organization behavior retail management

UNIVERSITY COLLEGE OF MANAGEMENT & STUDIES

2014-15

M COM FINAL PRESENTATION

Submitted toK C Sodani

Submitted ByDeepa AroraM Com 2nd SEM

Subject

1.Business & Economic Environment

2.Organization Behavior 3.Retail Management4.Management of Small

Enterprises 5.Labour Legislation in India.

Business & Economic Environment

Environment of Business

Environment of Business

The environment of any organization is “ the aggregate of all conditions, events and influences that surround and affect it.”Characteristics of Business Environment: Complex Dynamic Multi-faceted Far- reaching impact

Why Study Business Environment

• Development of broad strategies to ensure sustainability

• To foresee the impact of socio-economic changes at the national and international levels on firm’s ability

• Analysis of competitor’s strategies and formulation of effective counter measures

• To keep oneself dynamic

Types of Environment

• Internal Environment • External Environment–Micro environment–Macro environment

Economic Non Economic

Internal Environment

Refers to all the factors that are within an organization

which impart strengths or cause weaknesses of

strategic nature.

Controllable factors. These include:

Value system

Mission and Objectives

Management Structure and Nature

Components of Internal Environment

Human Resources

Company Image and Brand Equity

Other Factors

Physical Assets and Facilities

R & D and Technological Capabilities

Marketing Resources

Financial Resources

External Environment

• Includes all factors outside the organization which provide opportunities or pose threats to the organization

• Uncontrollable factors

• Consists of Micro and Macro environment

Micro Environment

“It consists of the factors in the company’s immediate environment that affect the performance of the company”.

SuppliersCustomersMarketing IntermediariesCompetitors PublicsFinancial Community

Macro Environment

It comprises general trends and forces that may not immediately affect the organization but sooner or later will alter the way organization operates.

Macro Environment :- Economic Non Economic

Organization Behavior

Leadership

What is leadership?

Leading people

Influencing people

Commanding people

Guiding people

Types of Leaders

• Leader by the position achieved• Leader by personality, charisma • Leader by moral example• Leader by power held• Intellectual leader• Leader because of ability to accomplish

things

Managers vs. Leaders

Managers• Focus on things• Do things right• Plan• Organize• Direct• Control• Follows the rules

Leaders• Focus on people• Do the right things• Inspire• Influence• Motivate• Build • Shape entities

Common Activities

• Planning • Organizing• Directing • Controlling

Planning

Manager• Planning• Budgeting• Sets targets• Establishes detailed

steps• Allocates resources

Leader• Devises strategy• Sets direction• Creates vision

Organizing

Manager• Creates structure• Job descriptions• Staffing • Hierarchy• Delegates• Training

Leader• Gets people on board

for strategy• Communication• Networks

Directing Work

Manager• Solves problems• Negotiates • Brings to consensus

Leader• Empowers

people• Cheerleader

Controlling

Manager • Implements control systems• Performance measures• Identifies variances• Fixes variances

Leader• Motivate• Inspire• Gives sense of

accomplishment

Retail Management

Global & Indian retail overview

Global & Indian retail overview

Retail is the sale of goods to end users, not for resale, but for use and consumption by the purchaser. The retail transaction is at the

end of the supply chain.

Manufacturers sell large quantities of products to retailers, and retailers sell small quantities of those products to consumers.

Retail

The Global Retail Industry • Of the world’s 10 largest retail companies, 7 are from the US and 3 from Europe.

• Retailing is a primary driver of the global economy.

• To maintain the highest level of profitability, retailers are establishing a presence in fertile foreign markets.

• Retail organizations now view their potential market share to include worldwide consumers, not just customers in their home country.

• Wal-Mart Dominates as the World’s Biggest Retailer and America's Biggest Grocer.

United States – Wal-Mart Stores Cash and Carry/Warehouse Club, Discount Department Store,

World's Largest Retailers by Country

Australia – Woolworths Ltd.Convenience/Forecourt Store, Discount Department Store, Electronics Specialty, Other Specialty, Supermarket

France - Carrefour Cash and Carry/Warehouse Club, Discount Department Store, Hypermarket/Supercenter/Superstore, Supermarket, convenience/forecourt store

World's Largest Retailers by Country

Germany - Metro AG Apparel/Footwear Specialty, Cash & Carry/Warehouse Club, Department Store, Electronics, Specialty, Hypermarket/Supercenter/Superstore, Other Specialty, Supermarket

Russia – X5 Retail Group N.V.

Convenience/Forecourt Store, Discount Store, Hypermarket/Supercenter/Superstore, Supermarket

United Kingdom – TescoConvenience/Forecourt Store, Department Store, Discount Department Store, Hypermarket/Supercenter/Superstore, Supermarket

Top Most International Retail Cities

Rank City% of retailers present in city

4 Dubai 45.68%

5 Madrid 44.03%

6 Moscow 42.39%

7 Berlin 40.33%

8 Munich 39.92%

9 Barcelona 39.09%

10 Tokyo 38.68%

11 Singapore 38.27%

12 Hamburg 38.27%

13 Hong Kong 37.86%

14 Milan 37.45%

15 Beijing 36.21%

Indian Retail Scenario

• Year 2010 - To Touch Rs.18,10,000 Crores.

• 13% of it i.e. Rs.2,30,000 Crs. will be Organized Retail.

• Generate Employment for 15 million people in different activities.

• Retail Segment Dominated by Food and Grocery - 59.5 % valued at Rs.7,92,000 Crores. • Followed by Clothing & Accessories - 9.9 % share at Rs.1,31,300 Crores.

Indian Retail Scenario

Indian Retail Scenario

• Indian Retail Industry- Largest Industry in India, - Employment around 8% - Contributes to over 10% of India’s GDP. By 2016:- Modern Retail Industry in India - Worth US$ 175- 200 billion

• Formats in Indian Organized Retail Sector 1. Supermarkets 2. Hypermarkets 3. Department Stores 4. Modern Format Individual Retailers 5. Specialty Chains

Management of Small Enterprises

Environment of Small Scale Industries

Introduction At present the Small Scale Industry (SSI) constitutes a

Very Important Segment of the Indian Economy & has emerged as a Dynamic & Vibrant Sector of the Economy.

The Small Scale Industry Sector holds the Key to Economic Prosperity of the Indian Economy, Characterized by abundant Labor Supply, Unemployment & Under Employment , Scarcity of Finance, Growing Modern Large Industries providing scope for development of Ancillary Industries & so on. The Small Scale Industry has grown phenomenally during the last Six Decades & has acquired a very prominent place in the Socio – Economic Development in the Country.

Classification & Definition of Industries :

The earlier concept of Industries has been changed to Enterprises. Enterprises have been classified broadly into Two Categories as Under :

1) Manufacturing Enterprises : Enterprises which are engaged in the Manufacture / Production of Goods pertaining to any Industry are referred to as “Manufacturing Enterprises”.

2) Service Enterprises : Enterprises which are engaged in providing / rendering of Services are referred to as “Service Enterprises.”

They have been defined in terms of Investment on Plant & Machinery (Excluding Land & Buildings) & further classified into 3 Categories as under :

a) Micro Enterprises : An Enterprise where the Investment on Plant & Machinery is upto Rs. 25 Lakh is referred to as a “Micro Enterprise.”

b) Small Enterprises : An Enterprise where the Investment on Plant & Machinery is above Rs. 25 Lakh upto Rs. 5 Crore is referred to as “Small Enterprise.”

c) Medium Enterprises : An Enterprise where the Investment on Plant & Machinery is above Rs. 5 Crore & upto Rs. 10 Crore is referred to as “Medium Enterprise.”

I) Manufacturing Enterprises

They have been defined in terms of their Investment in Equipment (excluding Land & Building) & further classified into 3 Categories as under :

1) Micro Enterprises : An Enterprise where the Investment in Equipment is upto Rs. 10 Lakh is referred to as “Micro Enterprise.”

2) Small Enterprises : An Enterprise, where the Investment in equipment is above Rs. 10 Lakh & upto Rs. 2 Crore is referred to as “Small Enterprise.”

3) Medium Enterprises : An Enterprise, where the Investment in Equipment is above Rs. 2 Crore & upto Rs. 5 Crore is referred to as “Medium Enterprise.”

II) Service Enterprises

Advantages of Small Enterprises : They are the Back Bone of the Industrial Activity in the Country & are

playing a very important role in improving the Socio – Economic Conditions of the people. Advantages of these Enterprises are as follows

1) They create greater Employment Opportunities thro Labor Intensive processes & thereby help in tackling the Unemployment Problem.

2) They have Low Gestation Period & thereby Expensive Financial Resources are not idled unproductively for long periods.

3) They can be set up easily in Rural & Backward Areas.

4) They need Small / Local / Regional Market.

5) They encourage growth of Local Entrepreneurship.

6) They create Decentralized pattern of Ownership.

7) They foster Diversification of Economic Activities.

8) They Innovate & Introduce New Products particularly to cater to Local Needs.

9) They influence & improve Standard of Living of Local People.

10) They provide equitable dispersal of enterprises throughout Rural & Backward Areas.

11) They earn Vital Foreign Exchange for the Country through their Exports of Goods / Services.

12) They Increase Revenue to Central & State Govts by way of Taxes Paid by them.

Advantages of Small Enterprises :

Labour Legislation in India.

Employee State Insurance Act, The

Maternity Benefit Act 1961

THE FACTORIES ACT, 1948

• Act which makes it obligatory on the part of the employer to provide for the health, safety and welfare of the workers employed.

Act extends to the whole of India.

• Applies to every factory wherein 10 or more workers are or were employed, if run with power and 20 or more workers are or were employed, if run without power.

• Application to factories with fewer workers u/s 85

PROVIDES for• Hours of work (adult) not to exceed 48 hours in a week or 9

hours in a day.• Relaxation: Where an adult worker is engaged in urgent

repairs.• Payment of Overtime wages for overstay at workplace @

twice the ordinary rate of wages.• Provision relating to hours of work not applicable to

supervisory staff.• Weekly Holiday: No work for more than 10 days without a

day of rest.• Intervals of rest: half an hour for 5 hours of work• No child (who has not attained the age of 15 years) be

permitted to work.• Prohibition of employment of Women: No woman shall be

employed in any factory for more than 9 hours in any day or between 7 pm and 6 am.

Factories Act now allows women to work night shifts PROVIDED

• adequate safeguards in the factory as regards occupational safety and health, equal opportunity for women workers, adequate protection of their dignity, honor and safety and their transportation from the factory premises to the nearest point of their residence" are made.

Leave with Wages

• @ 1day for every 20 days provided -----

240 days of work during preceding year.• Days of lay off, paid holidays or leave days

considered• Encashment of unavailed leave: Encashable at

the present rate of wages.

THE MATERNITY BENEFIT ACT, 1961

• The Act extends to the whole of India except Jammu & Kashmir

• Applies to every factory, shop or establishment

• Woman entitled to maternity benefit not withstanding the application of the Employees State Insurance Act, 1948

Employer to ensure……

• No woman works during the six weeks immediately following the day of her delivery or her miscarriage

• No woman does any arduous work during the period of ten weeks from the expected date of delivery

• Not to discharge or dismiss a woman during her pregnancy

Eligibility

• Work of 160 days in the 12 months immediately preceding the date of delivery.

• Leave days & lay offs taken as worked.

Benefit

• 12 weeks leave of which not more than 6 weeks shall precede the date of her expected delivery

• The benefit to be paid @ average rate of wages for the three months preceding her maternity leave

• In case of miscarriage, 6 weeks leave with pay at the same rate as applicable to maternity benefit.