business behaviour, retail management small industries

2014-2015

Submitted toMr.K.C. Sodani sir

Submitted ByMonika KalalM Com II Sem Bus. Ad.

UCCMS MLSU M. Com. 2nd Sem Presentation

It is my pleasant duty to pay my sincere gratitude and heartily thanks to all those who encouraged guided and helped me in the completion and requirement of this project.

Firstly I would like to express my deep gratitude and respect to the Coordinator for her kind cooperation throughout the project.

I am very thankful to our respected sir for her valuable guidance and constant encouragement at time when I had obstacles in this project.

ACKNOWLEDGEMENT

1. Organization Behavior2.Labour Legislation in India3. Business & Eco. Envi.4. Retail Management5. Management of Small Enterprises

SUBJECTS

Title Presentation

1. Organization Behavior

MOTIVATION

MOTIVATION

• Motivation is defined as “the extent to which persistent effort is directed toward a goal”

1. Effort - must be defined in relation to its appropriateness to the objectives being pursued.

2. Persistence - relates to the willingness of the individual to stay with a task until it is complete

3. Direction - measured in terms of how persistent effort is applied in relation to the goals being pursued

4. Goals - individual goals and organizational goals (must be compatible)

Types of motivation

• Extrinsic Motivation - Factors in the external environment such as

pay, supervision, benefits, and job perks• Intrinsic Motivation - Relationship between the worker and the task

5 Ways to Motivate a Team

1. Figure out what makes them tick (individual needs)

2. Give clear expectations3. Consistent reinforcement and consequences4. Healthy competition5. Change out team members

Needs-based Motivation

• Maslow’s Hierarchy of Needs: Physiological Safety Relationship Esteem Self-actualization

• The more you move from basic to higher level needs, the more motivation depends on internal factors

• Important that organizations present opportunities to satisfy such needs

Needs-based Motivation

• Alderfer’s ERG Theory: Existence Relatedness Growth

• Similar to Maslow’s Hierarchy in that it focuses on a differing levels of needs, which are usually satisfied in order of importance

• Unlike Maslow’s theory in that it allows for higher needs to be met before lower-level needs under certain circumstances

Needs-based Motivation

• McClelland’s Theory of Needs: Achievement Affiliation Power

• Concerned with the behavioral consequences of need• Non-hierarchical

Needs-based Motivation

• These three theories present a useful approach for thinking about organizational behavior

• One is not inherently better than the other; The point is to apply the concepts of internal/external motivation to individual situations

Motivational Goals

Most goals fall within two categories:• Performance goal - individual is concerned

with acquiring favorable judgment from his or her peers, supervisors, or authority figures (extrinsic)

• Learning goal - individual uses feedback to increase his or her competence (intrinsic)

Title Presentation

2.Labour Legislation in India

Employee Provident fund Act 1952

Employee Provident fund Act 1952

IntroductionQ: What is a Provident Fund ?

Ans: It is a mandatory, tax-qualified, defined, contribution retiral benefit plan wherein equal contribution

at the specified rateis made by the employer and the employee and the same is payable in lump sum on retirement.

To every factory employing 20 or more persons.

Any establishment to which the Act applies shall continue to be governed by the Act even if the number of persons employed therein at any time falls below.

EAPPLICABILITY OF THE ACT

The Employees’ Provident Funds Scheme, 1952

Applicability : Every employee employed in or in connection with the work of a factory or other establishment covered by the schemes other than an excluded employee is entitled and required to become a member of the fund from the date of joining the factory or establishment.

Excluded Employee :

An employee who, having been a member of the fund, has withdrawn the full amount of his contribution in the fund (a) on retirement from service after attaining the age of 55 years or (b) before migration from India for permanent settlement abroad; or for taking employment abroad

An employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds Rs. 6,500/- per month.

A person who, is an apprentice, or who is declared to be an apprentice by the authority specified in this behalf by the appropriate Government.

Contribution under EPF Scheme,1952

1. Employees : 12% on Basic + DA2. Employer : (a) 3.67% on Basic + DA (b) Administrative Charges : 1.10% on Basic +DA

Compliances under EPF & MP Act, 1952

In SBIBefore 15th of every month

ChallanMonthly contribution of Employer & Employee in Challan for previous month

2.

RPFC officeBefore 25th of every month

12AMonthly Return4

RPFC officeBefore 15th of every month

10Return of Employees Leaving3

RPFC officeBefore 15th of every month

5Return of Employees Qualifying

2.

RPFC officeAt the time of joining

2Declaration Form from new Joinees

1.

Remark / Submitted to

Compliance Date

Form No.

Type of ComplianceSr. No.

Compliances under EPF & MP Act, 1952

RPFC officeWhen new Recruit

13Transfer of PF A/c6.

After 5 Years of membership

31Advances for various Purpose

8.

RPFC officeAt the time of Leaving the service

19, 10C & 10D

Final settlement7.

RPFC officeBefore 30th of April

3A & 6AAnnual return & reconciliation statement

5.

Remark / Submitted to

Compliance Date

Form No.Type of ComplianceSr. No.

Title Presentation

3.Business & Eco. Envi

Foreign Direct Investment

Foreign Direct Investment

Definition of 'Foreign Direct Investment - FDI'

An investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies.

FDI equity inflows into India:Thirteen-fold growth between 2003-04 and 2009-10

FDI inflows into India:In terms of international practices of calculating FDI (i.e. by taking into account re-invested earnings and other capital), FDI inflows were nearly US $ 37.18 billion during 2009-10

Stable pace of inflows:FDI inflows have somewhat flattened out over the course of the last three yearsHowever, the pace of inflows has been stableThis is including during 2009-10, at the height of the global economic slowdown

This is despite a significant fall in global FDI inflows

GROWTH IN FDI

INDIA AS AN INVESTMENT DESTINATION

India rated as one of the most attractive investment destinations across the globe.Second most attractive location for FDI for 2010-2012:

UNCTAD World Investment Report (WIR), 2010Second most promising country for overseas business operations:

2009 survey of the Japan Bank for International Cooperation

INDIA’s GLOBAL POSITION

FDI Inflows:Global rank :

32nd in 20019th in 2009

Rank among developing countries:13th in 20054th in 2009

India’s share of world FDI inflows:0.78% in 20053.11% in 2009

RECENT CHANGES IN FDI POLICY

Press Note 1 of 2010:Recommendations of FIPB on proposals with total foreign equity inflow of more than Rs. 1200 crore only to be now placed for consideration of CCEA, as against the earlier limit of cases with a total investment of Rs. 600 croreA number of other categories of cases also exempted from the requirement of obtaining prior approval of Government

Other than liberalization of the policy, simplification and rationalization of the FDI policy has also been an important component of the reforms

STOCKHOLDER CONSULTATIONS ON FDI POLICY

Initiation of stakeholder consultations, by inviting suggestions on various aspects of FDI policy, including sectoral policiesDiscussion papers released for stakeholder comments:

FDI in retail sectorFDI in defence sectorApproval of foreign/ technical collaborations in case of existing ventures/ tie-ups in IndiaIssue of shares for considerations other than cashFDI in Limited Liability Partnerships (LLPs)

STREAMLINING THE BUSINESS ENVIRONMENT

Concerted efforts, in partnership with various State Government and Business Associations, to make regulations conducive for business including:

establishment of online single-windowsadoption of nation and international best practicessimplification of tax-regime etc.

Initiation of implementation of the e-Biz Project:a Mission Mode Project under the National e-Governance Projectto provide online registration and filing payment servicesfor investors and business houses

Setting up of ‘Invest India’:a not-for-profit, joint-venture company between the DIPP and FICCIsingle window facilitatorfor prospective overseas investorsto act as a structured mechanism for attracting investment

STREAMLINING THE BUSINESS ENVIRONMENT

Title Presentation

4. Retail Management

Retail Communication Mix

Retail Communication Mix

A communication program that is designed to achieve a variety of objectives for the retailer, such as building a brand image of the retailer in the customers mind, increasing sales and store traffic, providing information about the retailers location and offering, and announcing special activities.• In store- VM- Store Design - Employees•Outside the store - Advertising - Direct Marketing -- Social Media

Retailers communicate with customers through :

• advertising, •sales promotions,• store atmosphere,• Web sites, •salespeople,• e-mail, •direct mail, •m-commerce, •community building,• publicity,• and word of mouth.

•These elements in the communication mix must be coordinated so customers have a clear, distinct image of the retailer and are not confused by conflicting information.

Can retailers build brand equity for their stores and their private-label merchandise?

Why do retailers/brands need to have an integrated marketing communication program

What steps are involved in developing a communication program?

Agenda

Objectives of Communication Program

Short-termIncrease TrafficIncrease Sales

Long-termBuild Brand (retailer’s name) ImageCreate Customer Loyalty

Brands

Distinguishing name or symbol, such as a logo, that identifies the products or services offered by a seller and differentiates those products and services from those offered by competitors

The McGraw-Hill Companies, Inc./Bob Coyle, photographerThe McGraw-Hill Companies, Inc./John Flournoy, photographer

Value to Retailers (Brand Equity)• Attract Customers• Build Loyalty• Higher Prices Leading to

Higher Gross Margin• Reduced Promotional Expenses• Facilitates Entry into New Markets

Gap GapKids

Value to Customers• Promises Consistent Quality• Simplifies Buying Process• Reduces Time and Effort Searching for

Information About Merchandise/Retailer

Value of Brand Image

16-37

Consistent ReinforcementThe retailer’s brand image is developed and maintained through

the retailer’s communication mix

Retail Communication Mix

Methods of Communicating with Customers

• Mobile marketing is marketing through wireless handheld devices, such as cellular telephones, and m-commerce or mobile commerce involves completing a transaction via the cell phone.

Direct Marketing

Online Marketing

Web Sites

Blogs

Social Media

Sales Promotions

Personal Selling

• A communication process in which sales associates help customers satisfy their needs through face-to-face exchanges of information.

Advertising

Newspapers

Magazines

TelevisionRadio

Co-op Programs

Public Relations (PR)

• Managing communications and relationships to achieve various objectives– Building and maintaining a positive image of the

retailer– Handling or heading off unfavorable stories or events– Maintaining positive relationships with the media

• In many cases, public relations activities support other promotional efforts by generating “free” media attention and general goodwill.

Planning the Retail Communication Program

Title Presentation

5. Management of Small Enterprises

Environment of small scale Industry

Environment of small scale Industry

WHAT ARE SSIs?

As per the latest definition which is effective since December 21, 1999, for any industrial unit to be regarded as Small Scale Industrial unit the following conditions are to be satisfied: -

• Investment in fixed assets like plants and equipment's either held on ownership term on lease or on hire purchase should not be more than Rs 10 million.

• Less than 150 employees in a unit.

INTRODUCTION• The policy reservation of items for manufacturing in SSIs was introduced in

1967. Initially only 47 items were reserved, but as of today about 675 items are reserved.

• SSIs are the second largest employers of Human resources after agriculture in India.

• They generate more employment opportunities per unit of capital invested than large-scale industries.

• Employment provided to more than 273. 97 lakh persons.

Classification of SSIs

TRADITIONAL SSIs• It includes khadi and

handloom, village industries,handicrafts, sericulture, etc

MODERN SSIs• Modern SSIs produce wide

range of goods from comparatively simple items to sophisticated products such as television sets, electronics, control system, various engineering products etc.

IMPORTANCE OF SMALL SCALE INDUSTRIES

1. EMPLOYMENT• SSIs are labor intensive so there is a great employment potential.• Large-scale industries are capital intensive, hence not in a position to solve

acute unemployment problems in India. • SSI employed 129.80 lakh people in 1991-92 which increased to 239.09

lakh in 2000-01 and further to 294.91 lakh in 2005-06.

2. CAPITAL LIGHT

• India is a capital scarce country, which is why we need to make optimum use of all the capital and resources available in terms of employment and productivity.

• SSIs are capital light and hence more suitable to underdeveloped nations.• Limited capital is needed to start an SSI, the returns are quick, and those

returns can again be reinvested.

3. SKILL LIGHT AND IMPORT LIGHT

• No technological skill or managerial skill required.• More suitable to underdeveloped countries where literacy rate is low and

skilled labor is scarce. • Require less import of machinery, technical skill hence placing little or no

strain on the scarce foreign exchange reserves of developing nations.

4. MOBILIZATION OF CAPITAL RESOURCE AND ENTREPRENEURIAL SKILL

• Easy mobilization of capital, entrepreneurial skill and other sources all over the country.

• Savings in rural areas can be mobilized by SSIs more easily then large scale industries.

• Idle resources can be put to effective use.

5. SUPPORT TO AGRICULTURE AND LARGE-SCALE INDUSTRIES

• They help supply inputs , processing facilities as well as consumer goods to rural masses.

• Rural based SSIs help absorb all the surplus labor in villages and towns thus improving the productivity in the agricultural sector.

• SSIs also help large scale industries by supplying spare parts, components etc.

6. REGIONAL DISPERSAL OF INDUSTRIES AND BALANCED REGIONAL DEVELOPMENT

• Political, social and economic factors affect the development of all regions. • Some regions are more developed while others continue to lag behind.• Large scale industries are mostly centered in some big cities, while SSIs help

decentralize industries thus helping avoid, space crunch, slum development problems etc.

• Since SSIs are easy to set up, they can be set up anywhere and hence contribute to a balanced regional development.

7. REDUCTION IN INCOME-INEQUALITIES AND EQUITABLE DISTRIBUTION OF NATIONAL INCOME

• SSIs help equitable distribution of national income because of 2 reasons:a) Ownership of SSI is more widespread than large-scale industries.b) SSIs possess large employment potential.

8. CONTRIBUTION TO EXPORTS AND INDUSTRIAL OUTPUT

• 45%-50% of the Indian Exports is being contributed by SSI Sector.• Direct exports from the SSI Sector account for nearly 35% of total exports.• It is estimated that small scale industrial units contribute around 15% to

exports indirectly. • The exports from SSI sector has been clocking excellent growth rates mostly

fuelled by the performance of garment, leather and gems and jewellery units from this sector.

• No. of industrial units has grown from 23.9L in ‘93-94 to 118. 59L in ‘04-05. Output has increased from 241,648 cr in ‘93-94 to 4,18,263 cr in ‘04-05.

9. LESS INDUSTRIAL DISPUTES

• Do not face problem of frequent strikes and lockouts. Hence no loss of man-days and output in SSIs.

Business administration is the process of managing workers and allocating resources efficiently and effectively by applying microeconomic principles. The goal is to achieve stability, growth and profitability for a business. Business administration is a function of organizational structure, the desired system of task allocation, coordination and supervision. Some businesses choose to have a hierarchical structure, in which stockholders, a board of directors, an executive committee and managers work together through a system of checks and balances to achieve desired objectives. Depending on the organizational structure, some or all of these business administrators work together to apply business principles such as accounting, marketing, finance and management to effectively work toward their common goals

Conclusion