERAGE ANNUAL GDP GROWTH (%) 2000–2006CountryPopulationbelow U$S1.25 aday (%), beforePopulationbelow U$S1.25a day (%),afterPeriodGDP Growthin PeriodPEGIndonesia 29.3 21.4 2002-2005 16.32 -1.652Pakistan 35.9 22.6 2002-2005 22.65 -1.636Malaysia 1.9 1.5 1997-2004 26.12 -0.806Thailand 1.9 1.7 2002-2004 13.94 -0.755Vietnam 24.2 21.5 2004-2006 17.37 -0.643Cambodia 48.6 40.2 1994-2004 109.48 -0.158India 49.4 41.6 1994-2005 100.67 -0.157Philippines 22.0 22.6 2003-2006 17.68 0.154Mongolia 15.5 22.4 2000-2005 24.00 1.855Sources: Poverty Data – UNDP Human Development ReportsGDP Growth – ADB Key Indicators of Developing Asian and Pacific Countries

88www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780INDIAN EXPERIENCEFrom the inception of the development planning in India the policies of the governmenthave continued to be guided by the firm conviction that rapid economic growth is the primemover in uplifting the poor by offering them more productive employment and enhancingtheir income. It was not until the late seventies that the growth rate of the Indian economyactually picked up. The economy grew at the rate of more than 4% per annum in the lateseventies, at about 5% during the early eighties and accelerated further since the midnineties.Currently, the growth rate is hovering around 8%.Transformation of the country is quite apparent from the Table 6 which shows thenoticeable changes that have occurred in the sectoral composition of output. The share ofservices in the national income has steadily increased with corresponding fall in thecontributions of agriculture and industry over the years.TABLE: 6STRUCTURAL CHANGE IN GDP (GROWTH RATE)1900-1950 1951-1980 1980s 1990s 2000-2009Agriculture &Allied Activities- 2.1 4.4 3.2 2.8Industry - 5.4 6.4 5.7 6.5Services - 4.5 6.3 7.1 9.0GDP 0.7 3.5 5.6 5.7 7.2Per CapitaIncome0.2 1.1 3.2 3.6 5.4Source: CSO (2008)The positive performance seems to be an outcome of reforms encompassing a range ofmeasures that led to transforming spreading over all the sectors of economy. The officialestimates for all-India do suggest an inverse relationship between growth and poverty. Butdoes it hold across the states? Table 8 which was consisted on the basis of simple and rankcorrelation analysis clearly shows the negative relationship between levels of poverty andper capita SDP (State Domestic Product) across the 14 major states in India. Correlation isstatistically significant also.

89www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE: 8CORRELATION BETWEEN GROWTH IN PER CAPITA SDP IN PRIMARYSECTOR AND CHANGE IN RURAL POVERTY LEVEL ACROSS MAJORINDIAN STATES(NO. OF OBSERVATIONS = 13)YearSimple CorrelationCoefficientRank CorrelationCoefficient1987-88 over 1983 -0.738# -0.654#1993-94 over1987-88 -0.273 -0.375# Statistically significant at 95% confidence level.This fact is true for the current data also. So, the study shows that there is no significantrelationship between the widely believed poverty removal with the improved growth rate, orwith the economic reforms. Considering these, the popularly held negative relation betweengrowth and poverty reduction in India, during the last two decades or so, seems suspect.INCLUSIVE GROWTH: A STRATEGY FOR POVERTY ALLEVIATIONWe have realized that growth is necessary for poverty alleviation but not sufficient. Growthhas to be inclusive. Growth with equity is the only road to success. It has been globallyrecognized that high national income growth alone does not address the challenge ofemployment promotion, poverty reduction and balanced regional development. Nor doesgrowth in itself improve human development. Consequently, all the efforts of government –in agricultural and rural development, in industry and urban development, in infrastructureand services, in education and health care – sought to promote „inclusive growth. In Indiathe benefits of economic growth have not equitably reached different parts of our society.Despite the robust economic growth, a large number of groups remain excluded from theopportunities and services provided by the financial sector. Such excluded groups includewomen, workers of unorganized sector, small and marginal farmers, the self-employed andsenior citizens. Sustainable growth and development are not possible unless all thesegments‟ of the economy are included. This can be achieved through concerted actionbetween the public and private sector.Government of India has recognized the importance of inclusive growth. Thus, the EleventhPlan Document tries to restructure the policies in order to make the growth faster, broadbasedand inclusive by reducing the fragmentation of the society. Now, our policies aim atincreasing the income and employment opportunities on the one hand and on the other; ittries to finance programmes which are capable of making the growth more inclusive.Inclusive growth is driven by demand side and supply side factors. Banks are playing therole of supply side factors. Demand side factors, such as lower income and /or assetholdings also have a significant effect on financial inclusion. Indian Government and RBIhave been focusing to increase the number of bank accounts so that saving habits in thissegment of society could be increased.National Bank for Agriculture and Rural Development (NABARD) in 1992, launched theSHG-bank linkage programme with policy support from the Reserve Bank, to facilitate

90www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780collective decision making by the poor and provide “door step” banking. In the third period(2005 onwards) financial inclusion has been accepted as a policy objective. The CommonMinimum Programme of the (UPA) Government in India has focused on inclusive growth,on making the benefits of growth and income improvements available to all citizens.Microfinance has also been accepted as a tool of economic growth and poverty alleviationwhich is a part of policy. During the last few years, an increasing number of microfinanceinvestment funds have been set up with the goal of mobilizing funding for MFIs fromfoundations, individual and institutional investors and development agencies.With increasing acceptance of the SHG based developmental approach there is pressure seton village and block level administrators to achieve targets of forming a certain number ofSHGs. Thus Panchayats are also promoting SHGs in many areas.Most importantly, in February 2006, Government of India implemented the NREGA(National Rural Employment Guarantee Act). This Act guarantees 100 days of unskilledjobs per rural household. The NREGA is being implemented in 200 most backward districtsof 27 states in the country -- socio-economically, the most challenging areas in India. Actaims at eradication of extreme poverty and at making villages self-sustaining throughproductive assets creation. This is meant to regenerate the rural natural resource base, whichin turn will result in sustainable livelihoods for residents. The Act puts Panchayati RajInstitutions at the helm of affairs -- beginning with identifying the eligible households toplanning the works to be undertaken. The government has referred to it as an “Act of thepeople, by the people, and for the people”. In the context of rural poverty, the NREGAshould be seen more as a livelihood-generating programme than a wage-earning scheme. Itoffers a unique opportunity to turn around rural development and poverty alleviation. Forthe first time, rural communities have been given not just a development programme, butalso a regime of rights. Now question is that how effective are our delivery mechanisms andwhat are the weaknesses?CONCLUSIONIt is clear from above discussion that growth in GDP alone is not sufficient for povertyalleviation which is the main goal of policy makers since last three decades. High andsustainable growth are absolute requirements, the fruits of growth must be shared moreequally. The benefits of rapid economic growth have to percolate down to the lowest strataof society. A constructive public-private partnership for socially responsible growth isimperative and must occupy a larger space in the future business strategies of India‟scorporate sector. The Government has recognized the necessity of building capabilities atthe local levels for planning, implementation and monitoring of development programmes.The time has now come to act boldly and decisively. For effective delivery system we needtransparency in the operation of schemes. There also ought to be greater accountability forpoliticians and civil servants. The Central Government including the Planning Commissionshould help poorer states in getting investments for infrastructure and social sector. There isa need to have more devolution of finance, functions and powers to Panchyats to improveaccountability and development. The combine and inclusive efforts of all can solve theproblem of poverty which is the root cause of all the problems. So the lesson is not to losesight of the role of the financial inclusion in the economy‟s growth and development. Weare moving in right direction in and accepting the positive role of the state along withprivate enterprises.

91www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780REFERENCES1. Majumdar, N A.2007: Inclusive Growth: Development Perspectives in IndianEconomy, New Delhi: Academic Foundation.2. Meier, Gerald M. 2008: Leading Issues in Economic Development, New York:Oxford Uni. Press.3. Kelles, Anita. 2003: The Role of ICT in Poverty Reduction, Viitanen.4. Habito, Cielito. 2009: Patterns of Inclusive Growth in Developing Asia: Insightsfrom an Enhanced Growth-Poverty Elasticity Analysis, Tokyo: IDBI WorkingPapers Series, No. 145.5. Bandyopadhyay, Kaushik Ranjan. 2007: Poverty Alleviation and Pro-Poor Growthin India, New Delhi: Asian Institute of Transport Development.6. CSO 2009: Government of India, http://www.mospi.gov.in/, New Delhi.7. Rao, N.B.: Fostering inclusive growth.8. Joseph, Mathew. 2007-08: Financial Inclusion for Inclusive Growth, Vinimaya,XXVIII, 13-23.9. Chakrabarty, K C. 10 August, 2009: Banking – key driver for inclusive growth,Chennai: “Clarity through Debate” series.10. Narayan, S.: India‟s Economy: Constraint to Economic Growth, Asian Journal ofPublic Affairs, 1(1), 8-1111. Dieckmann, Rimar. 2007: Microfinance: An Emerging Investment Opportunity,Germany: Deutsche Bank Research.12. Chakrabarti, Rajesh.: The Indian Microfinance Experience – Accomplishments andChallenges, Gurgaon: Indian Development Foundation.13. Eleventh Five Year Plan 2007-12: Inclusive Growth, I.14. Eleventh Five Year Plan 2007-12: Social Sector, II.15. Centre for Science and Environment, An Ecological Act: A backgrounder to theNational Rural Employment Guarantee Act (NREGA).

92www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780E-COMMERCE IMPACT ON TRANSPORTS. BALASUBBU LAKSHMI**Assistant Professor, VELTECH University,Avadi, Chennai, Tamil Nadu. India.ABSTRACTThe aim of this paper is the logistics consequences of the development of E- commerceconcerning physical products. The consequences will be analyzed with a Supply Chain viewand the perspective from the transport and logistic providers.An e-commerce model is created by a number of different logistic forces. The model hasemerged out of the competitive forces model by Porter. This e-commerce model isdemonstrated by a number of examples. Here the model is used to indicate the way thelogistics industry will be positioned in the future. A number of case studies have beenperformed. To analyze the case studies the model is used. The model shows distinctly theway the five competitive forces influences the e-commerce companies as well as thelogistics industry. This facilitates for the logistics industry to take a larger part of the valuechain.The focus is directed towards the design and the management of different concepts for thephysical distribution. The interrelation between these concepts and the flow structure andthe information systems along the Supply Chain are to be defined. Models for Internetdistribution, as well as for upstream and downstream consequences for Internet buying willshown.KEYWORDS: E-Logistics, E-Commerce, E-Business, Logistics, Supply ChainManagement and Distribution.1 INTRODUCTION1.1 BACKGROUNDInterest in the Internet has changed so drastically in recent years that one can speak of auniversal breakthrough. The remarkable increase in users can be attributed mainly to theappeal of the World Wide Web, the Internet feature that is enjoying the greatest growth(Bergendahl et al., 1998).E-commerce will open an entirely new market for actors in the logistics field. Logistics anddistribution systems that function efficiently and effectively in all respects will be crucialfor the success of the companies involved. This implies that manufacturing companies, andespecially logistics companies, must identify and create effective logistics solutions inorder to compete on the marketplace.

93www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Ordering materials of various kinds electronically, and primarily via the Internet, willbecome more and more common. This applies not only to business-to-business but also tobusiness-to-customer. This end consumer will normally be a private person who orderseverything from books, clothes and food to a new model computer. The result is that the endconsumer can receive and will demand to receive the goods ordered significantly faster thanvia traditional distribution. The subsequent result will be shorter lead times, thedisappearance of one or more physical intermediaries, and direct transports to far moreaddresses, especially in those cases where retail stores are circumvented.The Internet signifies new opportunities for reaching the global market. Yet this, in turn,also signifies great demands on the actors who want to exploit these opportunities. Rightnow, there are several big actors who market themselves solely via the Internet (e.g. thebooksellers Amazon.com and bokus.se), yet there are very few who do this profitably.Making it possible to use the Internet as a marketing channel requires new knowledge abouthow the entire logistics system needs to be developed in various environments — and aboutthe consequences this will imply for other actors.1.2 SCOPEThe focus of the project was designed as follows.‣ The unit of analysis is firstly the transportation and logistics industry.‣ The area studied is the physical distribution along the supply chain and thesupporting information flow.‣ The project covers both business-to-business and business-to-consumer e-commerce, but with a focus on business-to-consumer.‣ Both e-commerce in general and its logistics consequences will be covered, butwith a focus on logistics consequences of e-commerce. Logistics consequencesimplies studying the demands on logistics for achieving profitable e-commercein terms of logistics costs and delivery service, and the possibilities for changeand/or improved logistics operations.‣ The logistics focus is on the logistics platform in terms of design andmanagement of the physical distribution structure in the supply chain: thedifferent actors, such as producers, retailers, wholesalers, truckers, forwarders,customers, etc. The supporting information flow is also included.1.3 RESEARCH QUESTIONSThis paper has its basic foundation build in a number of questions. This weredeveloped and further analyzed within a number of cases in cooperation with theindustryThis questions and possible development are as follows:1. What modes of distribution are interesting and what volumes and resources will be

94www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780needed in order to rationalize this commerce? How to organize and coordinate withexisting flows while waiting for sufficient volumes to motivate new, separate systems?2. Will there be a demand for extended cooperation between different actors vertically aswell as horizontally? How will this coordination be achieved? Is there a demand forincentive and control?3. What role will different information systems play in these new, alternative logisticssystems?4. How will the increased cost downstream be compensated with lower costs upstream?5. How will the time differentiation be affected by the prospect of alternative distributionsolutions?6. How will the distribution be allocated to a 24-hour period and how will this affectresource utilization?2 NEW FLOW STRUCTURES AS A CONSEQUENCE OF E-COMMERCE2.1 FLOW REQUIREMENTSIndustry observers expect e-commerce volume to triple in two years, even though theircurrent expectations vary. Business-to-business e- commerce revenues are currently a lotlarger than those of business-to- consumer and are forecasted to stay so in the near future.The market for consumer e-commerce requires a major shift in consumer buying patternsand a much larger penetration of the Internet in order to become really big (Cherrington &Capoor, 1999).Interest in the Internet has increased dramatically during the last few years. The Internetis an ―abstract network‖ (further explained in section 3.6 about Logistics systems’changeability below) which means that implementation times are short and thedevelopments around it are happening very fast. Consequently, Internet use will shiftfrom people with highly developed computer skills to ordinary people, which will resultin new possibilities for shopping over the net (e-commerce).E-commerce is one part of e-business, which in turn can be described as the newbusiness logic sanctioned by Internet technology. This new logic• spans entire value chains and creates new economic value,• breaks down borders and hence relationships,• Impacts on large empires as well as new start-ups (Erlandsson & Lindén, 1999).The differences between traditional business logic and the new e- business logic can beseen in Table 1 below. One trend that can be seen throughout the new logic is that it isfocused on building a network consisting of suppliers, manufacturers, and customers.Customers can participate in product development by surveys on the Internet, and arethereby, besides helping to develop the product, becoming more loyal customers.

95www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Suppliers are seen as partners participating in joint ventures with the company.TABLE 1. DIFFERENCES BETWEEN THE OLD AND THE NEW BUSINESSLOGIC (ERLANDSSON & LINDÉN, 1999)Value chain Old logic New logicProduct development Technology drivenCustomer drivenProcurement ―Suppliers are suppliers‖ ―Suppliers are partners‖Production To stock To orderMarketing Market share Share of customerSales Traditional channels Over the webOrder fulfilment ―It comes when it comes‖Value added functionality over thewebCustomer service second Customer service is the key toAfter sales prioritysurvivalOne definition of e-commerce might be "E-commerce includes everything from learningabout products online and electronic transactions to online customer service and support‖,Kevin Koym, president of Praxsys System Development (Erlandsson & Lindén, 1999).ALTERNATIVE MEDIA FOR E-COMMERCEIn the future, e-commerce need not necessarily mean the transaction between a web shopand a ―customer computer‖; the transaction might just as well be between an ordinary TVand a TV network. This means that it will be possible, for example, to order products fromtelevision advertising directly from the TV set.NEW OPENINGS FOR TRANSPORTATION COMPANIESThe business-to-consumer (B2C) relation is expected to grow rapidly though, and when thishappens it will result in several changes for actors in the logistics area. When delivering toprivate persons instead of companies, the demand for fast and accurate deliveries willincrease. Expected trends in traffic and distribution from a widely spread use of e-commerce are fewer passenger cars, an increased number of pickup trucks, and smallerconsignments, especially on international transports.Like all other industries, logistics has to consider e -commerce, evaluate the importance ofthe trend and determine what impacts it could imply. Most other industries are customersof logistics in one way or another, implying that any trend likely to impact other industrieswill certainly have an impact on the logistics industry.2.2 MODEL FOR INFORMATION IN E-COMMERCEInternet technology has forced companies to redefine their business models so as toimprove the extended enterprise performance (Simchi-Levi and Simchi-Levi, 2001). A

96www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780model describing how the Internet and information influences the business structure hasbeen developed. The base for the model is Porter’s five forces model (Porter, 1980). Thismodel is generally used to analyse a company’s position on the market and is usedfrequently as a means to evaluate the potential of a specific company. There is howevernothing that stops us from redesigning the model to analyse e-commerce.A range of new possibilities opens up as e-commerce is implemented as a way toreach the end-consumers. Companies will have the opportunity to establish a contact outsidethe traditional marketing channel. If this becomes reality on a large scale there has to be alogistics service developed in order to correspond to the specific needs.POTENTIAL ENTRANTSOne company is Amazon.com, which by selling books on the Internet Amazonbecame one of the largest book retailers in the USA. Amazon quickly became a threat to thetraditional bricks and mortar companies as they could offer the same products to a lowerprice and with a higher level of customer service. By this they forced their competitors, forexample Barnes & Nobles, to take action and to establish a similar business activity.SUPPLIERS/PRODUCERSE- Commerce holds a wide range of possibilities for different actors to establish amarket place for their products. A supplier can start competing with its retailer customers, akind of cannibalism that in the long run can drive the traditional marketing and saleschannels out of business. This can be considered as a vertical integration of the businessprocess where one company takes control over the whole flow of goods.

www.zenithresearch.org.in97ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 1 : MODEL FOR INFORMATION IN E-COMMERCE (ADAPTEDFROM PORTER, 1980)Established brandsPotentialEntrantsThreats ofNew EntrantsPortal CompetitorsSuppliersBargaining Powerof SuppliersBargaining Powerof BuyersBuyersProducerRivalry AmongExisting FirmsConsumerThreat of SubstituteProducts or ServicesSubstitutesLogistics CompanyBUYERS/CONSUMERSAt the same time as producers will take advantage of the possibilities of Internetconsumers, the buyers, will use this forum to negotiate prices and offerings. In the consumerline there are examples like Letsbuyit (www.letsbuyit.com) and different kinds of exchangeservices that bring together buyers/consumers and producers and providers of differentservices.SUBSTITUTESAs a consequence of a late refinement in the value chain new companies havebecome parts of the manufacturing process, doing simple configurations to make theproducts correspond to the customer demands. On example is where IBM computers use alogistics provider, Schenker AG, to configure and install software on the computers. Herethe logistics company in e-commerce that in itself is a substitute for traditional commercetakes over services from traditional retailers such as providing the client and carrying outsome service on the products.2.3 THE SUPPLY CHAIN FLOWS"The supply chain is the network of organizations that are involved, through upstream anddownstream linkages, in the different processes and activities that produce value in the formof products and services in the hands of the ultimate consumers." (Christopher, 1992)

www.zenithresearch.org.in98ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 2.AN EXAMPLE OF A SUPPLY CHAIN.Agriculture Food Wholesaler Supermarket ConsumerprocessingPhysical flowData flowThe above figure indicates two important flows that we would like to emphasize — the dataflow and the physical flow. E-commerce will impact all elements in the supply chain, whichrely on data flow to improve efficiency. Demands on a smooth integration of these flowswill increase in the future, from being a competitive advantage to a necessity. In internallogistics, within a plant, fixed installation or permanent information connections oftenprovide physical links between the sender and the receiver, whereas in external logistics(between companies in the chain) there are only virtual (abstract) links between the nodes(Tilanus, 1997). Maintaining the relation between the information system and the physicalgoods can sometimes be difficult. The shipment may be forwarded by various modalitiesand different companies, consolidated with larger shipments or broken down into smallerones. The information is often sent by a number of different means — mail, phone, fax, EDIor physically attached to the shipment. Since global trade is increasing, the physical flowswill probably become even more complex in the future. This will increase not only theimportance of the logistics service provider as an integrator between players in the chain,but also the demand on his or her role as a coordinator of information flow and physicalflow.3 DISTRIBUTION DEVELOPMENT WITHIN E-COMMERCE3.1 CONVENTIONAL DISTRIBUTIONIn conventional international distribution, goods pass through several nodes, or stops, beforereaching the customer, see Figure 3. After production, and possibly storage at the factory,the goods are delivered to the national distribution center (DC). Here they are stored,consolidated and reloaded, and then sent on to the next stop, the local DC. The goods arehandled in the same way as at the national DC, and are thereafter sent on to the retailer,where they are sold to the customer. Since most of the time that goods spend at nodes doesnot add value, the more nodes there are in a distribution channel the less efficient itgenerally is (Lumsden, 1998).

www.zenithresearch.org.in99ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 3.CONVENTIONAL DISTRIBUTION STRUCTURE.Producer Distribution centers - DC Retailer CustomerNational LocalCustomerCustomer Order Point (COP)The point where the goods change from being delivered to stock to being delivered to orderis called the customer order point (COP). In conventional distribution, the COP is at theretailer, where the customers order and buy the products. This is called a push system sincethe company predicts the demand and the goods are pushed through the distribution channel(Coyle et al., 1996).With e-commerce there are several possibilities for new ways of distributing goods, andpresumably there will be different ways of distribution for different types of goods.3.2 DISTRIBUTION STRUCTURES FOR INTERNET BUYINGSeveral different distribution channels can be seen as possible future solutions, see Figure 4.The base alternative is the conventional distribution, which is described earlier in thesection about conventional distribution. An example from the food industry could be thatthe food producer is located in France, from where the groceries are shipped in fulltruckloads or trains to a national distribution center (DC) located somewhere in southernSweden or in Denmark, e.g. Dancargo’s national warehouse at Arendal, Denmark. In theDC the groceries are stored, reloaded and consolidated with other products and later shippedon to a local DC in full truckloads. This DC can for example be ICA Väst, located inKungälv, Sweden. At ICA Väst the goods are again stored, reloaded and consolidated andfrom here transported to the retailer ICA Maxi by either full truckloads or less than fulltruckloads. Customers then purchase the groceries at ICA Maxi.3.3 DISTRIBUTION CHANNELSThe first alternative for a simpler distribution system for e-commerce products is to removethe retailer and distribute goods directly from local warehouses to customer. This is calledhome delivery, and an example of this situation could be the purchasing of tulips over theInternet. The tulips are grown in the Netherlands and are shipped to a national DC inSweden in refrigerated trucks, since the goods are perishable. In this warehouse the tulipsare consolidated into smaller consignments and then transported to the retailers, for examplean Interflora store. The customer now places an order at the Interflora store over theInternet, and the florist arranges the bouquet. The flowers are then distributed to thecustomers, either in Interflora’s own vehicles or in a courier’s van.

www.zenithresearch.org.in100ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 4.DISTRIBUTION PROCESSES FOR INTERNET BUYING."Conventional distribution"Customer"Local distribution""Postal service" "Mailman"Reduction inTime To Customer (TTC)"National distribution" (eg BTL)"Integrator" (eg DHL)Customer Distribution expandingUpstream and Downstream= Customer DistributionAnother possible alternative is to remove the local warehouse from the distribution channeland use the postal service to distribute the goods from the national warehouse to thecustomer. This is called mail-order shopping and works as follows.A third alternative is to distribute goods from the national distribution centers to thecustomers. A good example here is Tamro’s distribution of incontinence protection articlesfor elderly people. The products are produced in Germany and transported to Tamro’snational DC in Bäckebol, Göteborg. There they are stored and packed, and finallydistributed directly to the customers by Schenker-BTL.The last alternative is to have direct distribution from the producing company to the finalcustomer. This could, for example, be the distribution of tailor-made clothes by thecompany Tailoronline.3.4 UPSTREAM AND DOWNSTREAM CONSEQUENCESThere is little doubt that e-commerce will necessitate changes in the way products aredistributed from manufacturer to customer. What these changes will be is uncertain, but it ispossible to distinguish the changes in upstream and downstream consequences.The main upstream consequence is that the customer order point (COP) will be movedupstream towards the producer, and the system will therefore change toward a pull strategy.This will demand a more efficient information system, but will lead to reduced inventorylevels and thereby reduced capital tie-up (Lumsden, 1998).

www.zenithresearch.org.in101ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 5.UPSTREAM AND DOWNSTREAM CONSEQUENCES FORINTERNET BUYINGProducer Distribution centers DC RetailerNational LocalCustomerCOP COP COP COPAny solution"Upstream"3.5 DELIVERY PARAMETERSPOINT OF DELIVERY―Downstream‖It is very interesting to know whether the customers have the same attitudes andexpectations as the producers and distributors.The results from the diagrams in Figure 6 below show that the drop- off point is still not afully accepted alternative. More than 60% are willing to pick up products at a post office,while no more than 30% are willing to do so at a drop-off point. This is interesting, sincethere is basically no difference between the two alternatives; the post office is in fact a dropoffpoint for Posten’s customers. This is a clear advantage for Posten On Line Center and asevere disadvantage for other distributors. For example, Privpak has been delivering mailorderproducts to drop-off points for a long time, but still there is resistance to thisalternative.FIGURE 6. ATTITUDES TOWARD DELIVERY TO DROP OFF POINTS, POST,HOME AND WORKPLACE1009080706050 No40 Maybe3020100Drop off point Post office Home Work placeYesAs could be expected, most consumers want their products delivered to their homes; 89%stated that this was a good alternative. The respondents are in other words prioritising the

k k k k k kwww.zenithresearch.org.in102ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780comfort of receiving the goods at their door higher than the freedom of picking the goods upwhenever they want. The alternative of delivering to workplaces got a very mixed result.Over 50% stated that they would like to have their products delivered to their workplace,while over30% said that they would not. From this we can conclude that this alternative has thepotentialof being a good way of delivering e-commerce goods, but that it needs to be morethoroughly investigated.TIME OF DELIVERYThe time when people want their products to be delivered is an issue that has not changedparticularly much between our study and Bergendahl & Magnusson’s (1998); the mostpopular time window is still weekdays between 6pm and 8pm. The results in Figure 7 showthat most people are prepared to commit themselves to being home for a couple of hoursduring a weekday to receive their products.FIGURE 7.WHEN PEOPLE WANT THEIR PRODUCTS DELIVERED.Time of delivery80%60%40%20%0%6 0 y-08 -12 -1 -18 -2 -22 day0608 12 16 18 20 ur undas s s Sy yyda days da days daedaysSatWeWee Wee Wee Wee Wee3.6 LOGISTICS SYSTEMS’ CHANGEABILITYWhen implementing changes in physical distribution, which will probably be necessary tomaximize the benefits of e-commerce, the time for changing the different aspects mentionedabove will vary. The ideological changes are fairly quick and easy to implement; these aree.g. a politician’s words and, as we all know, those can often change from day to day.Changes in the infrastructure, on the other hand, take a lot of time and cost a lot of money(Figure 8). This figure also shows that making changes in information systems, which is ina way what e-commerce is all about, is a fairly quick process. Since new types ofinfrastructure will probably be necessary to fully utilize the benefits created from e-commerce, it is a rather safe assumption that it will take some time before we will see thewhole potential of e-commerce. The complexities and differences in these changes are someof the factors that make it interesting and important to investigate how different actors willreshape their networks to adapt to the new demands of e-commerce.

www.zenithresearch.org.in103ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 8.LOGISTICS SYSTEMS’ CHANGEABILITYMagnitude of change(DD)Ideological(Politicalnetworkconcepts)Information(Abstract networkcomponents)Actors(Human Resource network components)Mobile resources(Physical network components)Infrastructure(Physicalnetwork)Implementationtime4 SUSTAINABLE DEVELOPMENT4.1 REQUIREMENT OF A SUSTAINABLE SOCIETYThe focus in this context is given in Figure 9. In the figure the original ideas of the twodifferent approaches to handle complexity in transportation and logistics systems are given.The basic assumption was, and still is, that there exists a trade off between a reductionistapproach and an integrated approach. In the context of transportation and logistics this willmean a trade off between using an overcapacity of resources and the use of methods andstrategies that uses information as the source to handle the complexity.FIGURE 9: THE REQUIREMENT OF A SUSTAINABLE SOCIETY REGARDINGTHE TRADE OFFS ON TRANSPORTATION AND LOGISTICS SYSTEMS(LUMSDEN ET AL., 1998 AND WAIDRINGER, 2001)Transportation and logistics systems complexityReductionTrade OffIntegrationOvercapacity Frequency modulation Vertical HorizontalInformationInformationNumber OfTerminal Systems(Hub And Spoke)Real Time(Connections)MemoryVehiclesSlotsUnits(Standardizing)Requirement of a sustainable society

www.zenithresearch.org.in104ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The upper level in Figure 9 is the strategy level, where the basic decision is whether tochoose to reduce the system or keep it integrated. The traditional approach has been tochoose the approach where we reduce the system in order to try to make them easier tohandle. Methods and strategies to handle the problems arising in complex systems have notbeen readily available why this strategy is the predominating in the transport and logisticsindustry today. The next level is the tactical level showing the two dominating ways ofcreating simple enough systems to handle a complex demand or environment, surpluscapacity or higher frequency (over transport), than necessary to accomplish the currentvolumes. The last level in this figure is the operational level that shows the practicalsolutions that are deployed in order to solve the problem, such as hub and spoke. The righthand side describes the other choice, sophisticated solutions to match the complex problem.4.2 PERSPECTIVES OF E-COMMERCERegarding e-commerce we can look at the figure out from two perspectives. The shippers’and the forwarder’s perspectives. The shipper is more concerned about good valid andprecise information about the cargo and the actual transport. The shipper is though notreally interested in how the actual transport, capacity etc is solved, i.e. the shipper is notinterested if we use a transport system with over capacity or a system that use overtransport.FIGURE 10 : THE TWO PERSPECTIVES OF E-COMMERCE - PARTICIPANTFOCUS (LUMSDEN ET AL., 1998)INTERFACES (Node-Link)STRATEGY REDUCTION INTEGRATIONF CONSE- SIMPLICITY COMPLEXITY SO QUENCESHRIWPA SYSTEM OVER CAPACITY OVER TRANSPORT VERTICAL HORIZONTALPR INFORMATION INFORMATION EDEREAL TIMERTOOLSNUMBER OF TERMINAL SYSTEM MEMORYR(HUB AND SPOKE) (CONNECTIONSVEHICLESSLOTSUNITS(STANDARDIZING)Buyers want to know their landed cost of the products, when and were the products can bedelivered, etc. This additional information, the order management, the IT services on whichthese are based, and the Just-In-Time transport and delivery are summarized by the term e-fulfillment.

105www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805 SUMMARY & CONCLUSIONAt present e-commerce is pursued to a fairly high degree between companies, but is still notvery developed between companies and private persons. The business -to-consumer (B2C)relation is expected to grow rapidly though, and when this happens it will result in severalchanges for actors in the logistics area. When delivering to private persons instead ofcompanies, the demand for fast and accurate deliveries will increase. This is because one ormore of the physical nodes will disappear when the Customer Order point (COP) will bemoved upwards the supply chain. Direct home deliveries will request shorter lead times,and more complex distribution systems will be necessary to make this possible.E-commerce will impact all elements in the supply chain, which rely on data flow toimprove efficiency. Still, physical transportation is needed for most products, implying theusefulness of deriving e-commerce demands on logistics by analysing the logisticscustomers. Demands on a smooth integration of these flows will increase in the future, frombeing a competitive advantage to a necessity.The main upstream consequence is that the customer order point (COP) will be movedupstream towards the producer, and the system will therefore change toward a pull strategy.This will demand a more efficient information system, but will lead to reduced inventorylevels and thereby reduced capital tie-up. The consequences that are said to be downstreamare those that concern the actual distribution of the products to the customers. The mostclearly foreseeable outcome is that consignment sizes will be reduced., the number ofconsignments and the number of delivery addresses will increase, and this in turn will leadto more complex distribution systems and more assignments for transportation and logisticscompaniesWhen implementing changes in physical distribution, which will probably be necessary tomaximize the benefits of e-commerce, the time for changing different aspects will vary.These aspects are e.g. ideological, information, actors, mobile resources and infrastructure.The complexities and differences in these changes are some of the factors that make itinteresting and important to investigate how different actors will reshape their networks toadapt to the new demands of e-commerce.6 REFERENCESBergendahl K, Magnusson C, (1998), Ett transportföretags möjligheter och hinder videlektronisk handel – ur konsumentledets perspektiv, Department of Transportation andLogistics, Chalmers University of Technology, Göteborg,Cherrington & Capoor (1999), E-commerce and the opportunities for telecos, GlobalTelecoms Business, May Christopher (1992), Logistics and supply chain management,Pitman publishing, LondonDahlén M., (1997), Closing in on the Web Consumer – A study in Internet shopping, FDRStockholm School of EconomicsErlandsson B., and Lindén Å., (1999), E -commerce from a Logistic perspective,Department of Transportation and Logistics, Chalmers University of Technology, Göteborg

106www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Freij, C., & Rosengren, Y., (1999), E-Commerce – Affecting the Future of Logistics,Department of Transportation and Logistics, Chalmers University of Technology, GöteborgHultkrantz O, 1999, E-Networks in Road-Based Traffic, Report 39, Department ofTransportation & Logistics, Chalmers University of technology, GothenburgHultkrantz O, and Lumsden K. R., (2000b), E-commerce and Logistical Consequences,Message 109, Department of Transportation & Logistics, Chalmers University oftechnology, GothenburgKarp, R. (1999), Internethandel – ur ett detaljhandelsperspektiv, Forskningsrapport S40,Swedish Research Institute of Trade (HUI).Lohr S, (1997), ―Beyond Consumers, Companies Pursue Business-to-Business NetCommerce‖, The New York Times, 28 th AprilPeters, M. and Jockel, O. (1998), The Day of the Mega-Carrier, Logistics Europe, June1998, pp 16-25 Porter, M. E. (1980), Competitive Strategy, Free PressSimchi-Levi, D. and Simchi-Levi, E. (2001), The Effect of e-Commerce and e-Business onSupply Chain Management and Logistics, Fourth Forum on Intermodal Freight Transport inEurope and the United States, April 4-6, 2001 – Port Authority of Genova, ItalyWaidringer, J. (2001) Complexity in Transportation and Logistics Systems - An Integratedapproach to modelling and analysis, Report 52, Department of Transportation & Logistics,Chalmers University of technology, GothenburgWigand, R.T. (1997) . ―Electronic commerce: definition, theory, and context‖, TheInformation Society, vol. 13, no. 1, 1997, pp. 1-16

107www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780REGIONAL VARIATION IN DEVELOPMENT PROFILE OF ORISSA:AN ECONOMETRIC ANALYSIS OF INDICATOR OF DEVELOPMENTABSTRACTUMAKANTA TRIPATHY*; MILI DAS**; PRAGNYA LAXMI PADHI****Lecturer in Economics, Department of BSH,Silicon Institute of Technology, Sambalpur.**Research Scholar,NCDS, Bhubaneswar.***P.G Economics,G.M (Auto) College, Sambalpur.This paper focuses on inter district variation in development across different districts in the Stateof Orissa. This paper is divided into four major studies. The first study relates to disparities invarious indicators of agricultural variation. The second study relates to various indicators ofindustrial variation. The third observation relates to infrastructural variation and the fourth onerelates to human resource variation. There is a comparison between two points of time 1980-81and 2000-01 for thirteen districts of undivided Orissa. On the basis of these indices, the paperclassified the different districts of Orissa into very backward, backward, developing anddeveloped categories.INTRODUCTIONThe problem of regional imbalances has become a worldwide phenomenon today. After theSecond World War there is problem of nation growth, but the problem of 1980‟s is the regionalimbalances. The problem is threatening the peace and integrity of nations. India is considered asone of the poorest country of the world ranking 127 in HDI by UNDP. India„s share in the worldis also not impressive. Regional disparity in India is now a matter of serious concern. It is wellknown that in large economy different regions with different resource bases and endowmentswould have a dissimilar growth path over time. Apart from India‟s generally low level of socialdevelopment, there is acute inter-regional & inters state disparity in such development. In thestate of poverty and under development of the economy, the states of Indian union are found tobe unevenly developed. From among the major states which constitute of 96% total population;the forward group consists of Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Punjab, &Tamilnadu while the backward group consists of Assam, Bihar Madhya Pradesh, Orissa,Rajasthan, Uttar Pradesh & west Bengal. The forward group of states account for about 42% ofthe national population, the backward group accounts for as much 54% of the nationalpopulation of the country. Disparities in economic and social development across the regionsand intra-regional disparities among different segment of the society have been one major area ofconcern and it has influenced planning in India since independence. But India presents a pictureof extreme regional disparity even after the five decades of economic planning through five-yearplan whose main objective has always been the elimination of the existing imbalances in

108www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780development of various regions. The findings of many study show that the level of disparityamong the states of Indian union increased over the years. The problem of regional developmentin the national context did not get adequate attention of the policy makers & as a result thedevelopment programmes of these countries with glaring regional disparity definitely resulted inlopsided and distributed development. Some of the already developed regions enjoyed theprivilege to develop at the cost of backward regions, which continued to stagnant. Regionalimbalance started widening because of ill conceived investment programmes affected under thecolonial rule and also due to lack of attention paid to the micro level plans, rest this regionalunevenness multiply to adversely affect the overall performance of the country.Orissa is one of the most backward states in the Indian Union. The state has high level ofincome poverty with about 47% of people below the poverty line, in 2000 according to PlanningCommission. Thus post-independence Orissa contained regions, which were at varying levels ofdevelopment in terms of economy, in terms of formation & growth of modern knowledge thatpractically meant differential level of generation of market forces & economic & socialinfrastructure.SECTION-IOne of the principal justifications for introduction of five-year plans & establishment ofthe Planning Commission was to ensure a process of regionally balanced & socially equitablydevelopment. Through public & direct private investment as well as various other interventions& public policies, balanced development across the regions was pursued during the 1 st decade ofplanning. Though such policies were not an unadulterated success, a measure of regionalbalance in development was maintained. (N.J Kurian, 2000) .A Study over the Plan Period onRole of Infrastructure in Regional Development point out the impact of public investment &physical infrastructure on both private investment behaviour & regional economic developmenthas been found to be highly significant & positive. The later hypothesis is tested on Indian statesover the plan period using OLS regression. For this purpose a physical infrastructuredevelopment indicator is formulated with the help of principal component analysis. With variousunavoidable data limitations the results are significantly conclusive: first regional disparity hasbeen rising in recent period and Plan outlay has not played any major role in this regard; Secondregional imbalance in physical infrastructure has been found to be responsible for rising incomedisparity across the states. (Buddhadev Ghosh & Prabir De, 1998)Ghanasyama Mahanty in his paper “Andhra Pradesh: A District-Wise Analysis” presentswith the help of socio-economic development indicators tries to define, measure & compare boththe economic growth & human development process at the district level in the state of AndhraPradesh. It also attempt for an inter-temporal analysis by comparing these developmentprocesses over three period of time viz. 1982-83, 1987-88 & 1992-93. This study suggests- itconfirms the simultaneous prevalence of regional cohesion along with severe regional inequalityin the sense that, while growth benefits have spread to & permeated some of the districts, someare getting trapped in vicious circle; it recognizes the presence of high growth along withdisrupted human development in some of districts of state; finally reflects the mammothimportant of agriculture sector in promoting states overall development. Regional differences inthe profitability & growth records of manufacturing units are thus studied comparing

www.zenithresearch.org.in109ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Maharashtra & Gujarat. The analysis is on the basis of the performance record of sample quotedcompanies, selected from two states on random basis & studied in a comparative costframework. It is seen that there are no significant differences in their performance, to the extentthat individual industries have been more profitable in one region than in the other. There is thusevidence to suggest „relative regional effect‟ for industrial growth. (K.K. Subramanian & T.S.Papola)Ravindra H. Dholakia (1994) in his paper “Spatial Dimension of Acceleration ofEconomic Growth In India” made study of 20 states economies of India over the period 1960-61to 1989-90 reveals that the phenomena of acceleration in economic growth is spatially dispersed& covers about two-thirds of the national economy. The study also finds that relatively less welloff. There are marked tendencies for convergence of long-term economic growth rate amongIndian states. The leading states also show different patterns of growth.Ric Shand & S. Bhide(2000) in their paper „Sources of Economic Growth: Regional Dimensions of Reforms‟ examinesvariation in the size, income & structural characteristics of Indian states. It analyses total & percapita net SDP for the period 1970-71 to 1995-96. Sectoral analysis shows that reform inagriculture will yield the most benefit as growth in this sector is positively & significantly relatedto overall growth. Infrastructure & human development are other important determinants.In the article „Economic Growth & Regional Divergence In India, 1960 To1995‟Buddhadev Ghosh, Sugat Marjit, Chiranjib Neogi (1998) points out that regional convergencehas centered on the empirical relationship between initial income & its long run growth ratefound among the regions in the developed countries. The fundamental basis of the convergingoutcome of the neo-classical assumption of the law of diminishing returns to capital. In contrastto the conventional result of the developed countries, they found that Indian states have beendiverging over the period of last 35 years.In the paper “Post Reform Regional Variation”Mahendra Dev looks at regional disparities on important economic indicators in the importanceof balanced regional development & policies were designed to direct more investment to therelatively backward areas. Regional disparity continues to remain a serious problem. In the postreform period, due to deregulation, the degree of the central government declined in manysectors. State governments can now take more initiatives for economic development than evenbefore. Also the role of private sector is more important as compared to the public sector.Ravindra H. Dholakia (2003) in his article “Regional Disparity in Economic & HumanDevelopment in India” examines the trends in regional disparity in India‟s economic & humandevelopment over the past two decades & the direction of their causality. He argues that thePlanning Commission & Finance Commissions need not be unduly concerned about regionalimbalance in human or economic development.2. OBJECTIVESThe present study has the following objectives:To study and analyse the differential growth rate in region wise and to locate theunevenness in the development profile in state of Orissa.

www.zenithresearch.org.in110ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780To verify how the determinants of development show uneven growth over a period oftime.To examine the appropriateness of technique for measuring disparity through variousindicators of development for the state of Orissa.3. DATA BASE AND METHODOLOGYThe study utilizes the secondary database & indicators of development published by Planning &Co-ordination Department, to analyse pattern of regional development both on the basis of 13undivided districts & 30 divided districts of the State. Attempt has also been made to examinethe pattern of variations block-wise on the basis of data base presented in the Ghadei CommitteeReport (1992) “Report of the Committee on the constitution of separate development Board inOrissa”SEMI-LOG MODELTo find out the growth rate of different indicators of development log-linear function isused. In this model the slope coefficient (constant relative log b) measures the relative change in„y‟ for a given absolute change in„t‟ i.e.log bRe lative change in yAbsolute change in tNow, the growth rate (g) can be found out from the following equationg = [antilog (log b)-1] x 100The log-linear equation can be written in the following formy=ab tTaking logarithms both side, it is expressed in the non-linear form as:log y = log a + t log bx = A + Bt (linear form)A = log a, B = log ba = anti log A, b = anti log BThe co-efficients a & b are estimated by applying least squares method to the log linear &obtaining the value of log a and log B & then taking anti-logarithms of co-efficients are found asin the case of ordinary regression method.

www.zenithresearch.org.in111ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780SUDARSAN IYANGAR METHODThis method has been used to measure the overall development of a district along with itsdevelopment at sectoral level. It irons out the variation by adopting two-tier weightage oneamong the sectors of development & another within the indicator itself among the district byadopting inverse ratio of standard deviation.Let Xid represent the size of value of „i‟th development indicator in the „d‟ th district ofthe State (i=1,2,3…….m & d=1,2,3,……p) & let „m‟ the development indicators be classifiedinto „n‟ sectors with sector subscript „r‟ (r=1,2,……n)Within a sector the weighting of an indicators inWrKrvar( Zid )whereKrq1i 1 var( Zid )1Zid is the standardized variable which computed asZidZidXid min Xidmax Xid min Xidmax Xid Xidmax Xid min Xidfor +ve indicatorsfor –ve indicatorsThe measure of level of development for the „r‟th sector for the district „d‟ isyrdmi 1rw Zid iin the second stage the „n‟ sector level measures of level of development are combined withweight.Wrvarky r d1kni 1var1ry d

www.zenithresearch.org.in112ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The composite measure of overall level of development for the district „d‟ isyTdnr 1Wryrd-DISTRIBUTIONThe indices both at the secatoral as well as over all – are then graduated by using Betadistribution for a meaningful characterization of different stages of development. A randomvariable, Z has a Beta distribution in the interval (0,1), if its probability density function (Z) canbe written as :1a 1b 1f ( Z ) Z (1 Z ) , 0 Z 1 and a, b > 0.( a,b)Where1a 1b 1( a,b)Z ( a Z ) dz0Let (0,Z 1 ), (Z 1 , Z 2 ), (Z 2 , Z 3 ) and (Z 3 , 1) be the linear intervals such that each internal hasthe same probability weight of 25%. These factorial groups are used to characterise variousstages of development as follows :Very backward if 0 < Y d Z 1 ,Backward if Z 1 < Y d Z 2 ,Developing if Z 2 < Y d Z 3 ,Developed if Z 3 < Y d 1.Since indices- sectoral as well as over all- take values between 0 to 1 the parameters aand b in the assumed beta distribution is estimated as follows:a'1'1'2/'22 '1b1'1'1'2/'22 '1

113www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57804. REGIONAL DEVELOPMENT IN ORISSAThe variation in development across different districts in the State of Orissa is examined inthe present chapter through different indicators relating to different sectors viz. Agriculture,Industry, Infrastructure and Human Resource. Comparison of two points of time would revealthe changes in the relative positions. Here we compare two points of time 1980-81 and 2000-01for thirteen districts.The indices of Agricultural Development presented in Table 1 analyses are Per-capita incomefrom agriculture, Net area irrigated as % of net area sown, Productivity per hectare, Croppingintensity and Distribution of fertilizer per „000 hectare of gross cropped area. During 1980-81 forOrissa it is Rs.728.94. The districts Sambalpur, Phulbani, Mayurbhanj, Koraput, Kalahandi,Ganjam and Bolangir have higher income than the State average. In contrast the districtsCuttack, Dhenkanal, Keonjhar, Sundargarh, Puri registered low level. In the year 2000-01average State level is Rs.1331. The districts Balasore, Bolangir, Kalahandi, Koraput andSambalpur have higher income than the State average while the districts Sundargarh, Puri,Keonjhar and Cuttack are lower than the average level.In case of net area irrigated as percentage of net area sown the State average level is19.82% in 1980-81. Similarly in the year 2000-01 the districts Puri, Ganjam, Cuttack, Balasoreexhibit higher level of irrigation and districts with low level of irrigation are Kalahandi,Sundargarh and Koraput. The State registered a growth rate of 3.87% during the period 1980-81to 1992-93. The districts with higher growth rates are Keonjhar, Kalahandi and Sundargarh andthe lower growth rates are Cuttack, Ganjam and Sambalpur. Thirdly, we focus on the indicator ofproductivity per hectare or gross value of agriculture output per hectare. In 1980-81 the Stateaverage level is Rs.3188. The district with highest productivity is Cuttack followed by Ganjam,Puri, Balasore, and Sambalpur. Similarly districts with lower productivity are Keonjhar,Sundargarh, Koraput, Mayurbhanj and Dhenkanal. In 2000-01 we find that the districts showinghigher productivity are Balasore, Cuttack, Ganjam Mayurbhanj, Puri and Sambalpur where theState average is Rs.6009. The State registered a growth rate of 3.24% over the period 1980-81 to2000-01. The districts Keonjhar, Mayurbhanj, Sundargarh and Balasore have higher growthrates while the districts Cuttack, Ganjam, Kalahandi registered lower growth rate.

114www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE-1: INDICATORS OF AGRICULTURAL DEVELOPMENTPer capita income net area irrigated as productivity per Cropping distribution of fertiliserfrom agriculture % of net area sown hectare intensityper 000' hectares of grosscropped areaSl.N198 1992-growth1980- 1992-Growth1980- 1992-growth1980- 1992-growth1992-growtho. District 0-81 93 rate 81 93 rate 81 93 rate 81 93 rate 1980-81 93 rate1 Balasore 661 1340 5.8 19.7 38 4.6 3475 7156 4.3 135 155 1.4 7.98 38 19.152 Bolangir 848 1518 5.4 16.8 24 4.6 3007 5512 3.5 133 135 0.5 13.1 14 6.593 Cuttack 680 1074 4 33.1 52 1.3 4590 6581 0.2 176 178 0.2 6.95 24 18.264 Dhenkanal 712 1367 5.6 10.5 25 4.8 2873 5450 3.6 131 144 1.4 4.28 12 14.185 Ganjam 734 1262 3.9 49.4 52 1.4 3986 6521 0.8 170 171 1.7 10.1 38 17.626 Kalahandi 988 1585 3 7.86 16 7.4 2641 4135 1.6 149 147 0.5 2.18 9.4 21.187 Keonjhar 569 1280 8.4 8.39 25 8.8 2252 5706 8.1 119 133 1.7 4.36 9.7 12.118 Koraput 824 1541 4 3.82 22 13 2412 5354 4 127 153 1.6 4.17 10 10.899 Mayurbhanj 740 1432 5.7 10.3 24 6.1 2847 6577 6.1 119 126 1 9.07 12 8.7710 Phulbani 977 1926 3.7 13.9 26 4.9 3082 6049 2.2 146 152 -0 1.86 6.4 15.4311 Puri 597 1072 6.6 42.4 63 3 3713 6847 3.3 172 165 -0 7.81 27 17.912 Sambalpur 877 1645 5 23.3 33 2.4 3269 6430 3.6 131 136 0.9 26.3 147 9.1513 Sundargarh 480 1112 6.7 7.3 19 6.6 2382 5604 5.4 124 125 0.6 7.67 11 7.6714 Orissa 729 1331 4.8 19.8 33 3.9 3188 6009 3.2 143 149 0.8 8.52 22 13.41Source: Indicators of Economic Development of Orissa, 1970-71 to 2000-01, Statistical Abstract of Orissa 1970-71 to 2000-01Fourthly, cropping intensity for the state in 1980-81 is 142.68. The districts Cuttack, Puri, Ganjam and Kalahandi have higher level ofcropping intensity than the State average. In contrast the districts Sambalpur, Koraput, Keonjhar registered low level. In the year

115www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802000-01 average State level is 149.38. The districts which are at higher or lower level in 1980-81 remaining at the same position evenafter a decade in 2000-01 except Koraput which registered more than State average. The State registered a growth rate of 0.78%during the period 1980-81 to 2000-01. In terms of fertilizer per 000‟ hectare of gross cropped area in the year 1980-81 Sambalpurregistered highest level while the State average is at 8.52 Kg/hect. In the year 2000-01 the State average is 21.55 kg/hectare. Thedistricts Sambalpur, Balasore, Ganjam and Puri are placed at higher level and Phulbani, Kalahandi, Keonjhar, Koraput at lower levelthan State average. The State registered a growth rate of 13.41% in between the period 1980-81 to 2000-01.Taking all the indicators it is visualized that there is unevenness among the districts in agriculture. The districts of Ganjam,Puri, Sambalpur and Cuttack & Balasore were the relatively developed district in the field of agriculture in 1980-81. This trend is alsofound in the year 2000-01 with the districts found at the bottom level in the earlier period, are still in their position. The study revealsthat the backward districts continued to remain backward with no sign of marked improvement. This also shows that the districts,which are not developed in agriculture field, are also having lack of proper irrigation facilities, poor cropping pattern and lowconsumption of fertilizer

116www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 2: INDICATORS OF INDUSTRIAL DEVELOPMENTSl.No.DistrictIndustrial worker per lakh ofpopulationValue added by manufacture percapitaPer capita consumption of electricity( inKWH)1980-81 2000-01growthgrowthgrowth1980-81 2000-011980-81 2000-01rateraterate1 Balasore 146 239 6.24 7.29 373 19.11 13.64 177.16 23.762 Bolangir 175 197 2.08 2.39 38 7.14 9.17 46.05 16.133 Cuttack 413 402 2.72 36.04 47 -0.35 43.07 158.09 12.344 Dhenkanal 123 568 11.56 3.57 1133 29.7 204.24 266.95 2.515 Ganjam 180 156 -0.05 21.97 34 5.75 39.47 138.58 11.336 Kalahandi 56 68 0.2 2.54 24 -1.82 5.67 40 17.717 Keonjhar 110 219 5.69 27.83 273 29.99 101.71 178.5 7.68 Koraput 248 405 3.1 75.17 458 29.96 126.27 246.73 4.329 Mayurbhanj 112 175 4.67 7.66 71 29.97 8.53 58.1 19.0610 Phulbani 17 14 3.25 0.89 9 3.35 5.59 45.15 16.6911 Puri 246 430 7.26 154.58 671 11.27 36.08 160.65 13.1412 Sambalpur 672 618 -0.68 90.68 283 9.2 198.36 208.26 3.7513 Sundargarh 2469 2270 -0.17 725.44 2621 14.48 601.68 384.23 -5.5714 Orissa 369 428 1.78 80.16 406 16.51 94.32 168.22 4.91Source: Indicators of Economic Development of Orissa, 1970-71 to 2000-01For this sector the variation across districts is examined through three indicators viz. Industrial worker per lakh of population,Value added by manufacture per-capita and Per-capita consumption of electricity, which are presented in Table-2.Industrial workerper lakh of population during 1980-81 for Orissa is 369. In the year 2000-01 average State level is 428. In this year Sundargarh hasmore number of industrial workers than other districts & State average. The districts Sambalpur, Dhenkanal have also more workerswhile Phulbani, Kalahandi, Ganjam, Mayurbhanj have relatively less number of industrial workers. The State registered a growth rate1.78% over the period 1980-81 to 2000-01. The districts Dhenkanal, Puri, Balasore and Keonjhar registered high growth rate.

117www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780However, the districts Sambalpur and Sundargarh registered negative growth rate of –0.68% and –0.17% respectively although theyhave more number of workers than State average.Secondly, we focus on Value Added by Manufacture Per-Capita. State average is Rs. 80.16 in 1980-81. In 2000-01 Stateaverage is 406. Over the period Keonjhar, Mayurbhanj, Koraput, Dhenkanal registered a high growth rate around 30% while Stategrowth rate is 16.51%. But the districts Kalahandi and Cuttack registered negative growth rates of –1.82% and 0.35% respectively.Thirdly, in case of per-capita consumption of electricity in the year 1980-81 the district Sundargarh is placed at top level followed byDhenkanal, Sambalpur, Koraput, Keonjhar, with higher than the State average of 94.32KWH. In the year 2000-01 we observed thesame pattern except Balasore that moved to developed category in this field. The State registered a growth rate of 4.91% during theperiod 1980-81 to 2000-01. The districts with higher growth rates are Balasore, Mayurbhanj, Phulbani, Bolangir while the districtsSundargarh, Dhenkanal, Sambalpur and Koraput registered lower level of growth In this period Sundargarh recorded a negativegrowth rate of –5.57%.So, within Orissa between the districts there is unevenness in the Industrial Sector. In the year 1980-81Sundargarh, Puri, Sambalpur and Dhenkanal are the industrially developed districts, while Phulbani, Kalahandi, Mayurbhanj andBolangir are the backward districts in this field. In the year 2000-01 we also find there is no change in regional pattern i.e. thedistricts, which are developed in 1980, are also developed in 2000-01.

118www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 3: INDICATORS OF INFRASTRUCTURAL DEVELOPMENTPercentage of villageelectrifiedSl.No. District growt1980- 2000-h81 01RateSurfaced roads per thousandSq. Km. of area1980-81 2000-01growthRateNumber of motor vehicles perlakh of population1980-81 2000-01growthrateNumber of post offices perlakh of population1980-81 2000-01growthrate1 Balasore 58.12 85.35 3.3 115 128.79 -0.75 150 721 15.21 34 29 -1.572 Bolangir 46.12 80.3 4.88 97 81.34 -2.6 229 856 12.87 22 22 -0.813 Cuttack 70.39 96.55 2.69 135 160.28 1.3 655 1912 9.82 23 21 -1.054 Dhenkanal 43.66 79.59 5.47 107 76.8 -2.79 246 1146 13.99 27 24 -1.225 Ganjam 49.25 80.36 4.51 158 131.88 -2.44 326 1263 12.63 29 25 -1.556 Kalahandi 19.67 56.21 9.27 61 65.27 -2.42 191 630 12.39 25 25 0.047 Keonjhar 38.04 80.26 6.66 111 77.82 -2.87 440 1241 9.14 33 32 -0.588 Koraput 23.02 46.08 6.26 53 56.34 -0.45 226 774 11.94 23 23 -0.299 Mayurbhanj 34.7 63.63 5.17 102 83.27 -4.19 208 9513 23.36 40 36 -0.6210 Phulbani 15.06 42.83 8.86 82 73.07 -1.88 131 485 11.3 46 37 -1.8311 Puri 66.37 96.72 3.48 123 155.85 0.56 498 2571 15.56 25 21 -1.612 Sambal 50.12 79.76 4.18 98 75.57 -2.42 595 1490 8.68 21 24 0.05

119www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780pur13 Sundargarh 56.22 87.73 3.95 130 77.92 -6.69 1712 5488 11.07 25 25 -0.6414 Orissa 45.01 74.64 4.45 100 90.53 -1.98 447 1557 11.69 27 25 -0.79Source: Indicators of Economic Development of Orissa, 1970-71 to 2000-01The indicators of infrastructure development considered for examination are percentage of village electrified, surfaced roadsper 000 sq.km of area, no. of motor vehicles per lakh of population, no. of post offices per lakh of population. The indicators alongwith growth rates during the period 1980-81 and 1992-93 are presented in Table 3.In case of % villages electrified one finds the Stateaverage in 1980-81 is 45.01%. In the year 2000-01 State average is 76.64 However, in terms of growth over time Kalahandi recordedhigher growth rate followed by Phulbani, Keonjhar, Koraput, which are higher than the State average of 4.45% during the period.Secondly, the state recorded surfaced roads per thousand sq. km. of area of 100 in the year 1980-81 In the year 2000-01 the districtsCuttack, Puri, Ganjam, Balasore witnessed higher than the state average level which is at 90.53. While the state registered a growthrate of –1.98%, the highest negative growth rate of 6.69% is exhibited by Sundargarh. Koraput and Puri are showing no significantchange over the period.The number of motor vehicles per lakh of population in the State in 1980-81 is 447. Sundargarh is placed at the top followedby Cuttack, Sambalpur and Puri. In the year 2000-01 the districts Mayurbhanj, Sundargarh, Puri, Cuttack have higher than theaverage level while the districts Phulbani, Kalahandi, Bolangir at lower level thus showing the same trend over the decade. Orissashows a growth rate of11.69%. Mayurbhanj shows the highest growth rate of 23.36% followed by Puri, Balasore and Dhenkanal.Similarly in case of number of post offices per lakh of population one finds State average level is of 27 in the year 1980-81. In theyear 2000-01 we see the same trend as in 1980-81. In case of this indicator the state recorded a negative growth rate of –0.79%. InOrissa Infrastructure facilities are well available in Sundargarh district followed by Cuttack, Puri, Ganjam districts. Koraput,Bolangir, Kalahandi in 1980-81 are most backward in this field. The regions that are found developed or backward in 1980-81 alsoremained in the same position in 2000-01.

120www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Sl.No.DistrictTABLE –4: INDICATORS OF HUMAN RESOURCE DEVELOPMENTPercentage of school going children inthe age group 6-14years1980-81 2000-01GrowthRatePercentage of maleliteracy1980-812000-01growthratePercentage offemale literacy1980-812000-01growthrateNo of hospital beds per lakhof population1980-81 2000-01growthrate1 Balasore 78.92 96.91 1.91 55.58 72.55 2.22 28.3 44.57 3.81 20 24 1.422 Bolangir 57.43 81.53 3.09 39.84 57.26 3.03 11.28 21.88 5.61 30 35 2.413 Cuttack 75.67 94.49 1.94 58.12 75.74 2.2 32.38 50.38 3.71 56 46 -0.874 Dhenkanal 65.23 84.94 2.38 51.61 68.23 2.32 21.58 35.34 4.19 34 33 0.1255 Ganjam 59.33 74.65 2.12 45.93 60.77 2.33 17.05 28.09 4.2 64 57 -0.296 Kalahandi 49.45 70.85 3.7 31.23 45.54 3.15 7.73 14.56 5.35 44 39 0.657 Keonjhar 63.06 90.24 3.06 43.06 59.04 2.63 17.21 30.01 4.68 43 37 0.988 Koraput 50.52 64.21 2.19 23.68 32.15 2.55 8.56 13 3.5 41 34 0.089 Mayurbhanj 57.01 76.37 2.58 37.48 51.84 2.7 13.85 23.68 4.51 40 39 0.1710 Phulbani 60.69 81.76 2.63 42.62 56.92 2.41 11.45 20.26 4.81 63 51 -0.8411 Puri 71.9 83.25 1.54 59.26 76.82 2.16 31.17 49.94 3.96 50 45 0.31812 Sambalpur 63.19 78.63 2.1 47.71 64.64 2.53 19.56 33.55 4.54 80 62 -1.2413 Sundargarh 71.78 94.81 2.44 47.33 65.41 2.7 24.19 39.6 4.14 110 139 -4.2414 Orissa 65.01 83.14 2.34 47.1 63.09 2.43 21.12 34.68 4.17 52 43 -0.61Source: Indicators of Economic Development of Orissa, 1970-71 to 2000-01The human resource development indicators used for growth analysis have been percentage of school going children in the age group6-14 yrs, % of male literacy, % of female literacy and no. of hospital beds per lakh of population. The indicators are presented inTable-4. Firstly, we take into account the percentage of school going children in the age group 6-14 years. In the time period 1980-81the districts Balasore, Cuttack,Puri, Sundargarh and Dhenkanal have higher level than the State average level of 65.01. In the secondperiod 2000-01 the districts having higher positions are Balasore, Cuttack, Sundargarh and the districts in lower positions are Koraput,

www.zenithresearch.org.in121ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Kalahandi and Mayurbhanj. Secondly, we take percentage of male literacy. In the year 1980-81 State average is 47.1%. Thirdly, wecan see the percentage of female literacy, which is 21.12% in the year 1980-81 at all Orissa level. In the year 2000-01 we see exactlythe same position of districts. All the districts have the growth rate around 4 to 5 percent. The number of hospital beds per lakh ofpopulation in the state is found to be 52 in the period 1980-81Over the period 1980-81 to2000-01the State registered a growth rate of –0.61%. All the districts registered low positive growth or negative growth excepting Bolangir and Balasore. Thus one broadly findsthat there is continuation of unevenness as the districts which are backward continue to be backward over the period of time. In 1980-81 Sundargarh, Cuttack, Puri, Sambalpur have their indices on human resource higher than the state average while Mayurbhanj,Kalahandi, Bolangir are the bottom position. The same positions of the district are also seen after ten years 1992-93.SECTION-IIIn this section an attempt has been made to use the Sudarsan Iyangar method to consider the ranks of the districts to observe the interdistricts variation. We can analyse the position of districts in different sectors & in overall by ranking the districts in three points oftime 1980-81, 1990-91 and after division of districts in 2000-01.Further, a Beta Distribution has been fitted to classify the districts intofour categories viz., Developed, Developing, Backward, Very Backward on the basis of value of Beta Variate as follows.Category Level of Development Value of Beta distribution1 Very Backward 0 to 0.252 Backward 0.25 to 0.503 Developing 0.50 to 0.754 Developed 0.75 to 1.005. OVERALL DEVELOPMENTTable-5 presents the composite for different sectors and composite index for development and the respective -variate values inthe year 1980-81 for different districts. In terms of overall development the most Developed districts are Sundargarh, Cuttack andSambalpur. The Developing districts are Puri, Ganjam, Balasore and Phulbani. The Backward districts are Bolangir and Mayurbhanj.The Very Backward districts are Kalahandi, Koraput, Dhenkanal and Keonjhar.

www.zenithresearch.org.in122ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE –5: COMPOSITE INDICES AND -VARIATE FOR DIFFERENT SECTOR (1980-81)INFRASTRUCT HUMAN RESOURCE OVERALLSl. AGRICULTURE INDUSTRYDISTRICUREDEVELOPMENT DEVELOPMENTNTSo.INDE RAN INDE RAN INDE RANRANKINDE RANKX K DIST. X K DIST. X K DIST. INDEXDIST. XDIST.1 0.353 7 0.5009 9 0.6463 0.257 5 0.556646Balasore 6 75 0.031 34 4 46 0.45450.783436 0.3029 0.5755852 0.414 5 0.6102 0.033 8 0.6519 0.133 11 0.208298Bolangir 1 64 6 47 8 34 0.25370.26549 0.2166 0.291763 0.627 2 0.8926 0.105 4 0.7381 0.298 3 0.658322Cuttack 2 76 7 8 7 37 0.54290.914066 0.4155 0.8522914 Dhenkana 0.234 10 0.2736 0.023 11 0.6279 0.234 7 0.49461111l 1 36 7 93 4 84 0.20890.159399 0.1922 0.2171035 0.674 1 0.9295 6 0.6774 0.235 8 0.497775Ganjam 9 27 0.048 63 5 19 0.33240.483313 0.3315 0.6611766 0.343 8 0.4812 0.009 12 0.5676 0.054 13 0.03731313Kalahandi 1 43 2 1 9 82 0.14890.058301 0.1404 0.0900587 0.079 13 0.0404 0.036 7 0.6581 0.252 6 0.5442810Keonjhar 5 51 7 6 7 57 0.30490.405532 0.1954 0.2264788 0.196 11 0.2060 0.098 5 0.7323 0.095 12 0.11191212Koraput 7 79 3 24 2 23 0.1990.139135 0.1505 0.1106549 Mayurbha 9 0.3034 0.024 10 0.6293 0.228 9 0.4794109nj 0.25 14 2 99 9 16 0.24350.23954 0.2046 0.25416310 0.391 6 0.5702 13 0.193 10 0.378937Phulbani 4 9 0 0 7 03 0.49990.860438 0.301 0.56961611 0.551 4 0.8142 0.152 3 0.7685 0.273 4 0.597354Puri 7 52 1 14 3 88 0.410.687618 0.3576 0.73091512 Sambalpu 0.594 3 0.8621 0.196 2 0.7909 2 0.910163r 9 84 4 16 0.458 38 0.33310.485283 0.4065 0.836506

www.zenithresearch.org.in123ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578013 Sundargarh0.09752 0.059304 1110.59951 0.984451 0.585310.950594 0.5497 0.978536Table-6 presents the indices for different sector and different districts during the year 1990-91. It is observed from the tablethat in term of Overall Development the Developed districts are Cuttack, Puri and Sundargarh. The Developing districts are Balasore,Ganjam, and Sambalpur. The Backward districts are Keonjhar, Dhenkanal, Mayurbhanj and Phulbani and the Very Backwarddistricts are Kalahandi, Koraput and Bolangir. Thus during the period 1980-81 to 1990-91 one observes upward mobility of Puri anddownward mobility of Sambalpur and Phulbani. Similarly one who observes upward mobility of Dhenkanal and Keonjhar anddownward mobility of Bolangir. The districts who have not shown any change are Kalahandi, Koraput in the Very Backward group.TABLE –6: COMPOSITE INDICES AND -VARIATE FOR DIFFERENT SECTOR (1990-91)INFRASTRUCT HUMAN RESOURCE OVERALLSl. AGRICULTURE INDUSTRYDISTRICUREDEVELOPMENT DEVELOPMENTNTSo.INDE RAN INDE RAN INDE RANINDEX RANK DIST. INDEX RAN DIST.X K DIST. X K DIST. X K DIST.K1 0.492 5 0.6847 0.062 9 0.5299 0.424 4 0.69043Balasore 9 27 8 45 9 16 0.44090.804605 0.3915 5 0.71910126 0.6491 10 0.5156 0.179 11 0.12568Bolangir 0.475 62 0.056 26 9 41 0.28760.295379 0.2686 11 0.23423533 0.7701 0.089 7 0.5770 3 0.81791Cuttack 0.54 06 7 16 0.495 26 0.55930.970366 0.4672 2 0.9081894 Dhenkana 0.244 10 0.1650 0.316 2 0.7772 0.385 6 0.603713l 4 4 3 28 6 85 0.21580.098747 0.2808 10 0.2787265 0.624 2 0.8879 0.051 11 0.5049 0.403 5 0.643511Ganjam 7 35 3 3 1 11 0.26350.218035 0.3506 6 0.5648926 0.229 12 0.1411 0.026 12 0.4322 0.129 13 0.053712Kalahandi 7 51 8 28 9 01 0.22510.117966 0.1701 13 0.0238447 0.241 11 0.1600 0.095 6 0.5861 0.360 8 0.54395Keonjhar 4 26 8 35 4 15 0.37650.614642 0.2984 8 0.347734

124www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57808 0.374Koraput 89 Mayurbha 0.322nj 610 0.331Phulbani 211 0.535Puri 512 Sambalpu 0.750r 513 Sundargarh 0.2087 0.431101 0.1429 0.3162 0.06481 88 0.3347 0.01444 74 0.7625 0.22316 41 0.9774 0.19022 93 0.109157 15 0.6436 0.13541 48 0.5339 0.3093 813 0.3742 0.22961 63 0.7164 0.52923 94 0.690352 0.36411 0.64912 0.060071 0.27329 0.417998 0.332210 0.224579 0.52132 0.866901 0.35097 0.552632 0.27591 0.966742 0.422310726940.248034 0.2419 12 0.1496320.455327 0.2837 9 0.2897450.939943 0.3262 7 0.4633220.523942 0.4181 3 0.801160.25667 0.3956 4 0.7328120.756822 0.5178 1 0.966098Table-7 presents the classification of districts on the basis of divided thirty districts in the year 2000-01. It is noticed that in theDeveloped group the distgricts are Balasore, Cuttack, Jharsuguda, Keonjhar, Puri, Sambalpur and Sundargarh. The Developingdistricts are Angul, Khadrak, Ganjam, Jharsuguda, Jaipur, Kandhamal(Phulbani), Nayagarh, and Puri. The Backward districts areBaragarh, Dhenkanal, Gajapati, Kedrapara, Khurda, Koraput and Nawarangpur. The Very Backward districts are Bolangir, Boudh,Deogarh, Kalahandi, Malkangiri, Mayurbhanj, Nawarangpur and Rayagada.

www.zenithresearch.org.in125ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE –7: COMPOSITE INDICES AND -VARIATE FOR DIFFERENT SECTOR (2000-01)INFRASTRUCT HUMAN RESOURCE OVERALLSl. AGRICULTURE INDUSTRYDISTRICUREDEVELOPMENT DEVELOPMENTNTSo.INDE RAN INDE RAN INDE RANINDEINDEX RANK DIST. RANK DIST.X K DIST. X K DIST. X K DIST.X1 0.280 23 0.1786 0.591 3 0.9267 8 0.699428Angul 5 56 3 93 0.379 99 0.21440.098518 0.3322 14 0.5521332 0.300 22 0.2133 0.068 14 0.5717 0.257 22 0.357330Bolangir 3 62 9 33 1 3 0.17790.039598 0.2082 28 0.0761393 0.520 12 0.6802 0.134 9 0.6706 0.406 5 0.76064Balasore 9 96 7 21 2 3 0.43360.83773 0.3978 6 0.8069284 0.630 4 0.8623 0.114 13 0.6454 19 0.368827Bargarh 8 32 5 02 0.261 52 0.21940.109399 0.3017 19 0.4104955 0.8281 15 0.5462 0.359 11 0.650522Bhadrak 0.606 59 0.057 27 3 25 0.29130.334851 0.3399 12 0.586844619 0.3969 28 0.2857 0.218 23 0.248529Boudh 0.39 16 0.004 71 9 8 0.20320.076662 0.2159 27 0.0928367 0.694 3 0.9299 0.224 7 0.7549 0.517 4 0.92652Cuttack 2 7 6 51 2 54 0.55690.98312 0.5232 1 0.986825814 0.6254 0.001 29 0.2317 0.067 30 0.007419Deogarh 0.494 19 7 06 5 82 0.30570.391014 0.2336 25 0.1395399 Dhenkana 0.402 18 0.4236 0.127 12 0.6623 0.268 18 0.391714l1 87 8 72 7 12 0.33620.512885 0.2992 20 0.39891610 0.434 17 0.4959 0.000 30 0.287 17 0.44896Gajapati 5 19 7 0.1864 9 48 0.39990.742448 0.3143 16 0.46925311 0.559 8 0.7524 0.040 18 0.5029 0.361 10 0.655921Ganjam 3 59 5 09 4 2 0.29730.358019 0.33 15 0.5420812 Jagatsingh 0.529 11 0.6977 0.133 10 0.6688 0.380 7 0.70308pur 8 25 2 57 5 73 0.38010.677817 0.3733 8 0.724415

126www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578013Jaipur14 Jharsuguda15Kalahandi16 Kandhamal17 Kendrapara18Keonjhar19Khurda20Koraput21 Malkangiri22 Mayurbhanj23Nuapara24 Nawarangpur25Nayagarh26Puri27Rayagada0.49910.44830.33440.54520.26860.57140.35330.55590.23420.20080.26160.48630.15270.72110.238613 0.6360 0.04954 616 0.5265 0.60278 321 0.2788 0.0239 610 0.7269 0.00708 924 0.1591 0.13248 96 0.7734 0.2543 820 0.3177 0.35277 89 0.7464 0.01705 327 0.1090 0.04516 829 0.0698 0.01875 325 0.1481 0.01876 215 0.6091 0.02083 530 0.0303 0.00783 42 0.9504 0.00117 126 0.1148 0.32486 116 0.528195 0.3722 0.9299 0.51869 620 0.4410 0.19051 526 0.3375 0.33995 711 0.668502 0.3836 0.7768 0.64905 34 0.8345 0.19973 924 0.4088 0.12988 917 0.5181 0.31812 522 0.4145 0.17034 523 0.4139 0.1448 621 0.4261 0.26072 927 0.3322 0.31836 225 0.2082 0.32748 95 0.8193 0.2056 39 0.682525 0.39943 0.92785 0.314926 0.176067 0.286213 0.598361 0.36656 0.708978 0.33681 0.99099 0.297525 0.199021 0.280429 0.060512 0.359516 0.538776 0.327527 0.131317 0.220828 0.082828 0.237920 0.368556 0.376915 0.537913 0.609114 0.565546 0.423224 0.212701 0.3438718231013202411162625915120.740911 0.3582 9 0.6653150.427654 0.4435 4 0.9135930.31549 0.2293 26 0.1271230.629373 0.3409 11 0.591290.515269 0.3027 18 0.4151320.358798 0.4442 3 0.9147760.293905 0.2856 21 0.3370910.603357 0.2855 22 0.3366460.478156 0.2602 24 0.2307890.112571 0.1711 30 0.0235570.155663 0.1832 29 0.0360950.666891 0.3128 17 0.4622430.99567 0.3387 13 0.5814890.808201 0.3961 7 0.8017750.542911 0.2809 23 0.316354

127www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578028 Sambalpur29Sonepur30 Sundargarh0.56830.75430.20427 0.7681 0.17044 311 0.9695 0.03272 428 0.073417 18 0.7083 0.34599 719 0.4764 0.25902 91 0.5731 712 0.614661 0.489721 0.365598 0.31821 0.966554 0.3301317150.932246 0.4173 5 0.8598290.44087 0.3507 10 0.6339510.488562 0.4744 2 0.955034

127www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780OVERALL DEVELOPMENT1980-81 1990-91 2000-01VerybackwardDhenkanal,Kalahandi,Kenojhar, Koraput,Kalahandi,Koraput,BolangirBolangir, Boudh, Deogarh,Kalahandi, Malkangiri, Mayurbhanj,Nuapara,BackwardBolangir,MayurbhanjKeonjhar,Dhenkanal,Mayurbhanj,PhulbaniBaragarh,Dhenkanal,Gajapati,Kendrapara,Khurda,Koraput,Nawarangpur, RayagadaDevelopingBalasore,Ganjam,Balasore, Ganjam,Angul,Bhadrak,Ganjam,Phulbani,PuriSambalpurJagatsingpur,Jaipur,Kandhamal,Nayagarh, SonepDevelopedCuttack, Sambalpur,SundargarhCuttack, Puri,SundargarhBalasore,Cuttack,Jharsuguda,Keonjhar,Puri,Sambalpur,Sundargarh6. SUMMARY & CONCLUSIONThe unevenness in development profile of the State can be analysed through differentsectors. Taking all the indicators it is visualized that there is unevenness among the districts inagriculture. The districts of Ganjam, Puri, Sambalpur, Cuttack & Balasore were the relativelydeveloped district in the field of agriculture in 1980-81. These districts attained a higher level ofagricultural development than that of state average while, Dhenkanal, Keonjhar, Sundargarh,Kalahandi witnessed least agricultural growth.In case of Industrial sector one also noticesunevenness in the development profile of different districts. In the year 1980-81 Sundargarh,Puri, Sambalpur and Dhenkanal are the industrially developed districts, while Phulbani,Kalahandi, Mayurbhanj and Bolangir are the backward districts in this field. In the year 1992-93

128www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780we also find there is no change in regional pattern i.e. the districts, which are developed in 1980,are also developed in 1992-93.The variation in Infrastructural development in the state can be visualized with relativelyhigher level of development in Sundargarh district followed by Cuttack, Puri, Ganjam districts.Koraput, Bolangir, Kalahandi in 1980-81 are most backward in this field. The regions that arefound developed or backward in 1980-81 also remained in the same position in 1992-93. Onealso finds that there is continuation of unevenness in the sphere of human resource developmentas the districts which are backward continue to be backward over the period of time. In 1980-81Sundargarh, Cuttack, Puri, Sambalpur have their indices on human resource higher than the stateaverage while Mayurbhanj, Kalahandi, Bolangir are the bottom position. The same positions ofthe district are also seen after ten years 1992-93.The present study clearly shows that owing to general backwardness of the majority ofdistricts Orissa continues to remain one of the most backward states in the country. Since thebeginning of fourth five year plan although the country has put more emphasis on balanceddevelopment of regions, the level of inter-district disparity in development among 13 districts ofOrissa has not shown any marked decline. For this we have to adopt necessary steps to improvethe level of backwardness. The backward regions, to be attractive to the private investor have toimprove their infrastructural facilities both economic and social. This also needs substantialpublic investments. The State Govt. in the backward regions are however strapped off fundseven to meet the current expenditure. For development we have to first examine and identifybackward areas, then with the new schemes we have to review the working of existing schemeswith concessional finance, investment, subsidy etc. which are to be done both by the central andstate governments. Financial discipline should be imposed on states to ensure that funds meantfor backward areas are not diverted to any other area and projects & spent properly within thestipulated period on projects that are ear-marked. Incentives are to be given to backward areas interms of employment, health, education. The state Government should empower the StateFinance Commission to make assessment of the requirement of different regions anddevelopment grants to be extended to very backward regions and backward regions to such anextent that it achieves the objective of reduction of disparities within a reasonable span of time.REFERENCES1. Bhattacharya B. B. & Sakthivel S. (2004): “Regional Growth and Disparity in India:Comparison of Pre- & Post- Reform Decades”, Economic and Political Weekly, March 62. Bhide Shashank, Kalirajan K. P., Shand R. T. (1998): “India‟s Agricultural Dynamics; WeakLink in Development” Economic and Political Weekly, Vol XXXIII No 39, September 263. Deaton Angus, Dreze Jean (2002): “Poverty and Inequality in India: A Re-Examination”,Economic and Political Weekly, Vol XXXVII No 36, September 74. Dev S. Mahendra: “Post Reform Regional Variation”

129www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805. Dholkia H. Ravindra (2003): “Regional Disparity in Economic & Human Development inIndia”, Economic and Political Weekly, September 276. Dholkia H. Ravindra (1994): “Spatial Dimension of Acceleration of Economic Growth inIndia”, Economic and Political Weekly, August27, Vol XXIX No 357. Ghosh Buddhadev, Marjit Sugata, Neogi Chiranjib (1998): “Economic Growth & RegionalDivergence in India, 1960 to 1995”, Economic and Political Weekly, June 278. Ghosh Buddhadev, De Prabir (1998): “Role of Infrastructure in Regional Development”Economic and Political Weekly, November 21, Vol XXXIII No 47 & 489. Godbole Madhav (1997): “Regional Imbalance & Tribal Areas in Maharashtra” Economic andPolitical Weekly, October 1810. Indicators of Economic Development of Orissa, 1980-81 to 1983-84 (1988), State PlanningMachinery, Planning & Co-ordination Dept. of Orissa11. Indicators of Economic Development of Orissa, 1984-85 to 1986-87 (1993), State PlanningMachinery, Planning & Co-ordination Dept. of Orissa12. Indicators of Economic Development of Orissa, 1987-88 to 1992-93 (1998), State PlanningMachinery, Planning & Co-ordination Dept. of Orissa13. Joshi Navin Chandra (2004): “Towards Balanced Regional Development”, Third Concept,February14. Kurian N. J.: “Regional Disparities in India”15. Kurian N. J.: “Growing Interstate Disparities”16. Kurian N. J. (2000): “Widening Regional Disparities in India: Some Indicators”, Economicand Political Weekly, February 1217. Mahanty Ghanashyam: “Andra Pradesh: A District-wise Analysis”18. Mathur M. V.: “Regional Inequalities in India- An Interstate and Intrastate Analysis”

130www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578019. Meher Rajkishore (1996): “Inter District Disparities in Orissa in Development, Investment &Performance” Nabakrushna Choudhury Centre for Development Studies, BBSR20. Report of the Committee on the Constitution of Separate Development Board in Orissa,Planning and Co-ordination Department, Govt. of Orissa21. Sarkar P. C. (1994): “Regional Imbalances in Indian Economy over Plan Periods” Economicand Political Weekly, March 1222. Shand Ric & Bhide S. (2003) : “Sources of Economic Growth- Regional Dimensions ofReforms” Economic and Political Weekly, October 1423. Tripathy P. K. & Nath Nibedita: “Political Economy of Uneven Development: SomeReflections”

131www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780AN EMPIRICAL STUDY ON FACTORS INFLUENCING E- BANKINGSERVICES: WITH SPECIAL REFFRENCE TO ICICI BANK INGOBICHETTIPALAYAM TOWNABSTRACTDR. K.KRISHNAKUMAR*; V.SELVAM***Assistant Professor, Department of Commerce,Periyar University, Salem-11, Tamil Nadu.**Ph.D Research Scholar, Department of Commerce,Periyar University, Salem-11, Tamil Nadu.This study was examined “an empirical study on factors influencing about e- bankingservices: with special reference to ICICI bank in Gobichettipalayam town”. The mainobjective of this study identity the factors which are influencing the customers’ to openaccount with ICICI Bank and the problems faced by the customers’ while using E-banking.The data collected from the primary source were analysed with the help of various statisticalmeasures such as simple Ranking and garret analysis were used. The use of all thesetechniques at different places is made in the light of data available and requirements ofanalysis.KEYWORDS: ATM, Debit Card, E-Banking, Internet Banking, Mobile Banking.INTRODUCTIONIn the present scenario, most of the business organizations are using the internet for a varietyof communication tasks, such as promotion of consumer awareness and interest, providinginformation and consultation, facilitating two-way communications with customers throughe-mail, stimulating product trial and enabling customers to place orders. In order to avail thebenefits that are accrued through using Internet, financial institutions like banks aretransforming themselves and conducting their business electronically. This transformationfrom normal banking to electronic banking enabled customers to transact online, while savingon various factors.E-COMMERCE AND E-BANKINGE-Commerce and E-banking are the buzzwords in the global commercial activitiestoday E-banking or electronic banking refers to conducting banking activities with the help ofinformation technology and computers.Computerization of banking function in Indian was resisted by labours unions for fearof loss of job opportunities, secondly computerization needs IT Savvy personal which requireintensive technical training. Thirdly computerization needs heavy capital for purchase ofmachines. Forthly, to have effective computerization of banks a huge number of bankbranches situated in rural areas need to be connected. Telecommunication facility at ruralareas is slow of reach. For the reasons mentions above, computerization made a slow entry inIndian banks.

132www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780STATEMENT OF PROBLEMNow-a-days, the commercial banks are providing various innovative services to theircustomers in order to attract them and retain the market share. Among the various innovativeservices offered by commercial banks to their customers, E-banking facility is very attractiveand innovative service offered by commercial banks. E-banking reduces the customerswaiting time and convenience in operation.Now-a-days, the users are more dynamic. Their taste, needs and preferences arechanging as per the current scenario. The customers taste, needs are not same. It differs fromone person to another person.This study is, therefore undertaken to find out the following questions.1) What are the factors which are influencing the customers’ to open accountwith ICICI Bank?2) What are the problems faced by the customers’ while using E-banking?REVIEW OF LITERATUREHasanbanu and Jeya shree (2003) 1 , conducted “A comparative study on factorsinfluencing housing loan Borrowers of public and private sector banks in UthamapalayamTaluk” with the objective of study the various factors which influence the people who takehousing loans for availing of such loans from public sector banks. It was found out that thereis vital scope for housing promotion in India. Banks can play a vital role in promoting housebuilding in villages. Banks need to introduce more dynamic and innovative housing loanschemes and also need to focus on mass customization versus mass market.Premkumar and Esthen gnanapoo(2008) 2 , “E-Banking the essential need of today” itwas found out that the current trends are quite comforting for customer- but it does posethreats and problems to banks. As we find information technology invading the bankingsector, only banks, which used the right technology, could come out with success. Banks arerequired to 'restructure', re-invent and re-engineer themselves to meet the necessaryperformance improvement and get the competitive edge due to the introduction ofinformation technology. E-Banking being an important output of information technology, ithas ushered in an era which is transforming the entire functioning of banks. The tilt in thebanks from traditional to modern E-banking service has been welcomed due its advantages,but banks in India are taking time to get rooted. Banks are slow but are going to offer infurther more E-banking services to keep pace with the evolving pattern of customers'demand.1 Hasanbanu and Jeya shree, “A comparative study on factors influencing housing loan Borrowers ofpublic and private sector banks in Uthamapalayam Taluk” Indian Journal of Marketing, Augest.2003, Vol.xx,No.2-4, pp: 13-15.2 Premkumar.N B and Esther Gnanapoo.J “E-Banking the essential need of today” Kisan World,March2008,Vol.35,No.3, PP:17-19.

133www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780OBJECTIVES OF THE STUDYThe main objectives of the present study are:1) To identity the factors which are influencing the customers’ to open accountwith ICICI Bank.2) To study the problems faced by the customers’ while using E-banking.3) To give your valuable suggestions to improve awareness and satisfactionabout E- banking services.METHODOLOGY AND TECHNIQUES OF ANALYSISThe study is intended to cover factors influencing about E- banking facility providedby ICICI bank in Gobichettipalayam town. Data for this investigation were collected fromprimary as well as secondary sources. The list of respondents was obtained from the ICICIbank. Due to time constraint and owing to non-response from the sample respondents,purposive sampling technique was used to select 100 sample respondents from that obtainedlist. The data was collected during the months between September to November, 2010.The data collected from the primary source were analysed with the help ofvarious statistical measures such as simple and Garrett ranking analysis were used. The useof all these techniques at different places is made in the light of data available andrequirements of analysis.FACTORS INFLUENCING THE CUSTOMERS TO OPERATE ACCOUNTWITH ICICI BANK; SIMPLE RANKING ANALYSISWe are now aware of the nature of banking business. Banking practically a serviceoriented activity. The service is influenced by the many factors. Further it is necessary toconsider various factors which will influence the customers to select their E-banking services.For analyzing this the factors which are considered are ATM, D-Mat Account, Electronicfund transfer, Credit/Debit cards, Shared Payment Network System, Point of Sale Purchase,Corporate Banking Terminal, E-Cheques, Phone Banking and Tele Banking.The following table exhibits that the factors influencing the Respondents to operateaccount with ICICI bank: ranking analysis

134www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE - 1FACTORS INFLUENCING THE CUSTOMERS TO OPERATE ACCOUNT WITH ICICI BANK: SIMPLE RANKING ANALYSISS.No Factors I II III IV V VI VII VIII XI XTotalscoreOrders ofimportance1 ATM 19 18 11 12 12 8 6 4 4 6 686 I2. D-Mat account 10 12 18 16 11 12 7 5 7 2 659 II3. Electronic fund transfer 12 9 16 13 13 11 8 9 4 5 625 III4. Credit /debit cards 4 9 8 10 13 11 10 11 12 12 497 VIII5. Shared Payment Network System 5 4 9 4 7 16 13 11 17 14 441 X6. Point of Sale Purchase 12 6 8 7 11 10 9 16 12 9 520 VI7. Corporate Banking Terminal 7 10 6 12 9 7 14 10 13 12 505 VII8. E-Cheques 12 5 7 6 7 11 8 12 14 18 474 XI9. Phone Banking 14 14 6 10 9 3 16 10 8 10 573 IV10. Tele banking 5 13 11 10 8 11 9 12 9 12 530 VSource: Primary Data

www.zenithresearch.org.in135ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FACTORS INFLUENCING THE CUSTOMERS TO OPERATEWITH ICICI BANK : GARRETT RANKING ANALYSISACCOUNTPercent Position =100 ( Rij 0. 5)Where Rij= Rank given for the ith factor by the jth respondents.Nj= Number of factors ranked by Jth respondents.NjBy referring the Garrett table the per cent position is converted into scores.Then for each factor, the scores of each individual are added and then mean value iscalculated. The factors having highest mean value is considered to be the mostimportant.Scale value as per Garrett ranking technique for first to ten ranks is as: 81, 70,63, 57, 52, 47, 42, 36, 29, and 19 respectively. The percentage position of each rank ismade into score by referring factors is summed up for assigning rank.The following table exhibits that the factors influencing the Respondents tooperate account with ICICI bank: Garrett ranking analysis.

136www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE - 2FACTORS INFLUENCING THE CUSTOMERS TO OPERATE ACCOUNT WITH ICICI BANK:GARRETT RANKING ANALYSISSCALE AND SCORE VALUE OF RANKSS.NoFactorsRanks I II III IV V VI VII VIII XI XScalevalue(x)81 70 63 57 52 47 42 36 29 18TotalscoreOrders ofimportance1ATMffx191539181260116931268412624837662524144411661085796 I2.D-Mat accountffx10810128401811341691211572125647294518072032365545 II3.Electronic fund transferffx1297296301610081374113676115178336932441165905410 III4.Credit /debit cardsffx432496308504105701367611517104201139612348122164601 VIII5.Shared Payment NetworkSystemffx5405428095674228736416752135461139617493142524283 X6. Point of Sale Purchase f 12 6 8 7 11 10 9 16 12 9 4664 VI

137www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780fx 972 420 567 399 572 470 378 376 348 1627.Corporate Banking Terminalffx75671070063781268494687329145881036013377122164667 VII8.E-Chequesffx1297253507441636873641151783361243214406183244520 IX9.Phone Bankingffx141134149806378105709468314116672103608232101805115 IV10.Tele bankingffx54051391011693105708416115179378124329261122164798 VTotal 100 100 100 100 100 100 100 100 100 100Source: primary data note: x=scale value, f = no.of respondents fx = score value.The table shows that the problems faced by the customers while using E-banking services: Garrett Ranking Analysis.

138www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Factors1.2.3.4.5.6.7.8.TABLE - 3PROBLEMS FACED BY THE RESPONDENTS WHILE USING E-BANKING: GARRETT RANKING TECHNIQUESCALE AND SCORE VALUE OF RANKSRanks I II III IV V VI VII VIII IX X XI XII XIII XIVscalevalue(x)ffxffxffxffxffxffxffxffx84 74 69 63 59 55 51 48 44 40 36 31 25 1512100875881310922168005420758817142811814107401410361396232225370966664441175913897748313897106904276320742761275613819106307441106303189637885045295127081164963541270863546354635411605126605275116058440116055275633094592102735763067357136638408735762887336838473368384115287336628831322888352114841044052201148452201409360416052001560093604160832062165180518072526216518062164144393262131103103938248103106186250375410025041001332592257175812024534500460230913510150Total100100100100100100100100

139www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57809.ffx1411768592641421267413527511561733683526240518061867175812010010.ffx7588751853455315953173858408633673088320621616496615034510011.ffx54201748552637821185275525529610440135201864872179225913510012. ffx75883222427653152118211063066288939610400134688248112751421010013.ffx21684296641442529531633031531362441765200725212372143501116510014.ffx216864446414956774136330840862887308312072528248922516240100Source: primary data Note: x = scale value , f = No. of respondents, fx= score value.

140www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE - 4PROBLEMS FACED BY THE RESPONDENTS WHILE USINGE-BANKING: GARRETT RANKING ANALYSISS.NOPROBLEMSTOTALSCOREMEANSCORERANK1 Limit on ATM withdrawals 3635 36.35 III2.High service charge fordebit/credit card4660 46.60 II3. Huge minimum balance 5774 57.74 I4.5.High charges for inter banktransactionsCharge for using other bankATM’s5365 53.65 IV4940 49.40 VII6. Difficulty for illiterates to access 4718 47.18 X7.8.Requirement of technicalknowledgeCharge for inter branch fundtransfer4742 47.42 IX5176 51.76 V9. Misuse of credit /debit card 5146 51.46 VI10 High interest for credit card dues 4913 49.13 VIII11 Lack of point scale purchase 4353 43.53 XI12 Difficulty use phone banking 4220 42.20 XIV13High retails charge for D-Matoperations4233 42.33 XII14 Formalities in getting credit cards 4225 42.25 XIII

141www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE - 5PROBLEMS FACED BY THE RESPONDENTS WHILE USING E-BANKING:SIMPLE RANKING TECHNIQUESCALE AND SCORE VALUE OF RANKSRANKS I II III IV V VI VII VIII IX X XI XII XIII XIV TOTALScaleValue(x)1413 12 11 10 9 8 7 6 5 4 3 2 11 f1211111251196316328100fx16814313213250997242185246482 f7101313121227295232100fx9813015614312010816491245206623 f131471011578845143100fx182182841101104556564820203834 f2131376116711571020100fx2816915677609948496625283040

142www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805 f0310101287810156344100fx0391201101207256566075249846 f554361113115958132100fx70654833609910477304520242627 f7936658711461099100fx98117366660456449662024301898 f1764866765846710100fx238784888605456423040161814109 f1486275117865678100fx1961047222704588494830201814810 f775597867861663100fx98816055906364424240244812311 f51862552101318799100fx701396662045401460651122118912 f 7 3 4 5 2 2 6 6 9 10 13 8 11 14 100

143www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780fx 98 39 48 55 20 18 48 42 54 50 52 24 22 1413 f246496313457121411100fx285272449054249124252836281114 F 2 6 6 9 7 6 8 6 7 3 7 8 9 16 100Fx 28 78 72 99 70 54 64 42 42 15 28 24 18 16Source: primary data Note: x = scale value , f = N o. of respondents, fx= score value.

144www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE - 6PROBLEMS FACED BY THE RESPONDENTS WHILE USINGE- BANKING: SIMPLE RANKING ANALYSISS.NOPROBLEMSTOTALSCOREMEANSCORERANE1 Limit ATM withdrawals 903 90.3 III2.High service charge for debit/creditcard911 91.1 II3. Huge minimum balance 927 92.7 I4.High charges for inter banktransactions839 83.9 IV5. Charge for using other bank ATM’s 753 75.3 VII6. Difficulting for illiterates to access 703 70.3 X7. Requirement of technical knowledge 702 70.2 IX8. Charge for inter branch fund transfer 792 79.2 V9. Misuse of credit /debit card 784 78.4 VI10 High interest for credit card dues 722 72.2 VIII11 Lack of point sale purchase 619 61.9 XI12 Difficulty to use phone banking 584 58.4 XIV13High retails charge for D-matoperations607 60.7 XII14 Formalities in getting credit cards 650 65.0 XIIIFINDINGS It was found that according to simple ranking analyses is Huge minimumbalance is an important problem faced by the customers while using E-banking services.It was found that ATM is an important factor which influenced therespondents to operate account with ICICI bank.

www.zenithresearch.org.in145ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780SUGGESTIONSCONCLUSIONIn the case of ranking analysis shared payment system is ranked as last.Hence, bank may try to provide the same. By doing so, the satisfaction ofcustomers will be high.Most of the sample respondents ranked huge minimum balance as themost important problem. Hence bank may try to reduce the minimumbalance in order to improve the satisfaction of customers.The rapid diffusion Indian banking sector provides a platform to useinnovative technologies to enhance operational efficiency and quality of service toattain and retain customers. The rapid growth in use of ATMs in ICICI offersopportunities to banks to use customers’ passion for this innovative service forstrategic advantage. The banks should proactively monitor customers’ preferenceswith regard to use of this delivery channel for effective response. Bank should focuson important aspects of security and privacy as well as efficient operation of ATMs.Banks should also augment and diversify their offerings through ATM and use thismedium to build a strong and sustained relationship with customers.BIBLIOGRAPHYBOOKSJOURNAL1) Asdas & Barosa; “Banking sector Reforms- towards new face ofIndian Banking. The management Accountant. ICW AI WAY 2001.2) Godbole, Nina, “Legal Issues, in E.Business” informationTechnology” – “Efy Enterprises Pvt.Ltd” Jan 2002.3) Gupta S.P., Statistical Methods, New Delhi, Sultan Chand & SonsLtd., 1997.4) Kothari, C.R. “Research Methodology, Methods of techniques”,Wishva Prakashan, 1985.5) Sugan C. Jain, “E-Banking”, 2006.1. Hasanbanu and Jeya shree, “A comparative study on factorsinfluencing housing loan Borrowers of public and private sector banksin Uthamapalayam Taluk” Indian Journal of Marketing, Augest.2003,Vol.xx, No.2-4, pp: 13-15.2. Premkumar.N B and Esther Gnanapoo.J “E-Banking the essential needof today” Kisan World, March2008,Vol.35,No.3, PP:17-19.

146www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780WEBSITES1) http://www.banknetindia.com2) http://www.rbi.co.in3) http://www.indianbankassociation.org4) http://www.polaris.co.in5) tech quest 20036) IBA- Indian year Book 2001

www.zenithresearch.org.in147ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTMOBILE BANKING AS TECHNOLOGY ADOPTIONAND CHALLENGESARCHANA SHARMA**Institute of Technology and Science,Mohan Nagar, Ghaziabad.If technological revolution is at its peak, one of the notable sectors of the economy wheretechnology is at it helm of affairs with respect to customer service is BANKING. Over theyears, banking has transcended from a traditional brick-and mortar model of customersqueuing for services in the banks to modern day banking where banks can be reached at anypoint for their services. In today‟s business, technology has been on the predominantindicators of growth and competitiveness. The banking industry today is in the industry of itsrevolution. Information technology has basically been used under two different avenues inbanking. One is communication and connectivity and other is business process. Today, bankshave welcomed wireless and mobile technology into their boardroom to offer their customersthe freedom to pay bills, planning payments while stuck in traffic jams, to receive updates onthe various marketing efforts while present at a party to provide more personal and intimaterelationships. This paper examines consumer adoption of a new electronic payment service asmobile banking and the factors influencing the adoption of mobile banking in India.KEYWORDS: MPSP, Mobile Banking, Mobile Payments.INTRODUCTIONThis study plans to „plug‟ gap of research in the acceptance of mobile banking among theconsumers. The primary objective of this study are to :focus on the adoption of mobile banking services by consumersIdentify factors influencing the adoption and usage of mobile banking in India.The personal characteristics of mobile banking users were found to be important determinantsof their adoption decisions. This finding provides the financial services industry with a betterunderstanding of customer perceptions of mobile banking services and helps them plan theirmarketing strategies and promotion approaches for mobile banking services in the future.RESEARCH METHODOLOGYFor the present research, the paper is based on Exploratory Research. The major emphasis ofExploratory Research is on the discovery of ideas. Through Exploration, the researcherdevelops concepts more clearly, establish priorities, develop operational definitions, andimprove the final research design. This research is both quantitative and qualitative. This

148www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780research is based on the data collected through “Questionnaire” with Mobile banking Userand Non-user.RESEARCH DESIGNThe data have been grouped into two main categories - primary and secondary data. Thesecondary data have been compiled from newspaper, journals, magazines, and web links andalso research papers. The primary data have been collected through an exploratory research –Questionnaire with user and non user of mobile banking basically Businessmen, servicemen,professionals, students etc.LITERATURE REVIEWAdoption of tele-banking [1] as well as Internet banking [2] has received research attention inrecent years. Much of the existing research in electronic banking services has adopted anorganizational perspective [3] or a distribution channel perspective [4]. Consumers usingthese services have been focus in a large body of current research, nevertheless customerbehavior in mobile banking context have remained rather uncharted territory. This paper aimsat filling that gap by shedding light on the general usage of mobile services and in particularon influence of demographic characteristics on usage. The survey was conducted amongGhaziabad bank customers. The paradigm shift, from traditional branch banking to electronicbanking; the newly emerged channels; rapidly increasing penetration rates of mobile phonesare among other the motivators of this study. The approach employed is practical andprovides insights drawn from the quantitative empirical survey.The newly emerged mobile banking services represent an innovation where both intangibleservice and an innovative medium of service delivery employing high technology are present.Thus, concepts of innovation and diffusion of innovation are even more intricate astechnology and service aspects have an effect on the characteristics of mobile bankingservices[5]. Traditionally research relating to the customer adoption of innovation has tendedto concentrate on socio-demographic and psychographic attributes of potential adopters. Eventhough these kind of personal characteristics of a consumer have found to be predictors ofadoption [1], an increasing body of research has demonstrated that it is the perceivedattributes of innovation itself rather than the personal characteristics that are the strongerpredictors of the adoption decision [6]. In the search to understand consumers' adoption ofinnovation, and where research has focused on the consumer perspective, Rogers' diffusionmodel, which originally dates back to 1962, has often been employed[8]. Within financialservices innovation research [7], [9,10], have applied Rogers' model to Internet banking.According to Rogers (1995)[11] the perceived innovation characteristics are supposed toprovide the framework how potential adopters perceive an innovation. Research that hasinvestigated the product characteristics of innovation has generally endorsed evaluating theinnovation along the product characteristics that involve five constructs; relative advantage,compatibility, complexity, trialability and observability[12]. Concept of perceived risk isoften included as augmented by Bauer (1960)[13]. Particularly in banking services theperceived risk associated with the financial product itself as well as with electronic deliverychannel is higher than in basic consumer goods, and hence increasing the importance of thisattribute of innovation[14]. Ensuring security and confidentiality are the fundamentalprerequisites before any banking activity involving sensitive information can take place[15].

149www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Relative advantage, compatibility, trialability and observability are positively related toadoption of an innovation and the remaining two, complexity and perceived risk, negativelyrelated[11]. These innovation attributes and their influence on adoption of mobile bankingservices are detailed under empirical implications.INTRODUCTIONThe mobile banking is defined as “the provision of banking services to customers on theirmobile devices”: specifically the operation of bank current and deposit or savings accounts.According to recent research findings and forecasts in business, media and academia, mobilephones and handheld devices should have been firmly established as an alternative form ofpayment in most technologically advanced societies [16]. Despite ongoing efforts by keyplayers such as banks, mobile network operators and mobile payment service providers(MPSP) in promoting and offering mobile payment options, absence of widespread customeracceptance of this innovation have resulted in a lag in the adoption of mobile payments as analternative form of payment mechanism [17]. While each of these players approach themarket with different expectations, several studies have shown that merchant/consumeradoption is key to the success of mobile payments [16, 17]. „Mobile payments are defined asthe use of a mobile device to conduct a payment transaction in which money or funds aretransferred from a payer to a receiver via an intermediary or directly without an intermediary‟[18]. Due to the all-encompassing nature of this definition, it should be made clear that adistinction exists between mobile payments and mobile banking. The latter refers to mobilepayment transactions that are exclusive to their respective customers whilst the former is amode of payment that is widely available to all parties in a retail environment [18]. Mobilepayments have been suggested as a solution to facilitate micropayments in electronic andmobile commerce transactions and to encourage reduced use of cash at point-of-salesterminals [18, 19]. If efforts in promoting the use of mobile payments succeed, it will boostboth ecommerce and m-commerce adoption and may be the killer service in 2.5G, 3G andbeyond [17]. The early development of mobile payment was largely triggered by the highpenetration rate of mobile phones and handheld devices in most markets. Mobile phonestoday clearly outnumber every other mobile device. In 2004, the Gartner Group predicted thatby 2008 there will be more mobile phones worldwide than televisions, fixed line phones andpersonal computers (Gartner, 2004). Juniper Research provides six year forecasts for mobilebanking, across eight regions of the world: North America, South America, Western Europe,Eastern Europe, Far East & China, Indian Sub Continent, Rest of Asia Pacific and Africa &Middle East. Forecasts include subscriber take up, traffic, transaction sizes and values. Incomparison to mobile banking information services, transactional mobile banking will havelower levels of usage adoption by mobile phone users.

www.zenithresearch.org.in150ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 1: MOBILE BANKING: TRANSACTIONAL USERS – 2011 REGIONALFORECAST (%)Source: Juniper ResearchMOBILE BANKING ADOPTION IN INDIAIn India, the situation of the banks is quite different from the banks overseas particularly indeveloped markets. Indian banks are not facing huge write downs or losses and are still quitewell capitalized. Globally, the IT spends of financial institutions are expected to go downdrastically in 2009-10. In India, however, this could be an opportune moment for banks tofocus on the internal processes and consolidate their IT platforms across functionalities to usetechnology as an effective strategic tool. The use of technology in India has undergone rapidtransformation. The last two decades have witnessed a sea change in the nature of servicesoffered by not only banks but also the financial sector and even the Government - all ofwhich have had a positive impact on the customers of these organizations and the generalpublic at large.Financial Services are generally complex and need a lot of trust for the consumer to usetechnology. Banks have changed from paper-based banking solutions provider to the latest ofthe technologies like online-banking, mobile-banking, etc. It is surprising to know as to whymost of the Indian customers have not welcomed this up gradation. Customers across theworld, even technologically optimists, have refrained from using technology aided solutions.There are many reasons why technology has not been able to ride the acceptance wave andcross the hurdle and become an acceptable feature in banking. As today‟s banking hasredefined itself as customer centric, it becomes more important that the customer is happy

151www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780with the services being provided. Unfortunately, the acceptance and adoption rates are verylow even in the case of educated customers. The paper looks at various factors which explainwhy consumers are not using mobile banking and other technologies in banking. It wouldalso try to suggest why people are not currently using mobile banking and try to suggest howto overcome this problem and increase the acceptance levels.Data has been collected from various sources; there is a combination of both primary andsecondary data that has been used in this research.(A) PRIMARY DATAThe data for the research is extracted from a servey conducted in Ghaziabad in U.P.,India. Atotal of 100 respondents participated in the research of Mobile banking. The demographicprofile of respondents in each research is shown in Table and chart. The data collectedthrough this method was adequate enough to make projections in the research.TABLE 1 : DEMOGRAPHIC PROFILE OF RESPONDENTSCharacteristics Frequency %tageGenderMaleFemale65356535Age50

152www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Income (Monthly)=Rs.15,000Missing652312652312(A) SECONDARY DATA• Articles have been sourced from magazines and journals dealing with current issues inmobile banking adoption. Internet & Text books related to Mobile Banking & ResearchMethodology have been a major secondary source for the extraction of the expert‟s opinion.FACTORS THAT AFFECT MOBILE BANKING ADOPTIONIn order to identify the top and least five perceived items in affecting the adoption intentionof Mobile banking, the percentage score of the respondents was computed? Table providesthe result.TABLE 2 : MOST AND LEAST PERCEIVED FACTORS IN MOBILE BANKINGADOPTIONItems1. I would use Mobile banking if I could use it ona trial basis first to see what it can offerPercentage of Using Mobile BankingPopulation (%)812. I would use Mobile banking if I could see a trialdemo first?763. I would use Mobile banking if I could testMobile banking first?754. I would use or be more likely to use Mobilebanking if Mobile banking was compatible withmy lifestyle?45

153www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805. I would use or be more likely to use Mobilebanking if using my Mobile to conduct bankingtransactions fits into my working style?356. Mobile banking is a risky mode of banking touse?547. Mobile banking would allow me to manage myfinances more efficiently?448. Mobile banking would be complex to use? 609. I would use Mobile banking if Mobile bankingincreased my71status?10. Mobile banking would require a lot of mentaleffort?63The findings in table indicate that adoption of Mobile Banking appears to be influenced by itstrialibility and compatibility. Regarding the least perceived items that affect mobile bankingadoption, these seem to be related to complexity, relative advantage and perceived risk ofMobile Banking are perceived as factors least affecting its adoption.TABLE 3 SHOWS THE INTENTION TO ADOPT THE MOBILE BANKING ANDTHE FACTORS TO ADOPT THAT AFFECT SUCH INTENTIONCompactibility 46%Trial Ability 59%

154www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Risk 64%Complexity 49%Adoption Intent 40%FACTOR 1: ACCESS PROBLEMSIt is the most important factor, Accessing Problem statements such as `Possibility of error ishigher than Internet Banking , Using key code list with mobile phone is complicated andMobile phone is an unpractical device for banking emerge with good positive correlations.The great influence on the adopters not to have mobile banking services.FACTOR 2: DISSATISFACTIONFour variables load on to this factor. `Dissatisfaction' is the second significant factor, whichaccounts of the variations. The statements `Data transmission is very slow , Mobile bankingservices are risky and not secure, Mobile banking services are not enough versatile and Itsuse has been a disappointment by others signify that the non-adopters have seen thedissatisfaction among the users of mobile banking services.FACTOR 3: INABILITY TO PROVIDE KNOWLEDGEThis is another crucial factor, which is reflection of variations. The statements of insufficientguidance is there for using mobile banking and its use is complicated which reflects thatconsumer behavior tends to be based on how a given problem is to be solved. In this research,the non-adopters of mobile banking are afraid of being the usage of new technology due tothe complications in the systems and, moreover, no proper guidance is provided to them.DISCUSSIONS AND RECOMMENDATIONSThe banks providing mobile banking services to their customers, wishing to increase theircustomer share by removing all the above-discussed hurdles in the way of adoption of mobilebanking services, may find relevant information from the findings. The factors appear to bedefined by a mix of items that are reflections of problems in supplier side of the services andfunctionality of a mobile phone as delivery medium for banking services from the customerside. As the Internet banking is still in its growing stage, mobile banking has emerged as thenext advance way of doing banking. Since the pace of technology advancement is notmatching with the adoption rate, problems will arise if this widened gap is not going to befilled up with suitable measures. This negative effect of accelerating pace of development ismanifested in services that are launched at an early stage of development process due tocompetitiveness and cost pressures. As a consequence, competence of service quality, does

155www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780not reach an adequate level; consumers feel that service-providers are not responding to theirneeds. An example of that is the support for the item services are not enough versatile. Inaddition, emphasizing technology in service offering may result in ignoring certainfundamental prerequisites required for acceptance. Technology is an enabler a way to buildup a new delivery channel, but communicating only technological features other elements ofservices such as service content. Technology-based electronic delivery medium does notconstitute service offering and creates value alone, but service content has to functionproperly and the way of usage has to be known. Another main impediment seems to befunctionality of a mobile phone as delivery medium for banking services. Mobile phone,obviously is not designed for this type of services: For instance, key board is relatively small,which makes it more prone for correcting errors in keeping the figures. Results indicate thatconsumers get disheartened by the complicated functions while accessing the mobile bankingservices which lead them to the dissatisfaction level as no proper guidance is to be providedto them. The fact is that the factor risk and security are the most considerable significantfactors for banking service adoption, and particularly in relation to `new' electronicenvironment. The result of perceived risk on the adoption of mobile banking servicesappears to indicate that consumers are serious about the risk of conducting banking via awireless channel, measured in terms of overall security and trustworthiness of the servicesoffered. On the basis of the findings, it is suggested that service providers be aware of theproblems of their customer base using mobile services. This kind of data has its value whendesigning new services and products or implementing market communications. In addition,information gained from experience with Internet banking and other modes of electronicbanking cannot be straightforward implemented to mobile banking service customers. Giventhe increased competition and pressures to cut expenses, financial institutions have to be ableto make informed decisions on resource allocation. Thus, research of this kind is of criticalimportance.CONCLUSIONIt is well recognized that mobile phones have immense potential of conducting financialtransactions thus leading the financial growth with lot of convenience and much reduced cost.For inclusive growth, the benefits of mobile banking should reach to the common man at theremotest locations in the country. For this all stakeholders like Regulators, Govt, telecomservice providers and mobile device manufactures need to make efforts so that penetration ofmobile banking reaches from high-end to low-end users and from metros to the middle townsand rural areas. Inclusion of non-banking population in financial main stream will benefit all.There is also need to generate awareness about the mobile banking so that more and morepeople use it for their benefit.REFERENCES[1] Al-Ashban, A. A. & Burney, M. A. 2001. Customer adoption of tele-banking technology:the case of Saudi Arabia. International Journal of Bank Marketing. Vol. 19 (5), pp. 191-200.[2] Bradley, L. & Steward, K. 2002. A Delphi study of the drivers and inhibitors of Internetbanking. International Journal of Bank Marketing. Vol. 20 (6), pp. 250-260.

156www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780[3] Daniel, E. 1999. Provision of electronic banking in the UK and the Republic of Ireland.International Journal of Bank Marketing. Vol. 17 (2), pp. 72-82.[4] Black, N. J. & Lockett, A. & Ennew, C. & Winklhofer, H. & McKechnie, S. 2002.Modelling consumer choice of distribution channels: an illustration from financialservices. International Journal of Bank Marketing. Vol. 20 (4), pp. 161-173.[5] Thornton, Jennifer and White, Lesley (2001), "Customer Orientations and Usage ofFinancial Distribution Channels," Journal of Services Marketing. Vol. 15 (3), 168-185.[6] Mohr, J. 2001. Marketing of high-technology products and innovations. Upper SaddleRiver: Prentice Hall.[7] Black, N. J. & Lockett, A. & Winklhofer, H. & Ennew, C. 2001. The adoption of Internetfinancial services: a qualitative study. International Journal of Retail and DistributionManagement. Vol. 29 (8), pp. 390-398.[8] Howcroft, B. & Hamilton, R. & Hewer, P. 2002. Consumer attitude and the usage andadoption of home-banking in the United Kingdom. International Journal of BankMarketing. Vol. 20 (3), pp. 111-121.[9] Polatoglu, V. N. & Ekin, S. 2001. An empirical investigation of the Turkish consumers'acceptance of Internet banking services. International Journal of Bank Marketing. Vol.19(4), pp. 156-165.[10] Tan, M. & Teo, T. S. H. 2000. Factors influencing the adoption of Internet banking.Journal of the Association for Information Systems. Vol. 1 (5), pp. 1-42.[11] Rogers, E. M. 1995. Diffusion of innovations. 4th edition. New York: Free Press.[12] Moore, G. C. & Benbasat, I. 1991. Development of an instrument to measure theperceptions of adopting an information technology innovation. Information SystemsResearch. Vol. 2 (3), pp. 192-222.[13] Bauer, R.A. 1960. Consumer behaviour as risk taking. Proceedings of the EducatorsConference, American Marketing Association, pp. 389-398.[14] Harrison, T. 2000. Financial services marketing. Wiltshire: Prentice Hall.[15] Jayawardhena, C. & Foley, P. 2000. Changes in the banking sector - the case of Internetbanking in the UK. Internet Research: Electronic Networking Applications and Policy.Vol. 10 (1), 19-30.[16] K. Taga and J. Karlsson, Arthur D. Little Global M-Payment Report. Austria, Vienna,2004.

157www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780[17]S.Karnouskos, "Mobile Payment: A journey through existing procedures &standardization initiatives " IEEE Communications Surveys & Tutorials, pp. 44-66, 2004.[18] N. Mallat, "Exploring consumer adoption of mobile payments - A qualitative study,"Journal of Strategic Information Systems, vol. 16, pp. 413-432, 2007.[19] D. B. Begonha, A. Hoffman, and P. Melin, "M-payments; hang up, try again," CreditCard Management, vol. 15, pp. 40-44, 2002.

158www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTMULTIDIMENTIONAL MODEL FOR BIOLOGICALDATA INTEGRATIONMS. ALPA R. PATEL**Lecturer, R. K. Achchhariwala College of Computer & Applied Sciences,Vapi, Dist.-Valsad (South Gujarat),Veer Narmad South Gujarat University, Surat.Biomedical research is now generating large amounts of data, ranging from clinical testresults to micro array gene expression profiles. It is highly desirable that data warehousingand online analytical processing technologies can be applied to biomedical data integrationand mining. The major difficulty probably lies in the task of capturing and modeling diversebiological objects and their complex relationships. This paper describes multidimensionaldata modeling for biomedical data warehouse design. Since the conventional models such asstar schema appear to be insufficient for modeling clinical and genomic data, we develop anew model for Biological data. The new model can capture the rich semantics of biomedicaldata and provide greater extensibility for the fast evolution of biological researchmethodologies.KEYWORDS: Biological data, Clinical and genomic data integration, data warehousedesign, multidimensional modeling.1 INTRODUCTIONRecent developments of high throughput technologies result in large datasets ofgenomic sequences and gene functional profiles. Analysis of these datasets may lead togreater understanding of the biological mechanisms behind diseases such as multiplesclerosis. For example, micro array data contain valuable information for discovery ofdisease-associated gene expression patterns and classification of patients. The scale andcomplexity of genomic datasets give rise to substantial challenges in data management andmining. It is also clear that full benefit of functional genomics may only be obtained throughseamless integration with clinical data and biological background knowledge. However, thediverse resources of clinical and genomic information are typically distributed at a range ofsites. These information resources often allow the data to be browsed or downloaded as flatfiles, but do not support efficient genome-wide data analysis and integration with other datasources of interest.Data warehousing technology, which was originally developed in a business context,is beginning to be used in the fields of biology and medical sciences to meet the requirementof data mining for clean and consistent data. A data warehouse is defined as “a subjectoriented,integrated, non-volatile and time-variant collection of data in support ofmanagement‟s decisions” (Inmon, 1996). Specifically, business data are extracted fromseveral operational databases, transformed, cleansed and loaded into a multidimensionaldatabase. The data in the warehouse may be further filtered, aggregated and stored in smallerdata stores, usually called data marts, for specialized purposes. Thus, data warehouses are

159www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780viewed as consolidated repositories of historical data and their major role is to facilitatebusiness decision making.Online analytical processing (OLAP) applications are built to provide users amultidimensional view of the data in the warehouse and to allow data analysis through ad hocqueries of the data (Cabibbo and Torlone, 1998). An important feature of OLAP is thepresentation of information at different levels of detail through aggregating anddisaggregating data over one or more dimensions (Marcel, 1999). This feature is realized bytwo OLAP operations, called roll-up and drill-down. Roll-up corresponds to summarizationof data for the next higher level of a concept hierarchy associated with a dimension. Drilldown,which is the reverse of roll-up, provides navigation from a higher-level summary to thelower-level detailed data. Other OLAP operations include pivoting, slicing and dicing(Vassiliadis, 1998). Since measurable business facts or the so-called measures are mostlynumeric values, roll-up usually uses simple aggregate functions such as sum and average,though complex algebraic or statistical operators may also be defined for OLAP operations(Datta and Thomas, 1999).While data warehousing and OLAP have been successfully applied to the businessdomain, it is clear that direct transfer of these technologies to biology is fraught withdifficulties. The main reason is that the information need of biological research isfundamentally different from that of customer-centered business. While business dataanalysis such as market-driven trend analysis is to support management‟s decision, the maingoal of biological data warehousing is probably to provide a global and integrated view ofliving systems. Another major difficulty is due to the great complexity of biology. Unlikebusiness processes that are logically simple and temporally stable, biology has very complexresearch methodologies and a huge fast-growing body of background knowledge. The task ofcapturing, modeling and encoding some of the biological knowledge for a data warehouseappears to be a great challenge.Biological data are also modeled using object-oriented and traditional entityrelationship(ER) approaches. The collection of object-oriented conceptual models forvarious yeast data, including genetic, genomic sequence, gene expression and protein-proteininteraction data. The models were later implemented in the object database called GIMS(Cornell et al., 2001). Many others used traditional ER models for micro array geneexpression and/or other genomic data (Gollub et al., 2003; Chen et al., 2004). Thesedatabases were aimed to provide management and integration of genomic data, and thussupport for efficient multidimensional data analysis was probably not considered in thedatabase design.We present in this paper a new model for clinical and genomic data in the warehousedesign. In our case, the data warehouse is designed to integrate various biomedical datasetsfor studies of human diseases (e.g., multiple sclerosis and cancers). Clinical data, includingclinical test results, MRI images and drug responses of patients are provided by ourcollaborators. A relatively large collection of micro array gene expression data from multiplesclerosis patients is available for this research. Other genomic datasets, including sequencesand annotations, micro array gene expression data, protein-protein interaction data andprotein domain information, are obtained from public databases. Thus, our data modelingscope is quite comprehensive and the work may provide a general framework for biomedicaldata warehousing and mining.

www.zenithresearch.org.in160ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The rest of this paper is organized as follows. Section 2 provides several examples ofmodeling clinical and genomic data at the conceptual level. We discuss new challenges forthe multidimensional modeling of biomedical data in Section 3. In Section 4, a new model forintegrating biological data is described.2 MOTIVATING EXAMPLESThe data warehousing and mining lifecycle includes data modeling, data warehouseconstruction, and development of visualization and mining tools. The data models shouldprovide a multidimensional view of data and serve as a foundation on which a datawarehouse can be built. The data modeling process may be divided into three different designphases: conceptual data modeling deals with high-level representation of the data space;logical data modeling relates high-level concepts to a certain kind of database managementsystem (DBMS); and physical design specifies how data are actually stored using a specificDBMS.In this section, we describe three typical examples of modeling clinical and genomic data atthe conceptual level. Due to the diversity and complexity of biomedical data, the warehousedesign may include several modeling data spaces. In our work, we used the following six dataspaces: clinical data space, sample data space, micro array data space, proteomic data space,experiment data space, and gene data space.EXAMPLE 1 (CLINICAL DATA SPACE)An entity-relationship (ER) diagram for the clinical data space is shown in Figure 1. Anentity is represented as a rectangle with the entity name and a relationship between twoentities is drawn using a line with the multiplicity label, which indicates the number ofobjects that may participate in the relationship. For example, one Patient can have many(denoted by „n‟) Clinical Samples taken for laboratory assays (Figure 1). The attributes of theentities are not shown in the conceptual models.FIGURE 1: A CONCEPTUAL MODEL OF THE CLINICAL DATA SPACE

161www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The clinical data space has a rich variety of entities, among which Patient is obviouslythe most important entity and thus the fact entity in the multidimensional data model. All theother entities can be viewed as dimensions to characterize patients. Disease and Drugrepresent two important dimensions of patient data. Both dimensions have a many-to-manyrelationship with Patient and their associated measures, namely disease diagnosis and druguse, which need bi-temporal support to specify their valid time intervals. In addition, therelationship between Disease and Patient can be uncertain in some cases.Clinical Sample is another important entity, which has a many-to-one relationship withPatient. Clinical samples such as blood samples are taken from patients and used for variouslaboratory assays. The Clinical Test entity captures information about simple clinical testsapplied directly to patients through physical examination or by asking patients to performsome simple routines. Clinical Test has a many-to-many relationship with the Patient entity.Patient data from sophisticated clinical studies are captured by the Medical Image andPhysiology entities. These studies use advanced medical equipment and result in complexdata such as MRI images and cardiograms. The Medical Image entity has a many-to-onerelationship with Patient, whereas the Physiology entity has a many-to-many relationshipwith Patient. Other dimension entities in our design include Demographics, whichcharacterizes patients based on demographic information and Followup, which capturespatient status information in followup reports. Both entities have a many-to-one relationshipwith Patient.The clinical data space has a very complex structure and may include more entities such aspatient family history record. These dimensions characterize patients with different factmeasures. However, for a particular patient, only a few measures are usually available.EXAMPLE 2 (MICRO ARRAY DATA SPACE)The DNA micro array technologies allow genome-wide analysis of gene expression atthe mRNA level. In Figure 2, a conceptual model for the micro array data space is shown.The fact entity in this data space is mRNA Expression, which has four dimension entities.The Clinical Sample entity provides sample information for gene expression measurementsand it links the micro array data space with the clinical data space described above.

162www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 2: A CONCEPTUAL MODEL FOR THE MICRO ARRAY DATA SPACEGeneSequence1mClinical sample11Array ProbemmmRNAExpressionmmExperiment11Measurement UnitArray Probe captures the information about sequence or oligonucleotide probes that areplaced on the micro array. These probes are derived from gene sequences. Since multipleprobes may be used for a single gene, it is often necessary to summarize gene expression tothe higher level of non-redundant gene sequences.The Measurement Unit entity can be used to keep information about what is measured forgene expression. For example, the Affymetrix GeneChip platform provides two kinds of geneexpression measurements for each probe set, a presence/absence (PA) call and a numericvalue. In contrast, cDNA micro arrays give the relative ratios of gene expression in twosamples.The Experiment entity captures metadata of each experiment. Micro array data are obtainedthrough complex experimental processes. The procedures and platforms used for suchexperiments can affect the magnitude and quality of gene expression measurements. Sincedatasets generated in different research laboratories and possibly using different platformswill be combined in the data warehouse, it is very important to capture the experimentalmetadata for both data quality control and future reference.EXAMPLE 3 (GENE DATA SPACE)The gene data space contains gene function information integrated from a variety of publicdomain data sources. Since NCBI‟s non-redundant RefSeq or UniGene sequence dataset isnormally used as the reference set for functional annotations, we view Gene Sequence as thefact entity of the gene data space (Figure 3).

163www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 3: A CONCEPTUAL MODEL FOR THE GENE DATA SPACEmRNAexpressionn1Array ProbeProteinGene clusternnnExpressionn1 1GeneSequencen 1Protein-ProteinInteractionn1nnnnPromoterGeno orcologyProtein DomainThere are many possible dimensions to characterize the gene functions and seven ofthese entities are shown in Figure 3. The entity important for micro array data analysis isArray Probe, which has a many-to-one relationship with Gene Sequence. The Array Probeentity links the gene data space to micro array data space. Protein Expression representsanother level of gene expression measurement using proteomic approaches and has a manyto-onerelationship with Gene Sequence. In the proteomic data space, Protein Expression isthe fact entity (similar to mRNA expression in the micro array data space).The other gene data dimensions include Gene Cluster, Promoter, Protein Domain andProtein-Protein Interaction. Co-regulated gene clusters are obtained by clustering analysis ofgene expression data in the warehouse and can be used to analyze gene regulatory networks,together with information about promoters and their composition of sequence motifs. Proteininteraction and domain information are two important dimensions for annotating genefunctions.3 PROBLEM DESCRIPTIONOne of the major requirements in operational database design is to avoid dataredundancy in database relations through normalization. Normalized schemas are importantfor supporting efficient online transaction processing (OLTP), which include pre-definedstatements of queries and updates. However, the data access characteristics of a data

164www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780warehouse are quite different from those of operational databases. In a data warehouseenvironment, users do not initiate update transactions. On the other hand, a data warehouseneeds to support complex ad hoc queries that compute aggregate values over a huge amountof data for the purpose of data analysis such as OLAP. If a data warehouse uses a standardEntity-Relationship schema with many tables, a user may not be able to fully understand andutilize the integrated information in the warehouse (Kimball, 1996). Thus, data warehousedesign often adopts multidimensional data modeling, which organizes database entities intofacts and dimensions.3.1 APPLICATION OF EXISTING MULTIDIMENSIONAL MODELSThe application of multidimensional models to biomedical data warehousing is a recenteffort. Most of the multidimensional models documented in the literature are based onbusiness data (Abello et al., 2001) and thus may not meet the requirements of biomedical datawarehousing. Pedersen et al. (2001) evaluated 14 existing multidimensional models againstthe requirements of clinical data warehousing and found that none of these models support allthe requirements.In a relational online analytical processing (ROLAP) architecture, a star or snowflake schemais commonly used for the data warehouse design (Vassiliadis and Sellis, 1999). A star schemaconsists of one central fact table, which stores measures for OLAP aggregation and severaldenormalised dimension tables. The major advantages of star schemas are their support forefficient OLAP operations and high understandability to warehouse users. The normalisedversion of a star schema is called a snowflake schema, in which dimension hierarchies can beexplicitly defined using separate tables. If there are multiple fact tables to share dimensiontables, such a collection of star schemas is called a fact constellation.3.2 NEW CHALLENGESWe now discuss the major characteristics of clinical and genomic data and comparethem with business data to show the different requirements between biomedical and businessdata warehousing (Table 1). First, the structure of clinical and genomic data is very complexand fast evolving, which reflects the great complexity of biological research and constantadvances of experimental approaches. Specifically, many current entity types can be definedas dimensions in both clinical and gene data spaces and even more dimensions may be addedover time. Furthermore, each dimension often has its own fact measures, which are coupledloosely with and can change independent of other dimensions‟ measures. For example, apatient may have clinical tests with associated test results and may also be given one or moredrugs, giving rise to the drug usage measures. However, the clinical tests may or may not bedirectly related to the drug usage.

165www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 1: CHARACTERISTICS OF CLINICAL AND GENOMIC DATA WHENCOMPARED TO BUSINESS DATAClinical and genomic dataBusiness dataComplex data structure with many potentialdimensionsEasy-to-understand data structure withfew dimensionsOften many-to-many relationships between factsand dimensionsMany-to-one relationships betweenfacts and dimensionsUncertain relationships between fact and dimensionobjectsCertain relationships between fact anddimension objectsSome clinical measures require advanced temporalsupport for time validityHistorical data, no advanced temporalsupport neededIncomplete and/or imprecise data very commonFew incomplete and/or imprecise dataSecond, many-to-many relationships between fact and dimension objects are commonin the clinical and gene data spaces. For example, a patient can be treated with one or moredrugs and a drug can be used by many patients. A gene can have several protein domains, anda domain can be present in many genes. These natural many-to-many relationships are noteasily modeled using star schemas, which are originally designed to handle the many-to-onerelationships between a business fact and a dimension.Third, the relationships between fact and dimension objects may be uncertain in somecases. For example, a gene can be annotated to have some functions using gene ontologyterms based on currently available evidence. However, the functional annotation may becompletely changed when new evidence becomes available. Similarly, the diagnosis of apatient, i.e., the relationship between the patient and diseases, may be uncertain at a giventime point, depending on the available clinical test results.Fourth, one important property of clinical data is that some measures are only valid inspecific time intervals. For example, a patient may have a disease at a specific time intervaland the effect of a drug on patients often lasts a certain time period. Thus, some clinical dataneed bi-temporal support (starting and ending time points) to specify their valid timeintervals. This advanced temporal concept, although very important for multidimensionalanalysis of clinical data, is not supported by conventional models.

www.zenithresearch.org.in166ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Finally, clinical and genomic datasets are often incomplete and the values can be imprecise.The above characteristics of biomedical data should be considered as the criticalrequirements of the multidimensional data model for the biomedical data warehouse. Theexisting multidimensional models do not fully support these requirements. For example, theclinical data space features complex relationships between the fact entity (Patient) anddimension entities and need bi-temporal support for some clinical measures. A conventionalstar or snowflake schema has problems to model the clinical data space. If a single fact tableis used to store all the different clinical measures, most entries (including foreign keys of thefact table) would contain null values due to the incompleteness of data.For the gene data space (Figure 3), extensibility of the model is one of the majorrequirements. Due to the fast evolution of genomics, new dimensions may need to be addedto the model. The conventional models do not support this requirement. For example,introduction of a new dimension into a star schema would require re-computing all the dataentries in the fact table.4 NEW MODEL FOR BIOMEDICAL DATAIn Section 4, we describe a new multidimensional model, which supports all the requirementsof our biomedical data warehousing. We first describe the basic elements of the model andthen discuss its properties important for modeling complex biomedical data spaces.4.1 THE BASIC MODELA model‟s fact schema is a quadruple F = (C, D, M, S), where C is the central entity schema,D is a set of dimension schemas, M is a set of measure schemas and S is a set ofsummarisability constraints. The central entity is viewed as a special dimension, which isassociated with every fact measure. For example, in the clinical data space, Patient is thecentral entity; and in the gene data space, Gene Sequence is the central entity.C or Di D is a pair (L, ), where L is a set of dimension levels and is a partial order of theelements in L. A level l L is a dimension attribute, which is associated with a domain ofvalues, dom(l). For example, the Demographics dimension of Patient (Figure 1) may have thefollowing levels: Street Address, City, County, State and Country. The dimension levelsspecify the granularities that can be used to represent the fact objects. For example, patientsmay be classified by their living places in an increasing order of granularities: Street Address{City; County} State Country. Note that it is a partial order since there are twopossibilities of ordering City and County (Street Address City County; or Street AddressCounty). Therefore, (L, ) is a lattice specifying the classification hierarchy of C orDi D. The classification hierarchy determines how fact objects may be summarized over thedimension. In the biomedical data warehouse, however, some dimension hierarchies are stillundefined or very complex. Definition of standard hierarchies for these dimensions requiressignificant background knowledge of biology (e.g., gene ontology and disease ontology). Inthis study, we are focused on modeling the structures and semantics of biomedical data andassume that some kind of classification hierarchy exists for these dimensions.A measure schema, Mj M, is a triple (Am, As, Dm), where Am is a set of attributes calledmeasures, As is a set of supporting attributes for the measures (e.g., single- or bi-temporalsupport) and Dm is a set of dimensions that are associated with the measures. In a relational

www.zenithresearch.org.in167ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780database, a measure schema may be implemented as a separate table, which we call it an m-table. An m-table is associated with the central entity and one or more dimensions. Note thatAm can be an empty set. In such cases, the m-table just keeps the relationships among thecentral entity and the associated dimensions, and the records in the m-table may be used forcounting occurrences instead of numeric aggregation.Each summarisability constraint, Sk S, is a triple (Di, Mj, Ω), where Di D, Mj M, and Ω isan aggregation operator. In our biomedical data warehouse, the commonly used aggregationoperators are {SUM, AVG, MAX, MIN, COUNT, CORRELATION, T-TEST, ANOVA}.The last three are statistical operators that are widely used in biomedical research. TheCORRELATION operator is used to compute the Pearson or Spearman correlationcoefficient between two random variables, T-TEST is used to determine if there is asignificant difference between two random variables by computing the t-statistic andANOVA (analysis of variance) is used to test whether there are differences between any pairsof random variables.Summarisability constraints are critical for meaningful OLAP analyses of clinical and geneexpression data. For example, it may not make sense to simply take the sum or average ofmicro array data for a group of genes (summarization over the gene dimension). However, itis of interest to mine micro array data for gene relationships using the CORRELATIONoperator (pair-wise analysis of gene expression correlation). We are currently applying thetraditional and statistical operators to biomedical data, and defining summarisabilityconstraints for the OLAP operations.4.2 ADDRESSING THE REQUIREMENTSThis model supports all the requirements described in Section 3.2.4.3 SUPPORT FOR OLAPWe now discuss model‟s properties for supporting OLAP operations. We assume thatclassification hierarchies are defined for the dimensions and the central entity. For example,gene ontology (GO) may be used to classify gene functions, and disease ontology may beused as the Disease dimension hierarchy in the clinical data space. These ontologies encodesignificant background knowledge of biology and thus are important for meaningful OLAPanalyses of clinical and genomic data. The classification hierarchies of the other dimensionsmay also be defined in a similar way based on domain-specific knowledge.For each measure in a model‟s schema, a data cube is pre-computed and applied to OLAPoperations using the classification hierarchies of the dimension(s) and the central entity.While the dimension hierarchy is defined according to the characteristics of the dimensionentity, the hierarchies associated with the central entity may be based on the other dimensionsand measures in the data space. For example, the hierarchies shown in Figure 6 may be usedfor data cube construction and OLAP of the patient drug use measure. While the hierarchy ofthe Drug dimension is constructed based on the various drug classes, classificationhierarchies of the central entity (Patient) may be defined according to the disease (the Diseasehierarchy), demographics (the Residence and Age hierarchies), clinical test result (theClinical Test hierarchy), and other dimensions. Note that, except for the Residence hierarchy,we do not show in Figure 6 the detailed structure of the hierarchies because some are very

168www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780complex (e.g., disease ontology and drug classification) and the others may depend onapplication context (e.g., classes of age and clinical test result).Thus, one novel feature of this model is that the central entity can have manyclassification hierarchies, some or all of which may be used for constructing any particulardata cube and subsequently for OLAP operations. Conventional models may definealternative hierarchies for a given dimension, but they do not support the above feature.5 CONCLUSIONSWe described a new multidimensional data model for clinical and genomic data. This modelschemas are able to capture the complex data structures and semantics. The model has theproperties of great extensibility and flexibility to be widely applicable to biomedical data.This model‟s extensibility and flexibility are realized by storing different measures inseparate m-tables. These m-tables are used to handle the many-to-many relationships betweenthe central entity and dimensions and can be designed to support specific features of ameasure. Since each m-table and its associated dimension table(s) can be populatedindependently from other m-tables, incomplete data can be stored in the data warehouse byusing only the relevant m-tables. In addition, it is more efficient to update an m-table foruncertain relationships or imprecise data entries than the large central fact table of a starschema. In the future, we will investigate other issues for application of data warehousing andOLAP technologies to biomedical research, including query optimization, definition ofclassification hierarchies and modeling the data warehouse construction process.REFERENCES1. Abello A, Samos J, Saltor F. A framework for the classification and description ofmultidimensional data models. 12th International Conference on Database and ExpertSystems Applications (DEXA), volume 2113 of LNCS; 2001. pp. 668–677.2. Cabibbo L, Torlone R. Querying multidimensional databases. Proceedings of the 6thInternational Workshop on Database Programming Languages; 1998. pp. 319–335.3. Chen J, Zhao P, Massaro D, Clerch LB, Almon RR, DuBois DC, Jusko WJ, HoffmanEP. The PEPR GeneChip data warehouse, and implementation of a dynamic timeseries query tool (SGQT) with graphical interface. Nucl Acids Res. 2004;32:D578–D581. [PMC free article] [PubMed] .4. Cornell M, Paton NW, Wu S, Goble CA, Miller CJ, Kirby P, Eilbeck K, Brass A,Hayes A, Oliver SG. GIMS – a data warehouse for storage and analysis of genomesequence and functional data. Proceedings of the IEEE 2nd International Symposiumon Bioinformatics and Bioengineering (BIBE); 2001. pp. 15–22.5. Datta A, Thomas H. A conceptual model and algebra for on-line analytical processingin data warehouses. Decision Support Systems. 1999; 27(3):289–301.

169www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57806. Dubitzky W, Krebs O, Eils R. Minding, OLAPing, and mining biological data:towards a data warehousing concept in biology. Proceedings of Network Tools andApplications in Biology (NETTAB), CORBA and XML: Towards a BioinformaticsIntegrated Network Environment; 2001. pp. 78–82.7. Gollub J, Ball CA, Binkley G, Demeter J, Finkelstein DB, Hebert JM, Hernandez-Boussard T, Jin H, Kaloper M, Matese JC, Schroeder M, Brown PO, Botstein D,Sherlock G. The Stanford Microarray database: data access and quality assessmenttools. Nucl Acids Res. 2003;31:94–96. [PMC free article] [PubMed].8. Golub TR, Slonim DK, Tamayo P, Huard C, Gassenbeek M, Mesirov JP, Coller H,Loh ML, Downing JR, Caligiuri MA, Bloomfield DD, Lander ES. Molecularclassification of cancer: class discovery and class prediction by gene expressionmonitoring. Science. 1999;286(15):531–537. [PubMed]9. Inmon WH. Building the Data Warehouse. 2. John Wiley & Sons; New York: 1996.10. Kimball R. The Data Warehouse Toolkit. John Wiley & Sons; New York: 1996.11. Marcel P. Modeling and querying multidimensional databases: an overview.Networking and Information Systems Journal. 1999;2:515–548.12. Markowitz VM, Topaloglou T. Applying data warehouse concepts to gene expressiondata management. Proceedings of the IEEE 2nd International Symposium onBioinformatics and Bioengineering (BIBE); 2001. pp. 65–72.13. Paton NW, Khan SA, Hayes A, Moussouni F, Brass A, Eilbeck K, Goble CA,Hubbard SJ, Oliver SG. Conceptual modeling of genomic information.Bioinformatics. 2000;16(6):548–557. [PubMed]14. Pedersen TB, Jensen CS, Dyreson CE. A foundation for capturing and queryingcomplex multidimensional data. Information Systems. 2001;26(5):383–423.15. Vassiliadis P. Modeling multidimensional databases, cubes and cube operations.Proceedings of the 10th International Conference on Scientific and StatisticalDatabase Management; 1998. pp. 53–62.16. Vassiliadis P, Sellis T. A survey of logical models for OLAP databases. ACMSIGMOD Record. 1999;28(4):64–69.

170www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTTHE CORRELATION BETWEEN BLOOD CONTENTHAEMOGLOBIN AND BLOOD GLUCOSE LEVEL ON THEEMOTIONAL INTELLIGENCE - A STUDYDR. ASHOK GINGINE*; MR. ASHISH SAWALE***Assistant Professor, School of Educational Sciences, S.R.T.M. University,Nanded, Maharashtra, India.**Research Scholar, School of Educational Sciences, S.R.T.M. University,Nanded, Maharashtra, India.New research in the 90s confirmed that there is an emotional brain: a place called the limbicsystem where our emotions originate. It is separated from the rational brain (the neocortex)but the two are connected and develop together. This means that our power to reason and ourfeelings are intended to be used together. Because of the brain’s design, all information goesinto our emotional centre first and then to our thinking centre. Emotions come before thoughtand behavior. Emotional intelligence is a product of the amount of communication betweenthe rational and emotional centers of the brain. In this paper an analysis has been to explorethe correlation between blood content hemoglobin and blood glucose level on the emotionalintelligence.KEYWORDS: Emotional Intelligence, Hemoglobin, Blood Glucose.INTRODUCTIONNew research in the 90s confirmed that there is an emotional brain: a place called the limbicsystem where our emotions originate. It is separated from the rational brain (the neocortex)but the two are connected and develop together. This means that our power to reason and ourfeelings are intended to be used together. Because of the brain’s design, all information goesinto our emotional centre first and then to our thinking centre. Emotions come before thoughtand behaviour. What scientists discovered is that we need our emotions; our feelings fire upthe motor in us that drives energy and creativity. If we block or ignore emotions in theworkplace, we stifle motivation. As a result of these findings, it’s become important tounderstand what we’re feeling, what others are feeling, how to manage our own feelings andhow to manage relationships with others. This is the core of Emotional Intelligence: a termused to describe the complex ability to regulate our impulses, empathize with others and beresilient in the face of difficulties. Therefore, emotional intelligence is a product of theamount of communication between the rational and emotional centres of the brain. Thisarticle will examine the history, data and components of Emotional IntelligenceCharles Darwin was the first to recognize the value of emotions. He noted that the Emotionalsystem energizes behaviour needed to stay alive. Emotions cannot be stopped, they happeninstinctually and immediately in response to situations and people. In the 1920s E.I.Thorndike identified “social intelligence” as the ability to act By Deborah Mackin wisely inhuman relations. In 1988, Reuven Bar-On coined the term emotional intelligence in hisdoctoral dissertation. In 1990, John Mayer and Peter Salovey did groundbreaking research on

171www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780emotional intelligence, pointing to the importance of knowing yourself as well asunderstanding others. In 1995, Daniel Goleman introduced the important of EQ in theworkplace, noting that IQ is a less powerful predictor of outstanding leadership than EQ.STATEMENT OF THE PROBLEM“To study the correlation between Blood content Haemoglobin, Blood Glucose level on theEmotional Intelligence.”NEED AND IMPORTANCE OF RESEARCH STUDY1. According to emotional intelligence level the student classification is possible which isuseful for the students in their study.2. To create better teaching learning process.3. Still now there is no any work on this type of research so it is important to do suchtype of work and it is significant to know the Correlation of Blood Glucose level andEmotional Intelligence.SPECIFIC DEFINITIONS OF THE RESEARCH PROBLEM1. BLOOD: - Blood has two main components, serum and cells. The sera of someindividuals caused the red cells of others to agglutinate.2. BLOOD GROUP OR BLOOD TYPE: - A blood group or blood type is based on thepresence or absence of two proteins (A, B) on the surface of red blood cells.3. GLUCOSE: - A simple sugar (monosaccharide) that is found in foods and metabolized bynearly all known organisms.4. BLOOD GLUCOSE: - Blood glucose or blood sugar is sugar in the blood stream thateasily passes the blood brain barrier.5. EMOTIONAL INTELLIGENCE: - “Emotional intelligence refers to the capacity forrecognizing our own feelings and those of others, for motivating ourselves and for managingemotions well in ourselves and our relationship.” By Goldman 1998(a) ABILITY BASED EMOTIONAL INTELLIGENCE MODEL: Salvoes andMayer (2000) define Emotional Intelligence as "the ability to perceive emotion,integrate emotion to facilitate thought, understand emotions and to promote personalgrowth".(b) THE TRAIT EMOTIONAL INTELLIGENCE: Pete rides, Pita Kokkinaki (2007)proposed a conceptual distinction between the ability based model and a trait basedmodel. Trait emotional model is “a constellation of emotion-related self perceptionslocated at the lower levels of personality.”6. HEMOGLOBIN: - Red blood cells are able to carry oxygen so efficiently becauseof a special protein inside them: haemoglobin.

172www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780OBJECTIVES OF THE RESEARCH1. Determination of Blood content Haemoglobin of the student.2. Determination of Blood Glucose level of the student3. Determination of emotional intelligence of the student by a standard Emotionalintelligence test.4. Determination of relationship between blood glucose level, Haemoglobin and Emotionalintelligence of the student.HYPOTHESIS1. There is no significant difference between the blood glucose level and emotionalintelligence.2. There is no significant difference between the Hemoglobin and emotionalintelligence.3. As the blood glucose level increases the emotional intelligence of the student is low.4. There is a significant difference between the, blood glucose level, Hemoglobin andemotional intelligence.ASSUMPTION1. There is a significant difference between the blood glucose level and emotionalintelligence.2. The emotional intelligence of the student is not depending on the hemoglobin of theindividual.3. The emotional intelligence is higher in female than male.SCOPEFor the present research all the departments of Swami Ramanand Teerth MarathwadaUniversity, Nanded are considered.LIMITATIONSFor the present research the blood samples are collected from the students of the School ofEducational Sciences In this 15 blood samples of male and 15 blood samples of female areunder consideration.POPULATIONFor the present research population is given from the all schools of Swami Ramanand TeerthMarathwada University, Nanded.

173www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780SAMPLINGFor the present research the samples are taken from the Schools of the Swami RamanandTeerth Marathwada University, Nanded. These samples are randomly selected.RESEARCH METHODFor the present research researcher used the Survey research method and Experimentalresearch method. From the survey the students having the different blood groups arerandomly selected.RESEARCH TOOLSFor the present research the Emotional Intelligence standard test is used for the collection ofdata. Statistical Analysis is done by using Mean and the Standard Deviation to find out theeffective correlation between the blood glucose, haemoglobin and emotional intelligence.i) Male and Female Emotional Intelligence Total Score, Hemoglobin level and BloodGlucose levelMALE STUDENTSFEMALE STUDENTSSr.No.of theStudentsEmotionalIntelligenceTotalScoreHemoglobin level( mg%)BloodGlucose level(mg/dl)Sr.No.of theStudentsEmotionalIntelligenceTotalScoreHemoglobin level( mg%)BloodGlucose level(mg/dl)1. 145 14.5 102 1. 145 12.4 832. 141 13.8 95 2. 141 12.5 993. 133 13.5 80 3. 133 11.8 944. 137 14.5 106 4. 137 11.2 88.95. 127 13 98.5 5. 127 12 956. 138 14.5 91.5 6. 138 12 877. 138 14.5 90.5 7. 138 12.2 978. 137 13.5 114.7 8. 137 11 1019. 112 14.2 86 9. 112 11.5 113.910 149 14.2 96 10 149 11.2 97

174www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578011. 138 12.8 107 11. 138 12.8 113.512. 138 15 102.5 12. 138 9 92.813. 125 14 96 13. 125 11.5 9714. 126 13.2 115 14. 126 12 9415. 122 13.5 93 15. 122 10.5 93(TABLE-1)ii)Class Interval 0f Male Emotional Intelligence, Hemoglobin and Blood Glucose levelSr.No.Class Intervalof EmotionalIntelligenceTotal ScoreHemoglobinLevel(mg%)12 -13 13 – 14 14 - 15 80-90BloodLevel(mg/dl)91-100101-110Glucose111-1201. 110 – 114 1 12. 115 – 119 - - - - - - -3. 120 -124 24. 125 – 129 3 2 15. 130 – 134 1 16. 135 – 139 1 1 4 1 1 3 17. 140 – 144 1 18. 145 -149 2 1 1(TABLE-2)

175www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780iii)Class Interval 0f Female Emotional Intelligence, Hemoglobin and Blood GlucoselevelSr.No. Class Intervalof EmotionalIntelligenceTotal ScoreHemoglobinLevel(mg%)10-1111-1212-13 13-14 80-90BloodLevel(mg/dl)91-100101-110Glucose111-1201. 105-109 1 12. 110-114 - 1 - - 97 - -3. 120-124 1 1 24. 125-129 - - - - - - - -5. 130-134 1 2 1 26. 135-139 37. 140-144 1 18. 145-149 1 19. 150-154 1 110. 155-159 1 1RESULT(TABLE-3)1. The Male Emotional intelligence Total score ranges between 110 -114 possessesHemoglobin in between 14 -15 gm% and Blood Glucose level in between 80 – 90mg/dl and in this range female possesses Hb in between 11 – 12gm% and BloodGlucose level in between 91 – 100mg/dl.2. The EQ Total score ranges between 115 – 119 on any male and female individualpossesses emotional intelligence at this level.3. The Male Emotional intelligence total score ranges between 120 – 124 possesses Hbin the range between 13 – 14gm% and Blood glucose level in between 91 -100mg/dland in this range female possesses Hb in between the range 12 -13gm% and Bloodglucose level in between 110 -120mg/dl.4. The Male Emotional intelligence total score ranges between 125 – 129 possesses Hbin the range between 13 – 14gm% and Blood glucose level in between 91 -100mg/dland in this range no any female individual is occure.

176www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805. The Male Emotional intelligence total score ranges between 130 – 134 possesses Hbin the range between 13 – 14gm% and Blood glucose level in between 80-90mg/dland in this range female possesses Hb in between the range 12 -13gm% and Bloodglucose level in between 91 -100mg/dl.6. The Male Emotional intelligence total score ranges between 135 – 139 possesses Hbin the range between 14 -15gm% and Blood glucose level in between 101 -110mg/dland in this range female possesses Hb in between the range 12 -13gm% and Bloodglucose level in between 91 -100mg/dl.7. The Male Emotional intelligence total score ranges between 140 -144 possesses Hb inthe range between 13 -14gm% and Blood glucose level in between 91 -100mg/dl andin this range female possesses Hb in between the range 12 -13gm% and Bloodglucose level in between 91-100mg/dl.8. The Male Emotional intelligence total score ranges between 145 -149 possesses Hb inthe range between 14 -15gm% and Blood glucose level in between 101 -110mg/dl andin this range female possesses Hb in between the range 12 -13gm% and Bloodglucose level in between 91-100mg/dl.9. The Female Emotional intelligence total score ranges between 150 -154 possesses Hbin the range between 11 -12gm% and Blood glucose level in between 91 -100mg/dland in this range no any male individual is occure.10. The Female Emotional intelligence total score ranges between 155 -159 possesses Hbin the range between 10 -11gm% and Blood glucose level in between 101 -110mg/dland in this range no any male individual is occur.CONCLUSION1. From the above result it is concluded that the emotional intelligence quotient ishigher in female than male.2. The Emotional Intelligence Total Score in Male and Female is high in the rangebetween 135-139.3. The most Male possesses the Emotional intelligence at 14-15gm%Haemoglobinlevel it means at normal Hemoglobin level.4. The most Female possesses the Emotional Intelligence at 11-12gm% Hemoglobinlevel.5. The Male and Female Emotional Intelligence is occurring at different Hemoglobinand Blood Glucose level.6. Most of the Male and Female individual occur Emotional Intelligence at theirnormal Hemoglobin level.

177www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780RECOMMENDATION1. To increase the hemoglobin level in the students there is need to provide the mid daymeal including the distribution of Eggs and Biscuits.2. Taking regular health check up in schools and also in Higher education level todetect those students which having low blood glucose level and Hemoglobin level.3. To know the information about Hemoglobin and Blood Glucose level to the studentsthere is a monthly organization of the workshop.4. Arrange training programmer for Teacher or Lecturer to identify the students whichare having low blind glucose level and Hemoglobin.REFERNCES1. Abdullah,O.E.: Introducing Emotional Intelligence In The Nigeria Higher Education.2. Martha Topia And George E. Marsh (Psicothema 2006 Vol.18): The Effects Of SexAnd Grade-Point Average On Emotional Intelligence.3. By Deborah Mackin, Emotional Intelligence (2006).4. Habibollah Naderi, Rohani Abduilah, Tengku Aizan Hamid, Jamaluddin Shari(Journal Of American Sciences 2009 ) Intelligence, Creativity And Gender AsPredictors Of Academic Achievement Among Undergraduate Students.5. By Jennifer Me Dowall, Hemoglobin6. Jolene Feldman (NASA/ TM 2007): The Effects Of Blood Glucose Levels OnCognitive Performance.

178www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780IMPACT OF EMOTIONAL INTELLIGENCE ON TEAMWORK –A COMPARATIVE STUDY OF SELF MANAGED AND CROSSFUNCTIONAL TEAMSABSTRACTDR. HARMINDER KAUR GUJRAL*; JAYA AHUJA***Assistant Professor,Amity University.**Faculty,Amity University.The development of effective work team continues to be an area receiving attention intoday‟s organizations. One area which is emerging as a key indicator of team effectiveness isemotional intelligence. The role of emotional intelligence (EI) is important to improve teamperformance. The main objective of the present research is to study whether there exists arelation between emotional intelligence and team effectiveness with reference to selfmanaged and cross functional teams. The study helps to identify the impact of EI on teameffectiveness. Two teams in Information Technology (IT) sector have been studied tomeasure the impact of emotional intelligence on team effectiveness. Each team consists of 50employees. A survey has been conducted using the “Genos Short EI inventory” to measureemotional intelligence and “Team effectiveness Scale” to measure the teamworkeffectiveness of each member. Findings confirmed the relationship between these twovariables as Emotional intelligence was found to have strong correlation with teameffectiveness. The study also provides evidence of higher correlation of EmotionalIntelligence with self managed team in comparison to cross functional team. Simple linearregression identifies a positive impact of Emotional intelligence on team effectiveness in boththe teams.KEYWORDS: Emotional Intelligence, Team effectiveness, Self- managed teams, Crossfunctional teams.INTRODUCTIONEI has been described as “the capacity to effectively perceive, express, understand andmanage emotions in a professional and effective manner at work.”Several schools of thoughtexist which aim to accurately describe and measure Emotional Intelligence (E.I). Salovey andMayer (1990) initially conceived the concept and coined the term Emotional Intelligence,which was derived from Gardner‟s (1983) theory of multiple intelligences. This includedinterpersonal and intrapersonal intelligence which were used by Salovey and Mayer (1990) toform the basis of the theory of emotional intelligence, which they define as the “ability tomonitor and regulate one‟s own and other‟s feelings and to use feelings to guide one‟sthinking and action”. This definition identifies five main domains: knowing one‟s emotions,managing emotions, motivating oneself, recognizing emotions in others and handlingrelationships.

179www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Goleman (1998b) adapted Salovey and Mayer‟s (1990) model as a basis and explained thetheory of emotional intelligence and it‟s implications for everyday life. He divided EIcompetencies into five parts: Self-awareness, Self-regulation, Motivation, Empathy andSocial skills. Another researcher of the emotional intelligence construct is Reuven Bar-On.He coined the term "Emotional Quotient". He defined emotional intelligence asunderstanding oneself and others, relating to people, and adapting to and coping with theimmediate surroundings to be more successful in dealing with environmental demands(Bar-On, 1997).TEAMS : AN INTRODUCTIONGroups are fundamental units of the organization. Groups provide the basis for family living,protection, waging war, government, recreation and work. Group behaviour has ranged fromtotal chaos to dramatic success, but it is increasingly evident that groups enjoy their greatestsuccess when they become more productive units called teams. Teams are a growingphenomenon in today‟s workplace and extremely popular work design in all types oforganization (Stevens &Campion, 1994). Many organizations rely upon teamwork to achievegoals and meet the needs of clients (Luca &Tarricone, 2001) when teams are successful, theyhave potential to provide benefits to organization (Weisner &Kichuk, 1998 ) It is thereforeimportant for organization to strive for maintaining effective teams. Teamwork is defined byHarris and Harris (1996) as “…a work group or unit with a common purpose through whichmembers develop mutual relationships for the achievement of goals/tasks”. Teamwork meansindividuals work in a cooperative environment in the interests of a common goal by sharingknowledge/skills and being flexible enough to serve multiple roles. A team‟s success isbelieved to be dependent upon members of the team who work together and contribute to theoverall Purpose or goal in hand.Why Emotional Intelligence is important in Teamwork?Emotional intelligence is important among team members to carry out their roles and tasks ina cooperative and collaborative manner. It helps in reducing conflicts and can create a morecomfortable and cooperative work environment. It is certainly worth assessing your teams ontheir emotional intelligence levels and if found lacking, there are workshops and seminarsthat can help your teams redirect their thinking patterns and behavior and change for thebetter. Team members need to be aware of their feelings as they may allow uncontrolledemotions to effect the dynamics and culture of the team. Effective team members are selfconfident,which is reflective of their own emotional self-awareness, and ability to controltheir emotions. The skill of regulating emotions during work stress and conflict would helpon smoothening the project and enhance working relationships effectively with othermembers. Team members are not only responsible for their own motivation but also play akey role in motivating the team and colleagues. Empathic team members think from variouspoints of views and they accept the diversity of people.Emotional Intelligence and Team Role EffectivenessTeam management is the most challenging task since it involves complex processes.A number of factors may affect team effectiveness even at its early stage of development.There are studies that look into the role of positive and negative emotions in team. George(1990) investigating personality, affect and behaviour in groups asserted that affective tone;

180www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780the ongoing emotional reactions of work team members, was found to affect the group.Positive affective tone groups had lower absenteeism, and less negative tone teams exhibitedmore helping behaviors.Druskat and Wolff (2001) asserted that teams “must be mindful of the emotions of itsmembers, its own group emotions or moods, and the emotions of other groups and theindividuals outside its boundaries.” They argued that EI does not guarantee team performancebut enables teams to establish norms for group maintenance behaviours, which involvebuilding trust, group identity, and group efficacy. “Group emotion results from both thecombinations of individual-level affective factors that group possess as well as from group orcontextual-level factors that define or shape the affective experience of the group” (Kelly andBarsade, 2001). A study on emotions and team processes by Peslak (2005) is beneficial inunderstanding the impact and evolution of emotions in teams. He found that team emotions atthe beginning of the project were more positive and negative, however, they increased inintensity over the project life with negative emotions grew more than positive emotions. Healso found that the initial emotions did not significantly affect overall team processes but thefinal emotions did. Studies have shown that EI affects team or group performance.Joe Luca & Tarricone ( 2001) suggest that skills needed for successful teamwork can beviewed from different perspectives, ranging in nature from “Visible to Invisible”. Aprogrammer in a team has technical skills which can be tested for competence, and classifiedas a “visible skill”. Also, having acceptable generic and team skills is highly desirable but notalways easily testable i.e. testing for time management, problem solving or collaborationskills can be difficult. Another skill set, known as „Emotional Intelligence‟ is increasinglybeing promoted as being necessary for successful teamwork. Emotional intelligence consistsof five main elements - self-awareness, self-regulation, empathy, motivation and social skillswhich are difficult to test for, and certainly are not as “visible” as technical skills. The studyshowed a compelling relationship between students‟ emotional intelligence and their abilityto work effectively within a team. Visible skills and emotional intelligence should both beconsidered when selecting team members for a collaborative environment.Goleman (1998) demonstrated how teams with higher collective EI outperform teams withlower collective EI. Druskat and Wolff (2001) define emotional intelligence in groups as “ateam atmosphere in which the norms build emotional capacity (the ability to respondconstructively in emotionally uncomfortable situations) and influence emotions inconstructive ways”Druskat & Wolff (2001a: 2001b) expanded on EI and developed a framework forunderstanding EI for SMWTs in particular. They suggest that team EI norms fall along threecategories: Individual, Group and Cross-boundary. Individual norms include interpersonalunderstanding, perspective taking, confronting team members, and caring. Group level normsinclude self-evaluation, seeking feedback, creating resources for working with emotions,creating an affirmative environment, and problem solving. The cross-boundary level normsinclude organizational understanding and building relationships.

181www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780OBJECTIVES OF STUDY‣ To study the level of Emotional intelligence of the members of self managed andcross functional team‣ To measure the team effectiveness of members in self managed teams and crossfunctional teams‣ To study the relationship between Emotional Intelligence and team effectiveness ofself managed teams and cross functional teams‣ To study the impact of Emotional Intelligence on team effectiveness of self managedand cross functional teamsRESEARCH METHODOLOGYSample Size: total sample size is 100.50 employees each from the Self managed teams and Cross functional teams in a softwarecompany in Delhi.Sample Design: Convenience samplingRESEARCH INSTRUMENTTwo standardized questionnaires were used as instruments in the study, this included “GenosEmotional Intelligence Inventory-Short” to measure the emotional intelligence of each teammember and “Team effectiveness questionnaire” developed by ETCT Team under theguidance of Udai Pareek.DATA ANALYSISData was analyzed using Pearson correlation coefficient and Simple Regression.PearsonCorrelation Coefficient was used to assess the relationship between EQ (and factors of EQ)and Teamwork effectiveness. The correlation was conducted between EQ (EI) and Selfmanaged teams and EQ and Cross Functional teams separately. In addition to correlation,Simple Linear regression analysis has also been done to study the impact of EmotionalIntelligence on self managed team and cross functional teams.

182www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ANALYSISPearson Correlation between EI and Self Managed teamsCorrelationsEITeamworkEI Pearson Correlation 1 .700 **Sig. (2-tailed) .000N 50 50Two Pearson Correlation .700 ** 1Sig. (2-tailed) .000N 50 50**Correlation is significant at the 0.01 level (2-tailed).INTERPRETATIONThe analysis shows that employees who are under self managed teams are emotionallyintelligent and their emotional intelligence competencies are positively correlated toteamwork effectiveness. The r value is .70 which is significantPearson Correlation between EI and Cross Functional TeamsCorrelationsEITeamworkEI Pearson Correlation 1 .607 **Sig. (2-tailed) .000N 50 50Teamwork Pearson Correlation .607 ** 1Sig. (2-tailed) .000N 50 50**. Correlation is significant at the 0.01 level (2-tailed).

183www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780INTERPRETATIONThe analysis shows that employees under Cross Functional teams are emotionally intelligentand their emotional intelligence competencies are positively correlated to teamworkeffectiveness. The r value is .60, p value < .05.While comparing the relationship of Emotional Intelligence with self managed teams andcross functional teams, the results state the higher correlation of Emotional Intelligence withself managed team as compared to cross functional team. It shows self managed teams aremore emotionally intelligent and their emotional intelligence competencies contributes tohigh teamwork effectiveness as compared to cross functional teams.REGRESSION ANALYSISRegression analysis has also been done to study the impact of EI on teamwork effectivenessof self managed teams and cross functional teams i.e. to what extent EI contributes toeffectiveness of teamwork. Simple linear regression was done to examine the effect of EI onteam effectiveness. The results revealed a significant effect of EI on teamwork on both ofteams i.e. self managed teams and cross functional teams.For Self managed teams: r square= 0.7 which shows around 70% of variance in teameffectiveness. The regression model is significant as the p value is less than .05. The betacoefficient of emotional intelligence is β= .386, p value

184www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Emotional Intelligence has higher correlation with self managed teams (r=.70) compared tocross functional team (r= .60).Another objective was to study impact of emotional intelligence on team effectiveness. Boththe teams have positive impact of emotional intelligence on team effectiveness. Teameffectiveness leads to high performance. Both the teams being from one software companyindicate that the organization has a good environment for team building. The study supportsmajor impact of emotional intelligence on self managed teams (β = .386, p

185www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Harris, P.R & Harris.K.G (1996). Managing effectively through teams. Team PerformanceManagement: An International Journal, 2, 23-36Kelly et al., (2001) “Mood and Emotions in small groups and work teams”. OrganizationalBehavior and Human Descision Processess, 86, 99-130.Mayer . J.D& Salovey,(1997),‟What is Emotional Intelligence. ,New YorkPareek. U ETCT Team, „Team Effectiveness Scale‟, Training Instruments in HRD andOD,686-688Peslak, Alan.R(2005). Communications of the ACM, The educational Productivity Paradox,48:10, 111- 114.Sahu R.K (2010) Group dynamics and team building. Excel Books.Salovey, Peter; & Mayer, John D. (1990). Emotional Intelligence. Imagination, Cognition&Personality, 9 (3) 1989; 1990, 185-211.Weisner, W.H., & kichuk, s.L (1998) Work teams: Selecting member for optimalperformance. Canadian Psychology, 39, 23-32

186www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780AN EMPIRICAL EVALUATION OF MONEY TRANSFER SERVICESIN INDIADR.M.LATHA NATARAJAN*; DR. M.G.SARAVANARAJ**; R. SERANMADEVI***ABSTRACT*Head/Professor, Department of Management Studies,Vivekanandha college of Engineering for Women, Tiruchengode.**Head/Professor, Department of Management Studies,Muthayammal Engineering College, Rasipuram.***Faculty, Department of Management Studies,CMS College of Engineering, Namakkal.Money is the magnate of any person and it designed the life style of person in the world. Toearn and save the money for their dependence the peoples are ready to employ at any part ofthis global village. To study the effectiveness of the usage of money transfer facility over theglobal village it is necessary to go for many researches. This paper entitled “An EmpiricalEvaluation of Money Transfer Services”, with specific focus on respondents’ feedback is theone under this category which is mainly focused on the various money transfer services andsatisfaction of customers towards those facilities. This study is purely descriptive in natureand purposive sampling method is used; only primary data surveyed through structuredquestionnaire is used for this study. Data analysis was carried out including parametric andnon parametric tools and findings are listed down. Suitable suggestions have been provided.The tools used in this study were percentage analysis, Ranking Method, Weighted AverageMethod, Correlation, Chi-Square Test, F Test, ANOVA, and Sign Test. The money transferfacility ensures the better standard of living of the respondents’ dependents. It will improvisethe economy’s foreign exchange wealth. Not only the person as individual but his dependentsas his home and the nations as a whole get benefited because of the effective money transferfacility.KEYWORDS: Money Transfer, foreign exchange, parametric tools, Correlation, ANOVA,Sign Test.INTRODUCTIONMoney transfer is a facility which enables customers to transfer money from a locationabroad to India from India to locations abroad and between locations in India. Moneytransfers would fall in to the following two broad groups.

www.zenithresearch.org.in187ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Money Transfer ServicesExternalInternalInward Foreign RemittanceOutward Foreign RemittanceAgent SpecificXpress MoneyInstant Cash‘ZOHA’ Internationalmoney transferTimes of MoneyNon-Agent SpecificFirst remitMoneygramWire MoneyDraft ServicesTrans CashForexTransactionsI. EXTERNAL MONEY TRANSFER SERVICES - External money transfers enablecustomers to transfer funds from foreign locations to beneficiaries in India and remittance tobeneficiaries abroad from India. These remittances fall in to the following two groups.A. INWARD FOREIGN REMITTANCES - This facility enables the customer to transferfunds to India from countries abroad.1. AGENT SPECIFIC SERVICE: Agent Specific means that this transfer is specificallyfor a particular branch/centre and the addressee come to this specified branch/centre to collectthe money. It won’t be made available from any other branch2. NON-AGENT SPECIFIC SERVICE: It means that this transfer is not specified for aparticular branch /centre and the addressee can be receiving it from any branch with properidentity.B. OUTWARD FOREIGN REMITTANCES1. WIRE MONEY - Wire money is the facility offered by us to enable the customer to remitthe funds outside India to any other country for credit of the beneficiary’s designated bankaccount abroad through banking channel subject to the exchange control regulations of thatcountry.2. DRAFT SERVICES - Its procedures are the same as the wire transfer. As per the service,we will issue Demand draft, only in any of 25 major currencies, for effecting paymentabroad. It should be send by the customer directly to the beneficiary abroad.II. INTERNAL MONEY TRANSFERA. TRANS CASH - Trans cash is a facility offered to our gold loan and depositcustomers to transfer their loans from one branch to another. After completing the proceduresof gold loan/deposit loan, the said fund can be transferred to any branch specified by thecustomer.

www.zenithresearch.org.in188ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780B. FOREX TRANSACTIONS - Franchisee offices can undertake encashment offoreign currency notes.OBJECTIVESTo study the various money transfer services and satisfaction of customers towardsthe various money transfer facilities.To find out the frequency of money transfer transactions and to examine themaximum limit involved for every money transfer transactions.To study the mode of disbursement and the cost incurred for the same.To check the security and safety procedural limit and delay around time.RESEARCH METHODOLOGYResearch methodology is a way to systematically solve the research problem. This study isbased on descriptive method. The sample size under the study is 75. Purposive samplingtechniques are used to collect the data by circulating well structured questionnaire withconcrete questions. Only primary data are used for the study. The following are the analyticaltools used to find out results and relationships between the variables, they are PercentageAnalysis, Ranking Method, Weighted Average Method, Correlation, Chi-Square Test, F Test,ANOVA, and Sign Test.PERCENTAGE ANALYSIS – TABLE 1SNoOptionsNo ofrespondents%S NoOptionsNo ofrespondents%AgeGeographical Location1 20-30 8 11 1 UAE 18 242 30-40 25 33 2 USA 20 273 40-50 30 40 3 UK 22 294 50&above 12 16 4 OTHERS 15 20GenderNumber of Dependents1 Male 48 64 1 2 12 162 Female 27 36 2 3 20 27Marital Status 3 4 19 251 Single 35 47 4 5 11 15

189www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802 Married 40 53 5 5& above 13 17Educational QualificationYear of customer retention1 School 4 6 1 2 12 162 UG 16 21 2 4 18 243 PG 30 40 3 6 20 274 Professionals 25 33 4 6&above 25 331 SelfemployedOccupationMonthly Income10 13 1 50000-100000 28 372 Employees 22 30 2 100000-150000 20 273 Profession 25 33 3 150000-200000 17 234 Others 18 24 4 200000 &above10 13Source: Primary DataINTERPRETATIONFrom the above table it is inferred that the maximum number of respondents are falls underthe Age group of 50&above and the minimum number of respondents finds in 20 – 30 agegroup. 64% of respondents belong to the male category. 53% of respondents belong to themarried category and 47% to the single category. Mostly Post Graduate and professionalQualification peoples are highly preferred the money transfer services. The people those whoemployed in different part of the world as professional or employees are making use of thisfacility more than others. This money transfer facility is maximum covered the peoplebelongs to upper middle income group between Rs 50,000/- to Rs 1,50,000/- as their monthlyincome. Nevertheless of the location it is successfully scatted in all the regions. It is quiteunimportant that number of dependents and the usage of money transfer facilities.TABLE – 2 - RANKING METHODSNo Options Total RankAttractive Services1 External 40 12 Internal 20 23 Both 15 3

190www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Source: Primary DataINTERPRETATIONInternal money transfers1 Inward 50 12 Outward 15 23 Both 10 3Frequency of Usage of External Money Transfers1 5 8 42 5-10 20 33 10-15 22 24 15&above 25 1Frequency of usage of Internal Money Transfers1 10 10 42 10-20 15 33 20-30 20 24 30&above 30 1From the above table it is inferred that the respondents are given first rank to externalservices, in that preferred inward services than the outward services. Both internal andexternal money transfers the respondents’ frequency of usage are likely to be more. Withreference to outward money transfer services especially cost of wire money services therespondents’ get satisfied.TABLE -3 - WEIGHTED AVERAGE RANK METHODS No Options Weighted Average RankInward Money Transfer Services1 Xpress money 312 22 Instant cash 286 3.53 First remit 286 3.5

191www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57804 Money gram 319 15 Zoha international MT 275 5Source:PrimarydataINTERPRETATIONCustomer Satisfaction Factors1 Parent company 230 22 Agent 218 33 Sending centre 155 44 Password 286 15 Turnaround time 144 56 Maximum amount 92 6Safety/ Security1 Xpress money 345 22 Instant cash 330 4.53 First remit 330 4.54 Money gram 355 15 Zoha international MT 320 76 Wire money 317 87 Draft services 335 38 Trans cash 323 6From the above table it is inferred that among the inward money transfer facilities the moneygram facility stands at first, second to Xpress money, instant cash and first remit facilitiesshares the equal rank at the third place. While ranking the factors influencing thesatisfaction the security factor “password” protection stands at the first place and parentcompany, agent and sending centre holds the consecutive places. Turnaround time and themaximum amount involved in money transfers preferred at least.The ranking are given by the respondents reveals that money gram facilities stands at first,Xpress money and Draft services holds the next positions in the order, Instant cash and firstremit shares the 4 th position, due to some complication in electronic mode Zoha International

192www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780services and Wire Money services preferred very poorly. Trans cash applied only for existingcustomers and it stands at the 6 th place.CHI SQUARE TESTI. Analysis for finding the relationship between frequency of usage of inward money transferand occupationII. Analysis for finding the relationship between gender and frequency of usage of externalmoney transferIII. Analyzing the relationship between age and customer retention.NULL HYPOTHESISI. There is no significant relationship between occupation and frequency of usage of inwardmoney transfer.II. There is no significant relationship between gender and frequency of usage of externalmoney transfer.III. There is no significant relationship between age and customer retention.TABLE 4 - CHI-SQUARE TABLEFactorsCalculatedvalueTablevalueDegrees offreedom @5%RemarkInward money transfer &Occupation0.75409 23.589 (c-1) (r-1) =.(4-1) (4-1) =9CV

193www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE – 5 - F TEST TABLEX 1 (InwardTransfer)MoneyX 2 (CustomerSatisfaction)X 1 -x¯1 (X 1 -x¯1) 2 X 2 -x¯2 (x 2 -x¯2) 232 16 17 289 3 920 16 5 25 3 914 9 -1 1 -4 165 18 -10 100 5 254 9 -11 121 -4 160 7 0 0 -6 36n 1 = 5 n 2 = 6 536 111Source: Primary Data(s 1 ) 2 =∑(x 1 -x¯1) 2 ÷ n 1 -1 = 536÷4=134 ; (s 2 ) 2 =∑(x 2 -x¯2) 2 ÷n 2 -1 = 111÷5=22.2F= (s 1 ) 2 ÷ (s 2 ) 2 ~fn 1 -1, n 2 -1 = 134÷22.2 = 6.04Factor Calculated Ftest valueTableValueDegrees of freedom@5%RemarksInward Money Transfer &Customer retention6.04 5.19 (n1-1, n2-1) (4,5) CV > TV;SignificantSince the calculated value is greater than the table value i.e., 6.04>5.19, so we may reject ournull hypothesis. There is significant relation between inward money transfer services andcustomer retention.F – TEST - INTERNAL AND EXTERNAL MONEY TRANSFERHo: There is no significant relationship between the internal and external money transferfacilities.TABLE - 6 INTERNAL AND EXTERNAL MONEY TRANSFERX 1 (InternalTransfer)MoneyX 2 (External MoneyTransfer)X 1 -x¯1 (X 1 -x¯1) 2 X 2 -x¯2 (x 2 -x¯2) 240 25 25 625 10 10015 42 0 0 27 729

194www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578010 5 -5 25 -10 1008 2 -7 49 -13 1692 1 -13 169 -14 196n 1 = 5 n 2 = 5 868 1294X¯1=∑X 1 ÷n = 75÷5=15; x¯2=∑x 2 ÷n = 75 ÷ 5=15(s 1 ) 2 =∑(x 1 -x¯1) 2 ÷ n 1 -1 = 868÷4=217; (s 2 ) 2 =∑(x 2 -x¯2) 2 ÷n 2 -1 = 1294÷4=323.5F= (s 1 ) 2 ÷ (s 2 ) 2 ~fn 1 -1, n 2 -1 = 1.49FactorCalculated Ftest valueTablevalueDegrees offreedom @5%RemarksInternal Money transfer &External Money Transfer1.49 6.39 (n2-1), (n1-1)(4,4)CV

195www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57803 2 2 1 16 2 1 0 03 2 1 0 15 2 1 1 03 2 2 1 04 1 2 2 02 2 3 1 0Source : Primary DataSource of variation SS DF MS F ratio 5% limit Resultbetween sample 61 (5-1) =4 6÷4=1.5 1.5÷0.475=3.15Within sample 19 (45-5) =40 19÷40=0.475F(4,40)=2.61 RejectH0Total 80 (45-1) =44The above table shows that the calculated value of F is 3.15 which is greater than the tablevalue of 2.61 at 5% level with DF being V1=4,V2=40 .This analysis did not support the nullhypothesis of no differences in sample means. We may conclude that there is significantdifference between the various money transfer services.SATISFACTION ON THE BASIS OF MAXIMUM AMOUNT INVOLVED FORMONEY TRANSFERHo: There is less satisfaction over the maximum amount involved for money transferservices.TABLE - 9 SATISFACTION ON THE BASIS OF MAXIMUM AMOUNT INVOLVEDFOR MONEY TRANSFERA(Expressmoney)B(Instant cash) C(First remit) D(Money gram) E(ZOHAInternational)4 6 3 1 14 8 2 1 03 7 4 1 03 10 2 1 0

196www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805 8 1 0 0Source: Primary DataCorrection factor= (T) 2÷n = (75)2÷25=225; Total SS=∑xij2-(T) 2÷n = 427-225=20SS between = ∑ (Tj) 2÷nj-(T) 2÷n = 408-225=183;SS within = ∑xij2-∑ (Tj) 2÷nj = 427-408=19ONE WAY - ANOVA TABLESourcevariationofSS DoF MS F ratio 5% FlimitBetween sample 183 (5-1)=4 183÷4=45.75 45.75÷0.95=48.15 F(4,20)Within sample 19 (25-5)=20 19÷20=0.95=2.87Total 202 24Since the table value is less than the calculated value i.e, 2.87

www.zenithresearch.org.in197ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780x¯=∑x÷n = 75÷4=19; y¯=∑y÷n = 75÷4=19r=∑(x-x¯) (y-y¯) ÷ ∑(x-x¯) 2 ∑(y-y¯) 2 = 164÷22500= +0.007Since r=0.007 there is almost no correlation between the frequency of usage of internal andexternal money transfer services.SIGN TESTMONEY TRANSFER REMITTANCE TO THE BENEFICIARY BASED ONNUMBER OF DEPENDENTS.Ho: There is no significant relationship between money transfer remittance and number ofdependents.Total no of (+) signs=5; Total no of (-) signs=5; Sample size (n) =10P=no of (+) symbols; P=5÷10=0.5; q=1-P=1-0.5=0.5; p= n÷n o of observations =10÷10=1|z|=p-P÷ pq÷n ~ N (0, 1) =1-0.5÷ 0.5*0.5÷10 = 0.5÷0.1581=3.16 ~ N (0, 1)TABLE – 11 MONEY TRANSFER REMITTANCE TO THE BENEFICIARY BASEDON NUMBER OF DEPENDENTSX (MT Remittance) Y (No of Dependents) SIGN (X-Y)8 40 -20 15 +22 10 +25 8 +10 2 +15 25 -20 42 -30 5 +Source: Primary Data0 2 -0 1 -Table value can be obtained from the large sample at 1% level of significance i.e., 2.58. Sincethe table value is less than the calculated value, we may reject our null hypothesis i.e., there is

198www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780significant relationship between money transfer remittance to the beneficiary and therespective number of dependents of the respondents.FINDINGS Maximum numbers of respondents are falls under the age group of 50&above, malecategory and married category. Majority of respondents are PG qualified and professionaloccupation with average monthly income lies between Rs 50,000/- to Rs 1,50,000/- aremaking use of this facility. Mostly the customers are retained for more than 6 years. Respondents given first preference to external and inward services. Since Frequency ofusage of external money transfer is more than 15. Frequency of usage of internal moneytransfer is more than 30. Most of the respondents are satisfied with the cost collected forwire money services, money transfer remittance and with defaults money refunded. Most of the respondents given first weightage to money gram and in relation to security“Password” secured the first place. Socio economic factors like gender, age, occupation hasno effect on money transfer services usage. It is concluded that the socio economic factors plays only a minor role in the frequencyusage of both internal as well as external money transfer facilities. Age is not making anyinfluence in the customer retention strategy. Nevertheless of age, all the age group peoplesare making use of these facilities. There is significant relation between inward money transfer and customer retention,between geographical location and cost collected for wire money services. There issignificant relationship between various money transfer services. No such relations findbetween the internal and external money transfer transactions There is high satisfaction over the maximum amount involved for money transferservices. There is significant relationship between the money transfer remittance to thebeneficiary and the respective number of dependence of the respondents.SUGGESTIONS‣ From the study it is found that minimum number of respondents is in the age group of 20-30 and poor representation from the female category. So it is necessary to add new featureson money transfer services to attract the young customers and introduce plans to attract morefemale customers.‣ By providing effective awareness and training program it is good to cover all thesegments of people to make use of the facility offered by them.‣ This facility of money transfer is alternative used by the huge income holders, byproviding some innovative and strategic plan it is highly possible to attract all those group ofpeople.‣ From the study it is found that frequency of usage of external money transfer is less thaninternal money transfer services. So necessary steps to be taken for increasing the frequencyof usage of external money transfer services.

199www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780‣ From the study it is found that some of the respondents are highly dissatisfied with costcollected for wire money services. So necessary steps must be taken for decreasing thedissatisfaction level among the respondents.CONCLUSIONThe world now seems to be a global village. Almost all the segment people like to travel allover the globe to earn money by proving their efficiency. Moreover it is considered as themain source of inward foreign money remittance to the country. So it is necessary to built upand provide inventive technology to the user to enjoy the benefits. But even more it isnecessary to develop much more facilities and services in relations with money transfers asquickly and safely as possible. The customers also are skeptical or apprehensive about the useof online money transfer, as they doubt the security of such a transaction. It may concludethat there is tremendous demand for fast means of transferring money from abroad by Indiansin particular.REFERENCESApte.P.G. (2007) 4 th edition, “ International Financial Management”, published by TMHpublisher, New Delhi.Donald R Cooper, and P S Schindler, “Business Research Methods”, 9 thMcGraw -Hill Publishing Company Ltd., 2007.Edition, TataDr.Senapathi.R (2010),1st Edition, “Business Research Methods” published by LakshmiPublications, Chennai.Jhingan.M.L. (2007),7 th Edition, “ Money, Banking, International Trade & Public Finance”Published by Vrinda, New Delhi.Kothari. C.R.(2009),2 nd Edition, “Research Methodology - Methods & Techniques”,published by New Age International Pvt Ltd, NewDelhi.Meir Kohn(2007), 2 nd Edition, “Financial Institutions and Markets”, published by OxfordUniversity press, New Delhi.Paneer Selvam, (2007) “Research Methodology”, Prentice Hall of India Pvt. Ltd / PearsonEducation, New Delhi.Ramakrishna Pillai, (2000), “Subsidiary statistics”, published by Vikas publications, Kollam.Zikmund, “Business Research Methods”, 7 th Edition, Cengage Learning India Pvt. Ltd., 2007.

200www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTFDI IN RETAIL SECTOR : CONCERN FOR AAM AADMIDR. RAJESH KESARI*; ABHISHEK KUMAR SRIVASTAVA***Associate Professor, Director & Head, Faculty of Management & Commerce,Nehru Gram Bharti University, Jamunipur – Kotwa, Allahabad,**Research Scholar, Commerce , Nehru Gram Bharti University,Jamunipur - Kotwa, Allahabad.A US study has established increasing poverty in states where Wal-Mart has expandedoperations. But in India, not a single independent study has examined the impact of organisedretail on 12 million small shopkeepers, 40 million hawkers and 200 million small farmersCongress president Sonia Gandhi‘s letter to Prime Minister Manmohan Singh asking him notto hurry with the opening up of the retail sector to foreign direct investment (FDI) has failedto ruffle any feathers. Letter or no letter, the blitzkrieg within supermarket malls shows nosigns of abating. At stake is the livelihood security of 12 million small shopkeepers, 40million hawkers and at least 200 million (of the 600 million) small farmers. A small sacrificefor ensuring the success of the organized retail boom! In her letter, Gandhi expressed herconcern for the aam aadmi (common man):―Entry of foreign enterprises into the retail trade will not hurt our small shopkeepers but willcreate lot more employment,‖ he keeps reiterating. But the evidence is to the contrary.Organized retail occupies 92% of the retail business in the United States, and 70% in Britain.And this has come about at a heavy social, economic and environmental cost. Meanwhile, allkinds of figures are being tossed about (ostensibly by industry itself, or by its marketingconsultants) to justify the entry of organized retail. One estimate points to a growth of US$21.5 billion in organized retail by 2010; another pegs it at $ 30 billion. A marketing and retailconclave, organized by Technopak Advisors, took the figures through the roof with estimatesshowing that modern retail would jump from the existing US$ 12 billion to US$ 75 billion by2011, and as much as US$ 175 billion by 2016.[1]KEYWORDS: FDI, Retail , FDI in Multi-brand Retail.INTRODUCTIONThe UPA Government is considering the opening up of the retail trade sector to FDI. TheNDA government had also proposed steps to open up this sector to foreign investment duringits tenure. Multinational retail chains like the Wal -Mart have been lobbying with theGovernment in this regard. The Left Parties, however, believe that allowing FDI in retailtrade would have a negative impact on the already grim domestic employment scenario.Since employment generation is the cornerstone of the Common Minimum Programmed ofthe UPA, inviting foreign capital in sectors, which would have a debilitating impact ondomestic employment, would go against the spirit of the CMP. Moreover, there are otherserious issues related to FDI in retail trade that warrant greater caution.

www.zenithresearch.org.in201ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Our country‘s 1.2 billion population is a long sought after market by giants like Walmart,Costco, BJ‘s, Carrefour, Tesco etc. Owners of the small mom and pop type shops have areason to fear these giants, which source their goods in bulk, cheaply from across the world.China has been one of the biggest supplier to these giant chains and stands to benefit from theIndian market. Our governments‘ argument is that more investment in the retail sector willhelp set up efficient supply chains which would improve farm output and farmers income,lowering consumer prices.[2]'AAM AADMI' MISSION- EMPOWERING INDIAIndia is one the most progressive nation of the world, making waves in the field of scienceand technology, armed forces, nuclear energy etc. Global multinationals and growingindustries have changed the face of urban India with people being employed in corporate,having a fairly high standard of living and an increased purchasing power. But this just showsthe glorious side of the story for India. Rural India still struggles for the basic necessities oflife like food, drinking water, sanitation and education. Infect, a large population of the urbanareas also struggle for a healthy survival. Thus, for the upliftment of the poor "common man"of rural India, the Congress Government has adopted certain policies, and has aptly named it'Aam Aadmi' meaning the common man.The Government of India has taken giant leaps in helping the poor people by managingoperations and resources on an extremely huge scale.[3] . Over the years India has risen tobecome an international hub but still there exists tremendous disparity between the rich andthe poor. And the only way India can become a formidable force in the world is byempowering the common man.BUDGET: 2011-12: EXPECTATIONS: WATCH OUT !The presentation of the Indian Budget 2011-12 is round the corner and already theexpectations of the "aam aadmi" (common man), bearing the brunt of high inflation, and theindustry, fearing drop in investment and productivity due to high borrowing cost, havesoared.

www.zenithresearch.org.in202ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780It would be interesting to see how Indian Finance Minister Pranab Mukherjee uses the Budgetto ward off apprehensions on the current macroeconomic challenges - high inflation, highinterest rates resulting in liquidity crunch in the system, elevated current account deficit anduncertainties around future Foreign Institutional Investment flows and the overall weakerbalance of payments situation — and at the same time extend sops to inflation battered ―aamaadmi‖.[4]FDI IN RETAIL: Most of the recent surge in food prices is either on account of supplycrunch in the farm production or hoarding of stock by intermediaries. Knowing well that FDIin multi-brand retail segment could supplement and compliment Government's efforts to debottleneckthe supply chain hindered by ineffective distribution channel, it is unlikely thatMukherjee would give green signal to FDI in retail, which is a politically sTHE INDIAN SCENARIOTrade or retailing is the single largest component of the services sector in terms ofcontribution to GDP. Its massive share of 14% is double the figure of the next largest broadeconomic activity in the sector. (see Table 1)

203www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 1: COMPONENTS OF SERVICE SECTOR IN INDIAComponentsShare % inGDP (2002-03)Growth during2002-03Construction 5.3 7.3Trade 14.0 4.5Hotels & Restaurants 1.1 4.0Railways 1.1 5.7Other Transport 4.3 6.0Storage 0.1 -7.8Communications 3.5 22.0Banking & Insurance 6.9 11.6Real Estate,6.1 5.9Business/LegalServicesDefence 5.9 5.3Other Community &7.8 6.2Social ServicesTotal 56.1 7.2Source: Presentation to FICCI by MBN Rao (Chairman, Indian Bank): ―Strategy forFinancing Service Sector‖ (Sept. 15, 2004)The retail industry is divided into organized and unorganized sectors. Organized retailingrefers to trading activities undertaken by licensed retailers, that is, those who are registeredfor sales tax, income tax, etc.These include the corporate-backed hypermarkets and retail chains, and also the privatelyowned large retail businesses. Unorganized retailing, on the other hand, refers to thetraditional formats of low-cost retailing, for example, the local kirana shops, owner mannedgeneral stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.(see Table2)

204www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 2: GROWTH OF RETAIL OUTLETS IN INDIA (‘000)Outlets 1996 1997 1998 1999 2000 2001Food2769.0 2943.9 3123.4 3300.2 3480.0 3682.9RetailersNon-Food5773.6 6040.0 6332.2 6666.3 7055.5 7482.1RetailersTotal8542.6 8983.6 945506 9966.5 10534.4 11165.0RetailersSource: P.G.Chengappa, Lalith Achoth, Arpita Mukherjee, B.M.Ramachandra Reddy andP.C.Ravi, Evolution of Food Retail Chains: The Indian Context, 5-6th Nov. 2003,www.ficci.comUnorganized retailing is by far the prevalent form of trade in India – constituting 98% of totaltrade, while organised trade accounts only for the remaining 2%. Estimates vary widely aboutthe true size of the retail business in India. AT Kearney estimated it to be Rs. 4,00,000 croresand poised to double in 2005.2 On the other hand, if one used the Government‘s figures theretail trade in 2002-03 amounted to Rs. 3,82,000 crores. One thing all consultants are agreedupon is that the total size of the corporate owned retail business was Rs. 15,000 crores in1999 and poised to grow to Rs.35,000 crores by 2005 and keep growing at a rate of 40% perannum.3 In a recent presentation, FICCI has estimated the total retail business to be Rs.11,00,000 crores or 44% of GDP4. According to this report dated Nov. 2003, sales nowaccount for 44% of the total GDP and food sales account for 63% of the total retail sales,increasing to Rs.100 billion from just Rs. 38.1 billion in 1996. Food retail trade is a verylarge segment of the total economic activity of our country and due to its vast employmentpotential, it deserves very special focused attention.PRESENT STATUS OF RETAIL SECTOR IN INDIAThe retail Industry can be divided into organized and unorganized sector. Organized Sectorinclude the corporate-backed hypermarkets and retail chains and also the privately ownedlarge retail business. On the other hand, unorganized sector include small kirana shops,pan/bidi shops, vegetables shops, owner manned general stores, handcarts and pavementvendor etc.Organized sector, which is in the initial stage, covers only 3% of total retail market, whether,unorganized sector, covers 97%. But, more interesting issue is that organized sector isgrowing rapidly by 30% annually and it is expected that it will account for 10% share of totalretailing by 2011.The table 3 given an outline about fr augmented Indian retail sector:

205www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE-3 CLASSIFYING INDIAN RETAILModern Format of Indian RetailersSupermarketsTraditional Format of Indian RetailersKiranas, Traditional Mom and Pop stores,KiosksHypermarketsDepartmental StoresStreet MarketsExclusive/Multiple brand outletsCompany owned Company operatedSource: ICICI Bank presentation in the seminar held by FICCI.on23.02 .04RETAIL SECTOR AND EMPLOYMENTRetail sector is the second largest Employment provider in the country Organized RetailSector employs roughly 5 lakh people, whereas the unorganized sector employs nearly 4crores .TABLE 4 EMPLOYMENT IN ORGANIZED RETAIL SECTOR1983-94 1994-2007Government Sector 1.53 -0.57Private Sector 0.44 1.30Organized Sector 1.20 -0.03Source: Economy Survey, 2009-10GROWTH POTENTIALITY IN INDIA RETAIL SECTORRetail sector which constitutes millions of consumers has great potential of flourish. ATKearney, a well known international management consultancy, estimated the retail trade to be4,00,000 crores .The organized sector presently covers Rs.280 billion of retail market and it isexpected that it will cross Rs 1000 billion mark by 2010.CURRENT STATUSIndia‘s retail industry accounts for 10 percent of its GDP and 8 percent of the employment toreach $17 billion by 2010. The Indian retail market is estimated at US$ 350 billion. But

206www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780organized retail is estimated at only US$ 8 billion. However, the opportunity is huge-by2011, organized retail is expected to grow at 6 per cent by 2011 and touch a retail business of$ 17 billion as against its current growth level of 3 per cent which at present is estimated tobe $ 6 billion, according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping point. India iscurrently the ninth largest retail market in the world. And it is names of small towns likeDehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon It isestimated that it will cross the $650-billion mark by 2011, with an already estimatedinvestment of around $421 billion slated for the next four years soon.FDI IN RETAIL: IMPACT ON INDIA?The government has published discussion paper in the hope of creating a debate about FDI inretail. It is an issue that evokes strong responses on either side. On CNBC-TV18‘s specialshow India Tonight, Karan Thapar asks what impact could it have on corner shops, onemployment, on agriculture and on investment as a whole. That is with the Chief Executiveof ICRIER, Rajiv Kumar; the CEO of Aditya Birla Retail, Thomas Varghese; the NationalSecretary General of Confederation of All India Traders, Pravin Khandelwal and theSecretary of the Department of Industrial Policy and Promotions (DIPP), RP Singh[5].FDI IN MULTI-BRAND RETAIL: THE NEXT BIG THING IN REFORMS, BUTROADBLOCKS PERSISTEconomic Survey 2010-11, tabled in Parliament on February 25, had this to say about theretail sector: "Permitting FDI (foreign direct investment) in retail in a phased mannerbeginning with metros and incentivizing the existing retail shops to modernize could helpaddress the concerns of farmers and consumers. FDI in retail may also help bring in technicalknow-how to set up efficient supply chains which could act as models of development." TheSurvey is essentially talking about multi-brand retail -- the Walmarts and the Carrefours.India permits 100% FDI in cash & carry and wholesale trading (which is business-tobusiness)and 51% in single-brand stores (such as Gucci or Apple).India was expected to join this long list of countries. But this year, finance minister PranabMukherjee's Budget didn't include any mention of retail, except for some concessions andincentives for the cold storage sector. "We expect [permission for FDI] to come in phases,"says Pinaki Ranjan Mishra, Ernst & Young (E&Y) partner and national leader, retail andconsumer products practice. "This sector needs funding, and FDI is a good source offunding." Adds Thomas Varghese, CEO of Aditya Birla Retail and chairman of theConfederation of Indian Industry (CII) National Committee on Retail: "While there wereexpectations from the industry regarding the announcement of FDI in retail, we do realizethat the Budget is not an exercise to announce policy measures."FDI in retail has been projected as a huge threat to the unorganized sector -- the kiranas(mom-and-pop stores). "The Indian retail sector comprises 13% of GDP and employs 6% ofthe nation's workforce," says a 2008 PricewaterhouseCoopers (PwC)-CII study titled, "TheBenefits of Modern Trade to Transitional Economies." Allowing FDI at this stage couldalienate this huge vote-bank.[6]

207www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780MONEY MATTERSThe funding -- though overshadowed by the kirana issue -- is important. Some domesticretailers have had to fold up because they expanded too fast and couldn't finance their plans."The past two to three years has seen the collapse of some big retailers of the 2006-2008boom," says Kurien of Reliance. He gives the example of Vishal, Subhiksha and Koutons.While Subhiksha has closed down, Vishal was sold in mid-March for US$15.5 million. Threeyears ago, it was valued at US$500 million.EVERYONE ON EXPANSION PATHLike Titan, others are planning expansion. Reliance Retail currently has around 1,150 stores.According to Kurien plans are to increase the number to 1,500-1,600 in 2011-2012. "Exceptfor a six-month period in 2008-2009, we have been expanding continuously. But we resumedexpansion with a qualification; we are now looking only at those formats which areperforming well. Everyone realizes that expansion needs to be done in a measured andcalculated manner." Incidentally, the US$1 billion turnover Reliance Retail is still in the red."But there are pockets of profitability. We have not built scale as yet," says Kurien.THE CHARM OF THE INDIAN MARKETIndian companies need money. But what explains the attraction from the other side? Why isFDI in retail being built up as the beacon of the next phase of liberalization? The answer is inthe numbers. According to the government's Economic Survey, "The retail sector is expectedto record healthy sales in 2010-11 and grow by 10.2% in 2011-12. The sector's PAT (profitafter tax) margin is expected to expand over the next three years on account of a faster rise inincome vis-a-vis expense." Adds the PwC-CII study: "India is ranked as one of the world'smost exciting retail destinations." The study says that India's retail sector is worth anestimated US$350 billion and is growing between 30% and 40% per annum. (This relates to2008, but there is a huge divergence in the absolute numbers and growth estimates putforward by various organizations.) The culture of shoppers to shop daily coupled with lack ofstorage space make the kirana store a part of the Indian middle classORGANIZED SECTOR GROWINGFor many, India is an inevitable destination. According to the 2010 A.T. Kearney GlobalRetail Development Index report, the retail market in India is worth about US$410 billion."But only 5% is through organized retail, meaning that the opportunity in India remainsimmense," says the report. "Retail should continue to grow rapidly -- up to US$535 billion in2013, with 10% coming from organized retail." A.T. Kearney puts India as one of the topthree countries in retail expansion. It has, however, slipped a couple of notches from the No.1 position it occupied until recently."The retailing industry is now estimated at US$420 billion and organized retail is estimated atUS$20 billion," says Agarwal of Wazir. "In 1990 the size of the industry was around US$120billion and organized retail around US$0.6 bn. So while growth in the retail sector has beenaround four times, the organized retail sector has grown about 35 times." While organizedretail has been growing in size, the kiranas have been growing in numbers. Agarwal estimates

208www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780that the mom-and-pop stores have gone up from 7 million to 12 million in the same period."FDI in multi-brand retail is one of the most progressive steps the government can take."FDI POLICY IN THE RETAIL SECTORIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrand retail with prior Government permission. FDI is also allowed in the wholesalebusiness. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota canoperate now on their own. Metro is already operating through the cash-and-carry wholesalemode. The policy makers continue to explore areas where FDI can be invited without hurtingthe interest of local retail community. A 12-billion euro French luxury industry is also eyeingthe domestic luxury segment to make a presence through retailing directly.BUSINESS MODELS FOR ENTRY IN INDIAN MARKETSDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets. However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India. In recent developments, the Australianretail giant Woolworth Ltd made in innovative entry in India‘s retail space, with India‘s Tatagroup. The Tata group has floated Infiniti Retail Ltd, in venture with which will sellconsumer goods and electronics across the country. Infiniti Retail will be a 100 per centsubsidiary of Tata Sons and will receive an initial equity infusion of Rs. 4 billion. This Tataretail venture joined hands with Australian retail giant Woolworths Ltd, which currentlyoperates more than 2,000 stores in 12 different formats.INVESTMENT OPPORTUNITIES IN THE RETAIL SECTORAT Kearney‘s study on global retailing trends found that India is the least competitive as wellas least saturated of all major global markets. This implies that there are significantly lowentry barriers for players trying to setup base in India, in terms of the competitive landscape.The report further stated that global retailers such as Walmart, Carrefour, Tesco and Casinowould take advantage of the more favorable FDI rules that are likely in India and enter thecountry through partnerships with local retailers. Other retailers such as Marks & Spencerand the Benetton Group, who operate through a franchisee model, would most likely switchto a hybrid ownership structure. A good talent pool, unlimited opportunities, huge marketsand availability of quality raw materials at cheaper costs is expected to make India overtakethe world's best retail economies by 2042, according to industry players. The retail industryin India, according to experts, will be a major employment generator in the future. Currently,the market share of organized modern retail is just over 4 percent of the total retail industry,thereby leaving a huge untapped oppor. The sector is expected to see an investment of over$30 billion within the next 4-5 years, catapulting modern retail in the country to $175-200billion by 2016, according to Technopak estimates.CONCLUSIONFDI in retail India is a lost cause. The lure of FDI in retail is based on the Wal-Mart story inChina. That was when China had become the hub for exporting cheap goods into the U.S.Many U.S. corporations exploited the opportunity. That story has outlived its purpose. The

209www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780yuan debate has undone it. The U.S. cannot afford to live with a hollowed manufacturingbase; nor can China live with an exports-only strategy and has to turn inward. The moral isthat there is no global model of retail which can be replicated elsewhere.Arguments in favor of FDI in retail are fallacious. India is not an economy which is suited tothe kind of outsourcing and creation of supply chain which can feed large retail chains. Thesingle brand retail which was allowed with fanfare has not taken off. It has merely created awindow for import of finished products from richer countries. Companies like Prada, Gucciand other superior brands (perfumes!) which are beyond the reach of millions of Indians.Indian participation takes care of back-office and establishment expenses and there is nolinkage with the Indian raw materials or processing. It has created an "island" decoratinghuge malls catering only to the noveau rich or those in the Forbes list.Lastly, Indian retail supports more than 30 million people. These have taken to retail as thegovernment has failed to create employment opportunities for them. It is disguisedunemployment These millions will rise against FDI in retail and create situations not unlikethat which happened in Egypt, Bahrain, etc.It needs to be underscored that FDI in retail is fundamentally different from Greenfieldforeign investment in manufacturing. While the latter enhances the economy‘s productivebase, enhances technological capability and generates employment in most cases, entry ofmultinational retail chains has few positive spin offs. In fact the negative effects in terms ofjob loss and the displacement of small retailers and traditional supply chains by themonopoly/monophony power of the multinational retailers far outweigh the supposedbenefits accruing to the organized retail sector in terms of increased ―efficiency‖. Moreover,India does not have any prior commitments vis-à-vis the WTO to open up the retail sector.Therefore, the case for opening up of the retail sector to FDI does not seem to be justifiableREFFRENCES[1]http://infochangeindia.org/trade-development/analysis/retail-blitzkrieg.html[2]Source:http://online.wsj.com/article/SB10001424052748704862404575350452136935516.html?mod=WSJINDIA_hpp_LEFTTopWhatNews[3]http://www.mbaskool.com/business-articles/human-resource/245-aam-aadmi-missionempowering-rural-india.html[4] http://www.aabc.co.in/india/1190-budget-2011-12-expectations-watch-out-.html[5] http://www.moneycontrol.com/news/special-videos/fdiretail-impactindia_469727.html[6] http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=[7] Singhal, Arvind, Indian Retail: The road ahead, Retail biz, www.etretailbiz.com[8]Economic Survey 2010-11[9] ‗Big Box Retail Will boost poverty‘ India together, Feb,16,2007[10]the Tribune, Nov.2006,Chandigarh,India

210www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780[11]Study of map impact of FDI on Bharat The Economic Times, march,24,2007[12]FICCI Seminar on Retiling in India ,feb,23,2005[13] Singhal and Teneja,INDIA RETAIL REPORT 2009 by IMAGES-KSA Technopak[14] http://www.kslindia.com/download/feb0709.PDF

211www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780A STUDY TO DEVELOP AN ADVANCED MARKETING STRATEGYFOR WELLNESS TOURISM IN KERALA BASED ON THEPREVAILING SCENARIOABSTRACTRAMESH U*, KURIAN JOSEPH***Research Scholar in Faculty of Management,NIMS University Rajasthan, Jaipur.**Research Guide, NIMS University, Rajasthan, JaipurAssociate Professor, St. Dominic‟s College, Kanjirappally, Kerala.The potential of tourism sector to stimulate economic and social development therebytransforming economies is internationally acknowledged. Health/Wellness tourism refers totrips that are taken by tourists with the principle purpose being to improve their health and/orwellbeing. India is the most touted healthcare destination for countries like South-East Asia,Middle East, Africa, Mauritius, Tanzania, Bangladesh and Yemen with 12 percent patientinflow from developing countries. Predictions reveal that Asia will have one of the fastestgrowing tourist populations in the world. In this globalized era, tourism has always beenconsidered on top priority in India with the Governments at the centre as well as the statesmaking highly focused efforts to exploit the tourism resources offered at the national andlocal level. What attracts medical tourists the most to India is its low cost treatment,compared to western standards, along with the diverse tourism opportunities. Here, touristscan enjoy the vivacious culture, amazing contradictions, diverse geography , the most uniqueattribute – unity in diversity and are able to receive an orientation that will help them improvetheir life in terms of health and general wellness. Government and private sector studies inIndia estimate that medical tourism could bring between $1 billion and $2 billion US into thecountry by 2012. The reports estimate that medical tourism in India is growing by 30 per centa year. Today, Kerala Tourism is a global super brand and is regarded as one of thedestinations with the highest brand recall. The tag line Kerala- God's Own Country wasadopted in its tourism promotions and has become synonymous with the state. The presentarticle studies the future of emerging health tourism in India. This paper examines the variousfactors that contribute to Kerala‟s strength as a preferred destination for Ayurveda basedWellness tourism. An attempt is made to study the Ayurvedic health care scenario byfocusing on the perceptions and profiles of the International tourists visiting Kerala aswellness seekers. The article also gives some insights that can be used in forming a rightstrategy to promote India as an attractive health tourism destination on the internationalplatform.KEYWORDS: Ayurveda, Tourism, Wellness.INTRODUCTIONOBJECTIVES AND METHODOLOGYThe present study enquires into the current infrastructure and the market potential ofAyurveda based wellness tourism offered at Kerala in attracting international medical tourists

212www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780and also the possibilities to design and evolve an advanced marketing strategy for the state toemerge as the most sought after wellness destination. Earlier studies carried out in the fieldwere analyzed and it reveals that a striking gap exists in the field of research in this highlypotential but understudied area. The study is carried out with an objective to analyze thestrength, weakness, opportunities and threat of alternative health care industry in Kerala.Related data were collected from the Directorate of Tourism, Govt. of Kerala, KTDC, Govt.Ayurveda College Thiruvananthapuram, Directorate of ISM, reputed and classified wellnessresorts in the private sector as well as from the published research reports on health tourism.Among the classified health care units, selected ones were visited and primary data werecollected from domestic / international medical tourists on acquiring prior permission fromthe respective management. The chief operating managers, resident doctors and masseurs ofthe wellness centers were also interviewed to arrive at the final judgment. Simple randomsampling has been adopted in interviewing the medical tourists from the selected locations.INDIA AS A POTENTIAL HEALTH CARE DESTINATIONIndia is one of the most sought after destinations for medical tourism. In the year 2004, some150,000 medical tourists from UK, US, Middle East and other foreign countries visited Indiaseeking medical care in Indian hospitals. Since then, medical tourism in India has beengrowing at the rate of 20% per annum. Cheaper treatment is a huge attraction and duringrecession, that‟s a big fact. In 2007, Indian hospitals treated 4.5 lakh patients from othercountries against topper Thailand which treated about 10 lakh patients. A significant factorfor India‟s popularity as a medical tourism hub is the absence of long waiting time to availmedicare that is very common in the US, UK and Canada. Medical tourism showcases thepotential of Indian healthcare sector to the world which dreaded India for the incidence ofAIDS, Tuberculosis, Cancer, Malaria and Diabetes. As a move in promoting medical tourism,many hospitals are deemed as “corporate hospitals” that specially cater to the needs ofmedical tourists in India. Apart from offering world class treatments, they offer variousservices that make medical tourists‟ stay in India hassle free. The country‟s National HealthPolicy declares that treatment of foreign patients is legally an "export" and deemed "eligiblefor all fiscal incentives extended to export earnings." Government and private sector studiesin India estimate that medical tourism could bring between $1 billion and $2 billion US intothe country by 2012. The increasing attractiveness and economic significance of health andwellness tourism is further apparent in the growth of both domestic and international visitorssince the beginning of this decade. Along with the tremendous opportunities for tourism andleisure, India offers the best treatments in conventional medicine: Ayurveda, Homeopathy,Naturopathy, Yoga and Modern medicine such as cardiology, orthopedic surgery, eye care,gynecology, cosmetic surgery and dental surgery. Southern states of India, especially, Keralahas developed Wellness Tourism as one of the products for the promotion of tourism in thestate. Table 1 shows the annual growth in the Foreign tourists arrivals in India from 1999 to2009.

213www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 1: FOREIGN TOURISTS ARRIVAL IN INDIA 1999-2009Year Foreign Tourists Arrival Annual Growth1999 2481928 5.22000 2649378 6.72001 2537282 -4.22002 2384364 -6.02003 2726214 14.32004 3457477 26.82005 3918610 13.32006 4447167 13.52007 5081504 14.32008 5282603 4.02009 5108579 -3.3Source: Bureau of immigration, IndiaAYURVEDA BASED WELLNESS TOURISM IN KERALAKerala – The mesmerizing land located in the south of India enjoys geographical features thatare unique and rich. This state is also the only place in India which practices Ayurveda in itspurest form. Ayurveda is the traditional Indian system of medicine that has brought truehealth, happiness and wellbeing to millions of individuals throughout the ages. This ancientart of healing has been in practice for over 5000years, and was also the mainstream medicinein the ancient times. Derived from its ancient Sanskrit roots – „ayus‟ (life) and „ved‟(knowledge) – and offering a rich, comprehensive outlook to a healthy life, it is the onlymedical science in this universe which is useful even when one is not ill. Ayurveda is acomplete science of health that is being applicable in all stages of life starting from birth,neonates, infants, childhood, youth, old age and even life before and after death. For manypeople, the image of Ayurveda is limited to the use of herbal or home/kitchen remedies and atraditional way of treatment. But in reality, Ayurveda is a much serious medical science,which strongly emphasizes on the diagnosis, examination, analysis of the disease, diet,medicinal properties, dose, frequency of the medicine and the medium with which it shouldbe consumed. The Medicare in Ayurveda has broadly two parts: one is preservation of healthand prevention of diseases and the second, diseases and their treatment. Ayurveda follows atotally different way of treating diseases known as “Panchakarma”, which means literally“Five Therapies” which are the subtly harmonizing purification procedures that dissolvemetabolic waste products and toxins generated from the environmental ill effects, in a gentle

214www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780and effective way from the tissues and eliminate them from the body. This treatment isadvisable to the diseased as well as the healthy. Ayurveda also has a comprehensive systemof massages and body treatments that gives relief from a wide range of illnesses, frommigraine and sinus to arthritis and paralysis; that detoxify and cleans the body throughcontrolled emesis, purgation, making the individual sweat; and that makes the body receptiveto further treatment. These therapies are more effective in Kerala due to the almost yeararound humid climate of the state. In 2006, Kerala attracted 8.5 million tourists–an increaseof 23.68% in foreign tourist arrivals compared to the previous year, thus making it one of thefastest growing tourism destinations in the world.MARKETING OF TOURISM SERVICES IN KERALATourism is an important economic activity and continues to be the fastest growing sector andhence is typically included among the top three industries in the country. Although India hasprogressed a lot since the fifties with respect to tourism, the country is still way behind thedeveloped or even the developing countries. India earns one seventh of China, one fourth ofIndonesia and less than half of Philippines from tourism in comparison. Kerala is theforemost state in India that realized the potential of Ayurvedic health tourism and has widelymarketed it throughout the state. About 10-12 years back, Kerala started with the task ofpromoting Ayurveda on a larger scale. It is estimated that about 30% of the foreignerscoming to Kerala avail themselves to Ayurvedic care and about 40% of the State‟s tourismrevenue is generated from the same. The Kerala government realizes that it is of vitalimportance to offer assurance to its wellness seeking guests and visitors to the state thatsafety, hygiene, service quality and quality assurance are top priorities. This is to be achievedthrough the introduction of quality standards, registration, certification and regulation, andlegislation. The comprehensive plan also includes guidelines and measures to ensure fairpricing. Beyond a competitive pricing strategy, achieving quality is another key to Kerala'scompetitiveness. The ability to attain international standards and consistently deliver highquality products and services are critical success factors in the promotion of Kerala productson the global market. Kerala, as part of its marketing strategy, continuously organizes roadshows all around the world for the promotion of Ayurveda along with modern medicine. It isvitally important to create confidence in the products Kerala offers. There is much greaterawareness and operators have come to realize that delivering quality translates into greaterbusiness efficiency, lower operating costs and increased profits.CURRENT INFRASTRUCTUREKerala, the state almost synonymous with the word 'Ayurveda', is now all set to reap thebenefits of Ayurveda through health tourism. The reason for this is the popularity ofAyurvedic treatments and the manner in which Kerala is marketing Ayurveda in medicaltourism. The promotion of Ayurveda in health tourism started in 1994 and the KeralaTourism Development Corporation (KTDC) started Ayurvedic health centers in its premiumproperties like Hotel Samudra, Kovalam, during the same period. KTDC has tied up with themost reputed Ayurveda treatment providers and hence the authority of doctors and the qualityof the medicines used are not compromised. While all the hotels and resorts in Kerala havenow started including Ayurveda in their services, there are some resorts, which are exclusivefor Ayurvedic treatments. With a view to facilitate the wellness tourism industry to achievethe targets and to give a greater momentum for this growth, the Ministry of Tourism,Government of Kerala, in association with the Department of Indian Systems of Medicine

215www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780(ISM) has identified an urgent need to evaluate the safety and service standards of theprevailing and newly establishing Ayurveda centers and classify them accordingly. Standardshave been set in terms of Personnel – Qualified physicians and masseurs having sufficientdegree and training from recognized Ayurveda institutions, Quality of medicines and Healthprogrammes – Prior approval by the advisory committee for the levels of treatments, clearexhibition of the treatment programmes offered and usage of medicines manufactured byapproved firms with proper labeling, Equipments - Standards are fixed for the size and makeof massage tables, facilities for medicated hot water , sterilization, electric/ gas stove and thehygiene , Facilities - in terms of number of treatment rooms with prescribed size , properventilation and attached bathrooms, quality and finishing of floors and walls, consultationroom with proper equipments, separate rest rooms, locality , ambience and the cleanliness ofsurroundings. Ayurvedic centers fulfilling all the mentioned essential conditions are awardeda certification named Olive Leaf. Apart from the same, Government has also set someoptional conditions in terms of the construction and architectural features of the building,adequate parking space, facilities for steam bath, separate hall for yoga and meditation, herbalgarden attached to the center and the picturesque location. The Ayurveda centers alsofulfilling these optional conditions will awarded Green Leaf. The Department of Tourismdoes not take responsibility of any centre, which is not classified in either of the abovecategories.PERCEPTIONS AND PROFILE OF MEDICAL TOURISTSInternational patients seeking medical services across borders or globally look at more thanjust cost comparisons in their search for the right physician and right facility to addressspecific needs. The top priorities include1. CREDENTIALS - recognized international accreditations & certifications.2. EXPERIENCE - board certified doctors, training, years of experience.3. PATIENT REFERENCES - patient testimonials, before & after pictures.4. SPECIFIC TREATMENT METHODS - uniqueness of center & procedures offered.5. COMPREHENSIVE SOLUTION - provide complete solution to a treatment.6. REPUTATION - locally as well as internationally e.g., publications, research papers.7. LANGUAGE - effectively communicate in patient's preferred language.8. GEOGRAPHIC LOCATION - local conveniences, transportation services, attractions.9. COST - clear price list, services included in the package, pricing options.10. BENCHMARK DATA - any comparative information that will convince patientsDespite the priorities, patient misconceptions like lack of hygiene and other fears can beallayed by providing information and encouraging interaction with previous beneficiaries. Adetailed analysis regarding the profile of international tourists who visited the selectedAyurveda centers were carried out and the significant characteristics are presented herewith.

216www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The sample size selected was 110 from among the selected wellness centers in 4 touristlocations in Kerala namely Kovalam, Varkala, Kumarakom and MunnarTABLE 2 : NATIONALITY OF FOREIGN TOURISTS STAYING AT AYURVEDICCENTERSNationality No %England 25 22.USA 17 15.France 13 11.Germany 16 15.Italy 12 11.Australia 12 11.Holland 8 7.Others 9 8.Total 110 100TABLE 3 : AGE DISTRIBUTIONAge Group No. %20 -40 2 240-60 51 4660 + 57 52Total 110 100

217www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4: OCCUPATION OF THE TOURISTOccupation No. %Business 31 28Professional 48 44Student 4 4Service 18 16Others 9 8Total 110 100TABLE 5: PURPOSE OF VISIT TO KERALAAttractions No. %Natures Beauty 8 7Beaches & Backwaters 12 11Medicare 82 75Pilgrimage 0 0Culture 2 2Others 6 5Total 110 100TABLE 6: FACILITATOR FOR THE VISIT TO KERALAFacilitator No. %Self 82 75Travel Agent 14 13Friends 6 5Others 8 7Total 110 100

218www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 7: NUMBER OF DAYS OF STAY IN KERALANo. of Days No. %1 - 5 15 146 - 10 18 1611 – 15 22 2016 -20 39 3521 – 25 14 1326+ 2 2Total 110 100TABLE 8: SOURCE OF INFORMATION ABOUT THE WELLNESS CENTERSource No. %Friends 18 16Travel Agent 30 27Tourism Brochure 4 4Web 42 38TV/Radio 0 0Direct campaign 16 15Total 110 100TABLE 9: LEVEL OF SATISFACTIONSatisfaction No. %Satisfied 98 89Not Satisfied 12 11Total 110 100

www.zenithresearch.org.in219ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780On analysis, the following trends and profiles were noted.International tourist‟s country of origin data shows that England contributed 22%followed by United States and Germany with 15% respectively.52% of the international tourists availing medicare in the Wellness centers were in theage group 60+ and 46% were in the age group 40 to 60years.About 44% of the International tourists visiting Kerala were professionals, 28% wereinvolved in business and 16% were from Government services.About 75% of the international tourists arrived with the prime purpose of availingwellness medicare and 11% visited Kerala getting attracted by the beaches andbackwaters and they were campaigned to avail wellness therapies.About 75% of the tourists arranged the tour programme by themselves and 14%depended on travel agents.For about 35%, the average days of stay were in the range of 16 to 20 and for about20% the days of stay were between 11 to 15 days.About 38% of the tourists depended on Web to choose the particular wellness centerand about 27% chose the same with the help of travel agents.The research data shows that about 89% of the tourists who availed wellness medicarewere satisfied with their particular visit.The average per day expenditure of international tourists staying at Ayurveda centers wasRs 3400/- and about 76% of them purchased Ayurveda related products. It was understoodthat the awareness about Kerala and the Ayurveda based wellness therapies were muchhigher (over 80%) amongst the international tourists and almost all expressed their positiveintention to visit the destination again and to practice and continue the therapies and diet.SUGGESTIONS AND ADVANCED STRATEGIESThere are numerous definitions for marketing and what constitutes a marketing strategy.Often marketing is thought of only as the promotion of products, especially advertising andbranding. However, marketing has a wider meaning which recognizes that it is customercentered. A marketing strategy is the business‟ approach to promote its products and servicesexpressed in broad terms. A marketing strategy, in turn, forms the basis of the marketingplan. The marketing plan contains the set of specific activities required to successfullyimplement a marketing strategy. The three stages of an effective marketing plan applicablefor tourism services are reviewed here. The first stage is a thorough analysis of the market,including resources, competitors, and the business environment. The second stage is to decideon the strategic choices of how to segment markets, to determine the sectors to be targeted,and to plan an appropriate product positioning and the last stage is to determine the marketingmix, which in its most basic sense means how the product will be offered to consumers –(both intermediaries and tourists), the price that will be charged, how the product will becommunicated, and how it will be placed or distributed.

www.zenithresearch.org.in220ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Creating a Tourism Development & Marketing Plan is the primary rule for any successfultourism. The plan should include several details like product development, upgrades andimprovements, positioning and/or branding, attractions and events, visitor amenities andservices, marketing and public relations, public/private partnerships, recruitment, funding andbudgets, and organizational responsibilities. With the international tourism booming up, it isthe high-time for devising effective marketing strategies for promoting and rightlypositioning Indian Health Tourism sector on the international platform. India may require aninvestment of Rs.1,40,000 Crores by 2012 for achieving its full potential. With thedestination firmly established as the 'Wellness Capital of Asia', achieving world-class statusis next on the national agenda. But this will not be possible only by the government alone.The private stake holders have to play a significant role in this. It is has become imperativefor players of Indian health tourism to enter into alliances with one another. Also, it is theresponsibility of all the stakeholders to develop an effective system of communication forpromotion of Ayurveda based wellness tourism in Kerala. A very important part of anymarketing communication plan is to set up realistic and measurable targets/goals througheffective identification, allocation and implementation of the available resources. There aretwo kinds of targets that are required to be looked into – Short term and Long term.SHORT TERM TARGETSLower to middle-level front-line officials of Central and States Tourism Departmentsincluding those posted in tourist offices abroad and usually in regular contact with thetourists may be given accessibility-specific training.Partnering with the experts players in the tourism industry as a whole to gain fromtheir experience.Descriptive brochures and images about the Ayurveda, which relate to its specialqualities and is tailored to target markets, should be prepared for use in destinationmarketing vehicles.LONG TERM TARGETSImproving the perception towards the Ayurveda based wellness medicare.Increasing the awareness level of the various health tourism products available inKerala.Design and implementation of an appropriate communication strategy.Emphasize on luxury, as most of the visitors would be coming from the well-offnations and are used to luxury and comfort.Few suggestions are herewith put forth, which shall be considered while designing themarketing strategies to enhance the international wellness seekers inflow to Kerala.‣ A much advanced Computer Reservations System (CRS) has to be developed andthe awareness shall be increased on how these systems could be used for bothadministrative and management functions within the travel agency, and as amarketing tool for “customizing” travel arrangements to meet individual needs.

221www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780‣ Descriptive brochures and images about Ayurvedic medicare, which relate to itsspecial qualities and is tailored to target markets, should be prepared for use indestination marketing vehicles.‣ In fact, in researching Ayurveda based wellness tourism in Kerala on the internet, itis difficult to know where to turn for specific questions about the healthcare systemand local medical residency requirements. Hence a single point of entry forindividuals seeking medical care options in Kerala has to be launched, establishedand monitored.‣ It is also expected that increasingly value conscious customers will demand moreand better product information and hence a better understanding of psychographicconsumer behavior will lead to more precise identification of customer segments andsub segments.‣ Create a short film on medical tourism opportunities in Kerala and request airplay onAir India and other International flights (both boundary and distant). Seekopportunities to include this film in other venues including websites of organizationsinterested in providing quality care options.‣ Multimedia travel information kiosks have to be placed in a number of locationsincluding in hotel lobbies, at tourist attractions and State welcome centers. Theiruses range from educational and training tools to information directories and pointof-salesystems.‣ It is recommended that all travel and tourism organizations should be advised todocument the fact-sheets on access enabling facilities in their premises and publicizethem.‣ It is suggested that provision for Telemedicine and E-Medicare in wellness centerscould be an effective factor for attracting more international medical tourists as itmay be highly advantageous by providing an increased access to health care(especially in underserved areas), expanded utilization of specialized expertise andrapid availability of patient records. Imparting these technologies in Wellnesscenters may cause to increase follow up advice for patients, prevention ofcomplications/side effects and post treatment care.‣ Introduce a formalized and shared tracking system of inquiries or medical touristsinto Kerala to allow an understanding of which methods of promotion yielded thehighest returnCONCLUSIONThe Indian tourism industry has outperformed the global tourism scenario in terms of growth,revenue and the volume of international tourist visits. A recent trend has shown that peoplefrom developed countries are seeking treatment from the health professionals fromdeveloping countries. The destination in wellness tourism is often an alternative space inwhich one can engage in self analysis without the stresses and distractions of home as well aswork place. In the long run, Wellness tourism can become the niche for foreign revenuegeneration as there is an increasing trend in the number of visitors to Kerala as wellness

222www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780seekers. The study reveals that the most favourable factor for Kerala to emerge as the GlobalWellness Hub is its authenticity and rich Ayurvedic heritage with multifaceted attractions.Marketing Kerala as a safe quality wellness destination depends on effective distributionchannels, hospital-defined market niche strategies, as well as data collection on the sources ofinformation used to select Kerala as the preferred medical destination. The action stepsoutlined shall generate critical information to further refine the message, selected medium,and information on the impact of selected marketing techniques to brand Kerala as theWellness Hub of the World.REFERENCES1. Corbin, Pangrazi, & Franks, (2000),Definitions: Health fitness and physicalactivities, Presidents council on physical fitness and sports research digest,3(9), 1-82. Cooper, K. (1982). The Aerobics Program for Total Well-Being. New York: Bantam.3. De Botton, A. (2002). The Art of Travel. London. Penguin4. Hu Clark, (1996), Diverse developments in travel and tourism marketing: a thematicapproach, International Journal of Contemporary Hospitality Management 8/7 p. 33–43.5. Kaspar, C. (1996), Institute for Tourism, St.Gallen 1996, p. 53-61.6. Mullholland,C,(2005),Depression and Suicide in Men. http://www.netdoctor.co.uk.Accessed on 20 September 2005.7. Saracci, R. (1997). The World Health Organization Needs to Reconsider itsDefinition of Health. http://bmj.bmjjournals.com.8. U.S. Department of Health and Human Services. (2000). Healthypeople2010:Understanding and improving health, 2nd edition in two volumes.Washington, DC: Government Printing Office.9. World Health Organization. (1947). Constitution of the World Health Organization.Chronicle of the World Health Organization 1, 29-43.

223www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780THE STRATEGY OF DE-INTERNATIONALIZATION OF THE SMESOF THE FOOTWEAR IN THE AREA METROPOLITANA DEGUADALAJARAABSTRACTPAOLA N. VELÁZQUEZ - RAZO*; JOSÉ G. VARGAS-HERNÁNDEZ***MNEE.**Master's degree in Business and Economic StudiesEconomic University Sciences Center AdministrativeUniversity of Guadalajara.The aim of this paper is to analyze the exogenous and endogenous factors that determine thestrategy of de-internationalization of SMEs in the sector of the footwear in the MetropolitanZone of Guadalajara (ZMG). The proposed model explains the adoption of the strategy of deinternationalizationfrom studies of comparative cases of SMEs in the footwear sector of theZMG. In-depth interviews were applied to managers and staff involved during the time thatthe company was exporting. Analysis points out that lack of strategic planning and theinstability in the foreign currency exchange rate are major factors that determine the strategyof de-internationalization in SMEs in the ZMG. Also, it is evident that the strategic imbalanceduring the de-internationalization strategy is not considered as a failure, but rather as anopportunity to redirect it and thus grow in the local market.KEYWORDS: De-internationalization, strategy, exogenous and endogenous factors, SMEs.1. INTRODUCTIONInterest in studying the strategy of internationalization of small and medium-sized enterprises(SMEs) (Andersen, 1993; )Bell, Crick, Young, 2004; Mr. de Clercq, Sapienza, Crijns, 2005;Fillis, 2006; Johanson and Vahlne 1977) and the factors that determine it, is extensive(Andersson, Gabrielsson, Ingemar, 2005; Karedeniz and Göcer, 2007). However, there arefew studies that address the strategy of de-internationalization and the withdrawal of export.De-internationalization, in agreement with Mellahi, 2003 (quoted by Reiljan, 2005), isconsidered as an organization‟s strategic response to reduce its participation in internationaland/or domestic operations in order to improve the profitability of the business as a result itsexternal environment or its domestic context. The withdrawal of export is defined by Pauwelsand Matthyssens (1999, p.10) as "an enterprise‟s firm decision to reduce activity in a marketand a product abroad”, either as a decrease in the international market share or as a completeabandonment of the same (Crick, 2002; Pauwels and Matthyssens, 1999; Reiljan, 2005).Research on the internationalization emphasizes incentives and obstacles/barriers thata company faces in order to internationalize (Bell and Crick, 2002; Clercq et al., 2005;Cavusgil, 1984; Fillis, 2001; Johanson, Wiedersheim-Paul and Vahlne, 1977; Leonidou andKatsikeas, 1996). Among the key points considered as the dominant theories of theinternationalization of enterprises there are some factors that directly influence the adoption

224www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780of this strategy, such as experience, management vision, and rapid changes in the competitiveenvironment (Andersson et al., 2004; Baldauf, Cravens, Wagner, 2000; Jímenez, 2007).However, research has not considered those factors that determine the output of theinternational markets. The adoption of the strategy of de-internationalization is a subjecthardly considered and even forgotten (Benito, 2003; Pauwels, and Mathyssens, 1999; Reiljan,2005; Turner and Gardiner, 2007).There are contributions focused on analyzing such a strategy, particularly theimportance of certain factors such as experience in the markets, the costs involved, theinformation one has on them, the characteristics of the entrepreneur, as well as theimplementation of strategic planning to break into the international environment (Benito,2003; Crick, 2002; Pauwels, and Mathyssens, 1999, 2002, 2004; Reiljan, 2005; Turner andGardiner, 2007). In the long term, these factors may lead some companies to leave themarkets or to redirect their strategy towards new opportunities, as a result of the externalenvironment or the changing domestic context.Knowing the causes that determine the behavior and the factors that determine thepresence of small and medium-sized footwear enterprises (SME) in external markets is ofgreat importance because they contribute to the generation of employment and economicdevelopment of the country. However, given their characteristics, SMEs present certainproblems that shorten their stay in the market.The Ministry of economy (2009) argues that the general problem of SMEs isassociated with the following:(a) Limited participation in trade,(b) limited access to sources of financing,(c) delinking the most dynamic sectors,(d) deficient training in human resources,(e) lack of engagement with the academic sector, and(f) lacking culture of innovation processes and development technology.These constraints have an impact on the performance and permanence of the SMEs,with its consequent effect on employment and income of the nation. The majority of thefootwear SME positioned in a given market, as part of their problem, do not have anyexpectations of growth that go beyond what they plan. Despite the importance of the numberof companies contributing to the economy and job creation, only a small percentage of SMEsexport.According to a survey of the industrial situation of footwear in Jalisco, the systemstate of Jalisco information (SEIJAL) and the Chamber of the footwear industry of the Stateof Jalisco (CICEJ), there are 806 companies dedicated to this activity within the state as of

225www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802008. Moreover, according to the same survey in 2008, which interviewed a sample size of170 footwear companies, only 13 percent are engaged in export performance.This research aims at the analysis of the strategy of de-internationalization of smalland medium enterprises (SME) in the footwear sector in the Metropolitan Zone ofGuadalajara (ZMG) and the factors that determine the strategy. This study is limited to theexport of the production of small and medium enterprises (SMEs) in the footwear sector forseveral reasons.First, the export is considered the primary means of entry to international markets forSMEs (Pauwels, Matthyssens, 1999; Crick, 2002; Leonidou, 2004). In addition, some studiesshow that withdrawals occur to a greater extent during export in comparison to othermechanisms of entry such as direct foreign investment (Pauwels, Matthyssens, 1999; Reiljan,2005). Another reason is that the footwear SME that settle in a given market, do not haveexpectations of growth beyond the expected. Despite the contribution to the economy andemployment generation, only a small percentage of SMEs export. Of these, only few manageto stay on the international markets.During the implementation of a prior questionnaire for the selection of cases for thestudy, a sample of 40 manufacturers of footwear in the State found that 10 companies hadceased to export. Of the small percentage that manage to survive, the footwear SMEs have toface constraints that prevent their expansion of activities abroad, mainly illegal imports,informal trade in much of the country, the difficult economic environment, but above all theopen trade with the Asian bloc.For example, given the importance in exports and only to measure the problem,according to the Chamber of Footwear Industry of the State of Guanajuato and based on astudy carried out by the Center for Economic Study of the Private Sector (CEESP), thedamage that smuggling causes on the Mexican economy amounts to 30 billion dollars. Thefiscal authorities no longer receive them, just because of the added tax value (not includingthe payment of duties and countervailing duties, a total of about 50 billion pesos.)An additional problem stemmed from the periods of most recent economic crisis inthe years 1995, 2001 and 2007, which have affected the economic growth of the country andthe main sectors that make up the production environment. These economic crises led to aslowdown in the growth of certain sectors, particularly the manufacturing sector (Salinas,Tavera, 2007; Mendoza, 2010; Dussel, 2004 and 2009). In addition, the manufacturers offootwear, "are suffering the consequences of the opening up of trade which favored theimportation of Chinese products, whose lower prices have led to the departure of manycompanies", says Rendón Trejo (2009, p. 2).The existence of factors such as the lack of experience and knowledge of internationalmarkets, the increase in costs, as well as a limited production capacity that is unable to copewith the overwhelming demand abroad, has resulted in the loss of competitiveness in theindustry. According to an interview of the Director of the Chamber of Footwear Industry ofthe State of Jalisco (CICEJ), there is no specific data of the companies that are affiliated withthe chamber, how many exported and how many have ceased to do so. However, the decreasein the number of undertakings established in a formal way is clear. This has an impact on theuptake of tax revenue, not to mention the great unfair competition affecting the internal

226www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780market, which harms the national productive plant, generates closing companies, and as aresult, the loss of thousands of jobs. All this has been at a disadvantage to most of thefootwear producers in the country including Jalisco.With this issue, the questions of this study are: what are the factors determined by thede-internationalization strategy in the footwear industry of the ZMG? What factors determinethe strategies of de-internationalization of the footwear SMEs in the ZMG?2. THEORETICAL OR REFERENTIAL FRAMEWORKLiterature on internationalization, draws attention to the growing participation of small andmedium-sized enterprises (SME) in international trade as a result of the intense globalizationof markets, which during the first decade of the 21st century has shown dramatic and rapidchanges (Leonidou, 2004).According to the report on the world trade by the World Trade Organization in 2008"Trade in a globalizing world", even though there is no universal definition of globalization,economists use the term to refer to "the international integration of markets for primarycommodities, capital and labor" (mauve et al., 2003).The internationalization strategy has been widely studied, mainly to get to know thebehavior of SMEs in the international market (Wolff and Pett, 2000; Lu, Beamish, 2001;Fillis, 2001; Chetty and Campbell-Hunt, 2003; Bell et al., 2003; Anderson et al, 2004; Bell,Crick, Young, 2004; Moen et al, 2004; Clercq, Sapienza and Crijns, 2005) and the factorsthat determine it (Andersson et al, 2004; Karedeniz and Göcer, 2007).It is conceived as a way of participation and expansion in the activities of thecompanies in international markets. However some authors point out that some companies donot experience such growth (Penrose, 1959 cited by Turcan, 2003) and decide to reduce thecommitment in the international markets or retire altogether (Pauwels and Matthyssens, 1999;Crick, 2002).A. THE DE-INTERNATIONALIZATION AS STRATEGYThe de-internationalization concept was introduced by Welch and Loustarinen (1988, p. 37)who point out that "once the company moves into the process of internationalization it doesnot ensures its continuity" (quoted by Turcan, 2003, p. 211). Benito and Welch (1997, p. 9)define it as "those voluntary or forced actions that reduce the commitment to participation orexposure to current activities abroad". Also, they recognize the importance of differentiatingbetween total or partial de-internationalization.Some studies have analyzed the de-internationalization from various theoreticalperspectives. From the economic field, the enterprise could consider de-internationalizationin response to economic circumstances. From the perspective of strategic management, thecompany considers the de-internationalization in relation to the product portfolio and lifecycle of the business, and from the perspective of internationalization management, it is seenas a barrier to the de-internationalization (Benito and Welch, 1997; Crick, 2002; Pauwels, andMathyssens, 1999, 2002, 2004; Turcan, 2003 and 2011; Reiljan, 2005; Turner and Gardiner,2007).

227www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780For his part, Turcan (2003) points out that the de-internationalization which isconsidered more as a process in the cross-border activity, is a consequence of the cause-effectrelationship between internationalization and de-internationalization. The model proposes aconceptual framework that frames three constructs or variables:(a) Commitment of employers influenced by psychological, social, and structural factors;(b) Change in the dual networks that are triggered by a critical event and are dependent on theactions and intentions of both partners; and(c) Time perceived by the entrepreneurs through the relationship of codes and memoirs (past)and the congruence and horizons (future).Additionally, his model considers the importance of the total or partial withdrawalthrough the construction of a matrix where the positions of companies are located intoquadrants as shown in Figure 1. In Figure 1, the location of the four quadrants is shown forthe companies that are in the process de-internationalization. Quadrant 1 is formed by thecompanies that have fully withdrawn from international markets and instead focus on servingthe local market. Quadrant IV also represents companies that withdrew completely from themarket but with the difference that these companies could have ceased to operate during orbefore they started the process de-internationalization. Enterprises that are in quadrant IIremain active on the international markets but partially de-internationalized, and finallyquadrant III represents those cases not existing or known as "cells not empirical" (Nonempiricalcell).FIGURE 1. MATRIX SHOWING POSITION OF COMPANIES THAT ARE INTHE PROCESS OF DE-INTERNATIONALIZATIONContinuous de-internationalizaionTotalPartialStill inbusinessITotal withdrawal frominternational activitiesand yet in businessIIPartial withdrawal frominternational activitiesContinuous lifeIVIIIOut ofbusinessTotal withdrawalfrom internationalactivities and ceasedtrading at or rightafterNon-empirical cellSource: Own generation based on the model proposed by Turcan (2011)

228www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Turcan (2003 2011) points out that the de-internationalization of companies canhappen totally or partially (Benito and Welch, 1997; Reiljan, 2005).The former is more likely to happen during the early stages, and it will decrease as thecommitment and knowledge in foreign markets increases. This is in opposite to partial deinternationalizationwhich tends to occur during the later stages of internationalization.Figure 2 shows that enterprises adopt modes of entry depending on the strategies thatcan be considered a failure, i.e. a total withdrawal from the markets, with a shift in strategy oras a partial retreat where they opt for change in input mode, de-franchising or de-exporting,and a reduction in operations. This behavior matches the research developed by Pauwels andMathyssens (1999, 2004). In this sense, the company may choose to retire partially orcompletely. In other words, they try to reorient their strategy, be it focusing on the domesticmarket or changing the input mode.FIGURE 2. DE-INTERNATIONALIZATION MODESDe-internationalizationFailureTotal withdrawalPartial withdrawalCeasing tradingFocusing on homemarketChanging entrymodeReducingoperationsDe-investingDe-FranchisingDe-exportingFranchisingContracting- outSpinning-offAsset- swappingSource: Own generation based on Turcan (2011).On the other hand Pauwels and Mathyssens (1999: 10), from the perspective of exportwithdrawal, develop a study about the process of a market withdrawal strategy defined as"the strategic decision of a firm to rule the combination of a product/market out of itsinternational portfolio.” In other words, they are all actions taken by the company to reduceits commitments in the export market, which can be both internal (new strategic priorities)and external (dramatic changes in the competitive environment). His approach is basically

229www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780based on the cognitive processes and behavior of decision-making and implementationprocesses. In this sense, export withdrawal is considered more as a strategy whereby anorganization carries out an adjustment between domestic resources and skills, and theopportunities and risks created by the external environment in which it unfolds (quoted byPauwels and Mathyssens, 1999).So the strategy for current research is understood as a process whose maincharacteristic lies in the decision-making process which involves processes of learning,planning, and engagement in the activities of the organization. Six phases are identified in theprocess of decision-making during the retreat of export. Thus, this process is developed in themodel of export withdrawal as a process:(a) Start and accumulation of commitments on the market;(b) Increase in stress;(c) Two contrary reactions;(d) Game of power;(e) Vacuum vs. fait accompli; and(f) Beyond the withdrawal.Figure 3 explains the strategic process for withdrawing from the international market.The authors proposed a model of six phases conditioned by certain factors and behaviorsinduced by the threat of the learning environment and the dynamics of the political context.The first phase consists of the company‟s gradual accumulation of both financialresources and physical and material resources (infrastructure, equipment). The second phaseis when there is an increase in stress that comes with a mismatch between the objectivesinitially set by management and the achievement or the company's current situation. There isuncertainty among the staff, and they seek solutions to improve the situation. The third stagepresents reactions in conflict that arise due to the stress of the situation.The company seeks alternatives that enable them to make strategic decisions toresolve the conflict. Management adopts tactical measures. Two reactions arise thereby:passive and reactive. In the fourth stage there is a game of power between staff and managers.Despite the implemented tactical measure, performance continues to decline. In the fifth stageit is formally decided to withdraw, thus decreasing strategic control.

www.zenithresearch.org.in230ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 3. STRATEGY OF WITHDRAWAL ON INTERNACIONAL MARKETSSource: Based on Pauwels and Mathyssens model (1999, 2002).Finally, in the last phase, two types of retirement are identified: on one hand, thetactical withdrawal which arises as a result of the threat-rigidity and management‟s learningof exploitation. On the other, the strategic withdrawal is characterized by being considered a"failure" that is induced by the exploratory learning of lower managers.B. FACTORS IN THE STRATEGY OF DE-INTERNATIONALIZATIONSome authors note the factors involved in the strategy of de-internationalization (Reiljan,2005; Turner and Gardiner, 2007). One of the causes for which export withdrawal could bestarted, as indicated by Pauwels and Mathyssens (1999), is the ambiguity of the information.The majority of managers perceive symptoms of weakness in the performance in particularmarkets, and they tend to make their own inferences regarding the main problems that causethe weak performance as well as probable solutions to those problems.This process of de-internationalization coincides with Leonidou (2004) who pointedout that inefficiency in information, competitiveness in pricing, habits of consumers overseas,and political-economic obstacles, are factors that hinder exporter behavior. From anotherperspective, Crick (2002) considered the lack of strategic planning, including themobilization of domestic resources as well as a large number of environmental issues arisingfrom the weakness of the currency and the imposition of trade tariffs, as one of the reasonsthat might influence the decision to discontinue international activities. However, she arguesthat discontinuing exports can be a strategic advantage for the company if concentrating onthe domestic market is more profitable.In this sense, Reiljan (2003) also agrees in the argument that the factors intended asadditional sources of knowledge tend to decrease the effect of a lack in internationalexperience that creates changes in the strategy, with which it can increase or decrease thepossibility of de-internationalization at the same time. As a result, the influence of this factor

231www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780decreases as the company gradually fills its own knowledge base with the knowledge basedon experience. During the time when companies think about internationalizing, they look tonew markets for their product, internationalizing thus becomes one of their primary motives,and as their commitment to these markets increases, their field of activities increasinglybecomes more widespread.In a study conducted for a group of manufacturing companies in Estonia, Reiljan(2005) identifies four groups that frame the reasons for the de-internationalization, and theirsignificance depends on the stage of globalization in which the company is located. One ofthe factors identified to be crucial for de-internationalization is the increase in costs, whichtend to occur during a longer period of time and which also have a greater influence duringthe intermediate process of internationalization. This event is contrary to the change instrategy that tends to occur during the later stages of internationalization.On the other hand, as the company increases its international experience, it looks forways to minimize the costs arising from the partial or total dissolution of operations that areabroad. Its effect will depend on the level of commitment and experience. Nonetheless, it willhave a major influence during the intermediate process of internationalization. In the study‟sfindings, it is concluded that export withdrawals could have been caused mainly by theincrease in costs and a poor performance. Moreover, the strategy of foreign owners couldhave played an important role in the des-investment in some of the foreign operations.Three determining factors are proposed in this research for the adoption of the deinternationalizationstrategy by the footwear SMEs in the ZMG:(a) Management‟s characteristics and skills,(b) increase in costs, and(c) economic conditions3. METHOD OF RESEARCH: MULTIPLE CASE STUDIESFor this investigation the method of case studies is realized based on the approach developedby Yin (2003, p.13) which is defined as" an empirical inquiry that examines a contemporaryphenomenon within its real context, when the boundaries between phenomenon and contextare not evident, and which uses multiple sources of evidence". A model that shows therelationship between the strategy of de-internationalization by the footwear SMEs and theexogenous and endogenous factors is proposed.De-internationalization strategy is conditioned by a range of factors. Based on theliterature, some key variables are defined for the framework of the proposed analysis whichwill make it possible to consider and compare the previously mentioned scenarios. In short,the explanatory hypothetical model proposes that the strategy of de-internationalization (ED)is conditioned by the skills/characteristics of the management (HD); the increase in costs(IC); and by the economic conditions (CE).The proposed model is as follows:

232www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FIGURE 4. EXPLANATORY HYPOTHETHICAL MODELDE-INTERNACIONALIZACIÓNSTRATEGY (Y)ENDOGENEOUSFACTORSH1AccumulatingcommitmentSkills / managementcharacteristicsIncreasing StressFACTORS (X)Increase in costsTwo oppositereactionsPower playEXOGENEOUSFACTORSH2Confrontation at theThresholdInstability of foreign/domestic exchange ratesLearning beyond thewithdrawalX4)TacticalwithdrawalStrategicwithdrawalSource: Prepared by the authors.As can be seen in Figure 4, two types of factors are identified: endogenous andexogenous. The endogenous factors refer to all that which is associated to the resources,capabilities and difficulties of the company. The features/skills of the management and theincrease in costs (for export) are primarily considered. The factors considered for a manager‟scapabilities/skills are the age of the entrepreneur, their experience in the sector (years), andwhether or not they made any strategic planning. The increase in costs considers the expensesincurred for exports as a proportion in the total sales during the period in which it wasexported.The exogenous factors relate to the difficulties of the economic/political context inwhich the company operates. In this sense, economic conditions are considered, primarilythose that are conditioned by the changes in the foreign currency risk: instability in exchangerates resulting from fluctuations in the prices of export abroad, and evaluation of the currencyof the exporting that causes non-competitive prices for the final buyer in the foreign country.Both external and internal factors determine the adoption of the deinternationalizationstrategy, which is characterized by the transition of various stages thatculminates in the reorientation of the company's strategy, whether through a tacticalwithdrawal seen as a failure, or a strategic seen as an opportunity for growth. The dotted linesof the figure show a relationship that will not be studied for the moment. It only describes the

233www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780behavior for each company during the transition between each stage that helps identify thewithdrawal adopted by each one.Data was collected through in-depth interviews. In case A, five key informants wereinterviewed. They were selected according to the experience and the level of participationduring the time that the company was exporting. Selected respondents were the President ofthe Council (formerly CEO), the Sales Director, Sales Manager, the person in charge of theOffice of Foreign Trade (whom was previously working as a direct person in charge of theDepartment of Imports and Exports when he was in the company). The interviews hadduration of 40 minutes to an hour. An interview script was written for the interviews.In case B, the selected key informants were the general manager (owner of thecompany), the person in charge of the sales area (supported for a while in the export), theperson in charge of the collection area (who previously handled export operations) and theadministrator (wife of the CEO). Interviews lasted approximately 40 minutes to 1 hour. Forcase B, some additional data for the triangulation of information was limited mainly due tothe fact that the contacts were no longer available and the ones available were not able toprovide the data. The characteristics of the case studies are set out in table 1 (see annex), forthe analysis of the results of conducted a categorization of variables.TABLE 2. OPERATIONALIZATION OF VARIABLESENDOGENOUS FACTORSFactorsVariablesSkills / characteristics of the directorsLevel of education(CD)Experience in the sectorKnowledge of the foreign marketImportance in the strategic planningVision of long-term growthIncrease in costs (IC)% transportation on level of export costs.% expenditure on export on total sales to theexport.% costs of production on the level of the export.EXOGENOUS FACTORSEconomic conditions (EC)Source: Prepared by the authors.Revaluation of the currency of the exportingInstability in foreign exchange ratesThis facilitated the collection and analysis of the results listed below.4. ANALYSIS AND FINDINGS OF THE RESULTSCompanies show a homogeneous behavior during the adoption of the de-internationalizationstrategy. As noted in the theory, the companies carried out an adjustment between domesticresources and the opportunities and risks caused by the environment in which these operate(Pauwels and Matthyssens, 1999).

234www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780From the first phase characterized by a gradual accumulation of resources to the lastphase which culminates in the withdrawal of the international markets, there is a shift instrategy that allowed them to take advantage of the opportunity for growth in the domesticmarket.The results indicate that the answers of the respondents all agree in recognizing thatthe lack of strategic planning and the economic conditions prevailing in the market,prompted the decision to withdraw from international markets. In one case (case A), theimportance of the costs involved in export are considered, particularly the costs of logisticswhich occasionally increase the final price of the product.Some people thus also considered other factors, even when they were not decisive inthe adoption of the de-internationalization strategy, if they had an influence during the exportprocess. In general terms they consider that the knowledge of foreign markets and that havingthe appropriate intermediary is essential to achieve success in international markets.5. CONCLUSIONS AND FINAL REFLECTIONSThe above results suggest two important conclusions for the study: The factors affecting theadoption of the de-internationalization strategy for both case A and case B, and that areconsidered of utmost importance by the personnel involved in the export process, are mainlythe importance of strategic planning and the instability of the exchange rate caused by theeconomic crisis.The de-internationalization represents a choice strategy that allows them to refocustheir strategy. It also represents an opportunity to grow in other markets, particularly thedomestic market.This study presents some limitations. The first is the limited access of information inprimary or direct sources. The second is the bias of the information because the results comefrom the perceptions of managers and staff whom are engaged on the analyzed variables.REFERENCESAndersen, o. (1993) "On the internationalization process of firms: a critical analysis", journalof international business studies, 24 (2), pp. 209-231.Baldauf Artur; "Cravens David w., Wagner U, (2000)." Examining determinants of ExportPerformance in Small open Economies"." journal of world, 35 (1), pp. 61-79 DatabaseEBSCO.Bell, J; Crick, D.; Young, S. (2004) "Small Firm internationalization and business strategy",international small business journal, 22 (1), pp. 23-56Benito, G.R.G. 1997. "divestment of foreign production operations." applied economics, 29,1365-1377.Cavusgil S. T. (1984) "Differences among exporting firms based on their degree ofinternazionalization" journal of business research, 12 (2), pp. 195-208.

235www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Crick, D. (2002) "The decision to discontinue exporting: SMEs in two U.K. trade sectors",journal of small business management, 40 (1), pp.66-77.De Clercq, Dirk Harry J Sapienza; Crijns, Hans (2005) "The internationalization of Small -Medium - Sized firms" small business economics, 24, pp.409-419.Dussel, p. e. (2009) "the Mexican manufacturing: recovery options" economy advises, 357,pp. 41-52.Fillis Ian (2001) "Small firm internationalisation: an investigative survey and future researchdirections", Management decision, 39 (9), pp. 767-783Jímenez, M. i. j. (2007) "Determinants for the internationalization of Mexican SMEs",Economic analysis, 49 (22), pp. 111-131Johanson, J.; Vahlne, Jan-Erik (1977) " The Uppsala Internationalization Process Model:from liability of foreigness to liability of outsidership", journal of international businessstudies, 8 (1), pp. 23-32Karadeniz, E.; Göcer, k. (2007) "Internationalization of Small firms, to case study of Turkishsmall - and medium-sized enterprises", european business review, 19 (5), pp. 387-403.Leonidas C. Leonidou; Katsikeas, Constantine S. (1996) "The export development Process:An integrative review of empirical models". journal of international business studies, 27 (3);pp. 517-551Leonidou, Leonidas C. (2004), "An Analysis of the Barriers Hindering Small BusinessExport", journal of small business management, 42 (3), pp. 279-302 ABI/INFORM Global.PROQUEST databaseMendoza, C. j. (2010) "The behavior of manufacturing industry of Mexico before the U.S.recession", Journal of Economics, 27 (75), pp. 9-35Pauwels, p. and Matthyssens, p. (1999) "A Strategy Process Perspective on ExportWithdrawal", journal of international marketing 7 (3): 10-37.Pauwels, P. and Matthyssens, P. (2002) „The Dynamics of International Market Withdrawal‟In S. Jain (ed.) State of the Art of Research in International Marketing, Edward ElgarPublishing: Cheltenham, UK, in Press.Pauwels. P.; Lommelen, T.; Matthyssens, p. (2004) "The internationalization process of thefirm: Progression through Institutilization, exploitative and exploratory learning", AIBconference of Stockholm, pp. 1-35Reiljan, e. (2005) "Reasons for of-internationalization: an analysis of Estonian manufacturingcompanies" University of Tartu, on press, pp. 1-28.Rendón, T. A..; Moral. A. a. (2009) "Guanajuato footwear companies." Strategies ofcompetition, presentation of the paper of the safe forum UAM for the study of the Micro,small and medium enterprises.

236www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Salinas, C. e., Tavera, C. M (2007) "The transition of the Mexican economy, 1982-2004, inpublication p." 275-290.Turcan, R.V. (2003) „De-internationalization and the Small Firm‟, In: Wheeler, C.,McDonald, F., Greaves, I. Internationalization: Firm Strategies and Management, PalgraveMacmillan, pp. 208–222.Turcan, R.V. (2011) “De-internacionalization: a conceptualization, AIB- UK & IrelandChapter conference on International Business: new challenges, new forms, new practices”Storbritannien EdinburghTurner, C.; Gardiner, p. D. (2007) "of internationalisation and global strategy: the cases ofbritish Telecommunications (BT)" Journal of Business & Industrial Marketing, 22 (7), pp.489-497.Yin Robert k. (2003), Case study research: design and methods, Applied Social ResearchMethods, Sage publications.ONLINE SOURCEShttp://www.economia.gob.MXWorld of Trade Organization (WTO) (2008). Trade in a globalizing world. Accessed onMarch 3, 2010 page www.wto.org.Secretaría de Economía (n.d.). Information document relating to small and medium-sizedenterprises in Mexico. Accessed on February 7, 2009, page www.cipi.com.mxState system of information Jalisco (SEIJAL) (2008). Survey of situation of the footwearindustry. Accessed on November 26, 2009 page www.seijal.gob.mx.

237www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ANNEX 1TABLE 1. CHARACTERISTICS OF THE CASE STUDIESFEATURES IF COMPANY "A" IF COMPANY "B"Constant exporterSporadic exporterFoundation 1979 1944Company size Small MediumNumber of workers 50 workers at the factory 150 workersMarket goal Children's footwear and Lady ofsynthetic material (rangejustifiably)footwear of leather woman ofmedium to high range, aswell as leather handbags andaccessoriesCurrent markets served 20 States of the Republic (2 22 boutiques throughout theChannel of distributionat the national levelstores outlet own brand)Shoe shops, Department storesand sales catalogue (without ownbrand) and 2 shops outlet ownbrandRepublic and saleSpecialty stores, Departmentstores and boutiques markitself, under the schemastore-in storeCurrent export markets None NoneTime in which exported 1994-1998 Background the years 80s,store located in HoustonTexas. Export to E.U. 2007-2009Served markets Latin America (Colombia, Chile,Costa Rica, Panama)United States, Spain andChileChannel of distributionduring exportIntermediary (sales agent)(promotion and direct marketing)Broker (agent) (through tradeshows and direct sales)Source: Own generation based on the data gathered during field work

238www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780INSTITUTIONAL PLANNING : THE WORKING PRINCIPLESABSTRACTDR. VIKRANT MISHRA*; VINOD PUNDIR***Assistant Professor, Department of Education,Lingaya‟s University, Faridabad.**Assistant Professor, Ch. Devi Lal College of Education,Jagadhri.Planning in Education is an extremely important activity as it forms the basis of allprogrammes of quantitative and qualititative improvement in education. Planning is theprocess of preparing a set of discussions for action in future directed at achieving goals.Without planning, an individual or a society , an insititute or a nation can‟t prosper. It was thefarsightedness of Pandit Nehru that he planned five year plans for the development of Indiaafter independence. Similarly any educational institution, can‟t achieve the targeted goalsunless it goes for proper planning. Educational planning implies taking of decisions for futureactions with a view to achieving predetermined objectives through the optimum use of scarceresources said J.P. Naik. Institutional planning is a part of educational planning. It is confinedto a particular institution and functions keeping the goals of that particular institution. It isone of the grass root level planning. It ensures better and more fruitful use of the resourceswhich the institution has or can have. It is the institution that knows best its needs andproblems that have to be solved. Hence it is the institutional planning that can best plan for itswelfare and development.___________________________________________________________________________INTRODUCTIONAs Confucius remarks, “A man who does not think and plan long ahead, will fined troubleright at his door”. Planning is of vital importance in every walk of life. It is needed inteaching in organization in administration and in business. There may be educationalplanning (including institutional planning), economical planning, industrial planning, townand community planning, and family planning. Whether at home or abroad we needplanning. Planning is a major instrument in any social system. The goals of planning andeducation are similar. Planning is both the determinant and the determiner of educationwhile better education leads to better planning, better planning leads to the development ineducation both in content and quantity.To improve the quality of education from its very base the ministry of education the qualityof education from its very base the Ministry of Education in its Fifth Five year plan gavespecial attention too institutional planning. Formerly Dr.V.K.R.V. Rao had also emphasizedthe importance of institutional planning for qualitative improvement of school. He remarked,“Each institution will have to learn to plan its development on its own individual lines withinthe broad framework of national policy on education”.

239www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TWO APPROACHESThe following two approaches are available in drawing a plan of education for a nationalsystem of education of a country.Two approachesTop Based approach(Start at the central level)Institutional Planning(Start at the Institutional level)MEANING AND DEFINITION OF INSTITUTIONAL PLANNINGM.B.Buch‟s view: At the national seminar on institutional planning held at Bhopal inNovember 1968 Pro. M.B. Buch, while defining institutional planning observed that “ Aprogramme of development and improvement prepared by an educational institution on thebasis of its felt needs and the resources available or likely to be available with a view toimproving the school programmed and school programme and school practices, constitutes aplan for and institution. It is based on the principle of optimum utilization of the resourcesavailable in the school and the community. The plan may be for a longer duration or a shorterduration”.CHARACTERISTICS OR REQUISITES OF A GOOD INSTITUTIONAL PLAN1. Need based and not grant based2. Optimum utilization of resources3. Co-operative affair4. Goal oriented5. Prospective plan6. Specific plan7. Improvement motivation8. School improvement and development9. Continuous development10. Democratic outlook11. Collaboration with the community12. Basis of district plan

240www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578013. Eliminate wastage14. Developing work culture15. Inspection16. Child Centered17. Scientific18. Task orientedMAJOR AREAS (SCOPE) OF INSTITUTIONAL PLANNINGAs the Institutional plan seeks improvement in all directions it must touch varied aspectsof the organization of secondary schools. It must take the shape of an over-all scheme for theimprovement of the school in respect of following:1. IMPROVEMENT OF THE SCHOOL CAMPUS(i)(ii)(iii)Provision of more facilities to the pupils like the supply of drinking water, sanitaryfacilities, mid-day-meals, medical facilities etc.Collection of library books, Magazines, journals, Instructional materials and audiovisualaids for the school.Construction, maintenance and repair of school building.2. IMPROVEMENT OF ACADEMIC FACILITIES(i)(ii)(iii)Division of the curriculum in each subject into monthly and weekly units and subunits.Organization of remedial teaching for slow-learners.Organization of seminars, conference etc. in the institution.(iv) Support of teacher-improvement programmers like in-service training,refresher courses, and orientation courses etc. for teachers.3. IMPROVEMENT OF CO-CURRICULAR ACTIVITIES(i)(ii)(iii)Organization of physical activities in the school.Organization of literary activities like preparation of bulletin boards, wall magazine,improved teaching aids and equipments.Organization of social service projects.4. SCHOOL IMPROVEMENT PROJECTS(i)Functional Literacy programmes

241www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780(ii)(iii)(iv)Adult Education ProgrammesOrganization of S.U.P.W.Maintenance of and love for ecological equilibrium.5. INVESTIGATION AND RESEARCH(i)(ii)Action Research and EvaluationOther Project Works.NEED AND IMPORTANCE OF INSTITUTIONAL PLANNING1. FOR BETTERMENT AND IMPROVEMENTAll institutions have some plans. All the heads of institutions make plans and each teacheralso plans. In fact each headmaster and teacher does plan but this planning my not besystematic adequate and clear. This planning may not exist in a definite or regular form.Planning may mostly be routine planning of the syllabus time table and examination etc. andit may not exist in a definite or regular form and it may be repeated from term to term andfrom session to session without much thinking.2. TO GIVE PROPER DIRECTION TO EDUCATIONAL OBJECTIVESInstitutional planning will gives you right direction to the educational planning in the countryi.e, the upward direction from bottom to top. In the normal trend followed today the directionof planning is from top to bottom. Institutional planning is the recognition of the role ofadministrators‟ teachers, parents, students, educationists and social reformers in the processof planning of education in the country.3. FOR MAXIMUM UTILIZATION OF RESOURCESInstitutional planning leads to optimum use of the existing resources. As a nation we face agreat scarcity of resources with increasing needs and demands from every quarter. Thereforewe must plan for maximum utilization of scarce resource.4. FOR NATIONAL DEVELOPMENTEducational planning must fit into the over all national planning for developmental purposes.As such it gets importance from the need for collective efforts of the people. In the words ofB.D. Nag Chaudhari, Since the implementation of plan‟s and programmes is as important andvital as plan formulation. Institutional planning has a special contribution to make in nationaldevelopment.5. TO ENCOURAGE INITIATIVE OF INDIVIDUAL TEACHERInstitutional plan encourages initiative freedom and creativity of the teacher makes theindividual teacher effective. It motivates them too strive harder for achieving excellence. Itdraws out the best of the teachers.

242www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57806. FOR DEMOCRATIZATION OF PLANNINGInstitutional planning democratizes the process of planning because it takes into confidencethe students the teachers the parents and the head of the institution. Sh.J.P.Naik says, “Amajor reform, I propose, therefore is that the planning that resembles an inverted pyramidshould be broad-based and decentralized by introducing the system of institutional plans.”He strongly planed to have a fine blend of the centralized and decentralized systems ofeducational planning in our country.MAJOR OBJECTIVES (PURPOSE) OF INSTITUTIONAL PLANNINGThe institutional planning should be based on certain predetermined objectives. All activitiesplanned should help directly or indirectly to achieve these ends. One depending upon thecircumstances and needs of the school, the objectives may be short term and long –term.Following are the same main objectivesSh.J.P. Naik, Education Advisor, Government of India, has listed the following fourobjectives of institutional planning:1. Giving freedom to the teacher.2. Making the good teacher effective.3. Involving every teacher in the formulation and implementation of plans.4. Emphasizing what can be done here and now boy mobilizing our existing resources.PROCEDURE AND TECHNIQUES OF INSTITUTIONAL PLANNING1 Analysis of the present situation according to the needs of the institution.2 Survey of the existing resources.3 Preparation for the improvement of school programme.4 Implementation.5 Evaluation.ESSENTIALS OF INSTITUTIONAL PLANNINGA seminar on Institutional planning organized jointly by the National Council of EducationalResearch and Training and the Ministry of Education, Government of India inNovember,1968 at Regional College of Education, Bhopal recommended the following fouressentials of institutional planning;1. DIFFERENT LEVEL OF IMPROVEMENT PROGRAMMESThe principal should realize that all improvement programmers will not go at the same rate.Some programmes will develop at a faster take than others depending upon the ability of the

243www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780teachers concerned and also upon the degree of simplicity and complexity. Whereas someteachers will lead at a faster rate in implementing improvement programmes, several otherteachers will lag behind. A broken front approach where each teacher goes with his speedshould be followed by the principle. He should neither insist nor accept the same level ofdevelopment for different involvement approaches.2. EACH SCHOOL HAS ITS OWN INDIVIDUALITYNo two schools are alike. Some schools may be big some small some schools may be fulldayschools and some part-time shift schools. The principal should realize that each school isdifferent form the other in its resources problems and resources. It is natural that planning foreach school will be different from the other. Institutional planning respects the individualityof each institution.3. INVOLVEMENT OF ALL THE TEACHERS OF THE SCHOOLIn the process of preparing the school plan for improvement and development theprincipal/headmaster should take care to involve all the teachers of his school. He should alsomake conscientious efforts to involve the community groups as well as the students. In factevery member of the school population should be involved in the task of preparation andimplementation of the school plan.4. LOOKING FORWARD PLANWhile planning for the institution the experience of the past year should be taken intoconsideration and the plan should be a forward looking plan aiming at high ideal, viz. too bethe pursuit of excellence. The Principal/Headmaster should not tae up institutional planningin isolation of the national plan, state plan and district plan. Main target of the national planshould be squarely put before the staff member to give them direction for planning.INSTITUTIONAL PLANNING AND TEACHERS COLLEGESThe seminar on Institutional planning held at Regional College of Education, Bhopal inNovember 1968 made the following main recommendations in the direction:1. Improvement of the syllabus2. Method of teaching3. Meetings of subject teachers4. Involvement of school teachers5. Students‟ reaction6. Orientation course7. Teaching practice8. Guide to the schools

244www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57809. Research committee10. School teachers as members11. Extension work12. Education leadershipROLE OF TEACHER IN INSTITUTINAL PLANNING:The role of teachers in institutional planning can be summed up under the followingpoints:1. IDENTIFICATION OF NEEDSAn institutional plan should be based on the needs of the school. Teachers should play animportant role in identifying these needs. They should help in making a thorough survey ofthe school in order to find out the problems. They can discuss pros and cons of the problemsin staff meetings. They can analyze the present position in respects of various needs of theschool like adequacy of school building furniture and equipment library and laboratoryfacilities admission procedure enrolment of students and system of examination.2. SURVEY OF RESOURCESTeachers should play a vital role in making a survey of the existing(a) Resources available in the school like library laboratory and building equipment(b) Resources easily available through the Government, Management and School EducationBoard(c) Resources available in the community like public library play ground bank factoriesworkshops hospitals etc.Teachers should play active role in making the best use of these resources for the benefits ofthe students.3. PREPARATION OF IMPROVEMENT PROGRAMMESTeachers should help the head of the institution in preparing a list of improvementprogrammes for the school with details about each programmer. He should help the head ofthe institution in defining each improvement programmed in terms of utility for the schoolinvolvement of school population and evaluation and follow up. He can play a significantrole in starting improvement programmes projects and action research investigations.4. IMPLEMENTING THE PROJECTTeacher makes a selection of the projects that are to be undertaken and guidelines areprepared. The projects should be executed through the material and human resources atcommand. The execution will be done through the co-operation of teacher and otherpersonals like headmaster students and members of the community.

245www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805. EVALUATING THE PROJECTSuccess of institutional planning is determined through evaluation. Teacher plays a vital rolein assessing the end products the outputs or the results of the plan. He helps in evaluating theplan when the work in progress and when the plan has been completed. If the plan issuccessful he helps in institutionalizing the principles and projects. If the plan is notsuccessful he helps in investigating the causes removing defects and evaluating the project.Competent and dedicated teachers can certainly show remarkable achievement within thepresent framework and resources available.SCHOOL ADMINISTRATIONEach school is headed by one Headmaster. The head of an institution is solely responsible forinstitutional planning and management. He or she decides how to use the available resourcesand how to initiate steps to mobilize the resources. He or she involves the teachers, parents,other associations etc. towards the achievement of qualitative education for youngergenerations.Powers of head of the institution:1. 1. Supervising the teachers2. 2. Maintaining attendance of teachers and records3. 3. Reviewing the notes of lessons4. 4. Sanctioning of leave to teachers5. 5. Preparation of statement for claiming pay for teachers6. 6. Conducting District Level examination(Quarterly-Sep, Half Yearly-December, Annually - Mar/Apr)Generally academic year of the educational institution begins with first day of June of theyear and ends with the 15th day of April of the following year.

www.zenithresearch.org.in246ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780WORKING PATTERN OF A SCHOOLWORKING PRINCIPLES OF EDUCATIONAL PLANNING1. PROPER FORMULATION: Planning procedure and process should be carefullyformulated, unified and systematically carried out. Its objective must be clear. There shouldbe a coordination and integration among various components, activities, teams of peopleinvolved in the planning. All the activities of planning finally should be carried outsystematically.2. PART OF NATIONAL PLANNING: Education planning should be recognized andcarried out as an integral aspect of national planning .Education should lead to social andnational development. Its activities and programmed must take into account the overallnational development. Education should be essentially linked with national development.Hence, educational planning should be an integral part of total national planning. Theobjectives, activities, programmes, procedure of educational planning, therefore aredetermined in the larger context of national planning.3. BASED ON RESEARCH: Educational planning should be based on organized research andthe decisions involved in the plan should not be arbitrary or intuitional. The final choice ofthe alternatives should be warranted by factual information and results of objective research.

247www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Research based on study of trends, factual relation, survey, hips, new developments, etc.,should provide a sound basis for taking decisions incorporated in the plan.4. CONTINUOUS PROCESS: Educational planning should be a continuous process requiringconstant adaptation of plans to meet emergency needs. No plan should be considered final,rigid and perfect. It may change any time in future depending upon new situations, conditionsand circumstances and other exigencies, The plan once prepared must be flexible andadaptable to meet emergency needs.5. FUNCTIONAL REALISTIC AND PRACTICAL: Educational planning should not belimited to existing situations only. It should be workable. It must be such as it can beimplemented. If it requires certain ideal condition and circumstances which can not beobtained, it would be an ideal good plan, but not a workable plan. It should be a realistic andfeasible plan. It should be conform to the situational realities. It should achieve the objectivesin the circumstances and conditions which are obtained there.6. INVOLVE THE ACTIVE AND CONTINUING PARTICIPATION OF INTERESTGROUPS AND ORGANIZATIONSIn all educational organization, there are many people and several groups involved in theimplementation of the plans at different stages. Involvement of these people in the planning issignificant with long experience and expert knowledge, they may contribute significantly tomore functional and practical decision making. They may have a greater sense ofidentification with the plan so prepared. They may be better motivated to implement thedecisions contained in the plan. This participation of interested groups and person should becontinuous at all stages so that these persons and groups may feel that it is their plan,prepared by them and not a plan imposed n them by someone at the top.7. RESULT IN SPECIFIC RECOMMENDATIONS WHICH ARE UNDERSTOOD ANDACCEPTED BY PARTICIPANTSThe plan recommendations should be clear and descriptive of what is it to be done, why is ittoo be done, how is it to be done. It should be, self explanatory so that people who areinvolved in its implementation may understand what they are required to do. If there issomething in the plan which is not acceptable to the people who have to implement that, itmay alienate them and they will not have their heart in the work related to its implementation.8. CONTINUING EVALUATION OF THE PLANNING PROCESSThe process of planning implies analysis of the validity of assumptions, relevance of dataused, and quality of procedures employed soundness of interpretation. These element areimportant even after the plan is ready Frequent assessment of these enables future adaptationof the plan according to changing conditions.9. MEETING THE NEEDS OF THE PEOPLEAll planning for development is made for meeting the needs of the people. Educationalplanning meets the needs of the students and all those who are engaged in teaching, researchand other related work. It is the pupils for whom provisions of education are made and plansare prepared. Hence their needs have to the centre of all considerations. If the plans are being

248www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780prepared for teachers, administrators, etc their needs should form the central basis forpreparing the plan.10. PREPARED IN A COMPREHENSIVE AND WELL- INTEGRATED MANNERThe plans prepared should describe everything about its every aspect. It should be detailedand well-integrated. All its components and stages should be incorporated in the plan in asequential and related order.11. PROJECTED IN TERMS OF THE AIMS AND GOALS OF EDUCATION OFSOCIETY CONCERNEDIt stresses the need for identifying and keeping the societal goals in mind while preparingeducational plans. Education is means to achieve the social goals. Education being a subsystemof the larger society system planning in education has to synchronize with the goals ofthe larger society.12. NEEDS- BASED AND SITUATION- ORIENTEDThere cannot be a single best plan for all purposes and all times. Each plan should have aunique character which should be determined by the needs of the situations. Specific andunitary plan can be prepared to solve immediate problems. Similarly short term and long termplans may be prepared.APPROACHES TO EDUCATIONAL PLANNINGOver the years and across many different countries, various approaches to educationalplanning have been developed. These can all be subsumed under following models orapproaches:(1) Intra-Educational extrapolation model.(2) Demographic project model or school mapping.(3) Manpower or human resource development approaches or model.(4) Social demand approach or model.(5) Rate of Return approach or model.(6) Social justice approach or model.Each of these models has its own premises, a procedural logic and methodology.1. INTRA-EDUCATIONAL EXTRAPOLATION MODELConceptually, the task of intra-education extrapolations‟ consists of estimating thequantitative implications for the system as a whole. It means setting targets for one particularcharacteristic of the educational system. Thus if the targets were to be the achievement ofuniversal primary education up to certain grade level by a certain year the education plannerswould extrapolate from the datum the ways in which the supply of teachers, the construction

249www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780of new buildings, the production of new textbooks, and like would need to be scheduled toensure that the target will be reached. Flow statistics of various kinds become an importanttool for this kind of analysis. This can become particularly involved and complicated when anattempt is made to take subsational (regional district) variations into account.2. DEMOGRAPHIC PROJECTION MODELDemographic projections from a part of virtually all approaches to educational planning.They provide the most basic parameters for estimating the population that a futureeducational system is to serve. Even the most limited intra-educational projection isdependent on, some rough indication of the size and the age composition of a givenpopulation at future point in time. However the estimation of demographic developments hasbecome a source of planning criteria in its own right. Estimations of the size of the age cohortto be served by a certain level of the educational system as a specific future point in time leadto some future projections of intra-educational kind .In most societies the size of age cohort israther reliably known at least five or six years before it enters the first year of formalschooling and many more years before secondary and tertiary institutions are attended. Themajor sources of errors in this approach to educational planning have to do with points in theeducational system where members of an age group can and do make choices betweendifferent educational options (e.g., between more vocational or more academic form ofschooling).SCHOOL MAPPINGBy constructing rather detailed „maps‟ of the actual or projected catchments areas of schoolsin terms of their demographic, geographic, social and transportation characteristics andattempt is made to identify physical location that would maximize access to a school for agiven population. Also referred to as “micro planning” the school map strategy is animportant vehicle for moving educational planning from a largely national frame of referenceto more detailed concerns with regional and local conditions and constraints in theeducational development including concerns with the distribution of educationalopportunities across national and regional entities.3. MANPOWER APPROACHAlso know as the human resource development approach, this implies that the social systemneeds educated and trained people with certain well-defined knowledge, attitudes and skills.The demand for such people i.e. manpower is variable and changes with the technical,economic and social developments. Educational, training and development of such people isthe human resources development for maintain and improving the social system and also forsocio-economic and political modernization of a country. Educational system should be asdesigned or change in educational system should be so planned that it should fulfil thecountry‟s man-power requirement. It should produce as many educated and trained people ofdifferent categories such as doctors‟ engineers‟ teachers, graduates, postgraduate etc. as arerequired by the country for its various services.Short production or over production of these will be a defect of planning or failure ofplanning technology. Human resource development approach to planning in educationassumes a greater importance if education is regarded as a factor of economic development ofa country. New ideas, new techniques and new knowledge of production embodied in

250www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780physical capital determine the rate at which the economy of a country‟s as a whole canadvance. This is the contribution which education makes to country‟s economic developmentas it is from higher education and research establishments that the new ideas and techniqueflow skills, which individuals acquire through educational and training are a result of formaleducation. Every country therefore builds up a system of education to fulfil these needs fortrained, skilled and efficient manpower. Educational planning in most countries focuses onthis perspective.4. SOCIAL DEMAND APPROACHThe number of student trying to enter in schools or trying to stay in and go further reflectssociety social demand for education. Social demand for education has a way of growingfaster than manpower requirement, leading, to unemployment of the education. Mountingeducational aspirations of parents and children and population explosion account for rapidlyrising social demand for education in most countries of the world since the end of the worldwar. The crucial relationship between social demand and educational system capacity tosatisfy it this key point in planning for education.5. THE RATE OF RETURN APPROACHAlso known as cost benefit or cost-effectiveness approach to educational planning itemphasizes that the investment in education should be based on the benefits or returnoccurring from that investment. The expenditure on education should be thought of as a formof national investment justified by higher productivity and greater earning of educated.UNESCO has been very strongly advocating educating education as an investment.Education as an investment means two things.(!) As a result of training imparted by training by training institutions, the pupil must acquireproductive capacity, be n apposition to add to the sum-total of production, should do muchmore than what he was doing without education Difference between the two should be calledproductivity ascribed to education.(!!) The levels of earning of educated people must be higher to those of the people who arenot educated. If this is so it mayo be said that return on education is positive.Theoretically investment in education both at the level of and individual as well as at thelevel of the nation is bound to be positive as long as there is no unemployment of theeducated. Positive investment depends upon a closer relationship between education andmanpower requirements of a country. Education is expected to be beneficial to both theindividual and the nation as a whole. Man education and higher earnings are positivelyrelated. Hence people want more education.6. SOCIAL JUSTICE APPROACHAlso known as social planning or planning for social development. It shapes education bysocial or national goals of a country. The national policies and the constitution broadlydescribe these goals and social development. Many of these goals large expected to beachieved through education. Hence, it becomes essential the educational system to contributeto the achievement of these goals. Hence educational planning inevitably takes theseexpected goals of social development into consideration to be achieved through education.

251www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Social justice is an important goal of social development. Making provision for achieving thisgoal would amount to social justice approach too educational planning.Social justice means providing facilities and equal opportunities for development to all thepeople of a country. For example Article 45 of the Indian constitution urges the state toprovide for free and compulsory education for all children up to the age of fourteen. Similarlymaking special provision for the education of children from economically and sociallybackward communities is an attempt on rendering needed justice to this section of thesociety. Weaker sections of the society need special support from the government for theirsocial and economic development. For the balanced development of the whole society, it isessential to make such special provision so while planning programmes in the field ofeducation. Making such considerations at the time of educational planning means adoptingsocial justice approach to educational planning.CONCLUSIONInstitutional planning is a complex idea, is to be worked out scientifically. It is a cooperativeaffair, undertaken by all the staff members of the school, who realize their full responsibilitiesand duties. It success depends on the attitude, training, a well to face realities and a cooperativespirit among the planners at each level of educational hierarchy. The plans shouldbe drawn in such way that the development is maximum and the chance of returns to theinvestment made are the greatest within the resources available. Institutional planning is anorganized way of doing things in an institution. It leads to the attainment of objectivesthrough intelligent utilization of the resources of the institution.BIBLIOGRAPHYAbhigyan (2004). Business Journal from FORE. Vol. XXII, No. 2.Aggarwal, Y.P. (1988). Research in Emerging Fields of Education. New Delhi: Sterling.Aggarwal, Y.P. (1990). Statistical Method: Concepts, Applications and Computations. NewDelhi: Sterling.AI-Maghamesi, S.F (1989). Managerial behaviour of secondary school principals asperceived by teachers and by principals in Saudi Arabia, Mississippi State University,Dissertation Abstract International, Vol. 50, No. 2, p. 311-A.Akbar, F.I. (1989). Saudi elementary school principals managerial behaviour as perceived byprincipals and teachers, Southern California, Dissertation Abstract International, Vol. 49, No.8, p. 2029-A.Almagidi, A.M. (1989). Marlagerial behaviour of public elementary school principals asperceived by principals and their teachers in a selected school district in south region of SaudiArabia University of South Florida, Dissertation Abstract International, Vol. 50, No. 5.

252www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Amarnath, (1980). Comparative Study of the Organizational Climate of Government andPrivately Managed Higher Secondary School in Jalandhar District. Unpublished doctoraldissertation, Punjab University.Anderson, Carl R., Hellriegel, Don and Slocum, John W. (1978). Managerial response toenvironmentally induced stress, Academy of Management Journal, pp. 260-272.Angel, Harold and Perry, James L. (1983). Organizational commitment: Individual andorganizational influences, Work and Occupations, Vol. 10 (2), 123-146.Bala, M. (1989). A Study of Leadership Behaviour and its Correlates of College Principals inHaryana. Unpublished doctoral dissertation, Kurukshetra University.Bendix, R. (1956). Work and Authority in Industry, New York: Wiley.

253www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780INDIAN PREMIER ACADEMIC RESEARCH INSTITUTIONSFACULTY’S INTEREST IN PATENT FILLINGB. K. R. NAIK*; SUDHIR K. JAIN**; SURENDRA S. YADAV****Assistant Professor, Department of Management Studies, National Institution of Technology Trichy,Tamil Nadu – 620 015, India.**Professor, Department of Management Studies, Indian Institution of Technology Delhi,New Delhi – 110016, India.***Professor, Department of Management Studies, Indian Institution of Technology Delhi,New Delhi – 110016, India.ABSTRACTThe Premier Technical Academic Institutions (PTAIs) of India are known for their cuttingedge research in the area of science and technology. The research output has been given aroom in the promotion and recognition of research faculty in PTAIs. However, most of theresearch output is disseminated in the form of research publications in the referred journals.This paper analyzes the research faculty’s interest in patent filing at PTAIs. In order to findout faculty interest in patent filing, we have designed a questionnaire and collected the datathrough the questionnaire on ten-point scale and analyzed with the help of Scale value Indexand t-test. The result shows that, most of the faculty members are interested in protectingtheir inventions rather earning money through commercial exploitation of theinvention/patent. It is clear from the results that, the research faculty is more interested inpatenting in order to protect the invention.KEYWORDS: Institution, Patents, PTAIs, Research Faculty, Scale Value Index (SVI)._____________________________________________________________________INTRODUCTIONIn the present global scenario, intellectual property rights (IPRs) have become veryprominent and a driving force for the research community. IPRs play an important role in thedevelopment of an organization and a country’s economy on whole. In the view of theimportance of IPRs, the Government of India, with the help of world intellectual propertyorganization (WIPO) has conducted IPRs awareness workshops and conferences at variousacademic institutions across the country. In the western part of the world, many top rankeduniversities like, Massachusetts Institution of Technology (MIT), Harvard University,University of California, Stanford University etc., have earned millions of dollars throughlicensing of their intellectual property. In India, most of the Indian Institute of Technology(IITs), Indian Institute of Science (IISc), Council of Scientific and Industrial Research (CSIR)etc., have started of doing commercial-worthy research, licensing their intellectual propertyand moving towards the endeavors.Patenting is a multi stage process and it takes enough amount of researchers’ time andwhich has a negative impact on patent counts. Patenting involves, prior-art search, draftingthe patent specifications with the help of an attorney and filing the application in patentoffice. The entire process for filing a patent application takes a maximum of two to sixmonths time and this amount of time is very precious for a research faculty who is carrying

254www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780out many activities apart from research work. The inventors, who are doing the patentingactivity at PTAIs, are facing some administrative blocks, but still, there are incentives whichmotivate them to do patenting. The main motivations may be, recognition among the fellowfaculty members and as well as in the research community world-wide in their researchdomain. Second, earning through commercialization/licensing of patent. It also influences theprofessional growth of the research faculty.Since the research topic has become significant in recent years and few studies havebeen conducted by various researchers in the dimensions of patent data analysis, connectingpatent counts with economic development of a nation. There was no specific study whichtalks about interest in patenting. The various studies with patent as the centre point arediscussed here. Analysis of patent related data has for long been considered to be animportant method of assessing various aspects of technology change. Most have used patentstatistics as a tool for studying either the relationship between technological development andeconomic growth (Penrose, 1951; Taylor and Silberstron, 1973), or in order to assess theresearch and innovation process in a national and international context (Bosworth, 1984;Schiffel and Kitti, 1978). Some studies, however, have analyzed it from the perspective ofcompany policy for assessing the level of technology development in a particular sector,taking patent statistics as a technology indicator (Aston etal., 1989; Mogee, 1991; Liu, 1997).The study has been done in the area of safeguarding intellectual property rights in thedigital age (Watkins, 1998). Several studies on patent information suggest its use for R&Dand technology development, R&D policy and management, Science & technology policy,Inventors’ productivity in a publicly funded R&D agency and Royalties, evolving patentrights, and the value of innovation. A study was done on Intellectual Property Rights andInnovation in SMEs in OECD Countries by (Esteban, 2005). Studies have been done toanalyze field-wise university patents effect on corporate patents and corporate R&D. Asignificant effect of university research on corporate research was found, particularly in thearea of Drugs and Medical Technology, and Electronics, Optics, and Nuclear Technology. Inaddition, university research appears to have an indirect on local innovation by includingindustrial R&D spending. He suggests that, the spillovers are limited to specific areas and notjust the diffuse effect of a large research university (Jaffe, 1989). A detailed analysis onuniversity patenting in the context of universities as a source of commercial technologysuggested that between 1965 and 1988 the rate of increase of important patents fromuniversities was much less than their overall rate of increasing of patenting (Henderson et al.1997).The effects of the Bayh–Dole act of 1980 on the growth of patenting and licensing byU.S. universities and found that Bayh–Dole appears to have had little effect on the content ofacademic research at these universities (Mowery et al. 2001). Research has been done toexplore the degree to which patents are representative of the magnitude, direction, and impactof the knowledge spilling out of the university by focusing on the Massachusetts Institutionof Technology (MIT), and in particular, on the Departments of Mechanical and ElectricalEngineering and suggested that in two important ways patenting is not representative of thepatterns of knowledge generation and transfer from MIT: patent volume does not predictpublication volume, and those firms that cite MIT papers are in general not the same firms asthose that cite MIT patents. However, patent volume is positively correlated with papercitations, suggested that patent counts may be reasonable measures of research impact(Agrawal and Henderson 2002). In Indian context, the R&D expenditure and patents counts

www.zenithresearch.org.in255ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780have been analyzed (Naik et al. 2004). The IPR administrative support at Indian PPTAIs havebeen analyzed and concluded it is low (Naik et al. 2006). The online patent filing and itsimpact on environment has been analyzed and found that the e-filing system saves the treesand in turn the environment (Naik 2010). Some have given a review of multidisciplinarystudies on IPR from the perspective of their use in R&D and highlighted the importance ofcreating awareness about IPR among scientists and delves upon the studies on patentinformation for R&D and technology development, R&D policy and management, andlibrary and information science (Gupta 2003). A study has been done on the effect ofincentives on inventions in universities and found that economic incentives affect the numberand commercial value of inventions generated in universities and the universities which givehigher royalty shares to academic scientists generate more inventions and higher licenseincome, controlling for other factors including university size, quality, research funding andtechnology licensing inputs. The incentive effects are much larger in private universities thanin public ones (Lach and Schankerman 2005).METHODOLOGY & DATA COLLECTIONThe present study is based on development of theoretical framework towards determining thefactors contributing to importance for patent filing. The required primary data for the studywas collected through survey of research faculty members with the help of a structuredquestionnaire. The sample includes the first five IITs set up in 1950s / 1960s and IndianInstitute of Science (IISc) Bangalore. IIT Guwahati that was set up in early 1990s, IITRoorkee which was created in 2001 (by renaming Roorkee University) and the newlyestablished IITs are not included in the sample institutions because of they have not been inexistence as the old IITs for sufficiently long time.Personal interviews and discussions with faculty have been carried out. Their responses aregathered on structured questionnaire, which is prepared on the basis of insights gathered fromliterature and discussions with the faculty members from PTAIs. In this study, conveniencesampling methods was used for selecting the sample of respondents. The data collection hasbeen done through a questionnaire survey. Personal visits and e-mails were used to collect theresponses. In initial stages of data collection, a lot of time was consumed in obtainingacceptance of individuals for filling up the questionnaire. The respondents were contactedpersonally, by phone and through e-mails to return the questionnaire. Up to four remainderswere sent to all the respondents for returning the questionnaire. The totals of 247 completedresponses were finally collected from the six PTAIs.After the data collection, the questionnaires were screened. These were then codedand processed for statistical analysis with the help of SPSS (Statistical Package for SocialSciences). Techniques, such as scale value index (SVI), standard deviation (SD) and t-testwere used to compute the data. Scale value index (SVI) of a factor has been calculated as;SVI = Li Fi / N, Where, Li is the response score on the scale, Fi is the frequency ofrespondents responding to Li level and N is the total number of respondents responding tothat question. SVI shows the average of scores for any factor, while the SD shows thevariability of scores. T-test has been performed to see if significant difference existedbetween responses of research faculty across the PTAIs and research fields.The six institutions were named A, B, C, D, E, and F. This has been done to keep theidentity of each institution undisclosed. The main purpose for this is the possible sensitivities

256www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780involved in disclosing the names of these institutions. PTAIs have multiple disciplines inscience and technology. The research areas (fields) have been broadly classified into fivecategories, viz., BIO (bio-technology and bio-science), CHEM (chemical technology andchemical science), CIVIL (civil engineering and related areas), EEE (electrical andelectronics engineering, and mechanical engineering). This classification was made tosimplify the analysis.DATA ANALYSIS & INTERPRETATIONINSTITUTION-WISE ANALYSISPTAIs are well established science and engineering institutions, these intuitions domore research and publish research articles in refereed journals. Research is part of their coreactivity. The patent filing activity was started in PTAIs before independence (Institution Ahas filed its’ 1st patent application in 1946). In recent years the patenting activity has got its’momentum in PTAIs.

257www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 1: INSTITUTION-WISE RESEARCH FACULTY’S RESPONSES FOR INTEREST IN PATENT FILING ONA 10-POINT SCALEInstitutionS.Reasons for Interest inTotalNoPatent FilingA (N=41) B (N=38) C (N=36) D (N=39) E (N=43) F (N=50)(N=247)SVI %* SVI %* SVI %* SVI %* SVI %* SVI %* SVI %*a. Protecting the invention 8.41 95.68 7.58 86.23 7.67 87.26 8.49 96.59 8.79 100.00 7.36 83.73 8.04 91.47b. Seeking recognition 7.54 92.40 7.45 91.30 8.08 99.02 7.82 95.83 7.93 97.18 8.16 100.00 7.84 96.08c.d.Achieving higher position(promotion) 6.44 82.35 7.18 91.82 6.64 84.91 7.08 90.54 7.28 93.09 7.82 100.00 7.11 90.92Enhancing earnings throughlicensing of patents 6.37 90.35 6.13 86.95 5.89 83.55 6.05 85.82 7.05 100.00 6.72 95.32 6.40 90.78

258www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 2: INSTITUTION-WISE RESEARCH FACULTY’S RESPONSES FOR INTEREST IN PATENT FILING ONA 10-POINT SCALES.NoInstitutionA (N=41) B (N=38) C (N=36) D (N=39) E (N=43) F (N=50) Total (N=247)SD t P SD t P SD t P SD t P SD t P SD t P SD t Pa 1.94 9.64 .000 2.55 5.02 .000 1.35 9.61 .000 1.83 10.2 .000 1.70 12.7 .000 2.15 6.10 .000 2.02 19.7 .000b 2.24 5.83 .000 2.39 5.02 .000 1.34 11.6 .000 2.42 5.99 .000 1.97 8.10 .000 1.94 9.69 .000 2.08 17.7 .000c 2.33 3.18 .003 2.36 4.40 .000 1.71 3.99 .000 1.98 4.98 .000 1.96 5.97 .000 1.73 9.46 .000 2.04 12.7 .000d 2.07 2.68 .011 1.93 2.01 .051 1.89 1.23 .226 2.23 1.62 .114 2.34 4.33 .000 1.88 4.58 .000 2.08 6.83 .000%*: % of highest SVI as found for any one of the field, A, B, C, D, E and F: Name of the Institution, N: Number of respondents frominstitution, SD: Standard deviation, t: t- value , P: t-test significance level, a) Protecting the invention, b) Seeking recognition, c) Achievinghigher position (promotion), d) Enhancing earnings through licensing of patent.

259www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780After the advent of Trade Related Intellectual Property Rights (TRIPS), Governmenthas focused on establishing the IPR chairs at PTAIs to do more IPR related activities. Withthe help of World Intellectual Property Organization (WIPO), Government has organized IPRsensitization programs/workshops/seminars/conferences across the country. PTAIs haveformulated research friendly IPR policies to boost the patent culture among the researchfraternity. The awareness has changed the research community’s thinking process frompaper-worthy research to patent-worthy research. In recent times research faculty is workingtowards commercially viable patent-worthy research.The importance of faculty interest in patent filing has been analyzed by taking theresponses of research faculty from all the six PTAIs on 10-point scale with the help of fourvariables, viz., protecting the invention, seeking recognition, achieving higher position andenhancing earning through licensing of patents. The importance of protecting the inventionhas given maximum importance among the four variables as the important criteria for patentfiling. Across the institutions, researchers primarily concerned about protection of theirinvention. Institution E has given high (SVI of 8.79) importance for protecting the inventionand institution F has rated low (SVI of 7.36) on given scale. Institutions A and D have similarresponse for protecting the invention. Seeking recognition through patenting is one of thedriving forces for research faculty to do patent-worthy research. Research faculty has givenmore importance (overall SVI of 7.84) as one of the factors for patent filing. Institution F hadgiven maximum (SVI of 8.16) for seeking recognition is one of the main criteria for filingpatents.The patent count will make significance difference to individual as well as theorganizations growth. Most of the R&D organizations will give priority to patents as one ofthe main criteria for promoting employees to higher position. Therefore, patents will playvital role in achieving the higher position through promotion. Research faculties across theinstitutions have given fair importance for achieving higher position as one of the criteria’sfor patent filing. Research faculty from institution F has given high importance (SVI of 7.82)for the factor, achieving higher position as the criteria for filing patents.It is observed that earning is compulsory for most of the people for sustainabledevelopment and to lead a comfortable life. Most of the researchers, who do consultancywork, patenting and technology development, are interested in earnings through theirintellectual property. Earning is one of the motivations behind their fruitful research work.The research faculty’s interest in patent filing to enhance the earnings through licensing ofpatents has given an above average importance across the institutions. Across the institutions,institution E has shown more interest for the factor enhancing earnings through licensing ofpatents as one of the important criteria for filing patents. Table 2, SD values are scatteredbetween 1.5 to 3.08, it shows the high deviation from SVI. The t-test values are highlysignificant.RESEARCH FIELD-WISE ANALYSISIn this section, research areas in science and engineering are divided into five broadcategories. Analysis has been carried out to see the difference among the research fields/areasfor the factors, protection of the invention, seeking recognition, achieving higher position(promotion) and enhancing earnings through licensing of patents (table 3). Comparison hasbeen carried out between the research fields with respect to above factors.

260www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Across the research fields, research faculty was given highest priority for the factor,protecting the invention, as the main important criteria for patent filing (SVI of 8.04). Acrossthe research fields, mechanical and related areas research faculty has given high importance(SVI of 8.32) for the protection of invention as the criteria for patent filing and researchfaculty from civil and electrical related areas have shown comparatively low interest thanothers for the same. Research faculty from different research fields have given fairimportance for seeking the recognition through patent filing as one of the important criteriafor patenting with a SVI of 7.84 on ten-point scale. In academic research institutions,research faculty is recognized by their R&D strength and, patent is one of them. Researchfaculty from mechanical and related field of research have given high importance for seekingrecognition as important criteria for filing patent and, research faculty from BIO and relatedfield of research have shown low importance for seeking the recognition as the criteria forfiling patent.Patent has been given due importance in promotions and related activities. Facultyfrom different research fields have stressed fair (SVI of 7.11) importance for achieving higherposition (promotion) as one the important criteria for filing patents. Research faculty fromMechanical related area has given high importance (SVI of 7.62) and BIO related area facultyhas given low (SVI of 6.30) importance for achieving higher position (promotion) as one theimportant criteria for filing patents. Faculty across the research fields have given low priorityfor enhancing earning through licensing of patents as one of the important criteria for filingpatents. It is clear that, earning through patent licensing is not a top priority for patent filing;however, research faculty from mechanical field has given high importance (SVI of 7.01)among all. From table 4, t-test values are significant. SD values are scattered between1.59 to2.83, therefore, the responses are uneven across the research fields.TABLE 3: RESEARCH FIELD-WISE FACULTY’S RESPONSES FOR INTEREST INPATENT FILING ON A 10-POINT SCALEReasons forInterest inPatent FilingResearch FieldBIO (N=30) CHEM (56) CIVIL (50) EEE (38) MECH(N=73)Total(N=247)SVI %* SVI %* SVI %* SVI %* SVI %* SVI %*Protecting theinventionSeekingrecognitionAchieving higherposition(promotion)8.23 99.04 8.14 97.95 7.68 92.42 7.68 92.42 8.31 100.00 8.04 96.757.03 83.79 7.59 90.46 8.06 96.07 7.50 89.39 8.39 100.00 7.84 93.446.30 82.68 6.70 87.93 7.50 98.43 6.66 87.40 7.62 100.00 7.11 93.31Enhancingearnings throughlicensing ofpatents6.07 86.59 5.91 84.31 6.44 91.87 6.34 90.44 7.01 100.00 6.40 91.30

261www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4: RESEARCH FIELD-WISE FACULTY’S RESPONSES FOR INTEREST INPATENT FILING ON A 10-POINT SCALEResearch FieldS.NoCHEM (N=56) CIVIL (N=50) EEE (N=38) MECH (N=73) TOTAL (N=247)BIO (N=30)SD t P SD t P SD t P SD t P SD t P SD t Pa 2.28 6.55 .000 2.39 8.27 .000 2.10 7.33 .000 2.45 5.49 .000 1.78 13.6 .000 2.02 19.7 .000b 2.83 3.04 .005 2.67 5.86 .000 2.23 8.13 .000 2.33 5.28 .000 1.59 15.5 .000 2.08 17.7 .000c 2.68 1.64 .113 2.61 3.43 .001 2.24 6.31 .000 2.34 3.05 .004 1.90 9.53 .000 2.04 12.7 .000d 2.21 1.40 .171 1.97 1.56 .124 2.06 3.22 .002 2.57 2.02 .051 1.99 6.48 .000 2.08 6.83 .000%* = [(Mean value)n/Highest Mean Value] x 100, Highest SVI has been put in bold, N:Number of respondents from the research field, SD: Standard deviation, t: t- value (2-tailed) ,P: t-test significance level, a) Protecting the invention, b) Seeking recognition, c) Achievinghigher position (promotion), d) Enhancing earnings through licensing of patents.CONCLUSIONResearch faculty across the institutions and research fields has given high importancefor protecting the invention as very important criteria for patent filing. Reason may be, tostop exploitation and infringement from others and can be licensed to recover R&Dexpenditure. With the licensing and technology transfer, the researcher will get some royaltyand the institution will at least recover return on investment. The surplus amount may bereinvested in R&D. Seeking recognition has given next important criteria for filing patent bythe research faculty across the institutions and research fields. Recognition in the socialgroup is important for any individual, so in the academic institutions, patent is one of themean which help the individual to get recognition among their research group.Patent will act as one of the catalysts for promotions in academic research institutions.Everyone aspires for promotion and rewards for the value addition they have made to theinstitution. Therefore, research faculty across the institutions and research fields have stressedachieving higher position (promotion) as the third important criteria for filing the patent.

262www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Only few percentages of total patents will result in commercialization/ technologytransfer or licensing. So, most of the inventors are not much keen about the earning throughlicensing of patents, however, the response given by the research faculty across theinstitutions and research fields for enhancing earning through licensing as one of the factorsfor patent filing is significant (SVI of 6.40) on given scale. Comparatively it is a lowimportant criterion for filing patents at PTAIs.REFERENCEAgrawal, A. and R. Henderson, 2002. Putting Patents into Context: Exploring KnowledgeTransfer from MIT, Management Science, 28 (2002) 44-60.Esteban, B., 2005. Intellectual property rights and innovation in SMEs in OECD Countries.Journal of Intellectual Property Rights, 10: (2005) 34-43.Henderson, R., A. Jaffe and Ma. Trajtenberg, 1997. University vs. Corporate Patents: AWindow on the Basicness of Invention, Economics of Innovation and New Technology, 5 (1)(1997) 19-50.Jaffe, A.B., 1989. The Real Effects of Academic Research. American Economic Review,Working Paper 79: 957-970, (1989).Lach, S. and M. Schankerman, 2005. Incentives and Innovation in Universities. NationalBureau of Economic Research Working Paper No. 9727 (revised), (2005).Naik, B.K.R., S.K. Jain and S.S. Yadav, 2004. Flexibility in R&D: Changing Pattern ofPatenting in India. Presented at GLOGIFT-2004 International Conference, Massoorie, India,(2004).Naik, B.K.R., S.K. Jain and S.S. Yadav, 2006. Management of Intellectual Property inPremier Technical Academic Institutions in India, Presented in the 6th Internationalconference of GLOGIFT-2006, at Asian Institution of Technology, Bangkok, (2006).Belenzon, Sharon and Mark Schankerman, 2006. Harnessing Success: Determinants ofUniversity Technology Licensing Performance, Centre for Economic Policy Research(CEPR), Discussion Paper No. 6120, (2006).Bijlani, Subhash K., 1997. Intellectual property and technology change. Productivity, 38 (1)(1997).

263www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Bruce, L.R. Smith and Claude E. Barfield, 1996. Technology, R&D and the Economy.Chapter: Brookings Institution Press, (1996).Cohen, W.M. and D.A. Levinthal, 1989. Innovation and Learning: The Two Faces of R&D,The Economic Journal, 99 (1989) 569-96.Cornelli, Francesca and Mark Schankerman, 2001. Patent Renewals and R&D Incentives,Rand Journal of Economics, 30 (2001) 197-213.Mowery, David C., Richard R. Nelson, Bhaven N. Sampat and Arvids A. Ziedonis, 2001.“The Growth of Patenting and Licensing by U.S. Universities: An Assessment of the Effectsof the Bayh–Dole act of 1980”, Research Policy, Vol. 30, 2001, pp. 99-119.B. K. R. Naik, 2010. The Role of e-Technology in Patenting Activity: A Study ofInternational Patent Filing System, 7th International Conference on E-Governance, ICEG-2010, 22 – 24th April, 2010, Indian Institute of Management Bangalore (IIMB), Bangalore,India.Penrose, E., 1951. The Economics of the International Patent System, John HopkinsUniversity Press, BaltimoreBosworth, D. L., 1984. Foreign patent flows to and from the United Kingdom. ResearchPolicy, 13: 115-124.Schiffel, D. and C. Kitti, 1978. Rates of Invention: International Patent Comparisons',Research Policy, vol 7, no 4, October, pp.324-340.Taylor, C. T. and Z. A. Silberston, 1973. The Economic Impact of the Patent System: AStudy of the British Experience, Cambridge University Press, Cambridge.Mogee, M. E. 1991. Technology Policy and Critical Technologies: A Summary of RecentReports. Washington, D.C.: National Academy Press.Aston, R., Cowden, W. B. & Ada, G. (1989). Antibody-mediated enhancement of hormoneactivity. Molecular Immunology 25, 435-46.

264www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Liu, M., A consti.tutivme odelf or olivine-spineal ggregateasn di ts application to deepearthquake nucleation, J. Geophys. Res., 102, 5295-5312, 1997.

265www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTIMPACT ON GENERAL MANAGEMENT AREAS DURINGRECESSION IN INSURANCE INDUSTRYDR. D.D. BEDIA*; MS. ANNADA PADMAWAT***Reader, Pt. Jawahar Lal Nehru Institute of Business Management,Vikram University, Ujjain.**Sr. Lecturer & HR Manager, Mahakal Institute of Management,Ujjain.Insurance industry has always been a growth-oriented industry globally. On the Indian scenetoo, the insurance industry has always recorded noticeable growth same as other Indianindustries. This study endeavors to examine how the global recession influences theefficiency of management functions/areas or practices of insurance industry. Duringrecession general management practices of any venture may get affected adversely.This study is an attempt to find out the functions of insurance company which are highlyinfluenced by the recession or financial crisis. The study is based on the collectinginformation regarding impact measurement of recession on general management functioningin insurance sector. Primary data is collected from the different insurance sector basedcompanies. There are several identified areas or functions of insurance companies which canbe the criteria of measuring the overall recession impact on general management practices ininsurance industry like Recruitment, compensation/salary, Retention/turnover, Stress,Organizational structure & operations, Product and sales. Mainly this paper focuses howthese areas/functions are being affected by financial downturn.This study finding will help in identifying for crucial management functional areas andproactive planning for the same.KEYWORDS: Insurance, globally, recession, management functions and financialdownturn._____________________________________________________________________INTRODUCTIONRecession is a terrific word in economic parlance. 2008 has proved to be a turning pointperiod for many large multinationals. Investments banks are getting closed, private banks aregetting nationalized, other financial institutions and companies have to depend upon rescuepackage from government to survive. Worldwide, cash and credit has become major cause ofconcern, investments are drying up and growth in industries and services are witnessingfreefall. It is known that through a period of recession, employment gets affected adversely,including rising levels of unemployment, reduced income levels, etc. During recession thegeneral scenario become such that people have lost employment, stocks are going down,businesses and ventures are running into losses, no new projects are being undertaken butmost importantly it is the loss of opportunity for everything. But even in this dark scenario,there are several industries who have managed them to keep recession at bay.Arecession generally refers to circumstances where there is deceleration in the economy being

www.zenithresearch.org.in266ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780reported in several quarters or over a sustained period of time and there is a turn down in theoverall GDP growth for two or more consecutive period of time.PAYROLL EMPLOYMENTSecondary Source: http/woodwardhall.files.wordpress.com/2009/03/emp309.jpgThe above payroll employment data shows that the decline in employment from the peak inDecember 2007 is now larger in percentage terms due to depression.The economic scenario was troubled for some time with global inflation being reported athistoric levels in 2008 and also domestic inflation in various countries being the highest inlast decade. In India it went as high as 12.5%. The expansion of emerging economies likeChina, Brazil, and India has created job opportunities and correspondingly a new middleclass which has increased demand for goods and services. The Indian economy has beengrowing at an impressive rate in the past few years. Growth is being registered at an averageof around 9% for the past three years. Along with China, India is emerging as a one of themost attractive destinations for investment for entrepreneurs worldwide. However therecession has hampered the prospects of growth in all industries and crisis developed intoglobal recession with demand and consumption both falling down. The future growthanticipations were also very low as following:

267www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 1: THE INSTITUTE OF INTERNATIONAL FINANCE (IIF) PROJECTIONSFOR GROWTH (2008-10)CountryGrowth PredictionsWorld Economy2% growth in 2008 and predicted toshrink to 0.4% in 2009USA (World’s Largest Economy) 1.3% growth in 2009Japan (World’s Second LargestEconomy) 0% growth predicted in 2010China 6.5% growth in 2009India 5% growth in 2009Source: Veronica, Smith “Global economy to contract in 'severe' 2009 recession: Bankinggroup”, Posted on 19 December, 2008GENERAL MANAGEMENT AREAThe function of the business is to provide goods and services that satisfy the need ofcustomers. If the business is seen as open system it interacts with its environment totransform inputs through transformation process to outputs. If we see the functionalclassification of the business activities we can consider the term general managementpractices. General Management refers the task which is performed at all levels of business.It consists of all activities which are to be performed to manage any business activity and toget maximum output. General management is responsible for all areas or functioning ofbusiness. Most commonly, the term general management refers to the execution which isoverall responsibility for managing both the revenue and cost elements of a company'sincome statement. For measuring the impact here in study we are taking few generalmanagement practices or areas such as recruitment, Compensation/salary,retention/turnover, stress, organization structure & operations, product, and sales.RECESSION TURMOIL AND INSURANCE INDUSTRYInsurance sector is one of the fast growing sector in India, now these days lot of players are inthe region of India like Birla Sunlife, Bharti Axa, LIC, HDFC Insurance, ICICI prudentialStar Union Dai-ichi Life Insurance, Reliance Life, DLF etc beside that lot of service providercompanies are providing solutions to them like TCS etc. The slowdown in economicactivities in India has lead to a sharp reduction in asset creation in the Indian industries. Thisalong with rigorous cost cutting measures in all businesses has directly impacted theinsurance industry in the country.

268www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The insurance sector played an important supporting role in the recession by good features ofthe role played by financial guarantee insurance in wrapping, and enriching the creditstanding of, multifaceted structured products and thus making these products more attractiveto investors. A main channel through which insurance activities were affected by the marketturmoil was using their asset side investments in equity and debt instruments as well asstructured finance products. However, in general, the traditional life and general insurancesectors have largely been bystanders in the crisis, and have been impacted by its unplannedeffects, such as the fall in equity markets, declines in interest rates, economic slowdown anddecline in credit quality, and, in some cases, counterparty exposures to failed financialinstitutions.OBJECTIVES OF STUDYThe main purpose of this paper is to briefly review the background, financial and economiccrisis; to identify the insurance sector general areas, its features, as well as to provide apreliminary assessment of the impact of the recession on insurance sector areas. Objectivesare defined as follows:1. To provide the overview of recession & insurance industry, and general management.2. To determine the key parameter for measuring the impact on general managementareas/functions of insurance industry.3. To assess the impact of recession on general management areas in insurance sector.LITERATURE REVIEW(OECD Report) 26 this report is based on large part of a special questionnaire circulated inOECD countries. Statistics presented in this report is largely draw on official data transmittedby Delegates to the IPPC to the OECD Secretariat. It clarifies the nature of the impact of thefinancial crisis on the insurance sector in OECD economies. It reviews governmental andsupervisory responses to the crisis. It also serves to identify a number of policy andregulatory issues and advances some general policy conclusions.(Faiq Mahmood, Xia Xinping, Humera Shahid, and Muhammad Usman) 11 examined theefficiency of Chinese stock market and how the global financial crisis influences theefficiency of Chinese stock market. The results of the study shows that Chinese stock marketis weak form efficient and past data of stock market movements may not be very useable inorder to make excess returns and the global financial crisis has no significant impact on theefficiency of Chinese stock market.(A.Q Khan and Mariyam Mehtab) 1 attempted to study the ongoing global recession from theperspective of both the world and the Indian economy. The causes, impact, problems,remedial measures and other issues related to the downswing in the economy are alsocritically analyzed to develop an intricate understanding of the issue. Also strategies andsuggestions are offered to deal with this present crisis in the most appropriate way.(John Benson and Phillippe Debroux) 15 reviewed how did financial crisis impact on Japanesehuman-resource management (HRM)? They addressed this question by reviewing HRMdevelopments since 1990. They described that while it is clear that changes have taken place,

269www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780it is difficult to separate out the effects of economic forces from the more widespread changesin society and the natural limits of the Japanese business system.(ILO Paper) 12, briefly reviewed the background, causes, characteristics and trajectory of theongoing financial and economic crisis; to define the financial services sector, its occupationsand their educational requirements, as well as recent important trends; to provide apreliminary assessment of the impact of the crisis on finance sector jobs; and to givesuggestions on possible policy responses to address the effects of the crisis on finance sectorworkers.(Marc Devis - Contact author of investopedia.com) 20 , has embarked that how recessionimpacts on both large as well as small business entities along with the features of recession inboth businesses.(Chris Seabury - Contact author of investopedia.com) 7 , has conceptually defined bothrecession & depression. He has also suggested few negatives & positives of recession whichare very useful in practices.(Dilip Maitra, DH News services) 10 , shows that the insurance industry is facing twinchallenges i.e. economic slowdown and lower margins due to freeing up of premium rates.He has also recommended that the slowdown in economic activities in India has led to asharp reduction in asset creation in the Indian industries. This along with rigorous cost cuttingmeasures in all businesses has directly impacted the general insurance (non-life) industry inthe country.(A research study by gulftalent.com) 21 , study is intended to provide an overview of keyemployment and recruitment trends in Gulf region since the financial crisis started. This isaimed at corporate decision makers, government authorities as well as professionalsemployed or interested in working in the region.“Managing in a Downturn- HR Interventions that create enduring value” (A study by Hewittconsulting) 19 , in this study consultancy has shown the figures & facts about downturn andalso emphasized on the potential impact of downturn in different aspects.RESEARCH METHODOLOGYRecession affects different places and areas of business with varying strictness. According tothe World Bank, developing nations are bear the impact of the economic, and social falloutfrom the current recession. As well, it is quite likely that various industries of developingnations will be excessively affected by the current recession. As insurance industry is alsobearing the impact of economic slowdown, here we study that in some aspect. Fewcompanies under study are taken for the collection of responses. This study is an attempt tofind out the functions of insurance company which may highly influenced by the recession orfinancial crisis. The person working in the sector at all levels have been taken up for studypurpose.The basic purpose of study is collection of responses from employees from various differentinsurance companies & analyzes the same. Responses from 63 employees of differentmanagement levels are being considered for the study.

270www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Study is based on primary data & data are collected personally by collecting and filling ofquestionnaires. Questionnaire contains two parts i.e. Part A & Part B. Part A is prepared toget the personal variable of individuals like age, gender, designation, department,management level etc.Part B contains 27 statements which are related to different 8 areas/ functions of insurancecompany. These areas together are the criteria of measuring the overall impact of financialcrisis in insurance sector. Few areas are: General, Recruitment, compensation/salary,Retention/turnover, Stress, Organizational structure & operations, Product and sales.Each area is having some statements to measure the impact on the same area, and eachstatement is required to rank on the five point lickert scale as follows:1 – Strongly Agreed 2 – Agreed 3 – Neutral 4 – Disagreed5 – Strongly disagreedFor this study the various necessary statistical tools are used for data analysis.FINDINGS AND INTERPRETATIONSNull Hypothesis: There is no significance association between agreed level for recessionimpact and general management areas of insurance sector.ALTERNATIVE HYPOTHESIS: There is significance association between agreed levelfor recession impact and general management areas of insurance sector.CHI – SQUARE TEST FOR SIGNIFICANCETABLE 1: DESCRIPTIVE ANALYSIS OF DATA FOR CHI –SQUARE TESTING(OBSERVED FREQUENCIES)StronglyAgreedAgreedNeutralDisagreedStronglyDisagreedTotalGeneral 7 21 18 14 2 62Recruitment 5 13 24 15 5 62Compensation /Salary 9 24 19 9 1 62Retention /Turnover 0 34 23 5 0 62

271www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Stress 12 36 14 0 0 62OrganizationStructure 6 36 17 3 0 62Product 3 18 25 15 1 62Sales 7 21 32 1 1 62Total 49 203 172 62 10 496Table 1 shows the observed frequencies of responses for impact of recession on differentgeneral management areas of insurance sectorTABLE 2: DESCRIPTIVE ANALYSIS OF DATA FOR CHI –SQUARE TESTING(EXPECTED FREQUENCIES)StronglyAgreedAgreedNeutralDisagreedStronglyDisagreedGeneral 6.125 25.375 21.5 7.75 1.25Recruitment 6.125 25.375 21.5 7.75 1.25Compensation /Salary 6.125 25.375 21.5 7.75 1.25Retention / Turnover 6.125 25.375 21.5 7.75 1.25Stress 6.125 25.375 21.5 7.75 1.25OrganizationStructure 6.125 25.375 21.5 7.75 1.25Product 6.125 25.375 21.5 7.75 1.25Sales 6.125 25.375 21.5 7.75 1.256.125 25.375 21.5 7.75 1.25Table 2 shows the expected frequencies of responses for impact of recession on differentgeneral management areas of insurance sector

www.zenithresearch.org.in272ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780BASIC COMPUTATIONAL EQUATIONX 2 .05 = 99.19 (calculated value with degrees of freedom – (r-1) (c-1) = 7X 2 .05 = 14.1 (tabulated value with degree of freedom 7.As we can see X 2 .05 = 14.1 < 99.19i.e. X 2 .05 = tabulated value < calculated value.INTERPRETATIONSince the calculated value is above the table value, so we can reject null hypothesis i.e. wecan say that there is association between respondents’ level of consent for recession impacton general management areas of insurance sector.TABLE 3 DESCRIPTIVE STATISTICS OF THE LIKERT SCALE DATAStronglyAgreedAgreedNeutralDisagreedStronglyDisagreedMax.ValueGeneral 7 21 18 14 2 21Recruitment 5 13 24 15 5 24Compensation /Salary 9 24 19 9 1 24Retention /Turnover 0 34 23 5 0 34Stress 12 36 14 0 0 36OrganizationStructure 6 36 17 3 0 36Product 3 18 25 15 1 25Sales 7 21 32 1 1 32Mean 6.5 22.5 21 7 1St. deviation 7.5 34.5 24.25 14.25 1.25

273www.zenithresearch.org.inno. of employeesZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780This table explains the descriptive statistics of general management areas of insurance sectorand level of agreeness of the employees for recession impact on the same. As mean of theagreed level (22.5) shows that all respondents’ perception regarding impact of recession ongeneral management area of insurance sector is positive.IMPACT OF RECESSION ON DIFFERENT AREAS OF INSURANCE SECTOR4035302520151050Strongly AgreedAgreedNeutralDisagreedStronglyDisagreedareasThis chart demonstrates that in various and different management areas the impact ofrecession is shown. Respondents’ are agreed that stress level and turnover has been higherduring recession, and structure and compensation trends were also affected by recessionwhereas general management practices and recruitment patterns were very less affectedduring that period.TABLE 4: LIKERT SCOREStronglyAgreed Agreed Neutral DisagreedStronglyDisagreedweightedaverage(Likert Score)General 7 21 18 14 2 0.6Recruitment 5 13 24 15 5 0.29

274www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Compensation/ Salary 9 24 19 9 1 1.18Retention /Turnover 0 34 23 5 0 1.89Stress 12 36 14 0 0 2.03OrganizationStructure 6 36 17 3 0 1.89Product 3 18 25 15 1 0.79Sales 7 21 32 1 1 2.19INTERPRETATIONTable 4 shows the likert score for all general management areas of insurance sector for whichresponses and level of agreedness of respondents from different insurance companies havebeen taken. As we see that the highest score for sales (2.19) is calculated followed by Stresslevel (2.03), Retention/ turnover & Org. structure (1.89) & Compensation (1.18), this showthat these areas of insurance sectors are affected during recession whereas Product, generalmanagement practices & recruitment activities are less affected by the same.This data statics illustrates that the impact of downturn is high on selected managementfunctioning areas i.e. sales of product is down, stress level has become higher, turnover ratehas increased as termination cases are also there along with the variation or fluctuation inorganizational structure as various branches of insurance companies may be closed.CONCLUSIONThe economic recession, may have different level of impact on different areas and sectors asin last recession period was seen. However, the impact of it on insurance sector is marked.This study has tried to determine and define various functioning or areas of insurance sectorfrom which we can spot the impact of downturn. This research has also attempted to embarkon the specific areas where the insurance companies have to work out and plan for theirstrategies during recession period. It concluded that sales followed by Stress level, Retention/turnover, Org. structure & Compensation areas are affected adversely throughout recessionwhereas Product, general management practices & recruitment activities are less affected bythe same. It is to be recommended that companies in insurance sector should put direct &positive efforts and plan strategy to improve the management system for economic recovery.

275www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780REFRESENCES1. A.Q. Khan and Mariyan Mehtab, (2010), Strategies and opportunities for indianeconomy to come out of the impact of global economic meltdown morass”,International Review of Business & Finance, Vol. 2, no. 1, pp 1-27, ISSN 0976-58912. Anta (2009), “Recession in India” available at www.oppapers.com3. Astrey Alec (2009), “The impact of recession on the health of rural citizens in BritishColumbia, Canada online available from www.rrh.org.au4. Bedia DD & Padmawat Annada (2011), Impact of financial downturn on insurancesector in India, paper accepted for publication by Prestige Institute of Management ,Dewas (M.P.)5. Bahaudin G Mujtaba (2009), “The impact of a slowing economy on human resourceprofessionals” HRM Review – The ICFAI University Press6. “CEO reconsider companies’ people strategies and post recession role of HR” (2010),online available at www.pwc.ru/ru/press-release/20107. Chris Seabury (2009), “Recession and Depression: They aren’t so bad”, onlineavailable at www.investopedia.com8. “Credit Crisis and Insurance” (2008), New Geneva’s Association Website Section,Press release – Geneva association information newsletter atwww.genevaassociation.org9. “Current recession is no great depression” and “Recession impact on all overcountry” – Articles available from www.smartmoney.com10. Dilip Mitra (2009), “Recession hits general insurance industry” online available atwww.deccanherald.com11. Faiq Mahmood, Xia Xinping, Humera Shahid, and Muhammad Asman, (2010),“Global financial Crisis: Chinese Stock Market Efficiency”, Asian Journal ofManagement Research, Vol. 1, no.1 pp 90-101, ISSN 2229-379512. “Impact of the financial crisis on finance sector workers” (2009), International LabourOrganization Publication online available at www.ilo.org13. “Impact of recession on Indian workers abroad” (2009), online available atwww.anagalla.net14. “Indian Insurance Industry: an industry competitive analysis” online available fromwww.oppapers.com15. John Benson and Philippe Debroux (2004), “The changing nature of Japanese HumanResource Management: the impact of the recession and the Asian financial crisis”,International Studies of Management and organization, vol 34, no. 1, pp 32-51

276www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578016. Kenneth W. Green and Bobby Medlin (2010), “Impact of recession-based workplaceanxiety”, International Journal of Management and Enterprise Development, vol 9, no3, pp 213-23217. Kathleen Patterson & Gary Oster, (2009) “The global economic meltdown-impact oncorporate human resources” HRM Review – The ICFAI University Press18. Kirsty Hamilton (2004), “Insurance and financial sector support for adaptation” IDSBulletin, vol 35, issue 3, pp 55-61 online available at onlinelibrary.wiley.com19. “Managing in a downturn – HR interventions that create enduring value” (2009),Hewitt Consulting Presentation20. Marc Davis (2009), “The impact of recession on businesses” online available atwww.investopedia.com21. “Recession and Employment in the gulf” (2009), Presentation available atwww.gulftalent.com22. Ross Garnaut & Gigang Song, (2003), “China 2002: WTO entry and world recession,Asia Pacific Journal of Management, 20, 565-56723. Susan Woodward and Robert Hall, (2009), “Financial Crisis and Recession”, onlineavailable articles from www.woodwardhall.files.wordpress.com24. Sridhar Ganesh, (2009), “The role & deliverables of HR to improve businessperformance during industry downturn”, Presentation at JK- HRM conference,Madurai25. Terrence Hogarthe, David Owen, Cynn Gambin, Chris Hasluck, Clare Layonette andBernard Casey, (2009), “The equality impacts of the current recession”, Report47 byInstitute for employment research, University of Warwick, available fromwww.equalityhumanrights.com26. “The impact of the financial crisis on the insurance sector and policy responses”(2010), _ Organization for Economic Cooperation and Development (OECD) Reportavailable at www.oecd.org/crisisresponse27. www.faculty.fuqua.duke.edu28. www.mckinseyquarterly.com29. www.ipublishing.co.in

277www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTHUMAN RESOURCES STRATEGY AND SME GROWTHS. DAVID RAJAN*; DR. B. MADHAVAN***Research Scholar, Sathyabama University,Chennai, India.**Professor, AMET University,Chennai, India.Indian Small & Medium Enterprises (SMEs) need to build systems and processes that willenable them to use strategic planning tools to guide their business towards a brighter future(Femin, J. 2003). Often it is asserted that the field of strategic management lacks coherenceand it is highly fragmented. However, there is research evidence to show how companieshave achieved excellent performance and sustainable competitive advantage by implementingstrategic plans (Anderson M. 1999). This paper highlights the important HR strategies thatneed for SME’s growth in India.___________________________________________________________________________INTRODUCTIONStrategy primarily deals with issues of long-term implications. In recent years, businessorganizations have gained the power to predict the future with reasonable accuracy usingvarious performance management systems and harnessing the tremendous increases incomputing power and communication technology. With this power, they can exploit thepotential of the emerging scenarios (Anderson M. 1999). Unfortunately, most Indian SMEsare either unaware of the power of these strategic frame works or do not show any inclinationto use them for strategic planning. As the tumultuous political and economic events of thepresent decade have made long - term planning a much more risky business, there is a realpossibility of more small and medium firms staying away from strategic planning,notwithstanding the fact that except a relatively small number of firms in the knowledgesector, a majority of the Indian SMEs are still operating in environments where probabilitydistributions of outcomes are knowable (Gootee, B. H., 1998). These firms can veryeffectively apply the standard tools for strategy implementation. Moreover, a disciplinedapproach to strategy formulation can also create an organizational mindset capable ofhandling totally uncertain situations better and produce superior results that call for thehighest level of integration of entrepreneurial and strategic thinking (French, R. P., & VanHarrison N.P. (1992), (Meitner, M. P. 1997).CURRENT SCENARIOHenry Mint berg’s observation of strategic planning as an oxymoron is probably quite apt todescribe the approach of Indian SMEs towards business strategy (Fanersher, J. 2003). FewIndian SMEs have formal strategic planning processes that generally do not go beyondformulation of mission-vision statements. In most cases the process neither provides asufficient range of strategic options to consider nor presents an engaging road map of acompelling future.

278www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780A basic requirement for sound strategic planning is to formulate an action plan to achievelong-term objectives of SMEs, which are derived from its mission and vision. The firms needto clearly identify their value drivers and develop appropriate metrics. SMEs mustdemonstrate the necessary commitment, capability and discipline to generate, preserve andanalyze data essential for continuous monitoring of their strategy implementation process.This process also has to be blended with a creative component (Friedman, S. 2000) (Gootee,B. H., 1998).For firms that only focus on the data management part, strategy becomes a purely numberdrivenprocess and this is unfortunately true even for most of the large Indian companies.They try to explain the future merely on the basis of past data and hence the management'scontinuous appeal for out-of-box thinking does not generally motivate the employees to breakthe mindset barrier. On the other end of the spectrum, many small entrepreneurial firms donot make any investment at all to systematically collect and analyze data, without which it isimpossible to implement a solid analysis based strategic planning process. These entrepreneurialfirms formulate strategies banking on their creative thinking and pure gut feet (Mack,D. R. 2002).STRATEGIC PLANNING TOOLSAs a result of wide circulation of business plan formats by various training and academicinstitutions, consultants, lending institutions and popular publications, SMEs in India areaware of standard strategic planning tools like market research, strengths-weaknessesopportunities-threats (SWOT) analysis, five competitive forces (though many of them maynot know it as Porter's framework), cost benchmarking, etc (Raphael, T. 2001).ROLE OF CONSULTANTSSMEs at a lower end, operating in a relatively stable market and with small capital base,often do not have the required management information system. Many firms are also not familiarwith the applicability of standard statistical tools for decision-making. This has createda big demand for consultants to assist these SMEs in strategy formulation andimplementation for achieving better performance (Gootee, B. H., 1998). Unfortunately, theknowledge level of many consultants is also severely limited by lack of academic research inIndia to indicate the impact of various factors such as caste, culture, gender, industry, personalattributes, etc on performance of SMEs.OBSTACLES TO STRATEGYWith the continuous drop of software and hardware prices, many Indian SMEs are technologicallywell equipped to strategies. But the inability to change mindset in quicksuccession to adapt to qualitatively new situations appears to be the major obstacle forstrategizing. For many years, while operating under a license-and-permit-Raj system, Indianbusinesses had developed a mindset suitable for a seller's market that did not requireassessing customers' need and uncertainty. Liberalization during the 1990s demanded a newmindset appropriate for a customer-led system. It also demanded innovation, though mostlyincremental, for sustainable performance (Raphael, T. 2001). Uncertainty has reached aqualitatively new level today, accompanied by a mind-boggling pace of technologicalprogress (Friedman, S. 2000). The SMEs, particularly in the knowledge sector, now require a

279www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780very different kind of mindset for effective strategic planning to meet the challenges andexploit the tremendous opportunities created by such uncertainties (Anderson M. 1999).RESOURCE MOBILIZATION IS KEYSMEs must have a realistic assessment of their assets that are critically important for implementingtheir strategies (Gootee, B. H., 1998). Particularly in a networked economy, theymust learn how to mobilize and leverage network ties, strong and weak, depending upon thenature of their innovations.A STRATEGY GUIDE MAPThe firms that are operating in less knowledge-intensive sectors can still make reasonablyaccurate projections and implement their chosen strategy to achieve superior performance.Techniques like scenario planning and dynamic modeling can be also very effectively used toimplement strategies depending upon the level of uncertainties a firm is facing. Firms that areoperating under a very high level of uncertainty must learn to formulate and implementstrategies to promote radical innovation that calls for a different kind of organizationalmindset (McCartney, C. 2002), (Reymonds, A. 1997).Management by metrics can still provide the right roadmap for strategy implementation formost Indian SMEs. The firms need to acquire the skills to develop the key performanceindicators, their measurements and setting realistic but stretchable targets. Quality, cost,schedule, safety, management, delivery, timeliness and security are some of the key areas thatare directly tied to a firm's mission. In order to make strategy implementation all pervasive,the departments, business units and individuals of the firms have to develop their own indicatorsto provide linkages with the strategic indicators of the firm (French, R. P., & VanHarrison N.P. (1992).COMPETITIVENESSSMEs must leverage the advantages provided to them by their size and flexibility in order tobe competitive, rather than blindly adopt the precedent set by large enterprises. (Gootee B. H.1998). Competitiveness has become a generic word encompassing everything from costefficiency to innovation; its general use has obliterated its significance (Fanersher, J. 2003).A business maximizing profits is said to possess a competitive edge without actually delvinginto the factors that determine this difference. Sales and cost are synonymous with businessand by reducing costs or increasing sales, profits can be increased. More clearly, Profit =Sales - CostHowever, this is not an end. How do you in crease sales and how can the costs be reduced? Inthe answers to these questions lies the root of competitiveness. Reducing costs is a matter ofachieving optimum utilization of resources, upgrading systems, improving human capital andintroducing advanced technologies - a phenomenon we call operational effectiveness (Parus,B. 2000).Sales, on the other hand, are a function of positioning, promotion and marketing. Bothapproaches achieve similar results but with a fundamental difference. Operationaleffectiveness has limits to it. One can use the best possible technologies available but costcurves can be bent only to a certain extent. Sale is a marketing approach and can tap existing

280www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780as well as potential markets to a wider extent. Positioning as a strategy is therefore critical fora company to be competitive (Friedman, S. 2000).THE COMPETITIVE EDGECreating value and an image in the minds of the consumer about the product is the essence ofpositioning. The competitive edge is determined by its uniqueness. Its features, the value itprovides and the emotions attached to it create a need for the product in the minds of theconsumer (Parus, B. 2000).The competitive edge of the firm is defined by the novelty offered by the company. Itsinnovative structuring of the value chain defines its productivity, which in turn determines itscompetitiveness. This approach creates sustainability as well as vulnerability. The former isdue to its continued ability to capture and retain market share while the latter occurs due toever-changing customer and product environment (Gootee, B. H., 1998).ADVANTAGES OF BEING SMALLSmall rocks can hold within a great wave. (Homer, 1990). Big industrial structures exemplifyoperational effectives. They possess the resources and the capital to create an efficient andunique value proposition, but their weakness lies hidden in their strength. Unlike smallerunits; their structures are rigid for the dynamic environment they exist in. Their imaginationis restricted by their sheer size and their strategies unbending to the ever-changing rules ofthe game (Anderson M. 1999). The small-scale sector has the agility required to competewith the shifting dynamics of the world. They are better placed to foresee the metamorphosisof the industrial structure and the origin of newer and different demands in the market. Theirstrength lies in their ability to grasp that change and adapt their structures to provide asolution. They become the epicentre of the tidal wave of innovation, which transforms themarket realities as it spreads.For example, during the dot com bubble, small enterprises with minimal capital andequipment became the highest amassers in the game. Sabeer Bhatia did not require thepacking of Microsoft create Hotmail, which acquired it later. From a strategic point of view,a small-scale industry has a greater ability respond to the changes in the environment andrecreate its value proportion to maintain their uniqueness in the market (Montague, J. 2001).Continuous improvements, reinventions of ideas, consumer-centric products, creating nichesin the market and competing with the changing political and economic environment are theneed of the hour, but the stark reality is the ever-shitting determinants (Gootee, B. H., 1998).Another prime example of the effectiveness of a small structure is fashion designers. Theircompact production and marketing units allow the designers to satiate the demand for varietyand meet quick demand and supply schedule. The last fifty years have seen a distinct shiftfrom supply-driven to demand driven businesses. Technology has made transactions simpler.Consumer demands are met precisely. Big industrial structure cannot cater to the needs of thepeople at such close levels.SMALL IS BIGWhat small enterprises need to do is adopt a more strategic approach and exploit their potentialto cater to change. Their imagination at present is clouded with the brilliance of thebigger sizes around oblivious to their own worth. Their strength lies in their size and their

281www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780capability to produce, not goods and services, but solutions to the emerging challenges in themarket.They have the potential to form centers of innovation. Their focus should be to monitor thesechanges and to adopt their models to cater to them and create strategies to exploit theseopportunities better. As Friedman, S. (2000) said, "Don't be afraid to take a big step if one isindicated. SME can't cross a chasm in two small jumps.FACING GLOBAL COMPETITIONSeveral existing elements in the SME universe need to come together to create a strategy forfacing global competition, writes Chandrakant Salunkhe, President, Small and MediumBusiness Development Chamber of India (SME Chamber of India). No one can deny theneed to educate, nurture, guide and assist the small and medium enterprises (SMEs) in allpossible ways to perform well against competitors, especially in the present scenario(Anderson M. 1999). The cluster approach, networking, supply chain management, supportfrom banks and financial institutions, technology transfers, contract manufacturing andinnovations are some of the major factors that would facilitate the improvement in thefunctioning of the SMEs to enhance their competitiveness. Here are some elements thatSMEs can use to create a strategy to tap international markets.THE CLUSTER ADVANTAGEClusters can achieve better results for SMEs improvement and business growth throughcooperation with one another, and often with large buyers, at different stages of productionand marketing. This promotes the effective and sustainable use of available resources,generates scale economies and fosters the dissemination of project-specific information andexperiences that feed into important lessons learnt and best practices used (Fanersher, J.2003).NETWORKING AND PARTNERSHIPSEntrepreneurs require effective interaction with customers, suppliers, bankers, regulatingauthorities and government agencies. SMEs would need to constantly update informationabout existing stakeholders while being on the lookout for new contacts (Lee, C. 1999).MANAGING THE SUPPLY CHAINAny manufacturing or trading activity requires a stream of suppliers for their success. Therelations between the customer and the supplier should be strengthened to ensure a steadysupply of raw materials, components, semi-finished and finished products at regular intervalsat short notice. As every enterprise wants to minimize its inventory costs, it is very importantto identify, develop and support the suppliers and sub-suppliers to produce and supply thegoods in tune with the main customers' requirements (Fanersher, J. 2003). Ancillary unitsdeveloped around the major large establishments are one way to cut short the transport timeas well as for close monitoring of the products. To build effective supply chains, entrepreneursmust develop their technical and managerial capabilities and be able to extractpayments from large companies on time in addition to assured yearly orders. Impartingproper training towards this end periodically could be a responsibility taken up by majorcustomers and other SME-supporting agencies (Friedman, S. 2000).

282www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TECHNOLOGY TRANSFERS AND JVSAnother important avenue to improve the competitiveness of the SME sector is by resortingto technology transfers and joint ventures (JVs). As the global demands continuously changeand the buyers specify stringent international standards, SMEs should update their knowledgeand adopt latest technologies to produce quality products to match the market demand andalso look for joint-venture partners from across the world. The mass-scale productionfacilitated by new technologies, machineries and processes will result in reduced cost, whichwill make SMEs competitive in the world market (French, R. P., & Van Harrison N.P. (1992).CONTRACT MANUFACTURINGNot all products and services can be manufactured and offered by the SME sector with itsown resources. Contract manufacturing, in which enterprises shift their manufacturing baseslo cheaper locations, is very beneficial for both the buyers and sellers and creates a healthysupply chain from big to medium to small to micro enterprises.INNOVATIONIn order to stay ahead of the competition, SMEs should innovate new products, services andadopt innovative financial, marketing and other management techniques from time to time.CHALLENGES INTO OPPORTUNITIESIt is imperative and important for SMEs to convert challenges into opportunities. This can bebetter achieved with the support of organizations that are dedicated to the development of theSME sector. Organizations like the SME Chamber of India, SME Development Institute ofIndia and India International Trade Centre (IITC) create awareness and provide assistance forthe enhancement of export-import, investment promotion, industrial development, setting uptechnology and joint ventures, contract manufacturing, setting up works and offices in Indiafor businessmen, appointing marketing agents/representatives, undertaking market surveys,training and skill development and other business related services (Anderson M. 1999) .Through SME Development Councils in 40 countries including China, Bulgaria, TurkeyMalaysia, Mauritius, and Zambia, SMEs can network with counterparts in other countries andlearn from them.GEARING UP FOR RECESSIONThe current scenario of economic crisis and recession in the global market will be affectingthe Indian manufacturing sector, especially in SME sector. Indian SMEs have to competewith China and other manufacturing countries whose governments are supporting SMEs fordeveloping their market. However, the Indian government and SME support agencies are notputting sufficient efforts to promote SMEs at a global level. SMEs are struggling to getadequate working capital and financial support from banks and financial institutions within acertain time frame despite policy initiatives in this area.Some SMEs are manufacturing high-quality and innovative products, which do not havecompetitors even from China and European countries. A large number of Indian SMEs arefunctioning in traditional ways by utilizing local methods and unskilled labor to makeproducts that are unacceptable even in the Indian market; leave alone abroad whore quality

283www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780expectations are higher (Parasuram V. 2004). In the era of globalization, SMEs need thelatest technology, innovative ideas, and assistance for export promotion, tirnely workingfinance, skilled labor and finance at lower rate of interest. It is only then that SMEs cancompete in the world market on an equal platform and succeed in the globalised world(Friedman, S. 2000), (Leander. M. 2002).HANDHOLDING IN STRATEGIC AREASSMEs need expert strategists and talent management consultants to help them find theirstrengths and overcome obstacles, especially during a global slowdown. Large companiesand SMEs alike have been hit by the global economics downturn. This has triggered arenewed focus on the role of SMEs and the impact they can have on overall economy. Duringthe last few months, The SME voice rose and reached the ears of the Prime Minister as morethan 35 SME associations collectively represented their cause. The dominant issue raised byone and all has been non availability of finance from banks. Many SMEs have gone belly-up,reporting negative profits after taxes (PATs) steadily. Specifically, the export focusedcompanies in textiles, gems and jewellery, leather, chemicals and auto-components havetaken a beating.The SME sector needs a new set of experts who can assist them in the following areas; Costmanagement: Realize the excess capacity, disperse the piled up inventories and cut costs bothfixed and variable. Total cost management is one of the known tools that can help at thisstage.INNOVATIONIdentify and explore new business ideas for new markets or existing customers. New Ideashave to be commercially evaluated and new business models and plans developed. The Ideais to connect into an innovation eco-system anywhere in the world and leverage externalresources or get into collaborative innovation. The global business climate offers and 'Openinnovation' system for the players to tap into.STANDARDIZATIONStandardize new practices that help to bring down costs and innovate. Adopt these as thefuture of 'next' practice; prevent slipping back into old ways (Gootee, B. H., 1998).LEARNING FROM EXPERTS AND PEERSFor any organisation, it is essential to have a crystal clear strategy to convert its vision intoresults. It has been observed that SMEs are generally more in ward focused and try to findtheir own solutions internally. They are usually reluctant to take on experts. However, theyare good at learning from peers, i.e., other SMEs. This has been our experience in Cll inimplementing the 145 clusters where more than 1000 SMEs have demonstrated the capabilityto learn from each other. External experts can bring in road map, but the change in practicesor mind-set happens faster when they are in a peer group. This is the success of the clusterapproach, which facilitates improvement across the member companies. Ten to twelvecompanies together form the best learning group (Anderson M. 1999).

284www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FACING COMPETITIONLiberalization opened up global frontiers and India's protected units suddenly had toconfront the onslaught of competition. Having experienced the delight with imported goodsand services, the customer demands the same from local manufacturers. SMEs are facingcompetition in terms of new designs, new usages, reduced cost, improved quality, productswith higher performance and variety, better services, all delivered simultaneously to enhancevalues to the customers (French, R. P., & Van Harrison N.P. (1992).TALENTTo be competitive, SMEs have to excel in product, process and organizational innovation,which call for new technology and processes to be rapidly incorporated to remain inbusiness. While technology and know-how can be quickly deployed, it's the hands capableof operating them critical area of concern for SMEs. They have to accept the changingparadigm and develop dynamic strategy building expertise and not just remain fixed withtraditional time - tested methodologies. Leaders with a wide and deep vision are the coreneed of any organisation with a will to be successful among its competitors.SMEs have been struggling in the past to retain high quality managers and technical peopledue to the lucrative opportunities with larger enterprises. SMEs need highly talentedmanagers who can lead them out of this bottleneck situation. It is only the people with greatvision and high degree of management aptitude that can provide valuable solutions to bemarket leaders and even compete in the same frame as the giants (Fanersher, J. 2003). Ananswer to these issues would be turn towards consultants having specific expertise so thatthey transfer the knowledge to the companies in a shorter time. But the reality is, in theabsence of any viable business from the SME sector in past for historical reasons, there arevery few consultants who would have the mindset to see the problem and find a meaningfulsolution from the SME level of operations. Consultants of visionary stature would be foundmore tilled towards larger companies and the SME sector generally banks on consultants forregulator and compliance related activities (Leander. M. 2002).NEED TO HANDHOLD SMEsSMEs in India add more than 40 per cent value in the manufacturing sector and provideemployment to over 30 million people. These figures are too important to be ignored andhighlight the need to enhance SME competencies. There is a need to enable the SME sectorto have access to enriching knowledge and methodologies to enable them to draw globalstrategies (Lee, C. 1999). To meet the affordability factors there are some very successfulmodels of a group of companies forming a cluster and gaining the expertise of consultantsamongst themselves with resultant sharing of cost. Some larger companies also, realizing thepotential of such efforts, have identified groups of their vendor companies and coaxed themto undergo competency enhancement and also provided outside support for this initiative.International organizations like United Nationals Industrial development Organisation(UNIDO) and United National Conference on Trade (UNCTAD) have an extensive setup inIndia to assist the SME sector in India as well. The Situation is no different for independentSMEs that are now seeking guidance from Industry associations or consulting services.Today, CII has a team of almost 20 experts who are dedicatedly working to upgrade SMEsunder the CII-LM Thapar Centre of Excellence, headquartered in Chandigarh (Leander. M.2002).

www.zenithresearch.org.in285ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780CONSULTANTS CAN HELPFor willing consultants to SME, there lies a deep but attainable challenge to swiftly analyzethe case studies of various organisation under similar and non-similar conditions and thus bycomparing the results achieved as per their experiences and knowledge gained, they canprovide a foolproof strategy(Friedman, S. 2000). Consultants have the edge to concentrate onacquiring deep knowledge of their individual sectors and share their experiences along withresults expected to be achieved, which further help SMEs to formulate a practical work planfor future growth and tackling of market challenges (French, R. P., & Van Harrison N.P.(1992). Consultants can be regarded to be specialists in terms of designing and implementingof strategies under various conditions for SMEs and can provide their expertise towards theindustry (Reymonds, A. 1997).CONCLUSIONThere is a great need to identify and formulate strategy for SMEs. Resource struck SMEs notonly struggle to transit into larger firms during hay days but also struggle to survive duringtough days and do not find it feasible to employ the liability of an expensive, high qualitytalented management pool along with them (Friedman, S. 2000). At the same time, highqualityand knowledgeable services do provide calculated benefits towards these SMEs whocan employ them for leading them through towards achieving of their objectives. Thus thegap between objectives and practical implementation of strategy within SMEs can be diminishedto minimal (Anderson M. 1999). The tussle between industry needs of talentedstrategists or advisors on one hand and scarcity of resources on the other has beencomprehensively addressed in Indian SME sector through services of CII-LM Thapar Centrefor Competitiveness for SMEs. The Centre has been instrumental in providing cost-effectiveexpert counseling services. It conducts national seminars and open and in house trainingsessions for the industry, thus serving as a one-stop shop to help SMEs.REFERENCESAnderson M. (1999). Why diversity professionals should care about SMEs. Journal ofHRM, Vol:16, issue:4, pp:67-71Fanersher, J. (2003). Strategies Enhanced by corporate, The Journal of Management,Vol:34, issue:8, pp:30-33Femin. J (2003), HR tools for SMEs, Journal of Management, Vol:11,issue:3,pp:41-42French, R. & Van Harrison N.P. (1992). The mechanisms of HRM, Paper presented atThe International Conference on HR, Western University, USA,Friedman, S. (2000). Work place Arrangement Strategy, Journal of personnelmanagement, vol:12, issue:3, pp: 12-15Gootee, B. H., (1998). Flexible work arrangements: Managing the work-familyboundary, Business Review, dt:12/5/2000,

www.zenithresearch.org.in286ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Leander. M. (2002), In perspective: Use of work/life benefits on the rise. IOMA’sReport on Managing Benefits Plans, 02, 8, 7-9.Kanter, R. M. (1977). Strategies and Work : A critical review and agenda for researchand policy. New York: Russell Sage Foundation.Lambert, R. (2000). Added benefits: The link between work-life benefits andorganizational performance. Academy of Management Journal, 43, 5, 801-815.Landaulet, V. (1997, July). Bottom-line benefits of SMEs, HR FOCUS, 74, 7, 3-4.Lee, C. (1999). Fighting back against stress in the workplace. Minneapolis, MN:Chiron International Publishing.Mack, D. R. (2002). Balancing Strategies and practices. Time News, November 5,2009,Meitner, M. P. (1997). The truth about burnout: How organizations cause personalrelationship and what to do about it. San Francisco: Jossey-Bass, Inc.McCartney, C. (2002). Work/life balance: The role of the manager. Oxford Universitypress, pp:112-114Montague, J. (2001). Redesigned work improves business, life balance. ControlEngineering, 48, 3, 14-15. The Online EAP Directory, http://www.eap-sap.com/eap/Parasuram, V (2004). Toward reducing some critical gaps in SME workstationsHuman Resource Management Review, 12, 3, 299-312.Parus, B. (2000). Measuring the ROI of HR strategies, Journal of Management, vol:43, issue: 9, pp: 50-54.Parus, B. (2002). Recognition: A strategic tool for retaining talent. Work span, 45, 11,14-17.Raphael, T. (2001). The drive to downshifting. Workforce, 80, 10, 23.Reymonds, A. (1997). It’s not enough to offer benefits —you need to promote them.Benefits Quarterly, 15, 2, 13-17.

287www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780SYNERGISM BETWEEN ONLINE BRANDING AND PROMOTION OFTOURISM DESTINATION: REVIEW IN THE CONTEXT OFDESTINATION MANAGEMENT ORGANIZATIONS (DMOs)ABSTRACTMR. VIVEK SHARMA*; MR. JEET DOGRA***Co-ordinator & Assistant Professor, Department of Lifelong Learning,University of Jammu, J&K – 180006.**UGC NET & Junior Research Fellow (JRF), Ph.D. Research Scholar,School of Hospitality and Tourism Management (SHTM),University of Jammu, J&K -180006.The present study is based on exploring the link between online branding and tourismdestination‟s promotion. From the last two decades, the online media(s) and internet toolscontributing enormously in promotion of products as well as services. With the advent ofglobalization, the service sector also upgraded and the world-class customers are emerged.Henceforth, the promotion of tourism destination by using the online media(s) has drawnextensive attention with ample amount of opportunities. The strategic role played by internetand online technologies in the promotion of tourism destinations across the globe has beencatching the attention of researchers to fully explore this segment and utilizing it to earn thedesired results. The overall process of online branding contributes in the worldwidepromotion of tourism destinations‟ and ultimately it helps to secure the sustainablecompetitive advantage. There are several case studies of the tourism destinations whichpreferred and utilized the latest online technologies as their main conduit to promote andnourish their destinations to reach their potential markets and able to promote it and alsocreating the wider scope for future online branding strategies. The findings of the studysuggesting also considered the online branding strategies along with traditional methods ofdestination branding.KEYWORDS: Destination branding, Online branding, Online branding Strategies, Tourismdestination promotion.___________________________________________________________________________INTRODUCTIONTourism, being an international industry, emerged as the biggest job provider across theglobe. In the international arena, it boasts a greater array of heterogeneous stakeholders thanmany other industries. Due to huge dividends in tourism sector, there have been many newentrants among the players on the tourism stage, shifts in market share and balance of power,changes in political perceptions of tourism and a growing recognition of the importance oftourism to an ever-increasing number of national and regional economies.In the present era of globalization and digital technologies, the role of brands as wellas branding are already attracting considerable attention. With the advent of World WideWeb (www) in 1993, the internet has revolutionized the businesses and commercialorganizations and new dimensions have begun in the online markets across the globe. Internetshown the potential of grown explosively beyond the national boundaries and it proved to be

288www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780the vital tool in terms of online branding of products and also helpful in generating thecuriosity amongst the present and potential customers. Internet also one of the inexpensivemedium as compared to the traditional ones and it also facilitates the two-waycommunication between providers and consumers.Technological progress and tourism have been going hand in hand for years (Poon,1993; Sheldon, 1997). The use of internet is mounting and people continue turning to it formore information about tourism destinations. The one of the significant definition of tourismdestinations by Buhalis (2000, p. 97), he defined the tourism destinations as geographicalareas and can be interpreted as amalgams of tourism products and services. They offer an“integrated experience to consumers”. A tourism destination is defined by the Word TourismOrganization (WTO) as "a physical space in which the visitor spends at least one night. Itincludes tourism products such as support services and attractions, and tourism resourceswithin one day's return travel time" (WTO 2009, Handbook on Tourism destinationBranding).The area of tourism destination branding already attracted lot of attention and lot ofresearchers given the definitions. Destination branding can be defined as the developmentand active management of destination brands. The development of brand names, logos orsymbols may push a destination‟s competitive edge, although the destination managementneeds to plan carefully because branding decision are of a strategic and long-term nature(Caldwell & Freire, 2004; Okoroafo, 1989).Although branding is not a new concept, the study of destination branding is arelatively recent addition to the field of tourism research (Ricardo, 2009). The notion ofbranding has only recently started to expand into the tourism industry and apparently becamea topic of examination in the late 1990s (Pike, 2002; Tasci & Kozak, 2006). According toKerr (2006, p. 277), a destination brand is defined as a “…name, symbol, logo, word or othergraphic that both identifies and differentiates the destination; furthermore it conveys thepromise of a memorable travel experience that is uniquely associated with the destination; italso serves to consolidate and reinforce the recollection of pleasurable memories ofdestination experience”. Another most recognized definition of destination branding ispresented by Cai (2002, p. 722), who claims destination branding is “…selecting a consistentelement mix to identity and distinguish it through positive image building; unlike typicalgoods and services, the name of a destination brand is relatively fixed by the actualgeographic name of the place”. Over the years, further definitions of destination brandingwere developed by a number of authors (Blain, Levy, & Ritchie, 2005; Gnoth, 2008; Morganet al., 2004), leading to a greater complexity in the literature about destination branding. Inthe tourism destination context, six benefits of branding were identified by Clarke (2000): (1)tourism is typically a high involvement activity, branding helps to reduce the choice; (2)branding helps in reducing the impact of intangibility; (3) branding conveys consistenceacross multiple outlets and through time; (4) branding can reduce the risk factors attached todecision making about a holiday; (5) branding facilitates precise segmentation; (6) brandinghelps to provide a focus for the integration of producer efforts, helping people to worktowards the same outcome. Tasks of DMOs cover numerous management and marketingactivities: DMOs attempt to enhance long-term prosperity of locals and maximize profit oflocal businesses. In addition, destination managers should maximize positive multipliereffects and optimize tourism impacts. The latter includes the creation of sustainable balancebetween economic profit and socio-cultural and environmental costs. Buhalis (2000, p. 100)

289www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780defines destination marketing tasks which goes beyond traditional business marketingapproach. Destination promotion has to operate as a mechanism to facilitate regionaldevelopment objectives and to rationalize the provision of tourism; ensures equitable returnson-resources-utilizedfor the production, delivery of tourism services; needs to care for theregeneration of resources used in the destination. Therefore, destination promotion is astrategic mechanism and not only a sales tool. As such, it requires a certain way of strategicthinking with a particular focus on local stakeholders and destination resources.It is obvious that online communication is one of the major pillars of destinationpromotion and includes all communication channels, instruments and strategies used byDMOs to transfer brand issues. On a primary level online communication is driven by localgovernments to different stakeholders, secondarily it includes tourism promotion to businessand leisure groups and on a tertiary level word of mouth can have strong impact on thedestination brand (Trueman et al., 2004). Brand promises have to be communicated tovarious groups of stakeholders in the tourism destination. These co-producers need to beaware that they play a significant role in creating tourist experiences. Without awareness, adestination brand identity can hardly be created (Burmann & Zeplin, 2006). E-communication of destination brands can be interpreted as a process that starts with anactivity by a sender who usually has actively developed a brand. Within the communicationprocess another individual or group of individual receives the brand message. The brand itselfis message and medium at one time (Adjouri & Büttner, 2008, p. 70). The sender creates thebrand whilst communicating it: in a destination context brand communication can play animportant role in satisfying stakeholder needs. The brand communicator can create a strongcorporate attitude by convincing local stakeholders of the destination‟s value and uniqueresources. Brand communication has a strong impact on the brand itself and thus, on thebrand identity. Online communication patterns (e.g., modes, sources, channels) can bemanifold and it can be assumed that we find various communication characteristics indifferent tourism destinations.RATIONALE OF THE STUDYThe present age is the age of technological mediums. The internet already became aneffective medium for both sales as well for marketing purposes. According to ComputerIndustry Almanac report (2009), there are more than 1.5 billion active internet users in theworld and it still increasing with rapid pace. Hence, the trend of online branding andmarketing also pick up the pace and now it becomes mandatory for the service providersespecially in the tourism sector to show their presence on internet.The region of Jammu, India received more than 8 million pilgrim tourists for bothShri Mata Vaishno Devi Ji Shrine (SMVDJS) and for Shri Amarnath Ji Yatra (SAJY). Afterthe pilgrimage, these huge numbers also move towards the other alternative options fortourism activities. Majority of the pilgrims as well as the tourists visited Jammu regionalready pre-planned their itinerary by themselves or customized from their travel advisors.Therefore, the need for providing information to them means to earn the economically futuredividends. The social interaction and social development also depends on these tourists.Now-a-days, the trends for searching on internet also very popular and well utilizes by thepotential tourists. Therefore, to cater all such needs and to explore more the preferences oftourists and to analyze the present policies of Destination Management Organizations

290www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780(DMOs) providing services for Jammu region, this study helps to guided towards the morefruitful planning so that desire results could have been achieved.LITERATURE REVIEWThe majority of the literature on e-branding and tourism promotion focuses on theusage of new age technologies like virtual touring and decision making process regarding thechoice of destination. The persual of the literature brings out the mind set of the nextmillennium travelers who are time constraint and most of the time relies on the virtual searchfor making their vacation decisions.Although the branding literature commenced during the 1940s, the first publicationsrelated to destination branding did not emerge until half a century later. A review of 74destination branding publications by 102 authors from the first 10 years of destinationbranding literature (1998–2007) found at least nine potential research gaps warrantingattention by researchers. In particular, there has been a lack of research examining the extentto which brand positioning campaigns have been successful in enhancing brand equity in themanner intended in the brand identity. Steven Pike (2009) in his study reports the results ofan investigation of brand equity tracking for a competitive set of destinations in Queensland,Australia between 2003 and 2007. A hierarchy of consumer-based brand equity (CBBE)provided an effective means to monitor destination brand positions over time. A keyimplication of the results was the finding that there was no change in brand positions for anyof the five destinations over the four year period. This leads to the proposition that destinationposition change within a competitive set will only occur slowly over a long period of time.The tabulation of 74 destination branding case studies, research papers, conceptual papersand web content analyses provides students and researchers with a useful resource on thecurrent state of the field. Gyehee Lee, Liping A. Cai & Joseph T. O‟Leary (2005) explore therole of internet in attracting visitors and facilitating their trip planning and reservations. Thewebsite of a destination has become a crucial branding channel. However, electronicbranding has yet to be adequately conceptualized, particularly in the context of destinationmarketing. The current study aims to fill this gap through the analysis of the 50 states‟ officialtourism websites. Specifically, the researchers attempt to delineate the unique sellingpropositions (USPs) and positioning strategies of destination organizations at the state levelthrough a content analysis of slogans, graphic projections, verbal expressions, and otherexplicit or implied messages. The state tourism slogans are categorized and analyzed in termsof USP building and market targeting. Among other findings, five types of slogans emerge:(1) buy us because we are good; (2) common attributebased; (3) unique attribute-focused; (4)exclusive appeal; and (5) average Joe. Results also show that almost all the states emphasizenature and culture/heritage, and that many of the states‟ official websites do not maximizetheir utility as marketing tools due to lack of consistency among the website elements.Govers et al., (2007) in their study discuss the utilization of enabling internet andcomputerized content analysis technologies to measure destination image from aphenomenographic post-positivist perspective. In an online survey, respondents were asked todescribe their image of one of seven case study destinations that they had never visitedbefore, in a narrative format. The large amount of qualitative data was content analyzed usingartificial neural network software. The results produce a vivid three-dimensional picture ofthe differences and commonalities among the images of selected destinations. It is concludedthat an interactive narrative approach presents an alternative measurement technique that cancontribute significantly to future image research. Bing Pan & Xiang (Robert) Li (2011) in

291www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780their study examine the linguistic structure of destination image using China as an example.The phrases the tourists use to describe China‟s image follow the power-law distribution andexhibit the long tail pattern. The destination image is dominated by a few very popularphrases, but contains a large amount of phrases in small niches. Analysis on Google keywordsearch volumes shows that those phrases are likely to be the keywords tourists use whensearching destination information online. In addition, the tourists who use those niche phrasesare more likely to travel to China. Thus, Destination Marketing Organizations shouldpromote the niche images as well as the commonly held images in their online marketingeffort. Jeou-Shyan Horng & Chen-Tsang (Simon) Tsai (2010) discuss the content ofgovernment tourism websites as a very important source for promoting a tourist destination‟sexciting cuisine and food culture. These websites help to shape a country‟s, region‟s orlocality‟s culinarycultural image; they create a virtual experience for culinary tourists. Thisstudy explores the contents of the cuisine and gastronomy websites of Hong Kong, Japan,Korea, Singapore, Taiwan and Thailand, analyzing the techniques used to introduce andpromote these East Asian tourist destinations‟ cuisine and food culture. Specifically, theresearchers examined the capacity of government websites to introduce and advertisetraditional and local foods, restaurants, gastronomic tours, recipes and culinary cultures(including table manners and other dining customs). They also looked more generally atculinary tourism marketing strategies, including the use of restaurant guides andcertifications.HYPOTHESES FRAMEWORKFrom the adequate review of literature, the online brand development strategies givenby Rowley (2004) are considered to achieve the excellence in online branding. Thesestrategies includes setting the context for the brand; deciding on brand objectives andmessage; developing a brand specification; developing a brand design; creating the Web siteand other communications using the brand; launching and promoting the brand; building thebrand experience and finally reviewing, evolving and protecting the brand.H1: Online brand building strategies should be given more priority over other traditionalmethods.H2: Developing a brand specification is the most important strategy for online branding.H3: The present online practices by Destination Management Organizations (DMOs) aresatisfactory and up to the mark.RESEARCH METHODOLOGYThe aim of any research is to get a deep understanding of the area by use of variousdata collection techniques and it has been found that there are so many issues attached to thecase study research like bias and generalization and it has suggested to the various sources ofevidence which are really vital for reducing the bias in research (Yin, 1994). The main area ofthis study was to analyze the contribution of online technology and online mediums towardsthe promotion of tourism destination.A self-administered questionnaire is designed to measure the constructs of the study isdeveloped on the basis of the reviewed literature. A convenient sampling is used and data iscollected with the help of the questionnaire. A questionnaire survey was conducted at the

292www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780tourists visited Shri Mata Vaishno Devi Shrine (SMVDS) and Shri Amaranth Ji Shrine(SAJS) while the online medium of e-mail also utilized for collecting the data. 400respondents were selected randomly (100 from SMVDS; 100 from SAJS and 200 from e-mail procedure). The questionnaire with Likert scale responses was developed to measure thestudy constructs. Subjects were asked to rate their agreement with each item on a five-pointLikert scale ranging from 1 = disagree to 5 = agree. To analyze the data, SPSS 16.0 is used.RESEARCH FINDINGSThe demographic profile of the respondents is presented in Table 1. It was found thatthe gender consists of 64.03% of Male and 35.97% of Female. Majority of the respondentsbelonged to 18-27 age group while 67+ age group only consist of 2.33%. The major numberof respondents i.e. 51.53% belonged from outside the Jammu region while 9.96% belonged tothe foreign countries and 38.51% respondents belonged to Jammu region. The educationallevel of the respondents included the 37.51% belonged to Higher Secondary Level while therespondents studied or pursuing their College is 42.6% and only 19.65% belonged toUniversity Level Educational group. The majority of the respondents i.e. 27.29% werebelonged to the 20,000-39,999 income group while 32.9%, 17.9, 14.54 and 8.18 werebelonged to the income groups of 19,999 or less, 40,000-59,999; 60,000-79,000; 80,000 orabove respectively. The major focus area of the present research was on internet and onlinebased activities and mediums. Henceforth, the skill and familiarity of the respondents withthe internet or online hold appropriate relevance. In this study, the majority of therespondents i.e. 32.9% had good knowledge of internet while only 8.18% had no knowledge.The other figures are 14.54% for poor knowledge, 17.59% for average and 27.29% belongedto the excellent field of knowledge about the internet usage.TABLE 1: DEMOGRAPHIC PROFILE OF THE RESPONDENTSVariables Frequency (in %)GenderMale 64.03Female 35.97Age (in years)18-27 35.4528-37 24.2338-47 22.4448-57 10.9658-67 4.5967+ 2.33

293www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780States of OriginJammu 38.51Other Indian States 51.53Outside India 9.96Education levelsSecondary & Higher Secondary school 37.75College 42.6University 19.65Total household income (in INR)19,999 or less 32.920,000-39,999 27.2940,000-59,999 17.0960,000-79,999 14.5480,000 or above 8.18Internet Usage SkillsNo Knowledge 8.18Poor 14.54Average 17.09Good 32.9Excellent 27.29

294www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 2: ANALYSIS OF STATEMENTS S1 AND S2Online Promotional Strategies (OPS)StronglyDisagreeDisagree Average AgreeStronglyAgree(In Percentages)S1S2Online brand building strategiesshould be given more priority overother traditional methods forbrandingThe present online practicesimplemented by DestinationManagement Organizations(DMOs) are satisfactory and up tothe mark2 8.75 30.5 47.5 11.255.75 24 49.5 16.75 4Table 2 represented the response rate (in percentages) of the respondents for the twostatements S1 and S2 respectively. For statement S1, the 89.25% respondents agreed that theonline branding strategies should be given more priority over the other traditional ways andmethods of branding the destination. While, for statement S2, the 70.25% respondents weresatisfied from the present online branding practices by the Destination ManagementOrganizations (DMOs) in Jammu region. For statement S1, only 10.75% respondents felt thatthe traditional branding methods are given more priority over online methods which can betreated as negligible while for statement S2, the 29.75% were not satisfied from the presentonline branding practices. This figure cannot be negligible and the DMOs need to furtherenhance their online branding practices by adopting the global level online brandingstrategies which would be best suited to this region of the world.Hypothesis H1 and H3 are fully proved by analyzing the response rate of therespondents for the above mentioned statements S1 and S2.TABLE 3: MEAN, STANDARD DEVIATION AND RANKING OF ONLINEPROMOTIONAL STRATEGIESOnline Promotional Strategies (OPS) Mean S. D. RankOPS1 Reviewing, evolving and protecting the brand 4.29 0.69 1OPS2 Building the brand experience 4.14 0.83 2OPS3 Setting the context for the brand 3.89 0.86 3OPS4 Developing a brand design 3.42 0.92 4OPS5 Launching and promoting the brand 3.68 0.93 5

295www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780OPS6 Developing a brand specification 3.48 0.95 6OPS7 Deciding on brand objectives and message 3.74 0.99 7OPS8Creating the Web site and other communications usingthe brand3.24 1 8Table 3 represented the rank-wise mean and standard deviation of online promotionalstrategies adopted and implemented by the Destination Management Organizations (DMOs).According to the respondents, these strategies hold vital position in the promotion of anytourism destination (Refer Table 2). The above mentioned eight OPS, the reviewing, evolvingand protecting the brand hold the most importance status and hence got Rank 1. Then,building the brand experience comes having Rank 2 and so on till the strategy of creatingwebsite and other communications using the brand which hold Rank 8. The respondentshaving more than average knowledge and skill of internet were 77.28% (Refer Table 1).Hence, the analysis of OPS hold relevance and the results suggesting the new directions forDMOs to further improve their efforts and policies for destination online branding of theJammu region.Hypothesis H2 i.e. developing a brand specification (OPS6) is the most importantstrategy has 6 th Rank and hence Hypothesis H2 is rejected.DISCUSSION AND CONCLUSIONA brand can be defined as “a name, term, sign, symbol, or design, or combination ofthem which is intended to identify the goods and services of one seller or group of sellers andto differentiate them from those of competitors” (Kotler, 1991). The present global scenarioin the tourism industry is competitive in nature. Due to this, the tourism destinationsworldwide make several efforts toward projecting their destinations with the latest advent ofonline technologies. In such case, the online branding plays major role and also provides thewider scope for marketing the tourism destinations inexpensively with broader reach.Tourism destination branding has been viewed as the most powerful tool for destinationmarketers.In an international arena, several nations applied the branding concept to promotetheir destination worldwide. The case of brand identity building of the Cruise Baltic networkmember destinations chronicles how the paradigm of competition which traditionally causedintense rivalry amongst individual destinations, in the Cruise Baltic network context,recently, shifted an agreement to adopt the cooperation paradigm. Furthermore, it follows atwo-pronged analysis, first, to identify network members‟ perceived challenges caused byonline branding implementation, both on the individual - and collective level; secondly, todeconstruct narratives-in-use, following Boje‟s guidelines as research method. Study findingsyield accounts of network members that shed light on options available to decision makers todeal with the challenges arising as a consequence of a joint brand identity in Cruise Baltic‟sonline presence; also enable them to „re-position‟ the Cruise Baltic web site story as a multiauthorednarrative (Lemmetyinen, 2008). In the European Alps, where we find manycommunity-based tourism destinations, other stakeholder groups, such as locals or small nontourismbusinesses, are important for new tourism development initiatives. But in destination

296www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780marketing or branding they seem to play only a minor role in the eyes of the DMO and TTBmanagers. From a sustainable development perspective, destinations must carefully managetheir relationships to corporate stakeholders if they want to control the (brand) identity oftheir place (Clifford, 2002). Tourism research should focus on the analysis of stakeholderpower in tourism destinations: it remains unclear whether power structures in Alpine touristdestinations are based on financial, on political or on social power. Further studies could havea closer look at destination stakeholder relationships and behavior (e.g., based on stakeholdera matrix) (Polonsky 1996).To summarize, online branding may be characterized as a domain that is currentlyvery much practitioner-led and where academic research has been comparatively slow tofollow, although high levels of academic interest in the topic are now beginning tomaterialize. The technological revolution experienced through the development of theInternet has changed dramatically the market conditions for tourism online brandingstrategies. The branding process is a long-term systematic involvement but online brandingproved to be the strongest medium and, therefore, a sustained effort will take the place furtheralong the learning curve. The present theoretical framework for successful place marketingdiscussed above emphasizes the potential through online branding. The framework presents achallenge to places to move on to a new systematic and more efficient phase in their placemarketing and also highlights the potential of online branding. Online branding will be one ofthe new techniques in the promotion of tourism destination and will be the most rapidlyexpanding area of place marketing during the next two decades. The best practices indestination promotion and branding have not yet appeared, and only a place's imaginationsets the limits as to how innovative destination promotion programmes can be created.RESEARCH LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCHThe present research was also subject to several limitations. First, the OnlinePromotional Strategies (OPS) chosen as independent variables could be a limitation becauseother strategies, which were not used in this study, could impact tourists‟ perception and thesatisfaction. Second, the study did not obtain longitudinal data (data collected at differentpoints in time) but relied on a cross sectional data (data collected at one point in time). Thestudy provided a general picture and analyzed tourists‟ level of satisfaction variations bydemographic and online behavior characteristics related to the online branding strategies.However, the study did not mention the relationship between tourist satisfaction and intentionto revisit a destination because of the effectiveness of these online branding strategiesadopted and implemented by Jammu‟s Destination Management Organizations. Futureresearch should investigate on these relevant areas of research because repeat visitation to adestination is an important issue for tourism marketers and researchers.Nevertheless, it is hoped that such limitations could suggest and encourage additionaldirections and guidelines for future study.RESEARCH IMPLICATIONSAfter analyzes the results of this study, several policies framework andrecommendations can be made to increase the effectiveness of Online Branding Strategiesadopted and implemented by Destination Management Organizations of Jammu region. Thisfinding can be useful to the planners and marketers of Jammu tourism in formulatingstrategies to maintain or enhance their competitiveness. In other words, they should focus

297www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780more on maintaining or improving factors that contribute to the online branding of Jammutourism.To conclude, in order to create effective online branding and marketing strategies forJammu region‟s tourism products and services, a better understanding of dynamism oftourists is necessary and need immediate attention for gaining the competitive advantage.REFERENCESAdjouri, N., and Büttner, T. (2008) Marken auf Reisen - Erfolgsstrategien für Marken imTourismus. Wiesbaden: Gabler.Bing, Pan. & Xiang, (Robert) Li. (2011) „The Long Tail of Destination Image and OnlineMarketing‟ Annals of Tourism Research. 38 (1) pp. 132–152.Blain, C., Levy, S. E., & Ritchie, J. R. B. (2005) „Destination Branding: Insights andPractices from Destination Management Organizations‟ Journal of Travel Research. 43 (4),pp. 328-338.Buhalis, D. (2000) „Marketing the competitive destination of the future‟ TourismManagement. 21 (1), pp. 97-116.Burmann, C. & Zeplin, S. (2006) Innengerichtetes Markenmanagement. Hamburg: LitVerlag.Cai, L. A. (2002) „Cooperative branding for rural destinations‟ Annals of Tourism Research.29 (3), pp. 720-742.Caldwell, N. & Freire, J. R. (2004) „The differences between branding a country, a regionand a city – applying the brand box model‟ Brand Management. 12 (1), pp. 50-61.Clarke, J. (2000) „Tourism brands – an exploratory study of the brands box model‟ Journal ofVacation Marketing. 6 (4), pp. 329-345.Clifford, H. (2002) Downhill Slide: Why the corporate ski industry is bad for skiing, skitowns and the environment. San Francisco: Sierra Club Books.Computer Industry Almanac (2009) Worldwide Internet Users Stat in 2008. ComputerIndustry Almanac, Arlington Heights, IL. [accessed on 16 April 2011].Gnoth, J. (2008) „Branding Auckland‟ NZ Marketing Magazine. 27 (11), pp. 15.Govers, Robert., Frank, M. Go. & Kumar, Kuldeep. (2007) „Virtual Destination Image: ANew Measurement Approach‟ Annals of Tourism Research. 34 (4), pp. 977–997.Gyehee, Lee., Liping, A. Cai. & Joseph, T. O‟Leary. (2005) „www.Branding.States.US:Ananalysis of brand-building elements in the US state tourism websites‟ Journal of TourismManagement. 27, pp. 815–828.

298www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Jeou-Shyan, Horng. & Chen-Tsang, (Simon) Tsai. (2010) „Culinary tourism strategicdevelopment: an Asia-Pacific perspective‟http://onlinelibrary.wiley.com/doi/10.1002/jtr.834/full [accessed on 23 February 2011].Kaplanidou, K. & Vogt, K. (2003) Destination Branding: Concept and Measurement.Michigan State University.Kerr, G. (2006) „From destination brand to local brand‟ Brand Management. 13 (4/5), pp.276-283.Kotler, P. & Armstrong, G. (2001) Principles of marketing. Upper Saddle River. NJ: PrenticeHall.Kotler, P. (1991) Marketing Management. (7th ed.). New Delhi: Prentice-Hall.Laksiri, W. M. R. & Falkenburg, A. (2009) Marketing Sri Lanka as an International TouristDestination. Saarbrucken: VDM Verlag.Lemmetyinen, Arja. (2008) The Cruise Baltic Web Site Story A network of destinationsbranding online - what makes it challenging?http://www.google.co.in/url?sa=t&source=web&cd=1&ved=0CBkQFjAA&url=http%3A%2F%2Fwww.impgroup.org%2Fuploads%2Fpapers%2F7211.pdf&ei=Q-1kTa_0PMTtrQfxj-STBw&usg=AFQjCNHh1iGVm6AtP6n38InEo00S_VpTAg [accessed on 23 March 2011].Morgan, N. J., Pritchard, A., & Piggott, R. (2004) „Destination branding and the role of thestakeholders: The case of New Zealand‟ Journal of Vacation Marketing. 9 (3), pp. 285.Okoroafo, S. (1989) Branding in tourism. In S. F. Witt, & L. Moutinho (Eds.), Marketing andManagement Handbook (pp. 23-26). London: Prentice Hall.Pike, S. (2002) „Destination image analysis – a review of 142 papers from 1973 to 2000‟Tourism Management. 23 (5), pp. 541-549.Pike, Steven. (2009) „Destination brand positions of a competitive set of near-homedestinations‟ Journal of Tourism Management. 30, pp. 857–866.Polonsky, M. J. (1996) „Stakeholder management and the stakeholder matrix: Potentialstrategic marketing tools‟ Journal of Market-Focused Management. 1 (3), pp. 209-229.Poon, A. (1993) Tourism, technology and competitive strategies. Oxford:CAB International.Ricardo, F. J. O. (2009) „Local People as a critical dimension for place brands‟ Journal ofBrand Management. 16 (7), pp. 420-438.Rowley, Jennifer. (2004) „Online branding‟ Online Information Review. 28 (2), pp. 131–138.Sheldon, P. (1997) Tourism information technologies. Oxford: CAB.Tasci, A. D. A., & Kozak, M. (2006) „Destination brands vs. destination image – do we knowwhat we mean?‟ Journal of Vacation Marketing. 12 (4), pp. 299-317.

299www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Trueman, M., Kemm, M., & Giroud, A. (2004). „Can a city communicate? Bradford as acorporate brand‟ Corporate Communication: An International Journal. 9 (4), pp. 317-330.WTO (2009) Handbook on Tourism destination Branding.www.thefreelibrary.com/Destination+branding%3A+the+comparative+case+study+of+Guam+and+Vietnam.-a0246450128 [accessed on 21 March 2011].Yin, R. (1994) Case Study Research: Design and Methods. (2 ndPublications, Inc.Ed.). California Sage

300www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTCULTURAL DIMENSIONS & IMPACT ONPERFORMANCE MANAGEMENTANURADHA REDDY**Research Scholar, Kakatiya University,Warangal, AP, India.Culture plays a vital role in any organization especially in multinational and internationalcompanies which has expat employees. It is important to learn the importance and impact ofculture on performance management in organizations. Thus the present study aims atanalyzing the impact of culture and cultural dimensions on performance management in UAEorganizations. Objectives of the study include 1) study how cultural dimensions impactperformance 2) study various cultural dimensions and performance management issues inorganizations 3) analyze the cultural challenges for performance management issues in UAEand finally 4) put forward few recommendation to overcome the impact of culturaldimensions over performance management in UAE. The current research study is completelybased on the review of literature on aspects such as culture and cultural dimensions,performance management and finally impact of cultural dimensions on performancemanagement. Analysis is based on the review of literature through referring research articlesand reference books related to the chosen topic. Analysis, conclusion and recommendationsare drawn out based on the review and findings of literature review.After reviewing the literature and referring the various aspects of performance managementand impact of cultural dimensions it is identified that in UAE most of the organizations showhigh power distance where in subordinates are treated in a low level and there is a large gapbetween senior and low level management, high level of inequality prevails, seniormanagement separate themselves from the rest, there is low individualism and highuncertainty avoidance that focuses on strict rules, laws, policies, regulations that needs to beimplemented, women are limited to rights and Islamic religion could be the major reason forthis and finally there is a large score for long term orientation where in organizations andindividuals as well give more importance to values, beliefs and social obligations.KEYWORDS: Culture, cultural dimensions, organization culture, performance management.___________________________________________________________________________INTRODUCTIONIn every culture in the world the facts like authority, bureaucracy, creativity andaccountability etc are dealt in different ways. The internal and external environments of theorganization influence in managing human resources in organizations require understandingof the influence of both internal and external environments of organization. In the internalenvironment it is the organization culture is the basis. In the external environment, ownershipis one of the major issues. For the multinational companies with base in overseas countriesbut having presence in UAE, the culture of the country of shareholders will be linked to theculture of UAE as the top management and the corporate polices of the owner country will

301www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780have to linked to branch office country. In similar way there will be difference in nature ofindustry scenario, available resources and market characteristics in country of origin and thedifferent branches of the corporate entity. The social cultural environment which includespower, paternalism and distance also impact the human resources policies. It is also fact thatinternationalization will lead to common culture globally which will make the lives of themanagers much simpler. The globalization integrates the world’s economies and providesnumber of ways to conduct business activities as technology narrows borders (Pleissisr,2009).Management deals with reality that is man-made. People build organizations according totheir values, and societies are composed of institutions and organizations that reflect thedominant values within their culture (Hofstede, 1984). Management is a coordinated effortsof different people (could be senior, middle level or other knowledge workers) on the waywhich uses available economical and technical resources so as to obtain the desired results oroutcomes. Further no management activity could be culture free (Hofstede, 1984).It is the people (management) who are critical for the organization and who make the criticaldecisions and stand by or the success and failure of the company. Effectiveness of theorganization lies in the effective management, development, motivation, involvement, use ofavailable resources, contribution and finally the management willingness to put themselvesinto the organizational strategies and objectives (Patterson et. al, 1997).Performance management is defined as creating the context for - and the measures ofperformance.Performance is defined as the potential for future successful implementation ofactions in order to reach the objectives and targets (Lebas, 1995). Next talking aboutperformance it could be related to efficiency, effectiveness, resistance, outcomes and so on.Performance management is generally based on the past achievements further focusing on thefuture and management creating and shaping the future of the organization. Generally in anyorganization performance management is based on six main steps as depicted in the picturewhich clearly states the major responsibilities that needs to be taken up by the management toperform their best (Lebas, 1995).Considering cultural especially in the international context, it has become a hot topic as hereglobalization, team working and diversity plays a major role in organizations. Internationalorganizations should identify the developing cultural challenges and develop practices so asto meet the global competitiveness, flexibility, and learning capabilities so as to maintain abalance where in international organizations have to build up cultural sensitivity and thecapability to manage performance (Higgs, 1996). It is important for organizations to identifyand understand the framework for analyzing the cultural differences.Stating the impact of culture and cultural dimensions on performance management Jaegar &Kanungo (1990) states that management attitude and climate of belief is maintained andaffected by power distance (in other words status quo), low uncertainty avoidance (distrust ineco system), high individualism (more reliance on bureaucratic practices) which leads tonegative impact on performance management. Many cultural constraints become obstaclesfor effective implementation of performance management. Here building cultural values andbeliefs are important as they create potential and facilitate smooth process of performancemanagement.

302www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780People are the most valuable resource of an organization, and that the management of peoplemakes a difference to company performance (Patterson, West, Lawthom and Nickell, 1997).Many studies have been brought up to study the effectiveness of people management andbusiness performance, but very few studies were conducted on the cultural impact onperformance management. Every nation has a varying effect of cultural dimensions inorganizations and the employees working over there. It is important to consider the culturaldimensions before creating strategies and objectives in organizations as this helps hemanagement in effective performance (Patterson et. al., 1997).Thus this research tries to focus on this issue and studies the impact of culture and culturaldimensions on performance management especially in UAE organizations. This researchintends to bring about awareness in the readers and to make them learn the importance offocusing on cultural dimensionsThis research study is completely based on the review of literature that focuses on analysis ofvarious researches conducted on performance management and impact of culture and culturaldimension on managing performance in organizations. The following sections discusses andthe views, analysis and results of various researches.CULTURE AND CULTURAL DIMENSIONSZeynep Aycan, Rabindra Kanungo, Manuel Mendonca, Kaicheng Yu, Jurgen Deller, GunterStahl and Anwar Kurshid (2000) defines culture as common patterns of beliefs, assumptions,values and norms of behavior of human groups (represented by Societies, institutions andorganizations”As cited by Lu, Lung-Tan,Lee & Yuan-Ho (2005) culture is defined as "the collectiveprogramming of the mind which distinguishes the members of one human group fromanother" (Hofstede, 1980)Organizational culture varies from industry to industry and forms country to country. Itshows its different characteristics like diversity in workforce. It can create both positive andnegative effect on the staff and the workplace. In fact culture determines the survival of anorganization over the long term. Cultures can be a liability to an organization if it createsbarriers to change, create barriers to diversity or barriers to mergers and acquisitions(Robbins, 2009).Understanding the organizational culture can help you to understand why change does nottake place, or why a project fails. It will also help you to determine where to strive to makechanges to the culture. Internationalization and globalization has led to tremendous changesmaking business environments more complex. Groeschl (2003) states that it is important fororganizations to look for appropriate and effective organizational processes and further focuson managing performance based on the cultural dimensions. Studies on comparativemanagement and cross cultural aspects show that management approaches and perceptionsdiffer with culture. Next talking about the studies done by theorists and practitioners past twodecades it is seen that they have been analyzing and discussing the appraisal process as animportant tool that helps in managing people and performance in organizations (Groeschl,2003).

303www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The cultural framework provided by Hofstede’s has been overall accepted as unit formeasuring differences among nations (Triandis, 1982). It is also fact that number of studies toinvestigate the effect of culture on human resource polices are limited. The culturaldimensions have been grouped into two categories, namely relations between people andmotivational orientations (Hofstede, 2000).INDIVIDUALISM, VERSUS COLLECTIVISM: This parameter is measured by anindex which reveals the degree to which individuals look after themselves or remainintegrated into groups, usually around the family. In individualism the ties betweenindividuals are loose. Everyone is expected to look after himself and her immediate family.Collectivism stands for a society which are integrated into strong, cohesive in-groups, whichthroughout people’s lifetime continue to protect them in exchange for unquestioning loyalty”(Hofstede, 2002, p 225). Individualism is measured by Individualism Index (IDV) and it isobserved that most developed countries have highest index as compared to developingcountries.Societies do face uncertainty of living. According to the theory suggested by Hofstede thereare three dimensions: masculinity versus femininity, amount of uncertainty avoidance, andpower distance.MASCULINITY VERSUS FEMININITY: issue comes on surface due to the emotionaldifferences between two genders. Masculinity Index (MAS), differ with each country basedon high gender roles, distinction at work. It has been found to be highest in Japan.UNCERTAINTY AVOIDANCE: This aspect measures how much the culture has made itsmembers feel comfortable or uncomfortable in unstructured situations. In the study byHofstede’s, there is mention of score on Uncertainty Avoidance Index (UAI) (Hofstede,1991, p. 113)POWER DISTANCE: This is another index in which the less powerful members oforganizations and institutions accept and expect that power is distributed unequally. Thepower distance is measured in a Power Distance Index (PDI) (Hofstede, 1991, p. 26). Thevalues and attitudes found at the national level contrast “low-PDI countries” with “high-PDIcountries”, with some countries placed in between. High PDI countries include Malaysia,Guatemala, Panama, Mexico, and East Africa. Low PDI countries include the US, Austria,Sweden, and Denmark (Hofstede, 2000).In addition to the above, Hofstede introduced the fifth dimension which is Long termorientation which is mostly related to individualism dimension (Lu, Lung-Tan,Lee & Yuan-Ho, 2005). Hostfede (1984) states that international managers need to understand deeply theranges of culture determined value system which exist between the nations and this should beused to transfer in other words share knowledge of management ideas from one nation toanother. Here it is important for us to learn about the cultural variables that directly orindirectly affect the performance management in an organization. Zeynep Aycan, RabindraKanungo, Manuel Mendonca, Kaicheng Yu, Jurgen Deller, Gunter Stahl and Anwar Kurshid(2000) states that there are three different levels where in the cultural variables effect thehuman resource management practices. Where in at the first level organizations internal workculture is seen as a way that shares managerial beliefs and assumptions which relate to tasksand employees. At the second level task driven assumptions are driven by the organizational

304www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780characteristics such as industry, ownership status, availability of resources, marketcompetition. Finally at the third level employee related assumptions are driven by sociocultural characteristics. Thus it can be said that the organizational work culture (internal workculture) refers to shared managerial beliefs and assumptions (Zeynep Aycan, RabindraKanungo, Manuel Mendonca, Kaicheng Yu, Jurgen Deller, Gunter Stahl and Anwar Kurshid,2000) which shows a major impact on organizational and societal level cultures.For the corporate operating in more than one country the human resources department jobincludes work involving the management of staff in a variety of different cultural settings,decisions on the ideal mix of local expatriate staff and the pay and remuneration of thoseworking in a foreign location (Woods, 2001). There is different view by Watson (1997), whohas a unique approach to employment management including the cultural, structural andpersonnel techniques. Cultural diversity is a reality in multinational companies and it is theresponsibility of line management to get the support of their employees, their understandingand participation according to Du Plessis, Beaver and Nel (2006).PERFORMANCE MANAGEMENTAccording to Lu, Lung-Tan,Lee & Yuan-Ho (2005) performance management includedmanagement style of managing things within the organization. This mainly included style ofsupervision – this shows the different types of relationship between the superior and theirsubordinates in the organization. It is seen that supervision style s related to power distanceand individualism. Next decision making tactics – this relates the various activities that leadto accomplishment and outcomes which is influenced by high centralization and formalauthority at senior most levels.Next comes the differentiated patterns of communication – this refers the various types offlow of information within the organization and between the departments. This also focuseson the barriers of information flow. This is influenced by high power distance, lowindividualism and high masculinity dimensions. Next mechanism of controlling – this refersto the various operations conducted in the organization and checks for the results obtained bymeeting employees. Next, paternalistic orientations – this refers to the degree of supervisionand their concerns towards the employees especially in non work related issues (employeefamily life and social support).Finally, maintaining relations within the departments (interdepartmental) - as said this clearlystates the relationships between the departments in the organization. This is highly influencedby power distance and high individualism (Lu, Lung-Tan, Lee & Yuan-Ho, 2005).CULTURE AND PERFORMANCE MANAGEMENTThe practices and processes of human resource management can be linked to other countriesbut it is a difficult process and can lead to difference in perception and becomes a debateableissue. This aspect if significance to the MNC’s as foreign direct investments (FDI) which iskey feature of any economy mainly is routed through opening of establishments or jointventures etc. There are legal bindings to recruit local staff and also to follow local culture tolarge extent. Wherever, there is violation, it is dealt with penalty. Performance Managementis a strategic HRM process and MNC’s use this tool to improve individual, subsidiary unitand corporate performance linked to company’s strategy.

305www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The research studies are limited regarding the effects of performance management of theemployees in MNC subsidiaries where the majority of the work force is of host-countrynationality, and where the host-country's culture may differ substantially from that of theMNC's home country. This issue is not so simple as there can be number of other aspects likeattitude problem of people sitting at higher posts in owner countries with the country of andespecially of non managerial employees in MNC subsidiaries (Malcolm G Patterson, MichaelA West, Rebecca Lawthom and Stephen Nickell, 1997). In such circumstances, employeeswith negative attitudes do not perform to full extent, at times they will cause disruptions inoperations which can jeopardize the viability of the organization.In their hypothesis Zeynep Aycan, Rabindra Kanungo, Manuel Mendonca, Kaicheng Yu,Jurgen Deller, Gunter Stahl and Anwar Kurshid (2000), states that the managers from India,China, Pakistan, Russia, Romania are considered to be on the top which means there is widerange of delegation of power difference between hierarchy levels. Managers from Canadaand USA are at middle level. It is sort of paternalistic relationship wherein the seniority andgender is given high importance. There is no cross cultural study regarding paternalism. Thisis second type of cultural dimension. There is third cultural dimension of loyalty towardscommunity. It refers to the extent up to which the people are loyal to their communities arecompelled to fulfil their commitments. The last socio cultural dimension was fatalism whichmeans whatever happen must happen.Zeynep Aycan, Rabindra Kanungo, Manuel Mendonca, Kaicheng Yu, Jurgen Deller, GunterStahl and Anwar Kurshid (2000), state that most of the studies in this context relates to theindustrial and organisational psychology (I/O) within one cultural context. In view of theabove the cross cultural impact is not compared by most of the studies. Therefore, a betterunderstanding of how cultural dimensions may explain effectiveness of HRM practicesdifferently in other cultures.The strong performance management is critical to meet challenges, promote innovation anddevelop top performing teams and will lead to culture of performance. A strong culture ofperformance cultivates the vision of family belonging in the company. This vision will leadto teams and departments actively seeking proactive ways to drive value to the business andpromote new levels of cooperation. Performance management is the focal point to enhanceaccountability and building high performance culture. However, the views of some of theorganizations differ and they do not agree that it ads to value to the organization (ZeynepAycan, Rabindra Kanungo, Manuel Mendonca, Kaicheng Yu, Jurgen Deller, Gunter Stahland Anwar Kurshid, 2000). According to Zeynep Aycan, Rabindra Kanungo, ManuelMendonca, Kaicheng Yu, Jurgen Deller, Gunter Stahl and Anwar Kurshid (2000), the strongperformance management is critical to meet challenges, promote innovation and develop topperforming teams and will lead to culture of performance. A strong culture of performancecultivates the vision of family belonging in the company. This vision will lead to teams anddepartments actively seeking proactive ways to drive value to the business and promote newlevels of cooperation. Performance management is the focal point to enhance accountabilityand building high performance culture. However, the views of some of the organizationsdiffer and they do not agree that it ads to value to the organization.The other key point is the dimension of internal work culture in relation to socio culturalenvironment. There are seven hypotheses in this study which are related to the Model ofCultural Fit. The internal work culture environment includes prevailing managerial

www.zenithresearch.org.in306ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780assumptions about flexibility. The basis of assumptions in this case is that the managers feelthat employees can improve their skills based on the training and being provided withdevelopmental opportunities. Amongst the seven hypotheses one is proactively which denotethe extent to which the employees take proactive interest in learning. They are expected to beloyal. Under the second hypotheses in this case is the responsibility seeking. Under this themanagers assume the extent up to which the employees can take up the responsibility(Zeynep Aycan, Rabindra Kanungo, Manuel Mendonca, Kaicheng Yu, Jurgen Deller, GunterStahl and Anwar Kurshid, 2000).Discussing about the performance Groeschl (2003), focuses on the process of appraisals inorganizations and states that appraisal process helps in identifying and developing people andtheir performance levels and at the same time the purpose of appraisal process in the culturalcontext could impose implications where in the employee performance can be interpreted orvalued in a different way due to different cultures, values and belief systems which issometimes considered as the success of the organization.In his paper “Cultural Implications for the Appraisal Process”, Groeschl (2003; pg.69) statesthat “information about behaviour” might be interpreted differently by the individualcollecting and evaluating them, due to different value and belief systems of, for example,what is right/wrong, or good and bad behaviour.”. This could end up in culture relatedimplications which form the concept and purpose of appraisal process in organizations whichcould be interpreted and valued differently due to cultural differences (Groeschl, 2003).ANALYSIS OF THE REVIEWAfter reviewing the literature and referring the various aspects of performance managementand impact of cultural dimensions the following analysis has been made in focus ofperformance management and impact of cultural dimensions in UAE organizations. Primarilythis research intends to discuss the impact of Hofstede cultural dimensions on UAEmanagement.Power distance (distribution of power) – considering the power distance dimension itis seen that there is high power distance that led to high decision making powers,delegation of work to subordinates, creates more gap between management andemployees. In UAE most of the organizations show high power distance where insubordinates are treated in a low level and there is a large gap between the seniormanagement and the low level management, high level of inequality prevails, seniormanagement separate themselves from the rest (according to Hofstede, PDI is 80)Individualism/ Collectivism – considering the individualism that reflects to theindividual values, self determination that is opposed by collective opinions and thedegree to which individuals integrate in groups, it is seen that in UAE there is lowindividualism (according to Hofstede, IDV is 38)Uncertainty avoidance – considering the dimension of uncertainty avoidance thatrelates to the tolerance of uncertainties and the ambiguity, unstructured to structuredmanagement, performance, safety measures etc., in UAE it is seen that there is highuncertainty avoidance that focuses on strict rules, laws, policies, regulations thatneeds to be implemented (according to Hofstede, UAI is 68)

www.zenithresearch.org.in307ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Masculinity – next talking about the masculinity which refers to the distribution ofroles and work between the genders. UAE scores 52 (MAS) that indicates the UAEwomen are limited to rights and Islamic religion could be the major reason for this.Long term orientation – this refers to the values, beliefs, social obligations associatedwith long term or either short term, in UAE there is a large score for long termorientation where in organizations and individuals as well give more importance tovalues, beliefs and social obligations. Many rules and regulations are put to follow thesocial condition in the nation.Thus looking at the analysis on Hofstede cultural dimension in UAE, it can be said that thecombination of high levels of power distance and uncertainty avoidance led to high ruleoriented laws, regulations, policies, control of policies and rules so as to reduce uncertainties.This helps the organization to have effective performance management. Next considering thelow and medium levels of individualism and masculinity the cultural constructs could be themajor reason for this. High masculinity could lead to low interference of women inorganization.Regarding performance management, in UAE management style is through managing thingswithin the organization that includes style of supervision which shows different types ofrelationship between the superior and their subordinates in the organization. It is seen thatsupervision style s related to power distance and individualism. Next talking about decisionmaking tactics in UAE organization that relates to various activities in organization led toaccomplishment and outcomes that are influenced by high centralization and formal authorityat senior most levels (as discussed before high power distance).In reference to differentiated patterns of communication that refers to various types of flow ofinformation within the organization and between the departments. In UAE organization thereare high levels of barriers of information flow and this is influenced by high power distance,low individualism and high masculinity dimensions. Next considering the mechanism ofcontrolling that refers to the various operations conducted in the organization and checks forthe results obtained by meeting employees, it is seen that in UAE organizations there is highlevels of controlling by superiors over subordinates. And considering the paternalisticorientations that refers to the degree of supervision and their concerns towards the employeesespecially in non work related issues (employee family life and social support) in UAEorganizations it is seen that there exists low level of supervision. Management is notconcerned of the employee personal or social life.Finally, maintaining relations within the departments (interdepartmental) clearly states therelationships between the departments in the organization which is highly influenced bypower distance and high individualismThus cultural dimensions have shown their impact on performance management in UAE also.The MNC’s that have parent company in other than UAE will have top executives from theparent country, their performance will depend upon the extent to which they areknowledgeable and imparted training regarding the UAE culture. The advantage is observedas knowledge of two cultures removes hidden barriers of cultural misunderstanding anddevelopment of better relationships. This can prove to be disadvantageous as unless theexpatriates are properly trained the will be unable to shown performance and impacts the

308www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780human resources and company as a whole. In addition to this there is usage of time andmoney for multicultural ventures. In UAE, the multinationals are not free from culturalshocks as the UAE society culture is unlike western society. The success of expatriates isenhanced by minimising the cultural shocks. It is fact that ability of local employees givesthem more advantage as compared to expatriates as locals are adapted to the culture muchbetter than the expatriates. Success in the UAE is defined by how much one contributes tothe society, either serving in government or the private sector or both. It is assumed that inthe multicultural global business environment such as UAE managers face the issue ofcultural differences. This also led to interference with management practices.CONCLUSIONThe culture is the best way in which group of people solves problems and reconcilesdilemmas. The culture is like book with each page giving sequence of the next page. Interculture communication is essential for exchange of ideas and emotions. It has been observedthat either the neutral or expressive cultures have problem in doing business with each other.As per records in UAE there are 76% Muslims, 15% Christians and 9% Hindus and others.Arabs are known for their informal, relaxed behaviour, good manners and consideration ofothers. There is strong vertical hierarchy in most Emirates companies. Emirates people preferto do business with those they know. Arabs by nature are trust worthy and they are notcomfortable with low trust and as per records approximately 10% UAE nationals change theirjob due to this reason.The human resources policies are implemented with difficulty in case of multinationalcompanies (MNC’s) as such companies try to implement global strategies. It is complexsituation for corporate human resources department as the company is operating in differentcountries involved and also people with diverse national backgrounds. The studies done inregards to the HRM show that strategic factors influence international human resourcemanagement. The policies and procedures need to be shaped in such a way that it complywith culture of both the countries. The most important explanatory variable is subsidiary roleand national culture of the country of origin. This carry significance as organizationalcapabilities of the subsidiary companies increase, the role of subsidiary employee inachievement of corporate objectives also increases.In UAE, there has been number of steps taken by Government to empower women as againstprevious times when the women were restricted to home makers. It is basically in culture ofUAE and men will never shake hands unless the women offer the same. Though theprevailing laws show equality of women in all spheres of field but the empowering of womenis still to go a long way in all segments of society. In very of the Islamic countries in theworld the culture may follow certain special rules because their knowledge of the world islimited. The leaders of a certain culture may suppress the people in order to remain in control.RECOMMENDATIONSIn one of his lecture Hofstede advised the nations that the power distance need to be reducedand the relationship between management and employees to be strengthened. He said that theorganisation structure should be that the decision making should not be centralised.Employee involvement will lead to better results. He has taken the IBM study in 70 countriesand observed that economy and the culture impacts the power distance. He also emphasized

309www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780that all employees to be treated as equal and the inequality should be removed. In the seconddimension of uncertainty, he is of the opinion that unless risk is taken the flexibility andcreativity is less. For the third dimension it is the individualism and collectivism, highlyindividualism value autonomy, personal success and personal goals, looking for themselves.These societies are having low level of transition and low level of social benefits. Incollectivism, social acceptance of team work is highly valued. Masculinity and femininity:By masculinity he mentioned competitiveness and assertiveness.If these approached are applied in UAE, power distance is in existence. There is hierarchysystem prevalent in most of the companies. The moderate opinion is suggested. UAE hasparity between masculinity and femininity though it is in transition phase; it is suggested totake immediate steps. The collectivism is prevalent in UAE. This will add to the growth andbenefit to the society and recommended to be continues. In the similar way for the dimensionnamed as uncertainty, people in UAE will like to take low risk. The culture needs to acceptchange in the social environment and structured management is need of the time.UAE is developing fast and there is number of expatriates to work for local as well asMNC’s. Their performance management can be made effective in the organization if there isneed for the right system in place. The employees including managers and staff need to beimparted training to be aware of the importance of managing performance. Gettingperformance management right involves changing what people do, and how they do it and bydeveloping the right culture. There are number of ways by which organization in UAE canimprove the effectiveness of the performance management. As per UAE culture people needsense of ownership and responsibility to take action for improvement. They also needdirections in the opportunities for setting further directions and reviewing progress.There are chances that organization culture of culture of the country is not supporting andunless proper steps are not taken it can be prove to be risky for future progress. Such culturesmay not be able to improve the performance management.Except for the rich families and educated society the UAE remains underdeveloped. Thechange in culture is restricted to a few professional associations and voluntary groups. Thereis limited social and political polarization in UAE. The UAE has strong reliance on foreignlabor which is a major worry, because current projections forecast that the local nationalpopulation will form only 2% of the total population by the year 2025 (based on statistics asdeveloped by the Ministry of Education).The organizations in UAE need to realize that an important aspect of capitalizing on theirbusiness strategy is through its people. They have had to acquire new knowledge or skills,learn new methods of working, or simply gone without certain functionality for awhile. Employers need to assess how much of this has occurred and begin to takeappropriate measures to mitigate the risk of discontinuity.

310www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780REFERENCES[1] Stefan Groeschl (2003), Cultural Implications for the Appraisal Process, CrossCultural Management, An International Journal, Vol. 10 Iss: 1, pp.67 – 79[2] Zeynep Aycan, Rabindra Kanungo, Manuel Mendonca, Kaicheng Yu, Jurgen Deller,Gunter Stahl and Anwar Kurshid (2000), Impact of Culture on Human ResourcePractices: A 10 Country Comparision, Applied Pshychology, An InternationalReview, 2000, 49 (1), 192-221.[3] Adriana Victoria Garibaldi de Hilal, Ursula Wetzel and Vicente FerreiraOrganizational culture and performance: a Brazilian case, Management ResearchNews, Vol. 32 No. 2, 2009, pp. 99-119[4] Lu, Lung-Tan,Lee & Yuan-Ho (2005),The Effect of Culture on the ManagementStyle and Performance of International Joint Ventures in China: The Perspective ofForeign Parent Firms, International Journal of Management, 2005[5] Geert Hofstede (1984), Cultural Dimensions In Management And Planning, AsiaPacific Journal of Management, January 1984[6] Michel J. Lebas (1995), Performance measurement and performance management,International Journal of Production Economics 41 (1995) 23 35[7] Alfred A. Jaegar & Rabindra Nath Kanungo (1990), Management in developingCountries,[8] Malcolm G Patterson, Michael A West, Rebecca Lawthom and Stephen Nickell(1997), Impact of People Management Practices on Business Performance, InstituteOf Personnel And Development, The Cromwell Press, Wiltshire[9] Malcolm Higgs (1996), Overcoming the problems of cultural differences to establishsuccess for international management teams, Team Performance Management: AnInternational Journal Vol. 2 No. 1 1996 Pp. 36-43, MBC University Press 1352-7592[10] Plessies Andries J.D.(2009), An Overview Of The Influence Of Globalisation AndInternationalisation on Domestic Human Resource Management In New Zealand,International Review of Business Research Papers, Vol.5 N0. 2 March 2009 Pp. 1-18[11] Woods, M.(2001), International Business, Macmillan Press Ltd.[12] Stephen P. Robbins (2009). Organizational Behavior, Pearson Education SouthAfrica, 8th ed., 602-603[13] Norm Smallwood and Dave Ulrich(2009), Learning Leadership in Emirates, OnLeadership, The RBL Group.[14] Du Plessis, A. J., Beaver, B., Nel, P. S. 2006. Closing the gap between currentcapabilities and future requirements in HRM in New Zealand : some empiricalevidence. Journal of Global Business and Technology 2 (1) Spring 2006:69-77.

311www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780[15] Du Plessis, A. J., Beaver, B., Nel, P. S. (2006). Journal of Global Business andTechnology 2 (1) Spring 2006:69-77.[16] Triandis H.C. (1982). Review of culture’s consequences. Human Organization,41:86-90[17] T.J Watson (1997), Human resource management, industrial relations and theory -standing back and starting again. New Zealand Journal of Industrial Relations, 22(1),7-21.

312www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780AN APPRAISAL OF SMALL AND MEDIUM ENTERPRISES (SMEs) INHARYANA STATE OF INDIAABSTRACTANISHA SAHAPATHI*; DR PARUL KHANNA***Research Scholar,Singhania University.**Associate Professor and Dean R&D,Institute of Management & Technology,Faridabad.For the socio-economic development of any country, a strong Industrial base is desirable. Thenatural resources need to be developed and utilized both as input to industrial production andas direct products for the social well being of the citizenry. Since India‟s Independence in1947, industrialization has been recognized as the critical factor to the economictransformation of the country. To achieve the desired result, Government had, focused in itsindustrial policy mainly on the promotion and establishment of large-scale industries (LSIs)in pursuance of import substitution process. The promotion of Small and Medium Industries(SMEs), on the other hand, received relatively low direct Government investment, and wasleft to the initiatives of the private entrepreneur.___________________________________________________________________________INTRODUCTIONIn today‟s India, industries, particularly small and medium – sized manufacturing industries(SMEs), operate under various conditions and constraints, which stand on the way to theachievement of organisational goals. There are, for example, high cost and shortage ofmaterials, shortage of funds, inability to recruit competent staff. Due to its size, the individualfirm neither has control over input factor costs or the prices at which it sells its output withthe result that inefficient and high cost firms are forced out of business. This makes costsaving devices essential for economic survival. Gone were the days when owners of thebusinesses concerned themselves with returns, or employees with salaries and wages only;their interests are now also focused on the efficient operation of the business and utilisationof invested resources. other hand, a section of the organized private sector contends that thevarious policies, incentives and strategies, so far put in place for the industrial sector, haveeither not been implemented or have been inconsistent or are inappropriate, to address theproblems of the SMEs sub-sector, or to stimulate growth and enhance performance of theSMIs.SMEs IN INDIAWith the advent of planned economy from 1951 and the subsequent industrial policyfollowed by Government of India, both planners and Government earmarked a special rolefor small-scale industries and medium scale industries in the Indian economy. Due protectionwas accorded to both sectors, and particularly for small-scale industries from 1951 to 1991,till the nation adopted a policy of liberalization and globalization. Certain products were

www.zenithresearch.org.in313ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780reserved for small-scale units for a long time, though this list of products is decreasing due tochange in industrial policies and climate.SMEs always represented the model of socio-economic policies of Government of Indiawhich emphasized judicious use of foreign exchange for import of capital goods and inputs;labour intensive mode of production; employment generation; non-concentration of diffusionof economic power in the hands of few (as in the case of big houses); discouragingmonopolistic practices of production and marketing; and finally effective contribution toforeign exchange earning of the nation with low import-intensive operations. It was alsocoupled with the policy of de-concentration of industrial activities in few geographicalcentres. It can be observed that by and large, SMEs in India met the expectations of theGovernment in this respect. SMEs developed in a manner, which made it possible for them toachieve the following objectives:High contribution to domestic productionSignificant export earnings,Low investment requirements,Operational flexibilityLocation wise mobilityLow intensive importsCapacities to develop appropriate indigenous technologyImport substitutionContribution towards defence productionTechnology – oriented industriesCompetitiveness in domestic and export marketsAt the same time one has to understand the limitations of SMEs, which are:Low Capital baseConcentration of functions in one / two personsInadequate exposure to international environmentInability to face impact of WTO regimeInadequate contribution towards R & DLack of professionalism

314www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780In spite of these limitations, the SMEs have made significant contribution towardstechnological development and exports. SMEs have been established in almost all-majorsectors in the Indian industry such as:Food ProcessingTextile andGarmentsLeather andLeather GoodsAgriculturalInputsMeat ProductsChemicals andPharmaceuticalsMajor Sectors of SMEBio-EngineeringEngineering &ElectricalsSports GoodsElectro-MedicalEquipmentsComputerSoftwarePlastic ProductsFIGURE 3: MAJOR SECTORS OF SME’sSMEs have been playing a pivotal role in country‟s overall economic growth, and haveachieved steady progress over the last couple of years. From the perspective of industrialdevelopment in India, and hence the growth of the overall economy, SMEs have to play aprominent role, given that their labour intensiveness generates employment. The SMEsegment also plays a major role in developing countries such as India in an effort to alleviatepoverty and propel sustainable growth. They also lead to an equitable distribution of incomedue to the nature of business. Moreover, SMEs in countries such as India help in efficientallocation of resources by implementing labour intensive production processes, given theabundant supply of labour in these countries, wherein capital is scarce.

315www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act,2006 was a landmark initiative taken by the Government of India to enable the SMEs‟competitive strength, address the issues and challenges and reap the benefits of the globalmarket. SME policy initiatives at the national and state level are aimed at strengthening therole of SMEs at the base as well as at the higher level.TABLE1: TOTAL NUMBER OF MSME’S 1No. of SME Units (In Million)Financial Year (FY) Registered Unregistered Total2003 1.6 9.3 10.92004 1.7 9.7 11.42005 1.8 10.0 11.92006 1.9 10.4 12.32007-Present 2.0 10.8 12.8With globalisation, all forms of production of goods and services are getting increasinglyfragmented across countries and enterprises. With large players adopting different models ofbusiness that include involvement of the their traditional partners, suppliers or distributors ata different level, SMEs now are now experiencing a new model of functioning in the valuechain.TABLE 2: TOTAL EMPLOYMENT IN SME’S AND PRODUCTION PEREMPLOYEE 2Total Employment of SME’s and Production per EmployeeFinancial Year (FY) Employment (In Million) Production per Employee2003 26.37 1162004 27.53 1222005 28.76 1302006 30.0 1401 Source: Office of the Development Commissioner (MSME)2 Source: Ministry of Micro, Small & Medium Enterprises Government of India.

www.zenithresearch.org.in316ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802007-Present 31.25 151PRODUCTION AND INVESTMENT IN SMEsThe total production of the SMEs showed a phenomenal growth in FY07 as compared to theprevious year. The production at current prices experienced a growth rate of around 18%against 15.8% in the previous year, thereby raising its share to India‟s GDP up to15.5%during the year.SMEs constitute an important segment of India‟s industrial production with a contribution to33% of its exports

317www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The composition of export basket of SME‟s in India, it has both traditional and non-traditioncommodities in nature. There are few commodity groups which are exclusively exported bySMEs such as sports goods, cashew, Lac etc. In the commodity group of engineering goods,SMEs constitute around 40% of the total exports of this commodity group. Similarly, SMEsin basic chemicals & pharmaceuticals finished leather and leather products and marineproducts account for around 44%, 69% and 50% of the export share in their respectivecommodity groups. In view of the Government of India‟s ambitious target of average GDPgrowth rate of 9% during the 11th Five Year Plan, SMEs have to play a vital role inachieving this target. It is imperative for the government to address the major issuesplaguing the sector and take further inclusive growth oriented policy initiatives to boost thesector.HARYANA – A HOUSE OF INDUSTRYThe “Green Land of India” the State of Haryana came into being on 1-November-1966.Haryana can be divided into two natural areas, sub-Himalayan Terai and Indo-Gangetic Plain.It has an agriculture-based economy. The state also has a strong industrial base. It is also wellknown for its Handloom products all over the world. Haryana is comparatively smaller is sizeand younger in years but historically it has been great importance all-through. Starting fromthe days of Maha Bharat in Kurukshetra, the scene of the epic battle between the Kauravasand the Pandavas, the state was the home of the legendary Bharat‟s dynasty, which has beengiven the name „Bharat‟ or „India‟.The area of Haryana is 44212 Sq. KM with a population of 21.08 millions. The density ofpopulation is 477 per sq. KM. The literacy rate is 68.59 and its capital is Chandigarh. Areawise it stands at 20 th place out of the 28 states, biggest being Rajasthan and smallest beingGoa. Population wise it ranks at 15. It is also surrounded by Delhi which has highest densityof population of the county which is 9294. Railway track length is 1499 KM and Road lengthis 23168 K.M. It has length of 698 KM of national high-way. It has length of 698 KM ofnational high-way. It has one of Industrial Zonal Parks. Small in size but giant in attainmentwith just 1.37% of the country‟s geographical area and 1.97% country‟s total population thestate is counted among the first few states with the highest per capita income. As it can beseen that Haryana currently produces two thirds of passenger cars, 50% of tractors, 60% ofmotor cycles and 50% of refrigerators manufactured in the county. About 25% o India‟s totalproduction of Sanitary ware is from Haryana. One out of every four bicycle sin the country ismanufactured here.The state has already 650 projects with foreign technical collaboration such as MAruti UdyogLtd. Hero Honda, Modi Alcatel, Escorts, Soni India, VXL India, Whirlpool Indusries, WiproLtd., DCM, Benetton, TDT Copper Ltd., Ashai India Safety Glass etc.Some major units in the public sector are HMT Ltd., National Fertilizers Ltd., Indian Drugsand Pharmaceuticals Ltd., Bharat Electronics Ltd., IBPL etc. Rs. 4200 crore oil refinery isother mile stone.The state has received new project proposals from MNCs such as United Development Inc.Panama, Tecumseh Products, USA, JELD won Inc GMBH, Germany, NHK SpringCompany, Japan, Casio Computers, Japan in the tune of 1910 crores.

www.zenithresearch.org.in318ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780In the last six years 2662 industrial entrepreneur memorandum have been filed with GOI forsetting up projects in Haryana. The state is projected to get investment of 293 Billions whichwill help in generating direct employment for 3.18 lakh persons.Haryana is also manufacturing largest number of mixies and gas stoves in the country. In2000-01 agro-based lamp, scientific instruments leather products, automobiles and tractorsworth Rs. 70 billion were exported from Haryana.Thus Haryana offers an excellent location to start any industry because it has rich industrialbase with excellent infrastructure. Another advantage is that approximately one third ofHaryana falls under National Capital Region and that is why Panipat, Rohtak, Gurgaon,Faridabad and Sonipat have a special potential because of its proximity of Delhi.SME’S IN HARYANAHaryana is one of the wealthiest states of India and has the third highest per capita incomeinthe country at Rs. 67,891, including the largest number of rural crorepatis in India Haryana isalso one of the most economically developed regions in South Asia and its agricultural andmanufacturing industry has experienced sustained growth since 1970s. Haryana is India'slargest manufacturer of passenger cars, two-wheelers, and tractors. Since 2000, the state hasemerged as the largest recipient of investment per capita in India.The city of Gurgaon has rapidly emerged as a major hub for the information technology andautomobile industries. Gurgaon is home to Maruti Udyog Limited, India's largest automobilemanufacturer, and hero Honda Limited, the world's largest manufacturer of two-wheelers.Yamunanagar, Panipat, Panchkula and Faridabad are also industrial hubs, with the PanipatRefinery being the second largest refinery in South Asia. There are also long establishedsteel, plywood, paper and textile industries in the state.According to the National Capital Regional Plan 2021 notified on Sept 17, 2005, the NCRcovers a total area of 30,242 sq km comprising the following areas:-National Capital Territory of Delhi (1,483 sq km)Haryana sub-region (13,413 sq km) comprising Faridabad, Mewat, Gurgaon, Rohtak,Sonepat, Rewari, Jhajjar and Panipat districtsRajasthan sub-region (7,829 sq km) comprising whole of Alwar districtUttar Pradesh sub-region (10,853 sq km) comprising Meerut, Ghaziabad, GautamBudh Nagar, Bulandshahr and Baghpat districts.ABOUT GURGAONGurgaon is one of the fastest-developing cities, and is located in the south of Haryana.Spread over an area of 738.82 sq km it is an important and the most developed commercial/business centre in Haryana. Gurgaon, which is a part of the National Capital Region (NCR)of India, has evolved over the past few years into an important outsourcing andmanufacturing destination. According to the Economic Survey of Haryana FY06, theGurgaon region ranked third among India‟s major software export locations. Gurgaon has

319www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780witnessed a rapid growth in real estate and construction industry fuelled by the highdisposable income of consumers in the region along with easy availability of land. Thecommercial property has witnessed a boom mostly due to the IT, ITeS and other serviceindustries.TABLE 3: BASIC STATISTICS – GURGAON DISTRICT 3Population 870,539Total Literacy Rate 62.91%Number of Medical (allopathic) institutions FY 08 14Number of Registered Working factories (2007) 1,570Estimated number of workers employed in the above working factories (2007) 186,887Number of commercial bank offices as on March 31, 2008 218INFRASTRUCTURE IN GURGAONGurgaon has emerged as the most preferred destination for private entrepreneurs. Itsstrategic location (32 km from New Delhi, located on the National Highway of Delhi-Jaipurroad), close proximity to the Indira Gandhi International Airport, well-developedinfrastructure in terms of roads and communication network and total electrification hasaided in attracting investments from big multinaltional companies. Gurgaon Railway Stationis one of the oldest and is situated on the Delhi - Rewari - Jaipur Railway line route.However, for long distance trains, people have to travel to railway stations in Delhi. Theroute of the Delhi Metro has been extended to cater to the Gurgaon district as well, whichhas further improved its connectivity with Delhi. A proposal is in the offing to provide a railcorridor to link the major satellite towns of Gurgaon, Faridabad, Bahadurgarh and Kundliwith New Delhi.INDUSTRIAL SCENARIO IN GURGAONWell-developed infrastructure coupled with policy initiatives from the government hascreated a favourable industrial climate in this region. More than 400 large and medium-scaleunits and around 8,000 small-scale units operate in the Gurgaon district. In fact, MarutiUdyog Limited was the first company to set up factory in Gurgaon in the early eighties,which set the growth momentum for industrial development in Gurgaon. After Maruti manyother multinational companies like Hero Honda Ltd, Honda Motors of Japan, Suzuki MotorCycle and ancillaries of these automobile companies set up their base in the region.3 Haryana Statistical Abstract 2007-2008, Census 2001

www.zenithresearch.org.in320ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Many major units involved in manufacturing telecommunication equipment, lightengineering goods, electrical goods, software development, hardware, sports goods, rubberand plastics products, readymade garments, pharmaceuticals, terry towels, food items, airconditioners, shoes, pesticides, insecticides, agro based and food processing, leather as wellas few companies in the field of bio-technology are operating in the district. A cluster ofhigh-fashion readymade garments units has come up in the industrial area of Udyog Vihar,Gurgaon. The units operating in this cluster export products to many countries and alsosupply to several Indian brands.Over the last few years, Gurgaon has emerged as the major hub for IT and. the ITES-BPOindustry. There is an IT and Telecommunication Complex in the Electronic City in Gurgaon,which is spread over 40 acres. This complex has been planned for computer/ software exportand is equipped with world-class facilities like earth station, teleconference, internet, e-mailservice and other state-of-the-art communication services. There is also a softwaretechnology park allotted to software units within this area that occupies an area of 14,000 sqft. The park also provides satellite communication links to the units located in the park. TheIT policy by the Government of Haryana had provided a fillip to IT and ITES industry inGurgaon.Moreover, the state government through its enterprise Haryana State ElectronicsDevelopment Corporation Limited (HARTRON), has been undertaking various schemes andactivities for the development of electronics and IT industry in a systematic and scientificmanner in the state. Famous IT companies like Hughes Software, Tata Consultancy Service,Alcatel, HCL, Siemens, GE Capital, Silicon Graphics etc have their units located atGurgaon. The software exports from Haryana increased from Rs 8.90 bn in FY00 to Rs175.0 bn (approximately) in FY08.INDUSTRIAL ASSOCIATIONS IN GURGAON1. Business Process Industry Association of India2. Gurgaon Chamber of Commerce & Industry (GCCI)3. Gurgaon industrial Association (GIA)4. Udyog Vihar Industries AssociationFUTURE DEVELOPMENTTo further boost the IT and ITeS industries in Gurgaon, Haryana plans to set up a Hi-TechHabitat Centre with world-class facilities for IT, ITeS and BPO companies in the ElectronicCity, Gurgaon. The state government also plans to develop an auto parts industrial cluster inGurgaon.ABOUT FARIDABADFaridabad, situated in the south-eastern part of Haryana, is the biggest urban agglomerationof Haryana. With a strong industrial base, Faridabad is one of the largest contributors to therevenue generation of Haryana.

321www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The industrial activity and expansion in Faridabad is attributed to the policy decision takenafter independence to develop the surrounding regions of Delhi as a metropolitan region toreduce the population pressure on Delhi. Faridabad has the status of being a metropolitantown and has a Municipal Corporation since 1994.The Faridabad Municipal Corporation consists of Old Faridabad, Ballabgarh and NIT (NewIndustrial Township). The majority of workforce in Faridabad is in the tertiary/ servicessector. According to the 2001 Census the workforce participation rate of Faridabad city is31%.TABLE 4: BASIC STATISTICS – FARIDABAD DISTRICT 4Population 19, 90,719Total Literacy Rate 70.03%Number of Medical (allopathic) institutions FY 08 37Number of Registered Working factories (2007) 2,638Estimated number of workers employed in the above working factories (2007) 196,036Number of commercial bank offices as on March 31, 2008 172INFRASTRUCTURE IN FARIDABADThe National Highway NH-2, (Delhi-Mathura Road) passes through the length of the cityand is the central axis of the city of Faridabad. Further, NH-3 and NH-4 also pass throughthe city. Faridabad is connected to other states through three railway stations namely OldFaridabad, NIT, Faridabad and Ballabgarh. There is also an Inland Container Depot inFaridabad. The metro is connected to Indira Gandhi International Airport, New Delhi andPalam Domestic Airport, in New Delhi. The eastern peripheral expressway (Kundli-Ghaziabad-Palwal “KGP”) and western peripheral expressways (Kundli-Manesar- Palwal-“KMP”) passing through Faridabad are underway, which will facilitate faster movement ofinter-state traffic besides connecting Delhi with all the Delhi Metropolitan Area towns andall National Highways around Delhi.The projects Badarpur Flyover is complete and will further aid the infrastructuredevelopment of the region are; Six lanning of NH-2, Extension of Metro Rail uptoFaridabad and Kalindi Kunj bypass providing easy access to Noida.INDUSTRIAL SCENARIO IN FARIDABADHaryana is a hub for the automobile industry in India as important automobile centres are inGurgaon and Faridabad. The main industries in Faridabad are light automotive components,engineering goods and metal goods. The major industrial production in the district, mainly4 Haryana Statistical Abstract 2007-2008, Census 2001

322www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780represented by Faridabad city itself, is of tractors, motorcycles, tyres, switch gears, steelrerolling, scientific instruments, power looms, agriculture implements, JCB cranes,consumer durables, footwear etc. Haryana State Industrial Development Corporation(HSIIDC) is the nodal agency for industrial development of Faridabad.As on 2006, there were 16 multinational companies, 809 ISO-based industries, 205 mediumand large-scale industries and 399 small-scale units as per the records of the DistrictIndustrial Centre, Faridabad. Besides, there are also a large number of smaller industrialunits, functioning from various locations including residential areas in the city. Overall, thereare about 15,000 small, medium and large industries in the Faridabad - Ballabgarh Complex.It is considered to be one of the largest industrial estates - ninth largest industrial centre ofAsia (2006). Many international/multinational companies like Whirlpool Corporation,Goodyear Company, Castrol Ltd, Larsen & Toubro, GKN Invel Transmission ltd, AsiaBrown Boveri Group, Woodward Governer Company, Eicher Motors ltd, Escorts group,Nuchem Ltd operate in this area.Many industrial units in Faridabad have collaborations with foreign countries and many arewholly-owned foreign companies. The products that are exported from Faridabad district areelectric equipment, tractor, machinery, industrial units, helmets, tyres, footwear etc.INDUSTRIAL ASSOCIATIONS IN FARIDABADThere are five major industrial associations in Faridabad that play a major role in theindustrial development in the region. These associations are:1. Laghu Udhyog Bharti2. Faridabad Industries‟ Association3. Faridabad Manufacturers‟ Association4. Faridabad Small Industries‟ Association5. Faridabad Chamber of Commerce & Industries>FUTURE DEVELOPMENT IN HARYANAHSIIDC is planning to establish an Industrial Model Township (IMT) in four cities inHaryana including Faridabad. These townships will include campuses for large industries,Information and Communications Technology (ICT) parks, industrial plots, flatted factories,residential colonies, labour housing, commercial and institutional areas, entertainment zones,educational and healthcare facilities etc. Around 500 small and medium enterprises inFaridabad, mainly auto components manufacturers, intend to invest over US$ 30 mn fortechnology improvement and capacity expansion in the coming years. The state governmentalso plans to develop Light Engineering Industry Cluster in Faridabad (project cost Rs 727mn) and the government will fund 75% of the total cost of the project upto a maximum of Rs500 mn.The regional plan 2021 of NCR has identified Faridabad as the location for wholesale tradeof auto parts. This state-level agency plans to develop a alternative wholesale market for

323www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780auto parts as a joint venture project. It also proposes to urge the government to grant autoparts a commodity status under the Specified Commodities Act, which will allow theindustries in the region to avail the benefits meant for commodity dealers under the Act.POLICIES-HARYANAThe state government of Haryana has formulated different policies to foster the growth anddevelopment of the state The Industrial Policy 2005 of Haryana has the strategic mission todevelop economic hubs through infrastructural initiatives, encourage public privatepartnership (PPP) in infrastructure projects, focus on economic activities enjoyingcomparative advantage in the state; in particular development of food processing industry,Electronics, Information & Communication Technology industry, promote mega projectsparticularly in backward regions, focus on development and support to the small andmedium enterprise segment. The state government has identified IT, ICT and ITES as athrust area in recognition of its potential for exports, employment and wealth generation.The IT Policy 2000 had aimed to replace the traditional delivery system of public serviceswith ITdriven systems of governance.The Haryana SEZ Act 2005 aims to promote and establish large self-contained industrialtownships, with world-class infrastructure.The Labour Policy 2006 of Haryana is focused on strengthening the conciliation measuresfor prevention and early resolution of industrial disputes.CONCLUSIONS AND RECOMMENDATIONSIn conclusion, it is imperative to realize that performance goals and targets, set in productionand low costs for the SMEs can only be achieved when SMEs are provided with good SMEfriendlypolicies, conducive operating environment, improvements in infrastructure, peaceand security; and have the right type of personnel, that have cooperative attitudes and spirit,good team work, high morals, high motivation, high performance goals, have the desire toachieve the company‟s goals and objectives and are served with good communication.Many recommendations have emerged from the study. First, deliberate efforts are stillneeded on the part of Governments, Trade Associations, SMES and other stakeholders tonurture a climate that is conducive to successful and profitable operation of SMES. Inparticular, improvements in infrastructure such as constant supply of electricity, water, roadand rail transportation systems are necessary.Secondly, loan facilities from banks and other funding schemes to SMES should include aprovision of managerial assistance to SMES to upgrade management and technical skills.Other recommendations include the call on Government to take concrete actions to curbdumping, smuggling and importation of cheap foreign products; to harmonize taxes, chargesand levies; to develop its industries and to encourage Indians to patronize products made bySMES and to privatize owned industries to enhance their efficiency and performance.Importance of SSI can not be ignored as far as generation of employment and revenue isconcerned. Many other states are far ahead compared to Haryana in this objective. This

www.zenithresearch.org.in324ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780clearly indicates that there is ample scope in this direction which can bring higher revenues aswell as in raising the standards of living and quality of life of the residents of the state.REFERENCESAnnual Report, 2008-09. Ministry of Micro, Small and Medium EnterprisesCorporate Governance Reforms in India (May, 2002) by Ananya Mukherjee Reed,Journal of Business Ethics, Vol. 37, No. 3, pp. 249-268http://en.wikipedia.org/wiki/Haryanahttp://www.dnb.co.in/SMENCR2009/ClusterOverview.asphttp://ideas.repec.org/p/wiw/wiwrsa/ersa04p39.html#authorhttp://www2.druid.dk/conferences/viewpaper.php?id=1012&cf=10http://www.dnb.co.in/SME%20Awards/SME%20In%20India.asp

325www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780GENDER EQUALITY IN EDUCATIONN. SANTOSH RANGANATH*; DR. K. ATCHYUTA RAO**; DR. N. SRINIVAS***ABSTRACT*Faculty Member, Department of Commerce and Management Studies,Dr. B.R. Ambedkar University, Srikakulam, Andhra Pradesh – 532410.**Faculty Member, Department of Commerce and Management Studies,Dr. B.R. Ambedkar University, Srikakulam, Andhra Pradesh – 532410.***Faculty Member, Department of Education,Dr. B.R. Ambedkar University, Srikakulam, Andhra Pradesh – 532410.The right to education bridges the division of human rights into civil and political on the onehand, and economic, social and cultural, on the other hand. The right to education is a civiland political right since it is central to the full and effective realization of all human rightsand freedoms. In this respect, the right to education epitomizes the indivisibility andinterdependence of all human rights. Nevertheless, millions of children around the world stillfail to gain access to schooling, and even larger numbers among those who do enroll, leaveprematurely, dropping out before the skills of literacy and numeracy have been properlygained. Educational inequality is a major infringement of the rights of women and girls andan important barrier to social and economic development. The right to education is protectedcomprehensively under articles 13 and 14 of the International Covenant on Economic, Socialand Cultural Rights (ICESCR) which also enshrines a prohibition on discrimination based onsex, both in law and in fact. To promote gender equality and parity in education, states musttarget their efforts not only toward education itself, but also toward society‟s cultural andinstitutional framework. States should reduce the financial burdens of sending femalechildren to school, and should reform the education system so that it no longer creates orpermits the existence of separate standards and opportunities for females and males. Thispaper also discusses the ICT and e-commerce offer substantial possibilities to improve thelives of women (and their families) in developing countries. Gender equality is having theobjective to enhance women‟s participation in the digital economy and thus increase nationalcapacity and achieve greater economic development and growth.___________________________________________________________________________INTRODUCTION: RIGHT TO EDUCATIONEducation is both a human right in itself and an indispensable means of realizing otherhuman rights. As an empowerment right, education is the primary vehicle by whicheconomically and socially marginalized adults and children can lift themselves out of povertyand obtain the means to participate fully in their communities.The right to education bridges the division of human rights into civil and political onthe one hand, and economic, social and cultural, on the other hand. The right to education isa civil and political right since it is central to the full and effective realization of all humanrights and freedoms. In this respect, the right to education epitomizes the indivisibility andinterdependence of all human rights. Even the Human Rights, which is generally consideredto cover only civil and political rights issues, states that „no person shall be denied the right toeducation‟. The Committee on Economic, Social and Cultural Rights recognizes in its

326www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780General Comment that increasingly education is appreciated as one of the best financialinvestments states can make as it has a vital role in empowering women, safeguardingchildren from exploitative and hazardous labour and sexual exploitation, promoting humanrights and democracy, protecting the environment, and controlling population growth.Nevertheless, millions of children around the world still fail to gain access toschooling, and even larger numbers among those who do enroll, leave prematurely, droppingout before the skills of literacy and numeracy have been properly gained. A majority of suchchildren are girls. As a result, the scourge of illiteracy still affects more than adults, almosttwo-thirds of whom are women. The General Assembly reiterated the importance of literacyas a human right and an indispensable element for economic and social progress whileappealing to all governments to redouble efforts to achieve their own goals of education forall, by setting targets and timetables, where possible, including gender-specific educationtargets and programmes to combat the illiteracy of women and girls.Educational inequality is a major infringement of the rights of women and girls and animportant barrier to social and economic development. The global struggle for universaleducation is nearly 61 years old. It was recognized as a right in the 1948 UniversalDeclaration of Human Rights (UDHR), which states that “everybody has the right toeducation.” The UDHR also declared that elementary education should be free andcompulsory, and that the higher levels of education should be accessible to all on the basis ofmerit. This provision was followed up by the UNESCO Convention against Discriminationin Education, adopted in 1960, which placed the right to education in a binding treaty for thefirst time. Under article 4 of the UNESCO Convention the right to free and compulsoryeducation is guaranteed, and States parties “undertake … to formulate, develop and apply anational policy, which … will tend to promote equality of opportunity and of treatment in thematter of education”.The right to education is protected comprehensively under articles 13 and 14 of theInternational Covenant on Economic, Social and Cultural Rights (ICESCR) which alsoenshrines a prohibition on discrimination based on sex, both in law and in fact. The two mostrecent conventions – CEDAW in 1979 and the Convention on the Rights of the Child (CRCin 1990) – contain the most comprehensive set of legally enforceable commitmentsconcerning both rights to education and to gender equality. By mid-2003, some 173 countrieshad ratified CEDAW, whereas the CRC has been ratified by all the nations of the world withthe exception of Somalia and the United States.GENDER INEQUALITIES THROUGH OUT THE WORLDThere are very few places in the world where women are denied a formal right toeducation. However, as is already established, formal equality is inadequate to ensure andguarantee equality of rights between men and women. Even when the state provides girlswith access to education, gender discrimination can be reinforced by practices such as acurriculum which is inconsistent with the principles of gender equality, by arrangementswhich limit the benefits girls can obtain from the educational opportunities offered, and byunsafe or unfriendly environments which discourage girls‟ participation. True equality ineducation requires the development of specific and effective guarantees to ensure that femalestudents are provided with access to the same curricula and other educational and scholarshipopportunities as male students.

327www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780To promote gender equality and parity in education, states must target their efforts notonly toward education itself, but also toward society‟s cultural and institutional framework.For example, in many countries, parents do not expect their daughters to have careers outsidethe home. Consequently, girl-children are encouraged to leave school after completing only abasic or elementary education. In addition, if the benefits of schooling for boys far outweighthose for girls, economically disadvantaged parents will typically choose to send only themale to school.States should reduce the financial burdens of sending female children to school, andshould reform the education system so that it no longer creates or permits the existence ofseparate standards and opportunities for females and males. States parties have an obligationto eliminate gender-role stereotyping in and through the education system, and they mustclose the existing gap in education levels between men and women. States should createprogrammes which give women the opportunity to return to school after pregnancy, thoughthe UN Special Rapporteur on the Right to Education noted that the “frequent clash betweensocietal norms which pressurises girls into early pregnancy, and the legal norms which aim tokeep them in school makes this phenomenon difficult to tackle.”National governments and ministries of education should ensure that gender issuesform part of all teachers‟ education curriculum. It should also form part of the primary,secondary, and tertiary education as well as in-service training curriculum.GENDER, ICT AND DEVELOPMENTThe role of new information and communication technologies (ICT) and e-commercein driving the global economy is widely recognized: ICT and the Internet reach many people,have a wide geographical coverage and are efficient in terms of time and cost. They facilitateaccess to markets, commercial information, new processing technologies and knowledge. Inthe developing world, the use of ICT and e-commerce seems to be particularly attractive towomen owning small enterprises. These female entrepreneurs are now able to use ICT toidentify new business opportunities or communicate with potential clients.Aside from telephony services, women's handicrafts businesses could also bedeveloped using business-to-consumer (B2C) e-commerce. Several success stories of B2Cendeavours have been found in South Asia, Latin America, Africa and the Middle East in theareas of clothing, bakery, gifts and other handmade products. Using the Internet, women areable to tap into new markets while saving time and money otherwise spend on travelling orselling in the local markets. For small home-based businesses the Internet offers informationand networking opportunities that could make these endeavours profitable rather thanmarginal. The ability of women to earn income at home while raising a family – with thetechnology to communicate inexpensively with customers around the world, and handleaccounting and order processing online – is adding to the attraction of the Internet for womenbusiness owners.ICT and e-commerce offer substantial possibilities to improve the lives of women(and their families) in developing countries. Gender equality is having the objective toenhance women‟s participation in the digital economy and thus increase national capacity andachieve greater economic development and growth.

328www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780GENDER-RELATED PROBLEMS IN EDUCATIONThough we cannot speak of gender-related problems in education in terms of access,students‟ enrolment or performance in the Universities, there are still some areas wheregender balance should be encouraged, like the representation of girls and women in scienceand mathematics; and to ensure that those already in scientific and research careers find theircareers, prospects and rewards sufficiently satisfactory to keep them there. Gender (in)equalities in higher education and research has become an issue of growing policy concernsince the late 1990s. Statistics and research have shown that gender equality has not beenachieved in higher education quantitatively or qualitatively. This is so despite the fact thatwomen have made great gains in higher education during the last decades. In the beginning ofthe 21st Century, women account for more than half of graduates in higher education throughout the world.Despite this great potential for job creation and development, only those who canafford the new technologies, and have the skills to use them, will benefit, while the poor riskbeing marginalized. Given that women make up the large majority of the poor worldwide,any strategy to increase their participation in the digital economy would increase nationalcapacity and help raise the national standard of living. The large majority of women indeveloping countries are “employed” by the informal economy (street vendors or womenworking at home on, for example handicrafts and sewing). Reaching these women will be themajor challenge for policy makers trying to bridge the digital – and particularly the genderdigital – divide.Among the key barriers faced by women are access to education, skills and training,access to the technologies themselves (both hardware and connectivity) and other constraintssuch as those related to knowledge of foreign languages (i.e. access to Internet content) orlack of financial resources to acquire access.GENDER EQUALITY FOR THE ECONOMIC DEVELOPMENTThere have been many changes in India since the country gained its independencefrom Great Britain in 1947, the most impressive being the rise of the Indian economy. But notall facets of Indian life have enjoyed the same advancement; health, education and otherhuman development issues have not seen the growth that the economy has enjoyed. India willnot realize the full benefit of an improving economy until the lives of the Indian peopleimprove. How can a county become an economic superpower when its people remain amongthe worlds poorest?The inequalities that exist among region, social class and gender prevent the growthof the Indian economy from improving the lives of many everyday Indian people. Nowhere isinequality more evident than in the lives of Indian women, and likewise, there is no sectormore affected by the lack of improvement in social issues.The differences in the health, education and standards of behavior between the menand women of India, all contribute to the impairment of women‟s ability to improve theireconomic situation. The continued perception that women are not of value hinders women‟sability to fully participate in the economy. The economic discrimination that the women of

329www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780India suffer leads to a cycle of further discrimination in other areas and reinforces their lowstatus.The majority of women in India are doing tasks that are not recognized by Indiansociety as meaningful. Before the last census, women and children who worked familyowned land or were self-employed working in either their home or family enterprises, werenot considered employed. The majority of women work much longer hours then men, butmuch of their work is nurturing, and therefore not recognized as important. Even whenwomen are contributing earnings, culturally their work is thought of as connected to theirposition as nurturer and therefore is not recognized as productive. Many of these womenreport in surveys that they are “housewives,” even though they spend 14-16 hours a dayearning an income.Often, even when women are involved in income producing activities outside thehome, their work remains invisible due to their low status. In the agricultural field, much ofthe work women do is pre and post-production, such as weeding, livestock rearing, andprocessing; and because economic value is placed on the actual output, the work is not seenas important.Indian women are excluded from decision making from the time of their birth, inevery aspect of their lives. It is therefore not surprising that this tradition carries over fromthe home and community to the national level. All over South Asia, powerful women leadershave reached the highest levels of national government, but the vast majority of women are inpoor health, illiterate, and are invisible in the economic accounting system. Women holdimportant positions in major political parties of the region, but these powerful positions havenot necessarily produced positive results for the average woman living in this area of theworld.Changes in the way Indian society views women will come through women‟sincreased ability to participation in the economy, enhanced through education and legislation.The low social status of women is seen in the homes and communities of India, and isreflected in Indian society as a whole. Only when women are valued in their homes andcommunities will the lives of women in India improve, and when the lives of Indian womenimprove, those of their families will improve also. The change in thinking must begin in theminds of Indian women themselves. When women begin to see themselves as powerful,change will begin.When India makes improvements in human development issues like health, education,and gender equality, the majority of people in India will begin to realize the benefits of animproved economy. Imagine the growth that would be seen if every citizen in the countrywas given the dream, the chance, and the right, to fully participate in the economy. ThenIndia might truly become an economic superpower.

330www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780RECOMMENDATIONS ON GENDER EQUALITY IN EDUCATION"Education for all is important for three reasons. First, education is a right. Second,education enhances individual freedom. Third, education yields important developmentbenefits."To summarize the various types of instruments that indicate international commitmentto gender equality in education, those can divide in two categories: international treaties forratification by individual countries which gives them legal weight, and „political promises‟,developed by international consensus to be a further stimulus to promote „action‟.INTERNATIONAL TREATIESIts commitment to non-discrimination is affirmed. It commits states to economicmeasures for free primary education and financial support, educational and other forms ofsupport for families, and support for teachers. One of the three instruments to make up theInternational Bill of Human Rights, this international treaty has limited coverage of genderand education.POLITICAL PROMISESThe human rights of women and of the girl child are an inalienable, integral andindivisible part of universal human rights. As an agenda for action, the Platform seeks topromote and protect the full enjoyment of all human rights and the fundamental freedoms ofall women throughout their life cycle.Its goal is to narrow the gender gap in primary and secondary education by 2005 andto ensure that by 2015, all children complete primary schooling, with girls and boys havingequal access to all levels of education. This area of action aims to address the need to changebehaviour, attitudes, norms and values which define and influence gender roles in societythrough education, the media, arts, culture and science in particular. Eliminating prejudicesand stereotypes is paramount for the establishment of gender equality. In order to overcomestereotypes regarding gender roles in family and society, the following measures could beproposed:Gender mainstreaming is different from previous approaches to equal opportunities,which focused mainly on the implementation of specific measures in favour of women.Although measures to promote women‟s rights are important, they are not sufficient toovercome structural inequalities in economic, social, political and family life. Gendermainstreaming thus entail a fundamental transformation of the underlying paradigms of thesphere of education. It includes not only the activities of governments, but also those ofschools, colleges and education institutions, and, where appropriate, those of NGOs and theprivate sector as well. Gender mainstreaming has to be implemented in co-operation by allsocial actors involved in combating poverty and social exclusion in the fields of employment,social protection, justice, education, health, public finances, economic policy, etc.Updating curricula, new teaching methods, the development of types of institutions, anew educational organization according to market economy principles, etc. all these aspectscould be approached, taking into consideration the need for new definitions of the roles of

331www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780women and men in societies , of private and public partnerships between men and women, ofpower structures in societies, etc.CONCLUSIONSAchieving substantive gender equality in education entails tackling gender ideologiesthat constrain enjoyment of the full array of positive freedoms that are valued in a rights andcapabilities approach. This entails firstly putting women back into the picture as rightsbearersand not deliverers of development, and extending our interest in how women‟seducation impacts on others, to assessing how education impacts on women themselves.ICT and e-commerce offer substantial possibilities to improve the lives of women(and their families) in developing countries. While many examples exist of how women haveused the new technologies to improve their businesses, create new businesses or find newemployment opportunities, the large majority of women in developing countries are stillexcluded from the digital economy. Gender equality is having the objective to enhancewomen‟s participation in the digital economy and thus increase national capacity and achievegreater economic development and growth.REFERENCESBarro, Robert J., and Jong-Wha Lee (1994): Sources of Economic Growth, Carnegie-Rochester Conference on Public Policy, 40: 1-46.Berta – Esteve – Volast, (2007), “Gender discrimination and Growth: Theory and Evidencefrom India,” London, London School of Economics and Political Sciences.Kabeer, N (1999) 'From Feminist Insights to an Analytical Framework: An InstitutionalPerspective on Gender Inequality'Razavi, S (2003), 'Women's changing roles in the context of economic reform andglobalization'. Background paper for EFA Global Monitoring Report 2003/04Santosh Ranganath N., Kama Raju T. (2009), “Gender Development in India: Dimensionsand Strategies”, Management Trends, Vol. 6, No. 1 & 2, ISSN: 0973-9203, pp. 120-126Seguino, Stephanie. (2006). “Gender Equality and Economic Growth: A Cross-CountryAnalysis”, World\ Development, Vol. 28, No. 7, pp. 67-71.Singh, Ajit and Ann Zammit. (2007), “International Capital Flows: Identifying the GenderDimension”, World Development, Vol. 29, No. 7, pp 1249-1268.Sunden, Annika and B. Surette. (2008), “Gender Differences in the Allocation of Assets inRetirement Savings\ Plans”, American Economic Review, Vol. 88, No. 2, pp. 207-211.UNESCO, Gender and Education for All: The Leap to Equality- Summary Report (2003)(hereinafter referred to as UNESCO Summary Report) at p1, available athttp://www.efareport.unesco.org/

332www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780UNICEF Basic information and gender equality: http://www.unicef.org/girlseducation/index_statistics.htmlVelkoff, Victoria A. (1998). Women‟s Education in India. Report by the U.S. Dept. ofCommerce, Washington: GPO, http://www.census.gov/ipc/prod/wid-9801.pdfWilson, D (2003) Human Rights: Promoting gender equality in and through education.Background paper for EFA GMR 2003/4

333www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780AN ANALYTICAL STUDY ON THE MICRO FINANCEINSTITUTIONS’ REGULATORY NORMS FOR CAPITALISATION,CAPITAL ADEQUACY AND AUDIT NEEDS.ABSTRACTMRS. VIJAYALAKSHMI. S**Associate Professor, Niam- Institute of Applied Management,Kanakapura Road, Jayanagar 7 th BlockBangalore, India.1) Discusses the statutory requirements and the prudential norms, capitalization issues anddisclosure requirements that must be satisfied by each type of entity, engaged inmicrofinance service delivery.2) Identifies the unique features of MFIs with respect to the nature of the transactions andthe challenges in the audit and provisioning of loans of those entities and the riskinvolved in the conduct of audit.KEYWORDS: Capitalization, Cash Reserve Ratio (CRR), Loan portfolio & loan lossreserve, Micro Finance Institutions, Provisioning of loans, Statutory Liquidity Ratio (SLR).___________________________________________________________________________INTRODUCTIONIndia seems to be a very peculiar case when it comes to microfinance regulation andsupervision. It is not only its sheer size that makes it very different from all others countries.The involvement of formal public sector banks is also much stronger than anywhere else.This means that a relatively (and increasingly) large share of the microfinance sector is underthe purview of the central bank, the Reserve Bank of India (RBI). 1Since microfinance was taken up mainly as a development initiative rather than as acommercial activity, the voluntary development agencies (or NGOs) who were registeredeither as societies, trusts or Section 25 companies, did not think of looking at alternativeinstitutional forms for providing these services – though some cooperatives and onecooperative bank were also engaged specifically in microfinance. As the scale of operationsof microfinance activities started growing and, along with that, the desirability of undertakingsuch activity on a for-profit basis started coming into focus, the larger institutions started tofeel the need for a transformation in their legal structure. As a result, MFIs in India can nowbe found in the form of NBFCs as well.1 Emerging Scenarios for Microfinance Regulation in India, Eschborn 2004

334www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780STATUTORY REQUIREMENTS 2This sub-section discusses the statutory requirements for different types of legal entitiesengaged in microfinance service delivery. It details the capitalisation issues and disclosurerequirements that need to be satisfied by each type of entity.While the regulations on cooperative societies and Section 25 companies do not have anysuch stipulation, RBI as the regulator for NBFCs and cooperative banks has fixed strictcapital adequacy norms for such institutions under Section 45 JA of the RBI Act. Thus,NBFCs are required to maintain a minimum capital adequacy ratio of 12 per cent, consistingof Tier I and Tier II capital 3 where Tier II capital should not be more than 100 per cent ofTier I. This minimum capital adequacy norm holds for cooperative banks as well.The Companies Act provides the regulatory platform for the equity capital holding of NBFCsand Section 25 companies. At the time of their registration as companies such entities need todeclare their authorised and paid-up share capital. If these entities wantto alter their authorised share capital, they need to seek the approval of the Registrar ofCompanies. The Companies Act, also specifies that companies must state their shareholdingposition in annual reports. Similarly, cooperatives must also declare their authorised sharecapital to the Registrar of Cooperative Societies and get approval for any alteration in the sizeof authorised share capital.LEVERAGE AND INSTITUTIONAL DEBTThere are no obvious regulatory obstacles to any of the legal entities involved inmicrofinance, leveraging their market position to obtain debt finance from domestic capitalmarkets. Societies need to incorporate the power to borrow from commercial sourcesexplicitly in their Memorandums of Association along with the specific inclusion of provisionof microfinance services in their objects of association.The legal framework for societies, trusts and cooperatives does not have any stipulations onleverage capacity. The ability to leverage the institution‟s capitalisation depends largely on2 Existing Legal and Regulatory Framework for the Microfinance Institutions in India:Challenges and Implications, Sa-Dhan Microfinance Resource Centre, 20063 Tier I and Tier II capitals form part of the net worth of the organisation. Tier I capital means theowned fund (sum total of paid-up equity capital, preference shares which are compulsorily convertibleinto equity, free reserves, balance in share premium account, capital reserve representing surplusarising out of sale proceeds of asset, excluding reserves created by revaluation of assets andaccumulated surplus or deficit) reduced by investment in shares of other NBFCs and in shares,debentures, bonds, outstanding loans and advances including hire purchase and lease finance made toand deposits with subsidiaries and companies in the same group exceeding, in aggregate, ten percentof owned fund. Tier II capital includes preference shares other than those which are compulsorilyconvertible into equity; revaluation reserves at discounted rate of 55%; general provisions and lossreserves to the extent these are not attributable to actual diminution in value or identifiable potentialloss in any specific asset and are available to meet unexpected losses, to the extent of one-and-onefourthper cent of risk weighted assets; hybrid debt-capital instruments and subordinated debt, to theextent the aggregate does not exceed Tier I capital.

335www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780the appetite of the lender for risk and also on the creditworthiness of the institution decidedeither by an independent or in-house appraiser of the lending institution.Given the quasi-charitable nature of microfinance, the financial institutions engaged ininvesting in MFIs do tend to have a somewhat higher appetite for risk in the MFI case thanthey do for normal commercial lending. However, since NBFCs and cooperative banks havecapital adequacy norms decided by RBI, these effectively delimit the leverage standards forsuch institutions since the deployment of the borrowed funds would increase the volume ofrisk weighted assets of the MFI.EXTERNAL BORROWINGUntil very recently the Government of India regulations did not allow External CommercialBorrowing for financial sector institutions. The rationale provided by RBI for this were:a. Excess liquidity in the existing banking system and the consequent need to encourageIndian institutions to diversify their channels for reducing that liquidity.b. The inappropriateness of intermediation by Indian FIs between the end user and the primelender. However, this argument only works if the end user is a large borrower and does notwork for the end users of microfinance loans.However in the Finance Bill for the year 2005-06, the microfinance sector has been allowedaccess to ECB. As per the notification issued by RBI vide RBI/2004-05/ 434 A.P. (DIRSeries) Circular No. 40 dated April 25, 2005 the NGOs engaged in microfinance activities areallowed to access ECB provided they-(i) should have a satisfactory borrowing relationship for at least three years with a scheduledcommercial bank authorised to deal in foreign exchange and(ii) would require a certificate of due diligence on „fit and proper‟ status of the board/committee of management of the borrowing entity from the designated AD.This amount is currently capped under US$ 5 million for each MFI during a year. Howeverthe term used in the notification, NGO, has never been defined properly. The interpretationand understanding of the term might create some problem unless RBI comes out with anotification defining it clearly.GRANTS AND SUBSIDISED ON-LENDING FUNDSIn order to obtain grants from foreign sources, institutions must be registered with theMinistry of Home Affairs under the Foreign Contribution (Regulation) Act, 1976. Similarly,following the notification issued by RBI on the issue of ECB for NGOs, its possible fordifferent types of entities to access subsidised funds for on-lending to their clients, providedthey fulfill the necessary conditions, as laid down in the notification, to the extent of US$ 5million each year.The tax implications for different types of entities are different for grant incomes. UnderSection 11 of the Income Tax Act, all grant funds meant for the corpus fund of religious andcharitable societies are exempted from the taxation. Since microfinance is largely recognised

336www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780as a charitable activity, the entire grant meant to support the corpus fund of the society isexempt from taxation.As for-profit entities the latter types of institutions must treat grants received as income andpay tax on this income at normal rates. In the case of private trusts where taxation isapplicable, the value of the subsidised lending or the in-kind donation is taken as income forthe calculation of tax.FOREIGN DIRECT INVESTMENTThe context of foreign direct investment is applicable only to Section 25 companies andNBFCs. Section 25 companies are allowed to obtain FDI as equity. However, on account oftheir not-for-profit constitution that prohibits the distribution of dividends, they are not anattractive option for such investment. NBFCs can obtain foreign capital in the form of equitysubject to approval by the Foreign Investment Promotion Board (FIPB). The minimumcapital requirement for such FDI is US$ 0.5 million when the external equity is limited to lessthan 51 per cent of the total equity.CAPITAL MARKETSOwing to their structure and the charitable nature of their objectives, societies and trusts arenot an option for the capital market. Though there is nothing in the legislation that prohibitsthem from accessing capital markets, the lack of an ownership structure is the majorimpediment for capital markets to take an interest in financing such institutions. Cooperativesocieties and cooperative banks, with their distinctly for-profit constitution can, theoretically,obtain funds from capital markets.NBFCs can also access capital markets subject to their adhering to the prudential andreporting norms of RBI. Both types of institutions need to report their capital markettransactions periodically to the central bank on prescribed formats. In order to access equityfunds from capital markets, NBFCs need to be listed with a stock exchange. They would needto offer an issue.The issuer company makes detailed disclosures as per DIP (Disclosure and InvestorProtection) guidelines in its offer document and offers it for subscription. The Securities andExchange Board of India (SEBI) – which regulates the functioning of capital markets – haslaid down eligibility norms for entities accessing the primary market through public issues.There is no eligibility norm for a listed company making a rights issue as it is an offer madeto the existing shareholders who are expected to know their company. The main entry normsfor companies making a public issue are summarised as under:Entry Norm I: The company shall meet the following requirements:a. Net Tangible Assets of at least Rs 3 crore for three full years;b. Distributable profits in at least three years;c. Net worth of at least Rs 1 crore in three years;

337www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780d. If change in name, at least 50 per cent revenue for the preceding one year should be fromthe new activity; ande. The issue size does not exceed five times the pre- issue net worth.ENTRY NORM II (EN II)a. Issue shall be through the book-building route, with at least 50 per cent to be allotted to theQualified Institutional Buyers (QIBs), which is mandatory.b. The minimum post-issue face value capital shall be Rs10 crore or there shall be acompulsory market-making for at least two years.ENTRY NORM III (EN III)a. The “project” is appraised and participated in to the extent of 15 per cent by FIs/ScheduledCommercial Banks of which at least 10 per cent comes from the appraiser(s).b. The minimum post-issue face value capital shall be Rs 10 crore or there shall be acompulsory market making for at least two years.c. In addition to satisfying the aforesaid eligibility norms, the company shall also satisfy thecriteria of having at least 1,000 prospective allottees in its issue.Any company making a public issue or a listed company making a rights issue of value ofmore than Rs 50 lakh is required to file a draft offer document with SEBI for its observations.The company can proceed further on the issue only after getting observations from SEBI. Thevalidity period of SEBI‟s observation letter is three months only, i.e. the company has to openits issue within a three-month period. (For further details on this subject please refer to thelatest SEBI manual).DISCLOSURESAll the legal entities involved in the business of microfinance are subject to some form ofdisclosure:a. Societies and trusts are subject to the annual disclosure of accounts to their registrars;b. Cooperative societies report to the Registrar of Cooperatives on prescribed formats;c. Cooperative Banks, like NBFCs, also need to make several disclosures on such areas as theStatutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR), details of public deposits,asset-liability management, income recognition and asset classification to RBI; andd. For NBFCs – especially those accepting public deposits – RBI‟s regulations on disclosureare equally strict for NBFCs. These companies must make periodic disclosures on parameterslike SLR, public deposits and access to capital markets (if the deposit is more than Rs50crore), asset-liability management, asset classification and income recognition.

338www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780AUDIT OF MFISTo understand the audit needs and the unique challenges for conducting an audit in MFIs,first we need to understand the features which makes MFIs different from the other forms oforganizations which undergo the traditional audit.CHARACTERISTICS OF MFI OPERATIONS 4In meeting the needs of their clients, MFIs generally give out quite small loans, and requiresmall regular repayments. There are therefore huge volumes of tiny transactions to becaptured and reported. The key to the success of MFIs lies in their innovative lendingmethodologies, as shown in the table 1 below:TABLE 1:AchievementLow transaction costsMethodologyLow level approvalLittle segregation of dutiesHigh outreachDecentralisationCashSpeed of processingSimple standardized proceduresFew documentsUnsecured loansCharacter based assessmentGroup lending and cross guaranteesHigh repayment ratesIncentive of access to future creditGood loan officer relationshipStart small, graduated loan sizesTraining4 MFI Audit course handbook, DFID, Financial sector Deepening project, Uganda.

339www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Tough on delinquencyPeer pressureSource: MFI Audit course handbook, DFID, Financial sector deepening project, UgandaINDIVIDUAL VS. GROUP LENDINGOne of the key characteristic of MFI methodology is group lending. The following tablecompares individual and group lending.TABLE 2Individual LendingGroup LendingCollateral Loans guaranteed bycollateralMutually guaranteed withother borrowersParticipantScreeningPotential clients screenedbycredit checksPotential clients screenedby their peersLoan AnalysisLoan amount based onthorough viability analysisLittle or no analysis ofthe business, except bypeersLoan FlexibilityTailored to needs of theFollows pre-set gradualBusinessgrowth curveLoan Size andTermlarge sizes, medium tolongtermsGenerally short andamounts small

www.zenithresearch.org.in340ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Staff-ClientRelationshipsClose,relationshipswith clientslong-termMore distant relationshipwith large numbers ofclientsCost per Client High – lower volume Low – high volumeCost per Loan Low – larger size High – small sizeSource: MFI Audit course handbook, DFID, Financial sector deepening project, UgandaSIGNIFICANT CHALLENGESThere are many challenges facing the industry, but some of the most acute relate toaccounting, reporting and auditing:ACCOUNTING – Inconsistency in accounting policies, lack of integration between loantracking and accounting software.REPORTING – Financial Statements often contain insufficient information to assessportfolio performance or financial sustainability.AUDITING – Auditors find standard procedures are ineffective, managers and donors findaudit reports are not helpfulMFI AUDIT FEATURESMFI audits have very high inherent control risks. Auditors who have experience in thebanking, NGO or business sectors, find that MFIs are actually quite different to any of them.They are certainly complex.INTERNAL CONTROL RISKSMFI managers have social work background, not financial servicesGood deal of physical cash transfersLimited segregation of dutiesDecentralisation of authorityInadequate information systems

www.zenithresearch.org.in341ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Inexperienced accountantsUnlike traditional banking practices Simple loan documentationSymbolic value of guaranteesUndocumented financial analysis of client‟s businessApprovals at low levelLack of segregation of duties between approval and collectionUnlike other NGOs Financial self sufficiency is a key factor in MFIs being able tohave a sustainable effect on poverty alleviation.Disbursement of grants cannot be treated as an expenseNeed to consider more business like aspects such as product costing andsophisticated MISUnlike most business or „for-profit‟ institutionsWeak governance structuresIneffective external supervisionNon-performance driven financial statementsUnique equity structuresFinancial policies do not conform to GAAPKEY ACCOUNT BALANCESCash and equivalents are important because cash transactions comprise the major part of anMFI with its consequential inherent risks (fraud?) and we should always keep that in mindduring all stages of our audit.Loan portfolio & loan loss reserve are the most important account balances as they includemost of the institution‟s assets and are the source of the most serious risk of misstatement.Savings and deposits are increasingly becoming an important account balance in some MFIs.Capital accounts (fund balance) require special attention as most MFIs receive grant fundfrom donors.Creditors and accruals are important because MFIs are exposed / susceptible to possibleunderstatement in these accounts.Revenues and expenses require attention because MFIs are often inconsistent in theirtreatment of them.

342www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Risk assessmentAudit risk is the risk of issuing an incorrect opinion on whether the financial statementspresent a true and fair view. Audit risk is a function of 4 other types of risk that make up therisk equation:{AR = IR x CR x DR x ER}EQUATION NO:1INHERENT: risk of a material error arising in the financial statements. The auditormeasures this risk (both entity and account specific risks), usually via use of standardquestionnaires.CONTROL: risk of a material error that has arisen not being found by the client‟s owninternal control systems. The auditor measures this risk by assessing the adequacy of controlprocedures and testing to see effectiveness.DETECTION: risk that the auditor fails to detect a material error that has arisen. The auditormanipulates sample sizes to give low enough detection risk given the significance of the otherrisks.ETHICAL: risk that a material identified error is not reported or disclosed. The auditorminimizes this by removing threats to objectivity, independence and integrity.PROVISIONING METHODS – SMALL MFISSmall MFI‟s may simply provision a fixed percentage of its portfolio based on its overall lossexperience in previous years. Sometimes a percentage of each loan is provisioned at the timeof its disbursement. The auditor must look at how these loss rates have been determined andjudge their adequacy (MFIs should certainly be encouraged to perform an aging analysis).Provisioning also has to take into account the present performance of the portfolio. Ifdelinquency levels are higher today, provisions should be set at a level that is higher than thehistorical loss rate. The same would be true if there are other factors (flood, draught) that willaffect loan recovery. As many MFI‟s do not write-off loans aggressively or consistently, theprovision percentage should be related not to accounting write-offs, but to the real portion ofprior loans that have become unrecoverable as shown in the loan MIS.PROVISIONING METHODS – LARGER MFISLarge MFIs, or those that are preparing for massive growth, should consider the morescientific approach that is customary in the banking industry. Under this approach the loanportfolio is segmented into aging categories-that is, according to how many days late themost recent payment is- and then assigning a different percentage to be provisioned for eachcategory, depending on the perceived level of risk. Loans should be separated out from the“current” category as soon as they are even one day late. An illustrative aging schedule, withprovisioning percentages for each aging category is shown below:

343www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 3PROVISIONING % ON PORTFOLIO AGEAge Unrescheduled Rescheduled/RefinancedCurrent 0 01-30 days late 10 2031-90 days late 25 5091-180 days 50 100> 180 days late 100 100Source: MFI Audit course handbook, DFID, Financial sector deepening project, UgandaCONCLUSIONThe direct anticipated benefits of regulation include: increased access to capital; ability toprovide a broad product mix, especially savings and payments; and improved credibility. Inaddition the MFIs also cited increased profitability, better general understanding of MFIs andtheir clients, and the ability to be more innovative in product offerings. The direct costs, onthe other hand, include adding and training staff, modifying or replacing MIS, andsupervisory fees. Indirect costs may include decreased flexibility and increased workload ofstaff in dealing with examiners. Though MFIs audit also follows the same procedures ofAudit planning, Gathering evidence, Evaluating evidence, Review and completion like anyother organization, it is unique and needs a clearer and broader audit rules laid down in Indiain accordance with the International Accounting Practices.For prudential supervision of MFI banks, regulation by RBI is proposed. For non prudentialsupervision for the sector as a whole, an independent oversight board (OB) reporting to theRBI is suggested. The members of the OB should have the requisite expertise as a group andaccess to public and private sector experts. This can be accomplished through appropriateadvisory committees. The creation of regulatory capacity for prudential and non prudentialregulation of the Indian microfinance sector will be a major challenge but is likely to be aworthwhile investment for the country as in the long run it could result in large scale financialinclusion and financial deepening.REFERENCES1. Eschborn 2004, Emerging Scenarios for Microfinance Regulation in India.2. MFI Audit course handbook, DFID, Financial sector Deepening project, Uganda

344www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57803. Sa-Dhan Microfinance Resource Centre, 2006, Existing Legal and RegulatoryFramework for the Microfinance Institutions in India.4. Sa-Dhan Microfinance Resource Centre, 2006, Challenges and Implications.5. www.nabard.org

345www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780SENSORY AND NUTRITIONAL CHARACTERISTICS OF ICELOLLYWITH CARROT FLAVOURABSTRACTSTUTI AGRAWAL*; RANU PRASAD***Ph.D Scholar, Halina School of Home Science (Foods and Nutrition),SHIATS, Allahabad.**Professor, Halina School of Home Science (Foods and nutrition),SHIATS, Allahabad.Carrots are nutritional heroes; they store a goldmine of nutrients. They are excellent source of vitaminB and C as well as calcium pectate along with potassium, vitamin B6, copper, folic acid andmagnesium. The high level of carotene is very important in carrots. An ice lolly is a frozen waterdessert on a stick that is coloured and flavoured. It is made by freezing coloured, flavoured wateraround a stick. Fruit juice can also be used either by itself or in a mixture with water and otheringredients. The experiment was replicated for five times and the data obtained during investigationwas statistically analyzed by using Analysis of variance (ANOVA two way classifications) andcritical difference (CD) technique. Sensory evaluation of the prepared carrot ice lolly was carried outusing the nine point hedonic scale. The protein, ash, moisture, total carotene were determined andtotal carbohydrate was calculated by difference. Carrot juice was mixed in water in the percentage of10, 20, 30, 40 and 50 and served as T 1 , T 2, T 3, T 4 and T 5 respectively. Carrot juice in the percentage ofT 3 (30%) was found to be best in terms of flavour and taste as well as T 5 (50%) was found to be bestin terms of overall acceptability results. The total carotene content was found more in T 5 . Thedeveloped product can therefore be helpful from the therapeutic point of view for the people sufferingfrom the disease like vitamin A deficiency disease, cardiovascular disease, anaemia, cancer, reducecholesterol, eye problems, indigestion etc.KEYWORDS: Carrot, Ice lolly, benefits of carrot, Daucus carota L., icecream.___________________________________________________________________________INTRODUCTIONCarrot (Daucus carota L.) is a popular root vegetable, which is highly nutritious. Carrots arenutritional heroes; they store a gold mine of nutrients. No other vegetable or fruits contain assuch as carotene in carrots, which the body converts to vitamin A. This is truly versatilevegetable and an excellent source of vitamin B and C as well as calcium pectate, an extraordinary pectine fibre that has been found to have cholesterol lowering properties. The carrotis an herbaceous plant containing about 87 percent water, rich in minerals salts and vitamins.They are rich in antioxidants beta-carotene, alpha-carotene, phyto chemicals and glutathione,which are also considered protecting as well as nourishing the skin.(PFA, 1955) An ice pop is a frozen water dessert on a stick that is colored andflavoured. It is made by freezing coloured flavoured water around a stick. Fruit juice can alsoused, either by itself or in a mixture with water and other ingredients. Once solid, the stick isthen used as a bundle to hold the ice pop. In Ireland the tern “ice pop” is used, but it isusually called an ice lolly.“Ice lollies or edible ices” mean the frozen ice produce which may contain sugar,syrup, fruit, juices, cocoa, citric acid permitted flavours and colours. It may also contain

www.zenithresearch.org.in346ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780permitted stabilizers and/or emulsifiers not exceeding 0.5 percent by weight. It shall notcontain any artificial sweetener.OBJECTIVES1. To assess the nutritional characteristics of carrot ice lolly2. To evaluate the organoleptic quality of carrot ice lollyMATERIALS AND METHODSThe experimental work was carried out in the research laboratory of department ofDairy Technology and Home Science AAIDU Allahabad.METHODSCollection of ingredientsPreparation of experimentOrganoleptic evaluationNutritional analysisStatistical analysisCOLLECTION OF INGREDIENTSCarrot, sugar was purchased from local market of Allahabad. Stabilizer, flavour,colour was collected from student‟s training Dairy and Home Science department AllahabadAgricultural Institute-Deemed University, Allahabad.PREPRATION OF EXPERIMENT:Carrot was blend in the mixer grinder with the addition of water and make a carrotjuice. Carrot juice in the ratio of 10 percent, 20 percent, 30 percent, 40 percent and 50 percentalong with 20 percent sugar and represented as T 1, T 2 , T 3, T 4 and T 5 . This was named as“carrot ice lolly”.

347www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FLOW DIAGRAM FOR CARROT ICE LOLLYReceiving of water↓↓ ↓ ↓ ↓ ↓Addition of Addition of Addition of Addition ofAddition of10% carrot 20% carrot 30%carrot 40% carrot 50% carrotjuice juice juice juice juice↓Pre heating 62 o to 65 o↓Addition of sugar and stablizer(Sugar 20% and stabilizer 0.3%)↓Filtration↓Heating and Holding (85 o c for 5min)↓Cooling↓Addition of colour and flavour↓Filling in mould↓Freezing (-10 to -15 o c) using brine solution↓Storage

www.zenithresearch.org.in348ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780NUTRITIONAL ANALYSISDetermination of moisture percentageDetermination of ash percentageDetermination of Protein percentageDetermination of carbohydrate percentageDetermination of total carotene percentageORGANOLAPTIC EVALUATION OF CARROT ICE LOLLYA panel of five judges did sensory evaluation of carrot ice lolly by using a score cardbased on the 9 point hedonic scale. Scores were allocated for various parameters. The samplewere placed before the judges with sample codes- T 1 , T 2 , T 3 , T 4 and T 5 .T 1 – Carrot ice lolly by using 10 percent carrot juice.T 2 – Carrot ice lolly by using 20 percent carrot juice.T 3 – Carrot ice lolly by using 30 percent carrot juice.T 4 – Carrot ice lolly by using 40 percent carrot juice.T 5 -- Carrot ice lolly by using 50 percent carrot juice.Total number of replication – 5Total number of treatments – 5Total number of trials – 25STATISTICAL ANALYSISThe data obtained for various parameters were analyzed statistically using Analysis ofvariance ANOVA (Two way classifications) and critical difference techniques.APPENDIX-BFormula used for statistical analysisAnalysis of variance: G= T 1 +T 2 +T 3 ….. +Tn= R 1 +R 2 +R 3……. +Rn1. Correction factor (C.F.) = G 2 /rt2. Treatment S.S. = ∑Ti 2 _ C.F.r

349www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57803. Replication S.S. = ∑Rj 2 _C.F.4. Total S.S. = ∑∑Xij 2 - C.F.t5. Error S.S. = Total S.S. - S.S. due to treatments – S.S. due to replicationsCritical difference (CD):G= Grand totalt= Treatmentr= ReplicationS.S.= Sum of squaresWhere,S.E. = √2×EMSS/rC.D. = S.E. × t (5%) on error d.f.S.E. = Standard errorE.M.S.S. = Error mean sum of squaresSKELETON OF ANOVA TABLE FOR ORGANOLEPTIC CHARACTERISTICS OFPRODUCTSSources ofvariationd.f. S.S. M.S.S. F cal.F tab(5%)ResultDue totreatmentsr-1 S.S. TrS.S. Tr/r-1=MSS TrM.S.S. Tr./E.M.S.S.=FDue toreplicationt-1 R.S.S.R.S.S./t-1= MRSSM.R.S.S./E.M.S.S.=FDue to error(t-1)(r-1)E.S.S.E.S.S./(t-1)(r-1)=

350www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780EMSSTotal S.S. rt-1 T.S.S.RESULTS AND DISCUSSIONMOISTUREIt is evident from the table 4.1 and fig. 4.1 that the highest moisture percentage was 83.12 inT 5 followed by T 4 (82.82), T 3 (82.51) and T 2 (82.16). The lowest total moisture content of81.69 percent was recorded for T 1 .TABLE 4.1 MOISTURE PERCENTAGE OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 82.25 82.15 80.05 82 822. 82.2 82.4 83 81.2 823. 83.4 82.10 84.05 82 814. 84.1 85 83 81 815. 85 84 84 81.1 81.5Total 408.45 410.8 412.55 414.1 415.6Average 81.69 82.16 82.51 82.82 83.12Range 80.05-82.25 81.2-83.0 81-84 81-85 81.1-85.0

Average moisturepercentagewww.zenithresearch.org.in351ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578083.58382.58281.58180.583.1282.8282.5182.1681.69T1 T2 T3 T4 T5TreatmentsFIG. 4.1 MOISTURE PERCENTAGE OF CARROT ICE LOLLYTABLE 4.1.1 ANALYSIS OF VARIANCE OF MOISTURE PERCENTAGE OFCARROT ICE LOLLYSource ofvarianced.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentsDue toreplicationDue toerror4 6.252 1.563 0.987 3.26 NS4 16.824 4.206 2.65612 19.004 1.583Total S.S. 24 42.08NS = Non-significantANOVA table 4.1.1 shows that the calculated value of F at 5% level (0.987) was less than thetable value of F i.e. 3.26. Therefore treatments had non-significant influence on thepercentage of moisture in carrot ice lolly.

Average ashpercentagewww.zenithresearch.org.in352ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ASHIt is evident from the table 4.2 and fig.4.2 that the highest ash percentage was 0.656 in T 5followed by T 4 (0.58), T 3 (0.352), T 2 (0.284). The lowest total ash content of 0.13 percentwas recorded for T 1 .TABLE 4.2 ASH PERCENTAGE OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 0.17 0.34 0.42 0.7 0.742. 0.16 0.26 0.38 0.64 0.663. 0.12 0.30 0.36 0.6 0.684. 0.10 0.28 0.30 0.56 0.625. 0.10 0.24 0.30 0.40 0.58Total 0.65 1.42 1.76 2.9 3.28Average 0.13 0.284 0.352 0.58 0.656Range 0.10-0.17 0.24-0.34 0.30-0.42 0.4-0.7 0.58-0.740.70.60.580.650.50.40.30.20.130.280.350.10T1 T2 T3 T4 T5TreatmentsFIG. 4.2 ASH PERCENTAGE OF CARROT ICE LOLLY

353www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4.2.1 ANALYSIS OF VARIANCE OF ASH PERCENTAGE OF CARROT ICELOLLYSourcevarianceofd.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentsDue toreplication4 0.936 0.234 0.075 3.26 NS4 0.066 0.016 5.19Due to error 12 0.037 3.08Total S.S. 24 1.039NS = Non significantANOVA table 4.2.1 shows that the calculated value of F at 5% level (0.075) was less than thetable value of F i.e. 3.26. Therefore treatments had non significant influence on thepercentage of ash in carrot ice lolly.PROTEINIt is evident from the table 4.3 and fig. 4.3 that the highest protein percentage was 0.94 in T 5followed by T 4 (0.93), T 3 (0.83), T 2 (0.73). The lowest total protein content of 0.63 percentwas recorded for T 1 .TABLE 4.3 PROTEIN PERCENTAGE OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 0.68 0.75 0.84 0.91 0.972. 0.65 0.73 0.85 0.93 0.923. 0.61 0.77 0.87 0.95 0.944. 0.60 0.72 0.82 0.97 0.965. 0.62 0.70 0.81 0.90 0.92Total 3.16 3.67 4.19 4.66 4.71

Average protein percentagewww.zenithresearch.org.in354ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Average 0.632 0.73 0.83 0.93 0.94Range 0.62-0.68 0.70-0.77 0.81-0.87 0.90-0.97 0.92-0.9710.90.80.70.60.50.40.30.20.100.93 0.940.830.730.63T1 T2 T3 T4 T5TreatmentsFIG. 4.3 PROTEIN PERCENTAGE OF CARROT ICE LOLLYTABLE 4.3.1 ANALYSIS OF VARIANCE OF PROTEIN PERCENTAGE OFCARROT ICE LOLLYSourcevarianceofd.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentsDue toreplication4 0.36 0.09 0.5 3.26 NS4 0 0 0Due to error 12 2.23 0.18Total S.S. 24 2.59NS = Non-significantANOVA table 4.3.1 shows that the calculated value for treatments as the 0.5 against the tablevalue of „F‟ at 5% level of probability influence. Therefore treatments had no significantinfluence on the percentage of protein in carrot ice lolly.

Average total carbohydratecontenteewww.zenithresearch.org.in355ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TOTAL CARBOHYDRATEIt is evident from the table 4.4 and fig. 4.4 that the highest total carbohydrate percentage was17.54 in T 1 followed by T 2 (16.82), T 3 (16.30), T 4 (15.66). The lowest total carbohydratecontent of 15.28 percent was recorded for T 5 .TABLE 4.2 TOTAL CARBOHYDRATE CONTENT OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 16.9 16.71 15.34 14.29 13.292. 17.04 16.61 16.67 13.43 14.423. 19.22 15.93 14.72 15.45 14.384. 17.3 17.8 16.88 17.47 17.325. 17.28 17.06 17.89 17.7 17.0Total 87.74 84.11 81.5 78.34 76.41Average 17.54 16.82 16.3 15.66 15.28Range 16.9-19.22 15.93-17.8 14.72-17.89 13.43-17.7 13.29-17.321817.51716.51615.51514.51417.5416.8216.315.6615.28T1 T2 T3 T4 T5TreatmentsFIG. 4.4 TOTAL CARBOHYDRATE CONTENT OF CARROT ICE LOLLY

356www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4.4 ANALYSIS OF VARIANCE OF TOTAL CARBOHYDRATE CONTENTOF CARROT ICE LOLLYSourcevarianceofd.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentsDue toreplication4 16.31 4.07 5.15 3.26 S4 19.24 4.81 6.08Dueerrorto12 9.49 0.79Total S.S. 24 45.04S = Significant, (P ≤ 0.05)ANOVA table 4.4.1 shows that the calculated value of „F‟ at 5 percent level of probabilitywas higher than the table value of „F‟. Therefore treatment had significant difference forcarbohydrate content by using different ratio of carrot juice.The significant difference thus obtained was further analyzed statistically by comparingthe means of two treatments against the critical difference value. The results of C.D. arepresented in table 4.4.2.TABLE 4.4.2 COMPARISON OF TOTAL CARBOHYDRATE CONTENT OFCARROT ICE LOLLY AGAINST CRITICAL DIFFERENCETreatmentMean ValueT 1 T 2 T 3 T 4 T 50.721.241.882.26T 1NSSSS0.521.161.54T 2NSNSS0.641.02T 3NSNS

357www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780T 40.38NST 5CD = 1.22, S = Significant (P≤0.05), NS = Non-significantOn comparing the total carbohydrate content of carrot ice lolly from different treatmentsusing critical difference in table 4.4.2 the variations in total carbohydrate content of carrot icelolly can be seen as follows:-The difference in the mean value of T 1 and T 2 0.72 was less than C.D., 1.22 therefore, thedifference was non-significant.The difference in the mean value of T 1 and T 3 1.24 was higher than C.D., 1.22 therefore, thedifference was significant.The difference in the mean value of T 1 and T 4 1.88 was higher than C.D., 1.22 therefore, thedifference was significant.The difference in the mean value of T 1 and T 5 2.26 was higher than C.D., 1.22 therefore, thedifference was significant.The difference in the mean value of T 2 and T 3 0.52 was less than C.D., 1.22 therefore, thedifference was non-significant.The difference in the mean value of T 2 and T 4 1.16 was less than C.D., 1.22 therefore, thedifference was non-significant.The difference in the mean value of T 2 and T 5 1.54 was higher than C.D., 1.22 therefore, thedifference was significant.The difference in the mean value of T 3 and T 4 0.64 was less than C.D., 1.22 therefore, thedifference was non-significant.The difference in the mean value of T 3 and T 5 1.02 was less than C.D., 1.22 therefore, thedifference was non-significant.The difference in the mean value of T 4 and T 5 0.38 was less than C.D., 1.22 therefore, thedifference was non-significant.It is therefore concluded that the average total carbohydrate content of ice lolly differedsignificantly between T 1 – T 3 , T 1 – T 4 , T 1 - T 5 and T 2 –T 5 treatment combinations, which maybe ascribed to different ratio of carrot juice in carrot ice lolly, while there is no significantdifference among rest of the treatment combinations

Average total carotene(ug/100ml) contentwww.zenithresearch.org.in358ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TOTAL CAROTENEIt is evident from the table 4.5 and fig.4.5 that the highest total carotene content (µg/100ml)was 304.6 in T 5 followed by T 4 (262), T 3 (242.4), T 2 (217.2). The lowest total carotenecontent of 189.4 percent was recorded for T 1 .TABLE 4.5 TOTAL CAROTENE CONTENT (µG/100ML) OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 189 218 240 253 3082. 191 215 242 261 3043. 187 218 245 274 3034. 188 219 241 256 3015. 192 216 244 266 307Total 947 1086 1212 1310 1523Average 189.4 217.2 242.4 262 304.6Range 187-192 215-219 240-245 253-274 301-308350300250200150100500304.6242.4 262189.4 217.2T1 T2 Treatments T3 T4 T5FIG. 4.5 TOTAL CAROTENE CONTENT (µG/100ML) OF CARROT ICE LOLLY

359www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4.5.1 ANALYSIS OF VARIANCE OF TOTAL CAROTENE CONTENT(µG/100ML) OF CARROT ICE LOLLYSourcevarianceofd.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentsDue toreplication4 38472.24 9618.06 416.18 4.77 S4 79.04 19.76 0.85Due to error 12 277.36 23.11Total S.S. 24 38828.64S = SignificantANOVA table 4.5.1 shows that the calculated value for treatments as 416.18 against thevalue of „F‟ at 1 percent level of probability being 4.77.Therefore treatments had significant difference on the total carotene content in carrot icelolly.The significant difference thus obtained was further analyzed statistically by comparing themeans of two treatments against the critical difference value. The results of C.D. arepresented in table 4.5.2.TABLE 4.5.2 COMPARISON OF TOTAL CAROTENE CONTENT (ΜG/100ML) OFCARROT ICE LOLLY AGAINST CRITICAL DIFFERENCETreatmentMean ValueT 1 T 2 T 3 T 4 T 527.85372.6115.2T 1SSSS25.244.887.4T 2SSS19.662.2T 3SS

360www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780T 442.6ST 5CD = 6.62, S = Significant (P≤0.05)On comparing the total carotene percentage of carrot ice lolly from different treatments usingcritical difference in table 4.5.2 the variations in total carotene content of carrot ice lolly canbe seen as follows:-The difference in the mean value of T 1 and T 2 27.8 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 1 and T 3 53 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 1 and T 4 72.6 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 1 and T 5 115.2 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 2 and T 3 25.2 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 2 and T 4 44.8 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 2 and T 5 87.4 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 3 and T 4 19.6 was higher than C.D., 6.62 therefore, thedifference was significant.The difference in the mean value of T 3 and T 5 62.2 was less than C.D., 1.22 therefore, thedifference was significant.The difference in the mean value of T 4 and T 5 42.6 was less than C.D., 6.62 therefore, thedifference was significant.It is therefore concluded that there was highly significant difference in the total carotenecontent of treatment combinations, which may be ascribed to different ratio of carrot juice incarrot ice lolly.

Average scores forflavour and tastewww.zenithresearch.org.in361ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FLAVOUR AND TASTEIt is evident from the table 4.6 and fig.4.6 that the highest average score for flavor and tastewas 7.48 in T 3 followed by T 4 (7.28), T 1 (7.16) and T 2 (7.17). The lowest average score forflavour and taste of 7.12 percent was recorded for T 5 .TABLE 4.6 FLAVOUR AND TASTE OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 6.8 7.0 7.2 6.8 7.02. 7.6 7.4 7.4 7.2 7.03. 7.2 7.0 7.8 7.4 7.44. 7.0 7.2 7.6 7.4 7.25. 7.2 7.2 7.4 7.6 7.0Total 35.8 35.8 37.4 36.4 35.6Average 7.16 7.17 7.48 7.28 7.12Range 6.8-7.6 7.0-7.4 7.2-7.8 6.8-7.6 7.0-7.47.57.487.47.37.27.17.16 7.177.287.1276.9T1TreatmentsT2 T3 T4 T5FIG. 4.6 FLAVOUR AND TASTE OF CARROT ICE LOLLY

362www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4.6.1 ANALYSIS OF VARIANCE OF FLAVOUR AND TASTE OF CARROTICE LOLLYSourcevarianceofd.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentsDue toreplication4 0.432 0.108 2.0 3.26 NS4 0.512 0.128 2.37Due to error 12 0.656 0.054Total S.S. 24 1.6NS = Non-significantANOVA table 4.6.1 shows that the calculated value for treatments as the 2.0 against the tablevalue of „F‟ at 5% level of probability being 3.26. Therefore treatments had no significantinfluence on the flavour and taste in carrot ice lolly.BODY AND TEXTUREIt is evident from the table 4.7 and fig.4.7 that the highest body and texture was 7.69 in T 3followed by T 1 (7.68), T 4 (7.56) and T 2 (7.6). The lowest average score for body and textureof 7.4 percent was recorded for T 5 .TABLE 4.7 BODY AND TEXTURE OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 8 8 7.6 7.6 7.42. 7.2 7.2 7.6 7.6 7.23. 7.6 7.2 7.2 7.0 6.44. 8 8 8 8 85. 7.6 7.6 8 7.6 8Total 3.8 38.0 38.4 37.8 37

Average score for bodyand texturewww.zenithresearch.org.in363ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Average 7.68 7.6 7.69 7.56 7.4Range 7.2-8.0 7.2-8.0 7.2-8.0 7.0-8.0 6.4-8.07.77.657.67.557.57.457.47.357.37.257.68 7.697.67.567.4T1TreatmentsT2 T3 T4 T5FIG. 4.7 BODY AND TEXTURE OF CARROT ICE LOLLYTABLE 4.7.1 ANALYSIS OF VARIANCE OF BODY AND TEXTURE OF CARROTICE LOLLYSource ofvarianced.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatment4 0.272 0.068 0.70 3.26 NSDue toreplication4 2.64 0.66 6.80Due toerror12 1.16 0.097Total S.S. 24 4.08NS = Non-significant

Average score forcolour and appearancewww.zenithresearch.org.in364ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ANOVA table 4.7.1 shows that the calculated value of „F‟ at 5% level was less that the tablevalue of „F‟ i.e. 3.26. Therefore treatment had non significant difference in the scores forbody and texture of carrot ice lolly prepared by using difference ratio of carrot juice.It istherefore concluded that treatments has no effect on consistency of ice lolly.COLOUR AND APPEARANCEIt is evident from the table 4.8 and fig.4.8 that the highest colour and appearance was 8.12 inT 5 followed by T 4 (7.6), T 3 (7.12) and T 2 (6.56). The lowest colour and appearance of 5.92percent was recorded for T 1 .TABLE 4.8 COLOUR AND APPEARANCE OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 7.6 7.4 8.0 7.8 7.62. 5.8 6.6 7.2 7.8 8.23. 4.8 6.2 6.0 6. 8.24. 5.6 6.4 8.0 8.0 8.45. 5.8 6.2 7.8 7.8 8.2Total 29.6 32.8 35.6 38.0 40.6Average 5.92 6.56 7.12 7.6 8.12Range 5.6-7.6 6.2-7.4 6.0-8.0 6.6-8.0 7.6-8.410865.926.567.12 7.68.12420T1 T2TreatmentsT3 T4 T5FIG. 4.8 COLOUR AND APPEARANCE OF CARROT ICE LOLLY

365www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4.8.1 ANALYSIS OF VARIANCE OF COLOUR AND APPEARANCE OFCARROT ICE LOLLYSourcevarianceofd.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentDue toreplication4 14.844 3.711 3.31 3.26 S4 4.412 1.103 0.98Dueerrorto12 4.484 1.121Total S.S. 24 23.74S = SignificantANOVA table 4.8.1 shows that the calculated value of „F‟ at 5% level was higher that thetable value of „F‟ i.e. 3.26. Therefore treatment had significant difference in the scores forcolour and appearance of carrot ice lolly prepared by using difference ratio of carrot juice.The significant difference thus obtained was further analyzed statistically by comparing themeans of two treatments against the critical difference value. The results of C.D. arepresented in table 4.8.2.TABLE 4.8.2 COMPARISON OF COLOUR AND APPEARANCE OF CARROT ICELOLLY AGAINST CRITICAL DIFFERENCETreatmentMean ValueT 1 T 2 T 3 T 4 T 50.641.21.682.2T 1NSSSS0.561.041.56T 2NSSS0.481.0T 3NSS

366www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780T 40.52NST 5CD = 0.97, S = Significant (P≤0.05), NS = Non-significantOn comparing the colour and appearance of carrot ice lolly from different treatments usingcritical difference in table 4.8.2 the variations in scores for colour and appearance of carrotice lolly can be seen as follows:-The difference in the mean value of T 1 and T 2 0.64 was less than C.D., 0.97 therefore, thedifference was non-significant.The difference in the mean value of T 1 and T 3 1.2 was higher than C.D., 0.97 therefore, thedifference was significant.The difference in the mean value of T 1 and T 4 1.68 was higher than C.D., 0.97 therefore, thedifference was significant.The difference in the mean value of T 1 and T 5 2.2 was higher than C.D., 0.97 therefore, thedifference was significant.The difference in the mean value of T 2 and T 3 0.57 was less than C.D., 0.97 therefore, thedifference was non-significant.The difference in the mean value of T 2 and T 4 1.04 was higher than C.D., 0.97 therefore, thedifference was significant.The difference in the mean value of T 2 and T 5 1.56 was higher than C.D., 0.97 therefore, thedifference was significant.The difference in the mean value of T 3 and T 4 0.48 was less than C.D., 0.97 therefore, thedifference was non-significant.The difference in the mean value of T 3 and T 5 1.0 was higher than C.D., 0.97 therefore, thedifference was significant.The difference in the mean value of T 4 and T 5 0.52 was less than C.D., 0.97 therefore, thedifference was non-significant.It is therefore concluded that there was significant difference in the colour and appearancebetween T 1 – T 3 , T 1 – T 4 , T 1 - T 5 , T 2 –T 4 and T 2 –T 5 treatment combinations, which may beascribed to different ratio of carrot juice in carrot ice lolly, while there is no significantdifference among rest of the treatment combinations.

Average score for overall acceptabilitywww.zenithresearch.org.in367ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780OVERALL ACCEPTABILITYIt is evident from the table 4.9 and fig.4.9 that the overall acceptability was 7.91 in T 3followed by T 4 (7.8), T 2 (7.49) and T 5 (7.36). The lowest over all acceptability of 7.26 percentwas recorded for T 1 .TABLE 4.9 OVERALL ACCEPTABILITY OF CARROT ICE LOLLYReplicationnumberT 1 T 2 T 3 T 4 T 51. 7.16 7.39 7.91 7.8 7.262. 7.26 7.59 8.0 7.5 7.463. 7.36 7.49 8.11 7.9 7.264. 7.16 7.39 8.12 7.9 7.255. 7.36 7.6 7.42 7.93 7.57Total 36.3 37.46 39.56 39.03 36.8Average 7.26 7.49 7.36 7.8 7.91Range 7.16-7.36 7.39-7.6 7.42-8.12 7.5-7.93 7.25-7.5787.87.67.47.276.87.49 7.367.917.87.26T1 T2 T3 T4TreatmentsT5FIG. 4.9 OVERALL ACCEPTABILITY OF CARROT ICE LOLLY

368www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 4.9.1 ANALYSIS OF VARIANCE OF OVERALL ACCEPTABILITY OFCARROT ICE LOLLYSourcevarianceofd.f. S.S. Mean S.S. F ‘Cal’F ‘Tab’(5%)ResultsDue totreatmentDue toreplication4 1.59 0.397 10.6 3.26 S4 0.034 0.0085 0.22Dueerrorto12 0.6015 0.0375Total S.S. 24 2.225 0.092S = SignificantANOVA table 4.9.1 shows that the calculated value of „F‟ at 5% level was higher that thetable value of „F‟ i.e. 3.26. Therefore treatment had significant difference in the scores foroverall acceptability of carrot ice lolly prepared by using difference ratio of carrot juice.The significant difference thus obtained was further analyzed statistically by comparing themeans of two treatments against the critical difference value. The results of C.D. arepresented in table 4.9.2.TABLE 4.9.2 COMPARISON OF OVERALL ACCEPTABILITY SCORE OFCARROT ICE LOLLY AGAINST CRITICAL DIFFERENCETreatmentT 1 T 2 T 3 T 4 T 5Mean ValueT 1 0.10.130.440.55NSNSSST 2 0.230.540.65NSSST 3 0.31S0.42ST 4 0.11NS

369www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780T 5CD = 0.259, S = Significant (P≤0.05), NS = Non-significantOn comparing the overall acceptability of carrot ice lolly from different treatments usingcritical difference in table 4.9.2 the variations in scores for over all acceptability of carrot icelolly can be seen as follows:-The difference in the mean value of T 1 and T 2 0.1 was less than C.D., 0.259 therefore, thedifference was non-significant.The difference in the mean value of T 1 and T 3 0.13 was less than C.D., 0.259 therefore, thedifference was non-significant.The difference in the mean value of T 1 and T 4 0.44 was higher than C.D., 0.259 therefore, thedifference was significant.The difference in the mean value of T 1 and T 5 0.55 was higher than C.D., 0.259 therefore, thedifference was significant.The difference in the mean value of T 2 and T 3 0.23 was less than C.D., 0.259 therefore, thedifference was non-significant.The difference in the mean value of T 2 and T 4 0.54 was higher than C.D., 0.259 therefore, thedifference was significant.The difference in the mean value of T 2 and T 5 0.65 was higher than C.D., 0.259 therefore, thedifference was significant.The difference in the mean value of T 3 and T 4 0.31 was higher than C.D., 0.259 therefore, thedifference was significant.The difference in the mean value of T 3 and T 5 0.42 was higher than C.D., 0.259 therefore, thedifference was significant.The difference in the mean value of T 4 and T 5 0.11 was less than C.D., 0.259 therefore, thedifference was non-significant.It is therefore concluded that there was significant difference in the overall acceptabilitybetween T 1 – T 4 , T 1 – T 5 , T 2 –T 4 , T 2 –T 5 , T 3 –T 4 and T 3 – T 5 treatment combinations, whichmay be ascribed to different ratio of carrot juice in carrot ice lolly, while there is nosignificant difference among rest of the treatment combinations.CONCLUSIONResults obtained from the statistical analysis revealed that carrot juice can be satisfactorilymixed with water to prepare carrot ice lolly. It is further concluded that carrot ice lolly with

370www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780using T 3 (30%) and T 5 (50%) carrot juice is most acceptable. In terms of flavour and taste andbody and texture T 3 (30%) is best treatment. In terms of colour and appearance and over allacceptability T 5 (50%) is best treatment.RECOMMENDATION1. Carrot ice lolly can be recommended to combat general health ailments like vitamin Adeficiency disease, cardiovascular disease, anaemia, cancer, reduce cholesterol,indigestion etc. is consumed daily.2. Carrot a day may help keep a whole assortment of disease away. Carrot juice in theirdaily diet, their overall health improves extremely.REFERENCESArbuckle, W.S., 1972, Ice cream. The A.V.I. publishing company Inc, west port, Connecticutpp80-85.Gautam, O.P., 1997, Production of vegetables, Hand book of agriculture, 3 rd ed., Kalyanipublication, New Delhi, pp1088-1089.Gopalan, C., Rama Shastri, B.V. and Bala subramaniam, S.C., 2000, Nutritive value of Indianfoods, ICMR publication, Hyderabad, pp50-61.Prevention of food adulteration (PFA) rules, 1955 (as amended up to 6, 2006) dairy Indiasixthedition, pp456.Putnam, Judith J. and Jane, E., 2004, food consumption, U.S. publication book co., U.S.,pp50-55.Manjunatha, S.S., Mohan kumar, B.L. and Das gupta, D.K., 2003, Development andevaluation of carrot kheer mix, Journal of food science and technology, 40 (30): pp310-312.Sommer, H.H., 1953, The theory and practices of ice cream making, American printing press,U.S.A. pp567-568.Turnbow, Charis, S., 1956, The ice cream industry, John wills and sons publication co, NewYork, pp57.WHO, 1993, Global prevalence of vitamin A deficiency; micronutrient deficiencyinformation system (MDIS) WHO nutrition report, New Delhi, pp95.

371www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TESTING OF RELATIONSHIP BETWEEN STOCK RETURN ANDTRADING VOLUME IN INDIAABSTRACTRAVI KANT**Doctoral Student, Department of Commerce,Kurukshetra University, Kurukshetra-136119, Haryana, India.The linkage between stock prices and trading volume has been subjected to extensiveresearch worldwide. The issue is also gaining importance to India especially in postliberalisation period. In this context this article attempts to empirically examine therelationship between stock returns and trading volume in India using monthly data time seriesover a nine year period from January 2002 to December 2010 for three hundred forty sevenIndian stocks. The study employed the three steps in the first step descriptive study, in thesecond step augmented dickey-fuller unit root test for checking stationery and in the thirdstep granger causality tests for testing the causality between stock return and tradingvolume.Granger causality test find that there is high degree causality between stock returnand trading volume in Indian stock market because out of three hundred forty seven stocks,66% stocks indicate that return cause volume, 3.3% stocks indicate that volume cause return,3.7% stocks indicate bi-directional causation and the remaining27% shows no causation atall.KEYWORDS: Empirically,Granger Causality Test, Stock Return, Trading Volume, TimeSeries.___________________________________________________________________________INTRODUCTIONThere are many studies conducted on the relationship between trading volume and stockreturn. Such studies can provide insight into the structure of the financial market. Thesestudies have been carried out on the stock market of countries other than India on therelationship between trading volume and stock return relationship. In these studies, a positiverelationship between trading volume and stock return has been documented. This positiverelationship has partially been attributed to the asymmetric relationship between these twovariables. It is generally believed that the relationship between stock return and tradingvolume can provide an insight into the structure of capital market. The main objectives ofstudy to ascertain the relationship between the trading volume and stock return changes in theIndian Stock Exchanges. Second the correlation between return changes and trading volumeas well as magnitude of return changes and trading volume. The role of information onpricing of stock is an issue heavily discussed in the areas of finance, economics, andaccounting. Generally it is known that pricing react to the arrival of new information.Investors in the stock markets frequently revise their expected prices of stocks depending onthe flow of information. Possible disagreement to informational events can also lead toincreased trading. Trading volumes can increase even if investors interpret the informationidentically but they have divergent prior expectations. Yet it is not clear what is theinformation reflected by volume data. The effects of the institutional and regulatory design ofthe market-spot and futures—on trading volume are also not well understood. This study

372www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780analyses the impact of stock market liberalization on emerging return volatility. Aliberalization period is constructed to capture all identified market openings for each market.The stock market is a really nice place to invest your hard-earned money. Providedyou know all the ropes. The Stock Market is no place for the tender-hearted and the weakkneed.The Stock Market is a Great Leveller, in that it lifts you up one day and dumps you onthe mat, the very next day. This is true in the case of the Indian Stock Market, the undisputedleader of the Asian pack. Here the foreign institutions hold all the trump cards. The domesticinstitutions and the mutual funds do play important roles but they are in no position to changethe trend of the market on a given day. The current study contributes to the existing literaturein volume changes and returns changes relationship by using traded quantity and calculatedreturn from monthly adjusted closing prices in the Indian industries. The causal relationship isinvestigated between volume and return volatility by using granger causality test.OBJECTIVES OF STUDYThis study is undertaken with the following objectives:1 To study the correlation between return changes and trading volume as well asmagnitude of return changes and trading volume.2 To study that can trading act as a barometer for the Indian economy.3 To test the causality relationship between the trading volume and stock returnthrough granger causality test.THE NEED OF THE STUDYThere exists a considerable amount of evidence both ‗for‘ and ‗against various levelof efficiency for developed capital market. However, the capital market of the developingworld such as that of India has been less subjected to efficiency research. Also these studieshave employed relatively short time period. Therefore, further investigations on individualstock return data and over longer periods would provide more conclusive evidence. Theknowledge of this relationship between trading volume and stock return in stock market canprove useful for investors. By properly timing their buy and sell decisions, they can enhancetheir adjusted profit, altering the time of routinely scheduled transaction in the light of tradingvolume changes can enhancing one‘s return on investment. The proposed study provides auseful insight into the behaviour of trading volume and return changes in the Indian capitalmarket. It may help the professional and institutional investor to better meet the expectationsof their client at large.REVIEW OF LITERATUREDuring the last decades a number of interesting studies have sought to explain theempirical relationship between trading volume and stock returns.We argue that the increase in trading volume and return volatility may be attributed toindex arbitrage transactions as derivative markets provide more routes for index arbitrageursto trade. Volume and Seemingly Emotional Stock Market Behaviour that various informationtypes and rational learning methods have shown that heterogeneous belief changes in a

373www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780rational expectation model can explain many empirical findings in stock markets, such asmomentum, contrarians, and technical trading. The methods have also shown that momentumand price movements can coexistin an asset market with only rational agents. The purpose ofthis paper is to provide a rational economic theory to explain these phenomena. Results of adynamic programming model with heterogeneous beliefs show that the dynamic interactionsbetween information diffusion and belief changes create continuation and reversals. Theduration and magnitude of momentum and price movements are associated with tradingvolume. Therefore, rational investors should incorporate price andvolume information in theirtrading decisions.Lam, Li and Wong (1990) made a study to measure Price changes and trading volumerelationship in the Hong Kong stock market that Studies on the relationship between pricechanges and trading volume can provide insight into the structure of the financial market. Inthis paper, we will study the above topic and concentrate on the stock market of Hong Kong.The correlation between price changes and trading volume as well as that between themagnitude of price changes and trading volume will be examined. We will also check theasymmetry of the price changes and volume relationship. Moreover, we will investigate therelationship between the variance of return and trading volume. Finally, the Granger causalitytest of price changes and volume will be performed.Mittal (1995) has documented in his article, new finding on price changes and tradingvolume relationship in the Indian stock market that a positive relationship may be observedbetween stock price changes and trading volume, Lagged relationship between these twovariables my also be possible. The study is based on two daily prices indices published byBSE, BSE sensitive index, and BSE national index, which are assumed to be marketinformer. It is evident that stock price changes and trading volume are not significantlycorrelated.Henry (1999) analysed in his research paper Stock Market Liberalization, EconomicReform, and Emerging Market Equity Prices A stock market liberalization is a decision by acountry‘s government to allow foreigners to purchase shares in that country‘s stock market.This result is consistent with the prediction of standard international asset pricing models thatstock market liberalization may reduce the liberalizing country‘scost of equity capital byallowing for risk sharing between domestic and foreign agents.Bhanupant (2001) examined in this study,Testing Dynamic Relationship betweenReturns and Trading Volume on the National Stock Exchange that the dynamic relationshipbetween stock index returns andtrading volume using the linear and non-linear Granger noncausalityhypothesis test onthe National Stock Exchange (NSE) data. Widely used linearGranger non-causality testis used to investigate the linear relationship while the non-linearGranger causality isinvestigated using modified Baek and Brock test proposed by Hiemstraand Jones (1994)for the daily returns on S&P CNX Nifty and the total trading volume atNSE.Bhatiacharya&Mukkherjee (2003) examine in their paper, Causal Relationshipbetween Stock Market and Exchange Rate, Foreign Exchange Reserve and Value of TradeBalance: A case Study for India that the nature of the causal relationship between stock pricesand macroeconomic aggregates in the foreign sector in India. By applying the techniques ofunit–root tests, co- integration and the long–run Granger non–causality test recently proposedby Toda and Yamamoto (1995), we test the causal relationships between the BSE Sensitive

374www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Index and the three macroeconomic variables, viz., exchange rate, foreign exchange reservesand value of trade balance using monthly data for the period 1990-91 to 2000-01. The resultssuggest that there is no causal linkage between stock prices and the three variables underconsideration.Abounoori andMotameni (2007) investigated in this study, Test of Leverage Effect inTehran Stock Exchange that the effect of stock volatility is examined in Tehran Stock Market(TSE) using the leverage effect theory. According to the theory, the return and variance havenegative relationship. The effect has been tested using E-GARCH model and daily time seriesdata during 1992-2006. The results do not reject the leverage effect in TSE. Also, the impactof good and bad news on volatility has not been symmetric.Shantha and Shnmugham (2007) investigated in his paper, Behaviour of stock returnsto the Corporate Bonus Issue Announcements: An Event Study that the Indian corporatesector has witnessed restructuring initiatives which created an impact in the behaviour of thestock returns. This subject has captured the attention of the researchers and practitioners inthe areas of corporate finance. This study examines the stock price reaction of the companies‘constitution the S&P CNX 500 around the bonus issue announcement dates. The period ofstudy is Jan 2000 to Dec 2005. Event study methodology was employed on the samplecompanies. The sample was decided into sub samples based on the industry type, level o0fEPS and P/E ratios. The results proved that the markets react positively to the bonus issueannouncements.Ashraf and Ahmed (2008) found in their research, causality and volatility in the firmlevel stock returns and volume in India: evidence from national stock exchange that comovementin stock return and volume changes using daily NSE data for 21 listed firms from1996 to 2005. It is observed that the direction of causality between stock return and volumechange very over different periods and across firms. Generally there are causal relationshipsbetween volume and price over the full period. Once we take the three sub-periods therelationship starts to weaken over the sub-periods for most of the stocks.Mahajan and Singh (2008) found in their research, trading volume and returnvolatility dynamics in Indian stock market that the emergence of informational efficientfinancial markets is an important facet of any country‘s economic modernization with farreachingimplications for its macroeconomic stability and performance, trading volumeconveys crucial information on future stock prices. Which are of interest to all marketparticipants, this paper examines the pattern of information flow between trading volume andreturn volatility (squared value of returns) using daily data of closing prices and volume ofnifty index for the period from July, 2001 to march, 2006.RESEARCH METHODOLOGYİn order to observe the relationship between stock return and trading volume ,themethodology was used in three step1 Descriptive study2 ADF test for checking stationarity of time series data.3 Granger causality test

www.zenithresearch.org.in375ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FRIST STEPDescriptive statistics:-This displays various summary statistics for the series. Itcontains entries for histograms, basic statistics, and statistics by classification.This displays the frequency distribution of your series in a histogram. The histogramdivides the series range (the distance between the maximum and minimum values) into anumber of equal length intervals or displays a count of the number of observations that fallinto each bin.A complement of standard descriptive statistics is displayed along with the histogram.All of the statistics are calculated using the observations in the current sample.1. Mean is the average value of the series, obtained by adding up the series anddividing by the number of observations.2. Median is the middle value (or average of the two middle values) of the serieswhen the values are ordered from the smallest to the largest. The median is a robust measureof the centres of the distribution that is less sensitive to outliers than the mean.3. Max and Min are the maximum and minimum values of the series in the currentsample.4. Std. Dev. (standard deviation) is a measure of dispersion or spread in the series.The standard deviation is given by:series.Where the number of observations in the current is sample and is the mean of the5. Skewness is a measure of asymmetry of the distribution of the series around itsmean. Skewness is computed as:Where is an estimator for the standard deviation that is based on the biasedestimator for the variance. The skewness of a symmetric distribution,such as the normal distribution, is zero. Positive skewness means that the distribution has along right tail and negative skewness implies that the distribution has a long left tail.6. Kurtosis measures the peakiness or flatness of the distribution of the series.Kurtosis is computed as

www.zenithresearch.org.in376ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780where is again based on the biased estimator for the variance. The kurtosis of thenormal distribution is 3. If the kurtosis exceeds 3, the distribution is peaked (leptokurtic)relative to the normal; if the kurtosis is less than 3, the distribution is flat (platykurtic) relativeto the normal.7. Jarque-Bera is a test statistic for testing whether the series is normally distributed.The test statistic measures the difference of the skewness and kurtosis of the series with thosefrom the normal distribution. The statistic is computed as:where is the skewness, and is the kurtosis.Under the null hypothesis of a normal distribution, the Jarque-Bera statistic isdistributed as with 2 degrees of freedom. The reported Probability is the probability that aJarque-Bera statistic exceeds (in absolute value) the observed value under the nullhypothesis-a small probability value leads to the rejection of the null hypothesis of a normaldistribution. We reject the hypothesis of normal distribution at the 5% level but not at the 1%significance level.SECOND STEPDICKEY-FULLER UNIT ROOT TEST (STATIONARY TEST)Let TQ = Y t , the DF Unit Root Test are based on the following three regressionequation forms:1. without Constant and Trend2. with Constant3. with Constant and TrendWhere is the variable of interest, t is the time index, ρ is a coefficient, and ut is theerror term. A unit root is present if ρ = 1.α is a constant, β the coefficient on time trend, µ isthe error term,this model can be estimated and testing for a unit root is equivalent to testing δ= 0 (where δ = ρ − 1).∇ is the first difference operator.Each version of the test has its owncritical value which depends on the size of the sample. In each case, the null hypothesis isthat there is a unit root, δ = 0. The tests have low statistical power in that they often cannotdistinguish between true unit-root processes (δ = 0) and near unit-root processes (δ is close tozero). This is called the "near observation equivalence" problem.Since the test is done overthe residual term rather than raw data, it is not possible to use standard t-distribution to

www.zenithresearch.org.in377ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780provide critical values. Therefore this statistic τ has a specific distribution simply known asthe Dickey–Fuller table.THE HYPOTHESIS ISDecision rule:IfIft* > ADF critical value, ==> not reject null hypothesis, i.e., unit root exists.t* < ADF critical value, ==> reject null hypothesis, i.e., unit root does not exist.Note: - TQ denotes Traded Quantity, RTN denotes Stock Return.THIRD STEPGRANGER CAUSALITY TESTIf we want to know whether"TQ" causes "RTN" or "RTN" causes "TQ", or bilateral causes,"Lags to include" is "2",HYPOTHESES AREThe null hypotheses of the Granger-Causality test are:H 0 : X =/=> Y (X does not granger-cause Y)H 1 : X ==> Y (X does Granger-cause Y)The F-test is: F (r, n-m-k) = [(ESS r -ESS u )/r]/[ESS u /(n-m-k)] and ESS is the residual sumof squares.If, F-statistics are large and the probability values are all close to 0. It means that thevariables are mutually Granger cause to each other.Correlation does not necessarily imply causation in any meaningful sense of thatword. The econometric graveyard is full of magnificent correlations, which are simplyspurious or meaningless.The Granger (1969) approach to the question of whether causes is to see howmuch of the current can be explained by past values of and then to see whether addinglagged values of can improve the explanation. is said to be Granger-caused by ifhelps in the prediction of , or equivalently if the coefficients on the lagged 's arestatistically significant. Note that two-way causation is frequently the case; Granger causesand Granger causes .

www.zenithresearch.org.in378ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780It is important to note that the statement " Granger causes " does not imply thatis the effect or the result of . Granger causality measures precedence and informationcontent but does not by itself indicate causality in the more common use of the term.When you select the Granger Causality view, you will first see a dialog box asking forthe number of lags to use in the test regressions. In general, it is better to use more rather thanfewer lags, since the theory is couched in terms of the relevance of all past information. Youshould pick a lag length, , that corresponds to reasonable beliefs about the longest time overwhich one of the variables could help predict the other.E-Views run bivariate regressions of the form:For all possible pairs ofstatistics for the joint hypothesis:series in the group,the reported F-statistics are the WaldFor each equation,the null hypothesis is that does not Granger-cause in the firstregression and that doesnot Granger-cause in the second regression.Note: The Granger Causality Test for some variables is very sensitive to the selectednumber of lags in the analysis. Students should be careful to choose the reasonable laglengths. For examples, for the monthly data, the reasonable lag terms can be range from 1 to12 or 24, etc.; for the quarterly data, the reasonable lag terms can be range from 1 to 4, 8, 12,etc., and for the annual data, the reasonable lag terms should be less. And the reasonable laglengthsshould be determined by the significant change of the F-value.DATA AND SAMPLEThe sample of this study comprises three hundred forty seven listed companies onBSE of ten 10 industries which is the major stock exchange of India. These industries areAutomobile, Cotton Textile, Transport Services, Electricity, Electronics, Metal, Non-metal,Real Estate, Mining and Chemical. The data period is Jan. 2002 to Dec. 2010.ANALYSISDESCRIPTIVE STATISTICS- TRADING VOLUME AND STOCK RETURNThe study presents descriptive statistics for the returns calculated on return andtrading volume for the 108 and 107 observations have been calculated from the closing pricesextracted from prowess data base of CMIE ltd. The statistics have been calculated by usingthe E-views and SPSS software.The mean, median, maximum, minimum, std. dev., skewness, kurtosis, Jarque-Bera,probability, sum and sum sq. dev. simple correlation are calculated to do the preliminaryinvestigation. The results are presented in this study by Giving N=108 and 107 observations.We use the adjusted closing prices to calculate the return series . We define returns as

379www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780100* , where is the closing price on day t. To represent trading volume, N=No.of observation, we use the aggregate monthly number of shares traded for the componentstocks of the BSE. We present the statistical characteristics of the empirical distribution ofreturn on the Indian stock market and trading volume in order to determine if the data for thestock market exhibit characteristics consistent with the predictions of standard mixture ofdistributions models. It can be observed from study that the average value of the series incase of volume is positive and in case of return% is also positive. Its mean that the returnfrequency in the series positive more than positive. The average of two middle values of theseries is when the values are ordered from the smallest to the largest. The volume remainspositive and return% also positive. Both of the maximum and minimum values of the seriesare positive in case of traded quantity and in case of return minimum value are negative andmaximum is positive it means that the high point in volume and returns are larger than otherand vice versa. During measuring the variance round the mean the s.d. of volume is positiveand return% is also positive. Skewness is a measure of asymmetry of thedistribution of theseries around its mean. The volume distributionround the mean has long right tail and returnhas also long right tail.DICKEY-FULLER UNIT ROOT TEST (STATIONARY TEST) - TRADINGVOLUME AND STOCK RETURNAll data used in the studyis stationary for both trading volume and stock return.ADFtest has been employed for checking the stationarity of time series data. The lag length, forthe ADF tests was chosen so as to making data more suitable for testing granger causalitytestlags to include iszero for ADF and two for causality tests. The critical value for ADF unitroot tests at 1%, 5% and 10% levels are -2.586960, -1.943882 and -1.614731(without trend).GRANGER CAUSALITY TEST- TRADING VOLUME AND STOCK RETURNAs the below table shows, the results of granger causality test, F-test at firm level arereported in the table. Out of 347 stock, 229 stocks indicate that return cause volume, 11stocks indicate that volume cause return, 13 stocks indicate bi-directional causation and theremaining 94 shows no causation at all. As you can see, F-statistics are large and probabilityvalues are all close to 0 except for some companies. It means the variables are mutuallygranger cause to each other accepts some companies whose F-statistics are not large andprobability values are not all close to 0.Empirical result ofpair wise granger causality tests at firm level for the period of Jan. 2000 toDec. 2010.Return cause volume Volume cause return Bi-directionalcausationNo causationIndustry F-stat.Industry F-stat.Industry F-stat.Industry F-stat.HPCTL 18.73 ALL 4.96ACHL 1.503.99*EML 13.66 SKNL 2.67 BASF 10.24 HHML .38

380www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57806.53*HML 22.89 SSML 2.37 CASTROL 14.51MML 1.953.89*KEL 15.75 BSAL 1.89 COLGATE 4.32TATAM 1.272.73*KMCL 7.40 CTIL 3.03 DKL 7.04ARL 1.763.61*LML 9.37 OAL 5.96 PIL 8.03ANPL 0.033.34*MSL 18.68 REL 4.82 SSML 3.02BPCL 0.964.02*MAL 4.57 RIL 7.04 WYL 12.55CIPLA .513.07*SMLIL 3.92 CCOIL 3.05 NLCL 25.85CCIL .257.52*STIL 8.25 GEST 5.59 MECL 27.01DABUR .454.26*SIL 4.94 DRREDDY 2.82 KCL 3.68DFPC 1.882.58*TVS 10.11 MCL 3.78GLAXOPL 1.793.33*APL 15.07 SCL 25.37GODREG 0.865.28*APCL 13.29 HLL 0.84ATL 8.27 IPCA .31AOL 18.95 MAX .13CADILA 14.11 RANBAXYL 1.75

381www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780CEAT 6.95 SPIL 1.89CFCL 5.76 TCL 1.83CPCL 15.20 DCM 2.05DCW 10.09 HSWM .48EPIC 6.52 RSWM 1.87ESSAR 43.04 RSWM 1.87EIL 18.12 SSIL 1.18GHCL 12.01 SVSML 1.99GPL 16.73 BFUL 1.96GBL 5.52 NBVL 1.61GNVF 4.43 NTPC 1.53GSFC 6.42 BEL 1.69HOCL 11.24 NCPL .50HPCL 4.91 GIEL 1.82JBCL 3.51 GCL 1.20JAINIS 2.64 HFCL 1.97KOPRAN 10.67 HRL .11LUPIN 15.02 JCT .07MCFL 24.03 LMEL 1.32MRPL 8.05 OCL 1.53MLL 7.51 VIL 2.23NFCL 11.88 VIL 2.26RTN 5.73 AFL .39NIL 5.76 ACL 1.52RCFL 21.96 CCOM 2.07RMTL 7.10 DNIL 1.68NSBL 6.92 FACL .16

382www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780NTPL 15.11 GSTL .86UFLEX 6.13 HIL 1.30VDML 3.15 HTWL .08WL 10.65 JAIC 1.09ADEL 7.79 JSL 1.04NAIL 7.83 KPTL .38ASML 2.94 LIL 1.84NASIL 16.12 MMFL 1.67ARVIND 13.96 MSL 1.08ASHIMA 2.47 NACL 1.06NBSL 5.26 OSISL .54EKNI 15.53 PIL 1.31EIEL 10.52 RSPL .09GTL 5.80 RMTL 1.81GFL 13.26 SHETRON .46NICIL 8.10 STL 2.20QKGD 12.06 TATASTEEL .13NLMC 10.90 TIOL .72MCSM 10.63 ZENITH .03MOL 8.63 GMDC 2.21NMTL 7.16 GNRE .53NNEL 8.37 ONGC 1.01NSML 6.49 SESAG .29PUDIL 3.14 AMBUJACL .30SSML 9.91 ACL 1.00SRSL 14.37 AGIL .30STIL 3.03 CUL 1.34

383www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780NSIL 2.36 ICL 2.03SLST 5.80 RAMCOIL 1.48SSML 4.60 SDCC 1.92TT 8.73 SSGL .01VPL 5.73 SDL 1.21VTL 2.72 TITAN 1.39CESL 3.86 AFHL .75GIPCL 18.26 HBED .14RELIANIN 3.20 PENINSULA .13NADC 18.38 RDL .21AGC 2.39 UNITECH .37ATL 13.63 BTL 2.05APLAB 4.18 DCOIL 2.05AEL 4.82 ESPLL 2.04AL 9.18 SICALLL 1.60BPL 8.84 PHL .02CEL 4.30 RIL .52CITL 4.16 GTNIL 1.16COSMOF 27.68 NLTM 1.67DSSL 11.50 ACC 2.07HAIL 2.78 ASCL .25ITI 14.22 VIL 1.49LECS 10.61 LHCL .32MEL 22.25 Return cause volume Return causevolumeReturnvolumecauseMOSERBAER 4.09 Industry F-stat.Industry F-stat.Industry F-stat.MROTEK 6.32 SAL 18.45 GIL 4.87 PCL 22.39

384www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780NELCO 9.61 SBCL 2.47 GNL 2.49 RCL 6.03NPCS 8.55 SAIL 16.12 GSCL 14.09 RCL 12.31PCL 5.42 STERLINGTL 5.20 WCL 22.74 SBTIL 14.64RVL 8.74 SISC 6.30 WISL 5.56 SGSI 7.20SPEL 11.10 TATAML 8.80 CMRL 19.97 SCL 6.09SCL 10.94 TATASI 14.67 HCIL 6.27 SCL 4.23SHARPIL 7.08 TAYOR 28.89 HOEC 9.00 SSIL 3.84STL 16.86 TCIL 3.48 INSILCO 15.03 SCL 4.01SIEMENS 4.83 USHAM 2.90 OCCL 13.86 SRDG 13.69SNSL 6.50 UGSL 7.65 SETL 40.38 SDE 7.24STGL 10.46 VBC 4.85 MCL 9.60 TRIVENIG 13.08VXLI 10.24 MIL 5.74 NCIL 10.70 VGL 12.93VCL 11.32 METALIL 4.22 OCLI 11.05 VISAKAIL 4.83NXOIL 7.22 MIEL 25.29 OCLI 9.77 ANSALBL 5.22ZCL 5.45 MUKAND 3.71 OPIL 2.53 AHCL 6.88ZESSL 15.79 NSAI 14.31 PPL 7.56 APIL 7.04BSL 7.35 NILE 8.95 AIGL 4.11 DSKD 5.13BSIL 4.56 OCTL 14.86 NBCL 2.56 ABCINDIA 15.30BIL 6.60 OEL 2.77 BIRLAC 3.21 BDEL 4.29NECL 10.00 PGFOIL 43.58 BGWL 7.68 CSL 13.56ESIL 3.14 PSL 24.12 CDL 5.13 GOSL 9.72EGCL 3.84 RGWL 8.83 DECCAN 7.71 GATI 5.61GIL 9.63 RCL 11.77 EIL 7.52 JAGSONA 9.73GPL 5.56 RSAL 24.37 GIL 16.15 MLL 3.94HAIL 16.49 SIL 11.06 HCIL 6.10 PILL 9.61HZL 7.77 JINDALSAW 6.51 IFGLR 5.26 SKSL 6.78IFL 4.15 JINDALSTEE 2.67 IHPCL 54.74 SCOIL 12.06

385www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780IPCL 2.88 KALYANISTE 17.14 JKCL 7.68 SSLL 6.02ISPAT 8.25 KFIL 6.00 KCSIL 21.53 SPICEJET 4.76JSW 10.18 LGBB 8.51 LORG 4.46 TCIL 12.24JNIL 5.72 LPSL 18.28 MMGL 7.78 VSCL 18.90JCL 5.69 LMEL 4.19 MANGLMCL4.78 HEGL 14.07MUSL 19.74 LSIL 13.73 HSIL 3.73Sources: Prowess Database (CMIE Ltd). *Values is reported for RTN=/=>TQ for showingbi-directional value.CONCLUSIONThe present study examined the relationship between stock returns and tradingvolume in India using monthly data time series over a nine year period from January 2002 toDecember 2010 for three hundred forty seven Indian stocks by using descriptive statisticsmean, median, maximum, minimum, standard deviation, skewness, kurtosis, jarque-bera,probability, sum, sum sq deviation, and granger causality tests. While the literature suggeststhe existence of significant interactions between the two variables and our result also showsthat these to variable are inter-related in case of India.The result of present study shows thatthe two variables are co-integrated and dependent in most cases and movement in onevariable affect the each other. There for investor can use information obtained from onevariable (stock return) to predict the behaviour of other variable (trading volume).Theanalysis using granger causality method showed that there was co-integration between thetwo variables thus indicating that there seems to be long run relationship between the twovariables. The granger causality test showed evidence of causality between the two. Suchfindings are in contrast with flow and stock oriented models of stocks exchangesdetermination which postulate a relationship between stock return and tradingvolume.Moreover the investors can utilise this relationship between stock return and tradingvolume to predict the behaviour of these variables. Theoretically, if there is any linkagebetween both of the variables then the crises can be averted either by managing tradingvolume or adopting indigenous policies to stable to stock market.As we can see in the high degree positive relationship between two variables tradingvolume and stock return during the period of from 2002 to 2010 in the Indian stock market.Therefore, there is a need to under take an in-depth research to understand the relationship formaking return in stock markets.REFERENCES1. Abounoori E. &Motameni M. (2007), ―Test of Leverage Effect in Tehran StockExchange‖, Journal of Social Sciences & Humanities of Shiraz University, Vol. 26,No. 1, Spring 2007 (Ser. 50) (Special Issue in Accounting).

386www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802. Ahmad k. M., & Ashraf S. (2008), ―Causality and Volatility in the Firm LevelStock Returns and Volume in India: Evidence from National Stock Exchange‖,Finance India, Vol. XXII No. 1 (March), Page No. 99-115.3. AmilanS. &Muthumeenakshi M. (2008), ―EVA and Stock Returns in India-AnAnalysis‖, The Management Science, Vol. 7, No. 2 & 3,4. Bhanupant (2001), ―Testing Dynamic Relationship between Returns and TradingVolume on the National StockExchange‖,www.utiicm.com/Cmc/PDFs/2001/bhanupant%5E56.pdf -5. Bhatiacharya B. &Mukkherjee J. (2003), ―Causal Relationship between StockMarket and Exchange Rate, Foreign Exchange Reserve and Value of TradeBalance: A case Study for India‖, 5 th annual Conference on money and finance inIndia 2003.6. ChawlaM. (2008), ―Impact of index futures on index spot market‖, Dissertationsubmitted in Delhi school of economics, University of Delhi, Delhi.7. EdwardsS., BiscarriJ. G.and Fernando P. G.(2003) Stock Market Cycles, FinancialLiberalization and Volatility, Journal of International Money and Finance.Jel No.C22, G15 Working Paper No.08/03.8. Henery P.B. (1999), ―Stock Market Liberalization, Economic Reform, andEmerging Market Equity Prices‖,Forthcoming, Journal of Finance.9. Kumari S. and Shnmugham R. (2007), ―Behavior of stock returns to theCorporate Bonus Issue Announcements: An Event Study‖, Indian Stock Market:An Empirical Study, Anmol Publications Pvt. Ltd., New Delhi,10. Lam K.,Li W. K. andWong P. S. (1990), ―Price changes and trading volumerelationship in the Hong Kong stock market‖, Business and Economics, AsiaPacific Journal of Management, Volume 7, No. 2, Page no. 25-42, DOI:10.1007/BF01951477. www.springerlink.com/index/NWNX3811568J1241.pdf11. Mahajan S. & Singh B. (2008), ―Trading Volume and Return Volatility Dynamicsin Indian Stock Market‖, The ICFAI Journal of Applied Finance, Vol. 14, No. 2(Feb.), Page No. 53-73.12. Mittal R.K. (1995), ―New Findings on Price Changes and Trading VolumeRelationship in the Indian Stock Market‖, Finance India, Vol. IX, No. 2(June),Pages 337-342.13. SelvamM., IndhumathiG., BabuM. and KogilaN. (2010), ―Impact of DividendAnnouncement on Share Price: An Evaluation Study‖, Indian Journal of Finance,Vol. 4, No. 4, April 2010.14. Talla M. and Al-Deehani (2007), ―Modeling Asymmetry in the Price-VolumeRelation: Evidence from Nine Stock Markets‖,Investment Management and FinancialInnovations, Volume 4, Issue 4, 2007.

387www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780APPENDIX15. Tim L. and Paul S.(2004), ―Weather, Stock Returns, and the Impact of LocalizedTrading Behaviour‖, Journal of Financial and Quantitative Analysis, Vol. 39-Issue 02, page no. 343-364 Cambridge University Press16. WongW. K., Tan D. and TianY. (2008), ―Non-linear ACD Model and InformedTrading: Evidence from Shanghai Stock Exchange‖, Cardiff Business School CardiffUniversity, ISSN 1749-6101 , April 2008, www.adelaide.edu.au/directory/syed.aliTABLE: LIST OF CONSTITUENTS OF BSEThis table provides the list of constituents of 347 stocks of BSC, a value-weighted stock ofBombay Stock Exchange. Data period is Jan. 2002 to Dec. 2010.Company Name Company Name Company NameAshok Leyland Ltd Aplab Ltd. Jhagadia Copper Ltd.Atlas Cycles (Haryana) Ltd.Eicher Motors Ltd.Tinplate Co. Of IndiaLtd.Tube Investments OfIndia Ltd.Jindal Saw Ltd.Jindal Steel & Power Ltd.Hero Honda Motors Ltd. Usha Martin Ltd. Jyoti Structures Ltd.Hindustan Motors Ltd.Kinetic Engineering Ltd.Kinetic Motor Co. Ltd.L M L Ltd.Maharashtra Scooters Ltd.Uttam Galva SteelsLtd.V B C Ferro AlloysLtd.Welspun Corp Ltd.Western India ShipyardLtd.Zenith Birla (India)Ltd.Kalpataru PowerTransmission Ltd.Kalyani Steels Ltd.Kirloskar Ferrous Inds.Ltd.L G Balakrishnan& Bros.Ltd.Lakshmi Precision ScrewsLtd.Mahindra & Mahindra Ltd.Majestic Auto Ltd.S M L Isuzu Ltd.Cochin Minerals &Rutile LtdGujarat Mineral Devp.Corpn. Ltd.Gujarat N R E CokeLtd.Lanco Industries Ltd.Lloyds Metals &Engineers Ltd.Lloyds Steel Inds. Ltd.

388www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Scooters India Ltd.Stone India Ltd.T V S Motor Co. Ltd.Tata Motors Ltd.Ajanta Pharma LtdAndhra Petrochemicals Ltd.Apollo Tyres Ltd.Himadri Chemicals&Inds. Ltd.Hindustan OilExploration Co. Ltd.Insilco Ltd.Oil & Natural GasCorpn. Ltd.Oriental Carbon &Chemicals Ltd.Selan ExplorationTechnology Ltd.Sesa Goa Ltd.M M Forgings Ltd.Magna Electro CastingsLtd.Maharashtra SeamlessLtd.Mahindra Ugine Steel Co.Ltd.Man Industries (India)Ltd.Metalman Industries Ltd.Monnet Ispat& EnergyLtd.Arvind Remedies Ltd. A C C Ltd Mukand Ltd.Asian Paints Ltd.Avon Organics Ltd.Ambuja Cements Ltd.Andhra Cements Ltd.National Aluminium Co.Ltd.National Steel & AgroInds. Ltd.B A S F India Ltd. Aro Granite Inds. Ltd. Nile Ltd.Bharat Petroleum Corpn. Ltd. Asahi India Glass Ltd. Oil Country Tubular Ltd.Cadila Healthcare Ltd. Asian Star Co. Ltd. Oricon Enterprises Ltd.Castrol India Ltd.Bell Ceramics Ltd.Orissa Sponge Iron &Steel Ltd.Ceat Ltd. Birla Corporation Ltd. P G Foils Ltd.Chambal Fertilisers & ChemicalsLtd.Borosil Glass WorksLtd.P S L Ltd.Chennai Petroleum Corpn. Ltd.Cipla Ltd.Clariant Chemicals (India) Ltd.CarborundumUniversal Ltd.Century Textiles&Inds. Ltd.Classic DiamondsPennar Industries Ltd.Rajratan Global Wire Ltd.Rapicut Carbides Ltd.

389www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780(India) Ltd.Colgate-Palmolive (India) Ltd. Deccan Cements Ltd. Rathi Steel & Power Ltd.D C W Ltd.Dabur India Ltd.Everest Industries Ltd.Goldiam InternationalLtd.Ratnamani Metals &Tubes Ltd.Ruchi Strips & AlloysLtd.Dai-Ichi Karkaria Ltd. Graphite India Ltd. SathavahanaIspat Ltd.Deepak Fertilisers& PetrochemicalsCorpn. Ltd. Grindwell Norton Ltd. Shah Alloys Ltd.Dr. Reddy'S Laboratories Ltd.E P I C Enzymes, Pharmaceuticals&Indl. Chemicals Ltd.Gujarat Sidhee CementLtd.H E G Ltd.Shetron Ltd.Shivalik Bimetal ControlsLtd.Essar Oil Ltd. H S I L Ltd. Siddhartha Tubes Ltd.Excel Industries Ltd.G H C L Ltd.Garware Polyester Ltd.Glaxosmithkline PharmaceuticalsLtd.Godrej Consumer Products Ltd.Heidelberg CementIndia Ltd.I F G L RefractoriesLtd.India Cements Ltd.Indian Hume Pipe Co.Ltd.J K Lakshmi CementLtd.Steel Authority Of IndiaLtd.Sterling Tools Ltd.Sunflag Iron & Steel Co.Ltd.Tata Metaliks Ltd.Tata Sponge Iron Ltd.Gufic Biosciences Ltd. Kajaria Ceramics Ltd. Tata Steel Ltd.Gujarat Narmada Valley FertilizersCo. Ltd.Kakatiya Cement Sugar&Inds. Ltd.Tayo Rolls Ltd.Gujarat State Fertilizers &Chemicals Ltd.Hindustan Organic Chemicals Ltd.La Opala R G Ltd.Madhav Marbles &Granites Ltd.S P E L SemiconductorLtd.Samtel Color Ltd.Hindustan Petroleum Corpn. Ltd. Madras Cements Ltd. Sharp India Ltd.

390www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Hindustan Unilever Ltd.Mangalam Cement Ltd. Shyam Telecom Ltd.Ipca Laboratories Ltd.J B Chemicals & PharmaceuticalsLtd.Jain Irrigation Systems Ltd.Murudeshwar CeramicsLtd.N C L Industries Ltd.O C L India Ltd.Siemens HealthcareDiagnostics Ltd.Smartlink NetworkSystems Ltd.Switching TechnologiesGunther Ltd.Kopran Ltd. Orient Abrasives Ltd. V X L Instruments Ltd.Lupin Ltd.Mangalore Chemicals & FertilizersLtd.Orient Ceramics &Inds.Ltd.Orient Paper &Inds.Ltd.Valiant CommunicationsLtd.Videocon Industries Ltd.Mangalore Refinery &Petrochemicals Ltd. Parekh Platinum Ltd. Vintron Informatics Ltd.Max India Ltd. Prism Cement Ltd. X O Infotech Ltd.Morepen Laboratories Ltd. Rain Commodities Ltd. Zenith Computers Ltd.Nagarjuna Fertilizers & ChemicalsLtd.Rajesh Exports Ltd.Zicom Electronic SecuritySystems Ltd.Nocil Ltd. Ramco Industries Ltd. B F Utilities LtdNovartis India Ltd. Regency Ceramics Ltd. C E S C Ltd.Piramal Healthcare Ltd.Ranbaxy Laboratories Ltd.Rashtriya Chemicals & FertilizersLtd.S B & T InternationalLtd.Sagar Cements Ltd.Saint-Gobain SekuritIndia Ltd.Gujarat Industries PowerCo. Ltd.Nava Bharat VenturesLtd.Neyveli Lignite Corpn.Ltd.Reliance Industries Ltd.Shree Rama Multi-Tech Ltd.Shree Cement Ltd.Shree Digvijay CementCo. Ltd.Reliance InfrastructureLtd.Tata Power Co. Ltd.Sterling Biotech Ltd. Shrenuj& Co. Ltd. Ahmednagar Forgings Ltd

391www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Sun Pharmaceutical Inds. Ltd. Shyam Star Gems Ltd. AliconCastalloy Ltd.TamilnaduPetroproducts Ltd.Silver Smith India Ltd.Bellary Steels & AlloysLtd.Tata Chemicals Ltd. Somany Ceramics Ltd. Bhushan Steel Ltd.Uflex Ltd.Vidhi Dyestuffs Manufacturing Ltd.Wockhardt Ltd.Su-Raj Diamonds &Jewellery Ltd.Suashish DiamondsLtd.Sunraj DiamondExports Ltd.Bhuwalka Steel Inds. Ltd.Binani Industries Ltd.Coventry Coil-O-Matic(Haryana) Ltd.Aarvee Denims & Exports Ltd Titan Industries Ltd. De Nora India Ltd.Alok Industries Ltd. Triveni Glass Ltd. Electrosteel Castings Ltd.Amarjothi Spinning Mills Ltd. Vaibhav Gems Ltd. Ensa Steel Inds. Ltd.Amit Spinning Inds. Ltd. Vesuvius India Ltd. Expo Gas Containers Ltd.Arvind Ltd. Visaka Industries Ltd. Ferro Alloys Corpn. Ltd.Ashima Ltd.Bhilwara Spinners Ltd.D C M Ltd.EskayK'N'It (India) Ltd.Eurotex Industries & Exports Ltd.AnsalBuildwell LtdAnsal Housing &Construction Ltd.Ansal Properties &Infrastructure Ltd.Arihant Foundations &Housing Ltd.D S KulkarniDevelopers Ltd.Gandhi Special TubesLtd.Gillette India Ltd.Gontermann-Peipers(India) Ltd.Hind AluminiumInds.Ltd.Hindalco Industries Ltd.G T N Industries Ltd.Gangotri Textiles Ltd.H B Estate DevelopersLtd.Lok Housing &Constructions Ltd.Hindustan Tin Works Ltd.Hindustan Zinc Ltd.Ginni Filaments Ltd. Peninsula Land Ltd. India Foils Ltd. [Merged]H P Cotton Textile Mills Ltd.Radhe DevelopersInvestment & Precision

392www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Hindoostan Spinning &Wvg. MillsLtd.(India) Ltd.RajeswariInfrastructure Ltd.Castings Ltd.Ispat Industries Ltd.Indo Count Inds. Ltd. Unitech Ltd. J S W Steel Ltd.K G Denim Ltd. A B C India Ltd Jai Corp Ltd.Lakshmi Mills Co. Ltd.Balurghat TechnologiesLtd.JayaswalNecoInds. Ltd.Loyal Textile Mills Ltd. Blue Dart Express Ltd. I T I Ltd.Malwa Cotton Spg. Mills Ltd.Maral Overseas Ltd.Minaxi Textiles Ltd.Nagreeka Exports Ltd.Nahar Spinning Mills Ltd.Chowgule SteamshipsLtd.Container Corpn. OfIndia Ltd.Dredging Corpn. OfIndia Ltd.Essar Shipping Ports &Logistics Ltd.Garware OffshoreServices Ltd.J C T Electronics Ltd.Lakshmi ElectricalControl Systems Ltd.Linaks MicroelectronicsLtd.Mirc Electronics Ltd.Moser Baer India Ltd.Patspin India Ltd. Gati Ltd. Mro-Tek Ltd.Prime Urban Development IndiaLtd.Great Eastern ShippingCo. Ltd.Nelco Ltd.R S W M Ltd. Jagson Airlines Ltd. Opto Circuits (India) Ltd.S Kumars Nationwide Ltd. Mercator Lines Ltd. P C S Technology Ltd.Sambandam Spinning Mills Ltd.Patel IntegratedLogistics Ltd.Punjab CommunicationsLtd.Shree Rajasthan Syntex Ltd. S K S Logistics Ltd. Rama Vision Ltd.Siyaram Silk Mills Ltd.Soma Textiles &Inds. Ltd.Spentex Industries Ltd.Shipping Corpn. OfIndia Ltd.Shreyas Shipping &Logistics Ltd.Sical Logistics Ltd.Computer Point Ltd.Cosmo Ferrites Ltd.Dynacons Systems &

393www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Sri Lakshmi Saraswathi Textiles(Arni) Ltd.Super Sales India Ltd.Super Spinning Mills Ltd.Spicejet Ltd.Transport CorporationOf India Ltd.Varun Shipping Co.Ltd.Solutions Ltd.Gamma Infoway ExaltLtd.Gemini CommunicationLtd.Himachal FuturisticCommunications Ltd.Suryajyoti Spinning Mills Ltd. Asian Electronics Ltd. Hind Rectifiers Ltd.Suryavanshi Spinning Mills Ltd.T T Ltd.Avantel Ltd.B P L Ltd.Honeywell AutomationIndia Ltd.A D C IndiaCommunications LtdVardhmanPolytex Ltd. Bharat Electronics Ltd. A G C Networks Ltd.Vardhman Textiles Ltd.Winsome Yarns Ltd.Centum ElectronicsLtd.Cerebra IntegratedTechnologies Ltd.AccelTransmatic Ltd.

394www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTPROBLEMS AND PROSPECTS OF RETAIL BUSINESS –A STUDY WITH REFERENCE TO SIVAKASI TALUKDR. M. SELVAKUMAR*; DR. A. MUTHUMONI***Assistant Professor, PG and Research Department of Commerce,Ayya Nadar Janaki Ammal College, Sivakasi – 626124.**Principal, M.G.R. College of Arts and Science,Hosur, Tamilnadu.Retail industry is the largest industry in India, with an employment of around 8 per cent toover 10 per cent of the country's Gross Domestic Product. Retail industry in India is expectedto rise 25 per cent yearly being driven by strong income growth, changing lifestyles, andfavorable demographic patterns.It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.India retail industry is one of the fastest growing industries with revenue expected to amountUS$ 320 billion and is increasing at a rate of 5 per cent yearly. A further increase of 7-8 percent is expected in the industry of retail in India by growth in consumerism in urban areas,rising incomes, and a steep rise in rural consumption. It has further been predicted that theretailing industry in India will amount to US$ 21.5 billion by 2010 from the current size ofUS$ 7.5 billionFor a retailer, it is very difficult to retain the potential buyer. Because the buyers are scatteredaccording to their convenience of purchasing. In order to keep possession of their salesvolume, the retailer has to face a stiff competition in the retail business. Majority of functionshave to be performed by owners themselves due to limitation of resources. So the researchermade sincere attempt to analyse the Problems and Prospects faced by retailer in the studyarea, during the course of starting and managing their enterprise.___________________________________________________________________________INTRODUCTIONRetail industry is the largest industry in India, with an employment of around 8 per cent toover 10 per cent of the country's Gross Domestic Product. Retail industry in India is expectedto rise 25 per cent yearly being driven by strong income growth, changing lifestyles, andfavorable demographic patterns.It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200billion. India retail industry is one of the fastest growing industries with revenue expected toamount US$ 320 billion and is increasing at a rate of 5 per cent yearly. A further increase of7-8 per cent is expected in the industry of retail in India by growth in consumerism in urbanareas, rising incomes, and a steep rise in rural consumption. It has further been predicted thatthe retailing industry in India will amount to US$ 21.5 billion by 2010 from the current sizeof US$ 7.5 billion

395www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Shopping in India has witnessed a revolution with the change in the consumer buyingbehavior and the whole format of shopping also altering. Industry of retail in India which hasbecome modern can be seen from the fact that there are multi- stored malls, huge shoppingcenters, and sprawling complexes which offer food, shopping, and entertainment all under thesame roof.India retail industry is expanding itself most aggressively, as a result a great demandfor real estate is being created. Indian retailers preferred means of expansion is to expand toother regions and to increase the number of their outlets in a city. It is expected that by 2010,India may have 600 new shopping centers.In the Indian retailing industry, food is the most dominating sector and is growing ata rate of 9 per cent annually. The branded food industry is trying to enter the India retailindustry and convert Indian consumers to branded food. Since at present 60 per cent of theIndian grocery basket consists of non- branded items. India retail industry is progressingwell and for this to continue retailers as well as the Indian government will have to make acombined effort.SCOPE OF THE INDIAN RETAIL MARKETThe scope of the Indian retail market is immense for this sector is poised for thehighest growth in the next 5 years. The India retail industry contributes 10 per cent of thecountries GDP and its current growth rate is 8.5 per cent. In the Indian retail market the scopefor growth can be seen from the fact that it is increased to US$ 608.9 billion in 2009 fromUS$ 394 billion in 2005.The organized retailing sector in India is only 8 per cent and is expected to rise to 25-30 per cent by the year 2012. There are under construction at present around 325departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is atremendous scope for growth in the Indian retail market.The growth of scope in the Indian retail market is mainly due to the change in theconsumers‟ behavior. For the new generation have preference towards luxury commoditieswhich have been due to the strong increase in income, changing lifestyle, and demographicpatterns which are favorable.STATEMENT OF THE PROBLEMFor a retailer, it is very difficult to retain the potential buyer. Because the buyers arescattered according to their convenience of purchasing. In order to keep possession of theirsales volume, the retailer has to face a stiff competition in the retail business. Majority offunctions have to be performed by owners themselves due to limitation of resources. So theresearcher made sincere attempt to analyse the Problems and Prospects faced by retailer inthe study area, during the course of starting and managing their enterprise.OBJECTIVES OF THE STUDYThe main objectives of the study are To study the socio – economic conditions of the retailer in Sivakasi Taluk

396www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780 To known the business profile of the retailers in Sivakasi Taluk To analyse the problems faced by the retailers in Sivakasi Taluk To analyse the opportunities and prospects of retail Business To offer suggestions on the basis of the findings of the study.LIMITATION OF THE STUDYDue to paucity of time, the present study is conducted only retailers and nor coveredthe performance of customers and their satisfaction in retailing. This study is restricted toSivakasi Taluk only and also applicable for a short period only.METHODOLOGY OF THE STUDYThe study is designed as a descriptive and analytical one. Considerable data areavailable both from primary and secondary data . The study is carried out with the help ofsample survey. The research problem and interview schedule have been formulated andtested on the basis of the research objectives.SOURCES OF DATAThe required data for the present study are collected both from Primary andSecondary Sources. Primary data are collected during 2009 with the help of scheduledesigned for the Interview Schedule. The Secondary data are also collected from the variousstandard text books, research articles, reports, leading newspapers, magazines and journals.These have constituted a supportive literature for the purpose of carrying out the researchwork.SAMPLING DESIGNThe population of the current study is the retailer in Sivakasi Taluk. It is not feasibleto collect data from the entire population. Therefore the researcher has used the samplingtechnique for data collection. The researcher has selected 200 sample retailers on the basis ofconvenience sampling technique.PLAN OF ANALYSISTo analyse and interpret the collected data, the researcher has been used the tools likePercentages, Weighted Arithmetic Average Method, Chi- Square Test, Kolmogrov – Smirnov(K-S) Test, Garrett Ranking Method, Sign Test .A five point scale has been used to measure the level of satisfaction in retail business.Chi- Square test has been applied to test the significant difference in the level of satisfaction.Sign test, one of the non- parametric methods, has been used to know whether there isany significant difference between the “Yes” and “No” responses of retailers for each of thegiven statements regarding problems faced by the retailer in retail business.

397www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Kolmogrov- Smirnov (K-S) Test is used to analyse the Prospects of retail business inSivakasi Taluk.HYPOTHESES OF THE STUDYThe hypotheses framed for this study are as follows‣ There is no significant difference in the opinion of retailers about the prospectsof retail business in Sivakasi Taluk.‣ There is no significant difference in the opinion of retailers about theirproblems.GENDER WISE CLASSIFICATION OF THE RESPONDENTSThe researcher has classified the respondents on the basis of gender. The gender wiseclassification of respondents is displayed in Table 1TABLE 1GENDER WISE CLASSIFICATION OF THE RESPONDENTSS.NO. Gender No. of Respondents Percentage1.Male18592.502.Female157.50Source : Primary DataTotal 200 100.00The above table shows that out of 200 respondents, 185 are male respondents (92.5%) and 15 respondents are female (7.5 %)COMMUNITY WISE CLASSIFICATION OF THE RESPONDENTSThe researcher has also analysed the community of the respondents. The dataregarding community of the respondents is highlighted in Table 3TABLE 3COMMUNITY WISE CLASSIFICATION OF THE RESPONDENTSS.NO. Community No. of Respondents Percentage1.Forward2010.002.Most Backward5829.003.Backward8241.00

398www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57804. SC / ST 40 20.00Source : Primary DataTotal 200 100.00It is lucid from the above Table 3 that 82 (41%) respondents are backwardcommunity,58 (29%) respondents are belong to backward community, 40 (20%) of them areSC / ST and 20 (10% ) respondents are forward community.RELIGION WISE CLASSIFICATION OF THE RESPONDENTSarea.Table.4 points out the Religion wise classification of the respondents in the studyTABLE 4RELIGION WISE CLASSIFICATION OF RESPONDENTSS.NO. Particulars No. of Respondents Percentage1.Hindu13567.502.Muslim4522.503.Christian2010.00Source : Primary DataTotal 200 100.00The above Table 4 brings in view that, 135 (67.50%) respondents are Hindu, 45respondents (22.50%) are Muslim, and the remaining 20 (10%) of them are Christian.LITERACY LEVEL OF THE RETAILERSThe literacy level is one of the important factors which also influence the behaviour,tastes, living standards and aspirations. To ascertain the literacy level of the respondents, astudy was made and the findings are presented in the following Table 5

399www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 5LITERACY LEVEL OF RESPONDENTSS.NO. Particulars No. of Respondents Percentage1.Up to SSLC3517.002.HSC2512.503.Undergraduate6532.504.Postgraduate4221.005.Diplomo2814.006.Professional52.50Total 200 100.00Source : Primary DataIt is observed from the above table that, exactly 32.5 per cent of the respondents areundergraduate, 21 per cent of the respondents are Post graduate, 17.5 per cent of therespondents are having qualification up to SSLC, 14 per cent of the respondents are Diplomaholders, 12.5 per cent of the respondents are Higher Secondary and remaining 2.5 per cent ofthe respondents are Professionals.INCOME PROFILE OF THE RESPONDENTSMoney is an important source to make use of any things. Generally the rich people arehaving higher purchasing power than that of poor people. So the researcher has classified thevarious informants according to their level of income. The following Table 6 bears out anevidence of the data.TABLE 6INCOME PROFILE OF THE RESPONDENTSS.NO. Community No. of Respondents Percentage1.Less than Rs 10,0006733.502.Rs 10,000 – Rs 20,0005527.503.Rs 20,000 – Rs 30,0004321.504.4Rs 30,000 and above3517.50Total 200 100.00Source : Primary Data

400www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Table 6 shows that out of 200 respondents, 33.50 per cent are earning less than Rs10,000 per month, followed by 27.50 per cent of respondents who earn Rs 10,000 to Rs20,000 per month, 21.50 per cent of the respondents earn between Rs 25,000 and Rs 30,000and the remaining 17.50 per cent of the respondents earn Rs 30,000 and above per month.CATAGORIES OF RETAILERSThe researcher categorized the retailers according to the nature of goods and servicesthey deal. The highlights of this analysis is shown in Table 7TABLE 7CLASSIFICATION OF RETAILERS ON THE BASIS OF THE PRODUCT DEALEDS.NO. Particulars No. of Respondents Percentage1.Grocery Shop4522.502.Stationery3216.003.Food157.504.Fireworks157.505.Electronic Products94.506.Textile157.507.Fancy Store115.508.Food wear105.009.Gold & Gift items2512.5010.Medical Products189.0011.Durables52.50Total 200 100.00Source : Primary DataIt is understood from the Table 7 that 45 respondents are Grocery shop retailers whichoccupies 22.50 per cent , 16 per cent of the respondents are Stationery retailers, 12.50 percent of the respondents are Gold and Gift items retailers, 9 per cent of the respondents areMedical products retailers, 7.5 per cent of the respondents are Food, Fireworks, and Textileretailers, 5.50 per cent of the respondents are Fancy store retailers, 5 per cent of therespondents are Footwear retailer, 4.5 per cent of the retailers are Electronic products, andremaining 2.5 per cent of the respondents are Durables retailers.

401www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780PREVIOUS EXPERIENCE OF THE RETAILERThe researcher has also found out the previous experience for doing the business.Table 8 shows the Experience of the retailers in their business.TABLE 8PREVIOUS EXPERIENCE OF THE RETAILERSS.NO. Particulars No. of Respondents Percentage1.Experienced8944.502.Not Experienced11155.50Total 200 100.00Source : Primary DataIt is inferred from the above table that 55.50 per cent of respondents do not haveprevious experience in their business whereas the remaining 44.50 per cent have previousexperience in their business.NATURE OF THE BUSINESSTable 9 represents the information regarding the Nature of Business of the sampleretailers in the study area.TABLE 9NATURE OF BUSINESSS.NO. Particulars No. of Respondents Percentage1.Hereditary15075.002.First Generation5025.00Source : Primary DataTotal 200 100.00The above table upholds that 75 per cent of the respondents are doing the retailbusiness as hereditary and remaining 25 per cent of the respondents are the first generationbusinessman.NATURE OF DECISION MAKINGDecision Making is an important role in business activities. The researcher has alsocollected the information about the business decisions of the retailers. Table 10 reveals thisanalysis.

402www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 10NATURE OF DECISION MAKINGS.NO. Particulars No. of Respondents Percentage1.Independent decision12060.002.Consult with family members4522.503.Consult with employees84.004.Professional advice2713.50Source : Primary DataTotal 200 100.00It is noted from the above table that 120 respondents (60 %) have taken independentdecision; 45 respondents (22.50%) have consult with family members; 27 respondents(13.50%) seek professional advice for decision and remaining 8 respondents (4%) haveconsulted with employees.BUSINESS AFFECT THE FAMILY LIFEThe researcher has investigated about the business which affects the family life ofthe respondents. The piece of information about the influence of business on family isdisplayed in Table 11TABLE 11BUSINESS AFFECT THE FAMILY LIFES.NO. Particulars No. of Respondents Percentage1.Affect3216.002.Not Affect17889.00Total 200 100.00Source : Primary DataThe Table 11 elicits the fact that 178 respondents (89%) feel that the businessactivities not affect the family life and remaining 32 respondents (16%) feel that the businessactivities affect the family life.

403www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FORM OF HELP IS PROVIDED BY FAMILY MEMBERSManpower is the main pillar of an organization. Depending upon the needs andrequirements, family members help the retailers. Table 12 shows the form of help providedby the family members.TABLE 12FORM OF HELP PROVIDED BY THE FAMILYS.NO. Particulars No. of Respondents Percentage1.Manual Help5227.512.Financial Help7539.683.Advice3619.054.Business Tips2412.705Others Helps21.06Source : Primary DataTotal 189 100.00Note : Out of 200 respondents only 189 respondents have received family support.It has been found from the above table that out of 189 respondents, 39.68 per cent ofrespondents have received financial help from their family members, 27.51 per cent ofrespondents have received manual help, 19.05 per cent of respondents have received advicefrom their family members and 12.70 per cent of respondents have received business tipsfrom their of family members and remaining 1.05 per cent of respondents have getting otherhelps from their family.PLACE OF ESTABLISHMENTThe physical environment exercises a significant role on the attitude of the customers.Hence the researcher analyses the place of establishment and its influence in business of retailshop. Table 13 exhibits the details about the place of retail shop.

404www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 13PLACE OF ESTABLISHMENTS.No. Particulars No. of Respondents Percentage1.Home based3517.502.Nearer to residence4422.003.Industrial area2512.504.Residential area9648.00Total 200 100.00Source : Primary DataIt is lucid from the Table 13 that 96 (48%) respondents have the business units inresidential area, 44 (22%) respondents locate the business units nearer to their residence,35(17.5%) respondents do the business home based and remaining 25 (12.5% ) respondentshave the business units in industrial area.FORM OF ORGANISATIONTable 14 shows the form of organization of retail business.TABLE 14FORM OF ORGANISATIONS.No. Particulars No. of Respondents Percentage1.Sole Trader11055.002.Partnership8542.503.Limited company52.504.Others--Total 200 100.00Source : Primary DataIt is clear from the Table 14 that 55 per cent of the respondents are doing the businessunder sole trader form whereas 42.50 per cent of the respondents are forming the partnershipfor doing the business, 2.50 per cent of the respondents are running the business as limitedcompany form

405www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780REASONS FOR SELECTING RETAIL BUSINESSThe retailers are choosing retail business for different reasons. The researcher hasidentified some reasons like previous experience, technical qualification, and family businessand so on. Moreover, to identify the reason which is the most vital one to the researcher hasused Garret‟s Ranking Test. Table 15 shows the responses of retailers about the reason forselecting retail business in Sivakasi Taluk.TABLE 15REASONS FOR SELECTING RETAIL BUSINESSRankS.No.Reason1 2 3 4 5 6 7Total1. Previous Experience 42 25 37 22 28 25 21 2002. TechnicalQualifiaction 31 26 33 35 21 20 34 2003. Family Business 39 48 28 32 16 15 22 2004.Support from familymembers26 43 18 22 38 28 25 2005.Owingfacilitiesinfrastructure21 37 40 39 14 21 28 2006.7.Demand for the productor servicesTo avail Governmentconcessions18 12 28 13 43 39 47 20023 9 16 37 40 52 23 200Total 200 200 200 200 200 200 200Source : Primary DataThere are large numbers of reasons for choosing the retail business. Seven reasonsthat choosing retail businesses by the retailers. They are previous experience, technicalqualification, family business, and support from family members, owing infrastructurefacilities, demand for the product or services, to avail government concessions. Therespondents are asked to rank the reasons on their willingness. The opinion of therespondents is given in Table 15.Table 16 furnishes the Garret‟s scores awarded to each reason for selecting the retailbusiness. The highest score is awarded to “Family Business”, followed by “PreviousExperience”, the least score is awarded to “Demand for the product or service”.

406www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 16REASONS FOR SELECTING RETAIL BUSINESS – GARRETS RANKINGS.No. Reasons Garrets ScoreAverageScoreGarretsRank1. Previous Experience 10755 53.78 II2. Technical Qualifiction 10180 50.90 V3. Family Business 11170 55.85 I4. Support from family members 10200 51.00 IV5. Owing infrastructure facilities 10324 51.62 III6. Demand for the product orservices736 43.68 VII7. To avail Government concessions 9235 46.12 VISource: Primary DataTable 16 shows the Garret Scores and the average scores. The average scores areranked according to their values. The first rank is given to” Family Business”, “PreviousExperience” got the second rank, “Owing infrastructure facilities” places the third rank, thefourth rank is given to “Support from family members”, “Technical Qualification” got thefifth rank, “To avail Government concessions” got the sixth rank and the last rank is given to“Demand for the product or services”.UTILISATION OF THE CAPACITYThe research study has brought lime light on information relating to the utilization ofentire capacity made by the retailer. This detail is presented in Table 17TABLE 17UTILISATION OF THE CAPACITYS.No. Particulars No. of Respondents Percentage1.Utilised16080.002.Not utilized4020.00Source : Primary DataTotal 200 100.00

407www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780It is observed from the Table 17 that 160 respondents (80%) have utilized their entirecapacity and remaining 40 respondents (20%) have not utilized their entire capacity.CAUSES FOR UNDER UTILISATIONThe researcher has identified the causes for under utilization of resources. Table 18shows the details of under utilization of resources. From the above details the researcher hasenlisted the causes as underTABLE 18RANKING OF CAUSES FOR UNDER UTILISATIONS.NO. Particulars Weighted Arithmetic Mean Rank1. Non availability of raw material 3.75 32. Stock accumulation 3.40 43. Lack of working capital 4.40 14. Labour problems 3.85 25. Technical problems 2.55 66. Low profit margin 3.05 5Source : Processed DataIt is inferred from the ranking proposal that the lack of working capital got the rankwith theWeighted Arithmetic Mean of 4.40, labour problem got second rank with 3.85, Nonavailability of raw material got third rank with the score value of 3.75 and least score value2.55 is got by technical problems.SOURCES OF PURCHASE OF MATERIALSGenerally the retailers have many sources to purchase the materials of the business.To know the major source of purchase, this analysis is made and presented in Table 19.TABLE 19SOURCES OF PURCHASE OF MATERIALS.No. Particulars No. of Respondents Percentage1.Open Market17386.502.Government Quota115.503.Other Sources168.00

408www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Source : Primary DataTotal 200 100.00It is clearly exhibited in the above table that 173 (86.50%) respondents havepurchased the material from the open market, 16 respondents have procured the materialsfrom other source like directly from the producers or manufacturers and only 11 retailerspurchased the raw material from government quota.MODE OF PURCHASESThe retailers are purchasing the raw material both for cash and credit. It dependsupon the quantum of purchase. The researcher has analysed and the results are exhibited inthe following Table 20TABLE 20MODE OF PURCHASESS.No. Particulars No .of Respondents Percentage1.Cash5226.002.Credit7839.003.Both7035.00Total 200 100.00Source : Primary DataIt is apparent from the above Table 20 that 78 respondents (39%) have purchased theproducts under credit, 70 respondents (35%) have purchased the materials for both cash andcredit terms and remaining 52 respondents (26%) have purchased products only against cashSOURCES OF FINANCEFinance holds the key to all business activity. No business activity can ever prosperwithout adequate financial support. The researcher has made an attempt to analyse thesources of finance for retail business in the Sivakasi Taluk. The following Table 21 shows thesources of finance.

409www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 21SOURCES OF FINANCES.No. Particulars No. of Respondents Percentage1.Owned funds4522.502.Borrowed funds9547.503.Owned and Borrowed6030.00Source : Primary DataTotal 200 100.00It is clear from the Table 21 that 47.50 per cent of respondents have used borrowedfunds, 30 per cent of respondents have used both owned and borrowed funds for theirbusiness and remaining 22.50 per cent of respondents have used owned funds for theirbusiness.SOURCES OF BORROWED FUNDSUsually the funds are borrowed from commercial banks, money lenders, friends,relatives and so on. The researcher has analysed and presented the resulted in Table 22TABLE 22SOURCES OF BORROWINGSS.No. Particulars No .of Respondents Percentage1.Relatives3233.682.Friends2627.373.Commercial Banks88.434.Co-operative Banks44.215.Financial Institutions99.476.Money Lenders1616.847Any other--Total 95 100.00Source:PrimaryDataNote : Out of 200 respondents, 95 respondents have used borrowed funds.

410www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780It is evident from the above Table 22 that, 33.68 per cent of respondents haveborrowed funds from their relatives, 27.37 per cent of respondents have borrowed funds fromfriends, 16.84 per cent of respondents have borrowed funds from money lenders. 9.47 percent of respondents have borrowed funds from financial institutions, 8.43 per cent ofrespondents have borrowed funds from commercial banks and remaining 4.21 per cent ofrespondents have borrowed funds from co-operative banks.AVAILMENT OF GOVERNMENT ASSISTANCETable 23 represents the information regarding the avail of government assistance bythe retailers.TABLE 23AVAILMENT OF GOVERNMENT ASSISTANCES.No. Particulars No. of Respondents Percentage1.Availed7236.002.Not Availed12864.00Total 200 100.00Source : Primary DataThe above table upholds that 64 per cent of respondents are not availed thegovernment assistance and remaining 36 per cent of respondents are availed governmentassistance for the business purposes.FORMS OF ASSISTANCEThe researcher has focused the information about forms of assistance availed by theretailers. Table 24 shows the information about the form of assistance.TABLE 24FORMS OF ASSISTANCES.No. Particulars No. of Respondents Percentage1.Loan2230.562.Subsidy1825.003.Power concession3244.444.Any other--Source : Primary DataTotal 72 100.00

411www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Note : Out of 200 respondents, 72 respondents have avail government assistanceIt is observed that 32 respondents (44.44%) has got power concession fromgovernment assistance, 22 respondents (30.56%) got loan from government institution andremaining 18 respondents (25%) got government subsidy for their business.MOTIVATING FACTORS OF RETAILERSSeveral factors motivate the respondents to select the retail business. The distributionof respondents according to the motivating factors is presented in Table 25TABLE 25MOTIVATING FACTORSS.No. Particulars No. of Respondents Percentage1.Partners5829.002.Wife or Husband3618.003.Other family members2211.004.Friends4723.505.Relatives2814.006.Government officials94.507.Others--Source : Primary DataTotal 200 100.00It is evident from the Table 25 that 29 per cent of respondents are motivated by theirparents, 23.50 per cent of respondents are motivated by their friends, 18 per cent ofrespondents are motivated their wife or husband, 14 per cent of respondents are motivatedfrom relatives, 11 per cent of respondents are motivated their family members and remaining4.50 per cent of respondents are motivated by government officials to become retailers.PROBLEMS OF RETAILERSThe retailers have so many problems out of which the research taken into account theproblems like Personal, Labour, Marketing and Finance. The details of problems of retailersare given in Table 26

412www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 26PROBLEMS OF RETAILERSS.No.ProblemsNo.RespondentsTotalRespondentsPercentage1Personal Problems182200912Labour Problems17520087.53Marketing Problems2002001004Finance Problems200200100Source: Primary DataIt is observed from the above table that 91 per cent and 87.5 per cent of retailers facethe personal problems and labour problems respectively. The above table also reveals that100 per cent retailers face marketing and finance problems in their retail businessOPINION OF RETAILERS ABOUT PERSONAL PROBLEMSIn order to know the Personal Problem faced by the retailers they were given 11statements and were asked about their opinion. The responses of retailers about PersonalProblems are shown in Table 27TABLE 27OPINION OF RETAILERS ABOUT PERSONAL PROBLEMSS.No Particulars Yes No Total1. Poor risk taking ability 112(61.54)2. Lack of proper training * 49(26.92)70(38.46)133(73.08)182(100)182(100)3. Lack of leisure* 57(31.32)4. Health problems 108(59.34)125(68.86)74(40.66)182(100)182(100)5. Excessive burden of work andresponsibility132(72.53)50(27.47)182(100)

413www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57806. Excessive tensions and challenges 175(96.15)7. Lack of knowledge about competition 158(86.81)8. Lack of knowledge about technology 119(65.38)9. Occupational mobility 144(79.12)10. Dual duties 111(60.99)11. Non co-operation from family members 75(41.21)Source : Primary DataNote : The figures in brackets show percentage to total7(3.85)24(13.19)63(34.62)38(20.88)71(39.01)107(5.79)182(100)182(100)182(100)182(100)182(100)182(100)Table 27 shows the details about the Personal problems of retailers in Sivakasi.Among 182 retailers, those who have the personal problems, 112 respondents (61.54% ) havethe problem of “Proper risk taking ability”, 49 respondents (26.92%) have the problem of“Lack of proper training”, 57 respondents (31.32%) have the problem of “Lack of leisure”,108 respondents (59.34% ) have the problem of “Health problem”, 132 respondents (72.53%) have the problem of “Excessive burden of work and responsibility”, 175 respondents(96.15%) have the problem of “Excessive tensions and challenges”, 158 respondents(86.81%) have the problem of “Lack of knowledge about competition”, 119 respondents(65.38% ) have the problem of “Lack of knowledge about the various improved technology”,144 respondents (79.12% ) have the problem of “Occupational mobility”, 111 respondents(60.99% ) have the problem of “Dual duties” and remaining 75 respondents (41.21%) havethe problem of “Non co-operation from family members”.OPINION OF RETAILERS ABOUT LABOUR PROBLEMSIn order to know the Labour problems in Sivakasi Taluk, the retailers were given 6statements and were asked about their opinion. These responses of retailers about Labourproblems are shown in Table 28TABLE 28OPINION OF RETAILERS ABOUT LABOUR PROBLEMSS.No. Particulars Yes No Total1. Absenteeism120(68.59)55(48.57)175(100)

414www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802. Labour Turn over*72(41.15)103(58.85)175(100)3. Union Activities * 45(25.71)130(74.29)175(100)4. Retention of Labour*32(18.29)143(81.71)175(100)5. Negative attitude of Labour144(82.29)31(17.71)175(100)6. Higher Wages111(63.43)64(36.57)175(100)Source:PrimaryDataNote: The figures in the brackets show percentage to totalTable 28 shows the details about the Labour Problems of retailers in Sivakasi Taluk.Among 175 retailers, those who have the Labour problems, 120 respondents (68.59%) havethe problem of “Absenteeism of Labour”, 72 respondents (41.15%) have the problem of“Labour Turn Over”, 45 respondents (25.71%) have the problem of “Union Activities”, 32respondents (18.29 %) have the problem of “Retention of Labour”, 144 respondents (82.29%)have the problem of “Negative attitude of Labour” and remaining 14 respondents (63.43% )have the problem of “Higher Wages”.OPINION OF RETAILERS ABOUT MARKETING PROBLEMSIn order to know the Marketing problems in Sivakasi Taluk, the retailers were given 5statement and were asked about their opinion. These responses of retailers about Marketingproblems are shown in Table 29TABLE 29OPINION OF RETAILERS ABOUT MARKETING PROBLEMSS.No. Particulars Yes No Total1.Competition from other retailers168(84.00)32(16.00)200(100)2.Competition from Supermarkets175(87.50)25(12.50)200(100)3.Lack of information about changing market133(66.50)67(33.50)200(100)4. Availability of sub standard product in themarket144(72.00)56(28.00)200(100)

415www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57805.Credit sales180(90.00)20(10.00)200(100)Source : Primary DataNote : The figures in the brackets show percentage to totalTable 29 show the details about the Marketing Problems of retailers in SivakasiTaluk. Among 200 retailers, those who have the Marketing Problems, 168 respondents(84% ) have the problem of “Competition from other retailers”, 175 respondents (87.50%)have the problem of “Competition from Supermarkets”, 133 respondents (66.50%) have theproblem of “Lack of information about changing market”, 144 respondents (72%) have theproblem of “Availability of sub standard product in the market” and remaining 180respondents (90% ) have the problem of “Credit Sales”.OPINION OF RETAILERS ABOUT FINANCIAL PROBLEMSIn order to know the Financial problems in Sivakasi Taluk, the retailers were given 6statement and were asked about their opinion. These responses of retailers about Financialproblems are shown in Table 30TABLE 30OPINION OF RETAILERS ABOUT FINANCIAL PROBLEMSS.No Particulars Yes No Total1.Inadequate fixed capital133(66.50)67(33.50)200(100)2.Inadequate working capital170(85.00)30(15.00)200(100)3.Problem of bad debts165(82.50)35(17.50)200(100)4. Difficulties in getting Governmentconcessions/Subsidies183(91.50)17(8.50)200(100)5.Inability to provide securities for loan144(72.00)56(28.00)200(100)6. Reluctance of financial Institutions toextend credit to retailers175(87.50)25(12.50)200(100)Source :PrimaryDataNote : The figures in brackets show percentage to total.Table 30 shows the details about the Financial Problems of retailers in SivakasiTaluk. Among 200 retailers, those who have the Marketing Problems, 133 respondents(66.50%) have the problem of “Inadeqate of fixed capital”, 170 respondents (85%) have the

416www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780problem of “Inadequate of working capital”, 165 respondents (82.50% ) have the problem of“Bad debts”, 183 respondents (91.50%) have the problem of “Difficulties in Governmentconcessions”, 144 respondents (72 %) have the problem of “Inability to provide securities forloan” and remaining 175 respondents (87.50%) have the problem of “Reluctance of financialInstitutions to extend credit facilities to retailers”.SIGN TESTSign Test is one of the Non – parametric methods in statistical work that can be usedwith either nominal or ordinal data. It requires less restrictive assumptions concerning thelevel of data measurement. The sign test has been used to test the following Null Hypothesiswas framed for this study.There is no significant difference between the „Yes‟ and „No‟ responses of the Retailersregarding the various problems faced by the retailers in Sivakasi Taluk.HYPOTHESIS TESTING PROCEDUREFor recording the responses of 200 sample retailers, „+‟ Sign will be recorded if theretailers response is „Yes‟ for each statement framed for this study or a „-‟ recorded if theretailers response is „No‟ for that statement. Using this procedure the responses of all thesample retailers are recorded in terms of „+‟ or „-‟ signs.If the difference is due to chance effects, the probability of a „+‟ sign for anystatement is 0.50 as is the probability for „-‟ sign.The purpose of this study is to determine whether or not the „Yes‟ and „No‟ responsesof retailers for each statement are equal. Letting „P‟ indicate the proportion of the retailersresponse „Yes‟ we would like to test the following hypothesis:HypothesisNull hypothesis H o : P = .50Alternate hypothesis H 1 : P = .50ConclusionNo Significant difference in the responses ofRetailersA Significant difference in the responses ofRetailersSign Test can be applied for the small sample case ( n < 20 ) and for large sample case( n > 20 ). Here „n‟ refers to number of retailers who responded to each statement as „Yes‟and „No‟. For all the statements which relate to Problems faced by Retailers for this study, thenumber of „Yes‟ and „No‟ responses of employees are greater than 20 that is n >20 ( largesample).LARGE SAMPLEUsing the Null Hypothesis H o : P = .50 and a sample size n > 20 the normalapproximation of the sampling distribution for the number of „+‟ sign as follows:Mean µ = 0.5n

417www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Standard Deviation σ = √ 0.25nThe value of standardized test statistic „Z‟ is calculated as follows:Number of „+‟ signs - µZ = ----------------------------σTesting the Null hypothesis ( H o ) of no difference using 5 per cent level ofsignificance, the acceptance region will beZ = - 1.96 to + 1.96.PROBLEMS OF RETAILERS – APPLICATION OF SIGN TESTIn order to know whether there is any significant difference in the responses ofretailers for each of the statement regarding Personal Problems, Labour Problems, MarketingProblems and Finance Problems, Sign – test has been applied.The results of Sign – Test with regard to responses of retailers in Sivakasi for each ofthe statement of Problems are given in Table 31TABLE 31PROBLEMS OF RETAILERS – APPLICATION OF SIGN TESTS.No. Problems Result1234Personal ProblemsLabour ProblemsMarketing ProblemsFinance ProblemsSignificantSignificantSignificantSignificantFrom the above table, it is understand that there is a significant difference between theopinions of responses of retailers about the problems of retail business. Therefore it isconcluded that the null hypothesis framed for this purpose is rejected.PROSPECTS OF RETAIL BUSINESS IN SIVAKASIThe drivers aiding the growth of the industry are called as Prospects. The followingProspects are aiding the growth of the retail industry in Sivakasi Taluk. These Prospects arepresented in Table 32

418www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780TABLE 32PROSPECTS OF RETAIL BUSINESS IN SIVAKASIS.No. Opinion SA A No DA SDA Total1. Sivakasi is suitable to retailbusiness132(66)56(28)8(4)4(2)- 200(100)2. Chance to earn more profit 156(78)39(19)3(2)2(1)--200(100)3. Needs lesser investment 102(51)86(43)-(-)8(4)4(2)200(100)4. Low competition in retail business 25(12)42(21)75(38)32(16)26(13)200(100)5. Does not needs advancedtechnology134(67)52(26)4(2)10(5)--200(100)6. Government support to retailbusiness is enough106(53)48(24)40(20)6(3)--200(100)7. Financial assistance fromInstitution is enough86(43)69(34.5)38(19)7(3.5)--200(100)8. Availability of sufficient labourforce122(61)68(34)10(5)----200(100)9. Better chance to growth 132(66)58(29)6(3)4(2)--200(100)10. Less political influences 137(68.5)43(21.5)18(9)2(1)--200(100)11. Low cost of factors of production 111(55.5)32(16)39(19.5)18(9)--200(100)12. Lesser or No formalities ofRegistration69(34.5)89(17.8)32(16)7(3.5)3(1.5)200(100)13. No speculation affect in retailbusiness96(48)27(13.5)42(21)35(17.5)--200(100)

419www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578014. Sufficient Transport facilities 127(63.5)41(20.5)28(14)4(2)--200(100)15. Better chance to businessexpansion108(54)63(31.5)18(9)11(5.5)--200(100)16. Higher Quantum of population 138(69)48(24)9(4.5)5(2.5)--200(100)17. Other infrastructure 101(50.5)59(29.5)29(14.5)11(5.5)--200(100)18. No need for any specifiedknowledge55(27.5)75(37.5)15(7.5)50(25)5(2.5)200(100)19. Experience in these field does notyields growth96(48)56(28)32(16)16(8)--200(100)20. Sufficient Natural resources 125(62.5)43(21.5)28(14)4(2)--200(100)Source:PrimaryDataNote : The figures in the brackets show percentage to totalSA – Strongly Agree, A – Agree, No – NO opinion, DA – Disagree,SAD- Strongly DisageeTable 32 exhibits the Prospects of retail business in Sivakasi Taluk. Retailers tell theiropinion about 20 statements of retail business in sivakasi like chance to earn more profit,needs lesser investment, low competition in retail business, does not needs advancedtechnology, better chance to growth and so on.To rank the prospects of retail industry in sivakasi, the weighted arithmetic meanmethod has been used. The result of ranking is given in Table 33TABLE 33WEIGHTED ARITHMETIC MEAN FOR THE RANKS.No. Opinion SA A NO DA SDA Total Total Average Rank1. Sivakasi is suitableto retail business660 224 24 8 0 200 916 4.58 4

420www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57802. Chance to earn moreprofit3. Needs lesserinvestment4. Low competitioninretail business5. Does not needadvanced technology6. Government supportto retail business isenough7 Financial assistancefrom Institution isenough8 Availability of Sufficientlabour force780 156 9 4 0 200 949 4.75 1510 344 0 16 4 200 949 4.37 10125 168 225 64 26 200 874 3.04 20670 208 12 20 0 200 608 4.55 7530 192 120 12 0 200 910 4.27 12430 276 114 14 0 200 854 4.17 15610 272 30 0 0 200 834 4.56 69 chance to growth 660 232 18 8 0 200 912 4.59 310 Less politicalinfluences11 Low cost factors ofprodution12 Lesser or noformalities ofregistration13 No speculation affectin retail business685 172 54 4 0 200 918 4.57 5555 128 117 36 0 200 836 4.18 14345 356 96 14 0 200 811 4.06 17480 108 126 70 0 200 784 3.92 1814 Sufficient Transportfacilities15 Better chance tobusiness expansion635 164 84 8 0 200 891 4.46 8540 252 54 22 0 200 868 4.34 11

421www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578016 Higher Quantum ofpopulation690 192 27 10 0 200 919 4.60 217 Other infrastructure 505 236 87 22 0 200 850 4.25 1318 No need for anyspecified knowledge19 Expereince in thesefield does not yieldsgrowth20 Sufficient Naturalresources275 300 45 100 5 200 725 3.63 19480 224 96 32 0 200 832 4.16 16625 172 84 8 0 200 889 4.45 9Source : Processed DataIt is noted that among the 20 statement, chance to earn more profit is most importantfactors because retail business has a lot of chance to earn more profit. Retailer is the finalstage in the channel of distribution, retailers can satisfy the customer needs and wants, andearn more profit in their retail business. A second important factor is Higher Quantum ofpopulation.Competition plays an important role in each and every business. In retail businessthere should be shift competition. To overcome the competition the retailers can satisfy theneeds and wants of the customer.KOLMOGROV – SMIRNOV ( K – S ) TESTKolmogrov – Smirnov ( KS) is a non – parametric test. It requires less assumption.This test can be applied when the sample size is more than 40. This is used to find outwhether an empirical distribution agrees with an assumed theoretical one or not. There areTwenty Statements and each statement has Prospectus of Retail business in Sivakasi. Thefollowing formula is applied in this test.D 2= O – ED = refers to calculated valueANALYTICAL FRAMEWORKO = refers to cumulative observed proportionE = refers to cumulative expected proportionIn Kolmogrov – Smirnov (KS) Test, the cumulative observed proportion is calculatedon the basis of observed number. In each case the observed properties are calculated bydividing the respondents. For all gradations, the same method of calculation is followed. Onthe basis of observed proportion cumulative proportion is calculated. Cumulative expected

422www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780proportion is calculated on the basis of expected proportion. Since there are five gradations,each gradation (ie 0.20 ) is assigned as expected proportion on the basis of observedproportion and the cumulative expected proportion is calculated.For each gradation, the difference between cumulative observed proportion andcumulative expected proportion is calculated. The largest difference will be taken ascalculated value.The Table value at both 95 per cent and 99 per cent confidence level is 1.36/ √n, ie1.36/ √200 = 0.096. If the calculated value is greater than the table value, the null hypothesisis rejected otherwise accepted.APPLICATION OF KOLMOGROV – SMIRNOV ( K – S ) TESTIn order to study the opinion of the retailers about the various prospects statementsregards with Retail Business, the Kolmogorov – Smirnov ( K-S ) Test has been used. For thepurpose of this study, the following Null hypothesis is framed.There is no significant difference in the opinion of the Retailers about the statementsregard with prospects retail business in sivakasiThe result of Kolmogrov – Smirnov test is given in Table 34TABLE 34RESULT OF KOLMOGROV – SMIRNOV (K – S) TESTS.No. OpinionCalculated‘D’ ValueTable ValueResult1. Sivakasi is suitable to retailbusiness0.54 0.096 Significant2.Chance to earn more profito.580.096 Significant3. Needs lesser investment 0.544. Low competition in retail business 0.110.096 Significant0.096 Significant5. Does not needs advancedtechnology0.530.096Significant6. Government support to retailbusiness is enough0.370.096Significant7. Financial assistance fromInstitution is enough0.38 0.096Significant

423www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 57808. Availability of sufficient labourforce0.55 0.096Significant9. Better chance to growth 0.5510. Less political influences 0.500.096 Significant0.096 Significant11. Low cost of factors of production 0.39 0.096 Significant12. Lesser or No formalities ofRegistration13. No speculation affect in retailbusiness0.38 0.0960.28 0.096SignificantSignificant14. Sufficient Transport facilities 0.44 0.096 Significant15. Better chance to businessexpansion0.46 0.096Significant16. Higher Quantum of population 0.5317. Other infrastructure 0.400.096 Significant0.096 Significant18. No need for any specifiedknowledge0.26 0.096Significant19. Experience in these field does notyields growth0.360.096Significant20. Sufficient Natural resources0.44 0.096 SignificantOverall 0.01 0.096 Not SignificantThe result of Kolmogrov – Smirnov (KS) test gives clear idea about the opinion ofretailers about the prospects of retail industry in sivakasi. According to KS – Test theretailers have different opinion about the individual statement of prospects of retail industrybut in total all the retailers feel that the retail industry of sivakasi has good prospects.Therefore it is concluded that there is significant difference between the opinions of retailersabout individual statement about prospects of retail industry and there is no significantdifferent between the opinions of retailers about prospects of retail business in sivakasi intotal.

424www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FINDINGS OF THE STUDYThe findings of the study is summarized below It is inferred that more number of retailers are male, lie under the age group of 35years to 45 years, backward community, Hindu, married, undergraduate. It is vivid that retailers with a monthly income of Rs 10,000 ( 33.50%) are foundmore in the Sivakasi Taluk. Most of the respondents are Grocessary shop retailers which occupy 22.50 per cent. It is clear that most of the respondents are not having previous experience in the retailbusiness. It is understood that majority of the respondents are supported by the family members. It is known that most of the respondents have stated that they receive financial helpfrom family members. It is inferred that majority of the respondents doing their forefathers business. It is lucid that, the majority of respondents (60%) have taken the decisionindependently. Majority of the respondents (75%) have business unit at urban areas. It enlightens the fact that the majority of the respondents (48%) located their shop inresidential area. It is found that 55 per cent of the respondents are doing the business under sole traderform It is concluded that 29 per cent of the respondents are withstand in these field from 15to 20 years. It is inferred that most of the respondents (80%) have utilized their full capacity. The lack of working capital is the cause for under utilization of resources. It is realised that majority (86.50%) of the retailers procure the raw materials fromopen market. It is known from that most of the respondents (39%) have purchased products againstcredit. Most of the respondents (73%) have adequate marketing facilities. It is inferred that most of the respondents (36%) are made credit sales to theircustomer.

425www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780 It is clear that most of the respondents (52.78%) having the problem of bad debts. It is known that majority of the respondents (67.50% ) not advertise their product. It is vivid that majority 47.50 per cent of respondents have used borrowed funds fortheir business and 33.68 per cent of respondents have borrowed funds from theirrelatives. It is known that majority of the respondents are not availed government assistance and44.44 per cent of the respondents get power concession from government. There is no significant difference among the opinion of retailers about the problems ofretail business. According to the Kolmogrov – Smirnov (K- S) Test, there is a significant differencein the opinions of retailers about the individual 20 statements about prospects of retailbusiness. There is no significant difference among the opinion of retailers about the prospectsof retail business in Sivakasi.SUGGESTIONS OF THE STUDYThe following suggestions are offered to improve the retail business position inSivakasi.‣ The location of the stores should be convenient and easy to access. The distance thatthe consumer must travel to shop is the basic criteria.‣ The goods should be properly packaged.‣ Certain specialized item which are used or consumed on special occasions or festivalsor local celebrations should be available in the shops.‣ Effective control system must be introduced for controlling purchases, storing andinspection of goods, it is highly useful for maintaining quality of goods sold. The outof date inventories are to be immediately identified and removed from the store.‣ Motivating the staffs for improving the performance of their work. The quality ofservice is a key factor and winning a higher share of customer. Staff must be trainedand motivated to recognize their best customers and to offer them superior service.‣ The quality of management of the customer is becoming an increasingly importantsource in improving the customer service. Education and training of staff needs to bedone to enhance service.‣ The frequent buyers should be maintained with the personalized report.‣ The promotional measures such as advertising in local television, banner etc. Thisresult in confidence and trust by customers on the store about the availability of thespecialized items or products. The amount of promotion done by a shop depends on a

www.zenithresearch.org.in426ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780number of factors such as store policy, how frequently they bring in new products andnew stocks conducting of promotional schemes, general awareness of the shop, themarket segment catered to and the budget available for promotion.‣ Technology and innovation will serve as the fuel in enabling the customer‟s shoppingexperience. Hence new technology may be adopted in serving the customers.‣ The Government should reduce the Registration formalities and Regulation.‣ The customers expect best shopping experience so the management should take careof environment. The key indictors such as product offering, physical characteristics ofthe store, store personnel, location convince, prices, customer‟s services.‣ The retailer should effectively utilize the natural resources.‣ The retailers should clarify the customers doubt about the product and services andthen purchase the product.‣ The retailers should properly pay the loan and advances to the financial institutions orgovernment institutions they reduce the interest rates.CONCLUSIONToday retailers must differentiate themselves by meeting the needs of their customersbetter than the competitors. Retailers should prepare marketing plans that include decision ontarget market, product assortment and procurement, services and stores atmosphere, pricepromotion and proper placement of products inside the retail shops. There is a generalagreement that a basic retailing strategy for creating competitive advantage is the delivery ofhigh service quality. Therefore, by giving better service and product, definitely the retailerscan taste the success.REFERENCESBOOKSGandhi, J.C “Marketing Management”, Tata McGraw Hill Publishing, New Delhi,Year 2001.Kotler Philp., “Marketing Management”, Sultan Chand and Company PrivateLimited, New Delhi, Twelth Edition, 2003.Pillai., R.S.N and Bhagavathi, “Marketing Management”, Sultan and Chand and Sons,New Delhi, Second Edition 1999.Jain., J.N and Singh.,P.P, “Modern Retail Management”, Tata McGraw HillPublishing, New Delhi, Year 2006.Agarwal.,B.L, “Basic Statistics”, Wiley Eastern Limited, New Delhi, SecondEdition,1996.

427www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780MAGAZINES‣ Anusingh Lather and TRipat Kaur, :It‟s all at the mall: Exploring Present ShoppingExperiences” Indian Journal of Marketing, volXXXVI, August 2006.‣ Dabholkar P.A Torpe and J.O. Rentz, 1996 “Ameasre of service quality for retailstores: scale development and validation”, Journal Academy of marketing science, vol24.‣ Gupta.C.P, and Mitali Chaturvedi, “Retailing: An Emerging Trend in India”, IndianJournal of Marketing, June 2007.‣ Sudhakar, G.P., “Retailing in India – What‟s up”, Indian Journal of Marketing, vol15,June 2005.‣ Vimal Sukumar, “Customer Satisfaction”, Indian Journal of Marketing, Vol 16,November 2001.‣ Vijay Durga Prasad, “The spread of Organised Retaling in India – With a specialreference to Vijayawada City”, Indian Journal of Marketing, May 2007.‣ Divya. M and Chinnadorai,K.M, “Retailing – An Emerging Sector in India”, SMARTJournal of Business Management studies, vol 5, Jan- June 2009.WEBSITES www.retail industry.com. www.supermarketsindia.com. www.thehindubusinessline.com.

428www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780ABSTRACTTHE RISE OF KOREAN AUTOMOBILE INDUSTRY:ANALYSIS AND SUGGESTIONSCHOONG Y. LEE**Gladys A. Kelce College of Business, Pittsburg State University,Pittsburg, KS 66762, U.S.A.The Korean automobile industry is one of the largest in the world and is quickly becomingthe fastest growing one in the global markets especially after the recent global financial crisisin 2008. It has grown from a small government-controlled industry to large multinationalenterprises for the last three decades. This paper will talk about how the Korean automobileindustry has risen so quickly in such a short time period. It will discuss how the Koreanautomobile industry has made huge impact on the global market by analyzing key areas of itsoperations, such as product diversification, new car development, manufacturing process,marketing strategies, economic and social significance, in addition to SWOT analysis for thecomprehensive strategic assessment of the overall conditions around the industry. Thecompetitive analysis of the Korean auto parts industry will be added by using the Porter’sFive Forces model. Finally, some suggestions will be made for its continuous growth in theglobal markets.KEYWORDS: Competitive Analysis, Comprehensive Strategic Assessment, KoreanAutomobile Industry, Porter’s Five Forces, SWOT Analysis.___________________________________________________________________________INTRODUCTIONThe Korean automobile industry is the fifth largest in the world in terms of the productionvolume and the sixth largest in the export volume in 2010. In the last three decadesbeginning in the 1970s, South Korea’s automotive industry has risen from a smallgovernment-controlled parochial industry to a significant player in the global markets. Threemajor companies—Hyundai Motor Company, Kia Motors Corporation, and Daewoo MotorCorporation—accounted for about 90 percent of the South Korean market, while theremainder was split among two minor producers and imports. Kia, South Korea’s secondlargest automaker in Korea after Hyundai, was acquired by Hyundai in 1998. The mergedHyundai-Kia ranks the fifth in terms of the production volume after Toyota, GM,Volkswagen, and Ford in the world. Korea is now labeled as one of the most advanced andsophisticated automobile producing countries in the world along with the other super powerslike United States, Japan and Germany.The automobile industry is generally considered as an important measure to gauge theindustrial level of a country, as it generates huge added value to the economy in a country.The industry is a prime example for generating economies of scale in the business sense.One vehicle typically consists of over 20,000 parts, each one of which plays a vital role indeveloping an economy and creating jobs in a country. Accordingly, the automobile industryusually has huge impacts on the economy in any country. Since the automobile industry is a

429www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780technology-intensive industry, lots of different technologies developed in other industries canbe widely employed in this industry. So, it is a backbone in many countries’ economy.Korea is also emerging as one of the most popular and attractive spots for global autoparts industry since it is strategically positioned between high tech, high priced Japan anddeveloping, low cost China. Hence the biggest advantage Korea has is the ideal balancebetween costs and quality compared to its competitors. Although the Korean automobilemanufacturers’ global sales climbed to about 11 percent on average for the last five years, itsoperating margins have been reduced significantly and consequently profits has decreased bynearly three times faster than the operating margins. These are due to the strong value of theKorean currency against other major currencies, including the US dollar and Japanese yen.The Korean won is about twice as strong as it was after the 1997 Asian financial crisis. Thepressure on margins is keeping things tight as the US automobile manufacturers are offeringlarge discounts and the Japanese yen is weakening too. In order to cut costs, most of theKorean automobile companies are renegotiating contracts with the suppliers; and not longago, in 2009, over eight thousand managers in a Korea automobile company, actually it wasHyundai Motor Company, accepted a freeze in their wages to sustain business in the currentcompetitive markets all over the world.ANALYSIS OF THE KOREAN AUTOMOBILE INDUSTRYPRODUCT DIVERSIFICATIONThe Korean automobile industry has produced many different types of motor vehicleswith high quality at reasonable costs. Most companies have competitive resources, technical,and managerial skills in this manufacturing industry. They have consistently produced themand tried to diversify their products with strong support and collaboration from their suppliers.The existence of all those reliable, dedicated suppliers is one of main reasons why Koreanautomobile companies could produced various types of automobiles efficiently andeffectively in short lead times. But the Korean automobile industry has the best operations inmanufacturing automobiles at reasonable costs. There have been many predominantautomobile companies in the world which diversified their products, but could not succeed allthe way in the global markets. For example, Ford Motors once manufactured tractors andGeneral Motors (GM) manufactured appliances for home and diesel powered locomotives.By the end of the 20th century, however, Ford and GM had divested themselves of most oftheir nonautomotive operations and had spun off most of their automotive components -making divisions into separate stock companies - Delphi Automotive Systems in the case ofGeneral Motors and Visteon Automotive in the case of Ford.During 1990s, when Korea was growing at a slower pace, it forced most Koreanautomobile companies to begin divesting themselves from other products they produced andcomponents in which they had long held interests. As a result, by the late 1990s they couldenter into international markets and started expanding their business globally with itscompetitiveness created from such changes. Then, with successful operations in the majorglobal markets, especially in the US markets, after several years, they could introduce varioustypes of products to the global markets.

430www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780NEW CAR DEVELOPMENTNew car development was first introduced by Western industries such as Ford andsome other European companies. It was largely standardized to most of their markets in theworld. When a research for developing a new car is done, it usually takes about five to sixyears for the car to be produced and marketed. So there is a high level of risk naturally in thisventure. So basically all of the functional areas needed in the development stage, such as R&D, design, procurement, engineering, manufacturing, and even accounting and marketing,have to agree on the product. Then they could decide to make a new model to see if it wouldbe a success in the market.There has been rapidly increased competition around the world in terms of new cardevelopment. Korean automobile companies would take a different approach of bringing inauto parts manufacturers, assembling and organizing them from the very beginning stage ofthe development process. First, they usually try to develop unique relationships with theirparts suppliers, which look like a win-win partnership based on long-term contracts, then takethose suppliers to every step of the development process by sharing all important informationfor development, even including target costs and expected margins, etc. In this way, Koreanautomobile companies could get sincere support and honest collaboration from thosesuppliers based on mutual trust, so that they could reduce the time of re-designing and reengineering,and eventually the costs. Those parts manufacturers could also manufacturetheir products easily and ultimately save lots of money not only in development, but also inproduction. Finally, Korean automobile companies could lead themselves to reduce the totaltime needed from scratch to market for a new car to about three years, which is veryimpressive compared to other competitors. In reality, they would save several millions ofdollars and reduce risk significantly in the process.MANUFACTURING PROCESSESManufacturing processes in the automobile industry was pioneered by Henry Fordwhen the assembly line production concept was introduced for his plants more than hundredyears ago. Basically, the same type of production has been used continuously even todaywith more elaboration and sophistication. Then, from the Japanese manufacturers such asToyota, the world learned about ―Just-in time‖ and ―Lean‖ operations system. No companiestoday would like to build a high level of inventory stacked up for the future. This conceptenables manufacturers to have an accurate flow of materials through their operations in theplant. In this case, the flow of materials should be smooth. When there is any problem, theJapanese concepts normally allow the managers to stop its operations, which would incurhuge losses to the company.This type of new system leads Korean automobile companies to perfect their controlover the subcontractors and the vendors. They usually encourage their subcontractors orsuppliers to build up their facility nearby their plants, and some automobile companies wouldtake their sub-contractors and suppliers along with them no matter where they build theirplants, domestically or abroad. ―In-house manufacturing‖ of parts takes place practically inthe same location by outside contractors. This practice is generally accepted by mostautomobile companies in Korea, and now very popular among other companies in the world.It helps the company to reduce the cost of the parts, and require less investment of thecompany. Also, it improves the quality of the parts and shortens the delivery timedramatically. In addition, it enhances communications among all stakeholders.

431www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780MARKETING STRATEGIESWhile the mass production is still a common practice by the automobile industry inthe world, the demand of motor vehicles also increased steadily all over the world. Thismakes automobile manufacturers concentrate more on the services needed for their products.This is a major factor in instilling confidence to the customers, and it is very much required inorder to survive in today’s tense competition from all over the world. Since distribution andsales networks are generally very complex and complicated, there is a need of well organizedand better equipped after-sales service department. The automobile companies shouldprovide the highest level of services to their customers to win competition against othercompetitors no matter where they do their business and no matter what products they carry tothe markets.The typical Korean automobile company has a unique system of franchise dealershipwhereas the manufacturer decides on models and makes that can be sold and serviced by thedealers. Even the quota of cars for sales is also decided by the manufacturer. This helpsthem in control of services and guarantees proper after-sales service to the customers. Inreturn, the dealers are given a particular region where no other dealers can sell the carsproduced by the same company. This approach helps them to enhance their sales without anyadditional costs of sales. Also manufacturers are responsible for all kinds of promotion andadvertisement and help dealers concentrate just on their service facilities. It is a verystandardized system practiced in Korea. This unique system helps all the dealers to be unitedand concentrated on services more than anything else. Also the prices, services, and facilitiesare all uniform all over the country. This is a healthy competition against rival companieswhich also follow a similar practice.ECONOMIC AND SOCIAL SIGNIFICANCE OF AUTOMOBILE INDUSTRY INKOREAKorea is predominantly strong in manufacturing automobiles. The automobileindustry is one of the most important industries in Korea, and has huge impacts on theKorean economy. It has been a significant part of their exports, like other industrializedcountries such as Germany, Japan, United States, Sweden, and Canada. Korea has been amajor global force in terms of production volume as well as export volume. Its automobileindustry helps Korea in balancing exports and imports.The Korean automobile industry has further significance to other related industries inKorea. The technological development and advancement in the automobile industry has beenenormous, and it helps other industries in many ways. For instance, one third of Korea’srubber production is consumed in its automobile industry. Highly specialized labor trainedand technologies developed in the automobile industry are used in other similarmanufacturing industries. Shipbuilding has been another industry of excellence in Koreabased on those labor and technologies originally developed from the automobile industry.Both automobile and shipbuilding industry help the Korean economy to flourish together.These two largest industries in Korea are closely related to manufacturing and they aretechnologically advanced equally by complementing each other in many ways. Also otherindustries, such as transportation, and raw materials manufacturing, have been steadilygrowing along with the automobile industry. Huge employment in the automobile industryhelps Korea increase their per capita income and makes economically strong.

432www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780SWOT ANALYSISSWOT analysis is a tool of strategic planning which is used to evaluate the strength,weakness, opportunities, and threats involved in a business or project venture. SWOTanalysis involves specifying the goals and objective of the business venture and alsoidentifying the external and internal factors which are either unfavorable or favorable for thecompany to achieve its objectives. So, the SWOT analysis aims to identify both the externaland internal factors which are the essential and critical to the company’s operations andpractices in achieving its objectives. Therefore, the two main categories in a SWOT analysisare; internal and external factors. The first category, which is the internal factors, comprisesof weakness and strength found in an organization. The second one is the external factors,which are threats and opportunities found from the external environment.Conducting a SWOT analysis for the Korean automobile industry will identify thosefour dimensions – strength, weakness, opportunities and threats – faced by the Koreanautomobile industry. It will help in strategic planning and decision-making process based onthe weakness and strength of the industry. It can be used to do a comprehensive strategicassessment for the industry. The evaluation and responsiveness will also be assessed byexamining the external environment around the industry. So, the opportunities anorganization has will be identified and capitalized upon. The potential threats will also beidentified which pose future challenges to the industry. Through the analysis, identificationand highlighting of the major areas of strengths, weakness, opportunities and threats willmake be useful for making adjustments, realignments, and changes in its business strategies.The analysis will be of vital importance for those interested in learning about theKorean automobile industry and especially for the top management of those Koreancompanies in making decisions. Other parties who will get benefits from the SWAT analysisinclude those parts suppliers, potential and current investors, vendors, the individualcompany’s analyst group, and those associated with the Korean automobile industry.STRENGTHThe Korean automobile industry’s major strengths are its efficient R&D process,strong global networks, and the wide range of products covering the major niches in theglobal markets. Most of Korean automobile companies are now producing various types ofreliable and reasonable automobiles in the low price range and is trying to compete againstthe world’s best companies even in the high-end luxury markets based on its fastdevelopment of luxury cars from strong R&D as a fast follower. We could see them as amajor player in the global markets especially after the merger of Hyundai and Kia in 1998,and we can recognize them as a global force now and even a global leader in the future. It isone of the biggest strengths they possess. They are producing high quality cars at a veryreasonable price which makes exceptionally competitive in the global markets. They used tobe known just for their price competitiveness based on cheap labor, raw materials, and lowcost parts. However, now their competitive edges include not only reasonable costs, but alsomuch improved quality as well as advanced technologies producing fuel-efficientautomobiles. Korean companies basically try to carry their vendors, subcontractors whereverthey go. This enables them to show how they value their importance in every small thingthey do. Now Korea is planning to sign a FTA (free trade agreement) with the USgovernment which would allow them sell their products more in the US markets. The Koreanautomobile industry expects their sales to increase to about $1 billion in three years once the

433www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780FTA is signed. The FTA with the US should provide a great opportunity for Koreanautomobile companies to move to the next level of their business operations. It will open upthe US markets more freely to them. These are some strengths the Korean automobileindustry possesses.WEAKNESSThe Korean automobile industry’s most serious weakness is strong movements byhard labor unions in Korea. The labor union movements are generally very strong and hostileespecially in the Korean automobile industry, which hurt not only those companies’ business,but also the Korean economy seriously. There has been no single year in the last eleven yearswithout labor unions’ strikes in the Korean automobile industry. It looks like an annual event,shutting down many plants among all those large automobile companies in Korea for a longtime every year. The next one is that there are highly unexpected fluctuations of the value ofthe Korean currency, which would affect their exports and imports. The uncertaintyregarding the value of the Korean won makes Korean companies vulnerable in theirinternational markets. Since most Korean companies rely heavily on foreign sales, theiroperations and production are affected significantly by the value of their currency. Anotherweakness is the lack of brand awareness worldwide. For example, customers in majorinternational markets, especially in the US markets, see Hyundai, the largest Koreanautomobile manufacturer, still as a cheap automobile producer. They still have a perceptionthat Korean made automobiles are cheap ones. In other words, Korean automobilecompanies are generally known as cheap producers. Even though they are transforming theircompanies to quality manufacturers, the brand awareness is not yet strong in the market. So,high brand awareness will be a key for the future, and it is one of the most serious problemsKorean automobile companies must try to solve sooner for their long run benefits.OPPORTUNITIESThe opportunities available for the Korean automobile companies are the risingdemands of Korean automobiles in many new markets which will help Korean companiesimprove their global market shares. More exactly, a promising opportunity for Koreancompanies exists in the Association of Southeast Asian Nations (ASEAN) markets as well asin India, Brazil and Russia with the increasing demand of especially small cars with excellentfuel efficiency. This will lead them to build products with high fuel efficiency. Even in theUS market with high fuel costs now, the demands of those fuel-efficient small cars aresignificantly being increased. The Korean automobile companies are very strong especiallyin this market segment with all technical, economical advantages for producing such smallcars. This is one of the reasons why Korean automobile companies’ sales are significantlyincreased while many rival companies’ sales are dropped recently in the global marketsoverall. Developing new technologies for fuel efficiency and ―green‖ cars and competingagainst the current global market leaders now shows the Korean companies’ resilience to beon top of its game through implementing a successful business strategy and to be capable ofbuilding a string of high class products which makes those companies compete against theirrivals successfully in the global markets.THREATSThe Japanese automobile industry, one of the biggest rivals to the Korean industry,still remains as one of Korea’s prime threats. The technology gap in some core items

www.zenithresearch.org.in434ZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780especially for luxury cars between Korean and Japanese (as well as European) companieswould be a main threat in the future. Korean auto manufacturers are still finding it hard tobring luxury cars to competition against those global leaders. Hyundai brought Genesiswhich offers more luxury for the price, but could not sell as many as they expected in thosehigh-end markets so far. The Japanese trio of luxury, Lexus, Infiniti, and Acura, are verystrong in those global luxury car markets. The European trio, Mercedes, BMW, and Audi,are heavily demanded globally. This gives a big threat to Korean manufacturers in expandingtheir business to luxury product lines. Also as gas prices rise continuously with theexhaustion of fuel resources in the world, global leaders are spending more resources in theirresearch for developing vehicles with other kind of fuels. So, Korean companies should domore research for bio-fuels or any alternatives with renewable sources of energy. Since theother global manufacturers have already introduced new vehicles for the next generationsuccessfully, such as hybrid vehicles and electric cars, the Korean automobile industry shouldconduct more research for developing those types of new technologies and vehicles. Thiswill be another threat to the Korean automobile industry.The following chart shows the SWOT analysis of the Korean automobile industrydiscussed above.STRENGTHSPrice competitiveness in terms of highlyskilled workers, low cost parts andmaterialsDiversified export marketsAggressiveOPPORTUNITIESmarketingSuccessful launches on site productionWEAKNESSESBrand AwarenessLabor Union IssuesImmature parts and raw materialsindustryTHREATSThe weak and the fluctuating KoreanWonSaturated domestic marketGeographical proximity to ChinesemarketsHigh dependency on exports i.e.,overseas marketRise of other Asian manufacturersPotential market for ASEANCOMPETITIVE ANALYSIS OF AUTO PARTS INDUSTRY Technology IN gap KOREA to advancedcountriesThe auto parts industry is another important industry, which is critical inmanufacturing quality automobiles. The growth of the automobile industry in a countrydepends largely on the quality of auto parts produced in the country. It is critical for a nationwhich would like to develop a strong automobile manufacturing industry to have a reliableauto parts industry. So, analyzing business climate of the auto parts industry is a key forunderstanding how to develop a world-class auto industry with sustainable growth in acountry. As mentioned earlier in this paper, Korean automobile manufacturers usually takemost of their major suppliers wherever they go in the world. It is very important for

435www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780automobile manufacturers to have reliable suppliers near by their plants for many competitivereasons. In the last two decades, Korean governments and large automobile companies, suchas Hyundai and Kia, have invested a lots in developing reliable, high-quality auto parts andsub-assembles with technical supports from many research institutions and academicorganizations. Many of Korean auto suppliers are now producing high-quality parts not onlyfor their domestic auto makers, but also other world-class makers in the world. Actually,according to the recent data, the Korean auto parts industry now outgrows the Koreanautomobile manufacturing industry. Especially after the global financial crisis in 2008, manyauto parts producers in other countries, such as Japan and the USA, went bankrupt due to lowdemands of their products. However, Korean auto parts producers are enjoying greatbusinesses as the Korean automobile companies are breaking their sales records every year.Furthermore, also those global leading auto makers, including Volkswagen, BMW, Mercedes,GM and Ford, have decided to buy more parts from Korea instead of China since theycouldn’t trust the quality of Chinese made parts with some serious quality problems they hadwith those parts from China used in their products.PORTER’S FIVE FORCESThe Porter’s competitive analysis model with ―Five Forces‖ is a framework whichdescribes about the environment surrounding an industry. The ―Five Forces‖ are: the threatsof entry, the bargaining power of suppliers, the bargaining power of the buyer, threats bysubstitutes, and the intense rivalries from the competitors.In the auto parts industry, Korean manufacturers are in a difficult position in theglobal markets because of Chinese competitors. China has been dominant in this industry forthe last few years, and it is very hard for other countries to enter in this industry and competeagainst the Chinese producers. They used to be a big barrier for Korean manufacturers toenter in this business. Also the rise in prices of raw materials plays an important role indetermining the bargaining power of suppliers. It is true in marking to say ―the bigger theorders the better the price is‖. The same thing goes with the buyer too. The bargainingpower of buyer is determined by a big volume order and increased cooperation. For thisreason, Chinese manufacturers can enjoy their competitive advantages over other competitors.Also there is a threat in terms of the substitutes. When there is a new product whichcan substitute existing products, it would have a big impact on the market. For example,hybrid and fuel cell vehicles are becoming popular globally and are growing as the time goesby with the steady rise of gasoline price. As everyone knows about the exhaustion of oilresources and the skyrocketing price of oil now in the world, there is an imminent chance of asubstitute rolling out soon. This should also be considered in the Porter’s competitiveanalysis here for the Korean auto parts industry.Below is the diagram which shows Porter’s five forces for the Korean auto partsindustry.

436www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780Threats of entryRise of China, Strongforeign large scalecompetitors from US,Japan, and GermanySupplier’sBargaining PowerRise in price of rawmaterialsoRivalriesNew entry ofpotentialsuppliers,Economic cond.Buyer’s BargainingPowerBig Volume Order,Increased CooperationThreat by SubstitutesNew types of vehicles,Technology IntegrationAccording to the diagramabove, the Korean auto parts industry still has an excellentchance of becoming a global leader in this industry since there are more advantages thandisadvantages or barriers. Obviously, the positive side of its business climate outweighs thenegative side. Actually, many experts and scholars say that the Korean auto parts industryhas more and better opportunities than the Korean automobile manufacturers for being aglobal leader based on all their analyses. Also, many business predictions support thoseexperts and scholars’ claim, saying that high potential of sales increase will exist in the autoparts industry compared to the automobile manufacturing industry all over the world. Lesscompetition will be expected in the auto parts industry while there will be more competitionin the global automobile manufacturing industry in a near future.CONCLUSIONSThe Korean auto industry is one of the most flourishing industry in the world rightnow. It has been doing wery well with the steep competition against the global leaders fromGermany, Japan, and USA. It has also reacted well to challenges from other new competitorsfrom Asian countries, mainly from China. In spite of severe competion and tough challengesin the global markets, which gives serious threats to the Korean automobile companies,overall the Korea automobile companies have done outstanding jobs so far, and are taking aright direction to the future with ambitious but attainable goals based on well-calculatedaggressive strategies.

437www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780The Chinese economy has grown dramatically for the last twenty years, and without anydoubt it will be continued for a while. This should be not only a great opportunity, but also abig threat to the Korean automobile industry. The booming economy in China will providebigger Chinese markets to Korean companies. Hyundai and Kia are doing very well in Chinanow, and there will be no reasons why they cannot continue such success in China in thefuture. However, at the same time, the strong Chinese economy will help China develop itsown automobile industry with many other related industries developed well. Furthermore,with its strong economic power, the Chinese automobile industry will threatened the Koreanautomobile industry more seriously in the future based on its national industrial policies andhuge domestic markets more favorable for its own domestic companies. However, most ofKorean automobile companies are still and will be for a while competitive especially againthose Chinese companies since Korean companies are still in a much better position withseveral competitive edges in key areas, such as design, engine, and electronics, and it is veryhard for Chinese companies to catch up in those areas in a short time period.Most of Korean automobile companies will firmly remain competitive in China as wellas other major markets in the world, while they still have room to be advanced further with itsinvaluable supports from other industries Korea has strongly in the global markets, such assteel, electronics, information technology and chemical industry. Overall Korea is now verydynamic and competitive globally especially after the global financial crisis in 2008 becauseit has well-diversified, strong and competitive industries in many areas. Korea is now wellknown economically with its world-class industries, such as shipbuilding, electronics, petrochemical,information technology, and steel industry. For example, producing the nextgeneration fuel-efficient automobiles generally depends more on such high-tech industries,including information technology and electronics, than the traditional heavy industries.Absolutely, Korea has competitive edges over China and many other countries in those hightechareas now. It will not be changed in a short time period since it takes a while to upgradethe structure of national economy based more on high-tech industries. Also, the Chinaautomobile industry needs more time to improve quality of auto parts, enhance supply chainmanagement as well as marketing and so on. More importantly, China needs moretechnologies and experience of developing its own models of vehicles with advanced designcapacity. Especially the design capacity with own models is the most difficult area todevelop and advance in manufacturing automobiles. The Korean automobile industry will domuch better performances than the Chinese in this critical area for a while. The Chineseautomobile industry could develop its design capacity with its financial supports from itsgovernment. But still it will take a while to introduce its own models of reliable qualityautomobiles to the global markets.Overall it is fair to say that the Korean automotive industry has achieved lots of positiverecognition in the global markets, and overcome barriers that at one point may not have seenreasonable to attain. At the same time, it is also true to say that it is not easy to become theglobal leader in the global automobile industry, but by taking the appropriate steps based onthe SWOT analysis as well as competitive analysis, it should be attainable to become a globalleader in the markets all over the world. Economically, it was not easy at all for the Koreanautomobile industry to position itself as one of the fastest growing competitors in the globalmarkets and become the world’s fifth largest producer today. It is remarkable to think backof how it used to be and see how it has been transformed into a leader in the global markets ina short time period. The Korean automobile industry may not be the absolute top leader now,but if it continues to make strides in the future as it has done in the past, it should not come as

438www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 5780a surprise when it knocks out other competitors from the top spot sooner or later. The Koreanautomobile industry is providing each and every year they have what it takes to be a leader.It has the capabilities to become the dominant power in the global markets. It just needs tomake sure that it has a strategic plan, which was developed by reflecting all competitiveadvantages and edges from the SWOT analysis as well as the competitive analysis, to allowthe Korean industry to keep succeeding continuously.REFERENCE1. Chung, M.K. (1997) The Introduction of the New Production System and the ChangingHuman Resource Management: A Case Study of the Hyundai Asan Plant [in Korean].Industry and Labor Studies, Vol. 3 No. 1, pp. 81-108.2. Chung, M. (2001) The Expanding Buyer-supplier Partnership for Product and ProcessTechnology Development in the Korean Automobile Industry. International Journal ofAutomotive Technology and Management, Vol. 1 No. 2/3, pp. 347-357.3. Corswant, F.V., and Fredriksson, P. (2002) Sourcing Trends in the Car Industry ASurvey of Car Manufacturers’ and Suppliers’ Strategies and Relations. InternationalJournal of Operations & Production Management, Vol. 22 No. 7, pp. 741-758.4. Gao, J.X., Manson, B.M., and Kyratsis, P. (2000) Implementation of ConcurrentEngineering in the Suppliers to the Automotive Industry. Journal of MaterialsProcessing Technology, Vol. 107 Nos. 1/3, pp. 201-208.5. Humphreys, P., Li, W.L., and Chan, L.Y. (2004) The Impact of Supplier Developmenton Buyer-supplier Performance. Omega, Vol. 32 No. 2, pp. 131-143.6. Hyun, J.H., and Park, K. A. (2007) Defusing Potential Threats: An Empirical Study ofKorean Automotive FDI in Europe. International Area Studies Review, Vol. 11 No. 2,pp. 68-89.7. Jo, H.J. (2001) Production Systems and Human Resource Management in the GreenfieldPlants: A Comparative Study of the Japanese and South Korean Autu Industries [inKorean]. Korean Journal of Sociology, Vol. 35, pp. 147-176.8. Lee, C.Y. (1992) The Adoption of Japanese Manufacturing Management Techniques inKorean Manufacturing Industry. International Journal of Operations & ProductionManagement, Vol. 12 No. 1, pp. 66-81.9. Lee, Y.S. (2003) Lean Production Systems, Labor Unions, and Greefield Locations ofthe Korean New Auto Assembly Plants and Their Suppliers. Economic Geography, Vol.79 No. 3, pp 321-339.10. Li, S., Ragu-Nathan, B., Ragu-Nathan, T.S., and Subba Rao, S. (2006) The Impact ofSupply Chain Management Practices on Competitive Advantage and OrganizationalPerformance. Omega, Vol. 34 No. 2, pp. 107-124.

439www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.1 Issue 6, October 2011, ISSN 2231 578011. Liker, J.K., Kamath, R.R., and Wasti, S.N. (1998) Supplier Involvement in Design: AComparative Survey of Automotive Suppliers in the USA, UK and Japan. InternationalJournal of Quality Science, Vol. 3 No. 3, pp. 214-238.12. Narasimhan, R., and Das, A. (2001) The Impact of Purchasing Integration and Practiceson Manufacturing Performance. Journal of Operations Management, Vol. 19 No.5, pp.593-609.13. Nobeoka, K., Dyer, J.H., and Madhok, A. (2002) The Influence of Customer Scope onSupplier Learning and Performance in the Japanese Automobile Industry. Journal ofInternational Business Studies, Vol. 33 No. 4, pp. 717-736.14. Noble, M.A. (1997) Manufacturing Competitive Priorities and Productivity: AnEmpirical Study. International Journal of Operations & Production Management, Vol.17 No. 1, pp. 85-99.15. Park B. (2003) Politics of Scale and the Globalization of the South Korean AutomobileIndustry. Economic Geography, Vol. 79 No. 2, pp 173 – 194.16. Takeishi, A. (2001) Bridging Inter- and Intra-firm Boundaries: Management of SupplierInvolvement in Automobile Product Development. Strategic Management Journal, Vol.21 No. 5, pp. 403-433.17. Watts, C.A., and Hahn, C. (1993) Supplier Development Programs: An EmpiricalAnalysis. International Journal of Production and Materials Management, Vol. 29 No. 2,pp. 10-17.18. Wortham, A. (2007) Kia Plant Draws More Korean Parts Makers to Ga. AutomotiveNews, Vol. 82, 6282, pp 30.19. Zirpoli, F. and Caputo, M. (2002) The Nature of Buyer-supplier Relationships in CodesignActivities: The Italian Auto Industry Case. International Journal of Operations &Production Management, Vol. 22 No. 12, pp. 1389-1410.