Wednesday, March 30, 2011

The web nets young spenders


The heterogeneity that characterizes the modern Indian consumer has created a maze that marketers would like to unravel in order to target their products and services precisely. In this fortnightly series, Indicus Analytics presents the various facets of urban consumers, across geographies and socioeconomic groups

The youngest and smallest sub-segment of urban SEC (socio-economic classification) D is made up of households whose chief wage earners are single or married but without children, and who may be a skilled worker with primary school education or an unskilled worker who may have gone to college.
A majority of these chief wage earners are less than 25 years of age and in two- thirds of the households, they live alone. There is a mix of educational qualifications within this group, and some have gone to college, but less than half of them have completed high school and more than a third have completed middle school. With low education and experience, employment clearly is taken up wherever it is offered.
Manufacturing, trade, hotels and trans- port, storage and communication are the four leading sectors of employment. How- ever, different cities have different prominent sectors of employment. For instance, Faridabad, Ludhiana, Surat, Amritsar and Thane have the highest shares employed in manufacturing. In Sonepat, south Goa, Nadia and Hugli, it is trade that is the dominant sector. Yet in most cases the chief wage earners fall in the contractual category; just a little over one-third have regular salaried jobs and fewer than one- fourth are self-employed, running their own businesses.

Case Study

A temporary work agency may have a standard set of tests to judge the competence of the secretarial or clerical skills of an applicant. An applicant is hired based on their scores on these tests, and is placed into a database. Companies or individuals looking to hire someone temporarily contact the agency and describe the skill set they are seeking. A temporary employee is then found in the database and is contacted to see if they would be interested in taking the assignment. When a temporary employee agrees to an assignment, they receive instructions pertaining to the job. Information is provided on correct work attire, work hours, wages, and who to report to. If a temporary employee arrives at a job assignment and is asked to perform duties not described when they accepted the job, they may call an agency representative for clarification. If they choose not to continue on the assignment based on these discrepancies, they will most likely lose pay and may undermine chances at other job opportunities. However, some agencies guarantee an employee a certain number of hours pay if, once the temporary employee arrives, there is no work or the work isn't as described. Most agencies do not require an employee to continue work if the discrepancies are enough to make it difficult for the employee to actually do the work. Temporary employment is still considered employment, which means an unemployed worker's benefits may be affected by the additional income. Under certain circumstances, unemployment benefit may be calculated according to the last work performed, not necessarily the last permanent employer. This means if a laid-off factory worker accepts minimum wage temporary employment and then becomes unemployed again; his or her unemployment benefits may only be based on the lower wages of the temporary position, not the higher wages of the factory job. Some workers may find it more beneficial to remain on unemployment rather than work a temporary job for less money.

Business News

·         New bank licence guidelines this week
·         Electrotherm in JV with Immodo Solar
New bank licence guidelines this week
The Reserve Bank of India (RBI) will announce draft guidelines for giving new banking licences in the next few days, the finance ministry said on Monday. “RBI will come up with the guidelines by the end of this month,“ department of economic affairs secretary R. Gopalan said.
Electrotherm in JV with Immodo Solar
Electrotherm Ltd, an Ahmedabad based firm having interests in steel, electronic automobiles, furnace and renewable energy sectors, on Mon day announced a joint venture (JV) with Immodo Solar SA, to carry out solar pho tovoltaic projects for solar farms, grid and offgrid applications.

Business News

·         New bank licence guidelines this week
·         Electrotherm in JV with Immodo Solar

Thought of the Day

Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.
                                                                                                              
     -Stephen Covey

Marketing Glossary

Balloon Test
In marketing research, a projective interviewing technique in which respondents are presented with a cartoon strip in which there is a blank balloon above the heads of one or more of the characters; respondents are asked to write inside the balloons what they believe the characters are saying. It also referred to as a cartoon test.
Behavioral data
Information that describes the needs, urges, drives, desires and impulse which direct a consumer’s spending
Below-the-line advertising
All advertising by means other than five major media-the press, television, radio, cinema and outdoors; below-the-line advertising employs a variety of method- direct mail

How humane are you towards your human assets?

“Our assets walk out of the door each evening. We have to make sure that they come back the next morning,”                                                     
-N.R. Narayana Murthy, CEO, Infosys.
In today’s knowledge economy, the single most important and powerful factor that differentiates one organization from another is the human resources (HR) or human assets. While humans can be physically replaced, the skill-sets and knowledge of a person leaving an organization cannot be exactly replaced by the successor. This is why loss of human resources is considered as the greatest loss to any organization.
The individual skills and expertise of humans in various fields are indispensable in enhancing the corporate values of organizations and their clients. Dr. R.A. Mashelkar, former Director-General of Indian Council for Scientific and Industrial Research (ICSIR), and ex-Chairman of the Standing Committee on IT of World Intellectual Property Organization (WIPO), Geneva, once rightly said, “Tomorrow’s wars will be fought not by conventional weapons, guns, missiles and so on, but in the knowledge markets, with new thermonuclear weapons called information and knowledge.” Humans are the storehouse of information, knowledge, and experience, and can leverage the growth of an organization by translating their intangible knowledge and experience into tangible wealth. Apart from the ability to convert experience into knowledge, humans also possess the ability to acquire new knowledge through the process of learning. This knowledge assumes immense potential when it is properly harnessed and disseminated for the organization’s benefit.

Tuesday, March 29, 2011

Case Study

Films: An Advertising Medium to Captivate Consumers

Product placement in movies has gained momentum all over the world. The practice of using branded products in Hollywood movies started as a casual process since late 1940s. Popularity of movies as a medium for product placements grew because of the increasing difficulty of using television as an effective medium to target audiences. The film medium provides an excellent message reach and message life; and an effective method of popularising and immortalising brands. Ad agencies play a vital role in placing branded products in films. Product placement has the potential to build an emotional connection with the consumer. Films have been a medium to reach out and touch a global audience in big way while TV programming is too local to accomplish. But there is no regulatory body to govern and monitor the activity of advertisers as well as producers. Also, there is no universally developed scientific method or standard to quantify and evaluate product placement performance. Are the producers and advertisers ignoring their social responsibility?

Business News

v     To start consultation on new tariff
v     SBI rights issue after April-June quarter

Thought of the Day

“To see what is right and not to do it is want of courage”.
                                                                                                                        — Confucius

Economic Glossary

1. Mixed economy
A market economy in which both private-sector firms and firms owned by government take part in economic activity. The proportions of public and private enterprise in the mix vary a great deal among countries. Since the 1980s, the public role in most mixed economies declined as nationalisation gave way to privatisation.
2. Monopsony
A market dominated by a single buyer. A monopsonist has the market power to set the price of whatever it is buying (from raw materials to labour). Under perfect competition, by contrast, no individual buyer is big enough to affect the market price of anything.

HR Issues in Mergers & Acquisitions

The post liberalization period was of mergers and acquisitions and still it is continuing as a strategic driver for market dominance, geographical expansion, leverage in resource and capability acquisition, competence, adjusting to competition. M&As are strategic alliances. People Management plays a critical role in M&A. People issues like staffing decision, organizational design, etc., are most sensitive issues in case of M&A negotiations, but it has been found that these issues are often being overlooked.
The ability to succeed in a merger depends entirely on the people who are driving the business - whether they have creativity, capacity to innovate and ability to execute, and more importantly, whether they can do these things collaboratively. To ease the merger transition and make sure the pieces fit together as seamlessly as possible; the HR should take the initiatives in management, recruitment, structure, retention, and managing cultural change. In a merger, the employees should be put in a position to see easily that there was value in their daily work lives. It is more important for the employees to be able to say that they understand why this is happening. To achieve this understanding in the employees, the company's HR executive minimize their conventional functions as administrators and payroll experts in favor of more proactive roles as coaches and profit consultants.

Winners of Various events in Kshitiz 2011

Winner's of Mr. City
LtoR Amit Kumar Aagri(Mr. Greater Noida), Kshitij Kumar(Mr. Ishan), Amitabh Sharma(Mr. City).

Winner's of Miss City
LtoR Neda Nasir(Miss Ishan), Neha dwivedi(Miss City), Priya Chaudhary (Miss Greater Noida)

Winner's of Ishan Idol
R to L Abhishek Kumar(Winner), Abhinav Singhania(1st runner up),Anil Gaur.(2nd runner up)

New Product Intorduction (Pawan Hans launches land hopping services in Andamans)

It's a bird, it's a plane, no, it's a seaplane. Making aviation history in India, state-owned Pawan Hans Helicopters Ltd (PHHL) inducted the country's first commercial seaplane — a ‘Marylyn' nine-seater Cessna aircraft — on Monday.
Soon it promises to connect most of the Andaman and Nicobar islands through these seaplanes.
At present, anyone wanting to travel between these islands has to use boats.
Cessna seaplane
The Cessna seaplane can ferry passengers and their baggage to distances within 250 km in about an hour and can land on most calm waters.
Eventually, PHHL plans to extend the service to Lakshadweep and Goa.
The launch of the seaplane service promises to open up new vistas for tourists wanting to visit far flung islands that cannot have an airport.

Monday, March 28, 2011

Case Study

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. Women are considered for HR as they can get to know and understand the candidates mindset well but according to me both can do a good job in this field but that depends on the experience as HR requires a good experience and various skills to hire, recruit, various techniques to manipulate it.

Business News

·        EIL to pick up equity in AP urea plant
·        UBI, Indiabulls get Sebi nod for MF biz

Thought of the Day

"There is no such thing as business ethics. There is only one kind -- you have to adhere to the highest standards.”
                                                                                                            — Marvin Bower

Insurance Glossary

Class 3-6 Bonds (% of PHS) - This test measures exposure to non investment grade bonds as a percentage of surplus. Generally, non investment grade bonds carry higher default and illiquidity risks. The designation of quality classifications that coincide with different bond ratings assigned by major credit rating agencies.

Coinsurance - In property insurance, requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss. For health insurance, it is a percentage of each claim above the deductible paid by the policyholder. For a 20% health insurance coinsurance clause, the policyholder pays for the deductible plus 20% of his covered losses. After paying 80% of losses up to a specified ceiling, the insurer starts paying 100% of losses.

Business Line of Sanmar Group

Corporate Headquarters: Chennai, Tamilnadu, South India

CHEMICALS: Chemicals Sanmar Ltd., TCI Sanmar Chemicals S.A.E., Sanmar Specialty Chemicals Ltd., Cabot Sanmar Ltd.

ENGINEERING: Flowserve Sanmar Ltd., BS & B Safety Systems India Ltd., Sanmar Engineering Services, Fisher Sanmar Ltd., Xomox Sanmar Ltd., Tyco Sanmar Ltd.

METALS: Sanmar Foundries Ltd., Sanmar Ferrotech Ltd., Matrix Metals LLC. Elsenwerk Erla GmbnH

SHIPPING: Sanmar Shipping Ltd.

ALGORITHMIC TRADING

A trading system that utilizes very advanced mathematical models for making transaction decisions in the financial markets. The strict rules built into the model attempt to determine the optimal time for an order to be placed that will cause the least amount of impact on a stock's price. Large blocks of shares are usually purchased by dividing the large share block into smaller lots and allowing the complex algorithms to decide when the smaller blocks are to be purchased.
                                                              Algorithmic trading represents a significant portion of trades in many major markets, including more than a third of EU and US equity trades. Algorithmic traders worldwide use MATLAB to develop, backrest, and deploy mathematical models that detect and exploit market movements

How Algorithmic Trading works

In very simple words, Algorithmic Trading is about the automation of the “Sense-Analyze-Decide-Execute” process for maximizing the profitability.
Sensing refers to sensing the market data f
rom multiple destinations. Analyzing includes statistical analysis for arbitrage and other opportunities based on different market patterns. A market pattern represents a set of historical data points and the behavior of the market at that time. Deciding refers to the use of an appropriate trading strategy for finalizing the order type, price, quantity and the marketplace for placing order. Executing refers to implementing the decision.

Saturday, March 26, 2011

Luxury consumer in India comes of age

Well-informed buyers with sizeable incomes are buying more, causing brands to rework strategies

Last year, following the re- ease of the Sex and the City sequel, TSG International Marketing Pvt. Ltd launched the Halston Heritage collection of fashion dresses in India that are marketed globally by Sarah Jessica Parker, who stars in the movie as well as the original television series. TSG operates a multibrand boutique called Kitsch in Delhi and Mumbai that stocks labels such as Alexander McQueen, Stella McCartney, Diane Von Furstenberg, Lanvin and Halston Heritage. TSG is owned by entrepreneurs Priya and Charu Sachdev.
In December, Jimmy Choo celebrated its 15th anniversary globally and simultaneously in Milan, London and Mumbai with the launch of Crystal shoes and bag collection. In India, Jimmy Choo is represented by three stores in Delhi, Mumbai and Bangalore.
As the luxury market in India evolves, luxury brand market- eers have woken up to serve a demanding, well-traveled and discerning Indian consumer.

Business News

  • India Infoline to start ETFs, index funds
  • India summons Italian ambassador

Thought of the day

“To see what is right and not to do it is want of courage”.  
                                                                                                                   
                                                                             — Confucius

IT Glossary

Network Connectivity
Connecting and communicating between two or more computers, typically over a network

Network Protocol
Standards that allow computers to communicate with each other. Protocols also define ways of handling lost or damaged data packets. The main types of network protocol are:
·         HTTP 
·         FTP

Export Finance - How Export Financing Can Help Your Business Grow

Selling your products or services in export markets can be a very profitable and a true engine for growth for your company. Manufacturers, service providers and traders can all benefit from adding foreign markets to their portfolio of customers. However, selling into export markets can also deplete your cash flow. Large companies that have a cushion of funds in the bank, usually have no problems. However, smaller and emerging firms can run into cash flow issues very quickly.

The biggest issue for exporting firms is waiting 30, 60 or even 90 days to get paid for their goods or services. Slow paying customers can really affect your company’s cash flow. This can challenges your ability to pay suppliers, employees or even rent.

MEET YOUR ALUMNI

Personal Detail

  1. Name  Jayant Prasad                                                                                          
  2. Date of Birth  25-March-1974                                         
  3. Email jayant.gurgaon@gmail.com
  4. Contact No 9164116500

Educational Qualification
  1. Graduation B.Sc. (BOT)
  2. PGDBM                                    Year   1997-99                                
  3. Any Other Qualification

Professional Details
  1. Current Job Title Manager – Sourcing (Allen Solly Denims)
  2. Current Employer Madura Fashion & Lifestyle
  3. Salary Package You should not ask Girls their age and Man how much they earn!

Thursday, March 24, 2011

Luxury malls yet to catch on as brands can’t find the right space

Luxury retailers find themselves confined to five-star hotels with realty constraints curtailing growth

 

When India's first two luxury malls opened in 2008--DLF Emporio in Delhi and UB City in Bangalore--it was welcomed by luxury retailers that had otherwise struggled to find suitable space to sell their wares.
They could now consider expanding out of the corridors of five-star hotels, where they traditionally had to confine themselves. But while the Palladium mall opened in Mumbai more than a year ago, real estate is still a challenge for luxury retailers, restricting growth in the country.
Take the French label Christian Dior. The apparel to fragrance brand scouted for a suitable space in Mumbai for more than four years before finally settling for a store in the upscale Taj Mahal Palace Hotel in October 2010. The company hasn't found a suitable space in the city for its men's collection, Dior Homme.
“Retail real estate is a huge challenge in India. Positioning is the primary factor for any luxury retailer. This is a brand building exercise for us in India right now”, said Kalyani Saha, vice-president for marketing and communication at Christian Dior Couture India.

Business News

·        Birla group, Yanzhpou eye Whitehaven bids

·        Publicis to acquire stake in Watermejon

·        Jyothy Lab acquires Diamond Fabcare

Campus Buzz

Congratulation!!!!

Two students of Ishan Family have been selected in Hyundai Mobis India Ltd for final placement
1) Harsh Sharma (14th batch) – Business Development
2) Tanvi Kathri   (15th batch) –  Management Trainee

Thought of the day

“A business that makes nothing but money is a poor kind of business.”
                                                                                                                       — Henry Ford

HR Glossary

Coaching

A one-to-one process between a manager and subordinate, whereby the former will ‘train’ the latter. See also Mentoring.

Collective Bargaining

The process by which [an] employer[s] will negotiate employment contracts with [a] union[s].

Competency-based pay

Competency based pay is a compensation system that recognizes employees for the depth, breadth, and types of skills they obtain and apply in their work. Also known as skill based and knowledge based pay.

Managing social networks during job search

What does your public profile over the internet say about you? Here’s how you can ensure that your online presence creates a favorable impression on the recruiter and gets you the interview call.
Though not a norm, but a rising trend in candidate screening these days is browsing his/her profile on social networking sites. Recruiters want to know a candidate beyond the facts and figures mentioned in the resume. Social networks like Facebook, Twitter and Orkut are becoming sources of information about a candidate’s personal traits and help in gauging if he/she would fit the workplace culture of their organization.

What does your public profile over the internet say about you, and does it add weight to your candidature? Here are some important points to ensure that your online presence creates a favourable impression on the recruiter and gets you the interview call:

Don’t speak ill about your current/previous employer
Bad mouthing your current or previous bosses is an absolute NO during interviews, as we know, but the same rule extends to your publically viewable social network profiles. It does not impress a prospective employer to see the image of your employer/company being tarnished; it only gives them an idea that you could be doing the same once you part ways with the organization. It could accelerate the process of striking out your name from the candidate list or cross out on some required qualities on the recruiter’s checklist.

Wednesday, March 23, 2011

New accounting standards may make debt instruments costlier

Debentures, FCCBs may lose sheen under new rules due to the adverse impact on financial statements

The adoption of new ac- counting standards in line with International Financial Reporting Standards, or IFRS, may increase the cost of raising debt through instruments such as debentures, preference shares and foreign currency convertible bonds (FCCBs) as the rules get tighter.
Last month, the ministry of corporate affairs or MCA issued 32 IFRS convergent ac- counting standards under the nomenclature Ind-AS (for India accounting standards).
Ind-AS was to have been adopted from the quarter starting 1 April but deadlock between the finance ministry and MCA over tax issues under the proposed regime has led to a delay. Companies are, how- ever, preparing for the new standard.
“In the post-Ind-AS regime, some financial instruments may lose their attractiveness due to the adverse impact on financial statements”, said Jamil Khatri, executive director and head of accounting advisory services at KPMG in India. “Several of these instruments are commonly used for financing by Indian companies”.

Business News

·        R-power wins five hydropower projects
·        Essar prepays Rs. 4,230 cr.
·        Entertainment media to grow at 13%

Thought of the Day

“If ethics are poor at the top, that behavior is copied down through the organization. “
                                                                                                            — Robert Noyce

Economic Glossary

1. ANTI-DUMPING MEASURES

Anti-dumping measures can be adopted after an investigation of the importing country, when dumping and material injury resulting therefrom has occurred. Dumping takes place when a product is exported at less than its normal value, i.e. the comparable price, in the ordinary course of trade, for the like product when consumed in the exporting country. Anti-dumping measures may take the form of anti-dumping duties or of price undertakings. Anti-dumping duties are generally enterprise-specific duties levied on certain goods to offset the dumping margin. Anti-dumping price undertakings may be offered to exporters to avoid the imposition of anti-dumping duties.

The value in the market at the customs frontier of a country of her imports of merchandise, other goods, etc., including all charges for transporting and insuring the goods from the country of export to the given country but excluding the cost of unloading from the ship, aircraft, etc., unless it is borne by the carrier. 

Personality Introduction (Sunil Mittal)

Chairman and Managing Director of Bharti Group, India's largest GSM-based mobile phone service provider; IT Man of the Year Award 2002 from Dataquest and CEO Of the Year, 2002 Award from World HRD Congress.

Sunil Mittal can be called as originator of cellular phone revolution in India. He is the founder, Chairman and Managing Director of Bharti Group and runs India's largest GSM-based mobile phone service.

Sunil Bharti Mittal's father was an M.P. Sunil did not followed his father's footsteps. After graduating from Punjab University in 1970s, he set up a small bicycle business in Ludhiana in partnership with his friend. By 1979, Sunil Mittal realized that his ambitions could not be fulfilled in Ludhiana, so he moved out to Mumbai from Ludhiana.

He spent a few years in Mumbai and in 1982, Sunil Mittal started a full-fledged business selling portable generators imported from Japan. This gave him a chance to acquaint himself with the nitty-gritty's of marketing and advertising. His business was running smoothly but later on the government banned the import of generators as two Indian companies were awarded licenses to manufacture generators locally.

Tuesday, March 22, 2011

GAIL may acquire stake in Nigeria LNG

State-owned GAIL (India) Ltd is among the companies being considered by Nigeria to sell a stake in Nigeria LNG Ltd, in a move that will help the world's second-fastest growing major economy se- cure energy resources.
“The Nigerian foreign minister indicated that the Nigeria LNG was considering to dilute a part of its stake, and GAIL is being considered as one of the parties,“ India's oil ministry said in a statement on Wednesday.
GAIL, as part of a consortium, is also in the race to develop Nigeria's national gas master plan and is interested in acquiring equity stakes in the upcoming multi-billion dollar Brass LNG and OK LNG projects that will enable long-term LNG supply, the statement said.
GAIL also wants to participate in petrochemical projects and city gas distribution projects in
Nigeria, it said.
“We are examining the opportunities”, said B.C. Tripathi, chairman and managing director of GAIL.

Case Study

Human rights or human wrongs?

   A factory owner in the Southeast Asian country of Malaria, Mr. Ikan Sacrudakids, was severely criticized by an international human rights organization, Human Rights Watchout. After undertaking a summer research project involving scores of college interns from Europe and the US, HRW wrote a report claiming that Mr. Sacrudakids was exploiting his workers, relying on young children of a minority ethnic group to work long hours at substandard wages. The report is published in the national newspaper, the Malaria News Press. The very next day Mr. Sacrudakids submits his own expose—of the Human Rights Watchout organization. It is also published in the News-Press. Mr. Sacrudakids’ article points out that the HRW organization itself is hardly equitable: the organization consists almost solely of one ethnic group, white Europeans and Americans; the young, previously unemployed workers often toil 60-hour work weeks to file their reports; HRW provides no job security or benefits, and offers salaries—especially to interns—at pathetically low wages relative to their peers. Some are paid hardly at all.

Business News

  • Mukesh Ambani named BofA director
  • Toyota accelerates India expansion
  • Siemens sets up financial arm in India

Campus Buzz

  • The college on occasion of Holi has declared holiday on 19th, 20th and 21st of March 2011. 
  • Due to uncertain circumstance, this year Holi would not be celebrated in the Ishan Campus. Anyways, On behalf of Ishan Family, we wish you all a Happy Holi !!!!
Thought of the day

“If ethics are poor at the top, that behavior is copied down through the organization”.
                                                                                                            — Robert Noyce

Finance Glossary

Accumulated Benefit Obligation (ABO): An approximate measure of the Liability of a Pension plan in the event of a termination at the date the calculation is performed.


Across the Board: Movement or trend in the Stock market that affects almost all stocks in all sectors to move in the same direction.


Act of State Doctrine: This doctrine says that a nation is sovereign within its own borders, and its domestic actions may not be questioned in the courts of another nation.

Humor in management (Committee Rules)

Never arrive on time, or you will be stamped a beginner.
Don't say anything until the meeting is half over; this stamps you as being wise.
Be as vague as possible; this prevents irritating the others.
When in doubt, suggest that a subcommittee be appointed.
Be the first to move for adjournment; this will make you popular - it's what everyone is waiting for.
-Harry Chapman

Thursday, March 17, 2011

Case Study

Food for the children—or bribes for the Minister of Education?

   Food for the Children, an international NGO based in the UK, provides foodgrains and powdered milk to families where children are at risk of malnourishment or starvation. It has provided food to families in the small South Pacific Island nation of Papua Tuyua for the past eight years, utilizing the school system as the means of identifying needy children and distributing the food. The Minister of Education in Papua Tuyua has approved the involvement of the school system in this project, though each year the process of approval has become more cumbersome and drawn out. Sarah Britton has arrived from London for a one week visit as the representative from Food for the Children sent to negotiate the arrangement, and she quickly comes to the opinion that the Education Minister is delaying the process in hopes for a bribe. The local school officials are eager for the food supplies and assure Sarah that they can distribute the food on their own with or without the Minister’s approval.

   Sarah sends an email to the executive committee in London requesting instructions on what she should do. The food has to be supplied within the next several days before the monsoons come.

Question:
You are members of the executive committee. What should Sarah do?

Business News

·       Honda postpones India Preview of Brio
·       Wockhardt to challenge HC order

Honda postpones India Preview of Brio
Japanese auto major Honda on Monday said it has postponed the preview of its small car Brio in India, originally scheduled for 17 March, due to the devastating earthquake and tsuna mi that hit Japan last week.
“In light of the recent devastating earthquake that hit Japan, causing massive damage to life and property, Honda Siel Cars India has postponed the Honda Brio India preview event scheduled to be held on 17 March 2011,“ the company said in a statement.

Wockhardt to challenge HC order
Pharmaceutical firm Wockhardt on Monday said it will file an appeal against the admission of petition for winding up of the company by the Bombay high court.
“The company has decided to file an appeal against the order and the petition itself and seek stay of the admission”, Wockhardt said in a filing to the Bombay Stock Exchange.

Thought of the day

“A good name is more desirable than great riches; to be esteemed is better than silver or gold.”

IB Glossary

Subsidy
Government financial assistance to a domestic producer

Systematic risk
Movements in a stock portfolio’s value attributable to macroeconomic forces affecting all firms in an economy, rather than factors specific to an individual firm.

Tax haven
A country with exceptionally low, or no, income taxes.

Questions of Reasoning

Q.1 Which of the following has the same relationship as that of money : wealth?

(A)  Pity: Kindness
(B)   Cruel : Anger
(C)  Wise : Education
(D)  Pride : Humility

Q.2 Four of the following five are alike in a certain way and so form a group. Which is the one that does not belong to that group?

(A)  Crow
(B)   Vulture
(C)  Bat
(D)  Ostrich
(E)   Eagle

Mukwano Group’s Business Line

Manufacturing:
·        Beverages: Aqua Sipi
·        Edible Oil & Fats: Nice Fry, ROKI, TAMU, SUNSEED, Three Star, MARIANA
·        Laundry & Toilet Soaps: CHAPA MUKHWANO, CHAPA NYOTA, STAR, YEYO,
·        Powder & Liquid Detergents: NOMI, SUPA
·        Personal Care & Hygiene Products: MUKHWANO FAMILY (Perfumed Jelly)
·        Domestic & Commercial Plastic Ware: Basins, Baskets, Buckets, Stools & Chairs, Containers, Crates, Cups, Hanger, Jars, Jerrycans, Kettles, Plates, Tumblers

Supply Chain: Logistics & Cargo Services, Gulf Stream Investment Ltd.

Agriculture:  Mukwano Agro Project Limited

Property Development: Royal Palms Housing Estate

Tuesday, March 15, 2011

Where children’s needs drive spending

The heterogeneity that modern Indian consumer has created a maze that marketers would like to unravel in order to target their products and services precisely. In this fortnightly series, Indicus Analytics presents the various facets of urban consumers, across geographies and socioeconomic groups.



The sub-segment of urban SEC D, where the head of the household is in his middle years, is made up of households whose chief wage earner is married with young children and who may be a skilled worker with primary school education or an unskilled worker who may have gone to college. The chief wage earners, who mostly fall in the age group of 25-44 years, are not very well-educated--more than half have just completed middle school. Yet, the majority has settled into regular salaried jobs, and a little less than 40% are self-employed, having their own units.
The sectors of employment are varied-- trade, manufacturing, transport and communication, and construction and real estate are the top four fields that have absorbed these chief wage earners. With relatively low skill and education profiles, jobs in the government or large private companies are not easy to come by, so most work in proprietorship units.
Household sizes are usually of three- four members, mostly nuclear. Though a little less than one-third do have more than two children, most of the households have one or two minors. There are 11 cities, predominantly in the north--for in- stance, Aligarh, Jalgaon, Patna, Gwalior, Meerut, etc.--where more than half the households have more than two children, At the other end of the spectrum, there are eight cities where less than 10% of the households have more than two children--six in the south and two in West Bengal. This is essentially a young segment; just 11% of the households have senior citizens. Household budgets, there- fore, would focus on education and meeting the various needs of these children. Whether it is going out for dinner or entertainment, or buying the latest in nutrition- al food, like all families, these households will put their children's needs at the top of the list.