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billion-heartbeats · 4 years

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What happened to “merit in medical education? Neat is not so neat! We need Doctors by merit, not privilege. In majority of cases ability to pay, and not merit, is what counts. some seven lakh students “qualified” for 70,000 and odd MBBS seats this year. How can this possibly be true? Shouldn’t the cut-off be raised, so that just the top scoring 60,000 students get placed, allowing a margin for drop-outs? Here lies the master plan to subvert merit in medical admissions. Since NEET became mandatory in 2016, the cut-offs in the new regime have also been decreasing every year. This year, the cut-off in the unreserved category went from 131 to 119, out of a total score of 720. The cut-off in the reserved category has also fallen by a similar margin, from 107 to 96, out of 720. There are also no cut-offs prescribed for individual subjects. Last year, there were people who had gotten scores of zero and even negative marks, in chemistry and physics. Yet they qualified for a medical college seat. India is still churning out large volumes of unmeritorious doctors-in-waiting glorified qualified unemployables! complexity of medical education in India Medical college admissions are driven by Money, caste and in some cases Merit! India is the only country that authorises, as official policy, the sale of medical seats by private medical colleges, implicitly accepting the principle that the ability to pay, and not merit, is what counts. There is a longstanding debate about the selection methodology that should be followed for admissions in medical colleges. A significant proportion of aspirants are able to afford medical education in private colleges without Merit! Others gain entry purely on the basis of caste. Medicine deals with human life and, consequently, there is a widespread feeling that admission criteria in medical schools should be based only on merit. Medical education is a hotly debated subject in India. Government colleges have not increased in number while new private medical colleges are established each year, many of them with dubious infrastructures and questionable motives. The fact that private colleges make obscene amounts of money and allow rich people who can afford the exorbitant fees to find entry into medical colleges without merit despite entrance examinations is anathema to many ordinary Indians. Similarly, the concept of caste-based reservation generates passionate arguments and the side one takes is generally, and indeed ironically, dictated by one`s own caste. Many have castigated the entire admission process as based on money and caste. Many support privatisations of medical education for they see it as a necessary consequence of caste-based reservations. The purist would simply want all private medical colleges shut without any debate on the subject. None of these views is without foundation. But does performance in entrance examinations define merit and measure brilliance? The examinations relate only to academic merit which is not what a doctor is all about. Moreover, true merit is the ability to convert competence into performance. However, when people put a case for merit-based entry, all they are saying is that when choosing students for a fixed number of placements, those candidates who score higher in a certain test format should be preferred over those who do not score as well. Medicine is not about knowing, say, Harrison`s textbook of internal medicine, for that is a relatively simple task and, in any case, not a measure of brilliance. It is the training component of medicine that makes a good doctor. This training gives an insight into the myriad conditions that affect humankind while imparting an ability to make sound judgements in relation to various illnesses by putting disease symptoms into a specific pattern. All of this is accomplished by well-directed effort and is the culmination of rigorous training. It requires years of experience. Anyone with reasonable ability can become a good doctor by fulfilling these conditions. Medicine needs only hard-work, diligent, committed, passionate and humane and possibly brilliant people. The growth of private medical schools in the 1980s and 1990s coincided with changing social values in India. Money is no longer seen as evil. For the average person, therefore, the private medical college graduate was out there to get returns on his or her investment. Public confidence in an interview-based selection process is bound to be low. Few institutes in India have remained free of accusations of malpractice and sooner or later, fair exit assessments would nullify the merit argument. CMC- Vellore has consistently been voted amongst India`s best medical schools despite religious sponsorships accounting for a fair proportion of places. It has even been awarded a five-star rating by the National Assessment and Accreditation Council. This further underlines the fact that academic merit is not the sole indicator of performance. A great deal of competence can be acquired with rigorous training in professional life irrespective of one`s performance in graduate level entrance examinations. The need to regulate doctors` performances throughout their professional careers cannot be over-emphasised. Archaic and outmoded rules, regulations and eligibility conditions requiring a capital base of more than Rs.350 crores have made the establishment of medical colleges a business proposition. There has been a twofold impact: • 1.commercialising the medical profession, where “recouping” the investment is the prime concern for the investor and graduating doctor alike; and • 2. an aggravated shortage of doctors in three ways: 15 per cent of those in the Non-Resident Indian quota within the 50 per cent management quota do not practice in India; of the remaining 35 per cent, many do not practice, migrate abroad or establish themselves in cities for better incomes; and, poor training makes many “unemployable” Therefore, flooding the market with doctors by opening more medical colleges to contain the menace of capitation fees without in the first instance, overhauling the regulatory framework related to quality of instruction, faculty development, better salary structures etc has little merit. NEET Undercuts Merit This is obvious from the difference of about 140 marks, or close to 20 percentage points, between the average NEET scores of admissions to over 39,000 government-controlled seats and those to the over 17,000 management and NRI quota seats in private colleges where money and fees determine admission- TOI analysed details of nearly 57,000 students admitted to 409 colleges last year. How Neat is NEET? The government has opened many new AIIMS, and has increased 5,000-odd seats in postgraduate medical education – but the situation remains dire. When there is a pest that has infested the crop, a good reap cannot be anticipated. No matter how many colleges or seats are there if 30-40% of students are fake, you cannot expect them to be able to handle the situation for saving lives. These are often referred to as “Munna-Bhais Of MBBS” This isn’t a case of loopholes but one of huge cracks in the system which has allowed so many frauds to flourish without fear and if this continues the day is not far when India would have a doomed healthcare system. Merit is a myth”, the National Eligibility-cum-Entrance Test has little to do with gauging it. Single digit and negatively ranked students are making it to the medical colleges is the hard truth! The subversion of NEET, which was made mandatory in 2016, has already begun. As a result, India is still churning out large volumes of unmeritorious doctors-in-waiting. The NEET exam was supposed to fix corruption and introduce merit into medical education. Few years since being introduced, it is already being subverted. The Union health ministry, the Medical Council of India and CBSE all have a role to play in the NEET exam for medical entrance but none of them make this data public. There are 70,000 and odd MBBS seats in India. This year, 15 lakh and more students competed for these medical college seats. I have no answers for these questions! 1.But how then did eight lakh students qualified for 70,000 seats? 2. How do people who rank four lakh and below still get admission to a medical college? 3.How is it that non-quota students who perform worse than quota students managed to get medical college seats, while highly meritorious students could not get them? Aspirants are marked out of a total score of 720. The analysis found that there was a difference of nearly 20 percentage points between the average NEET scores of these two categories – the average NEET score in government-controlled seats was 448 out of 720 whereas those who are admitted under management or NRI quota averaged a score of 306. The higher the range of fees, the lower the average NEET score’ To take a second example from the analysed data, the NRI quota has the highest fees and also the lowest NEET score – an average of just 221out of 720. A third example shows how in government colleges where the annual fee is less than Rs 50,000, the NEET score averages are at 487. But for those government colleges charging double or more than that standard benchmark, the NEET score averages are at 372. commercialisation of medical education is one of independent India’s biggest mistakes. Merit is compromised no matter what the basis of reservation is. sorting out the mess in medical education requires a consensus across the political spectrum. Any shifts in the status quo will be bitterly opposed, so deeply entrenched are the vested interests. But the time has come for the government to act as the acute shortage in human resources is the main barrier to achieving universal health coverage. The more the delay in addressing the critical challenges facing human resources for health on grounds of political expediency, the greater the social, political and financial costs this country will have to bear in the years ahead. Prudence lies in stemming the rot by decisive action and before it is too late. Dr N Prabhudev Former Director Sri Jayadeva institute of Cardiology Former VC of Bangalore university Former Chairman Karnataka state Health Commission [email protected]

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lindoadvisors · 4 years

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How COVID19 Pandemic Impacted Real Estate Market in India

In the year 2020, we are facing a big issue, and our economy drops down completely. The main reason for this situation is the COVID-19 pandemic. Of course, COVID-19 has infected more than 31,35,21,77 people worldwide and has claimed nearly 9.65 lakh lives across the globe.

Many construction activities stopped suddenly, and no income for real estate developers and workers. But, at the same time, real estate market is now developing and gained more profits than earlier days. Lots of people wish to buy home during the lock down time.

Benefits of Real Estate Market In 2020

As our Indian nation is progressively opening up after lockdown, real estate markets have also started to recover slowly. The income is a big question as many of us do not have money to buy/sell homes.

- Based on current inquiries, real estate markets have earned 70% of the January period and have better improvement in recent time.

- As per the reports, Indian real estate will be led by the affordable housing system. But, the number of infections is still increasing at a worrisome pace in India.

- Of course, we must earn income, and if the lockdown continues, what will be the earnings. Nearly 74% of real estate brokers also suggested selling their home at reasonable price by homebuyers. The real estate in India has steady outcomes by deciding the best housing for everyone.

Enhanced Volatility

Apart from this, home loans from a bank also have some restrictions. Middle-class people could not afford a loan from the bank due to their salary patterns. With the COVID-19 pandemic, there is a benefit in selling homes or commercial spaces in real estate market in India.

But, it is developing faster once the situation is under control. The real estate market has a challenging scenario since the economy is dropping down completely. As per Cushman and Wakefield’s report, the Indian real estate segment is relatively stable, and also has better volatility.

The global chain supply is affected due to the pandemic. In the second quarter of 2020, real estate business is increasing nowadays because of high volatility rate in housing and others.

Large Scale Profits in Real Estate Markets

According to the real estate challenges, the property price might witness a decline of 10–20 percent. The land price is also high than 30% by the end of this year. In a recent survey on FICCI, 72% of the total real estate market is experiencing a high impact.

Around 60% of the respondents have deferred business expansion plans for 6 to 12 months. The large scale calamity might lead to gain positive disruption in earnings. They would deliver a smooth solution after the conditions clear. However, sentiments would largely affect Indian real estate markets.

The real estate stocks in India are showing consistent declining trends. There will be a large scale profit in earning real estate business in Indian market. As a result, developers are happy to sell their home under customer’s budget. So, it has a large development in recent times and people ought to buy their home via real estate market.

Good Comeback for Real Estate Business

The COVID-19 crisis might take into account, and there is a greater economic slowdown in recent times.

Due to the corona pandemic, NRIs are keenly interested to invest in real estate in India. Nearly Rs.71.32 to Rs.75.36 against the US dollar is widely useful for investing on real estate markets.

The Assessment of the financial effect on India’s development segment further expressed that as the development part is driven by framework extends, the abrupt idleness will influence the business slant unfavorably.

The under-development ventures are gazing at a normal deferral of a few months, which can stretch out as long as one year. The report additionally noticed that the work costs for talented specialists are required to increase by 20–25 percent. The real estate market should pay a good response and people likely to invest in good amount.

Wrapping Up

Finally, the real estate business in India is still having its scope and people love to buy homes. Due to this pandemic, real estate business gained more outcomes and developers are selling homes or properties under their budget.

Ultimately, the transmission of the novel Corona infection beginning in India, the real estate business, needs to prepare itself for a much more terrible effect than recently suspected. Inferable from the danger of a disease, the real estate has just observed a decrease in property visits and purchaser intrigue.

Each catastrophe is a chance to scale new statures. Indian land and partnered fabricating businesses must discover energy in the current inauspicious situation. And it should attempt to profit by expanding neighborhood creation and indigenous advancement. The Central Government and the different State governments would do well to stop further expansion of the infection and handhold the Indian real estate market as soon as possible.

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dheerajkochhar · 4 years

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ITS LOCK ON for Indian Real Estate

LOCK – ON means 'Disambiguation' which refers to the removal of ambiguity by making something clear.

We never would’ve imagined a day when 1/3rd of world’s population would be in a lockdown. While the wrath of the lockdown has totally changed our lives, putting our work and finances in a jeopardy, our future will depend largely on how we utilize the time available today. The lockdown gives us ample of time to ponder upon key decisions taken and to be taken, explore avenues for reviving the finances, make mindful investments and rectify the unpreparedness with which we are facing today’s situation. Make a choice now, whether you want to repent over what went wrong or make lemonade out of the lemons life (or the virus) has thrown upon us. If you choose the latter, then this article is for you to read ahead.

This pandemic has rightly taught us that uncertainties come unexpectedly. How prepared are we to face an adverse situation again?

Businesses are adversely hit and job security has gone for a toss, leaving us in a catch 20 situation. Talking about investments, the FDs, Stocks, shares that we invested in are witnessing negative returns. Our priced possessions like jewelry and gold are locked up in banks and not helping us get through the situation. Fancy cars are stationed in parking lots, unused. The alternate investment options like SIPs, Mutual Funds too aren’t performing.

Remarkably, one thing that has stood between us and the disaster is HOME. A sense of safety and security that a home brings for a family is irreplaceable. It is a physical as well as an emotional comfort zone where one heals and recuperates through tough times. Man, right from the stone age has been wandering in search of a home (caves), to protect himself, establish a family, dwell in and flourish.

A critical question arising out of the Covid19 scenario is what will be the fate of home buying and Real Estate post the lockdown?

Studies and reports suggest that the real estate sector will decline; witnessing the worst hit till date and survival will be a challenge. However, as said by Benjamin Franklin, “Out of Adversity comes Opportunity”. The sector also flashes rays of positivity and you would be intrigued to know about the potential to INVEST in Real Estate, against all the current odds.

Real Estate will be the most reliable investment option, considering the conditions of banks, share market crash and capital depreciation or any other option that may appear to be safe initially.

Why will the Indian Real Estate sector grow faster than that of the world?

1. The world economy will go into recession this year with a predicted loss of trillions of dollars of global income due to the coronavirus pandemic, spelling serious trouble for developing countries, with the likely exception of India and China, according to a latest UN trade report.

2. The virus pushes U.S.-Chinese relationship towards fracture; the fallout from the global pandemic threatens the recent U.S.-Chinese trade deal and could undermine future global stability. This rift will lead India to gain interests of global investors and companies. These investments open doors for better infrastructure, leading to the opening of multiple employment opportunities. These factors directly balm the upward movement of real estate in India.

3. China lost its goodwill and trust from investors and the corporate world, owing to the (rumored) conspiracies in the way the country handled the spread of COVID 19 to the world. After China, India is the only country with the capacity to handle the magnitude of the Global scale, in terms of manpower, resources, transport systems, etc.

4. India so far, has augmented trust in handling corona and has bravely fought pandemics in the past too. Indian Real Estate gains appreciation form world economists for its perception as a Nation full of values and ethics, leading India with great avenues to become a Global Superpower.

5. NRI investment in real estate is bound to improve amidst Rupee fall.

While the above conditions make India a lucrative hotspot of real estate investments, below are few points to consider towards real estate buying:

Emotional Investment: In India, owning a home is a matter of pride and esteem. The sentiment runs around passing the home possession as a heritage from parents to the future generations. Interestingly, after our first name, ‘Home’ is second most used Word in the world every day. Ultimately, whatever be the circumstances people across the World will not stop investing in a home or buying real estate.

Statistics: The Indian Real estate growth trajectory, since the past few years was likely to emerge stronger and is projected to be USD 650 Bn by 2025 and USD 1,000 Bn by 2030. Residential, commercial and Retail are the three key asset classes, which have primarily been contributing to the sector’s growth. Real estate contributed nearly 6% to India’s GDP in 2017. As per the projected growth trends, the sector’s contribution is likely to rise to 13% of India’s GDP by 2025.

· Real Estate – Largest Employment Generator: After agriculture, Real estate is the largest employment generator in the country, creating tremendous opportunities for the skilled and unskilled workforce. India’s Real Estate employee base is estimated to be 67 Mn by 2022.

· High Tangible Asset Value: Real estate is not paper money, this is the asset you can hold tangibly which again increases its reliability and return on investment.

· Competitive Risk- Adjustment Returns : Based on July 2018 data from National Council of Real Estate Investment Fiduciaries (NCREIF), private market Commercial Real Estate returned an average of 9.85% over the past five years. This credible performance was achieved, together with low volatility relative to equities and bonds, for highly competitive risk-adjustment returns.

· Attractive and Stable Income Return (Specially in Commercial space): The rental yield from real estate is much higher than returns on any traditional sources of investment. Commercial investment can yield upto 12% ROI and lowest to 5% ROI (with capital appreciation) depending upon the construction stage and lease terms of the property.

· Inflation Hedging: The inflation hedging capability of real estate stems from the positive relationship between GDP growth and demand for real estate. As economies expand, the demand for real estate derives rents higher and this, in turn, translates into higher capital values.

· Long Term “Assured” Wealth Building Asset with “Predictable “ Returns and least Risk :- Real Estate helps you build wealth in long term due to dual advantage of Regular “Predictable” Returns (yield is higher than Dividend Returns) and an “Assured” Capital Appreciation in long term, don’t be scared of Corporate Scams, while they can affect the company’s stock price or your bank’s health, but it cannot junk out the value of real estate you own

· “Helps you Raise Money Quickly” - Hard Asset is the most preferred collateral for a Bank, to raise capital through a loan (LAP/LRD) your property is the best asset you could own!

· The Ever Rising FSI Benefit - “Wine and Real Estate improve with Age” - While as per accounting standards real estate is not a depreciating asset, in practical life too an older development can reap benefits of redevelopment wherein due to ever increasing FSI norms of MMR the incoming developer would not only offer rent for transit accommodation and corpus as hardship allowance, but also offer at least 25% to 30% enhanced Area (which is of great value as remember, 1 sq.ft of Real Estate in Central Mumbai is valued more than 10 gram of gold) !!

· Work from Home Culture: We are in the middle of the largest test of home-working in history and corporates are adopting, refining and testing policies, processes and infrastructure to make it work. We expect quarantine protocols to encourage work-from-home initiatives and for these practices to be adopted in new geographies as the contagion spreads. Large multinationals who recently, and publicly, announced the scaling back of home-working practices now indicate a desire to embrace widespread use of this practice until the outbreak passes. So commercial demands and co-working space or bigger house may increase.

· Student Housing: An unusual market development that is gradually emerging is student housing in India. Real estate consultancy firm, Anarock Property Consultants says that of the 37 million students pursuing higher education in India, more than 75% live away from home. Existing hostel facilities can accommodate only 18%-20% of this migrant student population. Developers in Mumbai & Pune have already ventured into this space that offers 7% returns.

· Co-living market size across India’s top 30 cities is expected to grow more than double by 2025 to $13.92 billion from current $ 6.67 billion. The demand for co-living in terms of beds is slated to grow to 5.7 million from 4.19 million, while the share of private beds is likely to rise from 15% to 30% of total demand in the co-living segment, showed a Cushman & Wakefield India report.

· REITs are a great investment avenue not only for institutional investors but also for retail investors, who find it difficult to invest in the commercial real estate, which has a better rent yielding than residential properties. Unlike other equity investments, REITs provide assured returns to the investors through a compulsory dividend distribution policy. REITs are mandated to distribute 90% of their net distributable income as dividend. There is also a further upside potential for the investors from periodic property valuations. India's first listed REIT, has gained 50% since listing in March 2019 as against a 10% gain in the Nifty Realty Index and 5% return of the benchmark Nifty 50.

· India’s improved rank on Ease of Doing Business and the courage to implement reforms such as DeMo, RERA, and IBC are indeed creditworthy. These are expected to yield fruitful results in the future and help establish Indian real estate as a preferred destination for global investors, occupiers, and homebuyers.

WHY REAL ESTATE DURING LOCKDOWN?

Probably most of the people interested in buying real estate would be holding their decision till the lock down opens due to speculations in the market or risk pertaining to economic conditions. Yet for any clever investor who is observing the current market will testify buying of real estate during lock down to be the smartest move. Here is why –

1. Reduction in Home loan rates: On 27 March 2020, the Reserve Bank of India (RBI) reduced the repo rate by 75 basis points (bps). The reduction saw the repo rate reduce from 5.15% to 4.40%. New home loan rates start at 8% from 1 March 2020. So indeed this is good time to buy your home if the decision was just hiding behind the corner for some better rates or good units.

2. Low Demand – Value for Money: Real estate is facing deficit demand in the market which leads to generation of various attractive offers by Developers. To maintain the good books, builders are currently offering very low rates, lucrative payment plans and additional offers resulting in lowering the cost of property. End-user can expect to buy a property as low as the launch price during this lock down.

3. Reduction in Stamp Duty: The Maharashtra government on March 6 announced that it is reducing stamp duty on properties by 1% for Mumbai, MMRDA Region and Pune for a period of two years.

4. Passive Income: Various small investment options are being introduced in the market starting as low as 5 lacs in real estate that too with a rental income. This is again an opportunity to create a separate asset class in your portfolio and start a source of passive income.

5. Demand- Supply breakthrough: Due to low demand, discounted rates on good inventories are available. But once the economic condition will start settling, the bargain will reduce and demand will also start floating upwards. The rates will not be as low as they are now during lock down.

6. Segment Shift : Earlier Lower middle class people used to buy 10 to 12 Lakh property. Now middle class will buy those as an investor and rent it out to lower middle income group. Similarly shift will take place on affordable segment likewise. Middle income group will emerge as new investor community.

7. Strike the Iron when it is Hot: We all must have heard this at least once. But it’s time to implement the strategy to gain extensive returns on the investment. Not only the rates are strikingly low, the return on investment that are being offered by some Developers is as high as 15-18%.

Final Thoughts:

Your Money is SAFE IN Indian Real Estate

- Regulator like MahaRERA leading the cause of timely justice,

- High Court Judiciary being extremely proactive and pro-consumer / investor,

- NCLT giving prompt hearings and orders favoring customer and financial institution and lastly

- The Supreme Court judgment re-affirms the rights of the homebuyers as financial creditors under the bankruptcy code....

Simply put, it means that homebuyers share equal rights of recovery in the developer's assets which are liquidated as part of the bankruptcy process

The Bottom Line

Real Estate cannot be lost or stolen, nor can it be carried away, purchased with common sense, paid in full, and managed with reasonable care , IT IS ABOUT THE SAFEST INVESTMENT IN THE WORLD.

Real estate is a distinct asset class that is simple to understand and can enhance the risk and return profile of an investor’s portfolio. On its own, real estate offers competitive risk-adjusted returns, with less principal-agent conflict and attractive income streams. Though ill-liquidity can be a concern for some investors, there are ways to gain exposure to real estate yet reduce ill-liquidity and even bring it on-par with that of traditional asset classes. Real Estate investing even on a small scale, remains a tried and true means of building an individual’s cash flow and wealth.

“BUY Real Estate in areas where the Path EXISTS , AND Buy MORE Real Estate where there is no PATH, but YOU can Create Your OWN. Don’t WAIT to BUY Real Estate , BUY Real Estate and WAIT.

Thoughts Compiled By :

Dheeraj Kochhar

Capitor Ventures Pvt Ltd

Navi Mumbai

References :

Anarock Report March 2020, Varsha Rathore, Zricks.com, Pic Credits: Google stories and newspapers

#realestate #realestateafterlockdown #coronaimpactonrealestate #mumbaiproperties #capitorventures #stayinvested #buyrealestate #realestatebadhiyahai

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iasshikshalove · 5 years

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Current Affairs Dated On 08-07-2019

C.A Dated On 08-07-2019 UNESCO World Heritage list: Why in News? The Walled City of Jaipur, known for its iconic architectural legacy and vibrant culture, on July 6 made its entry into the UNESCO World Heritage Site list. The announcement was made after the 43rd Session of the UNESCO World Heritage Committee (WHC), underway at Baku (Azerbaijan) from June 30 to July 10, examined the nomination of the Walled City of Jaipur for inclusion in the World Heritage list. About The City:  The historic walled city of Jaipur in Rajasthan, was founded in 1727 AD under the patronage of Sawai Jai Singh II. It serves as the capital city of the culturally-rich state of Rajasthan.  The city was proposed to be nominated for its value of being an exemplary development in town planning and architecture that demonstrates an amalgamation and important exchange of ideas in the late medieval period.  In town planning, it shows an interchange of ancient Hindu, Mughal and contemporary Western ideas that resulted in the form of the city,” UNESCO Office in New Delhi had earlier said.  In addition, Jaipur City is an exceptional example of a late medieval trade town in South Asia and defined new concepts for a thriving trade and commercial hub. In addition, the city is associated with living traditions in the form of crafts that have national and international recognition, it said. About the Committee:  The World Heritage Committee is composed of representatives of 21 States Parties to the World Heritage Convention who meet annually.  The Committee is in charge of implementing the Convention.  To date, 1,092 sites in 167 countries have been inscribed on the World Heritage List. GS-2 C.A Dated On 08-07-2019 Doubling Farmer’s Income: Why in News? The Centre aims to double farmers' income by 2022. A 2017 NABARD survey shows high levels of inter-State income inequality among agricultural households. Income inequality  The map depicts the average monthly income of agricultural households in 2017. Households in Punjab earned more than Rs. 16,000, the highest among States.  Those in Andhra Pradesh earned the least -- Rs. 5,842 on average. What remains in the purse?  Consumption expenditure is measured because it is less volatile over time. Agricultural households in Andhra Pradesh ended up with a surplus of Rs. 95 on average in 2017, which was the lowest among States, while households in Punjab had the highest: Rs. 4,314. Sources of income  Among the Centre's plans to improve farmers' income was to shift farmers to non-farm jobs.  Cultivation, for instance, was the source of income for 35% of the agricultural households in rural India. Right to Information Act: Why in News? C.A Dated On 08-07-2019 The Central Information Commission (CIC) has rebuked the Department of Personnel and Training, the nodal ministry for Right to Information Act, for denying records related to appointment of Information Commissioners and framing of rules of the transparency law, saying it stifles “the very letter and spirit” of the legislation. Details:  The Commission admonishes the then Central Public Information Officer (CPIO) for invoking Section 8(1)(i) of the RTI Act without assessing its applicability and the present CPIO is also warned against mindlessly endorsing the reply.  He directed that this order be placed before the Secretary of the Ministry to take note of “adverse findings” of the Commission. What is Section 8(1)(i)? Notwithstanding anything contained in this Act, there shall be no obligation to give any citizen,— (i) cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers: Provided that the decisions of Council of Ministers, the reasons thereof, and the material on the basis of which the decisions were taken shall be made public after the decision has been taken, and the matter is complete, or over: Provided further that those matters which come under the exemptions specified in this section shall not be disclosed; About RTI act, 2005:  Right to Information (RTI) is act of the Parliament of India to provide for setting out the practical regime of the right to information for citizens and replaces the erstwhile Freedom of information Act, 2002.  Under the provisions of the Act, any citizen of India may request information from a "public authority" (a body of Government or "instrumentality of State") which is required to reply expeditiously or within thirty days.  The Act also requires every public authority to computerise their records for wide dissemination and to proactively certain categories of information so C.A Dated On 08-07-2019 that the citizens need minimum recourse to request for information formally. Proxy Voting: Why in News? The government is learnt to have withheld its plan to introduce a fresh bill in Parliament to extend the facility of „proxy voting‟ to overseas Indians, pending “reconciliation” of varied views on the issue. Background:  There have been demands from various parties to extend similar facility to domestic migrants who are unable to vote when elections are held in their native places as most cannot afford to travel or miss work.  The Bill proposes that overseas Indians, who are entitled to vote in India, could now appoint a proxy voter to cast their vote.  As of now, overseas Indians were free to cast their votes in the constituencies where they were registered.  The Bill seeks to give them the option of proxy voting, which till now was only available to service personnel.  According to estimates of Ministry of External Affairs, there are about 3.10 crore NRIs living in different countries across the world. Suggested Reforms:  An expert committee of the Election Commission, working on the issue, had in 2015 forwarded the legal framework to the Law Ministry to amend the electoral laws to allow the overseas Indians to use proxy voting. C.A Dated On 08-07-2019  Unofficial data with EC shows that only 10,000 to 12,000 overseas voters have exercised their franchise because they do not want to spend foreign currency to come to India and vote.  The bill said the necessary provision of coming to India to cast ballot caused hardship for overseas electors. Other Salient Provisions:  Another provision in the amendment bill relates to the spouses of service voters.  As of now, an armyman‟s wife is entitled to be enrolled as a service voter, but a woman army officer‟s husband is not, according to the provisions in the electoral law.  The bill proposes to replace the term „wife‟ with „spouse‟, thus making the provision gender neutral.  Members of the armed forces, central armed police forces, personnel of state police forces posted outside their state and the central employees posted outside India are eligible to be enrolled as service voters. GS-3. Union Budget:Farmer Friendly Measures: When doubling of farmers‟ income agenda is being rigorously pursued by the government, a fresh slew of measures through this Budget will only firm up the prospects of the agriculture and rural development sectors. The crux of the Budget is „sustainability‟ in every aspect, be it agriculture practices or economic viability. Steps Taken:  An announcement of formation of 10,000 new FPOs over the next five years is a step towards the same. C.A Dated On 08-07-2019 With this, the economies of scale can be harnessed to achieve the goal of doubling farmer‟s income by reduction in input costs and assuring better price realisations by the farmers for their output.  The government‟s impetus is to promote non-farm activities to boost economic viability of farmers. Owing to climate change challenges, it has become imperative to explore viable and sustainable non-farm means of income generation.  A new scheme — Pradhan Mantri Matsya Sampada Yojana — will give enough confidence to those who are in fisheries sector, to enhance their income with better fisheries management, infrastructure creation, increasing production and productivity, improved post-harvest management bringing economic viability of the sector.  As the government wants to extend the parameters of ease-of-doing business and ease-of-living to the rural areas too, the emphasis of „Gaon, Garib and Kisan‟ will see the uplift of rural lives of farmers and the poor, equally.  The government has shown that every person having potential to bring economic revolution will be given an equal opportunity.  Another new scheme — SFURTI — is an attempt in this direction.  Now, under Pradhan Mantri Gram Sadak Yojana, a road network of 1.25 lakh km will bring more villages to rural markets.  Enhancing the prospects of agripreneurs, the ASPIRE scheme will create 50,000 skilled rural entrepreneurs, especially in the rural agriculture sector. Power generation  To expand the income sources of our farmers, there is a proposal to enable them to take up power generation activities on their field to transform the Annadata to an Urjadata.  In the dairy sector, cooperatives will be encouraged to create infrastructure for cattle field management, milk production, processing and marketing.  For relieving farmers from uncertain prospects, the States will be forced to implement e-NAM mechanism for better operations under the APMC Act.  The goal of “Har Ghar Jal” by 2024 shows the sensitivity to the issue of water availability and its scarcity, equally. C.A Dated On 08-07-2019 Integration of funds from various Ministries to fund the Jal Shakti Abhiyan may see critical water blocks being regained. In a nutshell, „sustainability‟ has largely remained at the centre of this Budget. Desalination technology : The story so far: With warnings from India‟s top policy-makers and reports of major cities in India struggling to stave off a water crisis, there‟s talk about exploring technologies to harness fresh water. The one idea that‟s been around for a while is desalination, or obtaining freshwater from salt water. Desalination technology is not an esoteric idea — the city of Chennai already uses desalinated water. However, it only has a limited application, given the operation costs. What is desalination technology?  To convert salt water into freshwater, the most prevalent technology in the world is reverse osmosis (RO).  A plant pumps in salty or brackish water, filters separate the salt from the water, and the salty water is returned to the sea. Fresh water is sent to households.  Osmosis involves „a solvent (such as water) naturally moving from an area of low solute concentration, through a membrane, to an area of high solute concentration.  A reverse osmosis system applies an external pressure to reverse the natural flow of solvent and so seawater or brackish water is pressurised against one surface of the membrane, causing salt-depleted water to move across the membrane, releasing clean water from the low-pressure side‟. Global Distribution:  There are about 18,000 desalination plants in the world across 150 countries and nearly half of Israel‟s water is sourced through desalination. C.A Dated On 08-07-2019 How popular is it in India?  Years of water crises in Chennai saw the government set up two desalination plants between 2010 and 2013.  Last November, Gujarat Chief Minister, Vijay Rupani, announced plans of setting up a 100 MLD RO plant at the Jodiya coast in Jamnagar district.  This would go a long way in „solving‟ the water availability problems in the drought-prone Saurashtra region.  Other plants of a similar size are expected to come up in Dwarka, Kutch, Dahej, Somnath, Bhavnagar and Pipavav, which are all coastal places in Gujarat.  There are also a slew of desalination plants that cater to industrial purposes. For now, India‟s real-world experience with desalination plants is restricted to Chennai. What are the problems with RO plants? Because RO plants convert seawater to fresh water, the major environmental challenge they pose is the deposition of brine (highly concentrated salt water) along the shores.  Ever since the Chennai plants have started to function, fishermen have complained that the brine being deposited along the seashore is triggering changes along the coastline and reducing the availability of prawn, sardine and mackerel.  Environmentalists second this saying that hyper salinity along the shore affects plankton, which is the main food for several of these fish species.  Moreover, the high pressure motors needed to draw in the seawater end up sucking in small fish and life forms, thereby crushing and killing them — again a loss of marine resource.  Another unexpected problem, an environmentalist group has alleged, was that the construction of the RO plants required troves of groundwater.  This was freshwater that was sucked out and has since been replaced by salt water, rendering it unfit for the residents around the desalination plants. C.A Dated On 08-07-2019  On an average, it costs about ₹900 crore to build a 100 MLD-plant and, as the Chennai experience has shown, about five years for a plant to be set up.  To remove the salt required, there has to be a source of electricity, either a power plant or a diesel or battery source. Is RO water healthy?  In the early days of RO technology, there were concerns that desalinated water was shorn of vital minerals such as calcium, magnesium, zinc, sodium, potassium and carbonates.  They are collectively referred to as TDS.  Higher quantities of these salts in desalination plants tend to corrode the membranes and filtration system in these plants.  So ideally, a treatment plant would try to keep the TDS as low as possible.  Most RO plants, including the ones in Chennai, put the water through a „post-treatment‟ process whereby salts are added to make TDS around 300 mg/l.  Several of the home-RO systems that are common in affluent Indian homes, too employ post-treatment and add salts to water. Are there technological alternatives?  The alternative desalination technology used is thermal energy sourced from the ocean.  There is a low-temperature thermal desalination (LTTD) technique for instance which works on the principle that water in the ocean 1,000 or 2,000 feet below is about 4º C to 8º C colder than surface water.  So, salty surface water is collected in a tank and subject to high pressure (via an external power source).  This pressured water vapourises and this is trapped in tubes or a chamber.  Cold water plumbed from the ocean depths is passed over these tubes and the vapour condenses into fresh water and the resulting salt diverted away. Indigenous Aircraft Carrier (IAC) Vikrant Why in News? C.A Dated On 08-07-2019 The country‟s first Indigenous Aircraft Carrier (IAC), Vikrant, is in advanced stage of construction and will be delivered to the Navy in 2021 for advanced trials, . About Vikrant:  Vikrant, weighing 40,000 tonnes, is being built by Cochin Shipyard Limited.  It works on Short Take-Off But Arrested Recovery (STOBAR) mechanism similar to the present carrier INS Vikramaditya with an angular ski-jump.  The ship is powered by four General Electric (GE) gas turbines.  It will operate Russian origin MiG-29K fighters, which also fly from Vikramaditya.  The ship's combat management system (CMS) was developed by Tata Power Strategic Engineering Division in collaboration with Weapon and Electronics System Engineering Establishment and MARS, Russia.  It is the first CMS developed by a private company for the Indian Navy. Significance of Aircraft Carrier:  An aircraft carrier is a warship that serves as a seagoing airbase, equipped with a full-length flight deck and facilities for carrying, arming, deploying, and recovering aircraft.  Typically, it is the capital ship of a fleet, as it allows a naval force to project air power worldwide without depending on local bases for staging aircraft operations.  While heavier aircraft such as fixed-wing gunships and bombers have been launched from aircraft carriers, it is currently not possible to land them.  By its diplomatic and tactical power, its mobility, its autonomy and the variety of its means, the aircraft carrier is often the centerpiece of modern combat fleets. \  One of its great advantages is that, by sailing in international waters, it does not interfere with any territorial sovereignty and thus obviates the need for overflight authorizations from third party countries, reduce the times and transit distances of aircraft and therefore significantly increase the time of availability on the combat zone

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emeraldinternationalschool · 5 years

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How Emerald International School Prepares Students for an Ever-changing Global Scenario

One of the major challenges both parents and schools face today is to prepare students for an ever-changing future. A decade ago, the global changes took place at a slow pace, whereas, in the current scenario we are experiencing a fast-paced world with things around us changing very rapidly.

Though the growing complexity and diversity in the world are challenging, globalization can bring in innovation, improved standard of living, and new perspectives. Here are different ways by which we prepare our students for an ever-changing global scenario.

Encouraging Global Collaboration

Collaborating with a team is the skill that helps students to succeed in the future. At Emerald, the best Residential Schools in Bangalore, our curriculum is designed in such a way that students are encouraged to interact and collaborate with fellow students and have a clear understanding about how to communicate, share and contribute. This also helps them to be a valuable contributing member by participation in team assignments and projects on a global scale. As we offer a multi-cultural environment at the schools, our students are always exposed to a global mindset from a very young age.

Building Soft Skills

We focus on building and developing soft skills in students like integrity, respect, care that are important for growing children to responsible adults. Emerald emphasizes the importance of developing soft skills to better prepare our students for higher education and the workforce. The reason why we focus on soft skills is for our students to be future ready and be able to do the same things that the business community wants.

Teaching Tolerance

In order to foster collaboration within a global community, students need to hone their ability to communicate, be open to change, and tolerant with unfamiliar cultures and ideas. As an international school, emerald has students and teachers from different nationalities. Tolerance is ingrained in our students from a young age, allowing them to be open with discussions and experiences that can help them learn about and feel comfortable communicating with people of other cultures.

Learning Beyond The Classroom

Studies show that students need to use what they learn repeatedly in various, personally meaningful ways for learning to become permanent knowledge that can be retrieved and used in the future. School trips and excursions are an integral part of the structure at Emerald, leading one among the Top Schools in Bangalore for both classroom lessons as well as for learning life-skills. Our students are given the opportunity to make learning permanent by allowing them to ‘transfer’ school learning to real-life situations.

Encouraging Students To Use Their Strengths

At Emerald, the Bangalore International School, we understand that every student is unique and there is no one size for all in assessments and instructions. We instill various strategies for success in students by aiming to be more progressive in terms of learning. We also look to promote each student’s interest in topics that pique their curiosity so that they grow up to be adults that have an option to pursue careers they are passionate about.

Being Future-Focused

Preparing our students for the future is imperative to help them address an ever-changing global scenario. Our aim is to help students focus not just on learning in the classroom, but also learn how that material will help them later in life. We know that schools are a stepping stone to the life goals of students, which is why we feel the need to bring those two values together.

Preparing students for the jobs and opportunities that don't even exist today is quite challenging. At Emerald, the top International schools in India for NRI, we strive for the best to ensure that our students are equipped with the skill set they need to take up challenges and opportunities that we can't even imagine.

Reach Us:

Emerald International School

Ph.no: 7090600002, 7090000300, 9972115128, 9972113802 Email: [email protected] Visit Us: https://emeraldinternationalschool.in

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vegas-glitz · 5 years

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Getting the India Tale

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Even right up until the transform of the millennium, NRI expenditure in Indian serious estate was a trickle. Some promoters would appoint a component-time regional agent in metropolitan areas with big Indian populations. The a lot more enterprising kinds would once in a while participate in an exhibition the place there would additional thoughts than answers. For the 20 million Indians spread across the globe, India, as a serious estate financial commitment destination, was far absent. You bought home there if you had to. And prayed that your money and residence would be secure.

In the very last 50 percent a dozen many years there has been a sea adjust in notion. What was a trickle is now a steady stream. No key housing project can pay for to overlook the NRI marketplace and many earmark unique NRI blocks in their setting up ideas. Indians overseas want to get into their home place not only for mother and father and once-a-year holidays but purely for financial investment. They have recognised that whilst, in a great deal of the earth, true estate could be slowing, in India it is escalating by leaps and bounds. "You will not have to promote India any more," says Aloke Banerjee, Main Operating Officer of Axiom Estates, the largest intercontinental supplier of India property services. "You have to go with discounts." "A large volume of fascination has designed," provides Rajesh Goenka, Running Director, who spearheaded the firm's original thrust amid the Uk Indians. "5 years back the initially news was trickling in that Indian serious estate is worthy of investing. Right now the brand name impression of India -- and of true estate developers in India -- has altered."

The character of consumers and the commitment to purchase also varies from nation to nation. In the Uk, which Goenka describes as the hardest market, most prospective buyers are next or third technology Indians, who search on India as just a different expense place and favour international sights like Goa. The United states of america has a bigger proportion of 1st era expatriates, who are open up to the notion of returning to India or have mother and father living below. The traditional metros, Bangalore and Hyderabad are their preferred places. Indians in the Gulf generally system to return and hence request assets in their hometown, often in the scaled-down metropolitan areas. Predominantly, nonetheless, NRIs search for a return on financial commitment with more affluent people seeking to commit in industrial space the place rental incomes are commonly above 10% and offset the fascination value.

There have been a lot of elements fuelling NRI desire. The India story now deserves standard content articles in mainline newspapers this sort of as The Situations, Wall Avenue Journal or New York Occasions, encouraging everybody to look for a piece of the motion. The easing of repatriation regulations has made it easier to encash returns on expenditure. Developers have come to be additional expert. Banking companies are extra eager to lend. In latest months the strengthening rupee and weakening US actual estate current market have created India even more beautiful. The most crucial rationale most likely is that the Indian true estate increase is viewed as getting led by genuine end-user need and that's why sustainable in the very long run, making the financial commitment safe and sound.

The marketing of genuine estate is also getting far more organised, facilitating...the shopping for course of action. Even though earlier, developers would search for to do their possess internet marketing, currently they rely mainly on businesses like Axiom Estates, which is headquartered in London and has places of work in New York, Fremont and Dubai as properly as associates in a amount of other metropolitan areas. NRIs way too count on the expert assistance and transaction management to make sure a fantastic expense. "My experience is that Indians abroad are incredibly tech-savvy," states Aloke Banerjee. "They investigate a good deal on the web. But then comes examination paralysis, so they require anyone to manual them. This is the place Axiom Estates arrives in. Despite the fact that we produce a good deal of enquiries through our website, we are not a virtual office or portal but have brick and mortar presence in their nation. We have men and women to maintain their hand and choose them by way of the whole price chain. This involves buy, home administration, permitting, furnishing, home finance loan and, in some situations, resale of the residence."

Apart from products and services, Axiom features the NRI consumer a myriad of house possibilities. The corporation has tied up with shut to 100 Category 1 builders and can provide consumers pan Indian assets as properly as alternative within just person towns. At any point of time, a purchaser will have in excess of 300 tasks to pick out from. In addition, big investors also get the chance of pre-reserving bargains i.e. property delivers at a value that is commonly only offered to the neighborhood neighborhood. Significant net well worth people today also have alternatives for block booking or project improvement by means of Axiom for larger returns on expense. Several realty traders also request the company's portfolio management products and services, where by the expenditure is spread across various attributes and towns, ensuring an optimum mix of security and return.

To market the attributes Axiom employs numerous procedures which includes extensive data foundation management to fit need and availability. The organization organises residence reveals in United states, Canada, United kingdom and now in the Gulf, in affiliation with developers. These are publicized through area Television set strategies and content in newspapers for a number of weeks. Challenging duplicate residence catalogues are mailed to future potential buyers nicely in progress. At the reveals there are problem-and-respond to periods with builders, seminars with experts, and sharing of offers and articles. Associations with Citibank in the Usa and SBI and HSBC in the British isles more incorporate believability and self-confidence. As a result, Axiom's shows draw in much increased footfalls as compared to street reveals by specific builders, with several thousand visitors staying the norm.

Currently the NRI market place accounts for about 20% of the Indian realty sector, which Banerjee describes as the suggestion of the iceberg. Inhibiting components are primarily authorized, especially when it comes to land, as titles are not always apparent and there is no title insurance policy. When buying developed-up home, the documentation is normally one-sided, loading the legal dice in favour of the promoters. Delays in development and high quality of service remain troubles of worry with lots of builders. If India were to capture up with made international locations on issues of title, transparency, assistance and deal integrity, the floodgates would open up up. There is a whole lot of money waiting around at the wings.

Supply by Nancy Priya Arora

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johncompc · 3 years

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#company incorporation in chennai #Challenges of Registering your Startup in India #What are the challenges for NRIs to do business in India?#Advantages of private limited company #What are the 5 characteristics of Sole Proprietorship?#How to register OPC?#Private limited company registration – an Introduction #Features of Private limited Company in Chennai

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prasanththampi · 5 years

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IIBM ongoing exam answer sheets provided whatsapp 91 9924764558

CUSTOMER RELATIONSHIP MANAGEMENT IIBM ONGOING EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558

CONTACT:

DR. PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: [email protected] WEBSITE: www.casestudyandprojectreports.com

Customer Relationship Management Section A: Objective Type & Short Questions (30 Marks)  This section consists of Multiple Choice & Short Note type questions.  Answer all the questions.  Part One carries 1 mark each & Part Two carries 4 marks each. Part One: Multiple Choices: 1. High congruence means: a. High probability of success b. Low probability of success c. Zero probability of success d. None 2. Novo Jim‟s excellent resource book for Recency, Frequency and Monetary is: a. Drilling high b. Digging the top c. Cutting edges d. Drilling down 3. In „FURPS‟ R stands for___________ a. Responsibility b. Resource c. Retention d. Reliability 4. NAICS stands for_____________ a. National American Industry Coding System b. North American Industry Cooling System c. National American Industry Cooling System d. North American Industry Coding System 5. The book „Reengineering the corporation‟ is written by: a. Michael Hammer and James Champy b. Michael Champy and James Hammer c. Michael Douglus and James Ferrari d. Michael Ferrari and James Douglus 6. The book „Building the Data warehouse‟ is written by: a. Michael Doglus b. James Champy c. Bill Inmon Examination Paper of Customer Relationship management 2 IIBM Institute of Business Management d. James Ferrari 7. Which of the following is considered as the bible of database marketing? a. „Drilling High‟ b. „Building the Data warehouse‟ c. „The complete database marketer‟ d. „Drilling down‟ 8. CASE stands for____________ a. Customer Aided Software Engineering b. Computer Aided Software Engineering c. Customer Aided System Engineering d. Computer Aided System Engineering 9. In „BBB‟ B stands for____________ a. Bail b. Buffer c. Bureau d. Block 10. If high quality is one of the attribute then: a. It will be suicidal to ship products with high DOA b. It will be beneficial to ship products with high DOA c. It will be suicidal to ship products with low DOA d. It will be beneficial to ship products with low DOA Part Two: 1. Why e- CRM is important in present life? 2. Describe the 3 phases of „Waterfall Model‟. 3. Explain the type of CRM in short? 4. What is „Life time value‟ related with customer? 5. What are „Warehouse data(s)‟? Section B: Caselets (40 marks)  This section consists of Caselets.  Answer all the questions.  Each caselet carries 20 marks.  Detailed information should form the part of your answer (Word limit 200 to 250 words). END OF SECTION A SESSECTION A Examination Paper of Customer Relationship management 3 IIBM Institute of Business Management Caselet 1 Project Energized: Indian Synthetics Limited was established in the year 1987 by Seth Gopichand, who was an NRI based in Singapore. The company‟s main products were blended synthetics, polyester and cotton yarn; which were suitable for readymade garments. The company had achieved an outstanding success with an annual turnover of Rs. 1,500 crores and was awarded the „Exporter of the Year Award‟ since 1988, for four consecutive years by the Government of India. Encouraged by the profitability of the Jabalpur plant, the company set up another manufacturing plant at Nasik. The company was a typically family run business wherein no outsiders were inducted at the top management positions. Even the Chartered Accountant was from the family. The plant at Jabalpur had 1,300 workers with an average age of 28 years and an educational qualification of either high school or secondary school. 60 percent of the workers were from Bihar and the rest were from Orissa. They were highly paid with reference to the industry average and were provided with residential accommodation on the factory premises. All the employees were men with no woman employee on the plant‟s payroll. Among the workers and staff it was common that the management had not initiated the appointment. Since the past 12 years of its existence, the company was functioning in a traditional pattern in spite of the modernization of the plant and had no HR practices whatsoever. With the growing competition in the market, the profitability of the plant had declined which greatly concerned the top management. After reviewing the situation, it was found that the human element was the biggest hurdle in achieving the set targets. There was a need to bring in attitudinal change, as both, the absenteeism and the union interference were high. This union was formed after the workers had felt that the management was exploiting them. Most of the workers had been there since the inception of the plant and the turnover was almost negligible. There was a strong union present in the plant, which was affiliated to INTUC. The plant managers entered into a long term settlement with the union to set the daily wages and the terms and conditions of work. The long term settlement was renewed every 3 years. The workers were working in 30-day night shifts in a month. Being a textile unit, it was a process industry wherein hurdle at one point of the process would stop the whole production. Moreover, if there were delay in the takeover of the shift, the output of the entire day would be affected. In the matters of indiscipline, the workers were charge sheeted and dismissed arbitrarily. In chronic cases, the worker had to wear a badge with a slogan “I will not repeat the mistake again” for the entire day on his uniform. The company started thinking of corporate governance and hired the services of Narayan Murthy, AGM (P & A and ER) for the Jabalpur plant in May 2001. Since its establishment, the plant had seen eight Personnel Managers come and go. Narayan Murthy who was in his late thirties had been working with a multi-national company and had a wide exposure to the human resource practices. He was given complete autonomy by the corporate office to transform the existing organizational culture. After Narayan Murthy took over the charge, he formed the “Workers Committee” with one representative who would frame the report, discuss with him and help out in counseling the workers. He changed the traditional designations like the “Khata Adhikari” to the “Shop Floor Manager”. He also made training and development programs, an integral part of the employee development. His first attempt in this direction was an ice-breaking workshop called the “Project Energized” which was conducted by women trainers. To bring women closer to the system, he had taken an initiative to form a ladies‟ club for the wives of all the employees, which became an uphill task for him as he was facing a lot of problems in getting the people together. Narayan Murthy also introduced the concept of multi-skilling where the worker was persuaded to work in different stages of the process. Although, the worker did not get a monetary incentive for the same, he developed enrichment of the skills. Many a times the union resisted to this and then the supervisor had to tackle the situation diplomatically. Another measure, which Murthy adopted, was to develop an incentive plan for the workers. Any worker who recorded 26 attendances in a month was given an extra Rs. 10 per day for the month, and so on till 23 attendances per month. Any worker who recorded 26 attendances consecutively for three months was Examination Paper of Customer Relationship management 4 IIBM Institute of Business Management given an additional benefit of Rs 500. 100 employees responded positively to this scheme. He also started educating the union and was planning to provide an office and separate notice board for the union office bearers. He was also planning to reduce the 30 days night shift to 15 days night shift per month. As per this agenda, he had also planned to employ a lady as the Deputy Manager of Training, preferably more than 35 years of age who was expected to have completed the social obligations in terms of her marriage and child rearing. He felt that a woman would be more successful in overcoming the suspicion among the workers towards the management as he had observed that the workers were receptive to women summer trainees who had visited the plant for about six weeks last summer. Even at the Nasik plant, when a lady doctor was appointed as a physician, the workers went in for a strike objecting the appointment. The workers had afterwards shown a positive response though they had initially shown a stiff resistance to her appointment. In spite of taking these measures, Murthy felt that there was too much interference from the union and the employees were not enthusiastic about the changes. And he wondered what else he should do to transform the culture of the organization. Questions: 1. In what way would multi-skilling help in solving the problems of the plant? 2. Do you think that the company‟s policy of entering into term settlement is appropriate? Give reasons. Caselet 2 Mitsubishi Motor Sales: Implementing Customer Relationship Management Systems Until the late 1990s, Mitsubishi Motor Sales of America Inc. was only about cars and its approach to retail customer service reflected that. There were more than 18 toll-free customer service numbers that callers had to navigate to find information on topics ranging from financing to sales to repairs, “We were fragmented in our approach, and we clearly lacked a customer focus,” says Greg O‟Neill, executive vice president and general manager.Mitsubishi decided to change that. As part of a company-wide shift to an increased focus on customers, executives challenged the call center to provide “one voice and one set of ears for the customer,” says CIO Tony Romero. That was the beginning of a continuing drive toward improved customer service through a customer relationship management (CRM) initiative that would eventually engage multiple departments and 18 vendors. Today, Mitsubishi has one call center and an outsourced service provider that handles the most basic calls. The cost per call has decreased by about two-thirds, and that savings alone paid for the system in 18 months, according to Rich Donnelson, director of customer relations. The system saves agents time and uncertainty and enabled the call center to handle 38 percent more volume, with an even staffing level. Meanwhile, the company‟s customer satisfaction rate rose by 8 percent, according to a survey by J.D. Power and Associates. Mitsubishi call center project team included members from its sales, marketing, finance, and IT departments, all of which contributed resources as needed. Early on, the team members established some rules of the road. First, they would selectively choose best-ofbreed CRM software components, not the integrated CRM suits that seemed intent on force-fitting Mitsubishi‟s needs into fixed product offerings. But that required a constant struggle to keep 18 vendors heading in the same direction. The team members also decided to implement changes slowly, adding a technology only when all employees were using the last one implemented. This approach allowed call center agents to get comfortable with the new technology over time. To accommodate the deliberate, modular approach, all products had to pass the “three S” test: Is it simple? Does it satisfy? Is it scalable? “If we couldn‟t answer yes to all three, we didn‟t do it,” says Greg Stahl, Mitsubishi‟s director of advertising. The journey began in earnest in June 1999, when Mitsubishi chose to outsource its most basic level of customer calls to Baltimore-based Sitel Corp. within two months, Mitsubishi‟s Examination Paper of Customer Relationship management 5 IIBM Institute of Business Management 18 toll-free customer numbers and the multiple call centers behind them were consolidated, and call center software from Siebel Systems was implemented. Also, as part of the companywide customer focus, a new customer-centric data-base was consolidated in-house the next year. The database became the engine powering the call center, but unfortunately, dirty data were a major stumbling block. The project stalled for months as the data were cleansed and updated. In early 2001, a digital phone switch from Avaya Inc. was installed that allowed flexible skillsbased call routing. Callers to the single toll-free number routed on menu choices. About half the callers got the information they needed from an interactive voice response unit, which can answer fairly sophisticated queries without live contact. Simple calls went to Sitel, and the rest were routed to call center agents with appropriate skills. In March 2001, graphical user interface upgrades put 11 screens‟ worth of customer information on one screen of call center agents. And Smart Scripts workflow software from Siebel provided agents with decision-tree scripts and automated customer correspondence. In May 2001, Mitsubishi managers began listening to outsourced service calls, and they could see agents‟ screens with Avaya IP Agent software. The next month, the company started using workforce management software from Blue Pumpkin Software to hourly forecast call center coverage. Then Nice log software from Nice Systems was installed to record agents‟ voice and screen activity for quality assurance and training. Aside from happier customers, the benefits to call center employees include career growth and higher pay. Previously, agents in separate call centers handled specific areas: accounts, vehicles, titles, or retailer queries. Now the silos are gone and agents can learn new skills in multiple areas, greatly increasing call center flexibility. The workforce management software schedules training time during lags, and agents who learn multiple skills earn more money. Call center turnover, which has traditionally been more than 20 percent, was about 7 percent last year. O‟Neill says the executive team members regularly listen in on service calls to get a feel for customer concerns, and they act on what they hear. “ that bubble up of information has driven more early marketing decisions and made us more effective earlier on than I could have ever thought,” O‟Neill says. “That‟s been a huge dividend.” Questions: 1. What are the key application components of Mitsubishi‟s CRM system? What is the business purpose of each of them? 2. Do you approve of Mitsubishi‟s approach to acquiring and installing its CRM system? Why or why not? Section C: Applied Theory (30 marks)  This section consists of Long Questions.  Answer all the questions.  Each question carries 15 marks.  Detailed information should form the part of your answer (Word limit 150 to 200 words). END OF SECTION B Examination Paper of Customer Relationship management 6 IIBM Institute of Business Management 1. What is the CRM? Define all the Customer Retention Strategies. 2. If all the numbers are large, the project is way too big. Can you identify a logical chunk of the problem that would make a setup toward improving the situation? What kind of “offer” would you want to make to your customers as a result of completing the small chunk? END OF SECTION C Examination Paper of Customer Relationship management 7 IIBM Institute of Business Management IIBM Institute of Business Management Examination Paper MM.100 Services Marketing Section A: Objective Type & Short Questions (30 Marks)  This section consists of Multiple Choice & Short Note type questions.  Answer all the questions.  Part One carries 1 mark each & Part Two carries 5 marks each. Part One: Multiple Choices: 1. The extent to which customers recognize and willing to accept this variation is called: a. Zone of tolerance b. Zone of fitness c. Zone of acceptance d. None 2. SERVQUAL is used to measure service quality. (T/F) 3. SWICS stands for_________ 4. Real /perceived and monetary/non monetary costs are termed as switching costs.(T/F) 5. TARP stands for _________ 6. If the direct cost be „a‟, overhead cost be „b‟ and profit margin be „c‟ then the cost based pricing can be calculated by: a. a+b+c b. a-b+c c. a/b*c d. none 7. If the percentage change in quality purchased be „a‟ and the percentage change in price be ‟b‟ then elasticity is given by: a. a*b b. a/b c. a+b d. a-b 8. If the actual revenue be „a‟ and the potential revenue be „b‟ then the yield can be given by: a. a-b b. a+b c. a/b d. b/a Examination Paper of Customer Relationship management 8 IIBM Institute of Business Management 9. Reactors make adjustments unless forced to do so by environmental pressures.(T/F) 10. Least profitable customers are categorized in: a. Platinum b. Gold c. Iron d. Lead Part Two: 1. What do you understand by “Customer Gap”? 2. Write the difference between perceptions of service quality and customer satisfaction. 3. Write short “SERVQUAL” survey. 4. What are different types of “Complainer”. Section B: Caselets (40 marks)  This section consists of Caselets.  Answer all the questions.  Each caselet carries 20 marks.  Detailed information should form the part of your answer (Word limit 200 to 250 words). Caselet 1 Giordano is a retailer of casual clothes in East Asia, South-East Asia, and the Middle East. In 1999, it operated outlets in China, Dubai, Hong Kong, Macao, Philippines, Saudi Arabia, Singapore, South Korea, and Taiwan. Giordano‟s sales grew from HK$712 million in 1989 to HK$3,092 million in 1999. This case study describes the success factors that allowed Giordano to grow rapidly in some Asian countries. It looks at three imminent issues that Giordano faced in maintaining its success in existing markets and in its plan to enter new markets in Asia and beyond. The first concerns Giordano‟s positioning. In what ways, if at all, should Giordano change its current positioning? The second concerns the critical factors that have contributed to Giordano‟s success. Would these factors remain critical over the coming years? Finally, as Giordano‟s seeks to enter new markets, the third issues, whether its competitive strengths can be transferred to other markets, needs to be examined. Being Entrepreneurial and Accepting Mistakes as Learning Opportunities The willingness to try new ways of doing things and learning from past errors was an integral part of Lai‟s management philosophy. The occasional failure represented a current limitation and indirectly pointed management to the right decision in the future. To demonstrate his commitment to this philosophy. Lai took the lead by being a role model for his employees “. . . Like in a meeting, I say, look, I have made this mistake, I‟m sorry for that. I hope everybody learns from this. If I can make mistakes, END OF SECTION A Examination Paper of Customer Relationship management 9 IIBM Institute of Business Management who the hell do you think you are that you can‟t make mistakes?” He also believed strongly in empowerment – if everyone is allowed to contribute and participate, mistakes can be minimized. Service Giordano‟s commitment to excellent service was reflected in the list of service-related awards it had received. It was ranked number one by the Far Eastern Economic Review, for being innovative in responding to customers‟ needs, for three consecutive years – 1994, 1995, and 1996. And when it came to winning service awards, Giordano‟s name kept cropping up. In Singapore, it won numerous service awards over the years. It was given the Excellent Service Award for three consecutive years: 1996, 1997, and 1998. It also received three tourism awards: “Store of the Year” in 1991, “Retailer of the Month” in 1993, and “Best Shopping Experience – Retailer Outlet” in 1996. These were just some of the awards won by Giordano. How did Giordano achieve such recognition for its commitment to customer service? It began with the Customer Service Campaign in 1989. In that campaign, yellow badges bearing the words “Giordano Means Service” were worn by every Giordano employee. This philosophy had three tents: We welcome unlimited try-ons; we exchange – no questions asked; and we serve with a smile. The yellow badges reminded employees that they were there to deliver excellent customer service. Since its inception, several creative, customer-focused campaigns and promotions had been launched to extend its service orientation. For instance, in Singapore, Giordano asked its customers what they thought would be the fairest price to charge for a pair of jeans and charged each customer the price that they were willing to pay. This one-month campaign was immensely successful, with some 3,000 pairs of jeans sold every day during the promotion. In another service-related campaign, customers were given a free T-shirt for criticizing Giordano‟s service. Over 10,000 T-shirts were given away. Far from only being another brand-building campaign, Giordano responded seriously to the feedback collected. For example, the Giordano logo was removed from some of its merchandise, as some customers liked the quality but not the “value –for – money” image of the Giordano brand. Against advice that it would be abused, Lai also introduced a no-questions-asked and no-timelimit exchange policy, Which made it one of the few retailers in Asia outside Japan with such a generous exchange policy. Giordano claimed that returns were less than 0.1 percent of sales. To ensure that every store and individual employee provided excellent customer service, performance evaluations were conducted frequently at the store level, as well as for individual employees. The service standard of each store was evaluated twice every month, while individual employees were evaluated once every two months. Internal competitions were designed to motivate employees and store teams to do their best in serving customers. Every month, Giordano awarded the “Services Star” to individual employees, based on nominations provided be shoppers. In addition, every Giordano star was evaluated every month by mystery shoppers. Based on the combined results of these evaluations, the “Best Services Shop” award was given to the top store. Aggressive advertising and Promotion Fung said, “Giordano spends a large proportion of its turnover on advertising and promotions. No retailer of our size spends as much as us.” For the past five years, Giordano in Singapore had been spending about S$1.5 million to S$2 million annually on its advertising and promotional activities. It won the Top Advertiser Award from 1991 to 1994. Up to June 30, 2000, total advertising and promotional expenditure for the group amounted to HK$41.5 million, or 3 percent of the group‟s retail turnover. In addition to its big budget, Giordano‟s advertising and promotional campaigns were creative and appealing. One such campaign was the “Round the Clock Madness Shopping” with the Singapore radio station FM93.3 on 1 May 1994. Different clothing items were offered at a 20 percent discount from 12 A.M. to 1 A.M., whereas polo shirts and T-shirts and T-shirts were given a 30 percent discount from 1 A.M. to 2 A.M. and then shorts at a 40 percent discount from 2 A.M. to 3 A.M. To keep listeners awake and excited, the product categories that were on sale at each time slot were released only at the specified hour, so that Examination Paper of Customer Relationship management 10 IIBM Institute of Business Management nobody knew the next items that would be on this special sale. Listeners to the radio station were cajoled into coming to Giordano stores throughout the night (Ang 1996). In 1996, Giordano won the Singapore Ear Award. Its English radio commercial was voted by listeners to be one of the best, with the most creative English jingle. Another success was its “Simply Khakis” promotion, launched in April 1999, which emphasized basic, street-culture style that “mixed and matched” and thus fitted all occasions. In Singapore, within days of its launch, the new line sold out and had to be relaunched two weeks later. By October 1999, over a million pairs of khaki trousers and shorts had been sold. This success could be attributed partly to its clearly defined communications objectives. As Garrett Bennett, Giordano‟s Executive Director in charge of merchandising and operations, said, “We want to be the key provider of the basics: khakis, jeans, and the white shirt.” Elsewhere in the region, sales were booming for Giordano, despite only moderate recovery experienced in the retail industry. Its strength in executing innovative and effective promotional strategies helped the retailer to reduce the impact of the Asian crisis on its sales and take advantage of the slight recovery seen in early 1999. Aggressive advertising and promotions also played a significant role in the successful remarketing of its core brand relaunch or introduction of sister brands, Giordano Ladies‟, Giordano Junior, and Bluestar Exchange. Giordano’s Growth Strategy As early as the 1980s, Giordano realized that it was difficult to achieve substantial growth and economies of scale if it operated only in Hong Kong. The key was in regional expansion. By 1999, Giordano had opened 740 stores in 23 markets, out of which Giordano directly managed 317 stores. Until 2000, four markets dominated its retail and distribution operations – Hong Kong, Taiwan, China, and Singapore. By 2000, Giordano had 895 Giordano stores in 25 markets. Giordano cast its sights on markets beyond Asia, driven partially by its desire for growth and partially to reduce its dependence on Asia in the wake of the 1998 economic meltdown. In Giordano‟s first full year of operation in Australia, sales turnover reached HK$29 million (US$3.72 million) in December 2000. The number of retail outlets increased from 4 in 1999 to 14 in 2000. With the opening up of its first retail outlet in Sydney in September 2000, Giordano outlets could now be found in both Melbourne and Sydney. As part of Giordano‟s globalization process, it planned to open up its first shops in Germany and Japan during the first half of 2001. Currently, Giordano planned to focus its globalization efforts on new markets like Germany, Japan, Australia, Indonesia, and Kuwait. When the crisis made Giordano rethink its regional strategy, it was still determine to enter and further penetrate new Asian markets. This determination led to the successful expansion of Giordano in Mainland China, which saw the retail outlets grow from 253 stores in 1999 to 357 stores in 2000. Due to the expanded retail network in Mainland China and improvements made to the product line, sales turnover increased by 30.9 percent to HK$712 million (US$91.3 million) in 2000. Faced with the imminent accession of Mainland China to the World Trade Organization, Giordano‟s management foresees both challenges and opportunities ahead. In Indonesia, Giordano opened up 7 more stores in 2000, brining the total number of retail stores to 10. These stores covered areas in Jakarta, Surabaya, and Bali. However, with the political and social instability in Indonesia, coupled with the downward pressure on the Rupiah, Giordano was cautiously optimistic about further expansion and planned to proceed with caution. In Malaysia, Giordano planned to refurnish its Malaysian outlets and intensify its local promotional campaigns to consolidate its leadership position in the Malaysia market. Giordano‟s success in these markets would depend on its understanding of them, and consumer tastes and preferences for fabrics, colors, and advertising. In the past, Giordano relied on a consistent strategy across different countries, and elements of this successful strategy included its positioning and service strategies, information systems and logistics, and human resource policies. However, tactical implementation (e.g., promotional campaigns) was left mostly to local managers in their respective countries. A country‟s performance (e.g., sales, contribution, service levels, and customer feedback) was monitored by regional headquarters (e.g., Singapore for South-East Asia) and the head office in Hong Examination Paper of Customer Relationship management 11 IIBM Institute of Business Management Kong. Weekly performance reports were made accessible to all managers. In recent years, it appeared that as the organization expanded beyond Asia, different strategies had to be developed for different regions or countries. Questions: 1. How do you think Giordano had/would have to adapt its marketing and operations strategies and tactics when entering and penetrating your country? 2. What general lessons can be learned from Giordano for other major clothing retailers in your country? Caselet 2 In 2003, Jyske Bank Group‟s primary operations consisted of Jyske Bank, which was the third largest bank in Denmark after Den Danske Bank and Nordea‟s Danish operations. Jyske Bank was created in 1967 through the merger of four Danish banks having their operations in Jutland, Jyske being Danish for “Jutlandish.” Jutland was the large portion of Denmark attached to the European mainland to the north of Germany. Until the late 1990s, Jyske Bank was characterized as a typical Danish bank: prudent, conservative, well-managed, generally unremarkable, and largely undifferentiated. Beginning in the mid-1990s, Jyske Bank embarked on a change process that led to its no longer being characterized as either unremarkable or undifferentiated. By 2003 its unique “flavor” of service made it a leader in customer satisfaction among Danish banks. At the heart of these changes was the bank‟s determination to be, in the words of one executive, “the most customer-oriented bank in Denmark.” The bank achieved its goal by focusing on what it called Jyske Forskelle, or Jyske Differences. JYSKE DIFFERENCES Jyske Differences stemmed from Jyske Bank‟s core values. These stood as central tents, guiding virtually all aspects of the organization‟s life. As one manager pointed out, the values were consistent with the bank‟s Jyske heritage: “Really, when we started talking about our core values, and their Jyskeness, we just became overt about values we had long held.” Jyske Bank‟s core values, published for employees, customers, and shareholders, were that the bank shouls (1) have common sense; (2) be open and honest; (3) be different and unpretentious; (4) have genuine interest and equal respect for people; and (5) be efficient and persevering. The core values led management to reevaluate how the bank did business with its customers. Managers determined that if the bank were to be true to its values, it would have to deliver service differently from both how it had in the past, and how other banks delivered service. Jyske Differences were thus operationalized as specific practices that distinguished Jyske Bank. Competitive Positioning Managers looked to Jyske values and differences for the bank‟s competitive positioning. This process was aided by a Dutch consultant, whose market research indicated that Jyske bank‟s core target market of Danish families and small-to-medium sized Danish companies (earnings were 40 % commercial, 60% retail) generally liked the idea of a bank that was jyske. Additional research suggested that what managers described as the “hard factors” of price, product, and location had become sine qua non in the eyes of customers. In contrast, “soft factors” relating to an individual customer‟s relationship with her service providers served as the basic for differentiation, specially, “being nice,” “marketing time for the customer,” and “caring about the customer and his family.” Examination Paper of Customer Relationship management 12 IIBM Institute of Business Management Managers felt that the “genuine interest” component of the bank‟s values dictated a shift from traditional product focused selling to a customer-solution approach. They characterized the new approach by contrasting the statement, “Let me tell you about our demand-deposit account,” with the question, “What do you need?” Although he bank‟s core financial products remained essentially similar to those of other Danish banks,3 the way they were delivered changed. This required significant changes in the branches, both tangible and intangible, and how they were supported. Tools were developed to support solution-based service delivery. For example, new IT systems helped employees take customers through processes to determine their needs and final appropriate solutions. In one, the customer and her banker filled out an on-line investor profile to determine what style of investment products were most appropriate for her based on risk aversion, time frame, and return goals, among other factors. A manager commented that, “The tools themselves aren‟t proprietary. We‟ve seen other financial services with similar programs – it‟s how our people use them that makes the difference.” Another stated, “Our tools are designed either to enhance our ability to deliver solutions, or to reduce administrative tasks and increase the amount of time our people can spend with customers – delivering solutions.” Finally, being overtly Jyske meant that the bank would no longer be a good place for any customer meeting its demographic criteria for two reasons. First, delivering this type of service was expensive. As a result, the bank charged a slight premium, and targeted only those customers who were less likely to represent a credit risk. Second, the bank would have a personality. According to one manager, “The danger in having a personality is, someone, inevitably, won‟t like you.” Senior management considered this the price of being candid, and welcomed the effect it had on some customers. For example, Jyske Bank‟s cash/debit card had a picture of a black grouse on it, black grouses being found in Jutland‟s rural countryside. When a few customers complained that the bird didn‟t seem very business-like, or wasn‟t hip (one was “embarrassed to pull it out at the disco”) managers were happy to invite them to open accounts at competitor institution. A manager noted: Actually, if no one reacts to our materials, they‟re not strong enough. Some people should dislike us. After all, we‟re only about 6% of the market. I don‟t want everyone to like us – we‟re not for everyone and don‟t want to be. Tangible Differences Account Teams Delivering on the banks competitive positioning required a number of tangible changes in its service delivery system. These began with assigning each customer a branch employee to serve as primary point of contact. Over time, managers discovered that this created problems, because customers often arrived at a branch when their service provider was busy with other customers or otherwise unavailable. Nevertheless, managers were committed to providing individualized service. According to one, “How can we be honest in saying we care about customers as individuals if we don‟t get to know them as individuals? And without knowing them, we can‟t identify and solve their problems.” The solution was found in account teams: each customer was assigned to a small team of branch bankers. These employees worked together to know and serve their customers, sitting in close physical proximity within the branch. Branch Design Jyske Bank planned to spend approximately DKK 750 million to physically redesign its branches (most of this had been spent by 2003). Danish observers described the new branches as looking “like an advertising agency” or “a smart hotel.” These effects were accomplished through the use of modern, upscale materials such as light wood, warm colors, and original art. Branch redesign also included changes in the way customers interacted with their bankers, made possible by architectural and design changes. For example, customers waiting for their banker could help themselves to fresh coffee in a small part of the branch resembling a café. A customer commented on the café, “It means more than you initially think Examination Paper of Customer Relationship management 13 IIBM Institute of Business Management – it makes you feel welcome, it says they‟re really interested in me.” Fruit juice was available for children, who could amuse themselves with toys in the play center. Bankers‟ desks were now round tables, signifying equally. A team of three or four bankers sat at a single large round table, with customers making themselves comfortable between the bankers‟ work stations. Customers could see bankers‟ computer screens, reinforcing openness. Customers‟ ability to view the screens also facilitated the use of IT programs designed to structure interactions between account team members and customers. As equals, bankers and customers sat in the same type of chairs, and bankers no longer sat on a raised dais, the origins of which went back to feudal times when the heads of certain people were supposed to be higher than those of others. If a conversation required more discretion, specially designed meeting rooms giving the feeling of “home” were available. Intangible Differences Delivering the bank‟s new competitive positioning also required numerous intangible changes and other changes not immediately visible to the customer. Managers stated that the most important of these involved training and empowering those employees closest to the customer to serve the customer. Training Before a branch was remodeled, all staff took part in special training sessions. These included teambuilding and customer service, drawing on best practices from the “traditional” retail sector. Management Style A senior manager commented: You can train and educate all day long, but unless your managers and employees are committed to Jyske Differences, they just won‟t happen. Getting them required a great deal of my effort. When we started this process there were times when it was hard – really hard. The branch managers didn‟t think strategically – they sat in their offices and focused on their day-to-day work. I wanted the branch manager to get up on a hill and look around, to get a bigger picture. To get them to change I asked them questions: What‟s the market? Where – and who – are your competitors? What are your strengths and weaknesses, how do they tie to Jyske Differences? Now, contrast what you need with what you have. Are the teams in your branch living up to the demands? What do you need to do to ensure that they will? There will be resistance; understand where it is coming from. One way to deal with it is to make agreements with individuals on how they will develop new skills. If there is a complete mismatch you may need new team members, but for the most part, you can coach your people through this kind of change – you can lead them. According to another executive: The branch managers have to be able to motivate employees to work a little harder, and differently. The most successful give their employees a lot of latitude for decision making. They do a lot of training, 80% of which is on the job. When it isn‟t, it‟s mostly role playing. There aren‟t any high-powered incentives to offer, but there are really good tools coming out of IT. it‟s more how the branch managers do it than what employees to share the values and act on them. A third noted: When I have a difficult situation I look for what I call a “culture carrier.” I try put that person into the middle of it, because they live our values. What I usually see is that the other employees who are on the Examination Paper of Customer Relationship management 14 IIBM Institute of Business Management fence about the values start to come over – they see the example and they like what they see. This leaves the few people who really don‟t want to be Jyske on the outside, and they tend not to last long. Most people are willing to change, but they‟ve got to be supported in the process. CONCLUSION The bank‟s leadership believed that Jyske values and differences, and the bank‟s value chain, provided ways to achieve the balance they wanted among their three stakeholders: employees, customers, and shareholders. Several leaders commented that with the large capital investments behind them as of 2003, net income would increase considerably in the coming years, assuming the recession of 2001 and 2002 was over. Shareholders had received a 17.8% annual return on their investment for the ten years prior to year-end 2002. Anders Dam‟s 2002-2003 goal for shareholders was to increase the bank‟s stock multiple approximately 40% to the level of Danske Bank‟s, the largest and most richly-priced bank in Denmark. This was achieved in July 2003.6 While the bank‟s leadership was pleased with the bank‟s success, they were more interested in determining how the bank would remain in a position of leadership while still keeping the interests of its key stakeholders in balance. Questions: 1. What did Jyske Bank change to enable it to deliver its new competitive positioning? 2. How did Jyske Bank implement those changes? Section C: Applied Theory (30 marks)  This section consists of Long Questions.  Answer all the questions.  Each question carries 15 marks.  Detailed information should form the part of your answer (Word limit 150 to 200 words). 1. Choose a firm you are familiar with. Describe how you would design an ideal service recovery strategy for that organization. 2. Discuss the customer‟s role as a productive resource for the firm. Describe a time when you played this role. What did you do and how feel? Did the firm help you perform your role effectively? How? S-2-300813 END OF SECTION B END OF SECTION C

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