ITC to expand into milk products, plans own dairy

Cigarette and packaged foods maker ITC Ltd on Friday said it will shortly enter the dairy business. The company will launch the business from Munger in Bihar, where it has been working closely with dairy farmers, Chairman Y.C. Deveshwar said after announcing the plan to shareholders at ITC's annual general meeting.

The company will soon set up its own dairy in Munger, he said.

Among the first few products likely to be introduced by the company are skimmed milk powder, ghee and butter.
“We see great opportunity to add value and create derivatives in this business”, said Deveshwar.

Deveshwar is a director of HT Media Ltd, which publishes Mint. Milk products will be an expansion of ITC's branded packaged foods business.

Thought of the Day

"The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy."- Martin Luther King, Jr.

Business News

·         ICICI Bank acquires 29.30% stake in GTL

·         Hero Honda Motors Limited is now Hero MotoCorp Ltd.

Marketing glossary

1.  Erratic Demand

A pattern of demand for a product that is varied and unpredictable, e.g., some best sellers, or specific online databases randomly assigned in curriculum by teachers.

2.  Evoked set

A set of alternatives that are activated directly from memory--certain brands considered during the buying process.

3.  Exchange

All activities associated with receiving something from someone by giving something voluntarily in return. This is the heart of the marketing process. A library user gives time instead of money to borrow materials, but it is still an exchange.

Bond Dividend vs Bond fund

 Bond Dividend

A dividend that is paid in stock or bonds rather than cash. A stock dividend may be declared when the company is cash poor and cannot afford a dividend otherwise. They are generally not considered desirable because one must pay gains tax on stock dividends, even though there is no cash gain for the shareholder. It is also called a scrip dividend..

A bond in which coupon payments come in the form of more bonds, rather than cash. At times, the investor has the option of choosing whether to accept cash or payment-in-kind, but more often this option resides with the issuer. A problem with PIK bonds for the issuer is the fact that it becomes tempting to pay coupons with more debt rather than cash when the company has a liquidity problem. Of course, doing this often only adds to the issuer's liquidity problems. This type of bond was not unusual during the private equity boom in the mid-2000s, but became rare during the credit crunch at the end of the decade.

VLCC in talks to buy firms in Europe, South – East Asia

Wellness and Beauty Company VLCC Healthcare Ltd is in advanced talks to buy a European nutraceuticals and skincare firm and a South-East Asian wellness company as it makes a fresh bid to enter new markets and businesses.

VLCC is carrying out due diligence on the two companies, managing director Sandeep Ahuja said in a phone inter- view.

New Delhi-based VLCC has earmarked $50 million (around `220 crore) for acquisitions and expansions, he said.

Ahuja didn't give more de- tails on the proposed purchases but said expansion plans include residential wellness centres for treating lifestyle-related ailments such as diabetes and hypertension.

Thought of the Day

"If your actions inspire others to dream more, learn more, do more and become more, you are a leader."

                                                                                       - John QuincyAdams

Business News

• Hour-long strike at Maruti Plant
• Titan Q1 net profit up 76.37% to Rs. 143.36 cr
• Govt nod to national social security fund

Finance Glossary

Arbitrage: The buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market, in terms of a third market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved.

Back-to-back Loan: an arrangement in which two companies in different countries borrow offsetting amounts in each other's currency and each repays it at a specified future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from exchange rate fluctuations.  

Who is participating in forex market trades?

The forex market is all about trading between countries, the currencies of those countries and the timing of investing in certain currencies. The FX market is trading between countries, usually completed with a broker or a financial company. Many people are involved in forex trading, which is similar to stock market trading, but FX trading is completed on a much larger overall scale. Much of the trading does take place between banks, governments, brokers and a small amount of trades will take place in retail settings where the average person involved in trading is known as a spectator. Financial market and financial conditions are making the forex market trading go up and down daily. Millions are traded on a daily basis between many of the largest countries and this is going to include some amount of trading in smaller countries as well.

Photograph's of International Seminar

Ford chooses Gujarat over Maharashtra for second India plant

Ford India Pvt. Ltd, the local unit of Michigan-based Ford Motor Co., has chosen Gujarat over Maharashtra for setting up its second manufacturing plant in the country.

The US auto maker is being allotted 400 acres of land at Sanand, close to Tata Motors Ltd's Nano factory, about 40km from Ahmedabad, according to a senior government official dealing directly with the project.

Another 100 acres will be acquired by Ford at a later stage for setting up an ancillary park.

A formal announcement will be made by Gujarat chief minister Narendra Modi along with top Ford officials on Thursday in the state capital Gandhina- gar, the official said.

Mint had earlier reported in June that Ford was exploring the possibility of setting up its new manufacturing plant at either Sanand in Gujarat or Chakan in Maharashtra.

Business News

• Nairman appointed solicitor general
• Cadila arm acquires German firm Bremer
• Firms cautious on economic outlook

Glossary for Hospitality

Ø      Business Travel - Travel for commercial, governmental or educational purposes with leisure as a secondary motivation.

Ø      Booking - Term used to refer to a completed sale by a destination, convention center, facility, hotel or supplier (i.e. convention, meeting, trade show or group business booking).

Ø      Convention and Visitors Bureau - These organizations are local tourism marketing organizations specializing in developing conventions, meetings, conferences and visitations to a city, county or region.

Thought of the Day

"Many people fail in life, not for lack of ability or brains or even courage but simply because they have never organized their energies around a goal."

                                                                                                                       - Elbert Hubbard

Deming’s 14 points theory, a set of management practices to help companies increase their quality and productivity

At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. The methods for implementing this approach come from the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran. A core concept in implementing TQM is Deming’s 14 points, a set of management practices to help companies increase their quality and productivity: Create constancy of purpose for improving products and services. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.

Trafigura in talks with Aegis on joint venture to ferryo (Logistics Partnership)

The Netherlands-based oil trader Trafigura AG is in talks with Mumbai's Aegis Logistics Ltd to set up a joint venture to ferry oil and liquefied petroleum gas (LPG), said a person with direct knowledge of the matter and two other industry people aware of the development.

“Talks are at a preliminary stage”, said an Aegis official, who did not want to be identified.

Raghu Warrier, head, media relations, Aegis, declined comment.

“We do not have any comment at this time”, Trafigura's head of corporate affairs Mark Eadie said in an email. Trafigura has representative offices in Mumbai and Delhi.

A partnership with Aegis will give Trafigura--the world's third largest independent oil trader and the second largest independent trader in non-ferrous concentrates, according to its website--a ready plat- form to enter India. In turn, Aegis will have an increased international play through Trafigura's network.

“Until now Europe and Singapore were the hubs for liquid logistics space. Such a partner- ship will help India emerge on the world map for logistics”, said one of the two industry persons aware of the development. Both spoke on condition of anonymity.

Business News

• Mahindra Aerospace, Eurocopter in MOU
• Visa steel net rises 33% to rs. 10.14 crore

Thought of the Day

"Good ideas are not adopted automatically. They must be driven into practice with courageous patience."

                                                                                       - Hyman Rickover

HR Glossary

Job analysis

The preparatory stage for writing job descriptions.

Job Description

A written description of a job which includes information regarding the general nature of the work to be performed, specific responsibilities and duties, and the employee characteristics required to perform the job.

Job evaluation

Used for compensation planning purposes, it is the process of comparing a job with other jobs in an organization to determine an appropriate pay rate for the job.

Recent Scenario of Human Resource Development in India

It’s no secret that employees’ attitudes about their jobs, their benefits and their employers can range from exuberant to sour. What’s less well known and harder to find out is exactly what matter to specific types of employees and how effective various types of HRD policies, practices and workplace characteristic are, in spurring employee productivity and retention. Since human resource development and management is culture sensitive, therefore we shall examine the recent scenario of HRD in India context by having a brief preview of HRD scenario in the global context as discussed below:

More and more employers are assessing the value returned from each dollar spent on employees. They are targeting specific programs and practice to the employees that value them the most and becoming more important than ever. Determining what matter most to employees and aligning expenditures with priorities is a strategic challenges for HRD function. Employee change continuously due, in part, to change changes in personal preference but also in part to the chum that occurs as employees leave and new ones enter the Organization. However, it is neither cost effective nor practical to satisfy every employee. Therefore, understanding employees and issues they face holds the key to the function to respond quickly.

Case Study

Orgnaization:  Mirc Electronics

                        Industry       :  Computers & Electronics

                      Product        :  Color TV

                      Brand           :  Onida

Introduction

 Onida's market share in the Color Television (CTV) market went up from 9.5% in 1997-98 to 11.7% in 1999. (In 2000, Onida's market share was 13%).
           However, almost 45% of its sales had came from the 21-inch segment. Onida therefore decided to increase its market share across all categories.Onida, which was better known as a '21-inch television company,' wanted to rejuvenate the brand by entering the 14 inch and 20 inch segments.           

            In May 1999, Onida came out with a unique product, a 14 inch CTV set nicknamed Candy.Candy came in four colors-Berry Blue, Mint Green, Lemon Yellow and Cherry Red—and was priced at Rs 9,990. Soon after the launch in Mumbai, G Sundar (Sundar), executive vice-president of Onida, invited 80 dealers to discuss how to make the Onida brand appealing to the youth.

Thought of the Day

"The function of leadership is to produce more leaders, not more followers."

                                                                                               - Ralph Nadar

Business News

• Force Motors signs deal with Daimler
• Jet Airways to merge low-cost brands soon
• Religare Capital buys South African firm
• Lupin in R& D pact with Medicis

Campus News

• A seminar is going to be held on 27th July, 2011 on Financial Education efforts of SEBI. Key Speaker is Mr. P N Arora

•  International seminar on “Indo-Philippines friendship and future prospects in trade and cultural relationship" is going to be held on 28^th July, 2011 at Auditorium (Plot- 2)

               Chief Guest: H.E. Ronald B. Allarey (Ambassador of Philippines)   

Economic Glossary

Menu costs

How much it costs to change prices. just as a restaurant has to print a new menu when it changes the price of its food, so many other firms face a substantial outlay each time they cut or raise what they charge. such menu costs mean that firms may be reluctant to change their prices every time there is a shift in the balance of supply and demand, so there will be sticky prices and the market for their output will be in disequilibrium. The internet may sharply reduce menu costs as it allows prices to be changed at the click of a mouse, which may improve efficiency by keeping markets more often in equilibrium

X-efficiency

Producing output at the minimum possible cost. this is not enough to ensure the best sort of economic efficiency, which maximizes society’s total consumer plus producer surplus, because the quantity of output produced may not be ideal. for instance, a monopoly can be an x-efficient producer, but in order to maximize its profit it may produce a different quantity of output than there would be in a surplus-maximizing market with perfect competition.

Six Tips to Improve Your Business Communication Skills

1. Practice makes perfect. Don’t assume you try once or twice and get results. Every day, every interaction, requires you to practice. Watch for where you see improvements and what is still not working, as well as you would like, and then make the adjustments.

2. Listen like you’ve never listened before. We all think we listen but mostly we listen with filters, assumptions and judgments. Don’t just hear the words; listen to what isn’t being said and the meaning underneath the words. You’ll be surprised at what you will learn.

3. Critical conversations need the right environment. Any conversation that is important needs the right environment to ensure success. That includes the where…where is it going to take place; the how…on the phone or face-to-face; and the time…it can’t be rushed.

It’s not HR’s job to manage people

The manager-people-HR equation needs to be rewritten. Its managers who have to handle people, with human resource departments enabling them to do this

Most managers mistake human resources (HR) for a function that manages people. Worse, many expect HR to manage their people for them. This attitude reminds me of the 1980s--the formative years of quality and safety functions in India. Line managers constantly confused the quality of products with the quality department. Safety was thought to be the job of the safety inspector. Hundreds of seminar hours were spent in educating managers that quality and safety were not the responsibility of the de- partments named after them. Finally, the owner- ship devolved to where it belongs: the line man- ager. The rank and file in factories and plants started owning responsibility for quality and safety--instead of “outsourcing” this to the quality and safety departments.

There is similar confusion over the HR function today. Many managers tend to abdicate or outsource people management to the HR department without understanding that managers alone can manage their people and the HR function only enables this through processes, tools and guidance.

Thought of the Day

If you want to make good use of your time, you've got to know what's most important and then give it all you've got

Business News

• Draft of new land acquisition Bill ready
• Karunanindhi to continue to lead DMK

Innovation ideas take flight on mobile platform

Winner of the m-Billionth Award South by the Digital Empowerment Foundation, were announced at an event in New Delhi on Saturday. The second edition of the awards aimed at encouraging and recognizing innovations on the mobile phone platform across South Asia, was given in nine categories that included m-Inclusion, m-Infrastructure, m-Entertainment, m-Governance, m-Health and m-Education and Learning. Some of the winners are profiled below: Category: m-Business & Commerce Title: Electronic Money Transfer Ser vice of Bangladesh Post Producer: Bangladesh Post Office The service allows people to send or receive money through money orders within minutes within the country using mobile phones.

“It is money transfer in a moment”, Mohammad Sirajuddin, director, Bangladesh Post, de- scribes the electronic money transfer service that was started as part of the country's postal service in May 2010.

 

Real Estate Glossary

Amortization schedule

A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

Annual percentage rate (APR)

This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan.

POV: Can brand mascots ever overshadow a brand's message?

Can brand symbols, the creative delivery mechanism for a brand's message, become brands in themselves - and, have better recall value?

Kiran Khalap, co-founder, Chlorophyll

The mascot is a telegraphic avatar of the brand. Used skillfully, it can communicate in shorthand. When allowed to drift, it can overshadow the core message and create irrelevant brand associations.

The Amul girl, the Air India Maharaja, the Onida Devil and Asian Paints' Gattu are popular Indian examples. Gattu created the category association of paint, nothing more. The changing social context made him a liability ('child labour') and an irrelevance ('untidy dripping paint'). Mercifully, he was cremated. The Maharaja created an association with old world hospitality, not airlines. Today, he has been reduced to a five-star-hotel darwan.

The Onida Devil is a peculiar case. He was a conceptual character without roots in Indian culture (we have no personification of evil in Hindu culture, unlike the Devil in Christianity) and, yet, he cut clutter because of his incongruity. He, too, overshadowed the brand.

Case Study

Background Note:

Korea based Hyundai Motor Company (HMC) in India. HMC entered India establishing  its wholly owned subsidiary Hyundai Motors India Limited (HMIL) in 1996. Within a year of launch of its first product - Santro, HMIL had emerged as the second largest car company in India. 

For a long time after India became independent in 1947, the car market had just two models to offer - the sturdy 'Ambassador' from Hindustan Motors (HM) and the sleek 'Fiat' from Premier Automobiles (PA). This was the result of Government of India's (GOI) decision to keep the car industry tightly protected. For HM and PA, the GOI dictated as to what type of vehicle the two companies should manufacture. No other domestic or foreign car manufacturer was allowed to enter the Indian car industry.   

Thought of the Day

Good ideas are not adopted automatically. They must be driven into practice with courageous patience

Business News

·        Toshiba overhauls India Strategy

·        Phillips recalls 95,000 hair dyer units

Story Board of Intex

TVC opens with a couple of tourists in a jungle clicking pictures.

Their guide gestures them to keep quite ...

Hiding behind a rock along with the tourists, he points to a crocodile ...

The animal opens its jaws and surprisingly projects a movie on a big rock nearby.

Case Study on Corus : Strategy of Contineous Improvement

Corus is part of the Tata Steel Group, the world's sixth largest steel producer. Within Europe, Corus is the second largest steel producer with average annual revenuesof around £12 billion. The company produces more than 20 million tonnes of steel each year, mainly in the UK and the Netherlands. It has a global network of sales offices and service centres, employing around 42,000 people worldwide. Corus is a leading supplier of steel to some of the most demanding markets around the world.

This case study focuses on how Corus used its knowledge and experience of continuous improvement (CI) to win new business. Continuous improvement is a tool that gives competitive advantage. This means the business can move ahead of competitors and increase its market share. Using skills and expertise in a structured way enables an organisation to create better processes and products. Corus used CI to support its new product development (NPD), enabling it to meet the needs of its customers more closely. Developing innovative products through continuous improvement is at the heart of Corus' business strategy.  

SpiceJet to tie up with global low-fare carriers

SpiceJet Ltd, India's second largest low-fare air- line controlled by media baron Kalanithi Maran of Sun TV Network Ltd, is exploring a different flight path for the second phase of its international expansion.

It is also talking to two air- ports in south India and one in Gujarat to set up its second regional base, after Hyderabad.

Currently flying two international routes--Colombo and Kathmandu--SpiceJet has ap- plied for 10 more, including South-East Asia, West Asia and some destinations in the Commonwealth of Independent States. Its rival and India's largest low-fare airline IndiGo has got permission to fly some key international routes--Dubai, Singapore and Bangkok.

Thought of the Day

The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy

Business News

• India in policy tightening mode
• Foreign Investment in MFs from 1Aug

Municipal Bond Funds

Municipal bond funds hold bonds that are issued by state and local governments (and other related entities). Municipal bond funds are generally purchased for the favorable tax treatment given to municipal bonds and the diversification benefits of a mutual fund. But how do you determine if the yield of a municipal bond fund is attractive compared to a taxable bond fund? All else equal, the answer lies in the tax-equivalent yield.

Tax-Free Nature of Municipal Bond Funds

Generally, the income generated within municipal bond funds is tax-free at the federal level. If the fund owns municipal bonds issued in the home state of the investor, then this interest is also tax-free at the state level.

Due to the tax-free nature of municipal bonds, the issuer (in this case the municipalities) can offer a lower yield than taxable bonds (e.g., corporate bonds, US Treasury bonds) with similar characteristics (i.e., maturity, credit quality) while still attracting investors.

A quick calculation of the tax-equivalent yield will help an investor decide if they are a good candidate for a municipal bond fund.

Tax-Equivalent Yield of Municipal Bond Funds

Assuming similar maturity and credit quality, would you rather buy a taxable bond that pays 5% or a tax-free municipal bond that pays 4%? A simple solution is to calculate the tax-equivalent yield. The tax-equivalent yield is the pre-tax yield that the taxable bond must pay in order to equal the tax-free municipal bond yield.

Case Study

Crossroads

"I was shocked by the new rules. When questioned, the security guard said it was for my own safety. This was the way to keep the phaltu crowd away."

                                                                           - An angry Sunday shopper.

"Not even Harrod's stops people from entering the store. There could have been better ways to screen out undesirable elements."

                                                      - Vineet Chadha, Director, Celebrations.

Introduction

In the first week of August 2000, visitors to Crossroads, a retail mall, saw a polite notice informing them that a mobile phone, a credit card or a club membership card would act as an entry ticket.

People without these new age accessories would have to pay Rs. 60 as entry fee, for a coupon redeemable against purchases made at any time. Within days, the number of visitors to the mall fell by more than 70%. Many of the visitors felt it very insulting to prove that they possessed a credit card or a mobile phone. Traffic continued to fall even after the ban was lifted two months later. It hovered around 6000-8000 a day, as against the initial walk-ins of 30,000-40,000 on weekdays and up to a lakh on weekends. Disappointed with the low traffic, Fountainhead, a bookstore, opted out of Crossroads. Shyam Ahuja, famous for his carpets and dhurries, vacated two-thirds of the space. Other unhappy tenants too, started renegotiating rentals.

Product Line of pepsi co India

Foods:
 Cheetos
 Kurkure
 Lay's
 Lehar Namkeen
 Quaker Oats
 Uncle Chipps
 Aliva

Thought for the Day

If your actions inspire others to dream more, learn more, do more and become more, you are a leader

Glossary for hospitality

Ø      Attendance Building - Marketing and promotional programs designed to increase attendance at conventions, trade shows, meetings, and events.

Ø      Attractions - General all-0inclusive term travel industry marketers use to refer to products that have visitor appeal, like museums, historic sites, performing arts institutions, preservation districts, theme parks, entertainment and national sites.

Ø      Booking - Term used to refer to a completed sale by a destination, convention center, facility, hotel or supplier (i.e. convention, meeting, trade show or group business booking).

Lupin denies it plans to sell Indian pharmaceutical unit

Lupin Ltd, the world's largest maker of drugs to fight tuberculosis, is considering selling its unit that markets drugs in India, said two people with knowledge of the matter. Lupin, however, said it has no plans to sell its domestic operations.

Founding shareholders who own a combined 47% of the Mumbai-based company have started the process of finding a buyer for the operations, said the people, who declined to be identified because the discussions are private. The Indian business may be worth at least $1 billion (`4,460 crore), one person said.

Selling the Indian medicines unit, which accounted for 32% of Lupin's `5,710 crore of revenue in the year ended 31 March, may help finance in- vestments in more profitable markets overseas. Lupin is the fifth largest supplier of generic drugs in the US based on prescriptions and US sales rose 27% to `2,050 crore last year.

Business News

·         Citigroup’s Khattar to join Morgan Stanley

·         Komli Media buys ad firm ZestADZ

·         FM to meet industry leaders on economy

Thought of the day

It’s never too late to have a happy childhood. But the second one is up to you and no one else

Niche market

Definition:

A niche market is a focused, target able portion of a market.

By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. You can think of a niche market as a narrowly defined group of potential customers.

For instance, instead of offering cleaning services, a business might establish a niche market by specializing in blind cleaning services.

Why should you bother to establish a niche market? Because of the great advantage of being alone there; other small businesses may not be aware of your particular niche market, and large businesses won't want to bother with it.

The trick to capitalizing on a niche market is to find or develop a market niche that has customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already.

Tips for professional email

While email may not be used as much as it was only a few years ago, many people still use it for business communications. This stresses the importance of knowing proper email etiquette. While a lot of people understand the importance of following certain rules when writing a business letter, they often forget these rules when composing an email message. Here's a refresher.

·                        Mind Your Manners: Think of the basic rules you learned growing up, like saying please and thank you. Address people you don't know as Mr., Mrs., or Dr. Only address someone by first name if they imply it's okay to do so.

·                        Watch Your Tone: Defines tone as an "accent or inflection expressive of a mood or emotion." It is very difficult to express tone in writing. You want to come across as respectful, friendly, and approachable. You don't want to sound curt or demanding.

Consumer goods firms likely to post strong revenue growth

Consumer goods companies will post robust revenue growth in the June quarter driven by volume sales in the home and personal care sectors, analysts said, but warned further increases in prices to offset rising raw material costs will slow growth.

A Mint survey of six broker- ages estimates 17-21% growth in revenue for consumer goods companies in the first quarter of the fiscal.

Rising commodity costs, though, will see their operating margins dip by 70 basis points year-on-year, keeping operating profit growth at 16.9%, said a 4 July report by Religare Capital Markets Ltd. One basis point is one-hundredth of a percentage point.

But moderation in advertising and marketing budgets and strong sales growth will help curtail the impact, it added.

Bajaj Corp. Ltd, Colgate-Palmolive (India) Ltd, GlaxoSmithKline Consumer Health- care Ltd and Jyothy Laboratories Ltd are likely to see the highest margin declines year- on-year, while Britannia Industries Ltd, ITC Ltd and Hindustan Unilever Ltd (HUL), the country's largest consumer goods company by sales, will see stronger margins, Religare said.

Business News

·         Bombay HC adjourns Jet-Sahara case

·         Chambal to demerge shipping business

Thought of Day

Everything can change in the blink of an eye. But don’t worry; God never blinks

IT GLOSSARY

Backbone

A backbone is a larger transmission line that carries data gathered from smaller lines that interconnect with it.  At the local level, a backbone is a line or set of lines that local area networks connect to for a wide area network connection or within a local area network to span distances efficiently (for example, between buildings). On the Internet or other wide area network, a backbone is a set of paths that local or regional networks connect to for long-distance interconnection. The connection points are known as network nodes.

Front -end

Front-end and back-end are terms used to characterize program interfaces and services relative to the initial user of these interfaces and services. (The "user" may be a human being or a program.) A "front-end" application is one that application users interact with directly. A "back-end" application or program serves indirectly in support of the front-end services, usually by being closer to the required resource or having the capability to communicate with the required resource.