THOUGHT OF THE DAY

Put not your trust in money, but put your money in trust. 

 

                                             ~Oliver Wendell Holmes

CASE STUDY on FINANCING THE SUPPLY CHAIN

Trade finance is the provision of any form of financing that enables a trading activity to take place. This finance could be provided by a buyer to a seller in order to enable the seller to finance his production. Often this finance is allocated to allow access to better inputs that would not be accessed otherwise due to unavailability of credit, transportation, storage, or other costs. The buyer has the incentive to provide this type of finance to ensure the quantity and quality of the specific goods needed for his business. In addition, in order to increase sales volumes, sellers of inputs or other services also have incentives to extend credit to increase their sales volume.

In well developed markets that are characterized by transparency, sophisticated risk hedging instruments,pricing of risk, and a variety of effective collaterals, buyers and sellers often use the credit terms of trade finance to differentiate commercial counterparts and negotiate the terms of the transaction. Conversely,producers and agrobusinesses that form the base of the productive chain in developing countries often have difficulty even entering into financing arrangements within the supply chain, let alone negotiating terms. Credit constraints for agricultural producers and agroprocessors within emerging markets create problems for purchasing inputs, hiring labor for production, storage, processing transportation, and accessing markets. Both open account financing and advanced payment financing provide some solutions to these constraints.

One can generalize trade finance into two different categories. The first category is open account financing where the seller provides goods in advance of payment such as an input provider giving fertilizers in March with the expectation that he will be paid in September when the crop is harvested. The second type of financing is advanced payment financing where the buyer provides some payment for the goods trusting that the seller will ship the specified goods at a later date.

INTERVIEW QUESTIONS FOR FINANCE STUDENTS

1.Why one rupee note is signed by the ministry of finance? Is governer has the right to sign this note? Is there any interference by the RBI?

As ruppee is the currency of our country and only govt has the authority to issue indian currency it has been signed by ministry of finance, all other notes are bearer notes which are signed by governor.

No interference by RBI.

2. What is the difference between real money & nominal money?

Nominal money relates more to it's measure of counting - so nominal figure of what is written on bill, while "real" relates more to it's purchasing power (usually between some periods of time). For instance 100 units in nominal could buy 2 units of good in 1950 and 1 unit of good in 2005, at the same time real value of this 100 nominal units are 100 real units in 1950 and 50 real units in 2005.
Same is with GDP. In nominal it can rise due to inflation while it can stay the same or even decrease in real value.

3.What is Crossover Rate?

When comparing two different but similar projects, the specific returns required for the projects to have the same net present value. Because two similar securities may have different volatility, calculating the crossover rate helps to determine which will be more profitable in the short and long terms. For example, one dotcom company may achieve a steady rate of growth, but only slowly over time, while a second dotcom may achieve the same returns in a shorter timeframe, but with greater vulnerability to market downturns. Calculating the rate at which each will achieve a desired net present value, assuming no massive changes in circumstances, may help an investor make decisions regarding which to buy and which to sell.

BUSINESS NEWS

ECB's Stark warns against IMF funds for eurozone

FRANKFURT: The European Central Bank's chief economist Juergen Stark, who is stepping down at the end of the year, warned against using the IMF to bail out debt-mired eurozone countries in an interview.Stark said that by turning to the IMF, Europe would be placing its fate in the hands of "international committees and the various interests that are represented there.
"Europe must solve its problems on its own and reduce its dependence on the international capital markets by way of rigorous fiscal policies," Stark said.

Delhi government agrees to 500 crore bailout for BSES discoms

NEW DELHI: Faced with the threat of a power blackout in most parts of the city, the Delhi government on Monday gave in to pressure from private distribution companies BSES Rajdhani and BSES Yamuna and agreed to infuse equity worth Rs 500 crore in the two companies to bail them out of a liquidity crisis.

India extends ban on milk imports from Chinese

NEW DELHI: Imports of milk and milk products from China have been prohibited since September 2008.
Though the DGFT has not cited any reason for the ban, it is understood it was over fears of Chinese milk containing melamine, a deadly chemical, a source said.

ADVANCED MS EXCEL TOOLS AND FUNCTIONS

MS Excel: Pmt FunctionIn Excel, the Pmt function returns the payment amount for a loan based on an interest rate and a constant payment schedule.The syntax for the Pmt function is: Pmt(RATE,NPER, PV, FV, Type )

RATE  is the interest rate for the loan.

NPER  is the number of payments for the loan.

PV is the present value or principal of the loan.

FV is optional. It is the future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the Pmt function assumes a FV value of 0.

Type is optional. It indicates when the payments are due. Type can be one of the following values:

Value	Explanation
0	Payments are due at the end of the period. (default)
1	Payments are due at the beginning of the period.

If the Type parameter is omitted, the Pmt function assumes a Type value of 0.

Interview Tips

Interview: An interview reveals among other things, how you “react” to various situations as it involves thinking on your feet.an interview provides an opportunity to the interviewer to peep into your mind and understand your thought process.

Five Main Interview Tips

1) Written test.
2) Technical test.
3) Group discussion or group interview.
4) Telephone interview or telephonic round.
5) Personal interview.

1) Written test tips: While preparing for  written interview you have to be  well prepared on the skill set you are working and you can also go through the company sample interview questions so that you will have an idea how the interviewer is asking the questions.

2) Technical interview tips: This is the second interview round to check your technical strengths. The name technical interview itself tells us the interview is completely based on technical skills. Based on the skill you can find few technical interview techniques and tips in www.tipsoninterview.com

C&S ELECTRIC LTD ACQUIRED NETHERLANDS-BASED ETACOM ISD BV

Power equipment maker C&S Electric ltd acquired Netherlands-based Etacom ISD BV for 20 million euros (about Rs 139 crore).

Etacom ISD BV is a Dutch holding company for Etacom Group that specializes in manufacturing insulated bushars. The acquisition was done through C&S Electric International BV, an Official statement said.

“The acquisition is a strategic move for C&S Electric’s power busbar business to extend domestic position in India to a global scale” the statement said.

The acquisition is C&S Electric’s second overseas venture as it started a green field company in china 18 month ago. C&S Electric is engaged in the businesses of low & medium voltage switchgear, power busbars, light solutions, turkey electrical contracts and diesel generating sets. The statement said revenue of C&S Electric are expected to be over Rs 825 crore while Etacom is likely to earn about Rs 125 crore Revenue in 2011-12.

HR Glossary

Affirmative action                    

Also: Positive discrimination.

Carried out on behalf of women and disadvantaged groups and members of such groups are placed in dominant positions

Benchmarking

A technique using quantitative or qualitative data to make comparisons between different organizations or different sections

Broad banding

A pay structure that consolidates a large number of narrower pay grades into fewer broad bands with wider salary ranges.

Contingent workers

Employees who may be: casual labour, part-timers, freelancers, subcontractors, independent professionals and consultants.

Grievance

A complaint brought by one party to an employment contract against another party.

Group dynamics

The social manner in which people interact with each other within a group.

Meet your Alumni

Name: Amit Bansal

Batch: Ist Batch

Designation: Director

Organization: Wall Street Finance Pvt. Ltd

Email: amitbansal1973@yahoo.com

YOGESH CHANDER DEVESHWAR (Chairman of ITC)

Popular known as yogi, the 64 year old Yogesh Chander Deveshwar is the chairman of ITC ltd, one of corporate India’s most respected company Mr Deveshwar has with effectives planning and smart execution, turned ITC from a narrow product line company into a highly diversified conglomerate.

Career path

Mr Deveshwar earned his Bachelor’s degree in Mechanical Engineering from IIT Delhi, pursued the Advanced Management Programme from Harvard business school and took advanced training in Hoteliering and services from Cornell University. Soon after he joined the Indian Tobacco Company (ITC) in 1968 as a Management Trainee. Working hard to scale the corporate ladder, he was appointed to the Board of Director in1984 while the crowning glory came in 1996 when he was appointed the chief executive and chairman of the Board.

Awards and Honours

v     Sustainability leadership award, 2007.

v     Business person of the year award 2006 by the UK Trade and Investment.

v     In January 2006, he was inducted to the prestigious Hall of Pride at the Indian science congress.

v     Manager entrepreneur of the year 2001 by the Ernst &Young.

v     Global leadership award 2010.

Thought of the Day

“All I know is just what I read in the papers,
and that’s an alibi for my ignorance.”

                                                                                                 ~ Will Rogers

Coke vs Pepsi: A short history of the war between cola giants

The big guns of the cola wars have fallen a little silent over the years. Or maybe they've been drowned out entirely by bigger marketers fighting wars of their own, with a lot more firepower at their disposal. But colas still continue to slug it out, with no sign or hope of a truce. A short history of a long, long war.

The Clash Of The Cola Kings

The battle has begun in right earnest. American giant Pepsi and Indian stalwart Parle flex their marketing muscles with a variety of promotions as the fizz fight spills into the marketplace

22 June 1994
Bottled Fizz To Battle Fizz
With Coke moving into the major metros over the last two months, the battle for market supremacy between it and Pepsi has really hotted up, with no clear winner in sight

5 March 1997
Third Knight In The Cola Duel
This summer Thums Up will be serious contender in the cola market in India once more. As the war shifts ground to two versus one, the scene is bound to get murkier

26 March 2003
Coke Vs Pepsi
Coke's on top with Aamir Khan and its lethal P: Paanch. Pepsi, for once on the defensive, is getting lucky - the men in blue aren't just looking cute, they're rocking. "India is a beverage battlefield for 2003," Pepsi's Asia chief Ronald McEachern said recently. Brand Equity brings you the inside story of a battle that's likely to get bloodier this summer.

Amagi Media and Creative Thinks Media enter into strategic agreement

According to the tie-up, Creative Thinks Media will represent Amagi for sales in the real-estate category in the Delhi and NCR region.

Local television advertising specialists Amagi Media and Creative Thinks Media have entered into a strategic agreement for Free Commercial Time (FCT) sales in the real-estate category.

According to the alliance, Creative Thinks Media will represent Amagi for FCT sales in the real-estate category in the Delhi and NCR region.

Ritesh Malik, managing director, Creative Thinks Media, says, "Amagi, with its unique Smart Advertising Platform, gives an opportunity for regional brands to experience targeted geographical coverage and penetration on national television networks, thereby giving value for investment. Creative Thinks Media, with its market knowledge in the said vertical, chose to take this concept to its existing and new clients."

The tie-up will help real-estate players, who largely focus on targeted print and radio advertising, to have a better presence on television. Amagi Media, with its advertising platform, helps advertisers buy spots on national TV channels, as well as air their ads locally on the same.

"We are confident that Creative Thinks Media will help Amagi deliver tremendous value to the real-estate clients in Delhi/NCR with our advertising platform on TV. Amagi's Smart Advertising Platform provides a ground-breaking opportunity for clients to build their brands on premium national TV channels without any wastage or spillage," says K A Srinivasan, co-founder, Amagi Media.

Story Board of Star CJ Alive

Agency: Metal Communications 

Category: Online Media/ Service

TVC opens with a scene of the early 50s. A blind girl is in a hospital and her blindfold is being taken off by doctors.	As she opens her eyes, she exclaims that she can see everything and then recognises her parents ...	But to everyone's surprise, she goes beyond recognizing everyone and starts talking about seeing Europe, America, cell phones, jewellery etc., on an old television set in front of her.
VO says that this Christmas, change channels and change the generation. It continues talking about Star CJ Alive.	TVC ends with the girl saying that she can buy everything now and suddenly changes into a modern girls avatar... (Source-: afaqs.com)

Richard Branson Explains Why He Is The Opposite Of Steve Jobs

Richard Branson says that delegation and compassion are the keys to running his $18-billion-revenue Virgin empire.

In this regard he considers himself the opposite of Steve Jobs

I admired Steve Jobs, although he was completely different from me. He used to shout at employees that made mistakes. He did not delegate much, and broke all the rules I believe in. Somehow it worked for him. Apple is one the best brands in the world.

       

       This philosophy is why Branson has so much time for games and charity:

I devote most of my time to activities like The Elders [A South-African NGO], but I make it a point to take care of things that are important to Virgin, like hiring its key executives. I interviewed Josh Bayliss, the Group’s CEO, in the back seat of my car while waiting in a traffic jam that lasted almost two hours. Now, he makes money so I can spend it. Learning to delegate is vital in business. You have to be willing to let people do good things and let make them mistakes...

Thought of the Day

“To accomplish great things,
we must dream as well as act.”

                                          ~ Anatole France

Case Study on HR

all the managerial and professional specialty occupations, human resource Management has the highest proportion of women. In 1996, women made up 62.5 percent of all "personnel, labor relations and training" positions - almost 14 percentage points higher than the average for all managerial and professional occupations - according to the U.S. Department of Labor. What's more, the percentage of women in HR is double what it was 25 years ago, when women made up 31 percent of the profession. Relative to other fields, "HR has one of the highest percentages of women in top executive positions," says John F. Johnson, an executive recruiter who places chief HR executives in Fortune 1000 companies. "You find a higher percentage here than in finance, legal or other functions," he adds. And more women appear to be headed into the profession, based on the college students studying HR. For example, 70 percent of the student members of the Society for Human Resource Management (SHRM) are women, according to Beth McFarland, manager of student programs. Although the HR profession seems especially hospitable to women, many professionals and labor economists see such success as a mixed blessing. There is some concern that the job may not be treated the same way in the sense that - overall - 'women' jobs tend to pay less for a given level of qualification. And there's some debate over why that's the case.

Business News

• Cartoon Network Asia Pacific acquires Chaplin and Co
•  Food & grocery tops the chart

Five Problems Of Human Resource Manager

ü      How to Deal With a Negative Coworker: Negativity Matters

              Some people exude negativity. They don’t like their jobs or they don’t like their company. Their bosses are always jerks and they are always treated unfairly. The company is always going down the tube and customers are worthless. You know these negative Neds and Nellies – every organization has some – and you can best address their impact on you via avoidance.

ü      How to Implement Strategic Planning: Vision Statement, Mission Statement, Values

              In an earlier article, I gave you a strategic planning framework, samples, and examples for creating your organization’s mission statement, vision statement, and more. As a result of the strategic planning article, people ask: now that I know what all of this strategic planning should look like, how do I actually make strategic planning happen in my organization? This strategic planning question strikes at the heart of how to make change of any kind happen in your organization. Find out how.

Who’s a Boss?

“People do not leave companies, but they leave because of their bosses” goes a popular adage. How many of you nod your head for this statement in agreement??

  Here are some of the cues that HR should picked up:

Creating a vision for the department – Each and every organization has its own mission and vision. Understanding the culture of the company, aligning the goals of the department and strategizing the functional workflow are one of the key skills for the success of any department. As a head of the department, I think this is one of essential mantras to be adopted and followed.  Setting clear goals and objectives - In my observation, the head of the department or the leader should be a matured enough to weigh the pros & cons of a situation before, taking a final call in any of the critical issues. If need be, the views of the team can also be taken.

The objectives set for a period should be realistic and achievable, and should be defined understanding the challenges and the practical problems to be faced. Not only that the resources constraints be it man power or other resources should be thoroughly studied, before setting the goals of the department.

Role clarity for the team members – It is not sufficient, if the department goals are clearly set and defined. Each of the team members’ strengths and weaknesses have to be studied carefully and the roles and responsibilities should be clearly defined. This practice can minimize unnecessary work place conflicts and can contribute a lot to team’s synergy.

Communication Model – If you are a practicing manager or you have subordinates reporting to you, assess your pattern of communication with them. Do you allow your subordinates to ask questions? Do you have clarity on your thoughts before you communicate? Do you provide them with an ambience where they can express their opinions and suggestions freely? Always remember communication is a two way process and an effective communicator is one who obtains feedback from the receiving end to ensure the desired action could be achieved. In addition to it, listening is a key skill. As a superior, it is your duty to listen to the problems or the issues of the team members.

BIOGRAPHY of Chanda Kochhar

Chanda Kochhar was born in November 17, 1961 in Jodhpur, Rajasthan. She completed her Bachelor of Arts degree from Jai Hind College, Mumbai. Later, she joined the Jamnalal Bajaj Institute of Management Studies for the Masters Degree in Management Studies. She has two children, a son and a daughter.

She is the Chief Executive Officer (CEO) and Managing Director (MD) of the bank in May 2009. She is currently the Joint Managing Director (JMD) of ICICI Bank. She is also the bank`s the Chief Financial Officer (CFO) and the official spokesperson & that`s not all. She also heads the Corporate Centre of ICICI Bank.

Chanda Kochhar joined ICICI as a Management trainee after her Masters in the year 1984. After 9 years of hard work, Kocchar was appointed as part of core team to set the ICICI bank. She got promotion in 1994 & 1996 as Assistant General Manager and then Deputy General Manager respectively. In 1998, she was promoted as the General Manager with role of handling relationships with ICICI`s top 200 clients. In April 2001, she was promoted as Executive Director, heading the retail business in ICICI Bank. In April 2006, Chanda Kocchar was appointed as Deputy Managing Director of ICICI Bank.

Thought of the Day

Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed

                                      Mahatma Gandhi 1869-1948, Indian deep thinker and constant experimenter

Mergers & Acquisitions

Mercury Computer Systems Inc.   (Nasdaq: MRCY) has bookended 2011 with acquisitions,  announcing it is acquiring California defense and intelligence companyKOR Electronics Inc. for $70 million in cash.

KOR will become a subsidiary of Mercury, as will KOR’s own subsidiary, Paragon Dynamics Inc. of Colorado. The sale is expected to close by the end of this calendar year, officials said in a release. KOR is most known for making digital radio frequency memory (DRFM) units for electronic warfare uses, as well as radar environment simulation and test systems for defense uses. Paragon provides analytic and data services for the intelligence community.

In January, Chelmsford, Mass.-based Mercury acquired LNX Corp. of Salem, N.H., a manufacturer of digital and radio frequency components for $31 million in cash. Along with the $31 million, Mercury said at the time it had also committed to pay up to $5 million upon the achievement of financial targets in calendar years 2011 and 2012. LNX’s operations were combined with Mercury’s Echotek Product Group, to form the new Microwave and Digital Solutions group.

The next month, publicly traded Mercury priced a previously announced Mercury Computer Systems Inc.    (Nasdaq: MRCY) has bookended 2011 with acquisitions, today announcing it is acquiring California defense and intelligence company KOR Electronics Inc. for $70 million in cash.

Finance Glossary

Accrual bond

A bond on which interest accrues but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity. Junk Bond A junk bond is a bond that is rated below the investment grade before the purchase. It may also be known as a high yielding bond, non investment grade bond or speculative grade bond Opportunity Cost Opportunity Cost, which is sometimes known as economic opportunity loss is an economist’s approach to costs, whereby the cost of a decision is measured against the likely decision’s alternative. It is a way of working out the cost of missing out on the next best alternative.

Investment: What are its different types?

Investment can be defined as an act of commit capital or money to an endeavor with the expectation of getting an extra profit over and above the deposited amount. There are a number of people who have become rich by investing their money properly. However, it is not as easy as it sounds to be. It is a prerequisite to take control over finances in order to make profit through investment.

There are different types of investment strategies available to you and you need to choose the option/options that suit/suits you the best. You can have a look at the following lines that deals with different types of investment strategy.

Investing in stocks or shares: When you invest in shares or stocks, you actually buy a portion of a company’s ownership and its equity. Apart from earning profit, buying shares may also entitle you to vote at the shareholder’s meeting. The profits that you earn are referred to as dividends. However, prices of shares fluctuate on a daily basis. The only way you can make money is when the shares increase in value. Therefore, you need to be very careful while investing in stocks.

Tax update Amendment for transfer of security

A person resident in India who proposes to transfer, by way of gift, to a person resident outside India any security including shares/convertible debentures is required to obtain prior approval of the Reserve Bank of India.

The RBI has decided that the value of security to be transferred together with any security transferred by the transferor, as gift, to any person residing outside India which was not to exceed the rupee equivalent of US$ 25,000 during a calendar year has been enhanced to US$ 50,000 per financial year.

Company History - Muthoot Finance

Company was originally incorporated as a private limited company on March 14, 1997 with the name “The Muthoot Finance Private Limited” under the Companies Act. Subsequently, by fresh certificate of incorporation dated May 16, 2007, the name was changed to “Muthoot Finance Private Limited”. The Company was converted into a public limited company on November 18, 2008 with the name “Muthoot Finance Limited” and received a fresh certificate of incorporation consequent upon change in status on December 02, 2008 from the RoC.

Merger with Muthoot Enterprises Private Limited the Company, along with Muthoot Enterprises Private Limited, filed a composite scheme of arrangement bearing C.P. Nos. 48 and 50 of 2004 under the Companies Act before the High Court of Kerala (“Scheme of Amalgamation”). The Scheme of Amalgamation was approved by the board of directors of our Company through the board resolution dated April 28, 2004.

Small regional brands get modern retail push

Small and regional brands are tying up with retail giants to push their merchandise, as middle-class Indians shift from mom-and-pop stores to the comfort and variety of modern retail.

The latest to join the bandwagon is ayurvedic products maker Baidyanath Ayurved Bhawan. The 95-year-old company has tied-up with Future Supply Chain Solutions, the logistics arm of retail giant Future Group to widen its consumer base and boost its position in the health products segment where it competes with Dabur and Emami. The Kolkata-based company will use Future Supply Chain's network to sell its ayurvedic medicines, tonics, hair oils and toothpastes in more than 2,000 outlets in the country.

Future Supply Chain serves several large retailers besides the parent group's Big Bazaar.

"More than just sales, modern trade gives a very high visibility that's important to us. Also, it's an easy way to break into newer markets without investing substantially in distribution," said Ameve Sharma, president of the over 350-crore Baidyanath.

This strategy is not only giving smaller brands a pan-India presence, but also helping them reap dividends. Within a year, the share of organised retail in total sales of brands such as Wagh Bakri tea, Super-Max shaving products, Nilon's pickles, Dukes biscuits, NR Group's Ripples fragrances has risen from near zero to about 15%.

"Due to consumers moving and settling across geographies within the country, we are able to support small and regional brands get national footprint and also where relevant communities stay," said Devendra Chawla, president of FMCG and food at Future Group. "For several small vendor partners, setting up distribution networks can mean lot of resources and costs. Modern trade is the quickest route to market in relevant markets," he added.

Direct marketing of artifacts as a money making venture

Pallavi Singh Keshri believes that people should give wing to their dreams. Little wonder then that she has named her labour of love Eyass, which translates to falconry, wherein the young ones of a falcon are taken from the nest for training. There is another reason she chose the name-falconry is a near extinct art form in the Middle-east, and art is what Eyass is all about.

A two-year-old online store, Eyass showcases craftwork from all over the world. All the pieces are either hand-crafted, unique or endangered, and eco-friendly. This effort has enabled the creation of a platform, which connects artisans directly with the consumers, bypassing middlemen and margins.

The road to entrepreneurship has been a circuitous one, but Keshri was sure she would have her own business some day. After graduating from Delhi University in 1996, she picked up a post graduate diploma in marketing and joined a media house. Subsequently, she worked for Naukri.com for about two-and-a-half years. Then, in 2006, Keshri quit her job as marketing manager at Dale Carnegie Training in Mumbai to pursue a one-year MBA degree in general management and international business. She worked in Dubai for a year and it was on her return to India in December 2008 that Keshri felt ready to start her own venture. "The time was right. I had gained enough experience in the field, had made the right contacts, and shored up adequate savings to start on my own," says the 36-year-old.

Thought of the Day

Effective Communication at the right time is the key to succeed in B2B Marketing

Marketing Glossary

-         Ad hoc market research:  Ad-hoc research focuses on specific marketing problems. It involves the collection of data at one point in time from one sample of respondents.

-         After-sales service The services received after the original goods or services have been paid for. Often this service is provided as part of a warranty or guarantee scheme.

-         Ambush marketing A deliberate attempt by a business or brand to associate itself with an event (often a sporting event) in order to gain some of the benefits associated with being an official sponsor without incurring the costs of sponsorship. For example by advertising during television coverage of the event.

Marketing Ideas

Innovative Marketing Solutions for Your Business

 

Utilizing creative marketing idea with a dash of guerilla marketing, Hold Time Studios productions are an effective and affordable way to target your best customer... the one who is calling you. Need good marketing ideas? Below you’ll find some of our innovative marketing techniques that turn dull music on hold marketing campaigns into consumer-targeted messages that will "roll out the red carpet for your phone system!" Here are some unique marketing ideas that will engage your customer through our specialty of on hold productions.

- Promote changes in your business:

• New products and services
• New location
• New promotions
• New management or ownership.
• How are you telling your customers about new and exciting changes?

- Engage your customer with advertising that makes you look like the expert.

• Industry statistics
• Range of expertise
• Depth of understanding
• Cool brand image
• Geographical reach

“Social Marketing Going Mainstream, but Experimenting Is Still Key”

Brand managers are split on the current state of social marketing in their organizations: 50.8% say marketing via social media is already mainstream or will become so by the end of 2012, but nearly an equal proportion (49.2%) say social marketing will likely still be characterized by continued experimentation by the year-end.

Thought of the day

“No act of kindness,
no matter how small,
is ever wasted.”

Case Study on DELL – DISTRIBUTION NETWORK

Dell’s presence in India is no surprise. India is one of the most important emerging markets in the world. For years, selling PCs in Asia largely meant China . However, PC makers have recognized the importance of the giant Indian market , its booming economy and annual growth at more than 9%. Dell started in India about seven or eight years back by opening a customer contact center at Bangalore in 2001. In 2003, the second contact center opened at Hyderabad. The company operates its services from four centers based at Bangalore, Hyderabad, Chandigarh and Gurgaon. Dell started in Bangalore providing customer support to English speaking countries and later also began providing technical support, procurement of financial back office and Knowledge process outsourcing. After the U.S., Dell India is the second biggest center with 23,000 employees. The strategic importance of India to Dell is evident from the fact that India was one among three locations (the other two being US and UK) where Dell’s Latitude E series and Precision notebooks were launched. In India, Dell already has a 23,000-strong workforce in about 10 years of operations and business from India is closing in on the $1 billion mark. Dell has nearly 13 per cent share of the Indian market. Dell’s channel strategy is to make technology more available to small and medium businesses (SMBs). Dell’s channel partners contribute 22% to its total revenue globally. Out of 10 million SMB customers across the globe, Dell caters to 12,000 SMB customers in India. As per estimates, SMB market in India has over 7 to 13 million customers. Among the BRIC countries and U.S., India is ranked second for the number of SMBs. According to IDC, since 2005, HP has held the number one position in the Indian PC market every quarter (for the past six years).