SCM and marketing management: mutual integration

SCMS JOURNAL OF INDIAN MANAGEMENT Contents Volume 7 April - June 2 0 1 0 Number 2 Title of the Article Author / Authors Page No. Case in Competency: : Anitha Thomas and Training need Assessment Anirudha Panchal 005- - 015 SCM and Marketing Management: : Pankaj M. Madhani 016- - 024 Mutual Integration Organizational Climate: : Avinash Kumar Srivastav 025- - 030 BPO Industry Brand Awareness: : Keerthi Pandian and 031- - 038 Baby Food Products Ramachandran K.K. Product Mix Strategies: : Mohankumar T.P. and 039- - 054 FMCG in Indian Market : Shivaraj B. Small is Beautiful? : Prasenjit Maiti Corporate Social Responsibility 055- - 066 Car Industry: : Dharmaraj C., Sivasubramanian M. 067- - 079 SWOT Analysis : and Clement Sudhahar J. Ordering of Companies: : Dilip Roy and Anupama Tiwari Proposed-Profitability Scores 080- - 085 Single and Multiple Expectations: : Ravinchandran K., Service Quality Retailing : Abdus Samad K. and 086- - 109 : David Sam Jayakumar G.S. Ownership Structure in Iran: : Vahideh Hoseini Nodeh and 110- - 117 Firms’ Responsibility : Aisha M. Sheriff Retail Franchising : Sreekumar Pillai 118- - 119 Managerial Accounting : Makesh K.G. 120- - 121 Marketing : Bindu K. Nambiar 122- - 123 Strategic Management Text and Cases : Susan Abraham 124- - 125 Fundamentals of Investment Management : Sudhakara Menon 126- - 127 New Venture Creation : Paulose K.J. 128- - 129 SCMS Journal of Indian Management , April - June, 2 010. 2 The Chairman speaks ... In today's increasingly competitive and continuously changing business climate, survival and progress of an organization depends very much on the regular upgradation and acquisition of the required competencies by the employees at all levels through training and development. A training programme to be effective, it must be well planned. Designing a training programme involves a sequence of steps starting with the training need assessment of the particular workforce. Need assessment is a systematic attempt to diagnose the changing work requirements. Developing appropriate training responses to the identified needs is the next step. Even though accurate need assessment is widely accepted as a critical prerequisite for conducting a training programme, it is an often neglected step in practice. The research paper on 'Training need assessment' brought to you as the lead article in this issue, therefore, assumes topical importance to our readers. Radical changes had occurred in the market place during the last few years. Strong brand loyalty is fast becoming a thing of the past because equally acceptable other choices are available to the consumer. Therefore, any failure in ensuring the ready availability of the preferred brand at the retail shop is likely to persuade the consumer to shift his loyalty. Hence, our second lead article deals with mutual integration of supply chain management and marketing management. We are sure you will enjoy reading these lead articles and a variety of other articles brought to you in this issue. Dr.G.P.C.NAYAR Chairman, SCMS Group of Educational Institutions A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 3 SCMS Journal of Indian Management A Quar terly Publication of SCMS-COCHIN Editor-in-Chief : Dr.G.P.C.Nayar Chairman SCMS Group of Educational Institutions Editor : Dr.D.Radhakrishnan Nair Professor, SCMS-COCHIN Editorial Advisory Board Dr.Subramanian Swamy : Professor, Har vard University, Cambridge, MA , US. Formerly, Professor of Economics, IIT, Delhi. Dr.V.Raman Nair : Director, SCMS-COCHIN. Dr.Radha Thevannoor : Director, SCMS School of Technology and Management, Kochi. Dr.Thomas Steger : Professor of European Management, Chemnitz University of Technology, Chemnitz, Germany. Dr.Kishore G.Kulkarni : Professor, Metropolitan State College of Denver and Editor - Indian Journal of Economics and Business, Denver, US. Dr.Naoyuki Yoshino : Professor of Economics, Keio University, Tokyo, Japan. Dr.Mathew J.Manimala : Pr o f e s s o r o f O r g a n i z a t i o n B e h a v i o u r a n d J a m u n a Raghavan Chair Professor of Entrepreneurship at the Indian Institute of Management, Bangalore. Dr.Tapan K.Panda : Professor of Marketing, Indian Institute of Management, Indore. Dr.Azhar Kazmi : Professor, Department of Management and Marketing, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia. Dr.Jose Maria Cubillo-Pinilla : P r o f e s s o r, I n t e r n a t i o n a l M a r k e t i n g , P o l y t e c h n i c University of Madrid, Spain. Dr.I.M.Pandey : Director, Pearl School of Business, Gurgaon. Dr.George Sleeba : Asst. Managing Director, V-Guard Industries. Mr.Jiji Thomson IAS : Agricultural Marketing Adviser, Gover nment of India. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 4 Editorial Management: Ontology and Pedagogy Nature has its own form. No rigid rules bind her Being: the gentle breeze, the movement of clouds, the lashing fury of storm, flower-laden trees, myriad of rain drops clinging-like crystal to the swaying blades of grass, and a spider's web, quivering like dewdrops in the morning sunlight. These beautiful moments in Nature can never be captured and channeled into rules. 'Management' exists there where Nature exists in its various manifestations. Nature manages all things using different ways. Nature creates things and objects, sustains them, destroys them, and continues this process. Once we observe Nature, it gives us many things to learn. Nature is the greatest teacher, to poets. It is so with regard to us also when we search for the best pedagogy. The best management classes will be those sliced from experiences from Nature. Growth and development are all well understood from our observation of the growth and development of a plant or similar other organisms. Over and above what we get from Nature as beauty and objects of beauty, we can create visual beauty with natural materials, following certain rules. Good design is universal and it demands a few basic principles. Many flower arrangers use mechanical rules to make their products pleasing and attractive, but, sans creativity and soul. A thorough understanding of the basic principles of combination of flowers: Focal Point, Build-up, Balance, Relationship of Parts and Simplicity, is necessary to provide unity and harmony. One flower in a container does not please. It has no design. Sight of two flowers, of the same height, does not please either. It is uninteresting and dull. Three flowers at different heights with the largest in the centre make a design, with the centre flower as the focal point. The focal point is the mass, prominent through shape, size or colour. Build-up is achieved by repetition of culture, form, or texture, leading to or away from the focal point. Form and colour are important factors of balance and are closely related. Relationship of parts or proportion or scale is necessary to obtain the best visual effect. Simplicity means finding the essence of the design. Mass is the material, the flowers, the foliage, and the twigs used in an arrangement. Texture is the feel of the mass, rough, smooth, or delicate, and finally colour, which plays an important role. A design is the product of the three above. Similarly from the simple to the complex, lessons from Nature are many. Every object around is a provider of a lesson in pedagogy. Nature can teach us how to solve a problem. All these can form the basis of management pedagogy. Dr.D.Radhakrishnan Nair Editorial Assistant: Mr. E.V. Johnson Assistant Editor: Dr. Poornima Narayan R. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 5 Case in Competency: Training need Assessment Anitha Thomas and Anirudha Panchal C ompetency assessment is v i t a l i n identification of the desired skills sets A Bridging Gap b for each role for meeting organizational goals and objectives. It helps in s assessing the gap which later can be bridged through training and t development or through employees' self-initiated effor ts. This fur ther helps in for mulating more accurate r terms and plan training activities, that leaves little mismatch between training needed and training a provided. This paper repor ts a case study relating to competency based training need assessment for c Head Planning and Production at Ink Manufacturing firm, through four stage process namely- t Conceptualization, Instrument Construction, Diagnosis and Analysis and Unfreezing. U nlike other resources, human being is the only asset The aspect of training evaluation is getting more and more that can appreciate with useful inputs. It is one such relevant in the current times. Each and every activity of an asset that adds value to itself with respect to time. organization is being looked at in terms of being value added And therefore it is consi- or non value added. Various 12345678901234567890123456789012123456789012345678901234567890121 dered as a resource that can 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 models have been proposed 12345678901234567890123456789012123456789012345678901234567890121 be cultivated by the manure 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 by learned scholars to 12345678901234567890123456789012123456789012345678901234567890121 of training and develop- 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 evaluate training at various 12345678901234567890123456789012123456789012345678901234567890121 ment. But is this manure 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 levels. The quest however is 12345678901234567890123456789012123456789012345678901234567890121 r e s u l t i n g i n h i g h e r p r o- 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 still on to identify various 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 ductivity? More value for 12345678901234567890123456789012123456789012345678901234567890121 metrics so as to understand 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 money? The struggle for 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 the results of training. It has 12345678901234567890123456789012123456789012345678901234567890121 evaluating this continues. 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 been quite in fashion now 12345678901234567890123456789012123456789012345678901234567890121 The training and develop- 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 to look at training not as a 12345678901234567890123456789012123456789012345678901234567890121 Ms.Anitha Thomas, Faculty, GIDC Rofel Institute of ment managers of today are 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 cost center but as a strategic 12345678901234567890123456789012123456789012345678901234567890121 Management Studies, Plot No.14/5, Charvada Road, GIDC toiling hard to convince the 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 Va p i , G u j a r a t - 3 9 1 6 9 5 , E m a i l : a n i t h a _ t o m @ r e d i f f 12345678901234567890123456789012123456789012345678901234567890121 investment. No wonder com- management that investment 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 panies are talking of return on 12345678901234567890123456789012123456789012345678901234567890121 mail.com 12345678901234567890123456789012123456789012345678901234567890121 in training yield results that 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 investment in training. 12345678901234567890123456789012123456789012345678901234567890121 Mr.Anir udha Panchal, D.G.M. - HR Micro -Inks Ltd., Corporate 12345678901234567890123456789012123456789012345678901234567890121 are not much different that 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 H o u s e , B i l a k h i a H o u s e , M u k t a n a n d R o a d , C h a l a , Va p i , the investment in various 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 Business results offer direct Gujarat-391691, Email: [email protected] 12345678901234567890123456789012123456789012345678901234567890121 projects. metrics that show the effect A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 6 of any such initiative, correlating with a particular training input The Background though is still and challenge and is full of subjectivity. It is still Company A is an Indian multi-national manufacturer of a range an open game for the training and development manager to be of products in printing inks. The company has been in operation played to earn the favour of the management and similar for for over 20 years. Since its very beginning, Company A has the management to prove it otherwise. remained strongly committed to the printing industry. This is reflected in high levels of investments they made not only to In such a situation the question is what can best explain the manufacture inks but also the key raw materials like pigments, result of a training input; the answer seems to lie in using the resins, varnishes, additives etc. Today the company is amongst concept of competency. This concept offers an opportunity the few ink companies in the world having such high degree to the evaluator to observe the change in competency as of backward integration. manifested in the behaviour of the individual at workplace. Competency as widely understood is the sum total of Company A manufactures printing inks for publications, knowledge, skills and attitudes that makes a person performs packaging and other general purpose applications. It was a task well. It means the behaviours necessary for the job to be established in 1987 and listed on India’s stock markets in 1991. performed well. It therefore focuses on the process more By 1997, it was the number one player in domestic markets than the results. This further indicates that sound processes and by 2004 it become the world’s top 15 ink companies with would lead to desired results. There are very few companies a presence in over 52 countries. In 2006, it entered into a joint that feel it is important to understand the shared values of the venture with a German company, and the company is now organization and whether that would lead them to the among the world’s top five ink companies. Today, Company A achievement of ultimate goal of the organization. Quite a few has a sales turnover of Rs. 12292 million (FY2006). The total of them have realized how important are the values to be able manufacturing plant is organized into: Resin Plant, Varnish Plant, to align the total workforce to a common goal. This is nothing Alkali Blue Pigment Plant, Seamless Ink Plant, R&D Plant and 3 but a conscious effort to focus on the means towards the Ink Manufacturing Plant. ends!! The Context Organizations have gone through really unpleasant experiences The ‘boundary’ of this study for Company A was identified as when the focus is only on the results. An employee is not all encompassing the CBTA intervention that occurred for the alone in the organization. His role is not merely to achieve his Head Planning and Production. Company A had brought about own objectives and targets but also needs to be a collaborative changes to its workforce in the early 2000’s, as it sought to be member of the system that is together trying to achieve. Every globally competitive, and had under taken a process of person with his or her actions within the organizational system restructuring the role of its employees specially Planning and determines how smooth and conducive the environment is Production, and that’s why Head P&P who directly makes an for everyone to achieve. As a matter of fact every individual’s impact in restructuring was studied as case. As part of the role collaborative behaviour acts as a lubricant in the machine of Head P&P required having centralized control over all the thereby increasing the efficiency of the machine. For plant functioning, and for the organization competitiveness organizations to grow, they need to focus more on the his role and the job are very critical. collective effort than on the individual effort. Competency assessment and monitoring helps to identify the function and The Work not so functional behaviours. This subject has received little attention in the business world. A conscious effor t to Competency Based Training Model focuses on four stage transcend the individuals from not so functional to functional process: behaviour could be a worthwhile path to be taken by the training and development function. Evaluation of these subtle 1. Conceptualization changes in behaviour that are the manifestations of the 2. Instrument Construction enhanced competencies is the subject matter of the topic 3. Diagnosis and Analysis Competency Based Training Evaluation. 4. Unfreezing A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 7 Figure 1: The CBTA Model A systematic and thorough investment in all the four Job Description and Analysis Approaches leads to the ultimate objective of Training Need Identification. As per the survey findings for training need Job descriptions are lists of the general tasks, or functions, identification, personal interviews are most widely adopted and responsibilities of a position. Job descriptions are option (83 percent), direct interfacing with the workplace (80 usually developed by conducting a job analysis, which percent), and evaluation of performance/productivity measures includes examining the tasks and sequences of tasks (75 percent), questionnaire survey (66 per cent), and necessary to perform the job. The analysis looks at the areas organization analysis (64 percent). As per the study findings, of knowledge and skills needed by the job. Job description among different methods of training need assessment such as and analysis becomes necessary when competency based direct observation, interviews, surveys, group discussions, etc assessment conceptualization is to be drawn. The ‘questionnaire based survey’ is by far most commonly followed background helps in assessing what in the job is to be technique (Sah, 1991) and very recently Competency Based studied for, the purpose of the job, dimensions, major Training Need Assessment has proved to be the best option. activities, and accountability. This model lays heavy emphasis on strong ground work in the Role of the Head Planning and Production following stages: Purpose of the Job 1. Job Description and analysis 2. Identification of competencies to perform this job well The purpose of this job is to coordinate with various departments, plan and direct production activities, analyze 3. Defining Competencies data of operations in order to ensure costs within specified 4. Developing reliable and valid instruments to identify the limits, internal customer satisfaction, safe working practices, level at which and individual is operating. statutory compliance, competent and enthusiastic workforce. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 8 Dimensions 4. Performance Oriented production activities. 5. Compliance to Quality, Environment and OH&S 1. Total No. of Subordinates :6 management systems. 2. Annual Operating Budget : 35 crores 6. Efficient production processes 3. Total number of employees : 1000 Identification of Competencies Major Activities To C onceptualize the competency identification, the job 1. Convert sales forecast into a production plan analysis result culminates in the knowledge, skills and attitude. 2. Monitor plant level yield and cost parameters It needed to be conceptualize around the people who are 3. Drive quality, cost and yield improvement initiatives already successful in similar jobs and identify how they do 4. Ensure cross departmental harmony what they do and what has made them successful in their 5. Set targets for plant in charges fields has helped in defining the competencies required for 6. Carry out periodic performance reviews head P & P. An exploration for Second Approach: Instrument 7. Finalise production budgets Construction starts with the stratification of key competencies 8. Suggest process improvement ideas under the major categories of Functional Knowledge, Functional 9. Identify and develop competence Skills and Functional Attitude requirements. Accountability Each Competency is then defined in terms of the major elements of that par ticular competency. This lays the 1. Cost and quality targets achieved. foundation to identify various descriptors graduating from 2. Enhanced competence of the workforce a base to higher levels of behaviour as manifestations of 3. Sound systems in place that competency. Table-1: Job Competencies and Descriptors Job competencies/ FUNCTIONAL FUNCTIONAL SKILL KEY Descriptions KNOWLEDGE REQUIREMENTS AT T I T U D E S / T R A I T S REQUIREMENTS • Organization and • Interpersonal • Emotional Stability Business Awareness • Systems thinking • Asser tiveness • Ink manufacturing and • Analytical Thinking • Persistence trouble shooting • Planning and • Customer • Printing Inks and its organizing orientation application • Team Leadership • Initiative • Knowledge of customer needs • Financial Performance Indicators A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 9 Functional Knowledge Requirements 5. Financial Performance Indicators 1. Organization and Business Awareness a. The job needs awareness on various financial metrics that project the performance of the production and planning. The job needs: b. It also needs thorough information on various cost elements a. Understanding of the economic drivers in industry and and factors leading to those costs. how value is created at all levels in the organization. c. It needs the knowledge of available resources for optimal b. Knowledge to pro-actively scan the market place for performance. information on political, economic, and technological and other developments outside the normal boundaries of Functional Skill Requirements the business. 1. Interpersonal c. The understanding of how the organization is positioned for the future relative to its environment. It is the ability to act in a manner consistent with the values of the organization and influence others to adopt them. It involves 2. Ink manufacturing and trouble shooting creating approachability at all times. It also involves the ability to build effective relationships with others and present ideas a. The job calls for proficiency in the ink manufacturing persuasively and confidently. technologies and the awareness of the problems and ink performance issues. 2. Systems thinking b. It needs the knowledge of conditions required for optimal It is the ability to analyze a systemic model in context of performance, and all parameters related to various printing contrasting data, sense the trend and take appropriate actions. machines. It is the ability to detect cause and effect relationships and the ability to detect unintended consequences of a decision in 3. Printing Inks and its applications any part of the system. a. The job needs indepth knowledge of printing ink 3. Analytical Thinking technology and applications of various categories of inks. It is the ability to carryout indepth analysis of a problem or a b. The incumbent should have the knowledge to be able to situation highlighting out the obvious and apparent causes. It recommend a particular ink suiting the substrate and the is the ability to effectively get to the root cause of a problem operating conditions. using various data in a logical and rational manner. 4.. Knowledge of customer needs 4. Planning and organizing a. The job needs the knowledge of critical business interests It is the ability to organize activities and allocate resources to be able to negotiate with significant internal and external cost-effectively, and take into account the skills mix within the stakeholders and builds par tnerships with them. work group or team. It is the ability to plan effectively keeping the best balance of resources including human, financial and b. The person should be fully familiar with customer research technological resources to meet organizational goals. so that strategies meet customer needs. It is the ability to identify and anticipate future oppor tunities c. He should have the knowledge of the manufacturing niche and potential problems and incorporate contingency (“what the company has viz a viz competitors. if ”) plans into the planning process. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 10 5. Team Leadership 4. Customer Orientation It is the ability to foresee the conflicts and the ability to minimize It is displayed by the ability to negotiate critical business the same before it arises. It involves the disposition to give interests with significant internal and external freedom to work within the framework. stakeholders and builds par tnerships with them. It also can be ascer tained based on the familiarity with It also includes the ability to spot talent, utilize them effectively customer research so that strategies meet customer and coach them for enhanced performance. needs. It also involves communicating business opportunities and creating a vision that excites and motivates others. 5. Initiative Key Attitudes/Traits It is displayed when the people exceeds the bounds of ones formal authority and take actions in the interest of the 1.. Emotional Stability organization It is displayed by the ability to withstand emotional pressures Developing Instrument and exercise composed approach in various situations without being upset or tensed. Having developed the scales, the next activity was to choose the tools among those identified to test each 2. Assertiveness competency and develop a matrix giving details of what It is displayed by the ability to state clearly the expectations tools shall be used to test a par ticular activity. Each tool and take relevant actions in the interest of the company without was constructed in detail so that it should gather evidence having fear for loss of favour. towards what level of behaviour is demonstrated or likely to be demonstrated by the person. These tools were 3. Persistence constructed so that checking the group behaviour and individual behaviour could be possible thus, the third It is displayed by the ability to take actions relentlessly improving approach Diagnosing the KSA level and fur ther Analyzing the intensity of actions on every attempt to deal with all the gap could be initiated. obstacles. Table-2: Competencies- Tool Matrix Sl. Competencies/Tools In Case Role Business Presen- Psycho No. Basket Study Play Game tation metric test BEI 1 Organisation and Business Awareness 2 Ink manufacturing and trouble shooting 3 Printing Inks and its applications 4 Knowledge of customer needs 5 Financial Performance Indicators 6 Interpersonal 7 Systems thinking A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 11 8 Analytical thinking 9 Planning and organizing 10 Team leadership 11 Emotional stability 12 Asser tiveness 13 Persistence 14 Customer orientation 15. Initiative The holistic understanding reflects how the 15 competencies The items are: for the job of Head Planning and Production can be assessed, through seven intrusments via, in basket exercise, case study, A) analyzing the performance of the plant in the last 15 role play, business game, presentation, psychometric test and years and later give recommendations, behavioural event Interview Competency Assessment: Diagnosis and Analysis B) handling customer complaints regarding the ink The Activities: 1 in Basket Exercise property not being up to the mark C) other customer complaint regarding ink light fastness The whole module is divided in 5 activities where the role of Head Planning and Production is to be played, and this position D) detailing the customer complaints report which need is newly created. It is to be assumed that early this unit was to be pulled out from SAP managed by Director Operations and the role needs to report directly to Director Operations. The department includes four plants, headed each by a plant in charge. Each plant in charge E) review of current system and put appropriate system in reports to role. process development Table - 3: Itemwise Evaluation Matrix (In Basket Exercise) Competency Item A Item B Item C Item D Item E Organisation and Business Awareness Analytical thinking Customer orientation Systems thinking Knowledge of customer ’s needs A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 12 For each item the role need to indicate the decision and actions, Looking into the data the trainee was asked to analyze the any plan/proposal, the rationale for the actions or any other details and recommend appropriate measures and action plan relevant information sought and the justification thereof. The to the management to revive the case company. role might mention assumptions if any unless specified in the content of the In-Basket and based on the exercise evaluation The competencies were then assessed on three levels the are marked. Initial level where recommendations indicate limited presence of competencies on the four competencies under The competencies assess through this exercise was judged observation. Developing level where recommendations among three levels namely: indicate reasonable presence of competencies and last stage Proficient level where recommendations indicate high Initial level - Indicating the person under observation shows presence of competencies. signs of presence of this competency but not fully manifested in action. The Activities: 3 - Role Play Developing level - Indicating the person under observation Case: Here the trainee had played the role of head of has displayed this competency in a few areas through his manufacturing at ABC Chemicals. Background of the study was recommendations and proposals. that the management has taken serious steps to boost the performance management efforts. Ramesh who is the plant in Proficient-- Indicating that the person under observation has charge of the inks plant has of late have gone down on widely displayed this competency in various recommendations performance. Ramesh is an extremely emotional person and and proposals. finds difficult to take harsh comments and at times gets abusive when challenged. Trainee was asked to counsel him on his The Activities: 2 Case Study performance issue and develop a performance improvement plan. One of the volunteers will play Ramesh. Case study was developed where a case company’s data were provided. It was sought that the company has been ailing off Assessment – Role Play was rated on 10 point scale, and late on various accounts. With a wide spectrum of products it analysis was done of the following parameters. was finding it difficult to cope with the pressing production requirements. Datas of 5-year were provided on growth in 0 – Absence of the competency manufacturing capacities for various products, growth in actual 5 – Competency displayed showed above average levels. production in various products, capacity utilization for various products and customer complaints data for printing inks. 10 – Proficient display of the competency Ta b l e - 4 ( A ) : Role Play Assessment Competency Evidences that displayed the competency Rating (0 to 10) Interpersonal Asser tiveness Persistence Emotional Stability The Activities: 4 – Business Game Case: Trainee heads a Boat manufacturing company and it has got 50 boats order from the customer. The customer Trainee was given 5 volunteers. The game was to understand has also sent a sample so that the end products match how the trainee makes maximum resource utilization with due concern for the quality. t h e s a m p l e . Tr a i n e e h a s t o a c c o m p l i s h t h e t a s k b y A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 13 estimating, organizing the team and delegating the team 0 – Absence of the competency for making the boats in 60 minutes out of material given 5 – Competency displayed showed above average levels. to him. 10 – Proficient display of the competency Table-4 (B): Business Game Assessment Competency Evidences that displayed the competency Rating (0 to 10) Planning and Organizing Team Leadership Customer Orientation The Activities: 5 – Presentation Vigilance, Abstractedness, Private-ness, Apprehension, Openness to Change, Self-Reliance, Perfectionism and Tension Case: Trainee was asked to create a presentation for group of customers, clarifying the following aspects: • Each factor is measured on a scale of 1-10. • Each factor has a ‘Right’ meaning (8-10) and a ‘Left’ 1. Ink Manufacturing and trouble shooting meaning (1-3). 2. Printing Inks and its applications • The factor name represents the ‘Right’ meaning. 3. Knowledge of customer needs 4. Financial performance indicators and their • There is no ‘Good’ or ‘Bad’ orientation about any factor. implication in the production functions • The score is indicative of a certain level or type of The competencies assessment through this activity was: behaviour. Initial level - Indicating the person under observation shows • The appropriateness of the behaviour depends on signs of presence of this competency but not fully manifested the context. in action. The test gives a profile in terms of how much is each factor Developing level - Indicating the person under observation present in the person and gives an idea in terms of how much has displayed this competency in a few areas through his is the person likely to display that behaviour. No evaluation recommendations and proposals. was done as it was self explanatory. Proficient - Indicating that the person under observation has widely displayed this competency in various recommendations The Activities: 7 Behaviour Event Interview and proposals. Finally, a behavioural interview was structured to collect Presentation information about past behaviour. The Activities: 6 – Psychometric Test 16 pf Case:: Sample questions: o Tell me about a time when you were on a team, and 16 PF is an abbreviation for the 16 Personality Factors multivariate- one of the members wasn’t doing his or her share. derived by psychologist Raymond Cattell. It is a test that draws a profile in reference to the following personality factors. o Tell me about a time when you felt a need to update your skills or knowledge in order to keep up with Warmth, Reasoning, Emotional Stability, Dominance / Assertive, the changes in technology. How did you approach Liveliness, Rule-Consciousness, Social Boldness, Sensitivity, that? A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 14 o Describe a time when a customer got angry with you. agreement is there and to agree, counseling is a tool which How did you react? How did you resolve the unfreezes the learning mind. The counselee is explained why situation? the responses he/she gave were superior or inferior with respect to the expected results of the job. An agreement is o Please give me an example of a time when you took reached as to the gaps visible in the manifested behaviour. the initiative to improve a specific work process. This forms the very important unfreezing aspect of any learning process. Generally training needs are identified through various o Tell me about a time when a customer requested sources but little effort is made in terms understanding the special treatment that was out of the scope of normal needs of the person or the issues faced by the person. It is procedures. What was the situation and how did very important that before the person is exposed to the training you handle it? inputs, he/she owns the reality. Once the person owns the reality, the gap is considered to be o Describe a time when you had to use logic and good an appropriate training and development need and it can be judgement to solve a problem. further developed into: • Designing the training input based on the gaps o Tell me about a time when you had to cope with a stressful situation. • Sustaining the inputs over a period of time o Give me an example of a time when you used your • Reassessing the individual against the same fact-finding skills to solve a problem. competencies o Describe a time when you put your needs aside to • dentifying if the individual has demonstrated help a co-worker understand a task. How did you behaviour that is different from the ones pre training assist them? What was the result? – Evaluation. Conclusion The competencies Assessed were emotional stability, assertiveness, persistence, initiative and analytical thinking. It The purpose of the study was to build knowledge and also had three levels, Initial level - Indicating the person under theory in relation to the implementation of observation shows signs of presence of this competency but competency- based systems in the workplace by not fully manifested in action. investigating Head Planning and Production role and job. The study sought to determine how through an Developing level - Indicating the person under observation e f f e c t i v e a C B TA s y s t e m ; o n e c a n i n c r e a s e i t s has displayed this competency in a few areas through his enterprises’ competitiveness and productivity. recommendations and proposals. This case study demonstrates the value of taking an enterprise focus in developing appropriate training Proficient level - Indicating that the person under observation arrangements. Considerable effor t has gone into has widely displayed this competency in various p r o d u c i n g i n d u s t r y - w i se s t a n d a r d s i n c o m p e t e n c y recommendations and proposals. assessment. The challenge is to set standards to achieve consistency but also to ensure that they are Complete evaluation analysis had helped in identifying the gaps adapted to the needs of organizational effectiveness. which lead to the fourth approach ie the unfreezing stage. This case not only confir ms the impor tance of the Unfreezing stage is necessary because before any change can company ’s vision but also the value that comes from occur, people must believe the change is needed and the linking recognition and training arrangements into a change in competencies level can happen when the gap wider emerging set of industry skills. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 15 The case study demonstrates, how the approaches and stages Unit.” Management and Change . Volume 9, Issue if properly weaved can lead to considerable change in the 2, 2005. competency level, which in turn affects the potential of the job-doer. The value addition by a competency-based approach Richard Cur tain and Helen Or mond. “Implementing depends on a number of factors: (i) extent to which the Competency-Based Training in the Workplace: A Case Study in Workforce Par ticipation.” Asia competency study is based on the strategic needs of the Pacific Journal of Human Resources. 32 (2): organization; (ii) clarity with which the role or job is defined in (1993): 133-143. relation to the strategy; (iii) rigour of the process used in defining the competencies; and the accuracy in matching individuals Sah A.K “System Approach to Training Programmes.” Infinity vis-à-vis job needs. Books. New Delhi: 1991. The legacy of a company’s assessment center has made many Sanghi, Seema. “The Handbook of Competency developments which has imitated change in workplace Mapping: Understanding, Designing and activities and has been successful in addressing the deficiency Implementing Competency Models in areas with a change. Organizations.” Response Books. New Delhi: 2004. Keywords: Competency Assessment, Training Need Analysis, Job Competencies Sylvia C. Melancon and Mar tha S. Williams. “Competency-Based Assessment Center Bibliography and Reference Design: A Case Study.” Advances in K r i s h n a v e n i R . “ C o m p e t e n c y B a s e d Tr a i n i n g N e e d D e v e l o p i n g H u m a n Re s o u r c e s . Vo l . 8 , N o . 2 , Assessment for a Compressor Manufacturing (2006): 283-314. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 16 SCM and Marketing Management: Mutual Integration Pankaj M.Madhani 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 A Logistics Without effective sup 1234567 ply chain management, firms can not fulfill their 1234567 1234567 1234567 b p r o m i s e s a n d d e l i v1234567 e r on the promises made to customers. Poor 1234567 1234567 s s u p p l y c h a i n m a n a g e1234567 m ent is the cause of the failure of many branding 1234567 1234567 1234567 t 1234567 s t r a t e g i e s . T h e p a p e r h i g h l i g h t s a d v a n t a1234567 g es of integration between supply chain and 1234567 r 1234567 m a r k e t i n g m i x s t r a t e g y . I t d e m o n s t r a t e s 1234567 h o w supply chain management can leverage the 1234567 1234567 a 1234567 s t r e n g t h s o f m a r k e t i n g m i x s t r a t e g y . I t s h1234567 ows framework of marketing and supply chain 1234567 1234567 c m a n a g e m e n t i n t e r d e p e n d e n c e a n d i t s i m p1234567 lications. The paper proposes SC-MM matrix for 1234567 1234567 t further research in this area. 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 S 1234567 1234567 upply Chain Management (SCM) approach has ultimate user (Ellram and Cooper, 1990; Cooper and Ellram, grown significantly since the early 1990s, although 1993; Cooper et al ., 1997). the initial approach was introduced in early 1980 (Oliver and Webber, 1982). SCM can broadly be defined SCM focuses on efficiency of supply (i.e. cost reduction) a s “ t h e m a n a g e m e n t o f u p s t r e a m a n d d o w n s t r e a m 1234567 1234567and also effectiveness of supply (i.e. customer service), 1234567 relationships with suppliers and 1234567 1234567 while marketing mix strategy is 1234567 1234567 1234567890123456789012345678901212345678901234567890 customers in order to create 1234567 1234567890123456789012345678901212345678901234567890 1234567 more concerned on the demand 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 enhanced value in the final market 1234567 1234567890123456789012345678901212345678901234567890 side of the firm. Obviously, 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567 1234567890123456789012345678901212345678901234567890 place at less cost to the supply 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 t o g e t h e r, t h e y d e t e r m i n e t h e 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 chain as a whole” (Christopher, 1234567 1234567890123456789012345678901212345678901234567890 1234567 firm’s profitability and long term 1234567890123456789012345678901212345678901234567890 1234567 1234567 1234567890123456789012345678901212345678901234567890 1998). SCM systems coordinate 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 competitive advantages. The 1234567 1234567890123456789012345678901212345678901234567890 1234567 and integrate the flow of 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 1234567 synergies between SCM and 1234567890123456789012345678901212345678901234567890 1234567 1234567 materials, information, and 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 marketing have been widely 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 finances from supplier to 1234567 1234567890123456789012345678901212345678901234567890 acknowledged (e.g. Mar tin and 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567 manufacturer to wholesaler to 1234567890123456789012345678901212345678901234567890 1234567 G r b a c , 2 0 0 3 ; E l l i n g e r, 2 0 0 0 ; 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 P r o f . P a n k a j M . M a d h1234567 a n i , A s s i s t a n t P r o f e s s o r, 1234567890123456789012345678901212345678901234567890 retailer to the end consumer. 1234567 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 Soonhong Min and John Mentzer, I C F A I B u s i n e s s S c h1234567 ool (IBS), IBS House, 1234567890123456789012345678901212345678901234567890 1234567 SCM has been conceptualized 1234567 1234567890123456789012345678901212345678901234567890 N e a r G N F C I n f o To w1234567 e r, S G R o a d , B o d a k d e v, 1234567 1234567890123456789012345678901212345678901234567890 2000; Svensson, 2002), leading 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 as the total flow of a distribution A h m e d a b a d - 3 8 0 12345670 5 4 , G u 1234567890123456789012345678901212345678901234567890 1234567 j a r a t , E m a i l : Piercy (2002) to conclude that 1234567890123456789012345678901212345678901234567890 1234567 1234567890123456789012345678901212345678901234567890 channel from the supplier to the p a n k a j . m a d h a n i @ g m1234567 ail.com 1234567 1234567890123456789012345678901212345678901234567890 their better coordination could 1234567 1234567 1234567 A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 17 define competitive advantage in new ways. Within the Association (AMA) has unveiled a new definition of supply chain as well as the marketing literature, the need marketing in October, 2007 to reflect its broader role in to link both sides has already been emphasized. Influence the society. The new definition reads, “Marketing is the of SCM in areas which were originally domain of marketing, activity, set of institutions, and processes for creating, is increasingly recognized. According to Flint (2004), communicating, delivering, and exchanging offerings that effective marketing strategy implementation demands have value for customers, clients, par tners, and society at sound supply chain management, as it influences all large.” components of a marketing mix strategy. The rational of this paper is to emphasize that customer value In terms of the four P’s, marketers sought to produce enhancement is done through the integration of supply products that were desired by consumers at a price that chain with marketing mix strategy. Main purpose of this would be attractive, using promotion to indicate the paper is to fur ther explore convergence of SCM and benefits they offered over the competitors, and making marketing mix strategy and propose a matrix for fur ther them available at a place of the customers’ convenience. research in this area McCar thy ’s four P’s provided a suitable, effective and powerful nomenclature for the study and analysis of Marketing and Marketing Mix Strategy marketing strategy. Over the years, a number of researchers have sought to enhance the four P’s by adding other items The marketing mix of Product, Price, Promotion, and Place, that they believed were critical to marketing management. also known as four P’s of marketing was introduced by E. Additional variables suggested for inclusion into the Jerome McCar thy in 1960. Since then, there have been marketing mix are Packaging (Patty, 1997) and People many advances in marketing thought and conceptualization, (Baker, 1997). It has also been suggested that the list be including the broadening of the marketing concept expanded to include Personnel, Physical facilities, and (1970s), an emphasis on the exchange transaction (1980s), Process management (Magrath, 1986). Despite all the the development of Relationship Marketing and Total Quality changes of the past 49 years, the basic structure of the Management (1990s), and most recently (2007) an four P’s represents an essentially valid construct in current emphasis on society at large. The American Marketing situation also. Table 1: K-Mart Vs Wal-Mart Year 2001 K-Mart Wal-Mart No. of retail outlets: 2199 2624 Sales: 3 rd quar ter $8 Billion $52.7 Billion % change - 2.2 % 15.5 % Full year $36 Billion $139 Billion Profit / (Loss): First 3 quar ters ($344 Million) $4.4 Billion Inventor y Tur nover Ratio 3.6 7.3 Relationship between Supply Chain and Marketing Mix Strategy: Divergence Convergence Performance of retailer Filed bankruptcy on Growth in in 2001-02 January 22, 2002 margin and sales A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 18 K - M a r t V s Wa l - M a r t : I m p a c t o f S C M a n d Fur ther more, after finding out that adver tising circulars and Marketing Mix Strategy pamphlets did not work well, K-Mar t announced a new retailing strategy in 2001. According to new marketing To study impact of supply chain management and marketing strategy it decided to stop the weekly adver tising circulars mix strategy on retailers’ performance, it’s imperative to and tried to lure customers by cutting prices on thousands compare operations of K-Mar t and Wal-Mar t during year of items. But as customers were not informed of the price 2001-02. Both K-Mar t and Wal-Mar t were founded in 1962 cut, this resulted in sales drop for K-Mar t. (Saporito Bill et as discount retailers in US. Comparison of key statistics for al., 2002). K-Mar t’s repeated out of stock item notices K-Mar t and Wal-Mar t is given below in Table - I. were major cause of customers’ grievances. Its problems go back to its early days when it went on increasing the K-Mart: Divergence of Supply Chain and number of stores but failed to maintain pace in distributing Marketing Mix Strategy the merchandise to those stores. Also, its distribution system was comparatively slow compared to its For K-Mar t there seems to be a lack of synergy between competitors like Wal-Mar t. SCM and marketing strategy. A central aspect of K-Mar t’s marketing communication strategy was to issue pamphlets K-Mart was pretty happy with its age-old distribution system and circulars for promoting sale items. The mailers e v e n w h e n Wa l - M a r t w a s s t r e n g t h e n i n g i t s e x i s t i n g increased store traffic and invariably increased store sales. distribution systems and also opening new distribution However, the marketing effor ts were not tied into supply centers. K-Mar t’s supply chain became a serious brand chain operations. As a result, there were frequent shor tages liability, while Wal-Mar t turned its supply chain capabilities of promoted sale items. Customers came in to buy the and strengths into a core element of its marketing mix sale item, were frustrated that it wasn’t there, and left the strategy. The exact causes of K-Mar t’s failure can be K- M a r t s t o r e w i t h d i s s a t i s f a c t i o n . A f t e r s e v e r a l s u c h attributed to inventory related SCM problems. All these repeated experiences, customers began ignoring the K- had a negative effect on K-Mar t performance and it incurred Mar t’s promotional circulars altogether. huge losses even as its competitors became more profitable. Finally K-Mar t filed bankr uptcy on Januar y 22, Brand image is nothing but customers’ experience. 2002. Customer experience comes through various aspects such as product, people, processes and promises. The Wal-Mart: Convergence of SCM and Marketing customers also come with an expectation of enjoying all Mix Strategy the promises made by the brand. The primary promise for any customer will be product availability. When customers During same time period i.e. in year 2001, Wal-Mar t also visit the retail shop, they generally come with an responded to price cuts of K-Mar t by fur ther reducing price expectation that the products are always available. The and at the same time meticulously balanced its SCM and non-availability of the products leaves them disappointed m a r k e t i n g m i x s t r a t e g y. K- M a r t ’ s s u p p l y c h a i n a n d and dissatisfied. This problem is prominent, especially merchandise management system was a weak point in its during the promotion period. Lack of coordination whole process. By contrast, Wal-Mar t’s SCM is central to between marketing and the supply chain generated a brand its marketing mix strategy. Wal-Mar t’s business model is to nightmare and failure of K-Mar t’s marketing mix strategy. use automated SCM as a source of competitive advantage. Late deliver y to K-Mar t stores by distribution centers was Wal-Mar t has added inventor y and distribution centers to 11 percent of the time or 1 in 10 deliveries. This was a big better serve its customers and consistently deliver on setback as most retailers are late only five percent of the customer value proposition by employing world-class time (Muller, Joann, 2002). Even when the inventor y was supply chains. being received by the K-Mar t stores on time, the supply chain on average was wrong on 15 percent of stores’ Every firm’s competitive position in market place depends orders received from distribution centers. on its ability to adapt to the changes in the customers’ A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 19 Figure 1: The Convergence of SCM and Marketing Mix Strategy Competitive Advantages Marketing Mix S u p p l y Ch a i n Effectiveness Capability ▼ ▼ Supply Chain ▼ Marketing Mix Management (SCM) (Source: Model developed by author) demands and respond suitably. For many firms, it is still a executives across 28 countries, Deloitte (2002) found that challenge to link marketing strategy and process of supply only a minority (17 percent) of all firms have effectively chain management. The retail giant Wal-Mar t’s success lies linked their supply chain and customer / marketing not only in its low price strategy but also in the deep dislike operations. Not surprisingly, these integrated companies of the customers of its competitors to stock-outs. Wal- have outperformed their competitors on a wide range of Mar t is the world champion in supply chain management. performance criteria viz sales growth, market share, Wal-Mar t has capitalized its supply chain capability in customer service and ROI (return on assets). Figure 1 below effective design and execution of its marketing strategy. In explains convergence of SCM and marketing mix strategy. the case of Wal-Mar t, convergence of supply chain and With the help of Venn diagram Figure 1 also shows how marketing mix strategy provided a strong basis for sustained this convergence creates competitive advantages. competitive differentiation and long-term competitive advantages. Marketing’s strength lies in understanding the factors which affect the way in which customers perceive value (gaining The Convergence of Supply Chain and market and customer knowledge), finding out the differing Marketing Mix Strategy needs of various customer groups (market/customer segmentation), translating them into product and service The argument for combining SCM and marketing strengths bundles to meet those differing needs (customized is strong and compelling. According to Lee (2001), the product/service development) and marketing the bundles influence of marketing activities on supply chain, and vice or packages through customer value propositions (pricing, versa, have to be understood and coordinated, for branding, communication, promotion etc). If both sides example, pricing, promotion, as well as product mix effor ts of supply and demand are separated, supply will view influence delivery times and supply chain costs. Similarly, demand as exogenous and will fail to recognize that supply chain costs strongly impact marketing success of demand was influenced by the company ’s customer product and ultimately firm profitability. SCM and marketing interface. Also, if consistent and timely information does have not always been seen to be closely linked in many not flow from the customer interface, the firm will not be firms Rainbird M. (2004). In many firms, the supply side still able to respond to differentiated needs of individual seems to be disconnected from the demand side and customers and customer segments. Differentiated demand supply chain managers have only a faint idea of the drivers for products and services is a key input to SCM (Uta Jüttner behind customer demand. In a global survey among 249 et al. , 2004). Consequences of such information gap are A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 20 sub-optimal product and service development or supply chain. SCM has the strong impact on firm’s differentiation and ineffective product and service delivery. marketing mix strategy as it greatly influence brand promise, Stock-outs caused by mismatch between the demand and customers’ buying experience and overall customers’ value supply and high price of product due to the inefficient proposition. Firm’s brand promise must align with its SCM SCM process will definitely have a serious impact on the capabilities. It is necessary for marketing managers to pay brand image. more attention to their supply chains. They must be accountable for aligning the product and brand promise According to Piercy (2002), a SCM strength that is not with firm’s SCM capability, as it has a powerful impact on linked to marketing strategy of differentiation usually customer value proposition. Similarly supply chain managers confines the firm to competing on price and availability; a should have clear understanding of supply chain/marketing strategy followed, for example, by cheap generics interface and their role in effective execution of marketing providers of commodity products. Piercy (2002) also mix strategy. In shor t, marketing managers should know emphasized that superior marketing strength combined firm’s supply chain’s capabilities and limitations while with a lack of SCM strength leads to a high cost base and supply chain managers should know the brand promise slow delivery of product or services. Competing only and their role in fulfilling it. through SCM excellence hence assumes that price is a major determinant of competitive advantage in terms of T h e SC- MM M a t r i x : R e l a t i o n s h i p b e t w e e n cost differentiation. Moreover, Lee (2001) emphasizes the Supply Chain Capability and Marketing Mix problems of SCM acting independently of marketing Effectiveness management. Relationship of Supply Chain Capability and Marketing Mix However, there is strong evidence now emerging that the Effectiveness can be explained with help of the SC-MM way marketing mix strategy is designed and the way in which matrix as given below in Figure 2. fir ms suppor t it with their SCM capabilities can be a real source of competitive advantage. Success of firm’s The SC-MM matrix is having four quadrants viz Supply Chain marketing mix strategy depends on fulfilling the promise of Capability (Quadrant - 1), Competitive Disadvantages delivering the right product to the right place at the right (Quadrant - 2), Marketing Mix Effectiveness (Quadrant - 3) time. Firm’s SCM strengths and capabilities can make or and Competitive Advantages (Quadrant - 4). Detailed break ability to fulfill that promise. As a result, SCM has a explanation of each is given below: powerful impact, positive or negative on success of marketing mix strategy of firm. After an industry-wide survey Supply Chain Capability of more than 800 companies, Aberdeen Group (2008) published the research repor t “The Supply Chain In the scenario when Supply Chain Capability is high and Executive’s Strategic Agenda 2008,” in which 56 percent Marketing Mix Effectiveness is low as shown by quadrant of companies regard SCM as a market strategy differentiator, Q-1 of the SC-MM Matrix (Figure 2), provides SCM a customer ser vice differentiator or as a profit center, as advantages to the firms. Firms in this quadrant have a opposed to strictly a cost of doing business. distinctive capability in managing the SCM related functions. This enables firms to reduce time and costs in inventory It’s not possible to build successful branding strategy by management and hence enhance asset turnover. Firms with solely focusing on branding in terms of logos, slogans or a SCM capability usually place a strong emphasis on adver tisement campaigns while ignoring the role of supply activities such as strategic sourcing, collaborative planning, chain management. Firms should use their supply chain and inventory reduction e.g. JIT (Just-In-Time) inventory. capabilities as a basis to suppor t and build product brand However SCM focuses on the efficient matching of supply and ultimately strengthen marketing mix strategy. It can with customer demand but does not provide answers to reveal hidden organizational assets and ensure that firm’s the customer choice and preference, i.e. it does not help brand is not undermined by fulfillment deficiencies of the firm to find out what the customer perceives as A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 21 Figure 2: The SC-MM Matrix Supply Chain Capability Competitive Advantages High Q-1 Q-4 (Marketing Mix Deficiency) (SC-MM Convergence) Supply Chain Capability Competitive Disadvantages Marketing Mix Effectiveness Q-2 Q-3 Low (SC-MM Divergence) (Supply Chain Deficiency) Low Marketing Mix Effectiveness High (Source: Matrix developed by author) valuable, and how this customer-perceived value can be multi year low and is reflection of its declining market share translated into customer value propositions. In other words, and strained profit margin. To improve profit margin and supply chain efficiency by itself will not increase customer regain market share, Dell inc. needs to design product and value and satisfaction (Rainbird 2004). marketing mix strategy to cater high end segment of computer market. Dell inc. is world’s second largest personal computer (PC) company and fits well in this quadrant. It is having very efficient and lean supply chain. Dell inc. is having superior Competitive Disadvantages SCM capabilities but its marketing and product mix strategy are not properly aligned to fulfill customers’ requirement. In the scenario when Supply Chain Capability is low and This has resulted in stagnant growth and lost market share Marketing Mix Effectiveness is also low as shown by since last many financial quar ters. Dell is losing market share quadrant Q-2 of the SC-MM Matrix (Figure 2), creates overall to its competitor viz Hewlett-Packard (HP) - World’s largest disadvantages for firms. Firms in this quadrant have neither PC manufacturer - as it is struggling to balance notebook SCM nor marketing strengths and lacks overall competitive and desktop computer demand as its product mix and advantages. Firms need to build SCM capabilities and marketing strategy is focused much on low price segment synchronize it with effective marketing strategy to gain long of computers and not on high price, specialized and term competitive advantages. differentiated product category. Dell struggled to sell computers in the high performance segment. High-end Marketing Mix Effectiveness systems offer stronger profit margins than the volume business for which Dell is best known. The volume segment is also facing fierce competition from low cost Asian In the scenario when Supply Chain Capability is low and manufacturers. With increase in input cost of components, Marketing Mix Effectiveness is high as shown by quadrant Dell is struggling hard to maintain current market share and Q-3 of the SC-MM Matrix (Figure 2), creates marketing cost leadership. Dell’s stock price is currently trading at superiority for firms. K-Mar t nicely represents this quadrant. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 22 K-Mar t’s spent heavily on adver tising strategy and used of its competitors, star ting to use computers to track adver tising circulars to lure customers. Even though this inventory in 1969. In 1980 it was the first to adopt bar strategy worked very well, it also put a strain on codes and in 1985 it instituted EDI (Electronic Data merchandising and distribution systems because par ticular Interchange) for better coordination with suppliers. In 1987 demand for items came in suddenly. In retail stores, a massive satellite system linked all of the Wal-Mar t stores availability of supplies is one of the driving forces for to company headquar ters, enabling Wal-Mar t’s centralized customers going to any store. If the supplies are not readily IT depar tment to view real-time inventory data. Because of available, customers lose faith in their supplier and look this system there was very less excess inventory in the elsewhere for the merchandise. Promotions also increased Wal-Mar t supply chain. Wal-Mar t mandated to all major cost of K-Mar t’s suppliers, as they could not reliably predict suppliers for RFID (Radio Frequency Identification) their production output. Perhaps the biggest problem for implementation in supply chain. RFID enabled SCM enhances K-Mar t was its inability to keep stock on the shelves. K- visibility in supply chain and helps in effective execution Mar t was able to keep its goods fully stocked on shelves of marketing mix strategy. All these implementations only 86 percent of the time. In the industry, anything less allowed Wal-Mar t to reduce its inventor y and gain cost than 90 percent is considered unacceptable. Wal-Mar t, savings. This type of cost efficiency is a key for Wal-Mar t however, r uns close to 100 percent. K-Mar t’s supply chain in maintaining low price leadership and effective execution was not suppor tive of its marketing mix strategy. Although of marketing mix ( Product : As desired by customers, Price : K-Mar t’s marketing strategy was effective, divergence of Every Day Low Price, Place : On shelf availability, Promotion : SCM and marketing mix strategy was main reason for K- Effective promotion strategy synchronized with supply mar t’s failure. chain) strategy. Competitive Advantages Conclusion In the scenario when Supply Chain Capability is high and The globalization of manufacturing and distribution, Marketing Mix Effectiveness is also high as shown by increasingly demanding customers, and tightening firm quadrant Q-4 of the SC-MM Matrix (Figure 2), generates margins have raised the stakes for retailers, consumer overall competitive advantages for firms. Firms in this products, manufacturing, transpor tation and distribution quadrant have superior SCM as well as effective marketing companies. Main factors driving SCM transformation are strategy. In this case synchronization of SCM and marketing globalization of supply, increasing competitive pressures, mix strategy creates sustainable competitive advantages and dwindling product life cycles. All these have put for fir m. Wal-Mar t per fectly matches this quadrant. Wal- greater pressure on the SCM processes of firm. Even minor Mar t is the power house today in SCM because of its delays and blockages of supply can cause major problems readiness to share infor mation with its suppliers. Wal-Mar t in front end customer operations, as well as for back end approached its suppliers as if they were par tners and not suppliers and business par tners. Product quality, reliable adversaries, and by implementing such a collaborative delivery schedule, shor t lead times, customer ser vice, planning, forecasting and replenishment programme, they along with cost reduction, are the primary operational have begun a JIT programme that reduced inventory carrying sources advantage in today ’s competitive environment of costs for both the retailer and its supplier. Wal-Mar t has retail industry. These are the key drivers for the retail industry emphasized EDLP (Every Day Low Price) selling, which is for its competitiveness. An effective SCM is likely to more predictable for both customers and the distribution respond positively to most of these drivers. Effective and pipeline. efficient SCM has become a much more impor tant strategic and competitive variable in current economy and plays vital Wal-Mar t’s SCM practices have served as a model for other role in firm’s survival and long term growth. major retailers. Wal-Mar t was a pioneer of using information technology in the distribution process and supply chain. The success of Wal-Mar t is testimony to the power of SCM Wal-Mar t invested in technological systems earlier than most processes that are aligned with marketing strategies. It is A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 23 critical for marketing and supply chain managers to jointly C u s t o m e r L o y a l t y a n d N e t w o r k E f f i c i e n c y. ” recognize where the supply chain can be leveraged to Research Repor t. < www.deloitte.com> enhance competitive advantages of firm. With the help of superior SCM and effective marketing mix strategy, firm E l l i n g e r, A . E . “ I m p r o v i n g M a r k e t i n g / L o g i s t i c s C r o s s - achieves differential advantages. The SCM and marketing Functional Collaboration in the Supply Chain.” mix functions are not separate rather they are inter twined. Industrial Marketing Management. 2000. The SC-MM matrix establishes relationship between SCM capability and marketing mix effectiveness. The effective Ellram, L.M. and Cooper, M.C. “Supply Chain Management, and efficient SCM processes facilitate task of marketing Pa r t n e r s h i p s , a n d t h e S h i p p e r - T h i r d Pa r t y mix strategy by delivering the right product - in the right Relationship.” The International Journal of Logistics quantity, at the right location, and at the right price. This Management. 1990. paper suppor ts the emerging view that SCM strategy and marketing strategy are highly connected. Flint, D. “Strategic Marketing in Global Supply Chains: Four Challenges.” Industrial Marketing Management. 2004. Keywords: Supply Chain Management; Marketing; Marketing Mix; Strategy. Lee, H.L. “Demand-based Management.” White Paper for the Stanford Global Supply Chain Management References Forum. 2001. Aberdeen Group. “The Supply Chain Executive’s Strategic Agenda 2008: Managing Global Supply Chain Magrath, A .J. “When Marketing Services, 4 Ps Are Not Tr a n s f o r m a t i o n . ” R e s e a r c h R e p o r t . < w w w. Enough.” Business Horizons. 1986. aberdeen.com> 2008. Mar tin, J. and Grbac, B. “Using Supply Chain Management Baker, Michael J. “People - the fif th P of Marketing.” White to Leverage a Firm’s Market Orientation.” Industrial Paper. University of Strathclyde , Glasgow, UK: Marketing Management. 2003. 1997. Muller, Joann. “Attention Kmar t: Find a Niche.” Business Christopher, M. Logistics and Supply Chain Management: Week. 2002. Strategies for Reducing Cost and improving Service. (2nd ed). London: Financial Times Oliver, R .K. and Webber, M.D. “Supply Chain Management: Publishing, 1998. Logistics catches up with Strategy.” Cited in: C h r i s t o p h e r, M . ( e d . ) 1 9 9 2 . L o g i s t i c s – t h e Cooper, M.C. and Ellram, L.M. “Characteristics of Supply Strategic Issues . London: Chapman and Hall, Chain Management and the Implication for 1982. Purchasing and Logistics Strategy.” The International Journal of Logistics Management. Patty, Tom. “Mastering the new five P’s of Marketing.” 1997. 1993. < h t t p : / / m e r z l i k i n . c o m / a r t i c l e s / m a r ke t i n g / 5 p - marketing.html> Cooper, M.C., Lamber t, D.M. and Pagh, J.D. “Supply Chain Management more than a New Name for Logistics.” Piercy, N. Market-led strategic change (3rd edition). The International Journal of Logistics Management. Oxford: Butterwor th-Heinemann, 2002. 1997. Rainbird, M. “Demand and Supply Chains: The Value Deloitte Research (2002), “Consumer Business Digital Loyalty Catalyst.” International Journal of Physical Networks – Increasing Shareholder Value through Distribution and Logistics Management. 2004. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 24 Saporito Bill, Baumohl Ber nard and Szczesny, Joseph R. Svensson, G. “Supply Chain Management: The Re- “K Mar t’s Blue Period.” Time, < http:// Integration of Marketing Issues and Logistics w w w. t i m e . c o m / t i m e / m a g a z i n e / a r t i c l e / Theor y and Practice.” European Business Review. 0,9171,1001599,00.html> 2002. 2002. Soonhong Min and John Mentzer. “The Role of Marketing Uta Jüttner, Susan Baker and Mar tin Christopher. “Demand in Supply Chain Management.” International Chain Management – Integrating Marketing and Journal of Physical Distribution and Logistics Supply Chain Management.” White Paper. Cranfield Management. 2000. University, School of Management, England: 2004. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 25 Organizational Climate: BPO Industry Avinash Kumar Srivastav A The study aims at understanding how organizational climate operates Dynamics in BPO industry. Six motives of organizational climate were measured b in BPO companies. Exper t Influence and Extension were respectively s the dominant and backup climates. Affiliation was the weakest t climate. Exploratory factor analysis of climate motives revealed three meta-climates r operating in BPO industry: (1) Brazen Shirking combining heightened Dependency and de- a emphasized Affiliation, (2) Empowered Collaboration representing heightened Extension c and de-emphasized Control, (3) Obsession for Exper tise combining heightened Expert t Influence and de-emphasized Achievement. 70.30% variance explains these meta-climates that reflect the realities in BPO industry. O rganizational performance is delivered through a ciency of operations cannot be realized unless the business number of well-designed business pro- processes are optimized and aligned with customer c e s s e s (Tenner and DeToro, 1997). Business requirements and business environment outside and with process orientation (Skrinjar, Stemberger and Hernaus 2007) structures, systems, roles and operating procedures within is necessary for successful organizations. According to the organization. Outsourcing has been recognized as one McCormack and Johnson (2000), business process of the best business strategies for attaining higher operational orientation in organizations efficiency at lower operational emphasizes processes instead cost for large companies 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 of hierarchal or functional 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 (Grossman and Helpman, 2005). boundaries, focusing on the 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 The most common form of main outcomes and the 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 outsourcing, viz Business resulting customer satisfaction. 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 Process Outsourcing (BPO) 1234567890123456789012345678901212345678901234567890123 It increases internal coor- 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 means transferring the opera- dination in the organisation, 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 tional ownership of some of the breaking down functional silos. 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 Empirical study by McCormack, 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 business processes to an 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 external provider for managing Johnson and Walker (2003) has 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 D r. A v i n a s h K u m a r S r i v a s t a v, D i r e c t o r, D a y a n a n d a 1234567890123456789012345678901212345678901234567890123 the outsourced business demonstrated that business 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 Sagar College of Management and Information 1234567890123456789012345678901212345678901234567890123 process orientation results in 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 Te c h n o l o g y, K u m a r a s w a m y L a y o u t , B a n g a l o r e – processes according to per- 1234567890123456789012345678901212345678901234567890123 1234567890123456789012345678901212345678901234567890123 formance metrics prescribed by enhanced connectedness 1234567890123456789012345678901212345678901234567890123 560078, Email: [email protected] 1234567890123456789012345678901212345678901234567890123 within the organization. Effi- the parent company. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 26 Understanding Organizational Climate organizational climate in BPO industry. The framework of motivational analysis of organizational climate developed Forehand and Glimer (1964) have described Organizational by Pareek (1989) has been deployed in this study. Climate as the personality of an organisation that distinguishes one organization from others. According to Motivational Analysis of Organizational Climate Pareek, (1989), it results from interaction among organizational components (structure, systems, culture, Pareek (1989) has identified 12 impor tant dimensions of leader behaviour and employees’ psychological needs). organizations. These dimensions are: Orientation, Organizational climate depends on the perception held by Interpersonal Relationships, Supervision, Problem the organizational members about different dimensions of Management, Management of Mistakes, Conflict organisation’s working. Organizational climate has significant Management , Communication , Decision Making , Tr ust , influence on the motivation and behaviour of organizational Management of Rewards , Risk Taking and Innovation and members. Sales, market share and profits generated by a Change . Motivational Analysis of Organizational Climate company are lagging indicators of its performance because (MAO-C) (Pareek, 1989) is based on the assessment of they appear as a manifestation of company ’s performance. these dimensions. MAO-C defines the following six motives On the contrary, organizational climate is a leading indicator of organizational climate. of organizational performance (Litwin, Humphrey and Wilson, 1978). Organizational climate can predict the trend for Achievement : Achievement of goals and attaining quality organizational performance (being excellent or poor). and excellence are emphasized in the organisation; Rationale for the Study Exper t Influence : Use of exper tise for the benefit of the organisation is emphasized; BPO industry is full of controversies (Thite, 2008). Conflict between quality and quantity is prominent in BPO industry. Extension : Organizational members are focused on making The operators are expected to minimize the duration of themselves relevant and useful to others. calls but maximize client satisfaction through each call. Whereas, BPO industry has contributed for the growth of Control : Consolidation of personal power is the main Indian economy, it has also eroded the quality of life of its concern of organizational members. employees, causing imbalances in the society. BPO industry is ridden with problems (Mehta, et al., 2006). Compulsion Dependency : Decisions/actions are deferred by seeking to work in ‘graveyard shifts,’ results in social-disconnect for seniors’/others’ approval for everything. BPO employees. Srivastav (2008) has identified three meta- stressors (representing the most significant issues/ Affiliation : Building and maintaining friendly personal problems) encountered while performing in organizational relationships is most impor tant for the organisation, even roles in BPO industry. These meta-stressors are Role Distance when it leads to impairment of organizational performance. (role occupant distancing from his/her role and his/her role distancing from connected roles), Work-Life Imbalance Objectives (difficulty in balancing between work requirements and life requirements), and Role Inadequacy (non-availability of The study aims at understanding how organizational climate required competence and resources for role performance). operates in BPO industry through the following: Since, different types of organizational climate promote different kinds of motivated employee behaviour, better (i) Identifying the dominant and backup climate motives understanding about how organizational climate operates in BPO industry; in BPO industry would be helpful for enhancing the (ii) Determining the relationship between different climate functionality of organizational climate to address its critical motives; problems. This study attempts to reveal the dynamics of (iii) Identifying the meta-climate motives in BPO industry. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 27 Method backup (having the second highest score) climates in BPO companies under study. Correlation analysis was Site: The study was conducted in 15 prominent BPO done to study relationships among the six motives of companies operating in Bangalore, India. organizational climate. Correlation coefficients with significance levels of p < .1, .05, or .01 were used for Sample: Six motives of organizational climate were measured interpretation. Exploratory Factor Analysis (EFA) was done on 106 randomly selected respondents, using MAO-C on the six climate motives to identify the meta-motives of (Pareek, 1989) instrument. climate operating in BPO companies under study after ensuring the appropriateness of factor analysis model Measure: MAO-C instrument is based on MAO-C framework through Bar tlett’s test of sphericity (Malhotra, 2008). developed by Pareek (1989). It comprises 72 statements Principal Component Analysis for extraction and Varimax representing the six motives of organizational climate for for rotation were employed. Eigen values, equal to or each one of the twelve dimensions of organizational greater than one, were considered for EFA . Loadings lower working. For each dimension, respondents rank the given than .6 were taken as low; equal to or higher than .6 but six statements from 1 to 6 (1 for least likely and 6 for most lower than .7 were taken as moderate; equal to or higher likely situation). The scoring key reveals the motive than .7 but lower than .8 were taken as high; equal to or represented by each statement. Respondents enter the score higher than .8 were taken as very high. Moderate, high or for each motive for each dimension on MAO-C scoring matrix very high loadings were used for the interpretation of by referring the scoring key. Total motive score is obtained factors. by adding the motive score for each dimension. Each climate motive is scored in the range 12-72. Results Analysis: Statistical analysis was done using SPSS package. As depicted in Table 1, Exper t Influence is the dominant Means were computed for each motive of organizational climate and Extension the backup climate. Affiliation is the climate. Rank ordering of means of climate motives was done weakest climate and Achievement the second weakest to identify the dominant (having the highest score) and climate. Table 1: Climate Variables – Mean and Rank Variable Mean Rank ACH 41.37 5 EXP 43.03 1 EXT 42.69 2 CON 42.10 4 DEP 42.33 3 AFF 40.63 6 As shown in Table 2, Achievement has significant negative Bar tett’s test of sphericity on organizational climate data correlations with Exper t Influence and Affiliation . Exper t rejected the null hypothesis that climate variables are Influence has significant negative correlations with Extension uncorrelated. The approximate Chi-square statistic is 262.241 and Control . Extension has significant negative correlations with 15 degrees of freedom which is significant at .001 with Control and Affiliation . Control has significant negative level. Table 3 fur nishes the results of exploratory factor correlations with Dependency and Affiliation . Dependency analysis. Three factors with Eigen values grater than one, has a significant negative correlation with Affiliation . explaining 70.30 percent variance, were extracted. Factor 1, A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 28 Table 2: Intercorrelation of Climate Variables ACH EXP EXT CON DEP EXP - .29*** xx xx xx xx EXT - .05 - .20** xx xx xx CON - .06 - .22** - .36*** xx xx DEP - .08 - .01 - .11 - .35*** xx AFF - .36*** - .11 - .14* - .18** - .32*** Note: * p < .1; ** p < .05; *** p < .001 Table 3: Factor Loadings of Climate Variables Variable Factor 1 Factor 2 Factor 3 ACH .47 -.06 -.63 EXP .10 -.05 .78 EXT -.09 .76 -.38 CON -.11 -.86 -.28 DEP .67 .27 .37 AFF -.85 .11 .18 Eigen Value 1.42 1.40 1.39 Percentage Variance 23.72 23.38 23.20 Cumulative Variance 23.72 47.10 70.30 N o t e : Ve r y h i g h , h i g h , a n d m o d e r a t e l o a d i n g s a r e h i g h l i g h t e d explaining 23.72 percent variance, has a moderate positive focus on building and maintaining the required exper tise at loading on Dependency and a very high negative loading the company level is necessary for ensuring the survival of on Affiliation . Factor 2, explaining 23.38 percent variance, BPO companies. This explains why Exper t Influence is the has a high positive loading on Extension and a very high dominant climate (Table 1) in BPO companies under study. negative loading on Control . Factor 3, explaining 23.20 BPO industries have to focus on the business process(es). percent variance, has a high positive loading on Exper t Business process orientation leads to enhancing internal Influence and a moderate negative loading on Achievement . coordination and connectedness in BPO industry (McCormack, Johnson and Walker, 2003). This explains why Discussions Extension is the backup climate (Table 1) in BPO companies under study. BPO companies are in existence because of their capability to handle the outsourced process (Thite, 2008). They focus Factor 1 indicates that employees are not taking responsibility on recruiting the manpower with the requisite background, for a decision or an action; they are invariably seeking others’ and training them for delivering the required exper tise. approval before taking action. While passing the buck, Maintaining the required exper tise at the company level, employees do not care about maintaining friendly personal however, is a daunting task because of constant attrition of relationships, ending in offending others. In reality, BPO trained employees (Gupta and Gupta, 2008). Continuous employees generally work in a narrow area of responsibility; A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 29 they have a strong tendency for seeking approval of their industries need to constantly maintain and demonstrate their seniors before acting on anything that is perceived to be high level of exper tise for the outsourced process being beyond their narrow area of responsibility. Continued handled or to be handled. Persistently high levels of attrition passing on the buck as explained above is annoying for in the BPO industries, however, significantly hamper their clients and seniors in the organisation but the employees exper tise. They have no option but to put in their highest do not bother. Factor 1 can therefore be named as Brazen level of effor ts on a continuous basis for recr uiting Shirking.. BPO employees generally suffer from high stress employees with the required expertise and impar ting regular and even burnout. They also have to work for extended training to them for maintaining the required level of hours and in night shifts (Mehta, et al., 2006; Gupta and expertise in the company. Maintaining the required expertise Gupta, 2008; Srivastav, 2008). Under the circumstances the in face of high rate of attrition is a formidable task. Intensive employees have the tendency to disengage themselves on recruitment and training on a continuous basis in BPO the smallest pretext as soon as possible, even when it industries drains their resources to such an extent that they causes annoyance to clients, peers or superiors. This cannot give proper attention to any other aspect of working explains the existence of meta-climate represented by for achievement of overall organizational goals. Factor 3 can brazen shirking. Negative correlation between dependency therefore be named as Obsession for Exper tise . and affiliation climates found in this study has also been repor ted by Srivastav (2006). Conclusions Factor 2 indicates that employees emphasize relating to The study confirms the realities of BPO industry. BPO others in the team, group, and organisation; promoting companies cannot survive unless they have the required collaboration and teamwork. While promoting collaboration process exper tise. They are so much over whelmed with and teamwork, employees do not indulge in consolidating creation, development and maintenance of process their personal power. Actually, within their narrow area of exper tise that they cannot focus on anything else. BPO responsibility, BPO employees generally have freedom to employees have very narrow areas of responsibilities, within act. They also need to work as a team for reasonable success which there is empowerment and teamwork. Outside their of handling the outsourced process. Factor 2 can therefore substantially narrow areas of responsibilities, BPO employees be named as Empowered Collaboration.. Business process avoid taking responsibility, not being bothered about orientation of BPO industry (McCormack, Johnson and displeasing seniors and customers. Walker, 2003) discourages individualism (deemphasizing control climate) in favour of teamwork (extension climate) Keywords : BPO Industry, Organizational Climate, Meta- and could be the reason for the existence of empowered Climate Motives. collaboration as a meta-climate. Negative correlation between extension and control climates found in this study References has also been repor ted by Srivastav (2006). Forehand, G.A . and Glimer, B. Von H. “Environmental Factor 3 indicates that employees emphasize the use of Variations in Studies of Organizational Behaviour.” exper tise in the organization. Thite (2008) has emphasized Psychological Bulletin . Vol.62, No.6, (1964): 361- the impor tance of process exper tise for the sur vival of BPO 382. industry. While emphasizing on acquiring, using and maintaining exper tise in the organization, attainment of Grossman, G.M. and Helpman, E. “Outsourcing in a Global overall organizational goals are getting neglected. This Economy.” Review of Economic Studies . 72 (1), explains unusual negative cor relation between exper t (2005): 135-159. influence and achievement climates found in this study. Po s i t i v e c o r r e l a t i o n b e t w e e n e x p e r t i n f l u e n c e a n d Gupta, S.S. and Gupta, A . “Vicious Circle of Attrition in the achievement climates has been repor ted (Srivastav, 2006). BPO Industry.” The Icfai Journal of Organizational For survival in a highly competitive environment, BPO Behaviour . Vol.7, No.2. (2008): 57-66. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 30 Litwin, G.H., Humphrey, J.W., and W ilson, T.B. “Organi- Sen, F., and Shiel, M. “From Business Process Outsourcing zational Climate: A Proven Tool for Improving (BPO) to Knowledge Process Outsourcing (KPO): Per for mance.” in W.W. Burke (Ed.), The Cutting Some Issues.” Human Systems Management . Vol. Edge: Current Theory and Practice in Organization 25, (2006): 145-155. Development. (1978): 187-205, La Jolla, California: University Associate. Skrinjar, R ., Stemberger, M.I., and Hernaus, T. “The Impact of Business Process Orientation on Organizational Malhotra, N.K. Marketing Research – An Applied Orientation . Performance.” Proceedings of the 2007 Informing 5 th ed., Prentice-Hall of India, Private Limited, New Science and IT Education Joint Conference , Delhi, (2008): 612-615. Available at <http://proceedings. informing science.org/InSITE2007/InSITE07p171- M c C o r m a c k , K . a n d J o h n s o n , W. B u s i n e s s P r o c e s s 185Skri357.pdf.> Last accessed on April 5, 2009. Orientation: Gaining the E-Business Competitive Advantage , St Lucie Press, Delray Beach, Florida, Srivastav. “Organizational Climate in Public Sector – An USA: 2000. Empirical Study.” Management and Change . McCormack, K.P., Johnson, W.C., and Walker, W.T. Supply Vol.10, No.2, (2006): 65 -75. Chain Networks and Business Process Orientation. Srivastav. “Dynamics of Role Stress in BPO Industry.” Icfaian St Lucie Press, Delray Beach, Florida, USA: 2003. Journal of Management Research . Vol.7, No.12, Mehta, A ., Armenakis, A ., Mehta, N., and Irani, F. “Challenges (2008): 7-16. and Oppor tunities of Business Process Outsourcing in India.” Journal of Labour Research . Tenner, A .R. and DeToro, I. J. (1997), Process Redesign, Vol.27, No.3, (2006): 323-338. The Implementation Guide for Mangers , Addison- Wesley, Reading, MA , USA . Pareek, U. “Motivational Analysis of Organizations - Climate (MAO -C).” in J.W. Pfeiffer (Ed.), The 1989 Annual: Developing Human Resources University Thite, M. “Business Process Outsourcing Issues.” in Wankel, Associates, San Diego, California, USA , (1989): C. (Ed.), 21st Century Management: A Reference 161-180. Handbook , Sage Publications Inc., 2008. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 31 Brand Awareness: Baby Food Products Keerthi Pandian and Ramachandran K.K. A A healthy generation of children leads to a healthy generation Child-Health b of youth replete with vigour and vitality. It's these future s citizens who determine the social and economic development t of the country. The paper focuses on brand awareness, preference and satisfaction r in the baby food products. Five hypotheses were framed on the given objectives a and have been tested at five percent level of significance. The analysis concludes c that the level of satisfaction of the buyers is more in cerelac among the brands t considered for the study. C hildren are the most crucial resources in any country lopment. To star t with, a highly nutritional food is essential for they contribute to the overall development of for the children below three years of age, who are generally the nation. A healthy generation of children leads to termed as babies. 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Sometimes, it may 123456789012345678901234567890121234567890123456789012345678901212345 a n d I n t e r n a t i o n a l B u s i n e s s , D r. 123456789012345678901234567890121234567890123456789012345678901212345G R D C o l l e g e o f S c i e n c e , were a child requires 123456789012345678901234567890121234567890123456789012345678901212345 even extent to three to 123456789012345678901234567890121234567890123456789012345678901212345 Civil Aerodrome Post, Avinashi Road, Coimbatore– 123456789012345678901234567890121234567890123456789012345678901212345 attention on both physical 123456789012345678901234567890121234567890123456789012345678901212345 123456789012345678901234567890121234567890123456789012345678901212345 6 4 1 0 1 4 , Ta m i l n a d u , E - m a i l : d r k k r o f f i c e @ g m a i l . c o m four years of age based 123456789012345678901234567890121234567890123456789012345678901212345 and psychological deve- 123456789012345678901234567890121234567890123456789012345678901212345 on the individual child’s A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 32 development, their daily requirement and its likeness towards quality, cost, availability and convenience 3 . By considering the taste, food, etc. These baby foods come in multiple the above factors, a survey was conducted to know the varieties and are produced by different manufacturers which buyer ’s brand awareness, preference and satisfaction on are designed for ease of eating as soft liquid paste. It is the baby food products in Coimbatore city of Tamilnadu. only food industry that holds parents’ captive for a few short years and it never theless holds a sizeable and growing Objectives of the Study m a r k e t a t m a s s 1. B a s e d o n t h e a b o v e r e a s o n , t h e s e manufacturers have diversified in all the ways from taste, Ø To ascer tain the brand awareness. flavour to organic and halal food stuffs and even with DHA Ø To deter mine the reasons to prefer a brand. (docosahexaenoic acid) and ARA (arachidonic acid) the Ø To elicit the level of satisfaction on various aspects two fatty acids that are naturally found in mother ’s milk that in the brand. promotes child’s mental and visual development. Hypothesis The manufacturers are at their pace innovating variations in these products for it to encompass various strata of the society and there exists social and ethical issues against The study is based on the following hypotheses: these baby food products. The government of India has regulated the marketing practices of baby food ♦ There exists no significant association between the manufacturers, by enacting the Infant Milk Substitutes, different brands of baby food products consumed Feeding Bottles and Infant Foods (Regulation of Production, and (a) the source of awareness, (b) the number Supply and Distribution) act in 1992 and was fur ther of infants in the family, (c) the age group of infants, amended in June 2003. This act is solely oriented towards, (d) the number of years of using the product and regulating the production, supply and distribution of infant (e) the purchase decision. milk substitutes with a view to protect and promote breast feeding. It prohibits the adver tising and promotion of the ♦ There is no significant difference between the product to the general public, any hospital, medical demographic variables of the respondents and the practitioner, pharmacy, and to any pregnant woman. With factors that forms the reasons for choosing a these prevailing environments there exist a number of par ticular brand. manufacturers such as Nestle, H.J. Heinz Company, Wochardt Ltd., Amul , etc and these manufacturers have ♦ There is no significant difference between various established brands that cater to basic needs. brands and the factors that forms the reasons for choosing a par ticular brand. Statement of the Problem ♦ There is no significant difference between the brands and the factors considered for satisfaction. In today ’s fast paced digitized environment, most babies are weaned on the food prepared by the manufacturers. ♦ There is no significant relationship between the Many manufacturers have introduced a convenient-oriented- brands consumed and the level of satisfaction. baby food product for the busy young mothers 2. The growth of baby food products may be attributed by the factors like Methodology the change in the life style associated with the increased number of working women, star ting a family at later age and The area of the study is Coimbatore city. Period of the study the need of financial prioritising for having children. Indeed, is Sep. 2007- Sep. 2008. Parents are sample respondents. the preference and purchasing decisions on baby food are Primary data is collected from two hundred buyers by using shaped by many factors such as the parents’ likes and a structured questionnaire. Convenient sampling method is dislikes, the baby ’s taste, the views of grandparents, friends, administered in this study. The following statistical tools are peer groups, current fashion and health advice, brand name, used: a) Percentage analysis b) Chi-square analysis, and c) A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 33 ANOVA . All the tests are car ried at five percent level of respondents are as follows: only one child -59 percent significance. A pilot study on a sample of sixty respondents (117), two children – 41 percent (81) and more than two – were conducted to identify the most consumed brand among 1 percent (2). The age of the children who are below one the various brands such as Amul, Amul Spray, Amulya, Nan, year are 40 percent (80), and 34 percent (68) of children Lactodex, Lactogen, Pedia sure, Farex, Dexolac, Cerelac and fall under the age group of 1-2 yrs. Further more, 18 percent Nestum . Of these Lactogen, Pedia sure, Farex, Cerelac and (36) and 8 percent (16) of the respondents children are Nestum were consumed most and hence considered for classified between 2-3 yrs and 3-4 yrs of age respectively. the study, while determining the age group, children who The most preferred brand by the buyers for their children are four and below four years of age were considered. was Lactogen which counted for 40 percent (80), followed by Cerelac 24 percent (48), Farex 16 percent (32), Nestum Limitations of the Study 14 percent (28) and Pediasure six percent (12). A maximum of 62 percent (124) of the respondents are purchasing the The survey was conducted only in Coimbatore city. The brand, nearly for two yrs, and 42 percent (84) of them are findings of the study depend purely on the responses given aware of the product through their friends and relatives and by the sample respondents. the buyers purchase decision, 30 percent (60), depends fairly on the suggestions offered by spouse/relatives. Findings of the Study Buyer’s Brand Awareness on Baby Food Product Majority, 70 percent (140) of the respondents/buyers are female. 57 percent (114) of the total (200) respondents fall Brand awareness is the extent and the degree by which a under the age group of 20-30 yrs. While considering the buyer recognizes a par ticular brand under prevailing educational qualifications of the respondents 34 percent different conditions. In general, buyers are aware of the (70) are post graduates. 30 percent (61) are government baby food product in the market through their friends, employees and 36 percent (71) of those monthly income relatives, doctors and through medias. These sources and ranges between Rs.10,000-Rs.15,000. The numbers of various other personal factors of the respondents also have children who are below four years of age in the family of the impact on the awareness of these brands. Table 1: Chi-square: Relationship between Different Brands and Source of Awareness, Number of children, Age group of Children, Number of years of using, Purchase Decision. Factors Chi-square value df Sig value S /NS Source of awareness 15.041 16 0.522 Not sig Number of children 11.137 8 0.194 Not sig Age group of children 99.504 12 0.000 sig Number of years of using 84.345 8 0.000 sig Purchase decision 11.673 16 0.766 Not sig Table 1 indicates that the hypothesis is accepted (Not these brands. Whereas, in the case of age group of the Significant) on the study factors like source of awareness children (0.000) and number of years in using (0.000) the (0.522), number of children in the family (0.194) and the brand the hypothesis is rejected (Significant). This purchase decisions (0.766) of the buyers. It describes that concludes that there exists a significant association between these factors does not create any sense of awareness against the above factors and brand awareness. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 34 Ta b l e : 2 A N O VA R e l a t i o n s h i p b e t w e e n De m o g r a p h i c Va r i a b l e s a n d Re a s o n s f o r c h o o s i n g a Pa r t i c u l a r Br a n d . Factors Sum of df Mean F S/NS squares square Sex Between groups 3.780 1 3.780 .286 .594 Within groups 2621.500 198 13.240 Total 2625.280 199 Age of the Between groups 43.400 3 14.467 1.098 .351 respondents Within groups 2581.880 196 13.173 Total 2625.280 199 Education of the Between groups 16.471 4 4.118 .308 .873 respondents Within groups 2608.809 195 13.379 Total 2625.280 199 Occupation status Between groups 136.218 5 27.244 2.123 .064 Within groups 2489.062 194 12.830 Total 2625.280 199 Income per month Between groups 74.702 4 18.675 1.428 .226 Within groups 2550.578 195 13.080 Total 2625.280 199 No. of children Between groups 9.314 2 4.657 .351 .705 <4 yrs of age Within groups 2615.966 197 13.279 Total 2625.280 199 Age group of chil- 741.609 3 247.203 25.722 .000* dren Between groups Within groups 1883.671 196 9.611 Total 2625.280 199 * Significant Buyer’s Brand Preference on Baby Food Product reputed name, easy availability, highly nutritious, easy preparation and various other factors were also considered. Brand preference is choosing a par ticular brand over the These factors were scaled as most impor tant, impor tant, other brands. In general, buyers prefer a par ticular brand by neutral, least impor tant and not impor tant by the buyers considering cer tain features that prove to be a specialized while choosing a par ticular brand. character of that brand. With respect to the study, cer tain features were considered to determine the brand preference Table 2 indicates that the hypothesis is accepted (Not of the buyers. They are prompt quantity, rich quality, apt Significant) in the following demographic variables like prices, good taste, nourishing flavour, air-tight package, sex(0.594), age of the respondents (0.351), education of A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 35 Table 3: ANOVA: Relationship between Brands and Reasons for choosing a Particular Brand Sum of Mean Factors Squares df Square F S/NS Prompt Quantity Between Groups 50.00 4 12.500 15.943 0.000* Within Groups 152.88 195 0.784 Total 202.88 199 Rich Quality Between Groups 40.90 4 10.224 12.022 0.000* Within Groups 165.82 195 0.850 Total 206.72 199 Apt prices Between Groups 32.32 4 8.080 4.546 0.002* Within Groups 346.56 195 1.777 Total 378.88 199 Good taste Between Groups 25.94 4 6.485 7.614 0.000* Within Groups 166.06 195 0.852 Total 192.00 199 Nourishing flavour Between Groups 35.33 4 8.832 7.966 0.000* Within Groups 216.19 195 1.109 Total 251.52 199 Air-tight package Between Groups 43.37 4 10.843 16.097 0.000* Within Groups 131.35 195 0.674 Total 174.72 199 Reputed name Between Groups 41.25 4 10.313 8.192 0.000* Within Groups 245.47 195 1.259 Total 286.72 199 Easy availability Between Groups 37.32 4 9.331 12.653 0.000* Within Groups 143.80 195 0.737 Total 181.12 199 Highly nutritious Between Groups 24.11 4 6.027 11.313 0.000* Within Groups 103.89 195 0.533 Total 128.00 199 Easy preparation Between Groups 3.98 4 0.995 1.473 0.212 Within Groups 131.70 195 0.675 Total 135.68 199 Others Between Groups 13.11 4 3.277 2.197 0.071 Within Groups 290.89 195 1.492 Total 304.00 199 *Significant the respondents(0.873), occupation(0.064), monthly brand. Whereas the hypothesis is rejected (Significant) in income(0.226) and number of children in the family(0.705). case of ‘age group of the children’ (0.000), and hence it is This explains that these demographic factors of the buyers the only factor which forms the reason for choosing a (parents) do not form the reasons to prefer a par ticular par ticular brand. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 36 Table 3 indicates that the hypothesis is accepted (Not brands and hence the buyers prefer different brands and Significant) for the factors like easy preparation (0.212) and does not confine to a par ticular brand. for those factors (0.071) that are not considered for the study. In all other factors such as prompt quantity (0.000), Buyer’s Brand Satisfaction on Baby Food Product rich quality (0.000), good taste (0.000), nourishing flavour (0.000), air-tight package (0.000), reputed name (0.000), Brand satisfaction is the level of contentment that a buyer easy availability (0.000), highly nutritious (0.000) the gets from the assor ted promising factors of the brand after hypothesis is rejected (Significant), which concludes that using it. Those promising factors that were taken for the there exist a significant difference in these factors of the study were price, quantity, taste, flavour, package, brand Table: 4 ANOVA: Relationship between Brands and Factors considered for Satisfaction Sum of df Mean F S/NS Factors Squares Squares Price Between groups 7.124 4 1.781 1.407 .233 Within groups 246.876 195 1.266 Total 254.000 199 Quantity Between groups 10.858 4 2.714 1.731 .145 Within groups 305.737 195 1.568 Total 316.595 199 Taste Between groups 10.059 4 2.515 1.880 .115 Within groups 260.816 195 1.338 Total 270.875 199 Flavour Between groups 7.168 4 1.792 1.289 .276 Within groups 271.027 195 1.390 Total 278.195 199 Package Between groups 13.308 4 3.327 1.980 .099 Within groups 327.712 195 1.681 Total 341.020 199 Brand name Between groups 5.328 4 1.332 .781 .539 Within groups 332.752 195 1.706 Total 338.080 199 Availability Between groups 15.439 4 3.860 3.370 .011* Within groups 223.316 195 1.145 Total 238.755 199 Durability Between groups 12.928 4 3.232 2.088 .084 Within groups 301.852 195 1.548 Total 314.780 199 *Significant A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 37 name, availability and durability. These factors were scaled (0.011). To conclude the buyers are satisfied with the as highly satisfied, satisfied, undecided, dissatisfied and factors such as price, quantity, taste, flavour, package, highly dissatisfied. brand name and durability for the brands that they consume. Table 5 depicts the mean value and standard Table 4 indicates that the hypothesis is accepted (Not deviation of different baby products consumed by the Significant) in the following factors namely, price (0.233), buyers. With the highest mean value of 21.37 it is found quantity (0.145), taste (0.115), flavour (0.276), package that the level of satisfaction is greater in Cerelac among (0.099), brand name (0.539) and durability (0.084). This the other brands. With the significant value of 0.032 in explains that there is no difference in satisfaction of the Table 6, the hypothesis is rejected (significant) and there buyers with respect to these factors, whereas the exists a relationship between the brands consumed and hypothesis is rejected (Significant) in the factor availability level of satisfaction. Table 5: Descriptive Statistics Baby food Mean N Std. Deviation products consumed Pediasure 19.0000 12 4.95434 Lactogen 19.0375 80 4.66455 Nestum 19.7857 28 4.21072 Cerelac 21.3750 48 4.04035 Farex 18.6563 32 4.20145 Total 19.6400 200 4.47892 Table: 6 ANOVA Significance of Overall Satisfaction Sum of Mean Squares df Square F Sig. Between Groups 210.009 4 52.502 2.707 .032 Within Groups 3782.071 195 19.395 Total 3992.080 199 Conclusion determine a par ticular brand. The future implications for these products include a change in packing strategy with The study revealed that there exists a common trait among variations in shape, innovations in flavour and taste and can the buyers that weaning the child with these foods would take the sachet route with minimum price. Assurance of the enhance the health of the child and as such it gives a ingredients used in the baby food product will be a strong psychological satisfaction to the parents. Moreover, the age selling point for the manufacturers of a par ticular brand. As, of the child is the determining factor for the parents to this baby food market is static, it holds the buyers only for A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 38 a shor t period, the manufacturers can go for an innovative Baby Foods.” Food Review. Vol.20, Iss.2, (1997): formula of products and rejuvenation of brand image in order 13. to capture the new born market. As the world is becoming BPNI Bulletin. October 2003. flattened with the IT revolution and with more women in the working arena, there is more potential market for these baby Books Reference food products in the for thcoming years. Indeed, this baby food product has taken its impor tance in the early and initial David, L. Loudon and J. Della Bitta. “Consumer Behaviour.” growth of a child and helps every woman in this digitized Tata Mcgraw Hill Publishers . 2000. era. Gandhi, J.C. “Marketing a Managerial Introduction.” Tata Journal References Mcgraw hill Publishers. 1998. Debbie, Howell. “Oh Baby! Mass Consumer ga-ga over Gupta, S.P. “Statistical Methods.” 26 th Edition Sultan Chand Channel’s Infant Offerings.” DSN Retailing Today . and Sons Publishers. 1999. Vol.41, Iss.11, (2002): 59. For Busy Mothers. Market Watch, Food Engineering and Kothari, C.R. “Research Methodology.” New Age International Ingredients. (2004): 25. Private Ltd. Publishers. 1999. Liz Tuley. The Baby Food Bonanza, Food Manufacture. Vol.74. Iss., 5. (1999): 18. Leon, G. Schiffman and Lesh, Lazar Kanak. “Consumer Behaviour. ” 5 th Edition. Ashok K. Ghosh Publisher. Jane, Bainbridge. “Quality Supersedes Quantity, Sector 2002. Insight–Baby Food And Milk.” Marketing . (2008): 28-29. Philip, Kotler. “Marketing Management.” 9 th Edition. Practice Michael, J. Harris. “Consumers Pay a Premium for Organic Hall of India Publishers. 2003. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 39 Product Mix Strategies: FMCG in Indian Market Mohankumar T.P. and Shivaraj B. A Gap-Filling This research paper exposes the attitudinal effects on the decision- b making process of consumers in purchasing FMCG products in a mass s market confined to HUL and P&G Companies soaps and detergents. This t ar ticle introduces the existing and desired product mix strategies in FMCG categories bridging r the gap between companies and the customers. The ar ticle star ts with the problem statement a followed by significance, objectives, scope, methodology, limitations of the study, summary of c findings and suggestions and recommendations. t G ood research depends on a good problem. A soaps and detergents marketed in India, there seems to be well-defined problem is pre-requisite for good a gap in the existing product mix offered by the companies research. In this context, the research problem and the customer requirements. The diverse segments in considered is “Product Mix Indian market are yet to be 123456789012345678901234567890121234567890123456789012345678901 Strategies of Leading FMCG in 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 completely taped by the 123456789012345678901234567890121234567890123456789012345678901 Indian Market,” with special 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 existing players. The current 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 study has attempted to re f e r e n c e t o S o a p s a n d 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 know the existing and 123456789012345678901234567890121234567890123456789012345678901 Detergents. FMCG market in 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 desired product mix India is one of the fastest 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 strategy in FMCG categories growing markets in India. The 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 with special emphasis on product categories which are 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 Soaps and Detergents in 123456789012345678901234567890121234567890123456789012345678901 marketed under this, consists 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 Indian Market. This research of variety of product lines and 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 is going to bridge the gap items. In India, there are M r. M o h a n K u m a r T. P. , C o m m e r c e a n d M a n a g e m e n t 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 between companies and the Fa c u l t y, M a h a r a n i ’ s Wo m e n ’ s A r t s a n d C o m m e r c e 123456789012345678901234567890121234567890123456789012345678901 good number of companies 123456789012345678901234567890121234567890123456789012345678901 College, Mysore, Email: [email protected] 123456789012345678901234567890121234567890123456789012345678901 customers in terms of the 123456789012345678901234567890121234567890123456789012345678901 manufacturing and marketing 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 customer expectation and 123456789012345678901234567890121234567890123456789012345678901 Prof.Shivaraj B., Bahadur Institute of Management FMCG. Among all, HUL and 123456789012345678901234567890121234567890123456789012345678901 123456789012345678901234567890121234567890123456789012345678901 companies understanding Sciences, University of Mysore, Manasagangothri, 123456789012345678901234567890121234567890123456789012345678901 P&G are in the forefront. In 123456789012345678901234567890121234567890123456789012345678901 of the customers’ expe- 123456789012345678901234567890121234567890123456789012345678901 Mysore-06, Email: [email protected] 123456789012345678901234567890121234567890123456789012345678901 spite of the wide range of ctation. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 40 Significance of the Study respondents are selected from the various segments in Bangalore and Mysore. The collected data is analyzed to Though, the wide range of soaps and detergents is being meet the research objectives. marketed by the companies, consumers belonging to different segments are not effectively delivered with the right products Methodology of the Study in right price. The studies, so far conducted on product mix strategies, are not adequately focusing on bridging the gap Research Design between marketer and the prospects. Therefore, current study is designed to address those issues, which are very essential This research is descriptive as well as exploratory in design; in designing customer oriented marketing mix strategy. This it is used when the study is not conversant with the problem study is impor tant because of the type of infor mation it environment. Such type of investigation is concerned mainly generates to assist in developing effective product mix in soaps to determine the general nature of problems and variables and detergents. Since, product mix decision is critical decision, related to it. This mainly relies on secondary source of it involves huge investment, efforts, and right information saves information. Primary data has been collected through companies from the disaster. intensive fieldwork from the sample respondent with the aid of structured questionnaire. Objectives of the Study Data Analysis Techniques The research aims at identifying salient features of the Product Mix Strategies adopted by two FMCG companies in Statistical tools like tests, cluster analysis etc., and other respect of some of their offerings. The following are some methods of presentation like diagrams, char ts, and graphs of the specific objectives of the study. have been used to draw a precise conclusion. 1. To assess the product mix strategy used in consumer Sources of Data market. a) Primary Data 2. To evaluate the Product mix strategy of HUL and P&G Sample survey through questionnaire has been administered in Indian Market. to the target respondents at various locations in Mysore and Bangalore city for comparative study of consumer 3. To determine the customer perception and opinion behaviour and perception. on product lines offered by the select companies. b) Secondary Data 4. To assess the existing and desired product mix in FMCG categories in India. Gathered information from the association of FMCG Industries consumer protection organizations, FICCI, CII and 5. To evolve new possible oppor tunities for FMCG in industry archives. Other required information has been Indian market. collected from published journals, books, and concerned research repor ts, annual repor ts of the company ’s Scope of the Study periodicals, seminar papers, business magazines, dailies, and internet. The scope of the study deals with the area that has been considered in the research. The area considered in the Limitation of the Research research is product mix strategies of Hindustan Uni-Lever and Proctor & Gamble , in Indian Market. Consumer opinion The study is mainly based on survey method of research. on the product mix strategy of the HUL and P&G is collected Therefore, the limitations of survey method are expected to with the aid of designed questionnaire. The sample influence the out come of the research. Product mix is an A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 41 Table No.1: Showing the Soaps and Detergent Brands usage of the Sample Respondents Sl.No. Brand Name No. of Respondents No. of Respondents Presently using Used in the past 1. Lux 59 27 1. Liril 30 25 2. Breeze 15 05 3. Jai 07 03 4. O.K 00 17 5. Lifebuoy 34 26 6. Fair & Lovely Soap 04 00 7. Hamam 19 10 8. Pears 33 15 9. Rexona 40 10 10. Dove 08 03 11. Camay 02 00 12. Salvo 04 05 13. Ivory Soap 06 03 14. Joy 00 00 15. Surf 65 20 16. Tide 58 25 17. Wheel 62 27 18. Henko 28 05 19. Ariel 64 20 20. Zest 00 00 21. Rin 48 26 area of competitive advantage; companies were hesitant to are currently using and 27 percent used in the past reveal the information on product mix strategy they followed. switched over to other brands. From this it is inferred The information provided by the companies is assumed to that building a brand loyalty is a challenging task in be factual and its validity is not questioned. soaps and detergent market. The study indicates that the respondent presently using a par ticular brand of T h e a b o v e Ta b l e N o . 1 i n d i c a t e s t h e c u r r e n t l y u s e d toilet soap and detergents and also was used in the brands and the brand used in the past. It also shows past. As the individual tastes and preferences keep that the customers are not loyal to any brand for a longer changing, majority of the respondents are switching period. In case of Lux 59 percent of the respondents over from one brand to another. Table 2: Monthly spending on Bathing Soaps Spending Soaps Percentage Below Rs.50 40 40 50-100 30 30 100-200 15 15 Above200 15 15 A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 42 The below Table No.2 shows that spending on soaps by the study shows that even on detergent majority of the respondents per month varies from one another. Majority of respondents i.e. (45 percent) spend below Rs.50 followed the respondents i.e. 40 percent who spends Below Rs.50 by Rs.50-100 of 30 percent, Rs.100-200 of 15 percent and per month followed by 30 percent Rs.50-100, 15 percent above Rs.200 of 10 percent. The study revealed that the Rs.100-200 and 15 percent spend above 200 Rs. per month. percentage of the money which the respondents are The below Table No.3 shows that the surveyed respondents spending on soaps and detergent is very minimal of their how much money spends on detergent per month. The income. Table 3: Monthly spending on Detergent Cake Spending Detergents Percentage Below 50 45 45 50-100 30 30 100-200 15 15 Above 200 10 10 The above Table No.4 shows that the surveyed respondents percentage of the money which the respondents are how much money spends on detergent powder per month. spending on soaps and detergent is very minimal of their The study shows that the highest percentage of the income. According to the respondents, the money spent respondents i.e. 45 percent spends below Rs.50 followed on detergent cake and detergent powder are inter related. by Rs.50-100 of 30 percent, Rs.100-200 of 15 percent and If they use more powder, they will use less cake and vice above Rs.200 of 10 percent. The study revealed that the versa. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 43 Table 4: Monthly spending on Detergent Powder Spending Detergent Percentage Powder Below 50 45 45 50-100 30 30 100-200 15 15 Above 200 10 10 A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 44 Ta b l e : 5 P u r c h a s e d Q u a n t i t i e s o f De t e r g e n t Ca k e p e r M o n t h Quantities Detergents Percentage 1 - 3 25 25 3 - 6 60 60 Above6 15 15 No. of Soaps used per month The above Table No.5 gives the picture of different the remaining 30 percent use above six soaps per quantities of soaps the respondents use per month. m o n t h . This g i v e s t h e i n f o r m a t i o n a b o u t t h e t o t a l 40 percent of the respondents use 3-6 soaps per consumption of the selected respondents and it also month, followed by 30 percent they use 1-3 soaps and gives the market potential for the soap. Ta b l e 6 : C o n s u m e r Aw a r e n e s s o f Di f f e r e n t So a p s o f H L L S o a p s No. of Respondent Premium Popular Economy Awareness 25 60 55 Unaware 75 40 45 A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 45 Premium Brand Soaps Popular Brands Economy Brand Soaps A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 46 The above table No.6 reveals about the awareness status of urban market and the price of the product is not affordable different soap segments i.e. Premium brand, Popular brand to all the segments. and Economy brand which are available in the market. Here Premium brands are comparatively of higher price, targeted In Popular brand, though the name itself is popular it is sorry to the higher end market. Popular brands prices are less to reveal that only 60 percent of the respondents are aware when compared to premium soap. Company spends more and exposed to this brand. In fact, company should put on promotional activities like advertisement, brand celebrity serious effort to reach all the segments in the market through and on other promotional schemes. It is targeted to mid their aggressive marketing. segment in the market. Economy brands are lesser in price, targeted to lower end of the market. In Economy brand the study reveals that 55 percent of the respondents are aware of and exposed to this Economy brand Among the respondents 75 percent are not aware of the and 45 percent of the respondents are not aware of this brand. It Premium brand soaps. It inferred that the availability of the means that all soaps which are marketed by different companies product is not equally distributed. It is restricted only to in the market are not aware of 100 percent. Table 7: Consumer Awareness of P&G Detergent Cake and Powder No. of Respondent Premium Popular Economy Awareness 35 70 40 Unaware 65 30 60 Premium Brands A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 47 Popular Brands Economy Brands The above Table No.7 shows the awareness status of the In economy detergent brands only 40 percent of the different detergent segments, as we studied above as in respondents are aware of and exposed to the detergents soap segments. i.e. Premium brand, Popular brand and and remaining 60 percent of the respondents are not aware of the brands. This study reveals that different segmented Economy brand in detergent. brands are targeting to different market segments. Marketing strategies used by the companies are restricted to that In premium detergent brands 35 percent of the respondents par ticular segment only. For e.g. premium brands soaps and are aware of and exposed to this detergent, the remaining detergents are targeting to higher end, so all the promotional 65 percent are not aware of the brands. activities used by the company will reach to that par ticular market only. Like that, to other economy brands also. Only In popular detergent brands 70 percent of the respondents the popular brands may use both mid segment and are aware of and exposed to the brands. And 30 percent of economy segment, some times by higher end people may the respondents are not aware of the brands. also be exposed to have this product. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 48 Ta b l e 8 : Th e Fa c t o r s c o n s i d e r e d t h e m o s t b y t h e Co n s u m e r w h i l e p u r c h a s i n g So a p s Factors No of Respondents Percentage Price 55 55 Size of the soap 12 12 Quality 80 80 Lather 42 42 Fragrance 28 28 Skincare 64 64 Durability 05 05 Promotional scheme 06 06 The above Table No.8 directs that what percentage of preferred the most because of the quality of the soaps the respondents preferred the most while purchasing while purchasing, followed by 64 percent because of soaps. Because human wants and tastes are different skin care, 55 percent are because of price, 28 percent from person to person, place to place and time to time. are because of lather in the soap, then size, promotional According to the survey 80 percent of the respondents scheme and durability. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 49 Ta b l e 9: T h e Co n s u m e r c o n s i d e r t h e Fa c t o r s t h e m o s t w h i l e p u r c h a s i n g D e t e r g e n t s Factors No of Respondents Percentage Price 43 43 Size of the soap 14 14 Quality 72 72 Lather 37 37 Fragrance 23 23 Skincare 72 72 Durability 47 47 Promotional scheme 35 35 T h e a b o v e Ta b l e N o . 9 s h o w s t h a t w h a t p e r c e n t a g e o f percent durability, 43 percent price, 37 percent lather, the respondents preferred the most while purchasing 35 percent promotional scheme, fragrance and size the detergent. According to the survey 72 percent of of the soap. The study also revealed that same the respondents prefer red the par ticular detergent c u s t o m e r u s ed d i f f e r e n t d e t e r g e n t b r a n d f o r d i f f e r e n t because of the quality and skin care, followed by 47 fabrics. Ta b l e 1 0 : T h e Cu s t o m e r r a n k i n g o f Va r i o u s Br a n d s o f H U L a n d P & G Ranks/ Palmolive Salvo Pears Lux Lifebuoy Dove Camay Ivory Ist Rank 10 0 35 15 10 21 0 9 II 9 2 20 19 20 15 0 15 III 20 16 14 20 15 5 4 6 IV 15 30 5 6 9 0 30 5 V 10 22 0 10 15 7 31 5 A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 50 A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 51 The above Table No.10 shows the ranking status of different Salvo and Camay have been given the IV rank by 30 percent soap brands of Hindustan Unilever Limited and Proctor and of the respondents each, followed by Palmolive by 15 Gamble in the minds of surveyed respondents. 35 percent percent, Lifebuoy by nine percent. of the respondents have given I rank to Pears , followed by 21 percent have given I rank to Dove . Camay was given V rank by 31 percent of the respondents, followed by Salvo by 22 percent, Lifebuoy by 15 percent. II rank has been given to Pears and Lifebuoy by 20 percent of the respondents each, followed by Lux by19 percent, Dove Summary of Findings and L ife buoy by 15 percent each. Palmolive and Lux have been given III rank by 20 percent of The analysis made in the foregone chapter is presented in the respondents each followed by Lifebuoy by 15 percent, this section as summary of findings. The impor tant findings pears 14 percent. are as follows: A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 52 1. Hindustan Unilever soaps and detergent line are much factors influences on bathing soaps are different from wider than Proctor and Gamble brands in Indian market. the factors influencing the detergents purchase. 2. Hindustan Unilever soaps and detergents brand are 9. Monthly spending on soaps and detergents varies from available in all levels of the market i.e. upper end, mid income to income. In the research it is found that 40 segment and lower end of the market, where as Proctor percent of the respondent spends less than Rs.50 per and Gamble brands are mainly focusing on higher end month on bathing soap and 30 percent of the of the market. respondents spend Rs.50–Rs.100 per month and remaining 30 percent of the respondents spend more 3. There is a wide gap in the perception about different than Rs.100 per month. It shows that higher income brands of soaps and detergents among urban and rural group purchase premium brands of bathing soap. consumers. Therefore spending on bathing soap is more than Rs.100 per month. 4. Quality is the major purchase determinant of soaps and detergent among the higher income group 11. Quantity of soaps and detergents purchase and family respondents, where as price is the most impor tant size is highly correlated. In the study it is found that factor in the lower end of the market. the families with more members are using more than one bathing brands. Therefore this gives an input in 5. Among the Premium, Popular and Economy brands of designing a family pack consisting of multi brands of a bathing soap segments, Popular brands are exposed company. to 70 percent of the e respondents followed by economy 40 percent and premium brands 35 percent. 12. Among the HUL top of the mind awareness company in soaps and detergent category followed by Godrej, 6. Pears of Hindustan Unilever Limited is ranked as number Proctor & Gamble, Wipro etc. one brand by about 35 percent of the respondent. Dove of Proctor and Gamble by 21 percent of the 13. Among the studied brands Lux is currently being used respondents, followed by Lux by 15 percent of the by as many as 59 percent of the respondent, followed respondents. by 34 percent Lifebuoy , 30 percent Liril and other brands. In detergent Surf is being used by 65 percent 7. The factors influence in purchasing detergent includes followed by 62 percent Wheel, 58 percent Tide and price, size of the soap, quality, lather, fragrance, skin other brands. care, durability, promotional scheme. Among them skin care as more impor tant factor for more than 72 14. Product mix strategy adopted by HUL , as per the study percent of the respondents followed by quality 72 is full market coverage with multi brands and strong percent, durability 47 percent, price 43 percent, lather distribution net work in both rural and urban markets, 37 percent, promotional scheme 35 percent, fragrance whereas Proctor and Gamble follows quality leader 23 percent and size of the soap 14 percent of the strategy with select brands in soaps and detergents. respondents. Conclusion 8. The factors influencing in purchasing bathing soap are price, size of the soap, quality, lather, fragrance, skin Soaps and detergents market are the fastest growing in the care, durability and promotional scheme. Quality is world among the consumer product. The growth is the most impor tant factor for 80 percent of the propor tionate to the growth of population. Among the respondent, skin care 64 percent, price 55 percent, consumer goods manufacturer and marketer, Unilever and lather 42 percent followed by fragrance, size, Proctor and Gamble are in the fore front. In India too promotional scheme and durability. Therefore the Hindustan Unileve r and Proctor and Gamble created a new A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 53 dimension in consumer goods marketing. The soaps and physical distribution is effectively blended to adapt to the detergents offered by these two giants are available in flexible market requirement. market offer to accommodate diverse segments in consumer market. Suggestion and Recommendation Hindustan Unilever , being a subsidiary of Unilever U.S. is Based on the analysis made in the foregone chapter and the localized in its presence in Indian market. The company has general observation made on soaps and detergents market, many land mark products which are popular and having top the following few suggestions are made. of the mind awareness among Indian consumers. Proctor and Gamble, though entered Indian market off late has Effective Product-based Market Segmentation registered in the mind of the customer as a quality leader. In the study it is found that, soaps and detergents are in the Soaps and Detergents offered by these companies are market, as if they are catering to the needs of the mass in the closely competed one another. According to this study, market, as if they are catering to the needs of the mass HUL stand out as a most admired company in terms of the market. Therefore in the study it is suggested to make a fine range of products and services. The wide range and width tune market segments through product differentiation, for of the product mix is the strength of the company. Soaps e.g. Lux or Hamam soap offered by HUL are targeted on the and Detergents among the other product lines offered by same customer segments, competing each other. One is HUL are the drivers of the sales revenue. The driving brands doing well at the cost of other. Company, either by adding among the soaps and detergents are Lux, Dove, Palmolive, some different ingredients or by effective positioning the Rexona, Liril, Surf excel, Wheel etc. difference in each brand and creating a separate segment for each of the brands, then the existence of the brands Proctor and Gamble is known for its quality products in can be managed. consumer market, focusing largely on the upper end of the market. Some of the popular brands in soaps and detergents Reaching all ends of the Market are Pears, Camay, Ariel, Tide etc. The analysis of the study reveals that, P&G is focusing on In conclusion, it is obvious that both HUL and P&G are placed the higher end of the market. The company being a in a very advantageous position in Indian market. Indian consumer goods manufacturer and compete with other market is diverse in terms of income, geographical players in the market, in the study it is recommended to dispersion, regional differences and tradition. In the study it design soaps and detergents for lower and mid market is found that there are still some untapped market segments segments also. Indian market is made up of strong middle in both upper and lower end of the market. This is evidenced class customer followed by lower income group. P&G is by the brand switching in soaps and detergent market, for ignoring the impor tant market segments. As it is evidenced e.g. percentage of the respondents currently using Lux is by many companies, the bottom line of the firms rests on about 59 percent about 27 percent of the respondents have the sales revenue generated in low and mid market, company switched to other brand from Lux . During the interaction can develop products for the same. with the respondent it was known that customers are not completely satisfied with the brands currently available in Focusing more on creating Brand Awareness the market. Therefore the companies need to spend time and money on market study to determine and device The analysis in the study shows that brand awareness is the suitable market offers. key for success in consumer market. In India there is a huge gap among the customers in terms of literacy, income, urban Being well known brands in Indian market, HUL and P&G can and rural composition, and also media exposure. Fur ther it capitalize the market potential, provided a systematic is known by the study that the P&G’ s soaps and detergent marketing mix in terms of product, price, promotion and brands are unaware with most of the consumers. Therefore A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 54 it is suggested in the study P&G should pay more importance Belk, Russell W. and Richard W. Pollay. “Images of Ourselves: for promotional offers and adver tisements to target Indian The Good Life in Twentieth Century Adver tising.” market to cover all the segments. Journal of Consumer Research. 11 March (1985): 187-97. Penetrating in to New Segments Bennett, Peter C. and Rober t, G. Cooper. “The Misuse In the study it is found that HUL and P&G soaps are currently of Marketing: An American Tragedy.” Business available in adult segment only. Since baby segment is one Horizons. 24 November-December (1981): of the important segments and presently there are only few 51-61. manufacturer and marketer catering to this segment, HUL and P&G also can think of entering the segment with superior Blackburn, McKinley L., and David E. Bloom. product formulation and designing baby soap for all income “What’s Happening to the Middle Class.” segments. American Demographics. June: (1985): 19-25. Marketing Strategy for Rural Market Bloom Paul. “Marketing Professional Services.” Englewood The study reveals that soaps and detergent brands of HUL Cliffs . N.J.: Prentice-Hall, 1984. and P&G are more popular in urban markets. Since real India lives in rural areas and it is potential market for all types Brayton, James A . “Motivation, Cognition, Lear ning: Basic of soaps and detergents. In the study it is advised to the Fa c t o r s i n C o n s u m e r B e h a v i o u r. ” J o u r n a l o f company develop a tailor made marketing mix with more Marketing. 22 January (1958): 282-89. emphasis on product mix should be designed by the companies. Rural sales promotional activities should be Burnett, John and Alan Bush. “Profiling the Yuppies.” Journal strengthened especially Proctor and Gamble to take the of Adver tising Research. 26 April-May (1986): 27- advantage of rural market potential. 35. Reference Dr.B.Nagaraja. “Consumer Behaviour in Rural Areas: A Micro level study on Buying Behavior of Rural Bar tos, Rena. “Over 49: The Invisible Consumer Market.” Consumers in Kavali Mandal.” Indian Journal of Har vard Business Review . 58 Januar y-Febr uar y Marketing. 30-36. (1980): 140-48. “Issues and advances in segmentation Research – Yoram Beer, William R . “Househusbands: Men and Housework in wind.” Journal of Marketing Research. Vol.XV, Aug., American Families.” South Hadley, Mass: J.F. Bergin (1978): 317-37. Publishers, 1983. Nir malya, Kumar. “Marketing as Strategy.” New Delhi: Belch George E., Michael A . Belch, and Gayle Ceresino. Thomson Press . 2000. “Parental and Teenage Child Influences in Family Decision Making.” Journal of Business Research .13 Pradeep, Kashyap Sidartha Raut. “The Rural Marketing.” New April: (1985): 163-76. Delhi: Himal Impressions , 2006. Belk, Russell W. “Materialism: Trait Aspects of Living in the Terry Grapentine and Randy Boomgaarden, “Maladies of Material World.” Journal of Consumer Research. 12 Market Segmentation Research.” Marketing (December): (1985):265-80. Research. Spring 2003. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 55 Small is Beautiful? Corporate Social Responsibility Prasenjit Maiti This paper attempts at exploring future roadmaps of research in the Roadmapping happening areas of community development strategies facilitated A by the formation of an enabling environment of social capital and b u n d e r p i n n e d b y b o t h c o r p o r a t e c i t i z e n s h i p a n d s o c i a l e n t r e p r e n e u r i a l e n d e a v o ur s o n t h e s par t of third sector i.e. civil societal actors. How can the body civil emerge from our public t sphere in order to critically negotiate with the state (body politic) and the market (body e c o n o m i c ) i s a p r i n c i p a l c o n c e r n o f t h i s p a p e r. O u r c e n t r a l a r g u m e n t h i n g e s u p o n t h e r assumption that greater cooperation and informed consent can only work towards a larger a consensus of interests, that is again a macrocosm of individual worldviews and organically c motivated profiteering ventures. From the beautiful small to the even more fascinating larger t social entity of the collective social arrangement is an ongoing journey that can be fur ther catalyzed by an optimum mix of the self and the other? T his paper makes an attempt to interrogate the approach the whole as a multicultural imbroglio of politics that underlying connections between urban and rural is without any sense of direction or honesty of purpose. It is community development and Corporate Social to be appreciated that the individual actors play a greater role Responsibility (CSR) underpinned by the dynamics of social in community dynamics that we shall ever be able to capital. We argue that embe- understand. And this itself lends ddedness and connectivities a plethora of analytical pers- 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 within the social psyche can 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 pectives to the politics of CSR 12345678901234567890123456789012123456789012345678901234567 work towards contributing to 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 underpinned by the dynamics 12345678901234567890123456789012123456789012345678901234567 the overarching policy frame 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 of Social Capital. 1 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 work of community develop- 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 ment while this entire process 12345678901234567890123456789012123456789012345678901234567 For Social Capital is a convenient 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 can be extended an impetus by 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 arrangement (an altogether too 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 virtue of CSR-led initiatives. 12345678901234567890123456789012123456789012345678901234567 simplistic heuristic concern) of 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 learnt values and ethical choices 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 The community as a whole can 12345678901234567890123456789012123456789012345678901234567 D r .P r a s e n j i t M a i t i , A s s i s t a n t P r o f e s s o r, P G D B M 12345678901234567890123456789012123456789012345678901234567 that is context-specific and 12345678901234567890123456789012123456789012345678901234567 never be left alone to itself as a 12345678901234567890123456789012123456789012345678901234567 D e p a r t m e n t , I n d i a n I n s t i t u t e o f S o c i a l We l f a r e a n d 12345678901234567890123456789012123456789012345678901234567 rooted in what we address 12345678901234567890123456789012123456789012345678901234567 theoretical category or even a 12345678901234567890123456789012123456789012345678901234567 B u s i n e s s M a n a g e m e n t ( I I S W B M ) , M a n a g e m e n t nowadays as culture root para- 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 construct of post-postmo- H o u s e , C o l l e g e S q u a r e We s t , K o l k a t a - 7 0 0 0 7 3 , 12345678901234567890123456789012123456789012345678901234567 digms. The discourses of trust 12345678901234567890123456789012123456789012345678901234567 E-Mail: [email protected] 12345678901234567890123456789012123456789012345678901234567 dernist ideology that tends to and cooperation tend to lead A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 56 us to an understanding where we start to believe that even is Pretty disturbing questions but there is always the opportunity trust has to be inculcated by a process of critical political to recline on the postmodern couch and spin high theories in socialization. Such an approach may be self-deprecatory in order to collate theory and praxes in a more or less acceptable the long run. 2 format. The issues of power, hegemony, legitimacy and conflict emerge as serious contentions at this point when we The Polemic increasingly tend to address the WE rather than the I and the US / OUR rather than the MINE/ MYSELF. 3 The relationship between Social Capital, Corporate Social Responsibility and Urban Development Policies hinges on a For CSR is all about a deepening sense of commitment towards debate that is informed by both a symbiotic as well as a the whole rather than the part where we are all entirely de- semiotic discourse. It is apparent that CSR and Social Capital schooled in order to be tutored in the pedagogic of the are mutually dependent while Urban / Rural (Community) underprivileged. And Social Capital simply happens to be a Development Debates are constructs of the social well-being convenient tool that is more often than not deployed by CSR ideology that are influenced prominently by civil societal practitioners in order to create a few visible benefits i.e. a dynamics. So the disturbing questions that are obvious at this basket of utilities, so to say.4 juncture are as follows: The real challenge follows subsequently when the questions 1. Is Social Capital only an altruistic arrangement of trust and of what to give to whom and why and where and how emerge. cooperation that should never be bothered about the This is the classical dilemma of the authoritative allocation of everyday politics of life that happens to determine the values that simply illustrates that whatever you do and how hard you try you shall never be able to give universal and uniform way corporate players tend to invest in what we address satisfaction to your clientele as their service provider. So you as social profits? have to walk precariously across the tightrope of priorities that are decided rather upon the basis of situational exigencies 2. Are social profits so far removed from the reality of CSR rather than the perspective of visionary thinking! that these are disengaged (so to day) from pressing economic, cultural, political, environmental and ethical The Counter-Polemic concerns? Corporate Social Responsibility as an analytical tool can be 3. Should a multi-verse of liberal and competitive democracy used in the field of Business Management to facilitate different at all be allowed to encroach upon the domain of practical business practices from both an ethical angle and a utilitarian reason of what essentially constitutes the core of social perspective. Business managers should try to entrench networks consent? of trust, loyalty and cooperation within and without their organizations. This also makes good business sense in terms 4. If CSR is not sustained by the bindings of a community- of rational choice theory. level incipient contract then what other motivational strategies should be deployed to ensure that Social Capital Good business is also about establishing customer-friendly is present and alive and kicking (so to say) in order to images in a manner that highlights values such as reliability, broad-base community development initiatives? trustworthiness, quality, economy and durability. These values evolve over time and are underpinned by a sustained 5. Why should corporate biggies invest financial profits in relationship of confidence. So specific products more often CSR if not at all inspired by Social Capital as a new value do not become identified with brand names either for niche or and a worldview that also suggests that what you put in for broad-based markets. Brand equity and positioning so ultimately you draw out if not in terms of money but at generally depend upon the successful merchandizing of least in terms of enhancement of your public image? products and their images. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 57 The changes induced by development in a liberal democratic development projects should be able to exchange ideas and country like India can be reasonably managed if urbanization is opinions on the basis of mutual trust and cooperation. based on multi-stakeholder dialogues based on trust and networks of cooperation (what we tend to increasingly address The puzzles and polemics of development tend to raise more nowadays as Social Capital). Non-inclusion of all the concerned questions than provide customised answers. We have to stakeholders may lead to discontent and even violence. understand that each problem has its own unique context and that the solution needs to be located within the organic The political scenario of West Bengal after the Union Parliament complexities and institutional realities of the problem itself. A Elections 2009 demonstrates the importance of Social capital Social Capital approach has the potential to resolve in our civil society. In the run up to the General Elections a disagreements and act as a platform to explore strategic major electioneering campaign of the Opposition was focused solutions. on the role of the State Government in forcible land acquisitions by exercising Eminent Domain (acquiring private land and The Discourse property for a public cause by citing the Land Acquisition Act 1894). The problematique of this paper is structured around the polemic of civil societal institutions (networks and The Opposition maintained that private entrepreneurs should embeddedness) and democratic governance (inclusive growth either purchase land directly from the owners (cultivators) or and participatory development) among other critical areas of else build their factories on land owned by the State social scientific research. This line of theoretical research is Government. But the industrialists wanted to purchase plots expected to contribute new knowledge and facilitate of land near Kolkata to utilize the available infrastructural facilities. innovative research to better understand the interactions and The State Government sided with the industrialists by forcibly interplay between actors and their institutions. 5 acquiring fertile agricultural land. The politics of everyday life and human development are The result of the elections was a traumatic defeat for the ruling generally informed by the dynamics of choice and the strategies Left Front, its worst electoral defeat since they first came to of cooperation. This tension can be somewhat resolved by power in West Bengal in 1977. The defeat was preceded and adopting the Corporate Social Responsibility approach, as followed by skirmishes and political violence that snowballed inclusive growth can more often than not be ensured by into a twelve-hour General Strike called by the Opposition on empowered choices and delegated actions. 17 July 2009. This highlights the importance of Corporate Social Responsibility The West Bengal Government has now declared that no land in all our grand as well as small narratives today in a world will be taken forcibly from unwilling owners. India, along with where economic signifiers and their signified meanings are rest of the world, is currently trying to combat the global more or less in a state of constant flux provoked by the recession. The recession has made infrastructure development marketplace of politics and the social as well as cultural rhetoric even more critical both in the rural and urban sectors to generate of glocalization. new employment and to stimulate the economy. Such pressures may create urgency, but these processes, like the It may appear to be rather far-fetched to deploy a highly dynamics of liberal economic reforms, cannot be rushed. specialized social scientific theoretical category like Corporate Social Responsibility in the area of Business Management and These processes can never ever afford to ignore the core Industrial Relations. The latter is a network of relationships that values of participatory development and Social Capital if we enter into professional dynamics with one another in the highly are to avoid the violent repercussions recently seen in India. charged world of business informed by factors such as the Sustainable Development and inclusive growth reflect the profit motive, ethical applications, conflict resolution and a principles of good governance (accountability, participation, sense of accountability vis-à-vis the environment, sustainable predictability and transparency). All the stakeholders of development and inclusive growth. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 58 So innovative ideas supported by creative images are required interest first rather than the interest of their respective to streamline Industrial Relations in the post-globalized scenario organizations. The core challenge is to translate these small that predicates upon both a breakdown of barriers as well as narratives of power into a grand narrative of preference that establishment of new and difficult barriers in the cyber world would ultimately facilitate a transition of business culture of of netizens, their perceived expectations and their ever- given organizations. increasing sense of achievements and complex role performances. So the game that is to be played by the different parties concerned would be to transcend the actors and institutions So we have to understand the problematique of the increasing model to the actors in institutions prototype. This would be a hiatus between business managers and their employees in the game that requires a multiplicity of stakeholders and a plethora context of relative deprivation that may be either incremental of their interests that would finally be integrated in an or else decremental in nature. The critical ploy that has to be overarching design of motivations, aspirations and role strategized in this connection is the network of inter- performance. dependence that depends upon the fluctuating degrees of trust and cooperation and overall organizational health of any given industry. When disjointed players start to commence upon the game upon a somewhat level play field then emerges the ever-critical A perspective analysis of the dynamics of trust in any business issues of entitlements and capabilities. Each and every player organization happens to be a most problematic exercise that has got entitlements to improve upon his / her own material has to be carried out over a period of time and that involves conditions of life, status of empowerment, value systems and multiple stakeholders as well. Why should one trust his / her catalyze the politics of everyday life. These entitlements have peers, superiors and subordinates? Is trust a construct of then to be qualitatively upgraded to the level of capabilities. culture specifics? Can trust be equated with the given socio- So from professionals to stakeholders is a long journey of politico-economic realities of any spatio-temporal context? accomplishments that would institutionalize a culture of trust Can trust be learnt or emulated? Can trust be analyzed in terms and cooperation in organizations for the mutual benefit of all of cost-benefit calculations? the concerned stakeholders. These are rather disquieting questions with no unilinear Trust and cooperation happen to be dynamic aspects of human answers. Business leaders have to realize that the pedagogic behaviour that are both acquired as well as achieved during of trust and resilience of professional relationships can only the course of everyday interactive exercises. One has to be tested against either hypothetical or real life situations where appreciate that trust as an interface is perhaps more potentially the actual motivations, aspirations, perceptions, preferences real and tangible rather than trust as a construct, as the former and culture root paradigms of individuals or groups are is an arrangement of convenience, connivance and knowledge explicitly exposed in the given context of their informed self- while the former is a living entity that comes across our daily interest. social interactions as a concept that works in real time. In essence, therefore, reciprocation sustains trust while trust Trust happens to be a matter of choices that is not altogether facilitates cooperation. different from the various other choices we make during the course of an ordinary day. But choices are also inspired and conditioned by values that are established standards of social Why should one cooperate with another? Is it a learnt reflex or interactions and constantly re-learnt during the life of is it based on enlightened self-knowledge and self-interest? organizations and the professionals who sustain such Would cooperation lead to intense creativity, new images, organizations. 6 different ideas and better emotional and stress management? These questions and their answers have to be delved into and But trust is also a societal resource that is limited by its very dwelled upon before we even try to garner an entire array of nature, as individuals more often than not put their own self- new knowledge on this subject. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 59 Relationships can be built upon cooperation, competition The issue of Industrial Relations is all about the management of and conflict. Each such mode will explore new models of choices in the workplace. Why should workers obey the interface and would finally lead to an inchoate world of new management? What are the concerns of the management that possibilities where men and women in the industry would are reflected in its style of leadership? Is loyalty related to steadily learn how best to unlearn past lessons and deschool motivation? Or is loyalty a function of the chain of command? themselves from the cultural baggage handed down the What are the effective outputs of hierarchy? generations. The management and the workers have to mutually entrench For one lesson is almost clear at this juncture of empirical findings an ethos of cooperation that would both create and sustain i.e. actors will only cooperate if there are elements of the values of Ownership/Trusteeship in their given organizations. confidence and potentialities of profit to be found in such One has to belong to and long for one’s organization simply bilateral or even multi-modal discourses. The architecture of because organizations are the institutions of collective social knowledge that fosters industrial relations and the behaviour where people associate and interact to pursue microphysics of power that acts as a conducive ensemble in certain set goals. The very fact that these targets have to be the background of labour welfare are, after all, situation-driven achieved and new targets innovated point to the fact that the and culture-specific realities that need to be continuously re- organizational health of any given industry is sound. The point examined against the context of changing politics and of saturation has to be ably and creatively transformed into an economics of the body social. arena of new possibilities that lead to new challenges and innovative gestures. But what about the body corporate as a whole? This is an entity that can neither be enticed nor be allured into rash But achievement of targets is critically dependent on team decisions and myopic strategies. If cost-cutting is the order of performance, and so the team players have to share different the day and free rider expenditures are on their way out, then degrees of responsibilities and have to be burdened with it is also the duty of business managers to adequately sensitize different measures of failures and successes. The most their industrial work forces and integrate them in a culture of important consideration at this point is to determine who can consensus without which the entire complicated domain of shoulder what amount of burden. So the question of trust management would be severely disempowered. authoritative allocation of values has also to be pondered upon actively by the management concerned. From the management of human values to the management of corporate trust is a long, arduous and unenviable journey that requires out of the box thinking matched with the capacity to The issue of Ownership / Trusteeship is also almost organically relate to the empathy of individuals. So rapport-building would related to the issue of institutions. Each business organization, appear to be a crucial requirement in this context of trust in sociological terms, is an institution replete with a history of management when business leaders should be able to evolution, work culture, Trade Union ethics and typical overcome the tedium of Human Resource Development overkill management practices. So the study of business organizations in order to efficaciously enter into revolutionary dialogues with as dynamic institutions of power, authority, repression, both blue as well as white collar workers to make them chant obedience, reward and punishment may lead to an ulterior the mantra of their respective organizations underpinned by understanding of Industrial Relations.8 their rational choices. 7 Actors and their interventions become criticalities that have to It is somewhat difficult to estimate the rationality of a choice be objectively factored into the discourse of polemics that until the outcome of that choice is perceived either in center on issues / concerns of Industrial Relations. The credo material or else in psychological terms. Exactly how rational of loyalty is also another ponderable that may be studied or a choice is would have to be decided subsequently when else addressed in order to appreciate the different dynamics the question how utilitarian that choice was would emerge of Corporate Social Responsibility, Rational Choice and Value in the future. Management. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 60 Environmental Ethics Information, Education and Communication strategies involve different concerns of environmentalism related to awareness- The present paper lays emphasis on several theoretical and generation, advocacy/activism and sensitization that are attuned empirical aspects of environmental politics, CSR and Social to culture and gender specifics. In order to scientifically capital so that the critical dependencies between human and implement project-related tasks it is rather imperative to develop physical environmental settings are suitably focused and a time-frame of IEC activities to be carried out during discoursed in the process. The social issues and concerns of environmental project cycles. Any given Environmental Action environment have become more prominent and relevant Plan must elaborate and schedule the tasks to be undertaken especially since the Second World War, when the impact of in accordance with the aims and objectives of IEC as mandated weapons of mass destruction and nuclear holocaust made us by the scope of different environmental projects. painfully aware about the politics and economics and sociology of environment. Benefit Monitoring and Evaluation (BME) of environmental projects in terms of new physical resources created is an The alternative to sustainable environmental development exercise related to measurement of technical interventions and at the beginning of the new millennium appears to be designs at the levels of planning and implementation. It is mutually assured destruction. So new disciplines such impor tant to understand that Impact Assessment of as human and political ecology have developed in order environmental projects should also include the ethos and best to interrogate the politics of development that is more practices of participatory development. often than not interplay between the choices of policymakers and voices of stakeholders caught Par ticipatory environmentalism can be sustained by a basket desperately between the currents of so-called human of methodological tools such as Focus Group Discussions, progress. Gender Interviews, Community Meetings, Logical Framework Analyses and Risks Assessment. Resource Mapping, for Sustainable environmentalism is a critical concern of the new instance, is an imperative requirement for Joint Forest millennium at the policy and praxes levels, as this issue Management and Natural Resource Management initiatives. predicates new and exciting disciplines such as political Needs assessment of physical resources as perceived by ecology, environmental ethics, human ecology, eco-feminism, the community must be based on such par ticipator y environmental law, moral ecosophy and development ethics. methods. This is especially true in the case of rainwater Sustainable environmental development has of late emerged harvesting and arsenic-free drinking water projects. Micro- as a serious problematique that requires to be negotiated in planning at the grassroots should inform the choices and terms of workable strategies. Environmental Management Plans voices of the concerned stakeholders. It remains a fact that generally constitute the formulation of quantifiable benchmarks sustainable environmental management is nearly always supported by Monitoring and Evaluation exercises to assess intrinsic to local-level realities. So it is critical to be attuned the benefits accruing from implementation of EMPs. Monitoring to the local for environmental movements to succeed at the is the scientific collation and compilation of primary as well as global level. secondary data to gain insights into the process, project and progress indicators while Evaluation is the systematic analysis Environmental management indicators can be both of environmental projects, including aspects like design, quantitative and qualitative in nature in order to provide implementation and results. primary inputs to monitor different projects evaluate progress of project implementation and guide the Evaluation leads to increasingly informed decisions, stakeholders to sustain the benefits of the projects. Such allowing those involved in this process to learn from indicators may also evaluate the impacts of the projects experience and to be accountable to the dynamics of the on the quality of life of the stakeholders before and after project. Monitoring and Evaluation should be utilized to implementation and also examine the increased level of establish accountability and understand the dynamics of community par ticipation and awareness-generation vis-à- environmental projects. vis project interventions. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 61 Under different Initial Environmental Examination scenarios the ownership among community members vis-à-vis collective State of Environment may be studied in the context of varying assets and Common Property Resources. Pressure State Response Models. Environmental Action Plans must also lay down strategies for both qualitative and Environmental participatory strategies operate at two levels: quantitative methods in order to freeze the ground realities [1] the communitarian level where the community is brought and design physical interventions under different environmental back into environmental focus in order to build and sustain a projects. Such interventions should generally be participatory proprietary sense among primary stakeholders and [2] the neo- i.e. underpinned by the Stakeholders’ Consultative Process institutional level where “actors and institutions” are transformed (SCP). SCP is central to the methodology of environmental into “actors in institutions” i.e. end-users of environmental projects. SCP moves away from the conventional top-down resources are mobilized suitably to identify their community approaches that involve measurement of project performance agenda with environmental interests. against pre-set indicators by using standardized procedures and tools. The new strategy of participatory development lays These are strategic measures utilitarian tools to motivate the its primary emphasis on Public Information and Consultation community to become proactive and safeguard collective endeavours. concerns at the level of the environment. Environmental awareness programmes serve to build empathy at the Environmental projects underpinned by the rationale of community-level and facilitate dialogic rather than pedagogic par ticipator y development should define statements of terms of discourse at the project implementation, monitoring measurable objectives in terms of physical interventions, design and evaluation levels. a structured set of indicators covering outputs and likely environmental impacts and include provisions for data analyses Community Mobilization and Participation (CMP) activities are and periodic reporting to the project stakeholders. not an end but a means to secure rapport-building that may ensure acceptance of environmental initiatives. Environmental Process indicators are benchmarks that are concerned with interventions must be scientifically implemented and informed the dynamics of environmental change i.e. how change is to by a definitive plan of action. This is despite the fact that be effected at the grassroots, how the process of change is environmental monitoring and management generally emerge to be managed with the help of external interventions and from flux and can seldom be planned in a structured manner. internal facilitation, how best change can be reconciled with conventions? Environmental problems may be identified and cause-effect relationships determined in this process. This may also help to Environmental projects cannot always follow predetermined identify benchmarks of solution impacts (facilities proposed approaches. Best practices of environmentalism more often to be provided under environmental projects). The problems than not emerge from chaos but subsequently lead to cohesion identified should be converted into need-based statements. by resolving the tension between priorities and utilities. BME This exercise requires discussion and prioritization of indicators may be designed keeping in view the fact that environmental needs. The achievements of environmental environmental projects aim to facilitate need-based awareness- projects generally depend on how project beneficiaries react generation programmes. to the resources created or sustained by the project initiatives. Participatory environmentalism can be defined as an interactive For participatory approaches to Monitoring and Evaluation process during the passage of which the concerned (M&E) to be effective, these need to be integrated with stakeholders gain access to the decision-making process either environmental projects and adopted on a continuous basis. directly or via institutionalized representation. This helps to These results can be utilized to re-strategize the key issues identify the needs and perceptions of primary stakeholders, and generate new questions during subsequent M&E. sustains civic amenities after withdrawal of implementing Environmental projects may simultaneously develop new agencies, monitors progress of physical works, streamlines activities and encounter new problems that which may affect community-level institutional mechanisms and develops the stakeholders’ perceptions of project-related activities. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 62 Communities may also experience changes from other sources for the sake of ecological equilibrium and sustainable that may have an impact on the progress of environmental community development suppor ted by CSR and Social projects. Capital. 9 Environmental Impact Assessment (EIA) serves as a benchmark Environment has both physical and human aspects, and the against which project progress in terms of environmental latter more often than not influence the former in terms of interventions may be quantified. Such periodic exercises multiple strategies and image-building exercise. Environment - provide insights on the part of primary as well as secondary like any other limited resource in human society - has steadily stakeholders in the sense that strategies may be revised, goals emerged since the Industrial Revolution as an issue that assumes redefined and praxes reformulated in the light of field-level ownership of all the concerned stakeholders and - as an lessons learnt during implementation of project objectives. unfortunate result - is really nobody’s ethical responsibility. Such a critical and heuristic manner of learning from past mistakes and making necessary amendments during the project So the North can afford to pollute mindlessly and then hold cycle to aim at moving targets more often than not inform EIA the South responsible for this sorry state of results while it is a studies that focus on the core issues of sustained fact that the patterns of consumption, industrialization and environmentalism. urbanization (development?) in the rich countries add more viciously to environmental degradation, global warming and Environmental development is more often than not value- climate change than elsewhere in the world. Not for nothing specific i.e. progress indicates changes at the level of value have we heard the doomsday conspiracy that the Third World systems, broad-based worldviews, evolution of new managing War would soon be fought on the issue of drinking water. agencies at the level of the mode of production and dynamic interfaces cohered among the stakeholders who happen to Moral Ecosophy has to be conscientiously practised if we are manage environmental affairs and the agenda of institutionalized to save Planet Earth from the apparently irreconcilable axes of joint participation mechanisms. power that have fractured the Global Economic Order and exposed the pretensions of the so-called process of Environmental management so emerges as a continuous Globalization that has only further deepened divides across exercise that should be able to reconcile contending role our International Moral Order. But this is perhaps a noble definitions between stakeholders and beneficiaries as well as aspiration without any conformation from our everyday politics resolve the tension of priorities between the notions of of life and endangered realities. sustainability and environmental best practices. This paper has tried to conceptualize the lessons learnt and identify the good Corporate Citizenship practices of sustainable environmentalism and CSR so that future roadmaps for action research, advocacy and activism can be The problematique of corporate citizenship is rather suitably cohered in the process. complicated, as it entails different types of choices in different space, time, culture, knowledge and power discourses. The A range of notions underpinned by contemporary models of choices before corporates may not always be uniform, and analyses has been examined from plural socio-economic as may be influenced by considerations like a global economic well as politico-cultural backgrounds that adequately reflect meltdown, local political tension, national emergency, social the state of environment and assess the quality of man-made problems, regional discrepancies in development, bad and natural resources in the context of sustainable systems economy of scale, retrenchment, cost-cutting etc. and multicultural societies. An understanding that repeatedly comes across during the perusal of the different schools of But the critical central issue still remains the anatomy of choice: thought is the notion that social and physical environments why do corporates ordinarily behave in one manner while impact upon one another and share an entire array of conforming to the basic tenets of corporate citizenship and symbioses that have to be continuously investigated in order why do they tend to behave otherwise under duress and to explore indigenous solutions and establish convergence especially during adverse market situations? This in itself A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 63 constitutes an interesting universe of research where various by motivation, inspiration, trust and cooperation. The more factors such as values, beliefs, attitudes, inclinations, broad-based this industrial dialogue happens to be, the better orientations, opinions etc come into play in the wider area of would be the chances to experiment in a more creative manner choice influenced by an inchoate regime of deterministic / with the changes that lead to overall better management of indeterministic chaos. The question of moral values and corporate citizenship. business values may occasionally come across as a dichotomy, especially when the role of corporate values such as Organizational change can be perceived as an inherent competition, optimization (profiteering?) and loyalty is corporate resource that can be utilized by different concerned. The recent economic recession worldwide has stakeholders to add value to their concerned industries. It is prompted Big Business worldwide to retrench, cut costs, not always quite easy to address change in organizations, as economize on operations, production, marketing and other multiple players find it more often than not difficult to cope strategic areas of their daily activities. But there also have been with transformations and transitions. Organizational instances in India where probationers given the pink slip were development, evolution and health depend upon targeting again brought back home, so to say. moving goals that are continuously in a state of flux. But how can we use change as an organizational resource? Changes This is perhaps a truly Indian phenomenon that has been also can take place in terms of qualities of output, levels of somewhat motivated by external political pressures. But this production, modernizing technologies, innovative event is not to be identified with the somewhat out-of-vogue methodologies, deschooled pedagogics and radically different concept of Asian Values. The issue of corporate citizenship as marketing strategies. Such changes vis-à-vis organizations can sustained (hypothetically) by the arrangement of trust and even be studied in the context of the Guest-Host discourse cooperation in business is also perhaps a function of traditional where changes are not perceived as ghosts of spatio-temporal (Indian) family values that happen to rely much more on loyalty realities but rather as guests in the context of host organizations. and feudal ascriptions rather than the rational-legal structure of legitimacy and authority. So change can also be sustained as a resource in the context of organizational change and corporate citizenship. Whenever Culture is what we use while civilization is what we are. If we changes occur, there are sweeping as well as drastic effects are to understand conflicts, stress and negotiations in business on the levels of motivation, business strategies, styles of in a somewhat new light then we also have to appreciate the leadership performance, marketing techniques, economies of role of corporate citizenship in the politics of everyday life of scale, interpersonal relationships, priority areas and preferential organizations where individuals engage themselves in pursuing values. It is imperative that this phenomenon of change should different forms of economic activities. Culture as capital can be managed by professionals to yield better results and add contribute effectively to the body corporate by defining the enhanced value to the concerned organizations. various role performances of the multiple stakeholders concerned in industry. Both the management and the workers The management of change is a critical discourse. It takes place can experiment successfully with different types of cultural at the levels of perception, motivation, attitude and leadership. modes relevant to their industry. 10 How best to motivate both the management and the workers to coordinate business activities under a different regime of Senior business leaders in India occasionally make it a point to change is often a fascinating study that can lead to exciting organize brainstorming sessions where even junior managers, new insights related to the organic realities of organizations.11 worker representatives and Trade Union leaders can voice their own ideas about better productivity, new R&D, innovative How people try to cope with stress and strain, conquer their marketing, revolutionary designs and improved economy of anxieties and worries, battle with their learnt values against scale. new values and finally emerge as either winners or else losers is a crucial exercise that impinges upon the working of So it appears that both choices and voices have to be processes, products and arrangement of realities both within entrenched in the domain of better business sense boosted and outside organizations. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 64 Corporate citizenship is basically a function of strategized and dictated by the polyphony of voices. These voices are cultures pitted against fractured realities. The ways in which supported by choices of change, regime of discourse and the owners, managers and workers perceive reality / realities strategies of organizational development. The plethora of voices may be radically different from one another. Their perceptions is an indicator of change in terms of both process and progress, are conditioned by their Culture Root Paradigms that constitute although these are rather value-loaded expressions. So the the overarching rhetoric of change of their organizations. more vibrant dialogues become the more adequate is their Change can both create and destroy. scope to include. Because if modern business today happens to stress increasingly upon Sustainable Development and So corporate citizenship as a dynamic of Business Inclusive Growth, then it also becomes a necessary commitment Organizations can also serve as a metaphor of change against to emphasize more on the broad-based nature of quality and the overall backdrop of ethical applications in business. How multiple dialogues that encompass the small narratives of power objectively to wield any given technology, how to cohere and and authority and corporate citizenship. conjoin angularities in attitudes, how to add to the existing stock of Social Capital by sustaining working relationships in So it would appear that good or bad business sense impinges business etc can arguably constitute the first steps towards more upon the multiplicity of dialogues rather than decisions building what social scientists and field practitioners engaged taken in isolation. So the analyses with regard to processes in the Development Sector tend to address as Multi-Stakeholder and progress necessarily indicate whether business decisions Dialogues. and / or solutions would be sustainable in the long or short run. An examination of perspective is important to both assess Such a dialogic mode of interaction involving multiple actors and understand the criticality of business sense in the context (and their roles) as well as different stakeholders (with their of improved Industrial Relations. So how does one ensure own typical interest/s in the organization concerned) is not better relations in business while at the same moment trying to always easy to institutionalize as a new credo of organizational make higher profits? reality. Tripartite talks between the Government, Management and Labour may be cited here as a rudimentary example of This decision can only be made after a Knowledge Attitude such multi-level, multi-faceted and multi-functional dialogues. Perception study is undertaken to evaluate the comparative But Labour Laws and social welfare legislation apart, these benefits / estimates between better business relations and dialogues are essential to understand in consensus the aims, higher profits. Ethical applications in business activities should aspirations and both long- and short-term business strategies also be actively considered in this context of corporate of organizations. citizenship. One of the basic objectives of multi-sectoral stakeholder The combination of business sense with ethical sense is a dialogues is to move away from the merely welfarist, altruistic utilitarian, altruistic as well profiteering strategy that is difficult and pluralistic orientations of organizations to a given mode of to follow conscientiously in the real world. Individuals are not corporate citizenship that has to be learnt, lived with and always driven by ethical aspirations. It is a given fact of life that assiduously practised in order to transcend everyday realities we generally follow the predatory instincts of our personal to an aura of a changed way of business life. Post-postmodern profit motives. The challenge is to inculcate the best possible societies have to desperately try and learn the post-global fit between profits and ethics, immediate gains and strategic manner of existence where almost nothing is permanent, so to alliances, present temptations and future goodwill. A modicum say. Markets change and clientele change while entire of balance has to be struck in this context so that the different economies go through phases of radicalization that tend to types of extraneous and internal variables that tend to influence impar t new meanings to business strategies and ethical such a process of decision / policy-making can be balanced applications. in an almost rational manner. So the entire gamut of signifiers and signifieds also change Our ethical selves may not always be our instinctive beings. It and cater to further transitions in business organizations stylized is a metaphysical question of existence versus sustenance, A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 65 learnt values versus inherent proclivities and cost-benefit value and cooperation predicated by the realities of corporate analyses between the self-satisfying self and the social networking and social embeddedness are inherently satisfying other. When such conflicts between the otherness highlighted in the context of better performance, enhanced of the other and the openness of the self tend to be reconciled interactions and complex commitments of the industry to the in the context of specific industry and general society, then market, clientele, quality, pricing and corporate citizenship. the other uncomfor table questions regarding globalized dichotomies, the Digital Divide and the inchoateness of the Keywords : E t h i c a l B u s i n e s s , R e s p o n s i b l e B u s i n e s s self versus the nascent sense of otherness emerge. Applications, Par ticipatory Development, Inclusive Growth, Sustainability, Civil Society, Social Capital, Choices. Conclusion Footnotes: So finally we are led to the direction of the sociability of business i.e. how social is business and how widespread and traumatic 1. The author wishes to thank Bert-Ola Bergstrand and Per- / therapeutic are the remedial effects of value applications to Eric Ullberg-Ornell of the Dynamic Growth Capital project any given industry. Are workers now being consulted, are their for their initial ideas about this paper that was originally priorities and preferences being listened to, are they more conceived during panel discussions and special lectures confident in the management, bolstered by the thought that at the 2009 Sweden Conference on Urban Policies and retrenchment and lay-off would not be enforced until absolutely Social Capital in Lidköping. The usual disclaimer applies. imperative? Power plays become operational at this juncture of corporate 2. See, Gilber t Jr., D.R. “Corporate strategy and ethics.” citizenship when not only the social and cultural aspects of Journal of Business Ethics . Vol.5, No.2, (1986): 137-150, business but also the political and economic facets of the in this connection. See also Gray, R., Bebbington, J. and industry have to be accounted for to study the art of resolution Collison, D. “NGOs, Civil Society and Accountability: of conflicts at the workplace. Conflicts of interest that arise Making the people accountable to capital.” Accounting, from clash of values, attitudes, perceptions, orientations and Auditing and Accountability Jour nal . Vol.19, No.3, values are occasionally constructs of different cultures. The (2006): 319-348. manner in which actors engage in conflicts and lock horns with each other over issues of preferences and priorities often 3. Cf. Harmon, J. “Introducing John Rawls: A review of The emerge from skewed realities where the concerned parties Cambridge Companion to Rawls. ” Philosophy and Social are located at different levels and on different levels of cultural Criticism , Vol.30, No.5-6, (2004): 643-663; and Hill R.P. ensemble and trappings of power. “Do the Poor deserve less than surfers? An essay on the special issue on Vulnerable Consumers.” Jour nal of Because conflicts primarily begin at the level of knowledge Macromarketing . Vol.25, No.2, (2005): 215-218. where the mind is constantly busy weighing different options. The manner in which individuals approach conflicts is also 4. See Manor, James (1996). “Recent Trends in the Study rather culture specific. The issue of corporate citizenship can of State-Society Relations” Mette Halskov Hansen and be better understood if the fragmented concerns of conflict A r i l d E n g e l s e n R u u d ( e d s ) , Weak? Strong? Civil? are better appreciated. Conflicts at the higher echelons of Embedded? New Perspectives on State-Society power are more about abstract / intangible realities such as Relations in the Non-Wester n World . Oslo: Centre for power, authority, prestige, esteem, influence and access to Development and the Environment, University of Oslo; the repository of high-end corporate values. 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Handbook of Theory and Research Justice and the Duty of Assistance.” Business Ethics for the Sociology of Education, New York, Westport, CT Quar terly . Vol.14, No.4, 643-661; and Jackson, K. T. and London: Greenwood Press, 241–58, in this regard. (1993), “Global distributive justice and the corporate duty to aid.” Journal of Business Ethics . Vol.12, No.7, 547-551, in this connection. 7. Cf. Burt, R.S. (2000). “The Network Structure of Social Capital.” Research in Organisational Behaviour, Vol 22, 1- 11. Cf. Lehman, G. (2001), “Reclaiming the public sphere: 83; Chloupkova, J., G.L.H. Svendsen and G.T. Svendsen Problems and prospects for corporate social and (2003), ‘Building and destroying social capital: The case environmental accounting.” Critical Perspectives on of cooperative movements in Denmark and Poland’, Accounting. Vol.12, No.6, 713-733; McClintock, B. (1999), Agriculture and Human Values, 20 (3), 241-252; and “The multinational corporation and social justice: Coleman, J.S. (1984) “Introducing social structure into Experiments in supranational governance.” Review of economic analysis.” The American Economic Review. 74 Social Economy . Vol.57, No.4, 507-522; and Moriarty, J. (2), 84-88. (2005), “On the Relevance of Political Philosophy to Business Ethics.” Business Ethics Quarterly .Vol.15, No.3, 8. See Coleman, J.S. (1988a), “Social Capital in the Creation 455-473. of Human Capital.” American Journal of Sociology . 94, 95–121; Coleman, J.S. (1988b), “The Creation and 12. See Preston, P.W. (1996), Development Theor y: An Destruction of Social Capital: Implications for the Law.” Introduction. Blackwell Publishing, Cambridge, MA; Spivak, Journal of Law. Ethics and Public Policy, 3, 375–404; and G.C. (1988), “Can the subaltern speak?” Nelson, C. and Coleman, J.S. (1990), Foundations of Social Theory, Grossberg, L. (Eds.), Marxism and the Interpretation of Cambridge, MA: Harvard University Press, in this context. Culture . University of Illinois Press, Urbana, IL, 271-313; and Huntington, Samuel P. (1968). Political Order in 9. Cf. Toenjes, R. H. (2002), “Why be moral in business? A Changing Societies . New Haven / London: Yale University Rawlsian approach to moral motivation.” Business Ethics Press, in this regard. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 67 Car Industry: SWOT Analysis Dharmaraj C., Sivasubramanian M. and Clement Sudhahar J. A consumer's decision depends on the interplay of many A Consumer Stimuli forces or stimuli. Product offering through some promotional b methods is the initial stimuli. The marketing and environmental s stimuli emerge from cultural, social, personal and t psychological factors. The customers judge the deals in several ways. The reputation and r t e c h n i c a l e x p e r t i s e o f t h e m a n u f a c t u r e r, t h e q u a l i t y o f s e r v i c e a n d t e c h n i c a l a d v a n c e m e n t o f a the service provider form the criteria to evaluate the manufacturers and the dealers. This study, in the form of SWOT analyses performed through Friedman's test, covers the consumers' c general opinion towards the passenger cars and also provides useful information to the general t public, car owners, dealers and car manufacturing companies in many ways. I n India, after independence, industrialization has paved lization, the earning capacity of the middle-class people the way for people to possess luxury items such as has also increased. Now-a-days, motor car is not only television, refrigerators, home appliances, cars, etc. bought for social status, but as a necessary one. Taking into Motor–car is one the consideration of the commonly of the above, many 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 used conveyances 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 automobile com- 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 by the upper and 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 panies turned to 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 middle-class 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 Asian countries, 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 people. Before two 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 par ticularly India 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 decades, only a 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 and China. The 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 few industrialists 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 automobile indu- 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 and rich people 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 stry in India is the 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 owned cars. There 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 eleventh largest in 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 was a time when 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 the world with an 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 M r. D h a r m a r a j C . , A s s i s t a n t P r o f e s s o r, S c h o o l o f M a n a g e m e n t , 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 one had to wait for 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 K a r u n y a U n i v e r s i t y , C o i m b a t o r e - 6 4 1 1 1 4 , Ta m i l n a d u , E - M a i l : 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 annual production 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 weeks, months or 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 D h a r m a r a j b u s i n e s s @ gm a i l . co m of approximately 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 even years to buy 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 D r. S i v a s u b r a m a n i a n M . , R e a d e r i n C o m m e r c e , G o v e r n m e n t 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 two million units. 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 a car in India. The 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 A r t s C o l l e g e , C o i m b a t o r e - 6 4 1 0 1 8 , E . M 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 a i l : D r m s i v a s u b r a India is expected to 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 m a n i a n @ gm a i l . co m option of Indian 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 over take China as 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 drivers was limited 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 D r. C l e m e n t S u d h a h a r J . , A s s o c i a t e P r o f e s s o r, S c h o o l o f 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 the world’s fastest 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 M a n a g e m e n t , K a r u n y a U n i v e r s i t y , C o i m b a t o r e - 6 4 1 1 1 4 , Ta m i l n a d u , to a few models. 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 growing car market 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 E - M a i l : C l e m n s @ re d i f f m a i l . co m 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 But, after libera- 12345678901234567890123456789012123456789012345678901234567890121234567890123456789 in terms of the A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 68 number of units sold, and the automotive industry is one of through Questionnaire from 712 respondents, using simple the fastest growing manufacturing sectors in India. Because random technique. of its large market (India has a population of 1.1 billion; the second largest in the world), a low base of car ownership Analytical Tool Used (12 per 1,000 people) and a surging economy, India has become a huge attraction for car manufacturers around the Friedman’s non-parametric test is used for SWOT analyses world. Until the early 1980s, in India owning a car was to find the more influencing factors towards the car considered to be a luxury possession. During those days manufacturers and service provided by the dealers to there were only four producers of passenger cars, namely, determine the perceptual ranking. The Friedman test is a Hindustan Motors (HM), Premier Automobiles Ltd. (PAL), nonparametric alternative to the repeated measures analysis and Standard Motors Private Ltd (SMPL), and Mahindra and of variance. It is equivalent of a one-sample repeated Mahindra (M and M) used to make utility vehicles (jeeps). measures design or a two-way analysis of variance with one Initially these producers had obtained licensed technologies observation per cell. Friedman tests the null hypothesis that from the UK, Italy, and USA then each had a very small output k related variables come from the same population. For each level. During that era car manufacturing was licensed, case, the k variables are ranked from 1 to k. The test statistic expansion was restricted; there were quantitative restrictions is based on these ranks. The Friedman test ranks the scores in each row of the data file independently of every other (QR) on impor ts. row. Moreover the test statistic for the Friedman’s test is a Since the liberalization era, much water had flown through Chi-square with a-1 degrees of freedom, where a is the and currently, though several major foreign automakers like number of repeated measures. When the p-value for this Ford, GM and Honda have their manufacturing bases in India; test is small (usually <0.05) we have evidence to reject the null hypothesis. Indian automobile market is dominated by domestic companies. Maruti Suzuki is the largest passenger vehicle This study covers the impor tant pre-purchase and post- company and Tata Motors is the largest commercial vehicle purchase behaviour of the respondents relating to the car company while Hero Honda is the largest motorcycle buying decisions. SWOT Analysis is a strategic planning company in India. Other major Indian automobile method used to evaluate the Strengths, Weaknesses, manufacturers include Mahindra and Mahindra, Ashok Opportunities, and Threats involved in a project or in a Leyland and Bajaj Auto . This study makes a maiden attempt business venture. It involves specifying the objective of the toward evaluation of the maker of the cars and the service business venture or project and identifying the internal and provided by dealers in the customers’ perspective in order external factors that are favourable and unfavourable to to determine the factors that contribute to their perception. achieving that objective. Objectives of the Study Strategic Uses of SWOT 1. To s t u d y t h e S W O T f a c t o r s f o r c a r m a n u f a c t u r e r ; SWOT analysis may be incorporated into the strategic planning model, that is to find and evaluate the attributes of 2. To study the SWOT factors for ser vice provided by the the person or company that are helpful / harmful / external dealer; conditions that are helpful / external conditions which could do damage to the business’s performance to achieving the 3. To d e t e r m i n e t h e c o n t r i b u t i n g f a c t o r s t o w a r d objective. perceptual ranking. The SWOT analysis is often used in academia to highlight Method and identify strengths, weaknesses, oppor tunities and threats. It is par ticularly helpful in identifying areas for The study was conducted from April, 2005 to April, 2008 in development. SWOTs are used as inputs to the creative Coimbatore city of the State of Tamil Nadu, India. This study generation of possible strategies, by asking and answering is based on primary data. The primary data were collected each of the following four questions, many times: A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 69 SWOT ANALYSIS strengths with respect to one objective may be weaknesses for another objective. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. • SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually impor tant in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak oppor tunities may appear to balance strong threats. Brief Retrospect of Indian Passenger Car Industry Automobiles were introduced in India in the late 1890s the manufacturing industry took off only after independence in 1947. The protectionist economic policies of the government in the 1950s gave rise to the Hindustan Motors Ambassador, based on a 1950s Morris Oxford and are still ubiquitous in the roads and highways of India. Hindustan • How can we Use and capitalize on each Strength? Motors and a few smaller manufacturers such as Premier • H o w c a n w e I m p r o v e e a c h We a k n e s s ? Automobiles, Tata Motors, Bajaj Auto and Standard Motors held an oligopoly until India’s initial economic opening in • How can we Exploit and Benefit from each the 1980s. The maverick Indian politician Sanjay Gandhi Oppor tunity? championed the need for a “people’s car ” the project was realized after his death with the launch of a state-owned • How can we Mitigate each Threat? firm Maruti Udyog which quickly gained over 50 percent market share. The Maruti-800 became popular because of Findings from Menon et al. (1999) and Hill and Westbrook its low price, high fuel efficiency, reliability and modern (1997) have shown that SWOT may boost performance. In features relative to its competition at the time. Tata Motors line with SWOT, J. Scott Ar mstrong (1982) describes a 5- e x p o r t e d b u s e s a n d t r u c k s t o n i c h e m a r ke t s i n t h e step approach that leads to better corporate performance. developing world. SWOT analysis groups key pieces of information into two main categories: The liberalization of 1991 opened the flood gates of competition and growth which have continued up to today. • Internal factors–The strengths and weaknesses internal The high growth in the Indian economy has resulted in all to the organization. major international car manufacturers entering the Indian • Exter nal factors–The oppor tunities and threats market. General Motors, Ford, Toyota, Honda, Hyundai and presented by the external environment to the others set up manufacturing plants. Rolls Royce, Bentley and organization. Maybach are examples of the few high end automobile manufacturers which entered India in the recent years. The • The internal factors may be viewed as strengths or Tata Nano is at the lower end of the price range costing US$ weaknesses depending upon their impact on the 2,500 approximately and Bugatti Veyron at the other with a organization’s objectives. What may represent price tag of over US$2 million. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 70 Automobile companies star ted investing in service network 3. India is the fastest growing car market in the world, to suppor t maintenance of on-road vehicles. Star ting in growth rate of 20 percent. 2000, some landmark policy changes such as removal of quantitative restrictions and 100 percent FDI through 4. 2/3rd of auto component production is consumed automatic route were introduced and expor ts were given a directly by OEMs. thrust. The market experienced the thrill of intense competition as a number of new cars, models were 5. Growth of domestic production, sales and expor ts of launched. As such consumers in India found a wide range automobiles during 2001-02 to 2005-06 are shown of car models to choose from. In other words, the below. passenger car market in India changed into a buyer ’s market. The car market is expected to see the remarkable growth in car production, car sales and car expor t by the Current Scenario for thcoming years and the passenger car industr y now has a new character. However, if we compare India’s 1. India is 11th largest passenger car market in the world. per capita car ownership with some of the developed 2. India is the second-biggest market for small cars after countries (Exhibit–1) we are behind the advanced Japan. It accounts for 60 percent of the domestic countries. market. Table 1: Automobile Production Trends Category 2001-02 2002-03 2003-04 2004-05 2005-06 Passenger Cars 5,00,301 5,57,410 7,82,562 9,60,487 10,45,881 Utility Vehicles 1,05,667 1,14,479 1,46,325 1,82,018 1,96,371 MPVs 63,751 51,441 60,673 67,371 66,661 Grand Total 6,69,719 7,23,330 9,89,560 12,09,876 13,08,913 Source: SIAM T a b l e 2 : A u t o m o b i l e S a l e s TTrr e n d s Category 2001-02 2002-03 2003-04 2004-05 2005-06 Passenger Cars 5,09,088 5,41,491 6,96,153 8,20,179 8,82,094 Utility Vehicles 1,04,253 1,13,620 1,46,388 1,76,360 1,94,577 MPVs 61,775 52,087 59,555 65,033 66,366 Grand Total 6,75,116 7,07,198 9,02,096 10,61,572 11,43,037 Source: SIAM A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 71 Table 3: Automobile Export Trend Category 2001-02 2002-03 2003-04 2004-05 2005-06 Passenger Cars 49,273 70,263 1,25,320 1,60,670 1,70,193 Utility Vehicles 3,077 1,177 3,049 4,505 4,486 MPVs 815 565 922 1,227 1,093 Grand total 53,165 72,005 1,29,291 1,66,402 1,75,772 Source: SIAM Exhibit 1: Car usage in India and Leading World Market Cars for Thousand People A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 72 Analysis and Discussion diversification (6.71), Strong dealer and service network SWOT Factors for car Manufacturers –Strengths (6.39), large volume of production (6.37) and Established base (5.81) which was ranked second, third, four th, fif th To identify the strength factors for car manufacturer, the and sixth respectively. Friedman’s test is used and the result of the test is given in the Table 4. Therefore, it can be concluded that Suppor t from car financiers, Product diversification, Strong dealer and service The Friedman chi-square tests the null hypothesis that the network and Large volume of production are identified as ranks of the variables do not differ from their expected value. major strength factors for car manufacturer. For a constant sample size, the higher the value of this chi- square statistic, the larger the difference between each SWOT Factors for car manufacturer –Weakness variables rank sum and its expected value. For these rankings, the chi-square value is 821.199; Degrees of freedom are To identify the weakness factors of the car manufacturer, equal to the number of variables minus one. The asymptotic the Friedman’s test is used and the results are given in significance is the approximate probability of obtaining a Table-5. chi-square statistic as extreme as 821.199 with nine degrees of freedom in repeated samples if the rankings of each factors It could be noted from Table 5 below that among the six are not truly different. Because a chi-square of 821.199 with nine degrees of freedom is unlikely to have arisen by chance, factors, Low level of safety features (3.78) was ranked first. it has to be concluded that the 712 respondents do not It is followed by Low number of dealers (3.75), Lack of new have equal preference for all factors. The above Table 4 technology (3.45) High maintenance (3.14) and Costly spares por trays that among the ten factors, suppor t from car ( 3 . 1 1 ) w e r e r a n ke d s e c o n d , t h i r d , f o u r t h , a n d f i f t h financiers (6.96) was ranked first. It is followed by Product respectively. Ta b l e 4 : S W O T F a c t o r s f o r Ca r Ma n u f a c t u r e r – S T R E N G T H Factors Mean SD Mean Chi- Df P Rank Square Adver tisement 4.28 3.214 4.29 Durability/ Ruggedness 5.35 2.734 5.37 Established base 5.79 2.677 5.81 Latest engine technology 4.30 2.610 4.32 High fuel efficiency 4.25 2.732 4.26 821.199 9 0.00** Large volume of production 6.35 2.459 6.37 Product diversification 6.68 2.400 6.71 Strong brand loyalty 4.51 2.718 4.53 Strong dealer and service network 6.37 2.559 6.39 Suppor t from car financiers 6.94 2.667 6.96 A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 73 Table 5: SWOT Factors for Car Manufacturer –WEAKNESS Factors Mean SD Mean Chi- df P Rank Square Costly spares 3.11 1.692 3.11 High maintenance 3.14 1.585 3.14 Low price of cars 3.78 1.734 3.08 102.487 5 0.00** Lack of new technology 3.45 1.633 3.45 Low level of safety features 3.78 1.631 3.78 Low number of dealers 3.75 1.806 3.75 Table 6: SWOT Factors for Car Manufacturer–OPPORTUNITY Factors Mean SD Mean Chi- Df P Rank Square Growing demands 2.96 1.422 2.97 Introduction of diesel product 3.09 1.447 3.09 Improvement in existing product 2.63 1.356 2.63 55.171 4 0.00** Introduction of safety features 3.14 1.305 3.16 Launch of new product 3.14 1.463 3.15 It is concluded that Low level of safety features, Low number of diesel product (3.09), Growing demands (2.97) and of dealers, Lack of new technology, High maintenance and Improvement in existing product (2.63) which was ranked Costly spares are identified as significant weakness factors second, third, fourth and fifth respectively. of the car manufacturers which will not suppor t them to increase the sales or influence the people negatively towards Thus, it is concluded that Introduction of safety features, brand preference. Launch of a new product, and Introduction of diesel product are identified an oppor tunity factor for car SWOT Factors for Car Manufacturer –Opportunity manufacturer and these factors are to be considered by the manufacturer. To know the oppor tunity factors for car manufacturer, the Friedman’s test is used and the results are given in Table-6. SWOT Factors for car manufacturer –Threat It is understood from the above Table 6 that among the five To identify the impor tant threat factors for car manufacturer, factors, Introduction of safety features (3.16) was ranked first. the Friedman’s test is used and result of the test is given in It is followed by Launch of new product (3.15), Introduction Table 7. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 74 Ta b l e 7 : S W O T F a c t o r s f o r Ca r Ma n u f a c t u r e r – T H R E AT Factors Mean SD Mean Chi- Df P Rank S q u ar e Cut throat competition 2.35 1.158 2.36 Globalization and liberalization 2.29 1.107 2.30 56.795 3 0.00** Loss in market share 2.59 1.113 2.59 Shrinking global market 2.74 1.038 2.75 It could be noted from the above Table 7 that among the dealers’ preference, the Friedman’s test is used and results four factors, shrinking global market was ranked first. It is of the same are given in Table 8. followed by Loss in market share (2.59) and Cut throat competitions (2.36) which were ranked second and third It is clear from the above Table 8 that among the seven respectively. factors, convenient place (4.59) was ranked first. It is followed by Space (4.52), Change of genuine spare par ts Hence, it is concluded that shrinking global market, Loss in (4.05), High technology equipments (3.73) and direct market share and Cut throat competition are identified as a contact customers (3.72) which were ranked second, third, major threat factor for car manufacturer. four th and fif th respectively. SWOT Factors for service provided by the dealer Thus, it is concluded that convenient Place, Space and –Strength Change of genuine spare par ts are identified as a strength factor for service provided by the dealer To identify the strength factors for service provided by the which will influence the customers towards dealer dealer which significantly influence the respondent towards preference. Table 8: SWOT Factors for service provided by the Dealer –STRENGTH Factors Mean SD Mean Chi- Df P Rank Square Convenient place 3.47 2.004 4.59 Change of genuine spare par ts 4.04 1.809 4.05 Direct contact customers 3.71 1.955 3.72 Highly skilled mechanics 3.50 1.964 3.51 290.871 6 0.00** High technology equipments 3.73 1.829 3.73 Less competition 4.98 1.844 3.29 Space 4.52 2.128 4.52 A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 75 Ta b l e 9 : S W O T F a c t o r s f o r s e r v i c e p r o v i d e d b y t h e De a l e r – W E A K N E S S Factors Mean SD Mean Chi- Df P Rank Square Delay in service 3.77 2.183 3.77 Heavy dealer charge 3.56 1.921 3.55 Monopoly behaviour 3.77 1.913 3.77 Private auto garage 3.73 1.907 3.73 137.194 6 0.00** Poor equipments 4.46 1.950 4.46 Thin mechanic force 4.22 1.875 4.22 Unskilled mechanics 4.51 2.031 4.51 SWOT Factors for service provided by the Dealer It could be noted from the above Table 10 that among –Weakness the six factors, using new technology equipments (4.00) was ranked first. It is followed by Opening new service To identify the weakness factors for service provided by the centers (3.73), More sales promotion activities (3.50), dealer which will not influence the customers towards Maintaining customer relationships (3.34) and Attending dealer ’s preference, the Friedman’s test is used and the complaints promptly (3.27) which were ranked second, results are given in Table 9. t h i r d , f o u r t h a n d f i f t h r e s p e c t i v e l y. I t c o u l d b e concluded that Using high technology equipments, It is noticed from the above Table 9 that among the seven Opening new service centres, More sales promotion factors, unskilled mechanics (4.51) was ranked first. It is activities and Maintaining customer relationships are followed by Poor equipments (4.46), Thin mechanic force identified as major oppor tunity factors for ser vice (4.22), Delay in service (3.77) and Monopoly behaviour (3.77) provided by the dealers. which were ranked second, third, fourth and fifth respectively. Hence, it is concluded that unskilled mechanics, Poor SWOT Factors for service provided by the dealer equipments, Thin mechanic force, and Delay in service are –Threat identified as major weakness factors for service provided by the dealer, which will not influence the customers towards To identify the major threat factor for service provided by dealers’ preference. the dealer, the Friedman’s test is used and the results are given in Table 11. SWOT Factors for service provided by the dealer – Opportunity It is understood from the above Table 11 that among the four factors, Lack of latest market information (2.77) was To identify the oppor tunity factors for service provided by ranked first. It is followed by Competition (2.63) and Poor the dealer, the Friedman’s test is used and the results are sales promotion activities (2.48) which were ranked second given in Table 10. and third respectively. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 76 Table 10: SWOT Factors for service provided by the Dealer–OPPORTUNITY Factors Mean SD Mean Chi- Df P Rank Square Attending complaints promptly 3.26 1.803 3.27 Maintaining customer relationship 3.32 1.613 3.34 More sales promotion activities 3.49 1.657 3.50 103.751 5 0.00** Opening new service centres 3.72 1.750 3.73 Quality service every time 3.14 1.649 3.15 Using new technology equipments 4.00 1.617 4.00 Table 11: SWOT Factors for service provided by the Dealer–THREAT Factors Mean SD Mean Chi- Df P Rank Square Competition 2.12 1.141 2.63 Lack of business harmony 2.64 1.066 2.11 101.939 3 0.00** Poor sales promotion activities 2.49 1.087 2.48 Lack of latest market information 2.77 1.077 2.77 Thus, it is concluded that Lack of latest market problems, operation strategy, so as to reinforce the customers’ Competition and Poor sales promotion activities are identified trust and expectation and consequently attain as major threat factors for service provided by the dealers. personal, professional and profitable relationship with Implications of the Study customers. This study in its endeavour to carry out a comprehensive 2 . M a n u f a c t u r e r, e s p e c i a l l y a l l t h e d e a l e r s o f t h e study on SWOT factors of automobile industry in India in m a n u f a c t u r e r, n e e d t o d e v e l o p a s y s t e m o f the perspective of customers has unear thed umpteen involvement, trust and commitment as they play a vital numbers of intriguing implications for the manufacturers role in value creation for customers, dealers and and dealers and also provides means which would equip manufacturers. them with effective marketing strategies to improve their performance and retain the customers. A few paramount 3. The primary implications for the dealers are: implications of the study are outlined here. 1. Findings of this study indicate that it is wor thwhile (a) Increase the practice of awareness training, for the dealers of automobiles to take note of the service workshops, complaint management results of this study and formulate competitive systems and customer satisfaction surveys; A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 77 (b) Have appraisal on the basis of customers’ information to the general public, car owners, dealers feedback on the sales personnel and and car manufacturing companies in many ways. It is very mechanics’ ability to maintain proper evident from the study that, manufacturer or dealer, in relationship with customers; order to be successful, should refrain from treating all customers’ requirements equally. The findings of the study (c) Put in place ‘Assessment incentives’ on the are expected to help the dealers and manufacturers of basis of customer rating as it happens in the automobile industry in understanding the elements of educational institutions where students’ preference at market level. Findings also suggest that the rating of teachers is of paramount dealers can generate more customers by adapting proper impor tance in assessing the per for mance customer relationship management methods. The of the teachers; propensity to offer experiential and intangible rewards to the customers that are relevant and perceived as high (d) Dealers have to focus on their employees’ value in form of special recognition or special experience interpersonal and selling skills and as opposed to standard discount offer or gift type will concentrate on the service ‘extras’ that allow them to differentiate themselves from be more rewarding in the long run. competitors; Keywords: SWOT Analysis, car manufacturer, dealers’ service, Friedman’s test. (e) Focus on creating new customers for the business, through maintaining good References appearance and cleanliness of the showroom, explanation for enquiries by the Auto India Vol. No.16, Issue II, April 2009. employees and mechanics, prompt delivery of the vehicle and integrity of the dealer; and Conover. W.J. Practical Nonparametric Statistics. Third Edition, Wiley, (1999): 367-373. (f) Apar t from creating new customers for the business, the dealers have to concentrate Hill, T. and R. Westbrook. “SWOT Analysis: It’s Time for a on retaining the existing customers. This Product Recall.” Long Range Planning. 30 (1): can be achieved by the dealer by satisfying (1997): 46–52. the customers through building customer relations, good behaviour of mechanics, Menon, A . et al. “Antecedents and Consequences of using quality service equipments and new Marketing Strategy Making.” Journal of Marketing. technology, change of genuine spare par ts, 63: (1999): 18–40. spacious and convenient location of service station and delivering the vehicle Ramanuj Majumdar. “Product Management in India.” Prentice- on time. Hall of India (P) Limited. New Delhi, 3 rd Edition, 15 th print. 2007. Conclusion When customers decided to buy / avail the par ticular J.Scott Armstrong. “The Value of Formal Planning for Strategic product or service, before that they may have bundle of Decisions.” Strategic Management Journal. 3: questions in their mind regarding that product and its (1982):197–211. services. Based on the literature available on SWOT factors relating to car manufacturer and service provided by the Sooraj Bhat and Puneet Dhamija, “The Indian passenger car dealers, this study covers the consumers’ general opinion market: Outlook for Maruti.” Management Review. towards the passenger cars and also provides useful December 1999. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 78 Websources ANNEXURE < h t t p : / / w w w. a u t o c a r. c o m > , < h t t p : / / w w w. a u t o i n d i a SWOT Factor Scale m a r t . c o m > , < h t t p : / / w w w. a u t o m o b i l e i n d i a . The S t r e n g t h , We a k n e s s , O p p o r t u n i t y a n d T h r e a t com><http: //w w w . B u s i n e s s b a l l s . c o m > , (SWOT) factors scale relating to car manufacturer <http://www.cipd.co.uk>, <http://www.motor and Service provided by the dealer are given i n d i a . c o m > ,< h t t p : / / w w w. t e x a s o f t . c o m / b e l o w. winkfrie.html> SWOT Factors for Car Manufacturer STRENGTH WEAKNESS a. Adver tisement ( ) a. Costly spares ( ) b. Durability /Ruggedness ( ) c. Established base ( ) b. High maintenance ( ) d. Latest engine technology ( ) c. Low price of cars ( ) e. High fuel efficiency ( ) d. Lack of new technology ( ) f. Large volume of production ( ) e. Low level of safety features ( ) g. Product diversification ( ) f. Low number of dealers ( ) h. Strong brand loyalty ( ) i. Strong dealer and service network ( ) j. Suppor t from car financiers ( ) OPPORTUNITY THREAT a. Growing demands ( ) a. Cut throat competition ( ) b. Introduction of diesel models ( ) b. Globalization and liberalization ( ) c. Improvement in existing product ( ) c. Loss in market share ( ) d. Introduction of safety features ( ) d. Shrinking global market ( ) e. Launch of new product ( ) SWOT Factors for Service provided by the Dealer STRENGTH WEAKNESS a. Convenient place ( ) a. Delayed service ( ) b. Change of genuine spares par t s ( ) b. Heavy dealer charge ( ) c. Direct contact customers ( ) c. Monopoly behaviour ( ) d. Highly skilled mechanics ( ) d. Private auto garage ( ) e. High technology equipments ( ) e. Poor equipments ( ) f. Less competition ( ) f. Thin mechanic force ( ) g. Space ( ) g. Unskilled mechanics ( ) A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 79 OPPORTUNITY THREAT a. Attending complaints promptly ( ) a. Competition ( ) b. Maintaining customer relationship ( ) c. More sales promotion activities ( ) b. Lack of business harmony ( ) d. Opening new service centres ( ) c. Poor sales promotion activities ( ) e. Quality service every time ( ) f. Using high technology equipments ( ) d. Lack of latest market information ( ) A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 80 Ordering of Companies: Proposed - Profitability Scores Dilip Roy and Anupama Tiwari A This paper employs discriminant analysis, a well known Discriminant Score multivariate statistical tool, to find the suitability of developing b discriminant score. The underlying multivariate measure s includes four key financial ratios namely debt equity ratio, t current ratio, inventory turnover ratio and interest coverage ratio so as to predict the future r organizational performance using these financial ratios only. The discriminant score, which we a have developed in this process, is in line with Fisher's linear discriminating function. This c score has been adjusted for threshold value. The usefulness of this score has been established t by calculating the rank correlation between the proposed score and the profitability measure. T he prediction of future prospect of business is It is well known in the literature that financial ratios are important becoming increasingly impor tant (Neophytou and tools, which can be used to significantly discriminate Market Molinero, 2004) due to the growing upheaval in the Out-performers, Market Performers and Market Under- world economy. Firms, irrespective of their sizes and volumes performers. Beaver (1966) was the first one to point out that of operation, seem to loose the financial ratio composition of 12345678901234567890123456789012123456789012345678901234567 control over their financial 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 the weak companies differs 12345678901234567890123456789012123456789012345678901234567 stability. As a result, financial 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 significantly from the financial 12345678901234567890123456789012123456789012345678901234567 statement analysis (Lev, 1974) 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 ratio composition of the healthy 12345678901234567890123456789012123456789012345678901234567 has regained focus. The focus 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 one. But mostly these groupings 12345678901234567890123456789012123456789012345678901234567 is also due to its ability to 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 are subjective in nature and 12345678901234567890123456789012123456789012345678901234567 provide analysts with the 12345678901234567890123456789012123456789012345678901234567 objective procedures like 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 opportunity to examine how a 12345678901234567890123456789012123456789012345678901234567 discriminant analysis, cluster 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 company is performing when 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 analysis need to be employed 12345678901234567890123456789012123456789012345678901234567 compared with previous years 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 for such purposes. 12345678901234567890123456789012123456789012345678901234567 D r. D i l i p R o y , D i r e c t o r, C e n t e r f o r M a n a g e m e n t (Williams and Ellis, 1993). 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 S t u d i e s , U n i v e r s i t y of B u r d w a n , G o l a p b a g , B u r d w a n 12345678901234567890123456789012123456789012345678901234567 Numerous studies have been 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 – 7 1 3 1 0 4 , E m a i l : d r. d i l i p r o y @ g m a i l . c o m 12345678901234567890123456789012123456789012345678901234567 Discriminant analysis is a 12345678901234567890123456789012123456789012345678901234567 contributed in this regard from 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 statistical approach generally 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 different specialized area like P r o f . A n u p a m a T i w a r i , Senior L 12345678901234567890123456789012123456789012345678901234567e c t u r e r, F a c u l t y o f used in social science research 12345678901234567890123456789012123456789012345678901234567 M a n a g e m e n t S t u d i e s , D r. B . C . R o y E n g i n e e r i n g 12345678901234567890123456789012123456789012345678901234567 finance, economics and 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 to discriminate two or more College, Jemua Road, Fuljhore, Durgapur-713206, 12345678901234567890123456789012123456789012345678901234567 accounting (Johnsen and 12345678901234567890123456789012123456789012345678901234567 12345678901234567890123456789012123456789012345678901234567 groups. The same has been Email: [email protected] 12345678901234567890123456789012123456789012345678901234567 Melicher, 1994). 12345678901234567890123456789012123456789012345678901234567 used in financial performance A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 81 analysis to discriminate the companies into better and worse we propose to consider four financial ratios debt equity ratio, performers based on stock market indices to enable the current ratio, inventory turnover ratio and interest coverage investors to invest wisely to maximize their returns. One of the ratio. These ratios are selected to enable the investors in most renowned studies in finance is by Altman (1968, p589), predicting which companies are most steady in their growth where he used discriminant analysis to predict the corporate rate and hence to invest in. Further such investigation would bankruptcy based on liquidity ratio, profitability ratio, leverage help the investors to hedge a portfolio in order to choose ratio, solvency ratio and activity ratio. Charabji, Hamdi, Mrrash different companies from different clusters to maximise their (1993) examined the applicability of discriminant analysis for portfolio’s diversity and flexibility to the changes in the market. rescheduling external debt of less developed countries with Debt equity ratio enables us to know the propor tion of the help of variables like debt burden, foreign exchange investment of creditors and owners into the firm, whereas balance and GDP growth. Earlier Deakin (1972) had used current ratio expresses how much current assets are there with discriminant analysis for predicting business failures. Mohanty the firm to meet the current liabilities. The inventory turnover and Sahoo (2002) had applied discriminant analysis for credit ratio gives the number of times the inventory is replaced during rating and Raj (1999) had used the same for lending decision a given period; usually a year and interest coverage ratio shows making. If we consider the financial ratios as a vector measure the number of times the interest charges are covered by funds that are ordinarily available for payment. In this process we of financial performance of an organization the linear obtain the vector measure of financial performance for all the discriminant function can be used to classify different firms. companies for a particular year. Based on the selected financial ratios of the extreme companies, so obtained, we construct Purpose of this Research the linear discriminant function following Fisher ’s approach. This linear discriminant function, adjusted for the threshold In the recent past researchers have established that the financial value, may be considered as a composite measure for business ratios are no more capable of discriminating between the good efficiency provided it is compatible with some standard and the worse performers. Academicians now seem to efficiency measure. Profitability being a widely used parameter eliminate the usage of ratio analysis as a quantitative tool for of business performance we have decided to examine the estimating the financial picture of an organization. According compatibility of discriminant score with those based on to them, investors have to be sentinel for some other models profitability measure. The compatibility between the two sets to master their investment decisions making process. of ranks as obtained from discriminant score and profitability score will be examined in terms of Spearman’s rank correlation. However, one may put up a differing hypothesis that financial In case the compatibility is reasonable, the discriminant score ratios may be a bad indicator for performance analysis if the can be considered as a composite measure of business choice of the ratios is not an appropriate one and may become efficiency based on financial ratios. good indicators if appropriately chosen. In this paper, we propose to use the concept of discriminant analysis for Discriminating Function maintaining close compatibility with profitability measure. In this process we can arrive at a composite financial measure, to Following Fisher ’s approach the linear discriminant function be referred as discriminant score, as an alternative measure for can be calculated as studying business efficiency. Methodology To install the discriminant analysis, we propose to select a product field and within the product field we propose to where: is the mean vector of the financial ratios of the best select some companies of varying performance and study their company as per profitability measure financial statements over a period of years. Our primary concern is to identify the best and the worst performers among these is the mean vector of the financial ratios of the worst companies in terms of net profit margin ratio. Simultaneously company as per profitability measure A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 82 is the inverse of the common dispersion matrix formed them. Similar exercise of ranking of the companies can be with four financial ratios and under taken based on profitability measure. If d i is the difference in the two sets of ranks for the i th company and is the vector measure for financial performance there are n companies, then the Spearman’s Rank correlation, r, as a measure of compatibility, can be expressed as The inbetween point of performance being we can make use of the same in the discriminant function to arrive at the threshold value. Thus, the threshold value can be In case r is on the higher side we can consider the discriminant calculated as score to be a good measure of organizational performance. Empirical Study and by shifting the origin to the threshold value we can get the For our empirical study we have selected cement industry discriminant score as as the product field of our choice and have chosen eight cement companies namely Birla Corporation Ltd, Japee Cements Ltd., Mangalam Cement Ltd., Chettinad Cement Corporation Ltd., J.K. Cement Ltd., Madras Cements Ltd., Ultra Tech Cement Ltd. and Bur npur Cements Ltd. having If the discriminant score of a company is positive we may varying performances. Data about the financial statements consider that company to be a good performer. Reverse will of these companies have been collected from Capitaline be conclusion when the discriminant score will be negative. corporate database software. We have used net profit margin For a given set of companies based on which we need to ratio of the year 2008 to rank these companies according to examine the suitability of this score, we first propose to their performances so as to identify the best and the worst calculate the company -wise discriminant scores and rank performers. Ta b l e 1: S h o w i n g Co m p a n y -w i s e Ne t Pr o f i t Ma r g i n Ra t i o N a m e of t h e C o m p a n i e s Net Profit Margin Ratio for 2008 Birla Corporation Ltd. 0.229 Jaiprakash Associates Ltd 0.153 Mangalam Cement Ltd 0.223 Chettinad Cement.Corporation Ltd 0.176 J K Cements Ltd 0.182 Madras Cements Ltd 0.203 U l t r a Te c h C e m e n t L t d 0.183 Burnpur Cement Ltd 0.053 A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 83 Ta b l e 2 : Sh o w i n g Fi n a n c i a l Ra t i o s o f B u r n p u r C e m e n t s L t d . Ye a r s 2008 2007 2006 2005 2004 Ratios Debt Equity Ratio 0.49 0.83 0.83 1.36 2.95 Current Ratio 1.89 1.44 1.34 1.07 1.17 I n t e r e s t Tu r n o v e r R a t i o 16.56 8.9 5.75 2.91 2.42 Interest Coverage Ratio 2.15 2.48 2.51 2.85 1.51 Table 3: Showing Financial Ratios of Birla Corporations Ltd. Ye a r s 2008 2007 2006 2005 2004 Ratios Debt Equity Ratio 0.34 0.54 0.76 0.82 1.01 Current Ratio 0.87 0.81 0.87 0.98 0.93 Interest Tur nover Ratio 11.62 14.44 13.72 12.97 11.39 Interest Coverage Ratio 27.18 25.92 11.58 5.32 2.46 From table 1 we note that the best performer is Birla Corporation Assuming identical variability for these two companies, we Ltd. and the worst performer is Burnpur Cements Ltd. Since we calculate the pooled. have selected four ratios we need observations for at least five time points for estimating the dispersion of the system. We Dispersion matrix “as the average of these two and is have taken five years data from 2004 to 2008 for the two extreme given below: performers and are given in Table 2 and Table 3. Corresponding dispersion matrices of Birla Corporation Ltd and Burnpur Cement Ltd are given below: The corresponding inverse of the pooled dispersion matrix is obtained as A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 84 The threshold value can be obtained as Fu r t h e r, is the mean vector of the financial ratios of the best company as per profitability measure. is the mean The corresponding discriminating equation is given by vector of the financial ratios of the worst company as per profitability measure Hence Where: and x1 : is the Debt Equity Ratio x2 : is the Current Ratio x3 : is the Interest Turnover Ratio x4 : is the Interest Coverage Ratio Table 4: Showing Discriminant Scores of all the 8 Ccompanies under Study Name of the Data for the year 2008 Companies Debt Current Interest Interest Threshold Discriminant Equity Ratio Turnover Coverage Value Score Ratio Ratio Ratio Birla Corporation Ltd. 0.34 0.87 11.62 27.18 - 44.94 31.71 Jaiprakash Associates Ltd 2.14 1.21 3.31 3.21 - 126.78 - 50.13 Mangalam Cement Ltd 0.41 1.24 9.30 48.40 - 118.21 - 41.56 Chettinad Cement Corpn. Ltd 1.02 0.55 9.06 13.58 - 14.21 62.44 J K Cements Ltd 0.84 1.85 12.99 7.77 - 144.57 - 67.92 Madras Cements Ltd 1.43 0.67 12.62 12.76 - 4.38 72.27 Ultra Tech Cement Ltd 0.74 0.65 12.05 20.91 - 11.04 65.61 Burnpur Cement Ltd 0.49 1.89 16.56 2.06 - 122.62 - 45.97 Table 5: Showing Rank Correlation based on Profitability Measure and Discriminant Score Rank (R1) based on Rank(2) based on Name of the Companies profitability measure discriminant score Birla Corporation Ltd. 1 4 Jaiprakash Associates Ltd 7 7 Mangalam Cement Ltd 2 5 Chettinad CementCorporation Ltd 6 3 J K Cements Ltd 5 8 Madras Cements Ltd 3 1 Ultra Tech Cement Ltd 4 2 Burnpur Cement Ltd 8 6 A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 85 We have calculated Fisher ’s linear discriminating function using Charabji, Hamdi., Mrrash. “Predicting the Government’s Decision mean vector and pooled dispersion matrix of Birla Corporation to seek Rescheduling of External Debt.” The ICFAI Ltd. and Burpur Cements Ltd. Thereafter, using this threshold Journal of Applied Research. ICFAI Press. 1993. value we have evaluated the discriminant scores and are given in Table 4. Deakin, E.B. “Discriminant Analysis of Predictors of Business Failures.” Journal of Accounting Research. On the basis of these discriminant scores we have ranked (Spring).1972. these eight companies and the related information is given in Table 5. Johnsen, T., and Melicher, R .W. “Predicting Corporate Bankruptcy and Financial Distress: Information Value Added By Multinomial Logit Models.” Journal of Now given the two sets of ranks we have examined their Economics and Business . 46(4), (1994): 269-286. compatibility by taking course of Spearman’s rank co-relation. The correlation we have obtained is 0.6 which is on the higher Lev, B. Financial Statement Analysis A New Approach. side. Thus we can claim that the composite financial measure Englewood Cliffs, Printice Hall.1974. proposed herein can be used to describe the organizational performance and help the investors in making judicial investment Mohanty, Sahoo. “An Alternative to Crisil Credit Rating: Using decisions. Discriminant Analysis.” The ICFAI Journal of Applied Research . ICFAI Press. 2002. Key words: Discriminant analysis, Debt equity ratio, Inventory turnover ratio, Current ratio, Interest coverage ratio, and Rank Neophyton, E., and, Molinero, C.M. “Predicting Corporate correlation. Failure in the UK: A Multidimentional Scaling Approach.” Journal of Business Finance and References Accounting. 31(5/6), (2004). 677-710. Altman, Edward. “Financial Ratios, Discriminant Analysis and Raj, G.C. “Discriminant Analysis for Lending, “ICFAI: Research the Prediction of Corporate Bankruptcy.” The Journal Papers in Applied Finance.” ICFAI Press. 1999. of Finance. September, (1968): 589-609. Williams, D., Ellis, J. “Comparative Financial Analysis.” Corporate Beaver, W. “Financial Ratios As Prediction Of Failure. Empirical Strategy and Financial Analysis: Managerial, Research in Accounting: Selected Studies.” Journal Accounting and Stock Market Perspectives. Financial of Accounting Research. 4(3), (1966): 71-111. Times/Pitman Publishing, London, (1993): 203-47. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 86 Single and Multiple Expectations: Service Quality Retailing Ravichandran K., Abdus Samad K., and David Sam Jayakumar G.S. This ar ticle attempts to codify the service quality dimensions A Modelling Gaps within the scope of the Organized Retailing Sector in India. It is a b known fact that organised retailing is making a strong impact in s many par ts of India's growing economy. W ith rapid change and expansion in the retail environment, it has become all the more necessary to identify and t streamline the different parameters. This research ar ticle takes up dimensions like Physical r Aspects, Reliability, Personal Interaction, Problem Solving and Policy which access the retail a service effective users of especially the food retailers. It attempts to study the Gaps in the c S e r v i c e Q u a l i t y a n d p r o p o s e c e r t a i n s o l u t i o n s f o r t h e s a m e . Tw o m o d e l s w e r e p r o p o s e d t mainly Single Expectation Model and Multiple Expectation Model and these models were fur ther used to study the G APs in the Ser vice Quality of Food Retailers. I ndia has been rather slow in joining the Organized Retail ded by the retail chains; and also due to the highly fragmented Revolution that has rapidly transformed the economies in food supply chain that is cloaked with several inter-mediaries the other Asian (from farm-processor- Countries. Though with distributor-retailer) 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 a population of a billion 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 resulting in huge value 12345678901234567890123456789012123456789012345678901234567890121234567890123 and a middle class 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 loss and high costs. 12345678901234567890123456789012123456789012345678901234567890121234567890123 population of over 400 12345678901234567890123456789012123456789012345678901234567890121234567890123 This supplemented 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 Millions organized 12345678901234567890123456789012123456789012345678901234567890121234567890123 with lack of developed 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 retailing in the form of 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 food processing indus- 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 food retail chains is still 12345678901234567890123456789012123456789012345678901234567890121234567890123 try kept the organized 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 in its beginning in the 12345678901234567890123456789012123456789012345678901234567890121234567890123 chains out of the 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 Country. This is largely 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 market place. The 12345678901234567890123456789012123456789012345678901234567890121234567890123 due to the excellent 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 D r. R a v i c h a n d r a n K . , P r o f e s s o r, D e p a r t m e n t o f M a n a g e m e n t S t u d i e s , correction process is 12345678901234567890123456789012123456789012345678901234567890121234567890123 food retailing system 12345678901234567890123456789012123456789012345678901234567890121234567890123 Madurai Kamaraj University, M a d u r a i -6 2 5 0 2 1, Email: now under way. Big 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 that was established by [email protected] 12345678901234567890123456789012123456789012345678901234567890121234567890123 daddies of Indian 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 the neighbourhood 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 corporate sectors are D r. 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P r o f e s s o r, J a m a l I n s t i t u t e o f 12345678901234567890123456789012123456789012345678901234567890121234567890123 12345678901234567890123456789012123456789012345678901234567890121234567890123 daily needs without 12345678901234567890123456789012123456789012345678901234567890121234567890123 M a n a g e m e n t ( J I M ) , J a m a l M o h a m e d C o l l e g e , Tr i c h y – 6 2 0 0 2 0 , systems are being 12345678901234567890123456789012123456789012345678901234567890121234567890123 the convenience of 12345678901234567890123456789012123456789012345678901234567890121234567890123 established for effe- 12345678901234567890123456789012123456789012345678901234567890121234567890123 Ta m i l n a d u , E m a i l : g s d s j k 7 7 @ y a h o o . c o . i n 12345678901234567890123456789012123456789012345678901234567890121234567890123 the shopping as provi- ctive Business-to- A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 87 Business (farmer-processor, processor-retailer) solutions thereby The five powerful dimensions assess the retail service leveraging the core competence of each player in the supply effectiveness of the food retailers. The above said dimensions chain. are central to the services quality. At this juncture, the core facts of the food retail service quality dimensions are discussed below. Spread of Organized Retailing in India Physical Aspects Organized retailing is spreading and making its presence felt in different parts of the country. With the entry of very large Physical aspects refer to the appearance of the food retail store; corporate houses like Reliance Fresh, Vishal, AV Birla Group, Physical aspects mean external bodily appearance of the retail Bharti Walmart Joint Venture and the existing Big Bazaar and RPG outlet. They also encompass the store ambience to its retail Spencer in large scale expansions across the country, the spread shoppers. In this hi-tech organized food retail scenario stiff of the organized retail is going to reach soon the small competition plays a very imperative role in this regard. Physical populations towns of one lac to five lacs after covering all big, aspects have various sub features which contribute to the food medium and small cities. The trend in grocery retailing, however, retail services quality. These sub features add to the attire and has stated with a growth concentration in the South. Though appeal of the retail store. there were family owned retail chains in South India such as Nilgiri’s as early as 1904, the retail revolution happened with Modern Equipment and Fixtures various major business houses foraying into the starting of chains of food retail outlets in South India with focus on Chennai, Modern equipment and fixtures encompass the usage and Hyderabad and Bangalore markets, preliminarily. In the Indian application of the standard devices and softwares which have context, a countrywide chain in food retailing has been to be utilised by the food retailers. pioneered by Big Bazaar and Reliance Fresh only. Physical Facilities Services Quality Dimensions Physical facilities explain how the products are visually appealing to their customers. The store decor is in such a way that it The retail environment is changing more rapidly than ever before. aesthetically captivates the customers’ attention and lures them It is characterized by intensifying competition from both domestic again and again. and foreign companies, a spate of mergers and acquisitions and more sophisticated and demanding retail shoppers who Good Looking Shopping Material have greater expectations related to their consumption experiences. Consequently food and grocery retailers today It refers to the materials such as shopping bags, trolleys and must differentiate themselves by meeting the needs of their retail other purchase materials that have a good personality. shoppers better than the competition. There is general agreement that a basic retailing strategy for creating competitive advantage Attractive and Convenient Public Areas is the delivery of high service quality. In this modernised world, the customers expect very clean and Based on the various sources, this model proposes that retail posh public areas. Only then the customers will have store shoppers to evaluate the food retail service quality the researcher patronage and regular visits would be carried out. has identified five different dimensions as follows: Easy Accessibility • Physical Aspects • Reliability Easy accessibility justifies the ease to access of the food retail • Personal Interaction store. The stores should be a stone’s throw away from the • Problem Solving residential areas and should be easily accessed from any • Policy landmark. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 88 Easy Internal Mobility the requirement of the customer. This is vital to customer satisfaction. It refers to the movement of customers within the store. The food retail should not be congested, and it should have an easy Immediate Response to Customer Request customer traffic flow within its retail outlet. Responsiveness is the strength of the employees. They give Personal Interaction right responses to the queries and doubts posed by the customers. This results in a positive outcome as the customer Personal interaction is about the employee rapport with the understands the professionalism and competency of the store. customers. The food retail store employees must have an affinity towards their end-users. They should be more understanding Individual Caretaking on what is being preferred by the customers. They should know the needs of the customers instinctively. The food retail store has to provide specific attention to the patrons who are loyal to it. Customer loyalty helps the store to Employees’ Knowledge grow and the more customers who are loyal to it; the more is the store’s growth. This feature exercises the human resource potential. The employees must have the know-how and the capacity to answer Courteousness of Employees customer queries. The employee should give quick and convincing answers in a pleasing manner. The human capital should have considerations towards the customers of the food and grocery retail entity. Employees Confidential Behaviour Courteous Communication Employees play a core role in a food retailer store. The service employees have to instill confidence on the customers through Courteous communication identified the chivalrous mannerisms their personal attitude and behaviour. This feature attracts more of the employees in the food retail chains. This feature is one of number of customers to the retail corporate. the most important communicative tools when they speak through telephone to customers communicating is at its best Security in Transactions through the usage of the polite sounds and the tone of the voice which is soft and pleasing. Courteousness comes to the The food retailers must provide safe keeping for the buyers fore in this. who use their food retail brands. They must provide safety to the dealings of the customers and this will improve the Reliability confidence on the retail store. Reliability focuses on the trustworthiness of the food retailers Performing Prompt Services from customers’ point of view. Reliability can be said to be the dependability of the buyers towards the retail store. This factor Performing prompt services refer to the punctuality of the emphasises on the customers’ consistency, because they are employees in what they deal with. The employees should not asset of the retail organisation. cause any delay in the transactions. Time is the essence of modern day shopping. Promising Services Performing Exact Services When the store promises to do something it has to be carried out. This is called as promising services. Commitment is the Exact services render to the accuracy of the retail store. They core of retail services and it can be neglected only at the cost of are literal in their transactions what they provide is in tune with losing customer confidence. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 89 Time Promising Services any damage in the food products variety, the replacement of the product items must be carried out in a right manner. Time promising services refer to the accuracy of the particular services which must be executed at the right time. There must Sincerity in Problem Solving not be any flaws in the time promising services. It is a must to maintain specific interest in solving the issues of Doing it Right the customers which they have. Buyer’s problems are recognised and immediate action is taken. The retail store performs the services at the first and foremost time. Here, they should very careful in executing the transactions Handling Customer Compliance which must be done first. A coherent and consistent execution plan is the backbone to this feature. Whenever a customer faces problems, the human resource reacts directly to the situation concerned. The employee has to attend Supply of Right Products to the buyer’s grievances without any delay and postponement. This leads to customer loyalty as he/she perceives the stores’ This sub feature submits the quality variables of availability of professional attitude and appreciates the commitment of the merchandise. The food retailers have to supply the precise employees. products to the customer which he/she likes. This service quality element educates the retailer in retaining the customer. This Policy element protects the switching tendency of the end-user. The fifth dimension in evaluating the retail service quality of the Error Free Transactions food retailers is policy. Policy applies a stress on the superior merchandise which has to be dealt by a retail store. Excellence This sub feature applies the stress on the commitment of blunder in quality of the products is the core theme for a food and free sales transactions. The sales of the produce should be grocery retailer. The food retailers have to take initiative in selling carried out very smoothly without any chaos in it. The records commodities which are of the branded nature. On the other of the product sales should be maintained with due care in hand, the retailers can sell the goods in their own name itself. order to avoid the future problems. This is termed as private brands or private labels. The nature of policy is perceived as good or poor from the customers’ Problem Solving predictions. The next factor in the measuring retail service quality is the The forthcoming are the sub-elements of the policy dimension: problem solving factor. Problem solving refers to how the customer tribulations have been taken with specific interest in Offering Quality Products finding out the possible retail solutions. This factor has more weightage when compared with the other factors. If harm has Offering quality products indicates the high quality merchandise been identified in a retail store, it has to be instantly rectified by of the retail store in action. The product which is branded in the the store management. This factor strengthens the retail store store name has more welcome from feature as it reinforces the effectiveness and put it forth in a premier status. The customer name and image of food retail store. of the food retail store perceives the nature of problem solving as good and poor. Convenient Parking Facilities Returns and Exchanges The element reveals the spacious parking facilities provided by the retail store, in order to draw larger number of customers. Returns and exchanges pass on the quality components of This feature also elaborates the customer centric philosophy. handling the exchange of products and replacements. If there is As parking spaces get more cramped in cities, it is the duty of A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 90 the retail store to provide adequate parking facilities that can empirically studied that shopping experience was expanded. lead to customer delight. Reflecting the integrative (experiential and utilitarian) nature of shopping experience, he aims to propose an overarching Convenient Operating Hours stimulus-organism-response based shopping experience framework. He offers a framework that integrates components This element includes the operating hours according to the of both the hedonic experience related consciousness-emotion- buyers’ preferences. The time should be made convenient to all value model and the utilitarian experience-related cognition- buyers respectively. affect-behaviour model. Tomas Palaima, et. al. (2006) recognised the value of close relationships with their customers because Acceptance of Credit Cards and Offering customer retention in intensifying competition is more and more Membership Cards important. He analyses services quality in the new relationship marketing paradigm. The article focused on Anglo-Australian Acceptance of all the banking and financial companies’ credit approach to relationship marketing. This research approaches saves the valuable time of the end-users at large. the integration of quality management, services marketing concepts and customer relationship economics are emphasized. To end with, this hierarchical factor structure paves the right way The different services quality models are analyzed in order to for the retail service quality of the food retailers and it also takes determine how these models are adequate to changing off the branded nature of the store brands in a superior manner. relationship marketing paradigm. The Adequacy of service quality The sub-elements also contribute to the organised retail space GAP model, the perceived service quality model and the at the maximum extent. Gummeson 4Q model of offering quality is analyzed. The analysis reveals that service quality models and instruments are limited to Review of Literature evaluation of a service episode and are static while relationship marketing paradigm requires dynamic approach which could Dinesh Kumar Gauri, (2008), two powerful, highly effective help to assess service quality in long-term perspective along strategic tools that retailers possess dealing with involves pricing with other relationship quality dimensions. Michel Laroche (2005) and store format decisions. From the several strategic choices indicated that consumers’ evaluations of service quality in a available for each decision, a retailer can choose any shopping environment mediate their pleasure and purchase combination. We focus on two gaps in the literature. First, both intention. Consumer mall shopping decision-making process is decisions are specific to the consumers to whom the stores invariant across English and French Canadian consumers. Practical cater and the environments within which they operate, yet little implications for researchers who are interested in understanding academic research study is noted in them. Thus, it is important consumer mall shopping behaviour cross-culturally, this research to determine the joint effects of considering pricing and format provides a model that can be tested in cross-cultural contexts. decisions in a single framework. Second, do retailers, privy to For mall operators and store managers attempting to improve findings from rich prior literature pertaining to consumer store the mall environment, product quality, and offer better service, choices related to their pricing and format preferences; actually the study provides interesting solutions. Originality/value – By take such information into account when making strategic incorporating service quality into consumer mall shopping choices. Lun Hou (2008), studied to construct a gap model for decision making, this research has demonstrated that consumers’ dual customer values. A basic description of customer values is moods evoked by their perceptions of shopping mall given, and then the gaps between products and services in environment and of product quality influence their purchase different periods for the customers and companies are analyzed intentions through their perceptions of service quality. The mall based on the product or service life-cycle. The main factors that shopping decision-making process of English and French influence the perceived customer value were analyzed to define Canadian consumers is universal, regardless of their cultural the “recognized value gap” and a gap model for the dual orientations. Dirk Morschett, et.al., (2005), developed a customer values was constructed to supply companies with a framework for competitive strategies in food retailing. Managers tool to analyze existing customer value gaps and improve of food retail channels were surveyed in order to derive the customer relationship management. Ann Marie Fiore (2007) – basic dimensions of competitive advantages that companies A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 91 attempt to achieve in this industry sector. In a second study dimension of Malaysia urban grocery shoppers based on the based on consumers, the central dimensions of retail store Retail Service Quality Scale by Dabholkar et al., (1996) that takes perception were investigated. Both studies reveal that three basic into account the retail setting. The instrument was modified types of competitive advantage seem to prevail in food retailing: based on literature review. Sanjay K. Jain (2004), recognized (1) price, (2) quality (with a comprehensive set of quality- quality as a strategic tool for attaining operational efficiency and orientated instruments, including customer service), (3) improved business performance. This is true for both the goods convenience. We find quality leadership and price leadership to and services sectors. However, the problem with management be independent factors which can be achieved without of service quality in service firms is that quality is not easily conflicting with one another. Prem Vrat, et. al., (2005), critically identifiable and measurable due to inherent characteristics of appraised various service quality models and identifies issues services which make them different from goods. Various for future research based on the critical analysis of literature. The definitions of the term ‘service quality’ have been proposed in article critically examines 19 different service quality models the past and, based on different definitions; different scales for reported in the literature. The critical review of the different service measuring service quality have been put forward. SERVQUAL quality models is intended to derive linkage between them, and and SERVPERF constitute two major service quality measurement highlight the area for further research. The review of various scales. Empirical studies evaluating validity, reliability, and service quality model revealed that the service quality outcome methodological soundness of service quality scales clearly point and measurement is dependent on type of service setting, to the superiority of the SERVPERF scale. The psychometric situation, time, need etc. In addition to this even the customer’s soundness and greater instrument parsimoniousness should expectations towards particular services are also changing with employ the SERVPERF scale for assessing overall service quality respect to factors like time, increase in the number of encounters of a firm. The SERVPERF scale should also be the preferred with a particular service, competitive environment, etc. This article research instrument when one is interested in undertaking service provides a rich agenda for future research in the subject. Gordon quality comparisons across service industries. On the other hand, Fullerton (2005) has produced two schools of thought on the when the research objective is to identify areas relating to service cause of customer loyalty in services industries. The service quality shortfalls for possible intervention by the managers, the quality perspective puts forward that service quality evaluations SERVQUAL scale needs to be preferred because of its superior substantially drive customer loyalty in services industries. The diagnostic power. Anne Magi (2002), perceived the service relationship marketing perspective puts forward that customer quality and labour productivity are assumed to be positively commitment to the service provider substantially drives customer related to profitability, but a possible trade-off effect between loyalty in services industries. In addition, commitment is a these two phenomena could distort these relationships. In an complex construct with at least two forms, one based in liking exploratory study, measures of perceived service quality, and identification (affective commitment) and one based in customer satisfaction and patronage behaviour were collected dependence and switching costs (continuance commitment). from customers in four Swedish grocery stores, representing These positions were examined in an integrated model of retail– four combinations of profitability and productivity. Richard A. service relationships. Nor Khalidah Abu (2004), identified the Spreng (2002), perceived service quality and satisfaction have slow growth of grocery products in Malaysia since the Asian generally been conceptualized to be distinct constructs, but financial crisis and the influx of multinational and large scale there isn’t a good understanding of their relationship. While the retailers since early 1990s that allowed Malaysian consumers to two constructs are very similar, little research has empirically be more selective of their choice of grocery stores. Despite examined the distinction. This study discusses the conceptual the extensive research on the measures used by consumers arguments for the distinction, and examines the empirical to measure service quality in the service sector, there is lack distinction by testing a recently proposed model of service of empirical studies on it in the retail sector. A need to look into quality and satisfaction. Results indicate that the two constructs service quality dimensions for each country is called for, as each are, in the present case, distinct, and there is some support for country is believed to have its own unique set of quality the model, with several modifications. Michael K. Brady, et. al. dimensions. This conceptual study identified the service quality (2002), described in this study replicates and extends the Cronin dimensions critical to urban grocery shoppers for small, medium, and Taylor study suggestion that service quality be measured and large-sized grocery stores. It identified the critical quality using a performance-only index (SERVPERF) as opposed to the A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 92 gap-based SERVQUAL scale. The intent of the research was to models are tested by means of confirmatory factor analysis and examine the ability of the performance-only measurement a measurement scale is proposed.. Olivier Furrer, et. al., (2000), approach to capture the variance in consumers’ overall The authors argue that perceptions of service quality vary across perceptions of service quality across three studies. The original cultural groups, as defined by each culture’s position on Cronin and Taylor data were obtained and a replication of their Hofstede’s dimensions. They explicitly map the relationship study was undertaken using a recursive form of their non- between service quality perceptions and cultural dimension recursive model in an effort to avoid the abnormal parameter positions and draw the implications for international service estimates they reported. The replication successfully duplicated market segmentation. They also test the hypotheses constituting their finding as to the superiority of the performance-only their theoretical analysis. They show that the importance of measurement of service quality. Frederick A. Frost (2000), SERVQUAL dimensions is correlated with Hofstede’s cultural Explored the extent to which the construct service quality plays dimensions. They also used the correlation coefficients to in an internal marketing setting. A conceptual model known as compute a Cultural Service Quality Index that could be used to the “Internal Service Quality Model” was designed based on the segment international service markets and allocate resources original “GAP Model” developed by Parasuraman. The model across segments. Pratibha A. Dabholkar (2000), studied the evaluated the dimensions, and their relationships, that determine factors relevant to service quality are better conceived as its service quality among internal customers (front-line staff) and antecedents rather than its components and that customer inter nal suppliers (suppor t staff) within a large ser vice satisfaction strongly mediates the effect of service quality on organisation, namely, Singapore Airlines. The dependent variable behavioural intentions. The article discusses the application of in this study was internal service quality (ISQ), while the this chronological framework in understanding and predicting independent variables were tangibility, reliability, responsiveness, service quality and its consequences. The study also finds that assurance, and empathy. The results suggest that the perceptions perceptions and measured disconfirmation offer several and expectations of internal customers and internal suppliers advantages over computed disconfirmation (i.e., difference play a major role in recognising the level of internal service quality scores), and that a cross-sectional measurement design for perceived. Niren Sirohi, et.al. (2000), slow growth and intense service quality is preferred to a longitudinal design. The article competition in retail markets in recent years increases the need discusses the implications of these findings for practitioners for retailers to use strategies focused on retaining and attracting and for future research on service quality. Josee Bloemer (1999), the right customers. However, a strategy that is effective in argued that the relationship between perceived service quality acquiring new customers may not be the most effective in and service loyalty is an issue which requires conceptual and retaining current customers. In order to understand the empirical elaboration through replication and extension of effectiveness of activities designed to retain customers, we study the store loyalty intentions of current customers for a multi-store current knowledge. The study focuses on the refinement of a grocery retailer. Using Partial Least Squares, on data averaged scale for measuring service loyalty dimensions and the across at least 100 customers per store for each of about 160 relationships between dimensions of service quality and these stores, we find that service quality is by far the most critical service loyalty dimensions. The results of an empirical study of a determinant of merchandise quality perception. Perceived value large sample of customers from four different service industries for money depends on perceived relative price and sales suggest that four dimensions of service loyalty can be identified: promotion perceptions and to a lesser extent on service quality purchase intentions, word-of-mouth communication; price and merchandise quality perceptions. Rodolfo Vazquez, et. al. sensitivity; and complaining behaviour. Donald J. Shemwell (2000), attempted to clarify and extend the conceptualization (1998), studied and empirically tested a model of relationships and measurement of service quality in the retail environment. among service quality, satisfaction and selected behavioural The review of the retail and service quality literatures and the outcomes. Particular attention was paid to delineating the findings from a qualitative study conducted by the authors reveal cognitive aspects of the service provider-consumer relationship that service quality in retail companies adopting the commercial from the affective, emotive factors. Using doctor-patient format of supermarkets has a four factor structure (physical relationships in Turkey as the study setting, results of a LISREL aspects, reliability, personal interaction and policies). Various analysis suggest that the affective aspects of satisfaction have A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 93 more impact than cognitive factors on patients’ propensity to study sites were evaluated on the basis of mean item scores, continue the relationship. The most critical managerial implication by Discriminant and factor analysis and by multi-dimensional of the study findings is that doctors need to place more emphasis scaling. on the functional (how it is done) aspects of care giving than the technical (what is done) ones. Robert F. Hurley (1998), Objectives Customer satisfaction and service quality measures obtained through consumer surveys invariably have skewed distributions. 1. To Study the Gaps in the services quality of food As such, researchers have questioned the appropriateness of retailers. the popular approach of using the mean rating to summarize such data. The relative validity of the various indexes that can be 2. To scrutinize the impact of independent expectation used to summarize consumers’ service quality ratin is examined. variables on the dependent perception variables. Jillian C. Sweeney, (1997), examined the way in which service quality at the point of purchase influences consumers’ 3. To propose and model the Gaps of food retailers. perceptions of value and willingness to buy. Two alternative theoretically justifiable models were compared. Consumer Hypothesis (H0) perceptions of a specific service encounter were collected from two samples of shoppers who were actively searching for an 1. Single expectation need not influence the single electrical appliance. The results obtained indicated that a perception of customers. salesperson’s knowledge influenced consumer perceptions of product quality, while the manner of the salesperson, although 2. Multiple expectations need not influence the single influencing willingness to buy indirectly through product perception of customers. knowledge also had a direct effect, independent of product evaluation, on willingness to buy. Further, it was found that Data Analysis and Modeling perceptions of service quality during a service encounter To study the GAPs in the service quality of the food retailers the influenced consumers’ willingness to buy more than did researcher prepared a questionnaire based on Dabholkar (1996) perceptions of product quality. Bell J et. al. (1997) used the et.al, where he has included 28 SERVQUAL items classified under critical incident technique to identify and explore dimensions the five dimensions of service quality. These items were included of service quality in food retail operations. Personal interviews to understand the expectations as well as the experiences of generated 792 positive and negative incidents which were then respondents anchored at the Five Point Liker t’s Scale. The categorized into six groups as follows: physical environment, researcher had selected at convenience 80 respondents from mechandise-related, non-core services, interpersonal, process four food retail stores and distributed the questionnaires to 20 and price. The key findings confirm that recent emphasis by respondents in each retail outlet. operators on improving customer service has been effective to a degree. This is apparent in the high level of positive incidents Reliability of Items in the interpersonal group. However, the findings also indicate a relative neglect of the shopping process. This category generates In order to find out the internal consistency of the 28 service by far the greatest number of negative incidents. Nick Johns quality items, the measure of Cronbac’s Alpha was utilised. The (1996) described the development and evaluation of a result of the Cronbac’s Alpha suggested that the overall reliability questionnaire analogous to the SERVQUAL instrument of co-efficient of the service quality of the expectation and Parasuraman, Zeithaml and Berry in order to assess the experience scale was 92.9 percent and 95.3 percent respectively. performance of a contract catering service in relation to its This shows that the service quality items were highly reliable competitors. Although reliability criteria for the instrument were (greater than recommended level of 0.6) and achieved the encouraging, the factor structure identified by previous internal consistency. Similarly, the researcher has also verified researchers was found not to be present in the catering industry. the reliability of the service quality under five different factors for Other considerations such as food and the attitudes of staff the expectations and the experience scale. The following table played a more important part in the meal experience. The nine shows the factor-wise reliability of the service quality items: A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 94 Result of Cronbac’s Alpha Dimensions No. of Items Expectations Experience Physical Aspects 6 0.891 0.922 Personal Interaction 9 0.629 0.841 Reliability 5 0.889 0.813 Problem Solving 3 0.824 0.622 Policy 5 0.791 0.548 Overall 28 0.929 0.953 R e s u l t o f H o t e l l i n g ’s T 2 Te s t Dimensions No. of Items Expectations Experience Physical Aspects 6 32.066* 22.649 Personal Interaction 9 14.701 34.794* Reliability 5 5.714 10.414** Problem Solving 3 1.004 5.098 Policy 5 8.041 10.872** Overall 28 107.290* 130.867* * Significant at 1% level, **Significant at 5% level Equivalence Gap Modeling Hotelling’s, T2 test was utilised to find the difference in the Parasuraman (1983), et.al proposed the famous traditional Gap means among the service quality items for the expectation and equation as the difference between perception and expectation. experience scale. The result of the Hotelling’s T2 Test confirms Mathematically it can be written as that there is a significant difference among the means of various G = P – E ————— (1) service quality items for expectation and experience scale statistically at one percent and five percent level. This shows G – Gap P – Perception E – Expectation that the service quality items differed among each other and they conveyed difference in their meaning. Similarly the researcher Equation (1) for the ith sample of observation as has also verified the Equivalence of Service Quality items under five different factors and the results are as follows: G i = P i – E i ————— (2) Where i = 1 to n In equation (2), the researcher assumed the perception (Pi) ~ For the purpose of modeling the Gaps in the food retail services quality the researcher utilized simple and multiple step-wise n and expectation (Ei) ~ n also they are regression analysis by using SPSS 17.0. At the first stage the independent random variables, then Gap (G i ) ~ n researcher assumed all the variables in the retail service quality dimensions followed the multivariate normal distribution. Based . This is proved by the mathematical on this in the second stage, the gap modeling was proposed. expectation for the sample of observations. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 95 Taking mathematical expectation on both side to equation (2) From (6), when = 0 and = 1, then the equation is reduced we get to traditional gap equation. Here in (6) Gi is not just the difference between the perception and expectation; it is an unobserved E(Gi) = E(Pi) - E(Ei) —— (3) random variable followed a normal distribution, Gi ~ n . Gi is a random error term, unobserved and it is uncorrelated with Where E(G i) = G E(Pi) = P E(Ei) = E E i , E(E iG i) = 0. Equation (6) clearly explains, there exist a functional relationship between the expectation and perception G P E are the mean of the Gap, Perception and Expectation of customers. Expectation of customer is truly influenced their respectively. perception and Gap is formed when their expectation fails to unexplain the variation in the perception. The theory is Take equation (2) and (3), subtract equation and taking mathematically denoted by mathematical expectation on both sides we get. p = f(E) +G Gi - E(Gi) = (P i - E(P i)) – (Ei – E(Ei)) perception = f(Expectation) + Gap [Gi - E(G i)] = [Pi - E(Pi)] + (Ei – E(Ei)) - 2 (Pi - E(Pi) (Ei – E(Ei) 2 2 2 E (P) = + E(E), where E(G)=0 E(Gi - E(Gi))2 = E[Pi - E(Pi)]2 + E(Ei – E(Ei))2 - 2 E(Pi - E(Pi)) (Ei – V(P) = 2 V(E) +V(G) E(Ei)) V(G) = V(P) – 2 V(E) Double Expectation Model —— (4) PY = f(EX1, EX2) + G If Pi and E i are independent, (r = 0), then PYi = + 1 E X1i + 2 EX2i + Gi E(PY) = = + 1 E(EX1) + 2 E(EX2) V(PY) = 1 V(E X1) + V(E X2)+ 2 2 1 2 cov(E X1, EX2)+ V(G) If Pi and Ei are correlated ( r‘“0) then the variance of Gap score V(G) = V(P 2 Y ) - ( 1V(E 2 X1) + 2V(E X2 )+ 2 1 2 cov(EX1, EX2) )) is equal to 2 2 Multiple Expectation Model PY = f(EX1, EX2, E X3,……...... EX n-1, E Xn) +G n PYi = + i E X1i + G i =1 This is the co-variance (or) correlated model of Gap. n n n 2 Single Expectation Model P(PY) = i V(E Xi) + 2 i j Cov (EXi, E Xj) +V (G), i =1 i =1 j =1 n n n 2 V(G) = V(PY) - i V(EXi) + 2 i j Cov (EXi, E Xj). From equation (1), the Gap is denoted as i =1 i =1 j =1 Results of Single Expectation Model Gi= Pi – Ei , i = 1 to n. The table shows the influence of independent expectation Pi = Ei + Gi ——————(5) variables under the dimension Physical Aspects on their respective perception variables. The results of the analysis point Equation (5) is a modified version of famous linear equation of out, if the expectation about the modern equipment and fixtures a straight line in the retail stores change by one unit then their perception Pi = + Ei + Gi ——————(6) goes up by 0.833 units. On the other hand if their expectation A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 96 about the modern equipment and fixtures is nil then their equipment and fixtures explained a variation of more than 75 perception score is equal to 0.562 units. Moreover, the percent in the perception of customers. Moreover, the V (G) regression coefficients 0.562 and 0.833 are statistically significant (0.936) is less than 2V (E) (0.243) which shows the expectation by the t-ratio at one percent level. The R Square is greater than of customers explained maximum variation in their perception. 0.75 which shows the expectation regarding the modern The interpretation is vice versa for the remaining variables. Results of Single Expectation Model I m p a c t o f E x p e c t a t i o n Va r i a b l e s o n P e r c e p t i o n Va r i a b l e s i n P h y s i c a l A s p e c t s Dependent Perception / Independent 2 E x p e c t a t i o n Va r i a b l e V(P) V(E) V(G) Modern Equipment and Fixtures a 0.562* 0.833* 1.179 0.936 0.243 Physical Facilities 0.473* 0.842 1.729 0.866 0.862 Good Looking Shopping Materials 0.465** 0.780* 1.455 0.939 0.516 Attractive and Convenient Public Areas 1.482* 0.517* 1.138 0.414 0.724 Easy Accessibility 0.653** 0.710* 1.107 0.465 0.643 Easy Internal Mobility 1.136* 0.652* 1.147 0.560 0.588 * t – ratio significant at 1% level a R Square > 0.75 ** t – ratio significant at 5% level The ta b l e s h o w s t h e i n f l u e n c e o f i n d e p e n d e n t and 0.731 are statistically significant by the t-ratio at 1 expectation variables under the dimension Reliability on percent level. The R Square is greater than 0.75 which their respective perception variables. The result of the shows the expectation regarding the promising services analysis call attention to, if the expectation about the explained a variation of more than 75 percent in the promising services in the retail stores changes by one perception of retail buyers. Moreover, the V (G) (0.387) unit then their perception goes up by 0.731 units. On is less than 2 V (E) (1.087) which shows the expectation the other hand, if their expectation about the promising of customers explained maximum variation in their services is nil then their perception score is equal to perception. The interpretation is vice versa for the 0.874 units. Moreover, the regression coefficients 0.874 remaining variables. Impact of Expectation Variables on Perception Variables in Reliability Dependent Perception / Independent 2 Expectation Variable V(P) V(E) V(G) Promising Services a 0.874* 0.731* 1.474 1.087 0.387 Time Promising Services 1.186* 0.560* 1.081 0.407 0.674 Doing it Right 1.380* 0.623* 1.305 0.455 0.850 Supply of Right Products 2.185* 0.334** 2.057 0.151 1.906 Er ror Free Transactions 0.767** 0.733* 1.368 0.547 0.820 * t – ratio significant at 1% level a R Square > 0.75 ** t – ratio significant at 5% level A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 97 The table illustrates the influence of independent expectation coefficients 0.579 and 1.088 are statistically significant by the variables under the dimension Personal Interaction on their t-ratio at one percent level. The R Square is less than 0.75 which respective perception variables. The result of the analysis shows the expectation regarding the employees’ knowledge indicates, if the expectation about the employees’ knowledge explained a variation of less than 75 percent in the perception in the retail stores changes by one unit then their perception of customers. Moreover, the V (G) (1.067) is greater than 2V goes up by 0.579 units. On the other hand if their expectation (E) (0.387) which shows the expectation of customers about the modern equipment and fixtures is nil then their explained minimum variation in their perception. The perception score is equal to 1.088 units. Moreover, the regression interpretation is vice versa for the remaining variables. I m p a c t o f E x p e c t a t i o n Va r i a b l e s o n P e r c e p t i o n Va r i a b l e s i n Personal Interaction Dependent Perception / Independent 2 E x p e c t a t i o n Va r i a b l e V(P) V ( E ) V(G) Employees Knowledge 1.088* 0.579* 1.454 0.387 1.067 Employees Confidential Behaviour 1.537* 0.452* 1.390 0.357 1.033 S e c u r i t y i n Tr a n s a c t i o n s 3.123* 0.107 2.960 0.023 2.937 Performing Prompt Servicesa 0.327 0.924* 1.062 0.824 0.238 Performing Exact Services 0.840* 0.710* 1.525 0.648 0.876 Immediate Response to Customer Request 0.794* 0.691* 1.387 0.678 0.709 I n d i v i d u a l C a r e Ta k i n g 3.120* 0.007 1.043 0.001 1.042 Cour teousness of Employees 1.027* 0.601* 1.033 0.328 0.705 Cour teous Communication 1.466* 0.568* 1.178 0.381 0.797 * t – ratio significant at 1% level a R Square > 0.75 ** t – ratio significant at 5% level The table visualises the influence of independent expectation 0.701 are statistically significant by the t-ratio at one percent variables under the dimension Problem Solving on their respective level. The R Square is less than 0.75 which shows the expectation perception variables. The result of the analysis indicates, if the regarding the returns and exchanges explained a variation of expectation about the returns and exchanges in the retail stores less than 75 percent in the perception of customers. Moreover, changes by one unit then their perception goes up by 0.701 the V (G) (0.420) is greater than 2V (E) (0.849) which shows units. On the other hand if their expectation about the returns the expectation of customers explained maximum variation in and exchanges is nil then their perception score is equal to their perception. The interpretation is vice versa for the remaining 0.846 units. Moreover, the regression coefficients 0.846 and variables. I m p a c t o f E x p e c t a t i o n Va r i a b l e s o n P e r c e p t i o n Va r i a b l e s i n P r o b l e m S o l v i n g Dependent Perception / Independent Expectation V Vaa r i a b l e V(P) 2 V(E) V(G) Returns and Exchanges 0.846* 0.701* 1.268 0.849 0.420 Sincerity in Problem Solving 1.764* 0.423* 0.903 0.205 0.698 Handling Customer Compliance 1.816* 0.495* 1.079 0.245 0.834 * t – ratio significant at 1% level a R Square > 0.75 ** t – ratio significant at 5% level A Quarterly Journal SCMS Journal of Indian Management , April - June, 2 010. 98 The table exhibits the influence of independent expectation 0.145 are statistically significant by the t-ratio at one percent variables under the dimension Policy on their respective level. The R Square is less than 0.75 which shows the expectation perception variables. The result of the analysis signifies, if the regarding the offering quality products explained a variation of expectation about the offering quality products in the retail stores less than 75 percent in the perception of customers. Moreover, changes by one unit then their perception goes up by 0.145 the V (G) (0.987) is greater than 2V (E) (0.025) which shows units. On the other hand if their expectation about the offering the expectation of customers explained maximum variation in quality products is nil then their perception score is equal to their perception. The interpretation is vice versa for the remaining 2.883 units. Moreover, the regression coefficients 2.883 and variables. I m p a c t o f E x p e c t a t i o n Va r i a b l e s o n P e r c e p t i o n Va r i a b l e s i n P o l i c y Dependent Perception / Independent 2 E x p e c t a t i o n Va r i a b l e V(P) V(E) V(G) Offering Quality Products 2.883* 0.145 1.012 0.025 0.987 Convenient Parking Facilities 1.160* 0.632* 1.094 0.435 0.660 Convenient Operating Hours 1.076* 0.609* 1.568 0.433 1.135 Acceptance of Credit Cards 1.673* 0.416* 1.235 0.244 0.991 Offering Membership Cards 3.724* -0.052 2.711 0.005 2.706 * t – ratio significant at 1% level a R Square > 0.75 ** t – ratio significant at 5% level Above table envisages the dimension-wise results of the multiple performing exact services (0.32) and performing prompt services expectation models under the physical aspects. It is inferred (0.22) are statistically significant at one percent and five percent that the expectation of customers about the modern equipment level. Like-wise, the expectation variables under the five and fixtures changes by one unit there will be an increase of dimensions explained more than 75 percent of variation in the 0.62 units in the perception of customers when other expectation dependent perception variables such as modern equipment variables in physical aspects and personal interaction were kept and fixtures, good looking shopping materials and easy internal constant. Moreover, the t-ratio was significant for the regression mobility respectively. The inferences are vice versa for the coefficients of the expectation variables such as modern remaining dependent perception variables under dimension of equipment and fixtures (0.62), physical facilities (-0.22), physical aspects. Results of Multiple Expectation Model Contribution of Independent Expectation Variables to Perception Variables- Physical Aspects Dependent Best Set of Independent Expectation Variables – Dimension Wise Perception Variables Physical Aspects Reliability Personal Interaction Problem Solving Policy Modern Modern Equipment - Performing Exact - - Equipment and and Fixtures(0.62)* Services(0.32)* Fixtures a Physical Facilities Performing Prompt (-0.22)** Services(0.22)** A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 99 Physical Time Promising Performing Exact Facilities - Services(0.58)* Services(0.24)* - - Promising Cour teous Commu- Services(0.28)** nication (-0.21)** Good Looking Modern Equipment Shopping and Fixtures(0.24)** - - - Offering Materialsa Quality Easy Accessibility Products (0.21)** (0.22)** Easy Internal Mobility(0.23)* Good Looking Shopping Materials (0.21)** Attractive and Attractive and Convenient Convenient Public Convenient Public Operating Areas Areas(0.30)* - - - Hours Easy Internal (0.24)* Mobility(0.45)* Easy Easy Employees - Offering Accessibility Accessibility(0.38)* - Knowledge Membership (0.34)* Cards(0.18)* Easy Attractive and Time Promising Performing Prompt Offering Internal Convenient Public Services(0.16) Services(0.29)* Membership Mobility a Areas(0.22)* - Cards(0.11) Easy Internal Mobility (0.24)* * t- ratio significant at 1% level a R-Square >0.75 ** t- ratio significant at 5% level Variance Components of Perception, Expectation and Gap – Physical Aspect Dependent Perception V(P) Explained Variance by best set V(G) Variables of Independent Expectation Variables Modern Equipment and Fixtures 1.179 1.007 0.172 Physical Facilities 1.729 1.287 0.442 Good Looking Shopping Materials 1.455 1.183 0.272 Attractive & Public convenient Public Areas 1.138 0.746 0.393 Easy Accessibility 1.107 0.668 0.440 Easy Internal Mobility 1.147 0.896 0.251 A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 100 The table shows the variance of the variables in physical set of independent exception variables under five aspects, explained variance of best set independent dimensions were greater than the variance of GAP, this expectation variables and variance of GAP. It is worth noted shows the expectation variables under the five dimension that the total variance of the dependent perception elaborates maximum variance in the dependent perception variables was divided into two additive components which variables. So, the researcher concludes the superlative set explained variance and unexplained variance of (G). The of independent expectation variables keenly predicted the researcher found that the explained variance by the finest perception variables in physical aspects. Results of Multiple Expectation Model Contribution of Independent Expectation Variables to Perception Variables-Reliability Dependent Best Set of Independent Expectation Variables – Dimension Wise Perception Variables Physical Aspects Reliability Personal Interaction Problem Policy Solving Promising Modern Equipment Time Promising - - Convenient Services a and Fixtures services(0.41)* Parking (0.18)** Supply of Right Facilities Easy Internal Products(0.26)* (0.14)** Mobility(0.19)* Time Error Free Employees promising Transactions Confidential services - (0.53)* Behaviour(0.28)* - - Doing it right Modern Equipment Doing it Cour teousness and Fixtures(0.53)* Right(0.45)* of Employees (-0.30)** - - Supply of Employees Right Products - - Confidential Behaviour(0.50)* - - Individual Caretaking(0.07)* Error free Modern Employees Transactions Equipment and Knowledge(0.50)* Fixtures(0.29)* - Security in - - Transactions(0.19)* * t- ratio significant at 1% level a R-Square >0.75 ** t- ratio significant at 5% level The table exhibits the dimension-wise results of the multiple internal mobility (0.19), time promising services (0.41), supply of expectation models under the reliability. It is inferred that the right products (0.26) and convenient parking facilities (0.14) are expectation of customers about the promising services changes statistically significant at one percent and five percent level. Like- by one unit there will be an increase of 0.53 units in the perception wise, the expectation variables under the five dimension explained of customers when other expectation variables in physical aspects, more than 75 percent of variation in the dependent perception reliability and policy were kept constant. Moreover, the t-ratio variables such as promising services. The inferences are vice versa was significant for the regression coefficients of the expectation for the remaining dependent perception variables under variables such as modern equipment and fixtures (0.18), easy dimension of reliability. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 101 Variance Components of Perception, Expectation and Gap – Reliability Dependent Perception Explained Variance by Variables V(P) best set of Independent V(G) Expectation Variables Promising Services 1.474 1.294 0.180 Time Promising Services 1.081 0.606 0.476 Doing it Right 1.305 0.678 0.626 Supply of Right Products 2.057 0.654 1.403 Error Free Transactions 1.368 0.968 0.399 Above table explains the variance of the variables in Reliability, exception variables under five dimensions were greater than explained variance of best set independent expectation the variance of GAP, this shows the expectation variables variables and variance of GAP. It is worth noted that the total under the five dimension elaborates maximum variance in variance of the dependent perception variables was divided the dependent perception variables. So, the researcher into two additive components they are explained variance concludes the superlative set of independent expectation and unexplained variance of (G). The researcher found that variables keenly predicted the perception variables in the explained variance by the finest set of independent Reliability. Results of Multiple Expectation Model Contribution of Independent Expectation Variables to Perception Variables- Personal Interaction Dependent Best Set of Independent Expectation Variables – Dimension Wise Perception Physical Personal Problem Policy Variables Aspects Reliability Interaction Solving Employees Time Promising Performing Prompt Knowledge a - Services(0.35)* Services(0.37)* Doing it Returns and Right(0.25)* Exchanges(0.27)* - Cour teous Communication (-0.21)** Employees Modern Equipment Time Promising Employees Convenient Confidential and Fixtures(0.42)* Services(0.36)* Knowledge(0.43)* - Operating behaviour a Hours (-0.25)** Security in Attractive and Promising Employees Transactions Convenient Services Confidential Public Areas (-1.09)* Behaviour (0.43)* (0.38)* - - Physical Time Promising Performing Facilities(0.65)* Services(0.72)** Exact Services (-0.82)* A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 102 Performing - - Performing Prompt Prompt Services Services a (0.92)* - - Performing Good Looking Promising Immediate Exact Shopping Materials Services(0.55)* Response to Services (-0.63)* Customer Request(0.84)* - - Immediate Modern Cour teousnes s Response to Equipment of Employees Offering Customer and Fixtures (0.33)* quality Request (0.37)* - - products (0.31)* Individual Care Attractive and Taking Convenient Public Areas(0.42)* - Employees Convenient Knowledge Operating (-0.22)** - Hours(0.46)* Easy Internal Mobility(0.43)* Convenient Parking Facilities (-0.17)** Cour teousness Convenient of Employees Operating Hours (0.28)* Supply of Right Cour teous Products Communication (-0.20)** (0.33)* - - Attractive and Convenient Public Areas(0.19)** Easy Accessibility (0.34)* Cour teous Promising Security in Returns and Acceptance Communication - Services Transactions Exchanges of Credit (-0.43)* (0.23)* (0.87)* Cards (0.15)** * t- ratio significant at 1% level a R-Square >0.75 ** t- ratio significant at 5% level The table visualizes the dimension-wise results of the multiple (0.25), courteous communication (-0.21) and returns and expectation models under the Personal Interaction. It is inferred exchanges (0.27) are statistically significant at one percent and that the expectation of patrons about the employees’ knowledge five percent level. Moreover, the expectation variables under changes by one unit there will be an increase of 0.37 units in the five dimensions explained more than 75 percent of variation the perception of customers when other expectation variables in the dependent perception variables such as Employees in reliability, personal interaction and problem solving were kept Knowledge, Employees Confidential Behaviour and Performing constant. Moreover, the t-ratio was significant for the regression Prompt Services respectively. The inferences are vice versa for coefficients of the expectation variables such as time promising the remaining dependent perception variables under element services (0.35), performing prompt services (0.37) doing it right of Personal Interaction. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 103 Variance Components of Perception, Expectation and Gap – Personal Interaction Dependent Perception Variables V(P) Explained Variance by best V(G) set of Independent Expectation Variables Employees Knowledge 1.454 1.119 0.335 Employees Confidential Behaviour 1.390 1.065 0.326 Security in Transactions 2.960 1.457 1.503 Performing Prompt Services 1.062 0.824 0.238 Performing Exact Services 1.525 0.986 0.538 Immediate Response to Customer Request 1.387 0.930 0.457 Individual Care Taking 1.043 0.736 0.307 Cour teousness of Employees 1.033 0.605 0.428 Cour teous Communication 1.178 0.874 0.304 The table explains the variance of the variables in Personal independent exception variables under five dimensions were Interaction, explained variance of best set independent greater than the variance of GAP, this shows the expectation expectation variables and variance of GAP. It is worth noted variables under the five dimension elaborates maximum that the total variance of the dependent perception variables variance in the dependent perception variables. So, the was divided into two additive components they are explained researcher concludes the superlative set of independent variance and unexplained variance of (G). The researcher expectation variables keenly predicted the perception found that the explained variance by the finest set of variables in Personal Interaction. Results of Multiple Expectation Model C o n t r i b u t i o n o f I n d e p e n d e n t E x p e c t a t i o n Va r i a b l e s t o P e r c e p t i o n Va r i a b l e s - P r o b l e m S o l v i n g Dependent Best Set of Independent Expectation Variables – Dimension-wise Perception Variables Physical Reliability Personal Problem Aspects Interaction Solving Policy Returns and Modern Equip- - Cour teousness Sincerity - Exchanges ment and Fixtures of Employees in Problem a (0.25)* (0.20)* Solving(0.29)* Immediate Returns and Response to Exchanges Customer Request (0.16)** (0.15)** Sincerity - Promising Employees Sincerity in Convenient in Problem Services Confidential Problem Solving Parking Facili- Solving (-0.35)* Behaviour(0.18)** (0.59)* ties(0.26)* A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 104 Handling Supply of Right - Cour teousness Sincerity in - Customer Products(0.35)* of Employees Problem Solving Compliance (-0.37)* (0.31)** Easy Internal Mobility(0.22)** * t- ratio significant at 1% level a R-Square >0.75 ** t- ratio significant at 5% level The table picturises the factor-wise results of the multiple employees (0.20), immediate response to customer request expectations model under the Problem Solving. It is inferred (0.15), sincerity in problem solving (0.29) and returns and that the expectation of customers about the returns and exchanges (0.16) are statistically significant at one percent and exchanges by one unit there will be an increase of 0.29 units in five percent level. Like-wise, the expectation variables under the the perception of customers when other expectation variables five dimensions explained more than 75 percent of variation in in physical aspects, personal interaction and problem solving the dependent perception variables such as returns and were kept constant. Moreover, the t-ratio was significant for the exchanges. The inferences are vice versa for the remaining regression coefficients of the expectation variables such as dependent perception variables under dimension of Problem modern equipment and fixtures (0.25), cour teousness of Solving. Va r i a n c e C o m p o n e n t s o f P e r c e p t i o n , E x p e c t a t i o n a n d G a p – P r o b l e m S o l v i n g Dependent Perception V(P) Explained Variance by V(G) Va r i a b l e s best set of Independent Expectation Variables Returns and Exchanges 1.268 1.086 0.182 Sincerity in Problem Solving 0.903 0.394 0.509 Handling Customer Compliance 1.079 0.501 0.578 The table explains the variance of the variables in Problem set of independent exception variables under five dimensions Solving, explained variance of best set independent were greater than the variance of GAP. This is evidence for the expectation variables and variance of GAP. It is significantly expectation variable under the five aspects elaborates maximum noted that the total variance of the dependent perception variance in the dependent perception variables. So, the variables was divided into two additive components they are researcher concludes the superlative set of independent explained variance and unexplained variance of (G). The expectation variables ardently predicted the perception investigator originate that the explained variance by the optimum variables in Problem Solving. Results of Multiple Expectation Model Contribution of Independent Expectation Variables to Perception Variables- Policy Dependent Best Set of Independent Expectation Variables – Dimension-wise Perception Variables Physical Aspects Reliability Personal Interaction Problem Solving Policy A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 105 Offering - - - - Acceptance Quality of Credit Products Cards(0.36)** Convenient - - - Handling Convenient Parking Customer Operating Facilities Compliance (0.27)* Hours(0.31)* Offering Membership Cards (0.17)** Convenient Parking Facilities(0.27)* Convenient Modern Returns and Operating Equipment Exchanges(0.30)* - Hours and Fixtures(0.42)* - - Easy Accessibility (0.30)** Acceptance Physical Facilities Time Promising Cour teous - Convenient of Credit Cards (0.30)* Services(0.35)* Communication Parking (0.17)** Facilities(0.17)** Offering Attractive and Promising - Handling Offering Membership Convenient Services Customer Quality Cards Public Areas (-1.00)* Compliance Products (0.58)* (0.56)* (-0.62)* Time Promising Services(0.77)* * t- ratio significant at 1% level a R-Square >0.75 ** t- ratio significant at 5% level The table put on view the factor-wise results of the multiple cards and offering membership cards. The inferences are vice expectation models under the Policy. It is inferred that the versa for the remaining dependent perception variables under expectation of customers about the offering quality products dimension of Policy. changes by one unit there will be an increase of 0.36 units in the perception of customers when other expectation variable in The table explains the variance of the variables in Policy, explained policy were kept constant. Moreover, the t-ratio was significant variance of best set independent expectation variables and for the regression coefficients of the expectation variables such variance of GAP. It is worth noted that the total variance of the as acceptance of credit cards (0.36) is statistically significant at dependent perception variables was divided into two additive five percent level. Like-wise, the expectation variables under the components they are explained variance and unexplained five dimensions explained less than 75 percent of variation in variance of (G). The researcher found that the explained variance the dependent perception variables such as offering quality by the finest set of independent exception variables under five products, convenient operating hours, acceptance of credit dimensions were greater than the variance of GAP. This illustrates A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 106 Va r i a n c e C o m p o n e n t s o f P e r c e p t i o n , E x p e c t a t i o n a n d G a p – P o l i c y Dependent Perception V(P) Explained Variance V(G) Va r i a b l e s by best set of Independent Expectation Va r i a b l e s Offering Quality Products 1.012 0.193 0.819 Convenient Parking Facilities 1.094 0.708 0.387 Convenient Operating Hours 1.568 1.083 0.485 Acceptance of Credit Cards 1.235 0.833 0.402 Offering Membership Cards 2.711 1.250 1.461 the expectation variables under the five facet elaborates maximum Reliability variance in the dependent perception variables. So, the researcher concludes the superlative set of independent Reliability is the most vital dimension of the retail stores in expectation variables intensely predicted the perception attracting the customers. Based on this facet the customers variables in Policy. expected more about the easy internal mobility, supply of right products, convenient parking facilities, error free transactions, Discussion employee confidential behaviour etc. The prospects anticipation motivated the time promising services. The authorities of the In this research article we analysed the five dimensions of the retail formats should concentrate to improve the time promising retail services quality of retail stores namely Physical Aspects, services offered by the retail stores. While improving the retail Reliability, Personal Interaction and Policy. We found the authorities should also give importance to target on the error perception of shoppers in retail formats was not only influenced free transactions and employee confidential behaviour. The by single expectations in their minds but the perception was managers must also focus on the other services in order to trigged by multiple expectations about different aspects of augment the effectiveness of the retail stores. the retail stores. Let we enter into the discussion dimensions- wise. Personal Interaction Physical Aspects Personal Interaction is the most essential dimension of the retail Physical Aspects is the most important dimension of the retail stores in attracting the customers. According to this dimension stores in attracting the existing shoppers as well as the new the customers expected more about the time promising services, shoppers. Under this dimension the shoppers expected more returns and exchanges, prompt services, employee’s about the modern equipment and fixtures, exact services knowledge, attractive and convenient public areas, physical and prompt services. Their expectations purely influenced facilities. The customer’s keenness motivated the employee’s the modern equipment and fixtures. The managers of the knowledge and other services. The powers that be of the retail retail stores should concentrate to enhance the modern formats should concentrate to improve the time promising equipment and fixtures. While enhancing the managers services and attractive convenient public areas offered by the should also give importance to trigger the exact service and retail stores. While improving the retailers should also give value prompt services. The retail authorities must concentrate on to target on the physical facilities and employee confidential the other services in order to augment the retail service behaviour. They must also focus on the other services in order effectiveness. to supplement the efficacy of the retail stores. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 107 Problem Solving Bell, J. Gilbert D. and Lockwood A. “Service Quality in Food Retailing Operations: A Critical Incident Analysis.” The Problem Solving is the most imperative aspect of the retail stores International Review of Retail, Distribution and in attracting the retail shoppers. Based on this element the Consumer Research. Vol.7, (1997): 405-423. customers expected more about the cour teousness of employees, immediate response to customer request, sincerity Donald, J. Shemwell, Ugur Yavas, and Zeynep Bilgin. “Customer- in problem solving, returns and exchanges, convenient parking Service Provider Relationships: An Empirical Test of A facilities. The customers hope motivated the courteousness of Model of Service Quality, Satisfaction and Relationship- employees. The powers that be of the retail formats should Oriented Outcomes.” International Journal of Service concentrate to improve the employee’s confidential behaviour Industry Management . Vol.9, (1998): 155-168. offered by the retail stores. While improving the retail authorities Dirk Morschett, Bernhard Swoboda and Hanna Schramm-Klein should also give value to target on the modern equipment and “Competitive Strategies in Retailing—an Investigation fixtures. The retail managers must also spotlight on the other of the Applicability of Porter’s Framework for Food services in order to complement the effectiveness of the retail Retailers.” Journal of Retailing and Consumer Services. stores. Volume 13, Issue 4, July 2006, (2005): 275-287. Policy Dinesh, Kumar Gauri, “Understanding the Determinants of Retail Strategy: An Empirical Analysis.” Journal of Policy is one of the service quality dimensions of the retail Retailing . Vol.84, Issue 3, September 2008, stores in order to magnetize the existing shoppers as well as (2008): 256-267. the new shoppers. Under this facet the shoppers expected more about the acceptance of credit cards, handling customer Frederick A. Frost, Mukesh Kumar. “INTSERVQUAL – An Internal compliance, offering membership cards, convenient parking Adaptation of the GAP Model in a Large Service facilities, returns and exchanges. Their potential purely Organisation.” Journal of Services Marketing. Vol.14, influenced the handling customer compliance. The human (2000): 358-377. resources of the retail stores should contemplate to enhance Gordon Fullerton. “The Service Quality-Loyalty Relationship in the acceptance of credit cards. While improving the services Retail Services: Does Commitment Matter?” Journal of quality the managers should also give importance to elicit the handling customer compliance. The retail manpower must Retailing and Consumer Services. Vol.12, Page (2005): concentrate on the other dimensions in order to augment 99-111. the retail service effectiveness. Josee Bloemer, Ko de Ruyter, Martin Wetzels. “Linking Perceived Service Quality and Service Loyalty: A Multi-Dimensional Keywords: Gap Modeling, Food Retailing, Single Expectation, Perspective.” European Journal of Marketing. Vol.33, Multiple Expectation Model and Retail Service Quality. Issue: 11/12, (1999): 1082-1106. References Jillian C. Sweeney, Geoffrey N. Soutar and Lester W. Johnson, Ann, Marie Fiore and Jihyun, Kim. “An Integrative Framework “Retail Ser vice Quality and Perceived Value A Capturing Experiential and Utilitarian Shopping Comparison of Two Models.” Journal of Retailing and Experience.” International Journal of Retail and Consumer Services. Vol.4, (1997): 39-48. Distribution Management. Vol.35, (2007): 421-442. Lun Hou and Xiaowo Tang. “Gap Model for Dual Customer Anne, Mägi and Claes-Robert Julander. “Perceived Service Quality Values.” Tsinghua Science and Technology . Vol.13, and Customer Satisfaction in a Store Performance (2008): 395-399. Framework an Empirical Study of Swedish Grocery Retailers.” Journal of Retailing and Consumer Services. Michael K. Brady, J. Joseph Cronin and Richard R. Brand. Vol.3, (2002): 33-41. “Performance-Only Measurement of Service Quality: A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 108 A Replication and Extension.” Journal of Business Prem Vrat, S.G. Deshmukh and Nitin Seth. “Service Quality Models: Research. (2002): 55, 17-31. a Review.” International Journal of Quality of Reliability Michel Laroche, Lefa Teng, Richard Michon and Jean-Charles Management. Vol.22, (2005): 913-949. Chebat, “Incorporating Service Quality Into Consumer Richard A . Spreng and Rober t D. Mackoy. “An Empirical Mall Shopping Decision Making: A Comparison Examination of a Model of Perceived Service Quality Between English and French Canadian Consumers.” and Satisfaction.” Journal of Retailing. Vol.72, (1996): Journal of Services Marketing. Vol.19, (2005): 153- 201-214. 163. Niren Sirohi, Edward W. McLaughlin and Dick R. Wittink. “A Model Rodolfo Vázquez, Ignacio A. Rodríguez-Del Bosque, Ana Ma of Consumer Perception and Store Loyalty Intentions Díaz and Agustín V. Ruiz. “Ser vice Quality in for a Supermarket Retailer.” Journal of Retailing. Vol.74, Supermarket Retailing: Identifying Critical Service (2000): 223-245. Experiences.” Journal of Retailing and Consumer Services. Vol.8, (2001): 1-14. Nick Johns and Phil Tyas. “Use of Service Quality Gap Theory to Differentiate between Foodservice Outlets.” The Robert F. Hurley and Hooman Estelami. “Alternative Indeses fro Service Industries Journal. Volume 16, Issue 3 July Monitoring Customer Perceptions of Service Quality: (1996): 321–346. Acomparative Evaluation in a Retail Context.” Journal of the Academy of Marketing Science. Vol. 26, (1998): Nor Khalidah Abu, Universiti Tun Abdul Razak, Malaysia. “Service 209-221. Quality Dimensions: A Study on Various Sizes of Grocery Retailers.” A Conceptual Paper. 2004. Sanjay K.Jain and Garima, Gupta. “Measuring Service Quality: Olivier Furrer, Ben Shaw-Ching Liu and D. Dudharshan. “The SERVQUAL vs. SERVPERF Scales.” Vikalpa . Vol.29. Relationships between Culture and Service Quality (2004): No.2. Perception.” Journal of Service Research. Vol.2, No.4, (2000): 355-371. Tomas Palaima, Banytë, Jûratë; (2006), “Marketing Service Relationships: the Relative Role of Service Quality,” Parasuraman. A., Valarie A. Zeithaml, And Leonard L. Berry. Engineering Economics, (1 (46)/2006). “SERVQUAL: A Multiple Item Scale for Measuring Consumer Perceptions of Service Quality.” Journal of Instrument Retailing. 64 (Spring) (1988): 12-40. Physical Aspects Parasuraman, Zeithaml and Berry. “A Conceptual Model of Service Quality and Its Implications for Future Research.” Journal 1. This store has modern looking equipment and fixtures. of Marketing. Fall (1985): 41-50. Pratibha A. Dabholkar, C. David Shepherd and Dayle I. Thorpe. 2. The physical facilities at this store are visually appealing “A Comprehensive Framework for Service Quality: An 3. Materials associated with this store’s service (such as Investigation of Critical Conceptual and Measurement shopping bags, catalogs, Or statements) are visually Issues through a Longitudinal Study.” Journal of appealing. Retailing. Vol.76, (2000): 139-173. 4. This store is clean attractive, and convenient public areas Pratibha A. Dabholkar, Dayle I. Thorpe, Joseph O. Rentz, “A (rest rooms, fitting Rooms.) Measure of Service Quality for Retail Stores: Scale 5. The store layout at this store makes is easy for customers Development and Validation.” Journal of the Academy to find what they need. of Marketing Science. Winter 1996; 24, No.1, (1996): 6. The store layout at this store makes it easy for customers 3-16. to move around in the store. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 109 Reliability 18. This store gives customers individual attention. 19. Employees in this store are consistently courteous with 7. When this store promises to do something by a certain customers time, it will do so. 20. Employees of this store treat customers courteously 8. This store provides its services at the time it promises on the telephone. to do so 9. This store performs the service right the first time Problem Solving 10. This store has merchandise available when the customers want it. 11. This store insists on error-free sales transactions and 21. This store willingly handles returns and exchanges. records. 22. When a customer has a problem, this store shows a sincere interest in solving it. Personal Interaction 23. Employees of this store are able to handle customer complaints directly and immediately. 12. Employees in this store have the knowledge to answer customer ’s questions. Policy 13. The behaviour of employees in this store instills confidence in customers. 24. This store offers high quality merchandise. 14. Customers feel safe in their transactions with this store. 25. This store provides plenty of convenient parking for 15. Employees in this store give prompt service to customers customers. 16. Employees in this store tell customers exactly when 26. This store has operating hours convenient to all their services will be performed. customers. 17. Employees in this store are never too busy to respond 27. This store accepts most major credit cards. to customer’s requests. 28. Offering membership cards. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 110 Ownership Structure in Iran: Firms’ Responsibility Vahideh Hoseini Nodeh and Aisha M.Sheriff This study examines the effects of ownership structure on corporate A Structuring profitability of Automobile firms in Iran through the period 2005 to 2007. b The ownership structure is considered in terms of (i) controlling s ownership,(ii)managerial ownership, including managerial financial firm ownership and managerial-non-financial firm ownership. Using accounting profitability: Return t on Assets (ROA) and Sales to Assets (S\A) as measure of profitability, the overall findings r confirm that there is a positive association between controlling ownership and firms' a profitability. The firms with controlling ownership are more profitable than those with non- c controlling ownership in Automobile firms in Iran. There is a positive relationship between t managerial ownership and firms' profitability, and firms with managerial-financial firm ownership are more profitable than those with managerial-non-financial firm ownership. M onday, December 28, 2009 Berle and Means (1932) about the company than either board members of in their path-breaking study expected an inverse shareholders. And as in any principle-agent problem, correlation between the diffuseness of share- managers can use their superior information to extract rents, holdings and corporate performance. This analytical to the detrimental effect of shareholder value. Moreover, large framework is based upon compensation for board 12345678901234567890123456789012123456789012345678901234567890121 the view that shareholder 12345678901234567890123456789012123456789012345678901234567890121 service may have actually 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 diffusion makes it difficult 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 acted as a disincentive for 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 for them to act collectively 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 active management moni- 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 and hence to influence 12345678901234567890123456789012123456789012345678901234567890121 toring, given management 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 management to any great 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 control over the director 12345678901234567890123456789012123456789012345678901234567890121 extent. Can the Board of 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 appointment and retention 12345678901234567890123456789012123456789012345678901234567890121 Directors help rescue this 12345678901234567890123456789012123456789012345678901234567890121 process. Numerous legal 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 situation? In some cases 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 reforms have been pro- 12345678901234567890123456789012123456789012345678901234567890121 they might not have much 12345678901234567890123456789012123456789012345678901234567890121 posed for the development 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 influence and they also 12345678901234567890123456789012123456789012345678901234567890121 M s . Va h i d e h H o s e i n i N o d e h, Re s e a r c h S c h o l a r, U n i v e r s i t y o f 12345678901234567890123456789012123456789012345678901234567890121 of strengthened board fidu- 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 Mysore, Mysore, Email: [email protected] 12345678901234567890123456789012123456789012345678901234567890121 suffer from the same 12345678901234567890123456789012123456789012345678901234567890121 ciary duties or the stimu- 12345678901234567890123456789012123456789012345678901234567890121 information problems that 12345678901234567890123456789012123456789012345678901234567890121 lation of effective institut- 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 D r. A i s h a M . S h e r i f f , P r o f e s s o r, D e p a r t m e n t o f B u s i n e s s 12345678901234567890123456789012123456789012345678901234567890121 shareholders have that is, 12345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121 ional shareholder activism. Administration, University of Mysore, Mysore, Email: 12345678901234567890123456789012123456789012345678901234567890121 management typically has 12345678901234567890123456789012123456789012345678901234567890121 This is the theoretical under 12345678901234567890123456789012123456789012345678901234567890121 [email protected] 12345678901234567890123456789012123456789012345678901234567890121 much more information pinning underlying the A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 111 current move towards equity-based compensation for maximizing corporate profit. Therefore, Berle and Means corporate directors so as to provide them with a powerful (1932) suggest that the relationship between ownership personal incentive to exercise effective oversight (Bhagat et concentration and performance should be a negative one. al . 1999). Chen (2001) examines the relationship between ownership Demsetz (1983) and Demsetz and Lehn (1985), among others, structure and firm value in the case of China. The results show have documented that, when examining the effect that that there is a strong positive relationship between ownership structure has on firm profitability, the endogeneity concentrated ownership and corporate value (Tobin’s Q). A of ownership structure should be accounted for. The work positive relationship between corporate value and domestic by Demsetz and Villalonga (2001) is motivated by the need institutional shareholders is also repor ted. Moreover, he to re-examine the relationship between ownership structure mentions that managerial share holders are positively and state and firm performance taking into account corporate value shareholders are negatively related to firm value respectively and insiders’ ownership. However, their sample includes (Chen, 2001). relatively few firms and they do not take into account the possible endogeneity of both ownership as well as In addition, Wiwattanakantung (2001) tests the impact of performance. ownership structure on firm performance of Thai non -financial firms. The study argues that there is no evidence to suppor t The most diffused firms are financial services companies (49.9 that controlling shareholders extract corporate assets away percent), construction companies (48.3 percent) and health from the firm for their own benefits. That is, firms with services companies (39.1 percent). The less diffused firms controlling shareholders have higher profitability (as measured are the media sector (14.5 percent) and public sector by the return on assets and sales-to-asset) than those with companies (19.2 percent). Dispersion is measured as the non-controlling shareholders. The results also report that firms percentage of shares owned by shareholders that hold stakes with family and foreign-controlling shareholders, as well as less than one and at least five percent respectively. firms with more than one controlling shareholder, have higher profitability than do firms with non -controlling shareholders. In par ticular, they propose the fraction of shares owned by outside shareholders and by management should be McConnell and Servaes (1990) investigate the effects of measured separately because they reflect different groups of managerial ownership on the firm’s value. In their study, instead persons who may have different interests. of fixing the level of managerial ownership they adopt managerial shareholding and managerial shareholding square As there is little empirical evidence as yet to be found on the as ownership variables. The results repor t that a positive significance of the relationship between ownership structure relationship exists between managerial ownership holding at and firm’s profitability in the Automobile industry in Iran, this 0 percent to approximately 50 percent of shareholding and study attempts to fill this gap and therefore examines the firm performance. Beyond 50 percent, a negative relationship effects of controlling ownership and managerial ownership between them is found. McConnell and Servaes therefore on firm’s profitability. suggest that the impact of managerial ownership on the firm’s value is non-linear. Short and Keasy (1999) also investigate Literature Review whether there is a non-linear relationship between managerial ownership and firm performance, based on return on Berle and Means (1932) are among the first to consider the shareholders’ equity and market value, in the case of UK. relationship between a firm’s ownership structure and its Shor t and Keasy also suggest that the per for mance (as performance. They assert that as the diffuseness of ownership measured by return on shareholders’ equity) is positively increases, shareholders become powerless to control related to managerial shareholding in the 0 percent to 15.58 professional managers. Fur ther, they argue that, given the percent range, negatively related in the 15.58 percent to interests of management and shareholders are not generally 41.84 percent range, and becoming positively related again aligned, corporate resources are not used efficiently in beyond 41.48 percent . In the market return (as measured by A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 112 Tobin’ s Q) regression, they suggest that Tobin’ s Q is sample firms’ financial repor ts. A simple reason of choosing positively related to managerial shareholding in the 0 percent the ROA is because it is well known that the ROA is one of to 12.99 percent range, negatively related in the 12.99 percent the most useful measures of the firm’s efficiency and to 41.99 percent range, and turning positive again when profitability. In terms of the S/A ratio it could probably reflect managerial shareholding exceeds 41.99 percent . the effectiveness of management in utilizing the assets of the firm to the sales revenues and sales also are less affected Demsetz and Villalonga (2001) consider both the from manipulation by management. The return on assets ratio endogeneity problem and the different dimensions of (ROA) is calculated by dividing earnings before interests and ownership structures. By estimating an equation model for income taxes (EBIT) by average total assets. The sales-asset the US firms, they find that ownership is negatively related to ratio is measured from the total sales divided by average total debt ratio, unsystematic risk and perfor mance. However, assets. performance (defined as Tobin’s Q or the accounting profit rate) is not found to be influenced by ownership [defined as Ownership Variables Measures managerial ownership (CEO, board of directors, top management) or ownership by the five largest shareholders]. Ownership structure in this study will be categorized as (1) Welch (2003) applies the Demsetz and Villalonga (2001) controlling ownership, (2) managerial ownership, including model to Australian listed firms. Using a single equation model, managerial-financial firm ownership and managerial-non- she also considers a generalized non-linear model financial firm ownership. specification for the equation of firm performance similar to that used by Morck et al. (1988). She finds limited evidence Controlling Ownership Variable of a non-linear relationship between managerial share ownership and firm performance. Villalonga and Amit (2004) The variable of controlling ownership (Ctlown) is defined as examine the impact of family ownership, control and the percentage of Shares, at least 25 percent, held by the management on firm value. They conclude that family largest shareholder. The dummy variable of Ctlown is set to ownership creates value only when it is combined with be one for firm controlled by controlling shareholders, and cer tain forms of control and management. Finally, in a study zero for those controlled by non-controlling shareholders. of Taiwan’s electronics industry, Sheu and Yang (2005) find that insider ownership (executives, board members and large Managerial Ownership Variables shareholders) has no influence on total factor productivity. The variable of managerial ownership (MOWN) is defined as Data and Methodology the percentage of shares held by members of the board of directors. The dummy variable of MOWN is set to be one Data Sample for firms with managerial ownership, and zero for firms with non-managerial ownership. This study aims to differentiate The data set for this study is determined by analyzing the firm profitability that may be influenced by managerial- Automobile firms in Iran through the period 2005 to 2007. financial firm ownership and managerial-non-financial The sample size compromises all of automobile firms listed ownership. The variable of managerial-financial ownership on the Tehran Stock Exchange (TSE) which includes 28 firms. (MOWN*FINANCIAL) is defined as the percentage of shares The main source of data used in this study is derived from held by managerial shareholder(s) that have financial firm annual financial statements that are obtained from the Tehran shareholders involved. The dummy variable of Stock Exchange. MOWN*FINANCIAL is set to be one for the firms with managerial-financial firm ownership, and zero for the firms Profitability Variables Measure with non-managerial ownership. The variable of managerial- non-financial ownership (MOWN*NONFINANCIAL) is defined Regarding the profitability measures, this study obtains the as the percentage of shares held by managerial shareholder(s) return on assets (ROA) and the sales-asset (S/A) from the that do not have financial firm shareholders involved. The A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 113 dummy variable of MOWN*NONFINANCIAL is set to be one AGE is measured by the logarithm of the number of years for the firms with managerial-non-financial firm ownership, since the firms were set up. and zero for the firms with non-managerial ownership. This study therefore attempts to analyse the model as follows: Ownership Structure and Firm Profitability Control Variables Measures Y = + 1Ownership Structure i,t + 2RISK i,t+ 3E/P i,t + This study will employ a number of control variables such as 0 4 DEBT i,t + 5SIZE i,t + (Profitability) 6AGE i,t + i,t (1) total risk (RISK), (2) earnings-price ratio (E/P), (3) debt (DEBT), (4) firm’s size (SIZE), and (5) age of firm (AGE). Empirical Results The control variables are measured as follows: Effects of Controlling Ownership on Firm Profitability RISK is measured from the standard deviation of returns. E/P is measured by dividing earnings per share at the The effects of controlling ownership on firm profitability are end of the year by outstanding share prices. captured by the Ctlown variable (indicating the percentage DEBT is measured by dividing total liability by total asset. of shares, at least 25 percent, held by the largest SIZE is measured by the logarithm of sales. shareholders). Table No. 1 Independent Dependent Variables Variables ROA S/A ROA S/A (a) (b) (c) (d) RISK 0.004 -0.5*** 0.014** 0.45** (0.13) (-2.9) (0.15) -(-2.8) E/P 0.07*** -0.24 0.014** -0.03 (4.15) (-1.65) (2.4) (-0.87) DEBT -0.16*** -0.26*** -0.16*** -0.25*** (-10.05) (-3.0) (-9.95) (-2.82) SIZE 0.05*** 0.51*** 0.049*** 0.50*** (7.39) (13.71) (7.28) (13.47) Ctlown 0.070*** 0.59*** 0.018*** 0.19*** (2.84) (4.34) (2.58) (4.84) Intercept -0.0057 -0.91*** 0.0031 -0.85*** (-0.25) (-7.47) (0.15) (-7.2) R-squared 0.18 0.20 0.18 0.20 F-statistic 27.75 44.92 27.42 46.04 P-Value 0.000 0.000 0.000 0.000 A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 114 Table 1, columns (a) and (b) present the effects of controlling The Effects of Controlling Ownership on Profitability ownership on profitability. The results show that the coefficients of Ctlown are positive and significant to the ROA In this table, columns (a) and (b) present the results of the effects of controlling ownership on profitability (ROA and S/ and S/A at the one percent level. The difference between A). Columns (c) and (d) present the results of the the profitability of firms with controlling ownership and firms comparisons between the profitability of firms with controlling with non-controlling ownership is repor ted in Table 1, ownership and non-controlling ownership. columns (c) and (d).The results show that the coefficient of Ctlown are positively related to both ROA and S/A at the one Influence of Managerial Ownership on Firm percent level. Profitability This study suggests that the controlling ownership has a The influence of managerial ownership on its corporate strong incentive to increase corporate profitability based profitability is examined. It is captured by the Mown variable, which represents the percentage of shares held by members on accounting measures in Iran. As well, firms with of the board of directors. controlling ownership significantly are more profitable than those with non-controlling ownership. These results show Based on profitability measures, the effects of managerial that controlling shareholders do not seem to expropriate ownership on firm performance are presented in Table 2, firm’s benefits but have high incentive to increase firm columns (a) and (b). The results illustrate that the coefficients profitability. of Mown are positive and significant to ROA and the S/A at Table No.2 Independent D e p e n d e n t Va r i a b l e s Va r i a b l e s ROA S/A ROA S/A (a) (b) (c) (d) RISK -0.01 -0.39* -0.01 -0.28** (-2.1) (-1.94) (-0.38) (-2.29) E/P 0.0002 -0.036 0.2*** -0.004 (0.34) (-0.8) (3.1) (1.33) DEBT -0.18*** -0.25** -0.16*** -0.27*** (-8.63) (-2.19) (-9.07) (-2.75) SIZE 0.055*** 0.52*** 0.05*** 0.52*** (5.60) (9.69) (7.06) (13.17) MOWN 0.11*** 0.42** -0.0028 0.026 (3.45) (2.43) (-0.33) (0.57) Intercept -0.025 -0.80 0.02 -0.76*** (-0.77) (-4.48) (0.89) (-5.64) R-squared 0.16 0.15 0.11 0.17 F-statistic 21.35 21.00 21.75 36.11 P-Value 0.000 0.000 0.000 0.00 * Indicate significant at the 10% level. * * Indicate significance at the 5% level. * * * Indicate significance at the 1% level. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 115 the one percent and five percent levels respectively. The on the profitability. It is found that the coefficients of differentiated between the profitability of firms with managerial MOWN*FINANCIAL are positive and significant to the ROA ownership and non-managerial ownership is showed in Table and the S/A at the five percent level. The results in column (c) 2, column (c) and (d). It is found that the coefficient of a n d ( d ) , h o w e v e r, s h o w t h a t t h e c o e f f i c i e n t s o f Mown are significant to the ROA and S/A respectively. MOWN*NONFINANCIAL are positive, but not significant to the profitability measures. Comparing the profitability of firms The Effects of Managerial Ownership on Profitability with these two ownership categories and firms with non- managerial ownership, Table 3, columns (e), and (f), show In this table, column (a) and (b), present the results of the that the coefficient of MOWN*NONFINANCIAL is negative effects of managerial ownership on profitability (ROA and S/ and significant at the 10 percent level to the ROA, while those A). Column (c) and (d) present the results of the comparisons of MOWN*FINANCIAL are insignificant to the profitability. between the profitability of firms with managerial ownership and non-managerial ownership. The t statistic is repor ted in The Effects of Managerial-Financial Ownership, parentheses. Managerial-Non-Financial Ownership on Profitability Table 3, column (a) and (b), present the effects of managerial- In this table, column (a) to (d), present the results of the financial ownership and managerial-non-financial ownership effects of managerial-financial ownership, managerial-non- Table No.3 Independent Variables Dependent Variables ROA S/A ROA S/A ROA S/A (a) (b) (c) (d) (e) (f) RISK -0.05** 0.4* -0.017 -0.09 -0.01 -0.28** (-2.1) -(-2.01) (-0.18) (-0.35) (-0.48) (-2.33) E/P 0.001 -0.031 0.1*** 0.1 0.021*** -0.005 (0.34) (-1.07) (2.62) (0.88) (3.29) (-0.2) DEBT -0.24*** -0.5*** -0.062 -0.13 -0.14*** -0.27*** (-11.4) (-2.5) (-0.75) (0.57) (-7.5) (-2.67) SIZE 0.06*** 0.61*** 0.048 0.4*** 0.043*** 0.52*** (6.62) (7.69) (1.5) (4.26) (6.06) (13.03) MOWN*FINANCIAL 0.072** 0.51** 0.0086 0.06 (2.31) (1.80) (1.02) (1.16) MOWN*NONFINANCIAL 0.13 0.83 -0.018* -0.022 (0.58) (1.08) (-1.85) (-1.13) Intercept 0.012 -1.1*** -0.12 -0.71** 0.020 -0.76*** (0.91) (-3.5) (-1.12) (-2.28) (0.93) (-5.62) R-squared 0.37 0.15 0.1 0.12 0.13 0.18 F-statistic 26.3 10.56 5.31 6.88 18.53 26.94 P-Value 0.000 0.000 0.000 0.000 0.000 0.000 * Indicate significant at the 10% level. * * Indicate significance at the 5% level. * * * Indicate significance at the 1% level. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 116 financial ownership, on profitability (ROA and S/A). Corporate Performance and Management Turnover.” Columns (e) and (f) present the results of the comparisons The Business Lawyer . 54, (1999): 885-919. between the profitability of firms with managerial financial ownership, managerial-non-financial ownership and non- Chen, J. “Ownership Structure as Corporate Governance managerial ownership. The t -statistic is repor ted in Mechanism: Evidence from Chinese Listed parentheses. Companies.” Economics of Planning. 34, (2001): 53-72. Summary and Conclusion Craswell, A .T., S.L. Taylor and R .A . Saywell. “Ownership This study examines the effects of ownership structure on Structure and Corporate Performance: Australian firm’s profitability based on the data sample from Iranian Evidence.” Pacific-Basin Finance Journal . 5 (3), Automobile listed firms during the period 2005-2007. The (1997): 301-323. paper is primarily motivated by a lack of evidence regarding the relationship between the ownership structure and firm DeAngelo, H. and L. DeAngelo. “Managerial Ownership of profitability in Iranian firms. The ownership structure is classified Voting Rights: A Study of Public Corporations with as (i) controlling ownership,(ii) managerial ownership, Dual Classes of Common Stock.” Journal of Financial including managerial financial firm ownership and managerial- Economics. 14, (1985): 33-69. non-financial firm ownership. Demsetz, H. and K. Lehn. “The Structure of Corporate Firm’s profitability measures are represented by Return on Ownership: Cause and Consequences.” Journal of Assets and Sales to Assets. Based on the analysis, the results Political Economy . 93 (No.6), (1985): 1155-1177. of the relationship between ownership structure and firm profitability in the case of Iranian Automobile firms reveals Demsetz, H. and B. Villalonga. “Ownership Structure and that: Controlling ownership has a strong positive relationship Corporate Performance.” Journal of Corporate to the profitability and firms with controlling ownership have Finance . 7, (2001): 209-233 higher profitability than those with non-controlling ownership The results suggest that the greater the degree to which shares Fama, E.F. and M.C. Jensen. “Separation of Ownership and are concentrated in the hands of outside or inside Control.” Journal of Law and Economics . XXVI, shareholders, the more effectively management behaviour is (1983b): 301-325. monitored and disciplined, thus resulting in better profitability. Han, C.K. and D.Y. Suk. “The Effect of Ownership Structure Secondly, there is a positive relationship between managerial on Firm Performance: Additional Evidence.” Review ownership and firm’s profitability. In comparison, firms with of Financial Economics . 7, No. 2, (1998): 143-155. managerial ownership are more profitable than those with non-managerial ownership. Holdernes, C. G. and D. Sheehan. “The Role of Majority This study suggests that the different types of managerial Shareholders in Publicly Held Corporations: An ownership effect firm’s profitability in different ways, but firms Exploratory Analysis.” Journal of Financial with managerial–financial firm ownership are more profitable Economics . 20, (1988): 317-346. than those with managerial–non–financial firm ownership. Jensen, M.H. “Agency Costs of Free Cash Flow, Corporate References Finance, and Takeovers.” American Economic Review. 76 (2), (1986): 323-329. Berle, A. and G. Means. “The Modern Corporation and Private Proper ty.” Macmillan Publishing. New York: 1932. Jensen, M.C. “A Theory of the Firm: Governance, Residual Claims, and Organizational Forms.” Harvard University Bhagat, S., Carey, D. and C. Elson. “Director Ownership, Press. Cambridge: 2000. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 117 Jensen, M.C. and W.H. Meckling. “Theor y of the Fir m: Shleifer, A. and R. Vishny. “A Survey of Corporate Governance.” Managerial Behaviour, Agency Cost, and Ownership The Journal of Finance . LII, No.2, (1997): 737-782. Structure.” Journal of Financial Economics. 3, (1976): 305-360. Shor t, H. and K. Keasey. “Managerial Ownership and the Performance of Firm: Evidence from the Kesner, I. “Directors’ Stock Ownership and Organizational UK.” Journal of Corporate Finance . 5, (1999): Per for mance: An Investigation of For tune 500 79-101. Companies.” Journal of Management . 13 (3), (1987): 499-507. Smith, B.F. and B. Amoako-Adu. “Management Succession and Financial Perfor mance of Family Controlled McConnell, J. and H. Servaes. “Additional Evidence on Equity Firms.” Journal of Corporate Finance . 5, (1999): 341- Ownership and Corporate Value.” Journal of Financial 368. Economics . 27, (1990): 595-612. Stulz, R. “Managerial Control of Voting Tights: Financing Policies Monsen, R.S. Chiu and C. David. “The Effect of Separation of and the Market for Corporate Control.” Journal of Ownership and Control on the Performance of the Financial Economics . 20 (January/March), (1988): Large Firm.” Quar terly Journal of Economics . 82 (3) 25-54. June, (1968): 435-451. Tehran Stock Exchange. (2005-2007).” Annual Repor ts. Morck, R., A. Shleifer and R. Vishny. “Management Ownership and Market Valuation: An Empirical Analysis.” Journal Villalonga, B. and R . Amit. “How Do Family Ownership, of Financial Economics . 20, (1988): 293-315. Control and Management Affect Fir m Value?” Murali, R . and J. B. Welch. “Agent, Owner, Control and Jour nal of Financial Economics (for thcoming). Performance.” Journal of Business Finance and 2004. Accounting . 16 (3) Summer, (1989): 385-398. Welch, E. “The Relationship between Ownership Structure Oswald, S.L. and J.S. Jahera. “The Influence of Ownership on and Performance in Listed Australian Companies.” Performance: An Empirical Study.” Strategic Australian Journal of Management . 28, (2003): 287- Management Journal. 12, (1991): 321-326. 305. Sheu, H.J. and C.Y. Yang, “Insider Ownership Structure and W i w a t t a n a k a n t u n g , Y. “ C o n t r o l l i n g S h a r e h o l d e r s a n d Firm Performance: A Productivity Perspective Study C o r p o r a t e Va l u e : E v i d e n c e f r o m T h a i l a n d . ” i n Ta i w a n ’ s E l e c t r o n i c s I n d u s t r y. ” C o r p o r a t e Pacific-Basin Finance Journal . 9 (4), (2001): Governance. 13, (2005): 326-337. 323-362. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 118 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 Skimming 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 and Scanning Book Title : Retail Franchising Author : Manish V. Sidhpuria Edition : 2009 ISBN-13 : 978-0-07-014503-0 Pages : 180 Publisher : Tata McGraw-Hills Publg. Co. Ltd., New Delhi. R etail Franchising has been the most successful “Titan” to “Levis,” the author has provided enough examples model in the Indian retail industry since the mid in the form of interesting snippets to keep the reader 80’s. In addition to providing low cost entry into engrossed as well as informed. high ambience international levels of retailing, franchising has also encouraged more and more entrepreneurs to try Personally I found the Par t 1 of the book most useful for my out the franchising model in various ver ticals from retailing class. The sections on “Franchising in India” and sugar cane juice and dahi–vada “Internationalisation of Franchise to exclusive watches and fashion 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 operations by US Franchisors” 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 accessories. 123456789012345678901234567890121234567890123456789 were extremely useful for getting 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 a better understanding of the 123456789012345678901234567890121234567890123456789 This book is an ideal reference 123456789012345678901234567890121234567890123456789 current Indian franchising scene 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 book for the student and teacher 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 which is dominated by American 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 of retail management as well as 123456789012345678901234567890121234567890123456789 players such as McDonalds, KFC, 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 for any person interested in 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 Nike and Levis, among others. 123456789012345678901234567890121234567890123456789 franchising as a retail format. 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 Manish Sidhpuria has taken extra 123456789012345678901234567890121234567890123456789 The second par t of the book 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 effor ts to provide sufficient 123456789012345678901234567890121234567890123456789 Reviewed by Prof.Sreekumar Pillai, Head of deals with “developing and 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 market information on the current 123456789012345678901234567890121234567890123456789 D e p a r t m e n t o f R e t a i l M a r k e t i n g a n d evaluating a franchise system” and 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 Merchandising, SCMS-COCHIN, Pratap Indian retail industry following the 123456789012345678901234567890121234567890123456789 123456789012345678901234567890121234567890123456789 understandingly has lesser Indian 123456789012345678901234567890121234567890123456789 N a g a r, M u t t o m , A l u v a - 6 8 3 1 0 6 , C o c h i n , 123456789012345678901234567890121234567890123456789 franchising format. From “Jumbo 123456789012345678901234567890121234567890123456789 examples but I would still rate the 123456789012345678901234567890121234567890123456789 E m a i l : s r e e k u m a r @ s c m s g r o u p . org 123456789012345678901234567890121234567890123456789 king” to “McDonalds” and from section as useful and informative. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 119 The author has chosen to tread the familiar and much used book. All the Indian cases have been based on topics of path of retail theory which is in fact useful in a text book on value and current interest. I am determined to use a couple franchising for a student of retail management, since it saves of these cases for the coming trimester when we will be time and the effor t of referring a couple of text books teaching Retail Franchising to the students entering retail normally used. specialization courses. The summary provided at the end of each section along with the questions, makes life easier I would rate the Par t 3 of the book closely behind the first for the facilitator who is in a hurry. par t in ter ms of utility. The par t has been well researched and presented. The sections on “Preparing for franchising” So how would I rate this book as a facilitator of Retail and “Investigating and evaluating a Franchise” have been management classes? I have always been happy to pick done with care and conviction. Information provided as up any book on Retailing but I have not been always examples in tabular form has made the section interesting for tunate to put it down with the same sentiment. as well as self-explanatory. However in this case I am happy to say that what Manish V. Sidhpuria has provided in this book has created As a teacher of retail management I have been trying to sufficient enthusiasm and trust in this publication and I Indianise my core retail classes and it has given me immense am pleased to express here my appreciation of this joy and satisfaction to see five cases in the Indian context book and the fact that I will be recommending the out of the total of six cases presented in the last par t of this same for my students. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 120 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 Skimming 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 and Scanning Book Title : Managerial Accounting Authors : Ray H. Garrison, Eric W. Noreen and Peter C. Brewer Edition : Eleventh ISBN 13 : 978-0-07-070040-6 Pages : 863 Publisher : Tata McGraw – Hill Education Pvt. Ltd., New Delhi. E very business organization, irrespective of its size and Financial Managers deal with the actual and probable nature of operations, has to have managers – people financial environment of business, requiring such financial responsible of doing things right. They carry out three information that is profoundly deep and innately relevant. very basic activities: planning, directing and controlling. 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Accounting and sive scope of the subject of A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 121 managerial accounting. Since it is manager-oriented, any overview into what the chapter deals with. Margins are content on managerial accounting should preferably discuss extensively made use of for two purposes: One, to what managers do, what information managers require, what introduce references to technology-assisted student tools managers use, and the meaning and relevance of the supplements, where students can access quick results of analysis, ideally set against a real life-like corporate reinforcements through slide shows, video presentations, setting. And that is what Garrison, Noreen and Brewer deliver interactive numerical exercises and links to other information through the Eleventh Edition of their book Managerial on the World Wide Web; Two, to list out the lear ning Accounting. objectives attached to its relevant content. Exhibits and numerical explanations are in plenty, its visibility being No doubt, the outer look of the volume is quite impressive. positively added by grey-coloured background. Mini-Cases It is even more so, in the inner side. The book star ts with a are inter-twined into the theoretical discussions, with very informative Student Supplement, talking about topic separate sub-titles. Limited use of photographs to add tackler, homework manager, online lear ning centre, study wealth to appearance and visibility is remarkably decisive. guide, student lecture aid, excel templates etc. The content Each chapter ends with a summary, review numerical, page details chapter-wise, the coverage of topics, with each glossary, questions, exercises, cases and group and internet chapter sub-titled into major and minor sub-topics. The exercises. book is divided into seventeen chapters, ending with appendices dealing with finance-related topics relating to a The delivery of content is coherent and logical. Each term wider perspective. Preliminary chapters exhaustively deal with is defined and introduced, with the chapter flowing to very minute detailing of cost concepts, behaviour and deeper topics, gathering momentum with appropriately classifications like job-order costing, process costing, sequenced sub-headings. Theoretical discussions are activity-based costing, variable costing and standard costing. for thwith followed by exhibits and numerical examples, These contents provide a perfect setting to the introduction allowing better and easier comprehension. In most chapters, of the concepts of Cost-Volume Profit Analysis, Break-Even the theoretical deliberations include a sequel under a minor Analysis, Balanced Score Card, Budgeting, Overhead title Managerial Accounting in Action, where the theory is Analysis, Profit Planning and Segment Repor ting. The put under a corporate context, with personal discussions mainstay follows, with avid discussion on Capital Budgeting exploring fur ther avenues in a ver y simple and diluted Decisions. Cash Flow Analysis and Financial Statement context. Analysis are the topics with which the book concludes. Appendices deal with concepts relating to price elasticity, The book Managerial Accounting is perfect nourishment for and profitability analysis in a broader perspective of business serious management graduates aspiring for careers in decision-making. finance. It cer tainly is not for the novice and the desultor y. Beginners might feel let off by its very erudite and scholarly Laudable is the format in which each chapter is constructed. style. For those with iron-mettle, this book delivers what Chapter star ts with lear ning objectives being listed out. A they aspire for from a finance text book. For those without, snippet follows, taken from real-life corporate background, there are others in plenty. But management – financial, in ser ving as a Point-to -Ponder, which really sweeps an par ticular - is not meant for the feeble. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 122 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 Skimming 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 and Scanning Book Title : Marketing Author : Michael J.Etzel, Bruce J.Walker, Wiliam J.Stantion and Ajay Pandit Edition : 14th 2009 Price : Rs.450/- ISBN-13 : 978-0-07-015156-7 Pages : 880 Publisher : Tata McGraw-Hills Publg. Co. Ltd., New Delhi. T he 14 th edition of Marketing authored by Michael J. chapter. Also the companies featured in the opening chapter Etzel, William Stanton, Br uce Walker and Ajay Pandit, cases are revisited at the end of the chapter in the ‘more has ample coverage on the fundamental marketing about feature.’ There are eight additional cases in the Indian concepts, strategies, and techni-ques that serve as the context that will help the readers in applying the concepts c o r n e r -s t o n e s o f m a r k e t i n g to conditions in India. 1234567890123456789012345678901212345678901234567890 programmes. 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Perspectives from the 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 technological advances affect 1234567890123456789012345678901212345678901234567890 business world, direct from the 1234567890123456789012345678901212345678901234567890 business in ways such as people 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 practi-tioners and indirect by 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 and organizations communicate. 1234567890123456789012345678901212345678901234567890 examining periodicals and trade 1234567890123456789012345678901212345678901234567890 Another very significant trend 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 journals have made this book rich 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 covered in this book is about R e v i e w e d b y M s . B i n d u K . N a m b i a r, A s s i s t a n t 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 in information. It is evident by the 1234567890123456789012345678901212345678901234567890 P r o f e s s o r - M a r k e t i n g , S C M 1234567890123456789012345678901212345678901234567890S - C O C H I N , P r a t a p internationalization of business; 1234567890123456789012345678901212345678901234567890 opening cases introduced before 1234567890123456789012345678901212345678901234567890 N a g a r, M u t t o m , A l u v a - 6 8 3 1 0 6 , C o c h i n , E m a i l : how corporations are now thinking 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 b i n d h u k n a m b i a r @ s c m s g r o u p . org each chapter that highlights the 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 and acting globally in selecting key concepts discussed in the suppliers and seeking customers. A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 123 The topics are organized around seven themes that are belief that marketing can and should be applied to every logically built from the fundamental concepts, strategies and situation. techniques through the major tasks associated with marketing to the strategic role of marketing in an organization. The Other notewor thy features of this book include the apt themes are nature and scope of marketing, identifying and reflection of the internet’s role using examples, web selecting markets, product, price, distribution, promotion addresses and vignettes. The chapter opening and par t and managing the marketing effor t. ending cases, within chapter boxes and interactive marketing exercises at the end of each chapter are useful In the book there two perspectives that need special instruments for stimulating active learning through project, mention there is physical environment reflected in topics classroom discussions and debates. When compared with such as global war ming, air and water quality, and waste the previous editions this text has been shor tened without disposal, and influence marketing with regards to the use reducing the number of topics covered. of natural resources, proliferation of products and the efficiency of how products are distributed. There is also Finally, this book has come as a package that will not only a greater interest in ethical and socially responsible help the students to prepare themselves for a challenging, behaviour by exhibiting concerns on health and nutrition, dynamic and exciting future but also providing the product safety, adver tising claims, brand protection and instructors with practical material that can be integrated understandable pricing. These ideas fur ther concrete the into the course. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 124 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 Skimming 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 and Scanning Book Title : Strategic Management Text and Cases Author : Gregory G. Dess, G.T. Lumpkin, and Alan B. Eisner Edition : Third - 2009 ISBN-13 : 978-0-07-067740-1 Pages : 984 Publisher : Tata McGraw-Hill Hill Education Pvt. Ltd., New Delhi. A study of strategic management is an interesting Par t 1 involves Strategic Analysis. Chapter one has the bases one as it can make a struggling firm become a of strategic management along with discussion on highflying one. Given the many oppor tunities and stakeholder analysis and chapter two discusses the dynamic challenges faced by organisation in the global environment, nature of industries building on the work of Anita McGahan ‘incremental’ decision making has dealing with evolutionary traje- given way to managing orga- 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 ctories of industries based on two 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 nisations ‘strategically.’ This has 1234567890123456789012345678901212345678901234567890 threats of obsolescence. The 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 ensured long term success to 1234567890123456789012345678901212345678901234567890 chapter three on internal analysis 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 includes a discussion on balanced organisations. 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 scorecard and preparation of 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 strategy map. Chapter four is on The book Strategic Management 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 analysis of intellectual assets Te x t a n d C a s e s a u t h o r e d b y 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 incorporates a discussion on e- 1234567890123456789012345678901212345678901234567890 Gregory G. Dess, G.T. Lumpkin and 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 teams, diverse workforce and the Alan B. Eisner, is the third edition 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 impor tance of both human capital by the same authors. The present 1234567890123456789012345678901212345678901234567890 R e v i e w e d b y D r. S u s a n A b r a h a m , A s s i s t a n t 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 and social capital. edition carries many new features P r o f e s s o r, S C M S S c h o o l o f Te c h n o l o g y a n d 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 M a n a g e m e n t ( S S T M ) , P r a t a p N a g a r, M u t t o m , 1234567890123456789012345678901212345678901234567890 along with the existing ones from 1234567890123456789012345678901212345678901234567890 Aluva-683106, Cochin, E-mail: susan 1234567890123456789012345678901212345678901234567890 Part two examines Strategic Formu- 1234567890123456789012345678901212345678901234567890 the earlier edition. The book has 1234567890123456789012345678901212345678901234567890 a b r a h a m @ s c m s g r o u p . org 1234567890123456789012345678901212345678901234567890 lation which discusses business- 1234567890123456789012345678901212345678901234567890 four par ts. level strategy in chapter five with A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 125 focus on developing competitive strategies. Corporate level activities of a firm. Second, 10 of the 13 opening mini cases strategy formulation is discussed in chapter six with a focus are new. These cases are meant to lay a firm foundation of the on consolidation effor ts. The role of managerial conceit is need to understand to be discussed in the chapter in the discussed in real options analysis. The potential benefits and minds of the reader. Third, each chapter is laid out to add pitfalls of off-shoring as part of formulation of international value and create an enhanced learning experience. Each strategy are covered in chapter seven. The disruptive impact chapter begins with an overview and learning objectives and also the opportunities created by internet and digital followed by an opening case, questions / exercises at the technologies are described in chapter eight. end of the chapter. Four th, short examples from business practice to illustrate every concept and more detailed Par t 3 discusses Strategic Implementation. This part has five examples to explain key points. Fifth, inclusion of 110 Strategy chapters with focus mainly on corporate governance in an Spotlights illustrates key points of the concept. Sixth, international perspective (chapter nine), the dilemma between application of each concept to star t-up firms and smaller oppor tunities and str ucture leading to the formation of businesses is justified. Seventh, inclusion of cases from The ‘ambidextrous’ organisations (chapter ten), the role of Harvard Business School and The Harvard Business Review Emotional Intelligence of leaders in today ’s organisations, reinforces the text. Overall, the third edition of Strategic ethics and learning organisations (chapter eleven), the Management Text and Cases is written in a simple and readable application of blue ocean strategy in fostering a viable manner illustrated by exhibits, mini cases, examples and innovation strategy (chapter twelve) and the role of strategic application exercises. alliances of young and small firms (chapter thirteen). The book is a valuable one for students of Business Par t 4 involves Case Analysis. This par t has an outstanding Administration at the Post Graduate level. For the instructors, collection of 41 case studies dealing with various industry this book provides immense help through supplementary segments. There are short, medium length and long case materials for class preparation and delivery. studies that deal with the success stories and failures of these companies. These cases also provide an understanding Among the authors, Gregory G. Dess is a Chair Professor at regarding the pitfalls in not using a strategic framework in University of Texas at Dallas. G.T. Lumpkin is Associate managing these enterprises to the readers. Professor of Management and Entrepreneurship at the University of Illinois at Chicago. Alan B. Eisner is Associate There are certain additional features in the third edition as Professor of Management and Graduate Management compared to the earlier editions. First, chapters are arranged Programme Chair at the Lubin School of Business, Pace from traditional concepts to the most modern strategic University. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 126 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 Skimming 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 1234567890123456789012345678901212345678901234567890123456789012123456789012345 and Scanning Book Title : Fundamentals of Investment Management Author : Geoffrey A. Hirt and Stanley B.Block Edition : Eighth - 2009 ISBN-13 : 978-0-07-067739-5 Pages : 710 Publisher : Tata McGraw-Hills Publishing- Co. Ltd., New Delhi. I Investment management is the professional management nuances of the current financial markets, instruments in place of various financial instruments like securities, assets etc. and tools available for the evaluation. to meet specified investment goals for the benefit of the investor/s. It is a large global The book attempts to provide a industry responsible for managing 1234567890123456789012345678901212345678901234567890 broad spectrum of investment 1234567890123456789012345678901212345678901234567890 of billions of dollars and many of 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 management concepts and 1234567890123456789012345678901212345678901234567890 the world’s large companies are at 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 principles, divided into 22 chapters 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 least in part investment managers 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 covering inter alia security markets, 1234567890123456789012345678901212345678901234567890 and employ millions of staff and 1234567890123456789012345678901212345678901234567890 derivative products, por tfolio 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 create billions in revenue. 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 management and financial state- 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 ment analysis. The added attraction 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 As a corollar y to today ’s fast 1234567890123456789012345678901212345678901234567890 of the book is inclusion of 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 changing technology driven world, 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 examples to facilitate easy under- 1234567890123456789012345678901212345678901234567890 financial markets also have 1234567890123456789012345678901212345678901234567890 standing of the concepts and to T h i s b o o k w a s r e v i e w e d b y M r. P. S u d h a k a r a 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 undergone unprecedented changes. 1234567890123456789012345678901212345678901234567890 M e n o n , a C h a r t e r e d A c c o u n t 1234567890123456789012345678901212345678901234567890a n t h a v i n g l o n g drive home key factors. 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 industrial experience. He retired from the To be successful an investment 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 s e r v i c e s o f FA C T L t d . , a s G e n e r a l M a n a g e r 1234567890123456789012345678901212345678901234567890 manager, be it for oneself or as a 1234567890123456789012345678901212345678901234567890 The book deals with the financial 1234567890123456789012345678901212345678901234567890 (Marketing). He has also worked in TCC Ltd. 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 professional, need to have a as Director (Finance), Email: [email protected] 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 market in USA as the authors are reasonably good knowledge of the professionals from USA . The A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 127 economic policy and activity seen discussed in this book Chapter 22 is on ‘measuring risks and returns of por tfolio are those of the Federal Govt. However, barring a few managers.’ No detailed discussion is seen on the techniques examples & data, regulatory provisions and statutory codes, available for risk audit and analysis and also on how to use most of the principles and concepts discussed are having them before each investment decision. Any investment universal application par ticularly in the contemporary global decision can be catastrophic unless sound risk analysis tools are applied and risk assessed before the investment. This market. chapter could have been made more serious by including some real life examples also, which may be in plenty in the The discussion questions given at the end of each recent past. chapter enable an avid learner to ensure adequate assimilation of the techniques discussed in each Despite the above, this book would be useful for those chapter. The glossar y and idex presented in the last prospective investors or students to understand the pages would serve as a quick reference guide. However basics of investment management. This book would the authors do not seem to have thought of char ting also serve to know the oppor tunities and financial comparison of the merits, demerits and risks of each products available in the financial landscape, to instrument available for investment, which would have understand the financial statements of an organisation served to highlight the points to be focussed before and assess its financial health before taking an taking investment decisions. investment decision. A Quarterly Journal SCMS Journal of Indian Management , April - June, 2010. 128 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 Skimming 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456 and Scanning Book Title : New Venture Creation Author : Jeffry A.Timmons and Stephen Spinelli Edition : Seventh - 2009 ISBN-13 : 978-0-07-067738-8 Pages : 658 Publisher : Tata McGraw-Hills Publishing- Co. Ltd., New Delhi. N ew Venture Creation is an apt title for a book on “experience in the field, rooted in the real world application Entrepreneurship, that too, for one authored by and refined in the classroom.” two eminent personalities, each with his own proven track record in the field of Entrepreneurship Education. The book is divided into five parts: Par t I deals with the (This is what of the former students of Dr. Timmons has to say Entrepreneurial Mind and the Entrepreneurial Society, in the about the latter ’s lectures on Entrepreneurship: “When going context of globalization. It touches upon aspects such as to his classes, I couldn’t wait to get leadership, Entrepreneurial traits and 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 there; and when I got there, I didn’t 1234567890123456789012345678901212345678901234567890 strategy formulation. At the end of 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 Chapter I, there is a detailed exercise ever want to leave!” Dr.Spinelli has 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 been defined as a “Pracademic” in 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 which will enable a prospective 1234567890123456789012345678901212345678901234567890 E n t r e p r e n e u r s h i p : a b u s i n e s s 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 e n t r e -p r e n e u r t o f o r m u l a t e a 1234567890123456789012345678901212345678901234567890 personal strategy. Chapter II touches practitioner turned academic). 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 upon venture capital, philanthropy 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 As the authors rightly claim the book 1234567890123456789012345678901212345678901234567890 and ‘women and youth’ in business. 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 forms a basis for curriculum for a 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 course on Entrepreneurship at the 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 Part II deals with the Entrepreneurial 1234567890123456789012345678901212345678901234567890 MBA level. It addresses the 1234567890123456789012345678901212345678901234567890 Reviewed by Prof.K.J.Paulose, 1234567890123456789012345678901212345678901234567890 Dean, Process, starting with identifying/ 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 M a n a g e m e n t S t u d i e s , S C M S - C O C H I N , P ratap creating/seizing/screening oppor- challenges of uncer tainties and 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 N a g a r, M u t t o m , A l u v a - 6 8 3 1 0 6 , C o c h i n , opportunities thrown up by the 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 tunities and ending with the E m a i l : k j p a u l o s e @ s c m s g r o u p . org 1234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890 new millennium. It is a product if preparation of a Business Plan. The A Quarterly Journal SCMS Journal of Indian Management, April-June, 2010. 129 ‘B.P.guide’ given at the end of this section can be of immense The most impressive aspect of the book is that almost all the help to any budding entrepreneur. Issues related to the creation chapters are supplemented by case studies quite relevant to of an Entrepreneurial team are dealt with in Part III. The topics the topics covered. Internet links have been provided for each covered include Culture, Decision Making, Managerial chapter. Another interesting feature is the inclusion of ‘Mind Competencies, Team work, Conflict Management and role of Stretchers’ and Exercises under each chapter, which challenges IT & Systems Management. the readers / students to think well beyond themes covered by the text. The 7th edition which is under review contains In Part IV, the Financing aspects are dealt with. Issues such as several new data, chapters’ cases, and revisions as compared Estimation of Resource Requirements, Venture Capital, to the previous ones. Franchising, Valuation and Debt Capital are covered in great detail. Start-up and growth strategies are covered in Part V. The book can be classified as a ‘must-read’ for Teachers, Best practices of high growth companies, Family and Students, Consultants and Researchers in the field of Entrepreneurship, Gestation Period Crisis and Organizational Entrepreneurship as well as for aspiring Entrepreneurs. The quality Decline are the main themes covered under this section. The of presentation does full justice to the richness of the contents, last chapter, “Harvest and Beyond” deals with exit strategies, although the ‘photocopied look’ leaves a jarring note in the such as divestment, mergers/acquisition/strategic alliances, and mind of the reader, especially with regard to charts, graphs and concludes with “The Seven Secrets of Success.” diagrams. A Quarterly Journal  CERTIFICATE OF REGISTRATION Title of Newspaper : SCMS JOURNAL OF INDIAN MANAGEMENT Language : English (in which it is to be published) Registration Number of the Newspaper : Periodicity of the publication and the : Quarterly day on which it is published 1 January, 1 April, 1 July, and 1 October Retailing Selling price of the : Rs.1000/- (One Year Subscription) Newspaper Publisher’s Name : Dr.D.Radhakrishnan Nair Nationality : Indian Address : 25/74, Ambady, Kothamangalam-686 691, Ernakulam. Place of publication : Prathap Nagar, Muttom, (with complete Postal address) Aluva-683 106, Ernakulam District, Kerala. Printer’s Name : Dr.D.Radhakrishnan Nair Nationality : Indian Address : 25/74, Ambady, Kothamangalam-686 691, Ernakulam. Name of the Printing Press (with complete address where printing : Maptho Printings, Kalamassery, Cochin-683104 is to be conducted) Editor’s Name : Dr.D.Radhakrishnan Nair Nationality : Indian Address : 25/74, Ambady, Kothamangalam-686 691, Ernakulam. Owner’s Name : SCMS-COCHIN Place : Prathap Nagar, Muttom.  SCMS Journal of Indian Management SCMS-COCHIN SCMS New Campus, Prathap Nagar Muttom, Aluva-683 106, Kochi, Kerala, India Ph: 91-484-262 3803 / 262 3804 / 262 3885 / 262 3887 Fax: 91-484-262 3855 E-mail: ed i t o r @ s c m s g r o u p . o r g / s c m s e d i t o r c o c h i n @ y a h o o . c o m Website: www.scmsgroup.org SCMS Journal of Indian Management a quarterly publication of SCMS-COCHIN Dates of Release: - Number I – January-March on 1 April Number II – April-June on 1 July Number III – July-September on 1 October Number IV – October-December on 1 January © SCMS Journal of Indian Management, SCMS New Campus, Prathap Nagar, Muttom, Aluva-683106, Kochi, Kerala, India Ph: 91-484-262 3803 / 262 3804 / 262 3885 / 262 3887 Fax: 91-484-262 3855, Website: www.scmsgroup.org E-mail: [email protected] / [email protected] All rights reser ved. No par t of this publication may be reproduced in any for m without the written consent of the p u b l i s h e r. S c h o o l o f C o m m u n i c a t i o n a n d M a n a g e m e n t S t u d i e s a n d S C M S J o u r n a l o f I n d i a n M a n a g e m e n t a s s u m e no responsibility for the views expressed or information furnished by the authors. Edited and published by the Editor for and on behalf of SCMS and printed at Maptho Printings, Cochin-683104.  SCMS JOURNAL OF INDIAN MANAGEMENT 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890 Aims and Scope The SCMS Journal of Indian Management is a blind peer-reviewed Journal. The Journal deems it its mission to submit to the readers fresh fruit of management thoughts and rich cream of current innovative research. The format of the Journal is designed reader-friendly. The academia and the corporates have an easy access to the Journal. The Jour nal looks for ar ticles conceptually sound, at once methodologically rigorous. The Journal loves to deal knowl- edge in management theor y and practice individually and in unison. We wish our effor t would bear fruit. We hope the Journal will have a long life in the shelves catering to the needs of b-students and b-faculty. § Proposals for ar ticles that demonstrate clear and bold thinking, fresh and useful ideas, accessible and jargon- free expression, and unambiguous authority are invited. The following may be noted while ar ticles are prepared. § What is the central message of the ar ticle you propose to write? Moreover, what is new, useful, counterintuitive, or impor tant about your idea? § What are the real-world implications of the proposed ar ticle? Can the central message be applied in businesses today, and if so, how? § Who is the audience for your ar ticle? Why should a busy manager stop and read it? § What kind of research have you conducted to support the argument or logic in your article? § What academic, professional, or personal experience will you draw on to make the argument convincing? In other words, what is the source of your authority? § The manuscript of reasonable length shall be sent to the Editor— SCMS Journal of India Management (Both for postal and electronic submission details are given here under). The manuscript should accompany the following separately: § An abstract (about 100 words), a brief biographical sketch of above 100 words for authors describing designation, affiliation, specialization, number of books and ar ticles published in the referee jour nals, membership on editorial boards and companies etc. § The declaration to the effect that the work is original and it has not been published earlier shall be sent. § Tables, charts and graphs should be typed in separate sheets. They should be numbered as Table 1, Graph 1 etc. § References used should be listed at the end of the text. § Editors reserve the right to modify and improve the manuscripts to meet the Journal’s standards of presentation and style. § Editors have full right to accept or reject an ar ticle for publication. Editorial decisions will be communicated with in a period of four weeks of the receipt of the manuscripts. § All footnotes will be appended at the end of the article as a separate page. The typo script should use smaller size fonts. 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901 Address for Submission Electronic Submission: E-mail: e d i t o r @ s c m s g r o u p . o r g / [email protected] The electronic submission must be in the form of an attachment with a covering letter to be sent as e-mail Post Submission : The Editor SCMS Journal of Indian Management, SCMS New Campus, Prathap Nagar, Muttom, Aluva – 683106, Kochi, Kerala, India Ph : +91 484 2623803, 2623804, 2623885, 2623887 Fax : +91 484 2623855 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901  SCMS Journal of Indian Management Subscription / Advertisement Form Name : Address : City : Zip Code : Country : E-mail : Phone : Draft Number : (in favour of “SCMS Journal of Indian Management, Cochin”) Subscription Rates 1 year 2 years Per issue Companies/Academic Institutes : 1000 ($60) 1800 ($100) 250 ($15) Individual : 800 1500 200 Advertisement Rate Outside back cover : Rs.30,000 in color, Rs.15,000 in black and white Inside front cover : Rs.17,500 in color, Rs.10,000 in black and white Inside back cover : Rs.15,000 in color, Rs.6,000 in black and white Inner full-page : Rs.7500 in color, Rs.4,000 in black and white Inner half-page : Rs.5000 in color, Rs.3,000 in black and white For all communications contact: Editor, SCMS Journal of Indian Management, SCMS New Campus, Prathap Nagar, Muttom, Aluva - 683106, Kochi, Kerala, India. Phone: 91-484-262 3803 / 262 3804 / 262 3885 / 262 3887 Fax: 91-484-262 3855 Website: www.scmsgroup.org E-mail: [email protected]  SCMS JOURNAL OF INDIAN MANAGEMENT VOLUME VII, NUMBER II APRIL-JUNE 2010 Listed in Cabell’s Directory ISSN 0973-3167 BRIDGING GAP Case in Competency: Training need Assessment 0 A n i t h a Th o m a s a n d A n i r u d h a P a n c h a l 0 SCM and Marketing Management: Mutual Integration LOGISTICS Pankaj M.Madhani P DYNAMICS Organizational Climate: BPO Industry 0 Av i n a s h K u m a r S r i v a s t a v 0 Brand Awareness: Baby Food Products C H I L D - H E A LT H Keerthi Pandian and Ramachandran K.K. P GAP-FILLING Product Mix Strategies: FMCG in Indian Market 0 M o h a n k u m a r T. P. a n d S h i v a r a j B . 0 Small is Beautiful? Corporate Social Responsibility ROADMAPPING Prasenjit Maiti P CONSUMER STIMULI Car Industry: SWOT Analysis 0 Dharmaraj C., Sivasubramanian M., and Clement Sudhahar J. 0 Ordering of Companies: Proposed - Profitability Scores DISCRIMINANT SCORE Dilip Roy and Anupama Tiwari P MODELLING GAPS Single and Multiple Expectations: Service Quality Retailing 0 R a vi c h a n d ra n K. , A b d u s S a ma d K. a n d Da v i d S a m Ja y a k u ma r G.S. 0 Ownership Structure in Iran: Firms' Responsibility STRUCTURING Va h i d e h H o s e i n i N o d e h a n d A i s h a M . S h e r i f f P S Retail Franchising 0 K Sreekumar Pillai 0 M S K IM NIG Managerial Accounting I Makesh K.G. P M M S Marketing 0 I C Bindu K.Nambiar 0 N A Strategic Management Text and Cases G N Susan Abraham P N & I Fundamentals of Investment Management 0 N Sudhakara Menon 0 G N e w Ve n t u r e C r e a t i o n Paulose K.J. 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123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 By Prof.N.C.George 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 Price Rs.895/- 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 Copies can be had from the Publication Department, SCMS Group of 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 Educational Institutions, Cochin-683106 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345  Printed by Dr.D.Radhakrishnan Nair, published by Dr.D.Radhakrishnan Nair on behalf of SCMS-COCHIN [School of Communication and Management Studies] and printed at Maptho Printings, Kalamassery, Cochin-683104 and published at Muttom, Aluva-683106, Cochin, Editor-Dr.D.Radhakrishnan Nair. ISSN-0973-3167 SCMS Journal of Indian Management is included in EBSCO Database SCMS Journal of Indian Management, Volume VII, Number II, April - June 2010, Pages 1-136