seminar test

7/30/2019 Seminar Test

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Current Issues in Management

Many companies are starting to monitor and manage key indicators. Substantial evidences prove that

addressing such issues can directly cut cost and save money. As such, these can evaluate the application of

management theory and how company are putting those in practices specifically those that can have impact on

the companys reputation.

1) Corporate Social Responsibility (CSR)

The corporate social responsibility concerns the social environment and a changed social contract. Many

argued that organizations must consider the societal impact of their decisions and actions. Furthermore, the

organizations must act to protect and improve the welfare of the general public. The organizations must aim not

only on organizational effectiveness but on existence to address the needs of society (, 2003, ).

According to (1985), the social contract follows the obligation between the organization and the

individuals, groups and other organizations, government and the society as a whole. These are set of written and

unwritten rules and assumptions in a corporate manner. Such obligations discuss behaviour patterns among

various elements of society.

The obligation to individual includes equitable wages, salaries and remuneration packages and suitable

working conditions. In return of these obligations, the duties and responsibilities must be carried-out by the

employees. The obligations to groups and other organizations require the company to compete within acceptable

means. In effect, the competition must be carried-out with respect to mutual rights and obligations of trading

partners and other businesses and companies. The most notable feature of governmental obligations of

organizations is the existence of mutually beneficial exchange evident through tax payments and implementation

of health and safety standards. Societal obligations deals with law-abiding activities of the organization like the

consumer group (, 1985, ).

The underlying issues, however, are the changing values of government, business, education, religion,

work force and society. Over the past 50 years, the government tended to get more powerful, more oppressive

and more righteous. Many social ills are needed to be rectified and be improved upon. Businesses do have

responsibility to society and likewise the society has some responsibilities to the corporate world. These

obligations include: setting clear and consistent rules, keeping economically- and technically-feasible rules,

making proactive rules and striving at goal-setting rules (as cited in ., 1989, ).

If the government will honestly implement and adhered to by the government and industries, there might

be a possibility of a much effective relationsh ip. As to all of this are considerable talk and lip service, the

cooperation between business and government will be a big challenge.

The continuous foreign and domestic takeovers, imbalance between export and import, the high value of

dollar and inflation changes the pace of the business sector and it affects the consumer behaviour and the

society. However, it can be minimize through involvement of the worker-business to hep increase productivity.


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The knowledge in history, geography classics and government are poorly integrated in the educational

systems. Aside from this, other areas such as morals, social concepts and values and how business works

reached the bottom level in recent years. Some universities and educational institutions are somewhat neglecting

their purpose of educating the minds of the people.

Through judicial rulings, the work ethic and ethical-moral standards are not prospering under religious

principles. The government are not realizing the impact of this on business and societal processes.

Labor will be more demanding upon management in the future without a large influx and unless industry

is able to expand rapidly, said . (1989, ). He relates that the rapid growth of the 20-44-year-od age groups and

the small growth of the population in the 1-9-year-old bracket will create serious managerial problems 10 to 20

years.

The stakeholders demand on businesses to grant their desires more than what they really need and

deserve perceives the societys need and demands from the business sector. Immediate changes over a

relatively short period will do no good to the company and eventually to the society (., 1989).

2) Business Ethics

Some major corporation faced scandals and unethical acts which lead to public distrust in one time or

another. The word ethicsmeans character or customs. As such, the organizations codes and by-laws must

convey moral integrity and values in serving the public to avoid misgivings and scepticism. However, other

organizations are concern with the greater specificity, usefulness and consistency of ethics (, 2003, ).

Ethical behaviour deals with the morally-acceptable and commonly-held values which are consistent to

personal perception of values. In an organization, many would question the rightfulness of different acts such as:

Is it ethical to do personal business on company time? Is it unethical to ask someone to do a certain job that

might not be good for their career progress? (, 2003).

Thus, we can define business ethics as perception of right or wrong in the behaviour and practices of the

business. It is divided into two as normative business ethics and descriptive business ethics. A growing

misconception is the difference of the two.

In business context and practices, the normative business ethics deal with establishing ethical from

unethical. It concerns with what ought to be and what ought not to be. Descriptive business ethics, in contrast,

is the comparison and contrasts of different moral codes, systems, beliefs, practices and values. It is learning

about real occurrences in business organizations, managers, and specific industries regarding behaviour,

actions, decisions, policies and practices (, 2003).

The distinction between the two perspectives must be clarified once and for all. So that the prevalence of

a particular practice of a certain organization that is perceived to be true and acceptable by other organizations

wont be justified rather be corrected. Aside from this, questionable deeds of organizations will be addressed on

individual, organizational, industry, societal and international levels (, 2003, ).


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Another management challenge is the teachability of business ethics and the learnability of the

employees in accordance with their personal perception and values regarding business ethics. According to ,

business institutions cannot taught students something as fundamental as moral principles and ethical values as

a kind of professional add-ons (2006). What is the sense of putting ethical components on standard curriculum?

What is the theoretical extent in comparison to business reality of such teachings would be?

The impact of such observation points toward the relative interconnection between business schools,

business theories and business realities. The ability to impart morality and inculcate virtue to future mangers is

their job. In reality, business ethics is viewed by many, including and ten , as sentimental common sense or a

set of excuses for being unpleasant, at best window dressing and at worst a calculated lie (as cited in , 2006).

In s point of view, business ethics can be taught and learned, but the choice on what they ought to do

(2007) lies in the hands of the company and employees. There is an urgent need of a workplace revival and

education and training in ethics and professionalism is the key.

The CEO and the senior management must consider the ethical dilemmas in the workplace. A well-written

and well-communicated acceptable code can help but it is impossible to regulate non-existence of unethical

behaviour. The bottom line is there is no legal requirement to behave ethically (, 2007). The challenge herein is

the approach to disseminate the information about codes and to avoid concentration in a certain management

level. It must be from top to bottom. If not, the result would be clogging on continuous professional development,

an open workplace culture and a clear and explicit code (, 2007).

3) Corporate Governance

The concepts of firm and the interests it govern contribute to the understanding of the issues faced by the

corporate governance. Since the term governance implies the exercise of authority, corporate governance, then,

is the study of the allocation and exercise of such authority (, 2004).

The challenge, by and large, is the extent of authority-intervention on managerial matters and how it can

affect the prevalent activities of firms and organizations. Another issue to deal with is the dispersed structure of

organizational ownership (, 2004).

The separation of the equity holder and the management creates problems, according to Blair, such as:

1) the management efficiency means having enough courage to take risks, make strategic decisions and take

advantage of investment opportunities and the management cannot submit every decision to shareholders

affirmation; 2) the control-rights of shareholders with large total of shares has a power that must be restrained; 3)

the commitment of time and resources of investors in monitoring the affairs of the organization; and 4) the

reliability and accuracy of information-needs by the investors/shareholders (as cited in , 2004, ).

The power and position of both parties must be guarded to avoid abuse and taking unfair advantages

over one another. The primary goal of the organization as a whole is somewhat overlooked the more as the

location of authority is becoming more blurry.


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procedures. , , and argue that the effectiveness of such process is poorly carried-out. When, the employees

realized that they really have little real influence on the organization, the employee will start to feel indifferent.

Since the organizations are purely hierarchical and the principles are centralized, the process appears as an

instrument for manipulating the employee opinion (1998, ).

If this is the case, the management must struggle at inculcating the sense of involvement among

employees in decision-making. Another area of concern is the motivation scheme and its significant benefits

directly to the employees of the organization.

Some organizations thrive at grouping of employees who meet regularly to tackle improvements within

the workforce of a certain organization (, , and , 1998, ). The idea is the how effective a small group in voicing

their concern regarding the work and their environment. Another thing to consider is the reflection of opinion of

the group compared to the whole work force. Such issues regarding the quality work of life and quality circles

may appear to be very broad but still they are waiting for recognition and immediate solutions.

5) Workforce Treatment and Workforce Discrimination

The work treatment and the work discrimination per se have three dimensions: the formal vs. informal,

potential vs. encountered and the perceived vs. real. These dimensions transcends across all status, race,

gender, and etc.

describes work discrimination as unfair and negative treatment of workers or job applicants based on

personal attributes that are irrelevant to job performance (2001). The nature of work is very multifaceted as it can

be experienced in pre- during and post-levels of work.

The framework of formal discrimination is based on institutional policies and decisions regarding hiring,

firing promotion, salary deductions and job assignments. In contrast, the informal discrimination deals with

interpersonal dynamics and work atmosphere such as verbal and non-verbal harassments, lack of respect,

hostility and prejudice ( and , 1984).

The second dimension involves the potential and encountered discriminations. The former deals with

actual discrimination in sexual orientation disclosures, for example. The latter refers to encountered

discriminatory practices. However, the distinction between the two is subjectivity and objectivity viewed from

neutral terms (, 2001).

The third dimension is derived from the concept occupational opportunity structures of (1980): the ideal,

real and perceived discriminations. In ideal, there is no discrimination. The comparison between perceived and

real discriminations varies from perception of individuals. The neutral situation may be interpreted and

misinterpreted as a discriminatory practice where in fact, the situation is just a result of

misconception/misperception.

6)Transparency


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Generally, transparency is critical in corporate accounting and statements. The companies must practice

publicizing in order to gain and regain the confidence of shareholders and consumers in all aspects of business.

The benefit of the people around and within the company is the avoidance of misleading informations and false

announcements (, 2001).

The management, as policymakers, must clearly provide the people truthfulness regarding their

operations and activities. In effect, the credibility of the corporate governance will be respected by the employees

and the consumers.

The continuum of economic growth includes a transparent corporate governance structure. The

interaction, without this, can lead to financial deficiency. In this regard, the financial transparency and the

corporate governance system are the key factors to encourage investors and to create a sustainable business (,

2007).

According to (2005), transparency scares business. The switch to a more open accounting can be

daunting said , vice-president of Delta Private Equity Partners. The management struggles at the significant cost

in paying consultations regarding elimination of shady schemes. The profits will be cut and may erode business

competitiveness. Not all entrepreneurs, in addition, are interested in legalizing their financials.

FDI in Retail: What it entails?

More than two decades after the first wave of reforms were introduced in the year1991; the

countrys socio-economic health has by no means become better. In the midst of these galloping

problems, the announcement by the UPA government about FDI in multi brand retail comes notas a relief but as a matter to be given a serious thought. The debate so far is threefold: (a) one

section which is drooling over the reforms and projecting huge surge of investment in

infrastructure and thereby increment in the employment levels. (b) The second group is the one

which is sceptical about the opening of markets for foreign retail giants like Walmart,Carrefour,

Kmart etc. not because they fear that it would affect the overall development of the economy.

Rather, this group fears competition from the big foreign companies which have deep pockets to

procure products from the world market. Thus, it would affect their profits by a huge margin. (c)

The third group comprises of the unorganized retail sector which fears its elimination from the

market in the long run.

Various claims made by UPA seem to fall flat on any reason if we take into consideration theoutcomes of previous reforms. Employment in formal sector has not increased by any count since

1991, informalization of labour in the formal sector is a clear indication of this fact. Productivity

in agriculture, where almost 54 per cent of the population is dependent has declined. It is no

longer a profitable venture as the input costs have gone up in the post green revolution phase.

Rise in the phenomena of rural to urban migration, rural non-farm employment, farmer suicides,

show what precarious condition agriculture has landed into. Gradual shift of the economy from

agriculture to industry, as expected in the prospects of reforms, has proven to be a fallacy.

Instead, the existing industries have become more capital intensive leading to the displacement

of labour on a mass scale. Trade liberalisation has given the global players a free hand to rein the

economy. As a consequence rate of inflation is rising unchecked as the price of crude oil is

fluctuating globally. These examples showcase that reforms and liberal policies have not led tothe overall development of the economy.


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In the light of the above observations, announcement of FDI in multi brand retail does not give

much hope. The Indian retail sector is not only very vast but also varied in its composition. The

huge population of the country, the rise of the middle class and its purchasing power and a huge

market for foreign investment in India are factors that have invoked the interest of the foreign

investors. But, it becomes imperative to see what this FDI would entail for the retail sector when

it is analyzed by keeping the informal economy at the centre of the debate.

When only 4 percent of the retail trade in India comes under the organized retail it becomes

essential to evaluate or assess the viability of FDI taking into consideration not this 4 percent but

the 96 percent which belongs to the unorganized retail sector. The unorganized retail sector is

not a homogeneous category, it comprises of peddlers, street vendors, kiosks, push-cart vendors,

weekly traders. It is not unknown that the majority of those engaged in retailing at the lower end

of the economy depend on the small and medium enterprises for their supplies. It has been

reiterated time and again, by many economists, how and under what conditions the unorganized

sector has risen to such heights in India and other developing countries via the route of the neo-

liberal regime. Indian retail market is quite diverse in terms of scale, culture and structure. Some

reasons for this diversity can be attributed to the divide that exists between rural and urbanIndia. Traditional forms of marketing (neighbourhood markets, mandis, and periodic/weekly

markets) coexist with modern day markets (supermarkets, hypermarkets, Single brand outlets

etc.). Decline of the rural economy coupled with lack of employment in the manufacturing sector

(organized sector) created a vast pool of surplus labour in the country in the post reform period.

This multitude of labour started migrating to urban centres in search of employment and many of

them landed up with self employment in the service sector of which retailing forms a huge part.

Annihilation of small scale and self employed lower middle class will lead to large scale poverty

and destitution because the unorganised sector is absorbing the shocks of migration and rural

distress. It manages by catering to middle classes in the metropolis. If this market is gone, they

will all be unemployed.

On the one hand the government is trying to convince that FDI would not harm the local trading

practices and on the other hand various traders associations, vendors are fearing its exit from the

retail market in the long run when various multi brand retail giants with their deep pockets and

marketing skills would create direct contacts with farmers and producers of essential

commodities. Whether its a small vendor selling fruits on his bicycle or a trader who has a kiosk

in a neighbourhood where he sells grocery or a weekly market trader who sells garments, all three

of them depend on a vegetable mandi, grain mandi and wholesale market for garments

respectively. With the entry of the multi-brand retail giants in the market two possibilities

emerge (a) these retail giants are expected to procure 30 percent of goods from medium scale

enterprises (but it is not necessary that these enterprises should be from the host country) thus,

in case it decides to capture the domestic market it would create direct contact with small andmedium enterprises and get commodities at the lowest possible cost and take benefit of the

economies of scale. In case this happens, then the retail giants would slowly gain hands and

monopolize the market and dictate the prices of essential commodities in the domestic market.

This would slowly displace small vendors who dont have enough working capital to compete with

retail giants. These vendors who till now were able to purchase goods from the wholesale market

by proving their credit worthiness would no longer be able to give cash and carry goods to the

retail market.

(b) Since multi brand retail stores have the liberty to buy products from anywhere in the world

and they have enough resources to conduct market research, it would explore the world market

and invest wherever they would be able to maximize their profits through final sale. In thisscenario, small vendors and traders would continue to have access to the products which are


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produced by the small scale industries but at the same time these enterprises would face severe

competition from cheap commodities imported from elsewhere. In the long run it is speculated

that the prices of their commodities would fall in the markets and sooner or later these domestic

small enterprises would be forced to quit. For example, T. Vellayan, president of the Tamil Nadu

Federation of Traders Associations gives the example of how the import of palm oil and

soyabean oil for edible purposes proved ineffectual to the oil manufacturing units. Vellore,Tiruvannamalai, Cuddalore and Villupuram districts had several stone oil presses. But these

traditional oil mills closed down. In Pudukottai district, oil mill premises have been converted

into marriage halls (Frontline, Dec.2011).

Another justification given by the government for allowing FDI is that it would stabilize the

inflationary trends that the Indian economy is witnessing for the past two years. This logic seems

to be a wishful thinking because rising inflation cannot be controlled by the multi brand retail

giants instead the prices of food grains, fruits and vegetables and essential commodities would

only increase once these retail outfits will make a market for their products in India. Price of

diesel and petrol has been exponentially hiked up; this is going to affect the cost of production

both in agriculture and manufacturing. Farmers are not going to benefit in any way as they wouldcontinue to be exploited by the multi brand retail giants in the long run. If in this context we see

the large unorganized retail sector, we can observe how small vendors of fruits and vegetables are

able contain the inflationary pressure by offering lower prices.

One round of a weekly market in the neighbourhood of Delhi or elsewhere would show that the

margins between the prices at which weekly traders sell their products and the price at which any

supermarket sells the same thing varies by more than 20 to 30 percent. Multi brand retail giants

would not only affect the price of food grains at the national level but it might also result in the

disappearance of Agricultural Produce Marketing Committees which keep a certain minimum

check on the price of the foodgrains coming to the grain markets. Thus, corporate capital would

get a free reign in the indigenous markets of India and the process of primitive accumulationwould set in as predicted by C.P. Chandrashekhar, Prabhat Patnaik et. al. This would have direct

impact on that section of the unorganized retail sector which is employed in the lowest level of

the market hierarchy who do not have ready cash to invest and whose livelihood is dependent on

the recycling of debt for a day, a week, a month or a year because the prices are going to rise in

the long run and so will the interests on the borrowed sum.

The adverse impact of the FDI would befall the unorganized retail sector with great intensity if

the State makes more stringent rules of zoning and regulation. I have been researching the local

weekly markets of Delhi for the past three years. These markets are very prominent feature in all

parts of Delhi and NCR. There are around twelve hundred weekly markets of which only one

fourth are recognized by the Municipal Corporation of Delhi (consequence of zoning).Approximately 2.5 million people are employed through these markets. This figure would just

double if we take in to account additional employment that is created around these markets.

Various own account and household enterprises are producing commodities on a daily basis for

such low end markets. Local weekly markets provide a very easy channel of distribution of

commodities produced not only in local small scale industries but also in the neighbouring

States. For instance, rubber chappals and shoes made in Agra, sarees made in Surat, hosiery

made in Coimbatore, woollens made in Ludhiana are all sold at affordable prices here in these

very markets. FDI in multi brand retail would either displace various wholesale markets or the

size of such markets would shrink. Today the local markets run on capital which has a fluid or

floating nature. But with the coming of multi brand retail stores this floating capital would freeze

and small retailers and vendors will be evicted from the market.


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It is argued by the government that FDI in retail would create employment opportunities. But

employment for whom is the crucial question? It would create employment for those who are

educated and have professional experience. Taking cue from my observation in the weekly

markets of Delhi I would argue that majority of those now employed in these markets have

minimal education and have no professional degrees apart from their marketing knowledge. Now

if FDI in multi brand retail comes, it is not in any way going to benefit these traders if they losetheir sole means of survival.

I have observed in the course of my research that through weekly markets of Delhi hundreds of

people have employed themselves who were displaced for one reason or the other. At the same

time it has created a distinct market for lower middle class who would not go to a super market or

a mall for shopping. Where will this section of population shop for daily needs with the entry of

multi brand retail outlets in case it leads to the displacement of weekly markets?

Instead of providing infrastructural facilities the State already keeps street vending, peddling and

weekly markets at the helm by keeping them in that buffer zone where it is difficult to recognize

their real viabilility for the economy at large. Often these are characterized as unlawful, black, orhidden activity.

It is my contention that in order to make way for the private capital the State might evict street

vendors, cancel their licenses, or remove tehbazaari rights for weekly markets in the times to

come. Just as in Delhi, Mumbai, Bangalore and other metropolitan cities, the State, has from

time to time uprooted slums and relocated them to the periphery of the city, to make way for the

investment by private corporate builders in order to make the city slum free. Similar decisions if

taken for the unorganized retail sector would gravely increase inequality and poverty.

Putting people on the mapLast week, the Survey of India (SOI), the mapping arm of the government, filed a police

complaint against GooglesMapathon the first ever mapping competition in India. It alleged

that Google, which had invited Indian participants to add their local knowledge to existing maps,

is likely to jeopardise national security interest and violate the National Map Policy. It also

threatened participants with potential breach of rules. In response, Google has stood its ground

and said its activities are well within the rules.

At the heart of this conflict are not legal issues as the SOI makes it out to be, but the shrinking

role of the state in disseminating geographical information. Technologies have broken

government monopoly over spatial data and are empowering communities to produce maps that

are relevant to them. Bewildered government institutions, instead of embracing innovation and

quickly adjusting to changes, are seeking the coercive power of rules to maintain dominance and

stifle innovation.

For more than two centuries, the SOI has been surveying the country and producing

topographical and special maps of different scales. Of the two kinds of maps it publishes, Defence

Series and Open Series Maps, the second are declared as unrestricted by the Ministry of Defence.

These are the maps that can be sold to the public. Third parties can reprint and add value to

them, but only after signing an agreement and abiding by the condition set by the SOI. However,

maps of coastal areas, the region around national boundaries and of Jammu & Kashmir State are

out of bounds.


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Private enterprise

These restrictions are inconsequential. Private companies sell satellite images and maps of

Indian territories for a fee. For example,RapidEye, a private company based in Germany, offers

high resolution images of three billion square kilometres of earth area including images of the

western boundary of Jammu and Kashmir. Similarly,MapMart, the e-commerce division ofIntraSearch, Inc. a U.S.-based concern, offers images, elevation model, digital vector maps and

topographical maps of territories in India and other countries. Technology, as two geographers,

Jeremy W. Crampton and John Krygier insightfully noted, is pushing cartography out of the

control of powerful elites. Maps worldwide are accessible as never before.

Probably, anticipating such a situation, in 2005, the Indian National Map Policy envisioned that

the SOI would take a leadership role in liberalising access to spatial data. To promote this, the

national policy recommended exploration of partnerships with all sections of people and work

towards a knowledge-based society. But nothing much has changed. We are yet to witness

collaborative efforts in the scale and manner needed.

On the contrary, Google Maps and Google Earth, launched in the same year as the National Map

Policy, have taken advantage of technological solutions and allowed users to freely populate maps

with information relevant to them. As a result, they have leapfrogged to become the favourite and

frequently consulted map services. The problem is that Indian institutions still hold on to

antiquated views of maps as instruments of governmental-ity. Hence, they contain only

information that is relevant to what the state needs for administration, security and surveillance.

Everyday spaces and resources closely connected with active users have hardly been the concern.

Counter-mapping

Counter-mapping, a practice and term made popular by Nancy Lee Peluso, a political ecologist,

has challenged such state dominance and indifference. For more than a decade, it has

empowered communities to produce alternative maps that document local assets and enabled

them to make rightful claims. From Indonesia to Nicaragua, these counter-maps groups have

challenged exploitation, exclusion, and demanded democratic resource allocation. Closer home,

Transparent Chennai, a project initiated by the Institute for Financial Management and Research

and partly funded by Googles Inform and Empower initiative, helps Chennai citizens counter

inaccurate government data. By collecting information such as location of public toilets and

mapping them, local communities evaluate government performance and demand better

services.

Privacy issues

Not everything is benign about mapping practices offered by Google. Commercial exploitation of

data, invasion of privacy and illegal scooping of personal information in Google projects such as

Street View are unsettling. Oliver Burkeman, writing in The Sydney Morning Heraldon the dark

side of digital mapping, remarked that Googles and Apples maps might not just observe our

lives, but in some sense come to play a role in directing their course. They track use patterns,

manipulate data and produce maps that stealthily serve commercial interests. Burkeman wittily

observed that our search for the quickest route between two points in such map services may

throw a result that passes through at least one Starbucks shop.
http://www.rapideye.com/http://www.rapideye.com/http://www.rapideye.com/http://www.mapmart.com/http://www.mapmart.com/http://www.mapmart.com/http://www.mapmart.com/http://www.rapideye.com/


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One of the models worth looking at is New Yorks open data policy and the related BigApps

project. The city has made it mandatory for government agencies to disclose data to improve

transparency and governance. Since 2009, New York has been conducting competitions, which

encourage people to use these data and create useful applications. Digital map applications are

frequently among the prize winning ones. For example, last years prize winning entry,596 Acres,

is an online map application that helps communities find vacant public land and put it tocommon use.

Unfettered use of data and free mapping possibilities alone have the potential to check predatory

practices and state monopoly.

E-commerce in India Present and Future

Today, the market place is flooded with several e-commerce options for shoppers to

choose from. A variety of innovative products and services are being offered spoiling

customers for choice. Online shopping is no more a privilege enjoyed by your friends

and family living in the US or UK. Today, it is a reality in India. In the last couple of

years, the growth of e-commerce industry in India has been phenomenal as more

shoppers have started discovering the benefits of using this platform. There is

enough scope for online businesses in the future if they understand the Indian

shoppers psyche and cater to their needs.

Changing the game

Indian e-commerce industry has evolved over a period of time with innovations that

have changed the rules of the game globally. Cash on delivery (COD) is one such

example. In a country where credit card penetration is much lower than other

developed markets and where e-commerce companies are still working hard to build

trust among shoppers, introducing cash on delivery has been one of the key factors

for the success of the segment. At present, COD is the preferred payment mode for

close to 55-60% of all online transactions in the fashion and lifestyle segment in

India.
http://596acres.org/http://596acres.org/http://596acres.org/http://596acres.org/


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COD is here to stay owing to its convenience and its cultural affinity and will be a

major part of payment mechanisms for at least the next four to five years. Executing

COD efficiently and painlessly for the customer is critical to the success of any e-

commerce player in the country.

Delivering experiences

Besides COD, e-commerce players need to focus on customer experience as a

means to build trust and confidence. Customer experience encompasses every

interaction a customer has with your service from placing an order to interacting with

your customer service team, to the actual delivery experience.

Providing a great delivery experience is one of the core aspects to delighting

customers. This doesnt necessarily mean constantly pushing the frontier on faster

deliveries. Being a day behind the fastest in the market isnt a big deal, but trust,

consistency and reliability are more important. The more faith the customer has in

your delivery service, the more likely he is to buy again. Delivering a good

experience is critical not only to ensure repeat purchase from a customer, but also

for building a good brand image and word-of-mouth publicity.

Growing the base

Online shopping has seen a lot of traction in the last 12-18 months. India has almost

130 million online users at present, out of which as many as 10% are engaging in

online transactions. The online user base is expected to cross 300 million in the next2 3 years and a larger percentage of people are expected to transact online by

2015. This large base will provide vast scope for e-commerce businesses to

establish themselves in India.

Growing opportunities

Cities beyond metros are in the limelight for all the good reasons. On an average,

almost 50 55% of our business come from tier 2 and tier 3 cities and I believe this

ratio is similar across other ecommerce companies in the country. With metro

markets reaching saturation, I believe tier 2 and 3 cities are going to be the biggestdrivers for ecommerce businesses in India in the not so distant future. Building a

robust supply chain is critical to efficiently fulfilling orders from these cities and

tapping their full market potential.

The e-commerce industry is growing at a rapid pace and changing the dynamics of

the retail industry. In the coming years, e-commerce is expected to contribute close

to 8-10% of the total retail segment in India. This growth is bound to continue

provided e-commerce companies focus on innovating, building strong technology

infrastructure and delivering the best customer experience.


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