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MIDAS TOUCH NATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH

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ISSN: 2320 - 7779

Vol-2, No. 1-3,

January- March, 2014

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Midas Touch National

Journal of Multidisciplinary Research

ISSN: 2320 – 7779

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Midas Touch National

Journal of Multidisciplinary Research

ISSN: 2320 – 7779

Vol-2, No. 1-3, January – March - 2014 CONTENT

No. Paper Title Author Page 1. Private Sector Banks In India: An Assessment of Financial

Performance

Ruchi Sharma Asutosh Goswami Pradeep Kumar

1-9

2. Women Entrepreneurship In India: Need of The Hour

Ketki P. Sheth 10-13

3. Comparative Study of Efficiency of Bank of Baroda and Dena Bank With Camel Model

S.G. Patel B.O. Baxi

14-25

4. A Study on Business Intelligence and Mobile Business Intelligence

Deepa Kesari 26-30

5. Unsolved Business Dilemma: Human Resource

Bipin T. Vadher 31-36

6. A Case Study on Innovative Practices In Family Owned Enterprises - Protagonist- Abhishek Roonwal, Jewel Passion

Sumita Kumar 37-44

Midas Touch Indian Journal of Multidisciplinary Research Volume 2, No. 1-3, January – March 2014 ISSN: 2320 -7779

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PRIVATE SECTOR BANKS IN INDIA: AN ASSESSMENT OF FINANCIAL PERFORMANCE

Ruchi Sharma, Assistant Professor, College of Vocational studies, University of Delhi.

Ashutosh Goswami, Assistant Professor, Research scholar, University of Delhi

Pradeep Kumar, Assistant Professor, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi

ABSTRACT The Indian banking system has undergone several changes in terms of organization, functions; resource mobilization, socio-economic role, problems and solutions since 1992. Earlier, the Indian Banking industry was dominated by public sector banks. But now the situation has been changed, private sector has gained a reasonable position in the banking industry. The main idea of this article is to make an evaluation of the financial performance of Indian private sector banks. Keywords: Financial Performance, Private Sector Banks, India 1. INTRODUCTION: A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. The private-sector banks in India represent part of the Indian Banking Sector that is made up of both private and public sector banks. The "private-sector banks" are banks where greater parts of stake or equity are held by the private shareholders and not by government. Banking in India has been dominated by public sector banks since the 1969 when all major banks were nationalized by the Indian government. However since liberalization in government banking policy in 1990s, old and new private sector banks have re-emerged. They have grown faster and bigger over the two decades since liberalization using the latest technology, providing contemporary innovations and monetary tools and techniques. The private sector banks are split into two groups by financial regulators in India, old and new. The old private sector banks existed prior to the nationalization in 1969 and kept their independence because they were either too small or specialist to be included in nationalization. The new private sector banks are those that have gained their banking license since the liberalization in the 1990s.

http://en.wikipedia.org/wiki/Financial_institution

http://en.wikipedia.org/wiki/Financial_intermediary

http://en.wikipedia.org/wiki/Deposit_account

http://en.wikipedia.org/wiki/Loan

http://en.wikipedia.org/wiki/Capital_market

http://en.wikipedia.org/wiki/Private_sector

http://en.wikipedia.org/wiki/Equity_(finance)

http://en.wikipedia.org/wiki/Public_sector_banks_in_India



Source: Reserve Bank of India and Indian Banks Association, 2013 2. SIGNIFICANCE OF THE STUDY In view of several developments in the 1990’s, the entire banking products structure has undergone a major change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in the operations to the customer. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India. Market focus is shifting from mass banking products to class banking with introduction of value added and customized products. In this competitive environment the customers has become increasingly sophisticated and choosy. The expectations about the services are undergoing changes. The ultimate test of the success of any economic enterprise lies in the economic use of resources. The Banking Industry is no exception, more so since it uses resources in the form of funds which are always scarce in an economy like India. It is therefore necessary to look into financial implications of banking operations so that funds can be put to use in the best interest of the depositors, the borrower and the stakeholders. 3. REVIEW OF LITERATURE: Sahay et al., (1997) examined the productive efficiency of 70 Indian commercial banks during the early stages (1986–1991) of the ongoing period of liberalization. They used data envelopment analysis to calculate radial technical efficiency scores. They also used stochastic frontier analysis to attribute variation in the calculated efficiency scores to three sources: a temporal component, an ownership component, and a random noise component. They found publicly-owned Indian banks to have been the most efficient, followed by foreign-owned banks and privately-owned Indian banks. They also found a temporal improvement in the performance of foreign-owned banks, virtually no trend in the performance of privately-owned Indian banks, and a temporal decline in the performance of publicly-owned Indian banks. Sathey (2003) the objective of this paper was to measure the productive efficiency of banks in a developing country, that is, India. The measurement of efficiency was done using data envelopment analysis. Two models had been constructed to show how efficiency scores vary with change in inputs and outputs. The efficiency scores, for three groups of banks, that were, publicly owned, privately owned and foreign owned, were measured. The study showed that the mean efficiency score of Indian banks compares well with the world mean efficiency score and the efficiency of private sector commercial banks as a group was, paradoxically lower than that of public sector banks and foreign banks in India. The study recommended that the existing policy of reducing non-performing assets and rationalization of staff and branches may be continued to obtain efficiency gains and make the

List of Private Sector Banks

Old Private Sector Banks New Private Sector Banks

1. Catholic Syrian Bank 2. City Union Bank 3. Dhanlaxmi Bank 4. Federal Bank 5. ING Vysya Bank 6. Jammu & Kashmir Bank 7. Karnataka Bank 8. Karur Vysya Bank 9. Lakshmi Vilas Bank 10. Nainital Bank 11. Ratnakar Bank 12. South Indian Bank 13. Tamilnadu Mercantile Bank

14. Axis Bank 15. Development Credit Bank 16. HDFC Bank 17. ICICI Bank 18. IndusInd Bank 19. Kotak Mahindra Bank 20. Yes Bank



Indian banks internationally competitive which was declared as an objective of the Government of India Das et al., (2006) investigated the performance of Indian commercial banking sector during the post reform period 1992–2002. Several efficiency estimates of individual banks were evaluated using nonparametric Data Envelopment Analysis (DEA). Three different approaches viz., intermediation approach, value-added approach and operating approach were employed to differentiate how efficiency scores vary with changes in inputs and outputs. The analysis links the variation in calculated efficiencies to a set of variables, i.e., bank size, ownership, capital adequacy ratio, non-performing loans and management quality. The findings suggest that medium-sized public sector banks performed reasonably well and are more likely to operate at higher levels of technical efficiency. A close relationship was observed between efficiency and soundness as determined by bank's capital adequacy ratio. The empirical result also shows that technically more efficient banks are those that have, on an average, less non-performing loans. A multivariate analysis based on the Tobit model reinforces these findings. Debasish (2006) the study attempted to measure the relative performance of Indian banks over the period 1997–2004 using the output-oriented CRR DEA model. The analysis used nine input variables and seven output variables. Segmentation of the banking sector in India was done along the following basis: bank assets size, ownership status and years of operation. Overall, the analysis supported the conclusion that foreign owned banks are on average most efficient and that new banks are more efficient that old ones, which are often burdened with old debts. In terms of size, the smaller banks are globally efficient, but large banks are locally efficient. Moreover, this study found evidence of concentration of efficiency parameters among peer bank groups. 4. OBJECTIVES OF THE STUDY: Indian banking system has under gone a drastic change since liberalization. The new generation private sector bank has best used the technology, utilize the manpower in an effective manner. They are professionally managed. These have made them to attract more customers and made them to grower faster and stronger. The specific objective of the study is to measure the profitability of the private sector banks in India in terms of return. 5. METHODOLOGY: This article is an attempt to study the financial performance of Indian private sector banks and their statistical analyses for the period of study. Based on last five years data of the numerous private sector banks, various statistical formulas have been used to calculate their respective mean, standard deviation, range, skewness, minimum and maximum values. To analyze the financial performance variables like Business per employee, return on assets, profit per employee, return on equity and net interest margin are taken for analysis. Data are collected from secondary sources like RBI bulletin and other web site relating to banking industry. Data were collected for a period of five years (2008-2009, 2009-2010, 2010-2011, 2011-2012, and 2012-2013) from all old and new Indian private sector banks. 6. ANALYSIS: The following are the outcome of the analysis.

1. The ratio return on assets is used to measure the profitability of the banks. It gives an indication as to how much profit a business unit (Bank in the instant case) is able to generate per unit of the assets. Higher value of this ratio is indicative of higher profitability and hence productivity. During the period of study the return on assets of Tamil Nadu Mercantile Bank are highest followed by Nainital bank among the old private sector Banks. The return on assets among new private sector banks is more or less similar. The development credit bank shows negative return on asset during the period of study.

http://gbr.sagepub.com/search?author1=Sathya+Swaroop+Debasish&sortspec=date&submit=Submit



2. The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. ROE is expressed as a percentage and calculated as: Return on Equity = Net Income/Shareholder's Equity. The return on equity is highest for City union bank and lowest for Dhanlaxmi bank among the old private sector banks. The Yes bank shows the highest return followed by Axis bank among the new private sector banks during the period of study.

3. The business (deposits plus credit) per employee of all private sector banks has increased over the period of study. Revenue per employee is a measure of how efficiently a particular company (Bank) is utilizing its employees. In general, relatively high business per employee is a positive sign that suggests the company (bank) is finding ways to squeeze more sales (revenue) out of each of its workers. The growth of business per employee is more in case of new private sector banks as comparison to old private sector banks. The Axis bank shows highest business per employee and Ratnakar bank shows lowest business per employee among all the private sector banks in India.

4. The financial ratio profit per employee is a measure of management efficiency. Profit per employee takes the company's operating income from the income statement and divides it by the number of employees needed to produce that revenue. Profit per employee measures management's ability to use their employee resources effectively to create profits for the company. The development credit bank shows negative profit per employee among new private sector banks. The profit per employee is least for Dhanlaxmi bank among old private sector banks.

5. The net interest margin (spread) is the difference between interest income and interest expenditure. The larger the spread, other things being equal, the greater will be the profitability of banks. With the deregulation of interest rates, banks have been given freedom to fix and revised rates of interest periodically. The highest net interest margin is for two new private sector banks i.e. HDFC bank and Kotak Mahindra Bank. There is consistency of net interest margin among old private sector banks.

7. FINDINGS:

The following are the summarized results of analysis: 1. We can conclude that the best performing bank on the basis return on asset is Tamil

Nadu Mercantile Bank. The Bank which performs least is Development Credit Bank with negative return on assets.

2. From the analysis we can come to the conclusion that Yes bank employees generate more business.

3. We can see from the table III that Yes Bank employees are those who generate more

profit. Similarly the operating profit is the highest among all private sector banks. 4. The city union bank is having highest return on equity followed by Yes bank among all

private sector banks. 5. The net interest margin is highest HDFC bank and Kotak Mahindra Bank.

8. CONCLUSION: Indian banking system has under gone a various reforms since liberalization. The new generation private sector bank has best used the technology, exploit the manpower in an effective manner. They are managed by professionals. These have made them to attract more customers and made them to grower faster and stronger.

http://www.investinganswers.com/financial-dictionary/businesses-corporations/sale-5682

http://www.investinganswers.com/financial-dictionary/businesses-corporations/revenue-5108



REFERENCES Ø Bhattacharyya, A., Lovell, C. K. and Sahay, P. 1997. The impact of liberalization on the

productive efficiency of Indian commercial banks. European Journal of operational research, 98 (2), pp. 332--345.

Ø Das, A. and Ghosh, S. 2006. Financial deregulation and efficiency: An empirical analysis of Indian banks during the post reform period. Review of Financial Economics, 15 (3), pp. 193--221.

Ø Debasish, S. S. 2006. Efficiency Performance in Indian Banking—Use of Data Envelopment Analysis. Global Business Review, 7 (2), pp. 325--333.

Ø Kumbhakar, S. C. and Sarkar, S. 2003. Deregulation, ownership, and productivity growth in the banking industry: evidence from India. Journal of Money, Credit and Banking, pp. 403--424.

Ø Sathye, M. 2003. Efficiency of banks in a developing economy: the case of India. European Journal of Operational Research, 148 (3), pp. 662--671.

Ø www.rbi.org.in Ø www.iba.org.in

ANNEXURE

Table 1 showing Return on Assets of private sector banks Return on Assets (Amount in million)

Banks 2008-

09 2009-

10 2010-

11 2011-

12 2012-

13 Avg. S.D Skewness Range Min Max Catholic Syrian Bank 0.57 0.02 0.14 0.24 0.25 0.24 0.204 1.085 0.55 0.02 0.57 City Union Bank 1.5 1.52 1.67 1.71 1.58 1.6 0.092 0.3009041 0.21 1.5 1.71 Dhanlaxmi Bank 1.21 0.35 0.23 -0.73 0.02 0.22 0.696 0.1609176 1.94 -0.7 1.21 Federal Bank 1.48 1.15 1.34 1.41 1.15 1.31 0.15 -0.14112 0.33 1.15 1.48 ING Vysya Bank 0.7 0.8 0.89 1.09 1.26 0.95 0.225 0.525104 0.56 0.7 1.26 Jammu & Kashmir Bank 1.09 1.2 1.22 1.56 1.7 1.35 0.261 0.5989908 0.61 1.09 1.7 Karnataka Bank 1.25 0.67 0.72 0.73 0.89 0.85 0.237 1.6508365 0.58 0.67 1.25 Karur Vysya Bank 1.49 1.76 1.71 1.56 1.35 1.57 0.166 -0.261696 0.41 1.35 1.76 Lakshmi Vilas Bank 0.71 0.33 0.91 0.73 0.54 0.64 0.219 -0.489205 0.58 0.33 0.91 Nainital Bank 1.68 1.72 1.56 1.75 1.3 1.6 0.183 -1.497786 0.45 1.3 1.75 Ratnakar Bank 1.96 1.05 0.53 1.38 1.06 1.2 0.524 0.436131 1.43 0.53 1.96 South Indian Bank 1.09 1.07 1.05 1.12 1.17 1.1 0.046 0.7995027 0.12 1.05 1.17 Tamil Nadu Mercantile Bank 1.51 1.54 1.74 1.75 2 1.71 0.197 0.6796326 0.49 1.51 2 Axis Bank 1.44 1.67 1.68 1.68 1.7 1.63 0.108 -2.1793 0.26 1.44 1.7 Development Credit Bank -1.25 -1.3 0.3 0.68 1.06 -0.1 1.104 -0.346739 2.36 -1.3 1.06 HDFC Bank 1.28 1.53 1.58 1.77 1.9 1.61 0.237 -0.290204 0.62 1.28 1.9 ICICI Bank 0.98 1.13 1.35 1.5 1.7 1.33 0.286 0.0482375 0.72 0.98 1.7 IndusInd Bank 0.58 1.14 1.46 1.57 1.63 1.28 0.432 -1.357147 1.05 0.58 1.63 Kotak Mahindra Bank 1.03 1.72 1.77 1.83 1.81 1.63 0.339 -2.15183 0.8 1.03 1.83 Yes Bank 1.59 1.79 1.58 1.57 1.57 1.62 0.095 2.1944864 0.22 1.57 1.79



Table 2 showing Return on Equity of Private Banks Return on Equity (Amount in million)

Banks 2008-

09 2009-

10 2010-

11 2011-

12 2012-

13 Avg S.D Skewness Range Min Max Catholic Syrian Bank 10.72 0.43 2.6 4.66 4.94 4.67 3.839 1.0046265 10.29 0.43 10.7 City Union Bank 19.9 20.55 23.47 24.91 22.33 22.23 2.06 0.1745143 5.01 19.9 24.9 Dhanlaxmi Bank 19.26 5.39 4.06 -14.7 0.35 2.872 12.16 -0.237052 33.96 -15 19.3 Federal Bank 12.13 10.3 11.98 14.37 13.89 12.53 1.633 -0.258494 4.07 10.3 14.4 ING Vysya Bank 11.66 12.01 12.86 13.82 14.24 12.92 1.115 0.0916018 2.58 11.7 14.2 Jammu & Kashmir Bank 16.72 18.19 18.96 21.22 23.56 19.73 2.689 0.6026823 6.84 16.7 23.6 Karnataka Bank 18.1 9.83 9.6 9.79 12.76 12.02 3.645 1.6352494 8.5 9.6 18.1 Karur Vysya Bank 18.57 22.63 22.26 20.81 19 20.65 1.843 -0.1141 4.06 18.6 22.6 Lakshmi Vilas Bank 11.54 5.14 12.4 11.56 9.28 9.984 2.945 -1.503843 7.26 5.14 12.4 Nainital Bank 22.45 20.9 16.24 17.74 13.31 18.13 3.65 -0.142193 9.14 13.3 22.5 Ratnakar Bank 9.19 5.5 1.71 5.9 6.73 5.806 2.701 -0.61748 7.48 1.71 9.19 South Indian Bank 15.8 16.76 17.56 19.99 19.41 17.9 1.766 0.1241505 4.19 15.8 20 Tamilnad Mercantile Bank 16.27 17.27 19.96 20.89 24.08 19.69 3.096 0.4453944 7.81 16.3 24.1 Axis Bank 19.12 19.15 19.34 20.29 18.53 19.29 0.638 0.9191151 1.76 18.5 20.3 Development Credit Bank

-14.27 13.08 3.51 7.43 10.95 4.14 10.91 -1.658357 27.35 -14 13.1

HDFC Bank 17.17 16.3 16.74 18.69 20.34 17.85 1.659 0.9764514 4.04 16.3 20.3 ICICI Bank 7.8 7.96 9.65 11.2 13.1 9.942 2.245 0.5836769 5.3 7.8 13.1 IndusInd Bank 9.84 17.25 17.91 18.26 17.15 16.08 3.52 -2.1401 8.42 9.84 18.3 Kotak Mahindra Bank 7.36 13.29 14.39 14.65 15.6 13.06 3.29 -1.897682 8.24 7.36 15.6 Yes Bank 20.65 20.27 21.13 23.07 24.81 21.99 1.911 0.9387172 4.54 20.3 24.8



Table 3 showing Business Per Employee of Private Banks Business per employee (Amount in million)

Banks 2008-

09 2009-

10 2010-

11 2011-

12 2012-

13 Avg S.D Skewness Range Min Max Catholic Syrian Bank 37.40 41.90 53.70 67.50 73.60 54.82 15.69 0.1313004 36.2 37.4 73.6 City Union Bank 56.52 65.10 78.10 84.70 93.80 75.64 14.96 -0.177512 37.28 56.5 93.8 Dhanlaxmi Bank 58.59 36.96 58.92 59.29 72.97 57.35 12.92 -0.897873 36.01 37 73 Federal Bank 75.00 81.30 92.30 101.10 107.50 91.44 13.46 -0.075389 32.5 75 108 ING Vysya Bank 60.64 62.38 67.48 55.98 64.43 62.18 4.302 -0.430539 11.5 56 67.5 Jammu & Kashmir Bank 50.00 73.10 85.60 88.60 104.90 80.44 20.44 -0.647784 54.9 50 105 Karnataka Bank 64.90 72.70 77.10 85.90 96.60 79.44 12.23 0.4392972 31.7 64.9 96.6 Karur Vysya Bank 63.80 78.90 92.60 98.40 101.40 87.02 15.59 -0.926936 37.6 63.8 101 Lakshmi Vilas Bank 51.00 56.00 71.90 78.70 86.30 68.78 14.95 -0.164924 35.3 51 86.3 Nainital Bank 42.50 52.10 58.50 65.60 74.80 58.7 12.38 -0.008182 32.3 42.5 74.8 Ratnakar Bank 37.30 39.10 43.50 60.70 73.90 50.9 15.84 0.8952902 36.6 37.3 73.9 South Indian Bank 64.50 77.10 91.80 107.90 120.10 92.28 22.47 0.014892 55.6 64.5 120 Tamilnad Mercantile Bank 67.93 87.02 95.92 106.88 113.32 94.21 17.83 -0.700213 45.4 67.9 113 Axis Bank 106.00 111.10 136.60 127.60 121.50 120.6 12.34 0.1204439 30.6 106 137 Development Credit Bank 37.90 51.50 49.10 51.40 67.40 51.46 10.53 0.5508487 29.5 37.9 67.4 HDFC Bank 44.60 59.00 65.30 65.40 75.00 61.86 11.22 -0.830451 30.4 44.6 75 ICICI Bank 115.40 76.50 73.50 70.80 73.50 81.94 18.81 2.1723217 44.6 70.8 115 IndusInd Bank 83.60 83.75 84.40 78.84 84.05 82.93 2.304 -2.136609 5.556 78.8 84.4 Kotak Mahindra Bank 34.70 48.70 53.50 61.30 68.60 53.36 12.9 -0.497026 33.9 34.7 68.6 Yes Bank 98.84 162.38 222.03 174.77 177.42 167.1 44.34 -0.719996 123.2 98.8 222



Table 4 showing Profit per Employee of Private Banks. Profit per employee (Amount in million)

Banks 2008-

09 2009-

10 2010-

11 2011-

12 2012-

13 Avg S.D Skewness Range Min Max Catholic Syrian Bank 0.14 0.01 0.05 0.10 0.12 0.08 0.055 -0.564893 0.133 0.01 0.14 City Union Bank 0.50 0.60 0.80 0.80 0.90 0.72 0.165 -0.527191 0.402 0.5 0.9 Dhanlaxmi Bank 0.41 0.07 0.07 -0.33 0.01 0.05 0.264 -0.137296 0.743 -0.3 0.41 Federal Bank 0.69 0.60 0.70 0.90 0.90 0.76 0.135 0.2204312 0.299 0.6 0.9 ING Vysya Bank 0.30 0.39 0.45 0.46 0.63 0.45 0.12 0.7460327 0.327 0.3 0.63 Jammu & Kashmir Bank 0.50 0.70 0.80 0.90 1.10 0.8 0.224 0 0.6 0.5 1.1 Karnataka Bank 0.50 0.30 0.40 0.40 0.50 0.42 0.084 -0.512241 0.2 0.3 0.5 Karur Vysya Bank 0.60 0.81 0.91 0.88 0.82 0.8 0.123 -1.565857 0.311 0.6 0.91 Lakshmi Vilas Bank 0.21 0.11 0.39 0.35 0.29 0.27 0.11 -0.600731 0.272 0.11 0.39 Nainital Bank 0.60 0.60 0.60 0.80 0.70 0.66 0.089 1.2577882 0.2 0.6 0.8 Ratnakar Bank 0.50 0.30 0.10 0.50 0.50 0.38 0.179 -1.257788 0.4 0.1 0.5 South Indian Bank 0.40 0.50 0.50 0.70 0.80 0.58 0.164 0.5184205 0.4 0.4 0.8 Tamilnad Mercantile Bank 0.64 0.81 0.99 1.10 1.39 0.99 0.284 0.3765734 0.747 0.64 1.39 Axis Bank 1.00 1.20 1.40 1.40 1.50 1.3 0.2 -0.9375 0.5 1 1.5 Development Credit Bank -0.40 -0.50 0.10 0.20 0.50 -0 0.421 -0.06983 1 -0.5 0.5 HDFC Bank 0.42 0.60 0.74 0.80 1.00 0.71 0.218 -0.06033 0.582 0.42 1 ICICI Bank 1.10 0.90 1.00 1.10 1.40 1.1 0.187 1.1454053 0.5 0.9 1.4 IndusInd Bank 0.35 0.65 0.82 0.86 0.92 0.72 0.23 -1.360077 0.571 0.35 0.92 Kotak Mahindra Bank 0.30 0.70 0.80 0.90 1.00 0.74 0.27 -1.338504 0.7 0.3 1 Yes Bank 1.14 1.68 2.09 2.04 2.10 1.81 0.414 -1.437895 0.962 1.14 2.1



AUTHOR’S PROFILE: Ruchi Sharma is Assistant Professor at College of Vocational studies, University of Delhi, Delhi

Ashutosh Goswami is Assistant Professor and Research scholar at University of Delhi, Delhi

Pradeep Kumar is Assistant Professor at Department of Commerce, Delhi School of Economics, University of Delhi, Delhi

Table 5 showing Net Interest Margin of private banks Net Interest Margin (Amount in million)

Banks 2008-

09 2009-

10 2010-

11 2011-

12 2012-

13 Avg S.D Skewness Range Min Max Catholic Syrian Bank 2.55 1.67 2.83 2.81 2.64 2.5 0.479 -1.913232 1.16 1.67 2.83 City Union Bank 2.92 2.67 3.21 3.03 3.02 2.97 0.198 -0.699781 0.54 2.67 3.21 Dhanlaxmi Bank 2.51 2.05 2.37 1.71 1.94 2.12 0.324 0.0598692 0.8 1.71 2.51 Federal Bank 3.69 3.42 3.67 3.49 3.00 3.45 0.279 -1.352551 0.69 3 3.69 ING Vysya Bank 2.26 2.52 2.76 2.81 3.02 2.67 0.292 -0.503429 0.76 2.26 3.02 Jammu & Kashmir Bank 2.79 2.79 3.32 3.32 3.51 3.15 0.334 -0.351588 0.72 2.79 3.51 Karnataka Bank 2.39 1.08 2.09 2.15 2.32 2.01 0.532 -1.94702 1.31 1.08 2.39 Karur Vysya Bank 2.59 2.90 3.06 2.79 2.75 2.82 0.175 0.1966603 0.47 2.59 3.06 Lakshmi Vilas Bank 2.07 2.65 3.07 2.52 2.32 2.53 0.375 0.4697963 1 2.07 3.07 Nainital Bank 4.12 3.52 3.76 3.88 3.54 3.76 0.25 0.5579382 0.6 3.52 4.12 Ratnakar Bank 3.99 3.11 3.58 3.58 2.55 3.36 0.551 -0.706734 1.44 2.55 3.99 South Indian Bank 2.79 2.48 2.71 2.79 2.84 2.72 0.143 -1.693338 0.36 2.48 2.84 Tamilnad Mercantile Bank 3.32 3.02 3.66 3.57 3.91 3.5 0.34 -0.399235 0.89 3.02 3.91 Axis Bank 2.87 3.05 3.10 3.04 3.09 3.03 0.093 -1.82723 0.23 2.87 3.1 Development Credit Bank 2.92 2.34 2.79 2.83 2.85 2.75 0.232 -2.002381 0.58 2.34 2.92 HDFC Bank 4.69 4.13 4.22 4.19 4.28 4.3 0.224 1.915637 0.56 4.13 4.69 ICICI Bank 2.15 2.19 2.34 2.40 2.70 2.36 0.218 1.1012021 0.55 2.15 2.7 IndusInd Bank 1.80 2.81 3.40 3.30 3.41 2.94 0.685 -1.629286 1.61 1.8 3.41 Kotak Mahindra Bank 5.33 5.62 4.75 4.31 4.29 4.86 0.6 0.3670839 1.33 4.29 5.62 Yes Bank 2.55 2.66 2.61 2.44 2.57 2.57 0.082 -0.821581 0.22 2.44 2.66



WOMEN ENTREPRENEURSHIP IN INDIA: NEED OF THE HOUR

Ketaki P. Sheth, Associate Professor, Anand Commerce College, Anand

ABSTRACT

During the last two decades, increasing numbers of Indian Women have entered the field of entrepreneurship and also they are gradually changing the face of business today, both literally and figuratively.

Today, more women are breaking free from the traditional, gender specific roles and venturing into the business world. Since 1980, the number of self employed women has increased three times as fast as the number of self employed men. The area chosen by women is traced out as an extension of their kitchen and knitting activities, mainly 3p’s, pickle, powder and papad, but with the spread of education and passage of time, women started shifting from 3p’s to modern 3E’s i.e. Energy Electronics and Engineering. But still they have not capitalized their potential in India the way it should be.

Keywords: Women Entrepreneurship, India

1. INTRODUCTION

“THAT COUNTRY AND THAT NATION WHICH DOSEN’T RESPECT WOMEN WILL NEVER BECOME GREAT NOW AND NOR WILL EVER IN FUTURE AND IN PURSUIT OF MAKING INDIA A GREAT NATION, LET US WORK TOWARDS GIVING WOMEN THEIR MUCH DESERVED STATUS.” - SWAMI VIVEKANAND

Women from the beginning had to fight for their rights. We have witnessed the revolution made by the women in last few years in the field of development of society by making association for rights of women backward class of the society. From this it is implied that they have ability to govern the society and when anybody can govern the society it can also govern the corporate because corporate is a subset of society women have proved to be good managers because they know how to manage a family how to manage relations, how to manage family budget and all these things are needed for corporate governance.

Despite all the social hurdles, Indian women stand tall from the rest of the crowd and are applauded for their achievements in their respective fields. She has competed with man and successfully stood up with him in every walk of life and business is no exception for this.

There is growing trend in women entrepreneurial activities. Women entrepreneurs are now contributing in large number of enterprises creating employment, fostering economic growth and development. Accordingly, during the last two decades, increasing numbers of Indian women have entered the field of entrepreneurship and also they are gradually changing the face of business of today, both literally and figuratively. But still they have not capitalized their potential in India the way it should be. 2. CONCEPT OF WOMEN ENTREPRENEURSHIP The Government of India has defined a women entrepreneur is “an enterprise owned and controlled by a woman having a minimum financial interest of 51% of the capital and giving atleast 51% of the employment generated in the enterprise to women” Thus, woman entrepreneur refers equally to someone who is a main (principal) in family business or partnership or to someone who is shareholder in a public company which she runs. Women entrepreneurs may be defined as the women or group of women who initiate, organize and co-operate business enterprise.



3. OBJECTIVES:

1. To ponder upon the factors/aspects that encourages women to become entrepreneurs. 2. To examine the problems faced by women entrepreneurs. 3. To determine/identify the possible success factors for women in such entrepreneurial

activities. 4. To evaluate the impact of assistance by the govt. on women’s entrepreneurship.

4. REASONS FOR WOMEN BECOMING ENTREPRENEURS:

Today more women are breaking free from the traditional gender specific roles and venturing in to the business world. Since 1980, the number of self-employed women has increased three times as fast as the number of self employed men. The area chosen by women is traced out as an extension of their kitchen and knitting activities, mainly 3p’s, pickle, powder and papad. But with the spread of education and passage of time women started shifting from 3p’s to modern 3E’s i.e. Energy, Electronics and Engineering Skills, Knowledge, adaptability and passion in business are the main reasons for women to emerge into business ventures. They have made their mark in business for the following reasons.

1. They want new challenges and opportunities for self-fulfillment. 2. They want change to control the balance between their family responsibilities and their

business lives. 3. A strong desire to do something positive. 4. Women are aware of their own traits rights and also the work situation. 5. Women of digital era are advancing rapidly from job seekers to job creators. 6. In short due to “push factors” and “pull factors” women are now willing to become

entrepreneurs.

Table - 1

WOMEN ENTREPRENEURSHIP IN INDIA

States No. of units

Registered No. of women entrepreneurs

Percentage

Gujarat 3872 1538 39.72 Karnatak 3822 1026 26.84 Kerala 5487 2135 38.91 Tamilnadu 9618 2930 30.36 Uttar Pradesh 7980 3180 39.84 Punjab 4791 1618 33.77 Maharastra 4339 1394 32.12 Madhya Pradesh 2967 842 28.38 Other states and UTS 14576 4185 28.71

Total 57,452 18,848 32.82

5. REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA:

Women entrepreneurs are not getting the same opportunities due to deep rooted discriminatory socio-cultural norms which perceive them as wives and mothers.

1. The basic problem or obstacle of a women entrepreneur is that she is a “WOMAN” This pertains to her responsibility towards family, society & work.

2. Women in India lead a protected life. They are not self-dependent which reduce their ability to bear risk and uncertainties involved in a business unit.

3. Women entrepreneurs have to face a stiff competition with the men entrepreneurs who easily involve in the promotion and development area and carry out easy marketing of their products with both the organized sector and their mail counterparts.



4. The major hurdles that the women face during starting and running a company generally come from financing and balancing of life.

5. Internal factors like risk aversion by women, lack of confidence, lack of vision of strategic leaders etc.

6. Women are under a social pressure which restrains them to prosper and achieve success in the field of entrepreneurship.

7. Indian women give more emphasis to family and relationship. 8. Women controlled business are often small and it is not always easy for women to access the

information they need regarding technology, training, innovative Schemes, Concessions, alternative markets etc.

9. Achievement motivation of the women found less compared to male members. 10. Lack of awareness about the financial assistance in the form of incentives, loans, schemes

etc. by the institutions in the financial sector.

6. MEASURES/REMEDIES TO REMOVE THE OBSTACLES:

Ø “Half of the brainpower on earth is in the heads of women. Today, the difficulty is to move from the acceptance of equal rights to the reality of equal opportunity. This transition will not be complete until women and men have equal opportunities for occupying positions in power structures throughout the world. This includes not only public law-making and policy formulating bodies, but also the world of private business, society as a whole stands to gain by accelerating the process” - M. Rene Monory, President of the senate, France.

Ø The basic requirement in development of women entrepreneurship is to make aware the women regarding her existence, her unique identity and her contribution towards the economic growth and development of country.

Ø Next emerging sectors of the country’s economy, which are vital for India’s growth, should have more projects, oriented towards women.

Ø A majority of women entrepreneurs are from the middle class families but have traditional education (low technical education), but desire to become entrepreneurs. This potential should be identified and tapped.

Ø Mobile training centers should be opened. Ø Encourage women’s participation in decision- making. Ø Training and professional competence and leadership skill to be extended to women

entrepreneurs Ø State finance corporations and financing institutions should permit by statute to extend purely

trade related finance to women entrepreneurs. Ø A women entrepreneur’s guidance cell should be set up to handle the various problems of

women entrepreneurs all over the state. Ø Provision of micro credit system and enterprise credit system to the women entrepreneurs

should make available at local level . Ø Involvement of Non-Government organization in women entrepreneurial training programmes

and councelling is necessary.

7. CONCLUSION:

India is indeed witnessing the dawn of new entrepreneurial era that is being populated by a new breed of entrepreneurs that include first generation entrepreneurs, women entrepreneurs and social entrepreneurs. In the past few decades women have held the offices in the country and have served with dignity of success. India has many women entrepreneurs who have proved their mettle and have taken the whole country by storm. Few names are Mr. SimonTata, Mrs. Sumati Morarji, Ms. Nina Mehrtra, Ms. Shahnaz Hussain, Ms. Kiran Mazumdar, Ms. lalita Gupte, Ms. Naina lal Kidwai and likewise. We always see that a competent woman becomes sincere and hard working employee, but, if she becomes an entrepreneur she can provide livelihood to more than 10 women atleast. The unexplored talents of young women can be identified, trained and used for various types of



industries to increase the productivity in the industrial sector and also helps nation for its Economic Development.

REFERANCES:

1. Desai Vasant “The Dynamics of Entrepreneurial Development and Management”. 2. Gupta C.B and N. P Srinivasan “Entrepreneurship Development in India”. 3. Moore DP & Buttner, E.H. (1997) Women Entrepreneurs: Moving beyond New Generation of

Women Entrepreneurs Achieving Business Success. 4. Ramani V.V “Women Empowerment Issues and Experiences. 5. Winn, Joan (2005) “Women Entrepreneurs: Can we remove The Barriers? International

Entrepreneurship and Management Journal, 1(3): 381 – 397.

v Website · www. Economist.com · www.forbes.com/site/work-in-progress/2012/06/08/entrepreneurship-is-the-new-omens-

movement · www.research.brown.edu/pdf/1100924770.pdf · www.icfaijournals.com

AUTHOR’S PROFILE:

Dr. Ketaki P. Sheth is Associate Professor at Anand Commerce College, Anand

http://www.forbes.com/site/work-in-progress/2012/06/08/entrepreneurship-is-the-new-omens-movement

http://www.forbes.com/site/work-in-progress/2012/06/08/entrepreneurship-is-the-new-omens-movement

http://www.research.brown.edu/pdf/1100924770.pdf



A COMPARATIVE STUDY OF EFFICIENCY OF BANK OF BARODA AND DENA BANK WITH CAMEL MODEL

S. G. Patel, M.P. Arts and M.H. Commerce College, Ahmedabad.

B. O. Baxi, N.R. Institute of Business Administration, Ahmedabad ABSTRACT The purpose of this paper is to compare the productivity and profitability of Two Public Sector Banks started business in Gujarat. Both banks are under the control of Government of Indian but their performance is highly depending upon the Managerial personnel who drive bank. There is a general notion that staffs of private sector banks perform better than the staff of public sector banks and this study has been conducted to compare the business per employee and profit per employee. The study has been done through the comparison of 5 years profit and loss and balance sheet of two banks. Analysis of efficiency of Bank is based on several ratios. Employee and business per employee showed that Bank of Baroda is doing better than Dena Bank and this is mainly because of two reasons; first being the computerisation and the second being the entry of Bank of Baroda in retail loans and SME loans. The retail and SME loans on the one side increase the margins and on the other side are helpful in controlling the NPAs. The other most important factor is higher amount of staff and higher no of Branches. However the most significant factor is adoption of Technology” in bank. Bank of Baroda is behaving more professionally as to most conservative Dena Bank. Bank of Baroda has revamped the organisation’s mission and vision. Not only this but Re-Brand building by the bank and investment in Branding and Infrastructure of the bank pays a lot. In comparison of Bank of Baroda Dena Bank has not done significantly and their scope or area of operation is increasing at constant rate while in case of Bank of Baroda it is increasing at increasing Rate. CAMEL model’s M-component is considered here for comparison. M-component compares the Managerial efficiency. Data have been obtained from Annual report of Both Banks. Keywords: Managerial Efficiency, CAMEL Model, Public Sector Bank 1. IMPORTANCE OF MANAGERIAL DECISIONS IN PSU BANKS IN INDIA

Managerial Decisions are always playing very important role in the organization’s success and its area of operation. Managerial decisions put organization in the organisaiton in the right direction. The Banking sector is still in the hands of Government of Indian even after more than sixty years of independence. It is time to examine the quality of managerial decisions in the banking Industry through various directors of the Banks in PSU Banks. Boards of Banks are key responsible personnel for the performance of any bank in India. Effectiveness of the board can be measures by the various parameters. In the present paper, an attempt has been made to under the impact of decision on the business of banks and profitably of Bank. Banking Sector is passing though very tough time. Indian Banks are now facing problems of High or constantly increasing NPA, Lack of Technological Support, Lack of Trained Staff, Tough competition and strict vigilance of the RBI and many more. Decisions of top level management in respect of increasing no of branch, (which increases the business of Bank), Efficiency of staff and Branch in terms of Advances and Deposits are major concern areas for fair evaluation of the Managerial Performance of Bank. Banks have to determine the place of opening Branch that gives business in terms of Advances as well as Deposit. Branch opening decision is very crucial, as it requires great amount of Capital and deployment of Staff and other resources. The effective deployment and utilisaiton for the resources should be reviewed for decisions. 2. BANK OF BARODA AND DENA BANK Bank of Baroda was founded by Maharaja Sayajirao Gaekwad in July 1908. It started with a paid up capital of Rs 10 lakh. Bank of Baroda is a pioneer in various customer centric initiatives in the Indian banking sector. Bank is amongst first in the industry to complete an all-inclusive rebranding exercise



wherein various novel customer centric initiatives were undertaken along with the change of logo. The initiatives include setting up of specialized NRI Branches, Gen-Next Branches and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy disbursal of loans. Ever since it’s rebranding in 2005, bank has consistently promoted its major strengths viz. large international presence, technological advancement and superior customer service etc. Bank had introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to showcase how it has utilized technology to nurture long-term relationships for superior customer experience. The sub brand has been reinforced by alternate delivery channels such as internet banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan Factories, SME Loan Factories, and City Sales Office etc. Bank constant endeavor to strengthen its branch/ATM network combined with well informed staff offering personalized service at its various touch points have enhanced customer interactions and satisfaction. Thus, the Bank has firmly positioned itself as a technologically advanced customer-centric bank. Dena Bank is one of the most prestigious banks of India having a good market share. The Bank is one among the few banks to receive the World Bank loan for technological up gradation and training. In the year 1969, the Dena Bank was nationalized along with 13 other Banks in India. The Bank entered into arrangement with four mutual funds namely, HDFC Mutual Fund, ING Vysya Mutual Fund, Reliance Mutual Fund and Kotak Mutual Fund for distribution of their mutual fund products. In the same year, the Bank introduced new products namely Dena Maha Tax Bachat Yojana, Dena Double Deposit Scheme, Dena Super Premium Current Account and Denalaxmi Gold Deposit Scheme. The Bank entered into arrangement with three reputed mutual funds namely, Birla Sunlife Mutual Fund, Tata Mutual Fund and SBI Mutual Fund for distribution of their mutual fund products. In November 2008, SBI Card and Dena Bank launched the SBI Dena Bank Card with two variants Gold & International in Mumbai. The SBI Dena Bank Credit Card is developed with the popular international credit card franchise Visa International.

1) Capital and Other Aspects Dena Bank and Bank of Baroda both are under the management of Government India since long and for the same period. However, the efficiency of bank and its profitability is different to great extent. Banks are under the shadow of different representatives of Government of India and Reserve Bank of India. Though both banks are under the Government of India undertaking, their performance in terms of Profitability and other aspects is very different. Bank of Baroda has utilised its resources to greater extent and very conscious about its Indian and overseas operations. Dena Bank is much conservative and becoming tool for the Agriculture finances its review on behalf of Reserve Bank of India in Gujarat. Both Banks are operated in the Gujarat in the initial years but Bank of Baroda has extended its scope successfully in the overseas market also. Quick adoption of technology, right time Brand revamp and Visionary Management makes Bank of Baroda more Efficinet and Profitable with reference to Dena Bank.

Advances and Deposits by both Banks are as under

143251175035

228676287377

328187

29185 35721 45163 57159 66457

0

50000

100000

150000

200000

250000

300000

350000

2008-09 2009-10 2010-11 2011-12 2012-13

ADVANCES BY BOTH BANKS (Rs. Croes)

ADVANCES BANK OF BARODA ADVANCES DENA BANK



Advances by Bank of Baroda are very high as compare to Dena Bank. Not only this but raise in the advances is also increasing at very high rate in Bank of Baroda as to Dena Bank In case of Deposit also Bank of Baroda is aggressive as to Dena Bank.

2) No of Branches

Bank of Baroda has operations in wider are as to Dena Bank. Bank of Baroda has wider network of operations, which leads to higher amount of business. Dena Bank has just half no branches as to Bank of Baroda. Not only this but Dena Bank not increasing Branches significantly in span of five years. Dena Bank has increased 280 branches in span of five years and Bank of Baroda has increased 1362 Branches. Aggressive in increase in the span of operation always pays. Bank of Baroda has developed its business in terms of New Branch nearly six times as to Dena Bank.

192397241262

305439384871

473883

43051 51345 64210 77167 97207

0

100000

200000

300000

400000

500000

2008-09 2009-10 2010-11 2011-12 2012-13

DEPOSITS BY BOTH BANKS (Rs. croes)

DEPOSITS BANK OF BARODA DEPOSITS DENA BANK

29743418 3418

38594336

1184 1223 1291 1342 1464

0

1000

2000

3000

4000

5000

2009 2010 2011 2012 2013

NO OF BRANCHES

BANK OF BARODA DENA BANK



3) No of Employees

Looking to the above chart it can be concluded that the Dena Bank is facing the problem of lower staff. Bank’s approach towards the utilisaiotn of Human capital and hiring efficinet Human Capital is also pathetic. Bank has opened new 280 branches in last five years but total no of employees increased are just 1210. In case of Bank of Baroda this figure, touch to 6270

3. CAMEL MODEL-MANAGERIAL ASPECTS

Management of financial institution is generally evaluated in terms of capital adequacy, asset quality, earnings and profitability, liquidity and risk sensitivity ratings. In addition, performance evaluation includes compliance with set norms, ability to plan and react to changing circumstances, technical competence, leadership and administrative ability. Sound management is one of the most important factors behind financial institutions’ performance. Indicators of quality of management, however, are primarily applicable to individual institutions, and cannot be easily aggregated across the sector. Furthermore, given the qualitative nature of management, it is difficult to judge its soundness just by looking at financial accounts of the banks. Nevertheless, total advance to total deposit, business per employee and profit per employee helps in gauging the management quality of the banking institutions. Several indicators, however, can jointly serve—as, for instance, efficiency measures do—as an indicator of management soundness. The ratios used to evaluate management efficiency are described asunder:- It involves a subjective analysis for measuring the efficiency of the management. To evaluate the efficiency of management the ratios, like Business Per Employee, Profit Per Employee, Advances Per Employee, Deposits Per Employee, Business Per Branch, Advances Per Branch and Deposits Per Branch, which best reflect the quality of management are calculated. Business per Employee; This ratio measures the efficiency of all the employees of a bank in generating business for the bank. It is calculated by dividing the total business by the total number of employees. Business means the sum of total advances and total deposits in a particular year. Profit per Employee: This ratio measures the efficiency of all employees of a bank in generating profit for the banks. It is calculated by dividing the total profit earned by the bank, by the total number of employees. The higher the ratio, the higher will be the efficiency of employees. Deposits per Employee: This ratio measures the efficiency of all employees of a bank in generating output in terms of deposits for the banks. It is calculated by dividing the total deposits held by the bank, by the total number of employees. The higher the ratio, the higher will be the efficiency of employees. Advances per Employee:

36838 38960 40046 42175 43108

9883 10525 9953 10202 11093

0

10000

20000

30000

40000

50000

2009 2010 2011 2012 2013

NO OF EMPLOYEES




This ratio measures the efficiency of all employees of a bank in generating output in terms of advances for the banks. It is calculated by dividing the total advances of the bank, by the total number of employees. The higher the ratio, the higher will be the efficiency of employees. Business per Branch; This ratio measures the efficiency of all the branches of a bank in generating business for the bank. It is calculated by dividing the total business by the total number of branches. Business means the sum of total advances and total deposits in a particular year. Deposits per Branch: This ratio measures the efficiency of all branches of a bank in generating output in terms of deposits for the banks. It is calculated by dividing the total deposits held by the bank, by the total number of branches. The higher the ratio, the higher will be the efficiency of branches. Advances per Branch: This ratio measures the efficiency of all branches of a bank in generating output in terms of advances for the banks. It is calculated by dividing the total advances of the bank, by the total number of branches. The higher the ratio, the higher will be the efficiency of branches. Here in the comparative analysis we have ignored ratios in direct relation with the Advances and Deposits. The amount of Deposit and Advances of both banks are significantly different. If we include the comparison of both banks’ performance based on the Basis of Absolute Advances and Absolute Deposits then it might not provide us true result.

4. Literature Review

Bhayani (2006) conducted a comparative study of Performance of the New Indian Private Sector Banks: A Comparative Study. He concluded that aggregate performance of IDBI is best among all the banks under study and followed by UTI.

Ashish and Sunil (2012) has trace out while examining efficiency of Public Sector Banks that sample banks have the scope of producing 1.045 times as much output from the same inputs. On the basis of technical efficiency, only six banks have been found to be efficient. With regard to pure technical efficiency score 10 banks are efficient which indicates that scale inefficiency is the main reason of inefficiency among banks in India. In the light of these results, inefficient banks witnessing diseconomies of scale should reduce their size and those inefficient banks, which are having increasing returns to scale, should expand their business by deploying more resources. Chaudhry and Tendon (2010) in his study reveals that State Bank of Hyderabad and State Bank of Bikaner has shown least CAGR of return on equity and return on assets respectively and compound growth of return on equity and return on assets could not be calculated in case of Dena Bank, Punjab& Sind Bank and Indian Bank due to negative return on equity and return on assets. Spread ratio was highest in case of Indian Bank and lowest in case of State Bank of Patiala. It is suggested that government should formulate bank specific policies and should implement these policies through Reserve Bank of India for upliftment of Public Sector Banks .Public sector banks should try to upgrade technology and should formulate customer friendly policies to face competition at national and international level. India Banking 2010 Towards a High-performing Sector report by Mc Kinsey reveals that strengthening human capital will be the single biggest challenge. Old private sector banks also have the need to fundamentally strengthen skill levels. New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/ HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. Maintaining a fundamentally long-term value-creation mindset will be their greatest challenge. The extent to which Indian policy makers and bank managements develop and execute such a clear and complementary agenda to tackle emerging discontinuities will lay the foundations for a high-performing sector in 2010.



Rajan Reddy and Pandit (2011) attempts to measure productivity and thereby efficiency of Indian scheduled commercial banks for the period 1979 through 2008 using the asset approach, under which bank output is measured as quantum of bank revenue (loans and investments). Technical efficiency measure has been examined, using semi parametric PSS efficient estimates. Significant changes in the policy environment have clearly enabled banks to expand their operations efficiently under the new liberalized atmosphere. It turns out that the public sector banks (PSB) i.e. the nationalized banks (NB) and state bank of India and its associates (SBI&A) are more efficient compared to domestic private banks and foreign banks.

5. RESEARCH METHODOLOGY a) Research Objectives

I. To know and compare the managerial efficiency of Branch of Both banks in terms of Business of both Banks

II. To know and compare the managerial efficiency of Both Branch b) Research Design

The said research is describing the impact of managerial decisions on the business of bank. Hence, we have adopted descriptive research design.

c) Scope of Research Comparison of various ratios of Managerial Ratios suggested in the CAMEL model is compared in the research. Hence, the research work has been executed on the basis of applicability of CAMEL model and in the Managerial aspects only.

d) Type of Data Secondary data has been utilised which is available from annual report of Bank of Baroda and Dena Bank

e) Limitations of the Research Research work is carried on the basis of CAMEL model only. Hence, the research work is carrying all limitations, which are carried on by model.

6. DATA ANALYSIS CAMEL Managerial Ratios: (Note: All following data are expressed in Rs. Cores)

1) Business Per Employees: (in cores)

Base Year Comparison 2009 2010 2011 2012 2013 BANK OF BARODA 100 118 149 194 223 DENA BANK 100 113 150 180 202

In span of five years, there is significant increase in the business of both banks. Very insignificant difference between both banks in terms of Business per Employee was found in first three years. Bank of Baroda is proving himself superior in business of bank per employee in last two years as to

7.578.94

11.26

14.6616.89

7.31 8.2710.99

13.1714.75

0

5

10

15

20

2009 2010 2011 2012 2013

BUSINESS PER EMPLOYESS




Dena Bank. Bank of Baroda is performing well as it has higher business per employee by 2.14 cores for Dena Bank. In span of last five years both banks has doubled the business per employees. Technology adoption by the Bank of Baroda shows higher efficiency. In stand-alone position while taking 2008-09 as base year, Bank of Baroda has performed well as to Dena Bank.

2) Profit Per Employee(in cores):


Profit Per employee is very important parameter for the measuring the managerial, efficiency of Bank. As per above comparative chart Bank of Baroda is in far better position as to Dena Bank. In the year 2008-09 Bank of Baroda had 150% higher profit per employee as to Dena Bank. Gap betWeen both bank in terms of Profit Per employee has been widen up-to 2011-12. The above chart clearly state that in last four years profitability is constantly increasing but in last year 2012-13 there is marginally decline in the Profit per Employee. There is higher reduction in profit per employee in case of Bank of Baroda in the year 2012-13 in caparison to year 2011-12 as to Dena Bank. By comparing data mentioned above, we can conclude Dena Bank’s profit per employee is less then Bank of Baroda by 30%. Taking 208-09 as base year Bank of Baroda and Dena Bank both are constantly growing is first four years but surprisingly down significantly in the last year 2012-13.

6.057.85

10.5911.87

10.39

4.28 4.866.15

7.87 7.31

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2009 2010 2011 2012 2013

PROFIT PER EMPLOYEE




3) Advances Per Employee(in cores):


Efficiency of employee in terms of Advances generated by the Bank per employee is one important parameter, which contribute towards the efficient and effective. In the span of five year Advances per employee of Dena Bank has been increased it by 100% but Bank Baroda had increased at 90% for the same time. Advances per Employee are constantly increasing even though there is reduction is profit in last year. Gap of an average 1.2 cores in terms of Advance per Employee is observed in both banks in last five years.

4) Deposit Per Employee(in cores):


In terms of Deposit collection per employee, also Bank of Baroda is in better position as to Dena Bank. Bank of Baroda and Dena Bank both have doubled the Deposit per Employee in the span of five years. However, in each year Bank of Baroda has higher deposit by 2.75 corers per employee as to Dena Bank. Constant and steady growth of Deposit per employee by both Banks shows higher efficiency of employees of both banks. Difference in deposit per employee may be due to other factors.

3.9 4.55.7

6.87.6

3.0 3.44.5

5.6 6.0

0.0

2.0

4.0

6.0

8.0

2009 2010 2011 2012 2013

ADVANCES PER EMPLOYEE


5.226.19

7.639.13

10.99

4.36 4.886.45

7.568.76

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2009 2010 2011 2012 2013

DEPOSIT PER EMPLOYEE




Taking 2008-9 as base year for first four years Bank of Baroda and Dena Bank both had achieved equal amount of growth but in last year, Bank of Baroda has achieved growth at higher rates as to Dena Bank. 5) Business Per Branch(in cores): Branch wise efficiency of Bank of Baroda and Dena Bank is measured by Business per Branch Ratio. Profitability per Branch shows effectiveness of Branch. In the char, comparative analysis is presented which shows that Bank of Baroda is superior in establishing effective Branches as to Dena Bank.


Business per Branch is a parameter, which shows the efficiency of Branch of Bank. From above chart, we can say that in comparison Bank of Baroda is significantly ahead in Business per Branch. The performance of Bank Baroda is far ahead then Dena Bank in terms of Business per Branch. Dena Bank’s performance is just 3/4th of the Business per Branch.

6) Advance Per Branch(in cores):

113132

156 170185

66 7192

108 119

0

50

100

150

200

2009 2010 2011 2012 2013

BUSINESS PER BRANCH


48 51

6774 76

2529

3543 45

0

10

20

30

40

50

60

70

80

2009 2010 2011 2012 2013

ADVANCES PER BRANCH

BANK OF BARODA DENA BANK ADVANCES PER BRANCH



BASE YEAR COMPARISON 2009 2010 2011 2012 2013 BANK OF BARODA 100 107 139 155 158

DENA BANK 100 117 140 170 182 Looking to above chart in case of Bank of Baroda Advances per Branch is showing slow growth in first two year and then after it jumped to 67 cores per Branch in 2010-11 and in last two year, it becomes more stagnant. In case of Dena Bank, it has achieved slow but steady growth in first three years and in last two years, it is stagnant. However, in all five years the Gap between the Bank of Baroda and Dena Bank for Profit Branch is remaining stagnant. On an average Bank Baroda’s advance is higher by Rs.30 cores per Branch.

7) Deposit Per Branch (in cores):

BASE YEAR COMPARISION 2009 2010 2011 2012 2013

BANK OF BARODA 100 109 138 154 169 DENA BANK 100 115 137 158 182

Dena Bank’s performance is significantly lower than Bank of Baroda in terms of Deposit per Branch. Branch wise efficiency in getting deposit is just half to Bank of Baroda. In the span of five years, the GAP or difference in efficiency between both banks has been widened. Growth of Deposit per Branch is higher in Bank of Baroda in last three years. However, in Case of Dena Bank it is constant but sluggish. This makes negative impact on overall business of the Bank. 6. FINDINGS Comparing the performance of both Bank of Baroda is found very strong and aggressive in Banking operations and expansion also. Dena Bank is far behind to Bank of Baroda in various aspects. The difference in terms of Business per Employee and Business per Branch shows difference in managerial capability of both the banks. 1) In the beginning time both banks were at it level of Business per Employees but at the n end of

study time 2012-13 Bank of Baroda having higher Business per Employee by Rs. 2.14 cores per employee.

2) In the last year of study 2012-13, Bank of Baroda has increased business significantly and achieved growth of Business Rs. 29 cores per employee in single.

3) Profit per Employee of Bank of Baroda is higher than Dena Bank by 25%. 4) By comparing performance of 2008-09 with other year’s performance, the performance and

growth of both Banks are same.

64.7 70.6

89.499.7

109.3

36.4 42.049.7

57.566.4

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2009 2010 2011 2012 2013

DEPOSITS PER BRANCH




5) Advance per employee shows the efficiency of each employee to generate business of loan for bank. This ratio shows very high fluctuations in the span of five years amongst both banks. The efficiency of Bank of Baroda is higher as to the Dena Bank.

6) However, by comparing stand-alone performance and taking 2008-09 as base year Dena Bank is performing slightly better as to Bank of Baroda.

7) While comparing Deposit per Employee same situation is there. Bank of Baroda’s employees performing well and getting higher deposit per employee by Rs.2.23 cores in 2012-13.

8) Branch wise efficiency shows the effectives working of respective Branch. Bank of Baroda is paying attention about the infrastructure and communication to the consumers through branch in much better way as to Dena Bank.

9) Bank of Baroda is very sensitive and alert for the marketing aspects of banking activities, which is reflected in the Business Per Bank.

10) Business per Branch by Bank of Baroda is just double to the Dena Bank in first two years of study and in the last year of study Bank of Baroda has

11) Advance per Branch indicates the Advances given by Branch in the different sectors. Bank of Baroda and Dena Bank both have faces problem in last two years of study.

12) Sluggish growth is registered in last two years for Advances per Branch. 13) In comparison of Base year 2008-09 Dena Bank has achieved higher growth as to Bank of

Baroda. 14) Dena Bank’s Deposit per Branch is nearly half then Bank of Baroda. 15) If we compare individual growth of Bank and takes 2008-09 as base year Dena Bank perform

well as to Bank of Baroda in last year of study. 16) The superior performance of Bank of Baroda as to Dena Bank is due to extensive Branch net

work and higher no of Employee and greater adoption of the Technology.

7. CONCLUSION: From above study, we found that both banks are working in western part of country and come into existence in the Government hand on same day but performance of both banks is quite different. Board of Governors or Directors of Bank is more responsible for the performance of Bank in terms of all parameters based on Branch and Employees. Looking to the various ratios it is concluded that the Bank of Baroda has proven efficient in all respect. Not only this, but high adoptability of technology, trained and efficient staff plays very vital role in the efficiency and efficacy of Bank. Dena bank is doing fair with the present infrastructure and staff but not efficiently in comparison to the Bank of Baroda. Brand revamping decisions of Bank of Baroda and aggressive marketing and adopting mascot for the advertisement and effective Branch level working makes Bank of Baroda in true sense profitable Bank of Government of India. 8. SUGGESTIONS

· Bank of Baroda have to extend their banking in other states which can contributes greater in the profitability

· Dena Bank has to go for exercising Brand Revamp-Brand Building process, which gives new recognisation to Bank.

· Infrastructure and Branch level management of Dena Bank proven hurdle for the growth of Bank, which requires improvement a lot.

· Aggressive marketing and attractive product portfolio is necessary for Dena Bank for better performance.

· Trained staff and extensive Branch Net work and little liberal approach towards Loan are necessary for the Dena Bank’s Management.

· Selection of proper Branch Location and recruiting right candidates in the Bank is utmost priority of the Dena Bank.

· NO of employees in Dena Bank is remaining stagnant even after span of Five years may be reason for poor efficiency.

REFERENCES:

· Ashish Kumar, Sunil Kumar A Study of Efficiency of Public Sector Banks in India IJMRS’s International Journal of Management Sciences, Vol. 01, Issue 02, June 2012, ISSN: 2277-968X pp 102-108



· Bhayani S. J. (2006), Performance of the New Indian Private Sector Banks: A Comparative Study, The Icfaian Journal of Management Research, Vol. V, No. 11, pp. 53-70.

· Evaluation in the Liberalized and Globalized Era’, Gyan Management, Vol. 2, No. 2, pp.3-24

· India Banking 2010 Towards a High-performing Sector, McKinsey Company, Report on Indian Banking. pp1-6

· S. S. Rajan, K.L N. Reddy and V. N. Pandit (2011) EFFICIENCY AND PRODUCTIVITY GROWTH IN INDIAN BANKING working paper June 2011, Centre for Development Economics Department of Economics, Delhi School of Economics

· Uppal, R. K. and Kaur, R. (2007). ‘Indian Banking Industry: Comparative Performance · Vikas Chaudhry and Suman Tondon (2010) “PERFORMANCE EVALUATION OF

PUBLIC SECTOR BANKS IN INDIA” APJRBM Volume1, Issue1 (Octo,2010) ISSN 2229-4104 pp 1-17.

· www.bankofbaroda.com · www.denabank.com · www.iba.org.in · www.rbi.org · www.ibef.org · http://www.iibf.org.in/scripts/iib_bankquest.asp

AUTHOR’S PROFILE:

S. G. Patel is Lecturer at M. P .Arts and M.H. Commerce College, Ahmedabad.

Dr. B. O. Baxi is Lecturer at N.R. Institute of Business Administration, Ahmedabad

http://www.bankofbaroda.com/

http://www.denabank.com/

http://www.iba.org/

http://www.rbi.org/

http://www.ibef.org/



A STUDY ON BUSINESS INTELLIGENCE AND MOBILE BUSINESS INTELLIGENCE

Deepa Kesari B.J. Vanijya MahavidyalayaVallabh Vidyanagar

ABSTRACT Business Intelligence (BI) is much more than software and describes a set of processes and technologies for simplifying and enhancing the use of information within a Company. In BI data is gathered from the IT systems in a company, whether they be ERP or CRM systems, or from Excel spread sheets and other personal productivity tools. Data is cleaned, standardized and then presented to business users in a friendly way. There are many mobile devices and platforms available today. The list is constantly growing and so is the platform support. There are hundreds of models available today, with multiple hardware and software combinations. The mobile BI program must account for lack of device standardization from the providers by constantly testing devices for the mobile BI apps. The present paper has been covered Business Intelligence Architecture and Dashboard, Operational & Collaborative Business Intelligence, Functions of Business Intelligence, Success factors for BI and its Implementation, advantages and disadvantages of Business Intelligence, Evolution of MBI & Relation between MBI & BI. Keywords: Business Intelligence, Mobile Business 1. INTRODUCTION Business intelligence (BI) is a broad category of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions.BI applications include the activities of decision support systems, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting and data mining. Business intelligence applications can be:

- Mission-critical and integral to an enterprise's operations or occasional to meet a special requirement - Enterprise-wide or local to one division, department - Centrally initiated or driven by user demand

This term was used as early as September, 1996, when a Gartner Group report said: By 2000, Information Democracy will emerge in forward-thinking enterprises, with Business Intelligence information and applications available broadly to employees, consultants, customers, suppliers, and the public. The key to thriving in a competitive marketplace is staying ahead of the competition. Making sound business decisions based on accurate and current information takes more than intuition. Data analysis, reporting, and query tools can help business users wade through a sea of data to synthesize valuable information from it - today these tools collectively fall into a category called "Business Intelligence." Mobile business intelligence (MBI) is the ability to access BI-related data such as KPIs, business metrics, and dashboards on mobile devices. The concept of mobile BI dates back to the early 1990s when mobile phone use first began to become widespread. Early advocates of mobile BI immediately grasped the potential of mobile phones to simplify the distribution of business-critical data to mobile or remote workers. However, it wasn't until the advent of the smartphone that mobile BI began to generate widespread attention. Mobile business intelligence is software that extends desktop business intelligence (BI) applications so they can be used on a mobile device. MBI applications optimizes traditional BI reports so they can be viewed easily on a small screen and is ideal for displaying key performance indicators (KPIs) and alerts on small screens with simple charts, graphs and spark lines. An additional benefit of MBI is that it allows data that's captured by the mobile device to be integrated on-the-fly so that reports are currents and mobile workers can make informed decisions in real time. Currently, there is not a unified mobile device standard for MBI, making it challenging for vendors to accommodate the way different end user devices. Some BI vendors have integrated mobile capabilities into their existing architecture, while other solutions require an additional server for mobile publishing. Deployment methods vary depending on the business needs and types of mobile devices used. Some vendors use push technology to make sure the device has the most current data, while other vendors require the user to open an application on the mobile

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device and pull the most current data. Regardless of delivery method, data security is an important consideration for any deployment and most vendors include encryption and strict authorization components in the applications. 2. OBJECTIVES OF THE STUDY 1. To know the Business Intelligence Architecture and Dashboard. 2. To know the Operational & Collaborative Business Intelligence. 3. To highlight the Functions of Business Intelligence. 4. To analyze Success factors for BI and its Implementation. 5. To know the advantages and disadvantages of Business Intelligence. 6. To state the Evolution of MBI & Relation between MBI & BI. 3. BUSINESS INTELLIGENCE ARCHITECTURE Business intelligence architecture is a framework for organizing the data, information management and technology components that are used to build business intelligence (BI) systems for reporting and data analytics. The underlying BI architecture plays an important role in business intelligence projects because it affects development and implementation decisions. The data components of a BI architecture include the data sources that corporate executives and other end users need to access and analyze to meet their business requirements. Important criteria in the source selection process include data currency, data quality and the level of detail in the data. Both structured and unstructured data may be required as part of a BI architecture, as well as information from both internal and external sources. Information management architectural components are used to transform raw transaction data into a consistent and coherent set of information that is suitable for BI uses. For example, this part of a BI architecture typically includes data integration, data cleansing and the creation of data dimensions and business rules that conform to the architectural guidelines. It may also define structures for data warehousing or for a data federation approach that aggregates information in virtual databases instead of physical data warehouses or data marts. The technology components are used to present information to business users and enable them to analyze the data. This includes the BI software suite or BI tools to be used within an organization as well as the supporting IT infrastructure – i.e., hardware, database software and networking devices. There are various types of BI applications that can be built into an architecture: reporting, ad hoc query, data mining and data visualization tools, plus online analytical processing (OLAP) software, business intelligence dashboards and performance scorecards. 4. BUSINESS INTELLIGENCE DASHBOARD A business intelligence dashboard is a data visualization tool that displays the current status of metrics and key performance indicators (KPIs) for an enterprise. Dashboards consolidate and arrange numbers, metrics and sometimes performance scorecards on a single screen. They may be tailored for a specific role and display metrics targeted for a single point of view or department. The essential features of a BI dashboard product include a customizable interface and the ability to pull real-time data from multiple sources. Oracle and Microsoft are among the vendors of business intelligence dashboards. BI dashboards can also be created through other business applications, such as Excel. Business intelligence dashboards are sometimes referred to as enterprise dashboards. The business intelligence dashboard is often confused with the performance scorecard. The main difference between the two, traditionally, is that a business intelligence dashboard, like the dashboard of a car, indicates the status at a specific point in time. A scorecard, on the other hand, displays progress over time towards specific goals. Dashboard and scorecard designs are increasingly converging. For example, some commercial dashboard products also include the ability to track progress towards a goal. A product combining elements of both dashboards and scorecards is sometimes referred to as a scoreboard. 5. OPERATIONAL BUSINESS INTELLIGENCE Operational business intelligence, sometimes called real-time business intelligence, is an approach to data analysis that enables decisions based on the real-time data companies generate and use on a day-to-day basis. Typically, the data is queried from within an organization’s enterprise

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applications. Operational business intelligence technology is primarily targeted at front-line workers, such as call center operators, who need timely data to do their jobs. With operational BI, analysis can take place in tandem with business processing, so that problems can be spotted and dealt with sooner than with conventional after-the-fact business intelligence (BI) approaches. It enables the creation of a performance and feedback loop in which decision makers can analyze what’s happening in the business, act upon their findings and immediately see the results of those actions. Data must be extremely current, which isn’t always possible with the traditional bounds of both enterprise reporting and data warehousing. However, most business processes at a typical company don’t require real-time data. With that in mind, a key part of every operational BI project is determining which business users need up-to-the-minute data for BI purposes and how they will handle getting data delivered to them in that fashion. 6. COLLABORATIVE BUSINESS INTELLIGENCE Collaborative BI (collaborative business intelligence) is the merging of business intelligence software with collaboration tools, including social and Web 2.0 technologies, to support improved data-driven decision making. Collaborative BI can be applied to enterprise-wide reporting and analytics, making the sharing process easier and enabling more efficient decision making among team members who may have been working to reach conclusions on an individual basis. Compared to more solitary, conclusion-based traditional BI tools, collaborative BI emphasizes the problem-solving process. Tools allow peers to analyze data and exchange information and ideas through Web 2.0 tools like blogs and wikis. Modern tools also support brainstorming through social networking-like features, which continue to gain popularity for both business and personal use. Collaborative BI vendors include SAP and Microsoft. Microsoft SharePoint, which focuses on content management, is a popular collaborative product. Other collaborative software includes Lotus Notes. 7. FUNCTIONS OF BUSINESS INTELLIGENCE BI technologies provide historical, current, and predictive views of business operations. Common functions of business intelligence technologies are: · Reporting · Online analytical processing · Analytics · Data mining · Business performance management · Benchmarking · Text mining · Predictive analytics.

8. BUSINESS INTELLIGENCE FOR SUCCESS Business intelligence equips enterprises to gain business advantage from data. Once an organization is powered with BI it can anticipate enhanced turnaround time on data collection, come up with fresh ideas for novel business initiatives, foresee accurate picture of customer needs and demands, and perform more targeted marketing campaigns. In addition, it will gain enhanced knowledge that will help it advance its brand into the top slot in terms of market share, reduce its overheads and also diminish delays in supply chain, among other advantages. Decisions purely based on the gut feeling cannot assure success; but in BI’s fact-based decision-making framework, confident decisions can be made for assured business success. Further, BI makes an organization agile thereby giving it a competitive edge in today’s evolving market condition. 9. SUCCESS FACTORS OF BI IMPLEMENTATION Although there could be many factors that could affect the implementation process of a BI system, research by Naveen K. Vodapalli shows that the following are the critical success factors for business intelligence implementation:

1. Business - driven methodology and project management. 2. Clear vision and planning. 3. Committed management support & sponsorship.

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4. Data management and quality. 5. Mapping solutions to user requirements. 6. Performance considerations of the BI system. 7. Robust and expandable framework.

10. ADVANTAGES OF BUSINESS INTELLIGENCE Business Intelligence, when properly implemented and used, delivers many benefits. Some of the key advantages include:

· Alignment of an organization around a consistent set of Key Performance Indicators (KPIs) and Metrics

· Quicker, fact-based decision making · Simplified graphical presentation of KPIs and metrics · Reliable presentation of information · Combination of multiple data sources (ERP, CRM, Spread sheets, Budgets, etc.) · Faster collection and dissemination of information.

11. DISADVANTAGES OF BUSINESS INTELLIGENCE Some of the major Business Intelligence disadvantages are:

· Piling of Historical Data · Cost · Complexity · Muddling of commercial settings · Limited use · Time Consuming Implementation.

12. EVOLUTION OF MOBILE BUSINESS INTELIGENCE In the early days Development teams and analysts were quick to realize the potential of making business intelligence systems available on mobile devices. It wasn't until the mid 2000s, however, that smartphone technology started to catch up to the ambitions of development teams. Early iterations of mobile BI systems were constricted by the small screen size of devices like early BlackBerry or Symbian devices. Data was typically shown using tables of information which, unfortunately, made reading and using the data quite difficult .The story of Mobile Revolution is When Apple introduced the first generation of its iPhone in 2007, it heralded the beginning of the mobile revolution. Screen size increased, usability and performance rapidly improved, and more people than ever before owned a smartphone. Virtually overnight, the smartphone market had changed giving developers a capable platform as well as sufficient user demand to start developing mobile BI applications. To this day, many vendors report that iPhone (along with the iPad) access accounts for the majority of smartphone access to mobile BI applications. At Present day mobile access to BI applications is typically accomplished in one of two ways:

· Using a mobile-browser to access the application on the web · Using a native application that is designed for a specific mobile OS (such as iOS or

Android) Each approach has its benefits and disadvantages and, in the end, it depends on the use-case and scenario to determine which is best for any given business. In either case, mobile BI is one of the hottest and quickly evolving spaces in the software industry. Its promise attracts users and is fast gaining buy-in from leading organizations and executives from around the world. The reason behind this is simple: in the rapid-fire business world of the 21st century businesses and teams rely on real-time, on-demand access to business critical information. And at the end-game for mobile BI there is no doubt that mobile BI applications are rapidly evolving and are a hot commodity at the moment, but what's the end-game for these systems? Howard Dresner's independent research reveals high expectations for the growth of mobile BI. This trend is powered by not only the increasing capability of mobile technology like smartphones and tablets, but also by development teams hitting their stride and delivering solid BI platforms to mobile devices. Mobile BI is one piece of the BI puzzle. If BI is

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about making better decisions using the right data, then mobile BI is about making sure that everyone – especially remote workers – has access to that data anytime, anywhere. 13. RELATION BETWEEN MOBILE BUSINESS INTELLIGENCE AND BUSINESS INTELLIGENCE

The term business intelligence dates back to the late 1950s, but started getting traction when Howard Dresner offered up this definition of BI: "concepts and methods to improve business decision making by using fact-based support systems". As is commonly said, BI is about having the right data at the right time to make the right call. Mobile BI addresses the use-case of remote or mobile workers that need on-demand access to business-critical data. 14. CONCLUSION Business intelligence (BI) encompasses a wide range of applications and technologies useful for gathering, storing, analyzing and providing access to data. The overarching goal of strategic business intelligence planning is to help enterprise CIOs make faster, more informed business decisions. And now that this data can be taken "on the road" via mobile devices, CIOs are looking to put mobile BI in the palms of their users' hands -- literally. Mobile business intelligence relies upon software that extends desktop business intelligence applications for use on smartphone and tablets. Mobile BI allows enterprise users to access reports on the fly and makes decisions in real time, which is a boon to the business in today’s real competitive world. REFERENCES

· http://en.wikipedia.org/ · http://www.informationweek.com/ · http://www.b-eye-network.com/ · http://www.itbusiness.ca/ · http://businesssintelligence.blogspot.in/ · http://searchbusinessanalytics.techtarget.com/ · http://www.itinfo.am/ · http://www.klipfolio.com/ · http://businessintelligence.com/

AUTHOR’S PROFILE Deepa Kesari is Assistant Professor at B. J. Vanijya Mahavidyalaya, Vallabh Vidyanagar

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UNSOLVED BUSINESS DILEMMA: HUMAN RESOURCE

Bipin T. Vadhar, Management Consultant, Jamnagar

ABSTRACT Ethical conduct in business practice and HR procedures is no longer a matter of choice. Human Resource Management is a business function that is concerned with managing relations between groups of people in their capacity as employees, employers and managers. This particularly affects managers in HR, where decisions will affect people’s jobs and their future employment. This paper explores some of the ethical dilemmas encountered in the workplace, discussing ethical behaviour and values that relate to HR. Human resources representatives have access to extremely sensitive information. Keeping this information private is an ethical matter facing HR. Human resources personnel has an obligation to maintain the confidentiality of an employee's personal data. Ethics is a key branch of philosophy, concerned with analysing what is right or wrong in people’s behaviour or conduct. Philosophy presents us with suggestions about the nature of morality and ethics. Another very influential view stems from seeing people as having basic human rights. Where a human right exists, there must also be a duty or responsibility to recognise, support and acknowledge that right. We accept professional responsibility for our individual decisions and actions. HR professionals are expected to exhibit individual leadership as a role model for maintaining the highest standards of ethical conduct. Keywords: Human resources, business ethics, ethical concerns, ethical approaches ‘All Human Resource practices have an ethical foundation. HR deals with the practical consequences of human behaviour’. – Johnson, 2003 1. INTRODUCTION Ethical conduct in business practice and HR procedures is no longer a matter of choice. Human Resource Management is a business function that is concerned with managing relations between groups of people in their capacity as employees, employers and managers. Inevitably, this process may raise questions about what the respective responsibilities and rights of each party are in this relationship, and about what constitutes fair treatment. These questions are ethical in nature, and this chapter will focus on debates about the ethical basis of human resource management. Standards, values, morals and ethics have become increasingly complex in a postmodern society where absolutes have given way to tolerance and ambiguity. This particularly affects managers in HR, where decisions will affect people’s jobs and their future employment. This paper explores some of the ethical dilemmas encountered in the workplace, discussing ethical behaviour and values that relate to HR. It looks at relevant ethical tools, such as utilitarianism and relativism in order to examine current practices in the work-place and their links to corporate social responsibility. 2. THE SCOPE OF HUMAN RELATIONS IN MODERN TIMES Human relations focuses more on group problems and on the individual relations to the group, rather than on the individual per se or on his job. It also gives more emphasis to informal relationships, because these are of

- The individual lives in a dynamic Universe i.e. Philosophy. - He himself is active i.e. Psychology. - His activities are interwoven with the activities of others i.e. Sociology. - Most of his activities are of economic value i.e. Economics.

We have already made one reference before about the interrelatedness of problems in human relations. All such problems inhuman relations arise from all of these relationships. The making and



owing of material things do not constitute intrinsically worthful living for the worker or other members of society. In many case executives try to make employees happy and interested in their work. Management often wishes that employee would have a keener sense of interest in their tasks, in the company, and in industry. Employees do not wish to take over management’s responsibilities, or functions, but they do wish to have the worthfulness of their personalities recognized. Every employee wants to feel that the management respects him as a personality ad an important organ of the whole organization. 3. A SET OF MANAGEMENT VALUES 1. The value of explaining the WHY of every new plan or program, or every change in policy, procedure or methods, so that all concerned can understand the thinking behind it and cooperate intelligently. 2. The value of planning work as far ahead as possible, so that every one who has any contribution to make will have time to make it. 3. The value of frankness in all company relationships but used in a spirit of sincere and friendly interest, not of censure or criticism. 4. The value of showing confidence in men, so that they will not fear to express their ideas or use their initiative. 5. The value of developing loyalty, sincerity, and commitment to excel in the organization. 6. The value of giving warranted praise and the danger in unwarranted kind. 7. The value of being considerate, thoughtful, and appreciative in building a cooperative organization spirit a sense of truth and justice. 8. The value of explaining clearly the reasons why a suggested idea or plan cannot be adopted if it is impracticable. 9. The value of questioning the boss if he is wrong. 10. Finally, the value of true teaching rather than mere telling. 4. ETHICAL CONCERNS OF HR The core concern of business – proponents of the market economy argue – is in attempting to secure the best possible return on any investment. Any dilution of this focus will lead to the corruption of what is a finely balanced system. Businesses that seek to be ‘ethical’ as well as profitable will probably fail economically, following which the whole community may suffer. Rather, let the invisible hand guide the market and all will prosper. Like some evolutionary force, the best will always survive. Wealth will trickle down from successful enterprises, and humanity will be best served. Any constraint on the freedoms of the market – be they motivated by ethical angst or vote-seeking government policy – will just mess everything up. Notwithstanding the appeal of this position, a critique of business practice has continued to accumulate and assert itself, and to challenge the notion that business and morality have no meeting point. Concern has surfaced from a variety of sources: from consumer groups, political groups, religious and charitable organisations. Entrepreneurs, academics and researchers and management professionals have all expressed the view that standards of behavior within business need to be evaluated, and improved. Discrimination and Harassment Human resources professionals must ensure the organization remains compliant with anti-discrimination and harassment laws. Employee discrimination and harassment on the basis of race, gender or religion is an ethical issue human resources personnel face daily. Laws that prohibit discriminatory behavior such as the Civil Rights Act and Indians with Disabilities Act help HR



representatives develop training and awareness programs to prevent discrimination and harassment in the workplace. These laws also establish procedures human resources may use to report and discipline workers who display inappropriate discriminatory behavior. Privacy Human resources are involved in most aspects of employee relations including hiring, firing, compensation, benefits and leaves. Human resources representatives have access to extremely sensitive information. Keeping this information private is an ethical matter facing HR. Human resources personnel has an obligation to maintain the confidentiality of an employee's personal data.

Diversity Workplace diversity encompasses the various qualities, characteristics and experiences that distinguish one worker from another. These characteristics can be differences in race, gender, age, social status or other traits that make an individual unique. Treating a person differently because of these differences poses an ethical issue that faces human resources. HR personnel implement policies that promote diversity in the workplace and welcome the differences of the entire workforce. Safety Employee safety is an issue facing human resources personnel. The department must prevent and correct potentially dangerous situations. Human resources must promptly act on hazardous conditions that present safety concerns in the workplace. The department is also responsible for identifying potentially dangerous employees and ensuring they do not harm themselves or others within the organization. The unethical practice of HRM itself has also hit public attention: Off-shoring and exploiting ‘cheap’ labour markets; Using child labour; Reneging on company pension agreements; Longer working hours; Increasing work stress; 5. APPROACHES FOR ETHICAL HR DECISIONS Ethics is a key branch of philosophy, concerned with analysing what is right or wrong in people’s behaviour or conduct. Ethics and morality are terms that are often used interchangeably in discussions of good and evil. The term ‘ethics’ is usually applied to persons (ethics comes from the Greek ethos, meaning character) – and ‘morality’ to acts and behaviour (moral comes from the Latin moralis, meaning customs or manners).

Ethical Concerns

of HR

Discrimination

Privacy

Diversity

Safety



Philosophy presents us with suggestions about the nature of morality and ethics. It also offers us a set of tools for analysing and exploring morality. Some main issues and approaches will now be discussed: Relativism One core distinction when analysing morality is the issue of relativism –the idea that morality varies with culture, time and circumstances. The opposite position is that of absolutism, the notion that there are universal truths in morality that apply at all times and in all circumstances. In a global business world, this aspect becomes significant. When businesses operate globally, how far should they adapt company rules to local circumstances? Situational ethics can become problematical for organisations wishing to expand into new international markets. Consequentialist approaches (utilitarianism) This approach was developed by Jeremy Bentham and John Stuart Mill. Its main premise suggests that the morality of an act is determined by its consequences: people should do that which will bring the greatest utility (which is generally understood to mean whatever the group sees as good) to the greatest number affected by a given situation. Critics suggest that in practice it is very difficult to accurately determine what the maximal utility would be for all affected by a situation. People may not have the necessary information. The notion of utility is very vague. Are we thinking of the short or long term? These perspectives may lead to different conclusions. People may vary in their perceptions and requirements. What is the ‘majority’? Can we accept a situation where the benefits of the majority might mean the exploitation, and suffering, of the minority? In this system, vast income disparity, or even slavery, might be condoned on the grounds that it maximized the benefits of the majority. Some very morally repugnant acts might be condoned on the grounds of utilitarianism. Non-consequentialist or deontological approaches This approach, associated with Immanuel Kant (1724–1804), is sometimes referred to as ‘duty ethics’. Kant’s aim was to establish a set of absolute moral rules, developed through the application of reason. He also put forward an acid test for evaluating the quality of moral rules and this is termed: the categorical imperative. This states that: ‘I ought never to act except in such a way that I can also will that my maxim should become a universal law.’ In other words, moral rules should follow the principle of reciprocity: do as you would be done by. This premise can be found in the moral principles of many religious systems, including Islam, Christianity, Judaism and Buddhism.

Relativism

Utilitarianism

Deontological

Human Rights

Virtue Ethics

Stakeholder's Approach

Corporate Social Responsibility



A key notion for Kant was that of intentionality. It might well be that the outcome of an act leads to very bad consequences for people – for example, the closure of a site and subsequent job losses – but if one’s aims and intentions are good, then the act is a moral one. It’s all about motivation and meaning. Goodpaster has attempted to develop a set of rules along Kantian lines for business practice: 1. Avoid and prevent harming others. 2. Help those in need. 3. Do not lie or cheat. 4. Respect the rights of others. 5. Keep promises or contracts. 6. Obey the law. 7. Be fair. 8. Encourage others to follow these principles. Human rights Another very influential view stems from seeing people as having basic human rights. In this view, there is recognition of a core set of human rights. Where a human right exists, there must also be a duty or responsibility to recognise, support and acknowledge that right. There have been many attempts to codify and elaborate human rights, including the declaration of the Rights of Man, the Universal Declaration of Human Rights and the European Convention on Human Rights. Virtue ethics Virtue ethics is an approach that is not concerned to identify the qualities of good acts, or principles, but of good people. Acting as a ‘good person,’ Macintyre suggests, ‘is the state of being well and doing well - a complete human life lived at its best’. The virtuous man has to know that what he does is virtuous; a good man has to ‘judge to do the right thing in the right place at the right time in the right way’. This is not just the simple application of rules. The virtues include both intellectual and character virtues. A key distinction between this approach and others is that it focuses on the issue of agency in ethical conduct. It suggests that neither good intentions nor outcomes, codes and the recognition of basic rights will necessarily ensure ‘goodness’. Stakeholder analysis This approach has emerged from the area of applied business ethics, and proponents include Freeman (1998) and Weiss (1994). Free market economics accords rights only to shareholders in the business enterprise. Stakeholder analysis offers an alternative view. Stakeholder analysis sees morality as evolving within a community of equals, where rights and needs are recognised as residing within all individuals and groups that partake in business life. Organisations consist of many interwoven webs of relationships, rights and responsibilities. Many individuals and groups have a ‘stake’ in how an organisation performs, apart from just the shareholders and members of the board. Employees, customers, suppliers and the wider community should all be considered when decisions are made, and they should be consulted accordingly. However, there are a number of practical problems with this approach. Firstly, companies must identify relevant stakeholders – and this is not always an obvious matter. Secondly, when stakeholders are identified, an organisation has a moral obligation to discover their views. This is not always easy. Corporate social responsibility (CSR) Crowe (2002) defines CSR as, ‘all the ways in which a company relates to society from purchasing to product disposal, from human resources to human rights’. The concept is generally used in management literature to refer to the responsibilities and relations between an organisation and the



community within which it operates. This focuses attention away from individual practices and procedures, to the strategic direction and mission of the corporation as a whole. One approach that companies can take to CSR is to include a ‘social audit’ in their annual reports. This was first recommended by Medawar (1978), and shows not just the financial performance of a company, but also details of its impact on both the environment and the community. 6. CONCLUSION As HR professionals we are responsible for adding value to the organisations we serve and contributing to the ethical success of those organisations. We accept professional responsibility for our individual decisions and actions. We are also advocates for the profession by engaging in activities that enhance its credibility and value. HR professionals are expected to exhibit individual leadership as a role model for maintaining the highest standards of ethical conduct. As HR professionals we must maintain a high level of trust with our stakeholders. We must protect the interests of our stakeholders as well as our professional integrity and should not engage in activities that create actual, apparent or potential conflicts of interests. REFERNCES

Ø Aswathappa K., Human Resource and Personnel Management, 3rd edition, Tata McGraw Hill, New Delhi, 2004.

Ø Durai Pravin, human Resource Management, 1st edition, Pearson Publication, 2010 Ø Nell Minow; Shareholder Initiatives in 1995: An Activists Perspective; Lens papers October

1996. Ø Robert A. G. Monks; Corporate Governance In The Twenty-First Century: A Preliminary

Outline; Stanford International Conference, 1994. Ø www. Citehr/governancefor /html/

AUTHOR’S PROFILE Dr. Bipin T. Vadhar is a Management Consultant at Jamnagar.



"A CASE STUDY ON INNOVATIVE PRACTICES IN FAMILY OWNED ENTERPRISES” - PROTAGONIST- ABHISHEK ROONWAL, JEWEL PASSION

Sumita Kumar Department of BBM Mount Carmel College, Bangalore

Entrepreneurs become what they are for varied reasons. Entrepreneurs emerge from the population on demand, and become leaders because not only because of perceived opportunities available but also due to the fact that they are well-positioned to take advantage of them.

An entrepreneur may believe that they are among the few to recognize or be able to solve a problem by making necessary changes in their Business Model.

Change or Innovation is therefore not an option but a necessity for all , intensely competitive , knowledge driven and subject to uncertainty and rapid changes.

The ability of entrepreneurs to innovate relates to innate traits such as extroversion and a proclivity for risk-taking. An entrepreneur is passionate while launching a business in order to combine personal interests and talent with the ability to earn a living.

This case -study focuses on the business model changes this young entrepreneur has adopted. We have also tried to analyze the relationship between strategy , performance and best practices.

India has seen some very influential families in business (large scale, medium and small scale business). These families have made a lot of difference in the business and industrial culture of the country. These families have existed for over hundred years and have influenced the economic and political situation of the country.

JEWEL PASSION - A CASE STUDY

Goutham Jewellers, an average-sized jewelry showroom amidst the hustling bustling chickpet area in the heart of the Bangalore city, was started by Mr. Gautham Jain way back in 1986. A young lad and newly married at that time, started his family business to earn a living on his own after being trained at a relative's jewelry showroom for nearly 8 years on everything related to the retail jewelry industry.

After 25 years of a roller-coaster ride, today GouthamJewellers have established themselves as a traditional family business with a good credibility in the market and a large loyal customer base, surviving in the highly crowded and competitive jewelry market.

About the Entrepreneur

After completing his Masters in Business Administration and taking adequate training under his father, there was an urge in AbhishekRoonwal to do something on his own rather than just sitting in his father's establishment . Abhishek just could not do what his father has been doing for years i.e. coming to the shop, waiting for customers, doing business with them and wait helplessly when there are no customers knowing for a fact that nothing much could be done about it . He felt there had to be a change in the way that the business was being done since so many years. So he decided to change the Business Model.

What is a Business Model?

In the most basic sense, a business model is the method of doing business by which a company can sustain itself - that is, generate revenue.

Abhishek wanted to do something on his own and something different and for that he had to come out of his comfort zone. The idea he came up with was rather simple. Instead of waiting for customers to come to his establishment , he would go down to their place at a time of their convenience, not merely to sell jewelry but help customers buy jewelry. This willingness and passion to deliver happiness to customers gave birth to jewel passion.



After starting the venture in August 2010 with a small team of craftsmen, the business is climbing the ladder of the growth stage and is doing pretty well with an impressive annual turnover and a satisfied customer base.

Today Jewel Passion stands out as a unique business venture where we provide customized service at the doorstep for all jewelry solutions with an advantage of flexible payment options, educating the customers on the quality, price and tactics of competitors, creating value in the minds of customers and delivering happiness. The concept of providing service at doorstep was because today people cannot find time from their busy schedule to go out shopping to buy jewelry and our business helps them fulfill this need. The flexible payment option was introduced to make jewelry affordable to everyone without disturbing their financial commitments along with satisfying their jewelry needs.

In his remarkable journey, Abhishek was introduced to National Entrepreneurship Network (NEN), a Not for profit organization that aims in helping young entrepreneurs in their start- up ventures. It put him under a rigorous training to conceptualize his business model, understand market segmentation and implement strategies, identifying strengths and weakness, setting targets and ways to achieve them. NEN conducted interactive mentoring sessionswith mentors from IBM thus helping him find solutions to the hurdles he was facing in his start-up venture.

Jewel passion - A venture by AbhishekRoonwal

Concept/ Background

· The idea was to help customers buy jewelry, those customers who · Do not have the time to visit a jewelry showroom to fulfil their needs · Cannot afford to buy gold, silver and diamond jewelry due to the mounting prices · Want to buy from a trusted jeweler as many fraudulent things are happening currently in the

jewelry industry · Wish to get best value for their purchase since buying gold is no less than a luxury these days · Wish to stand out of the crowd by adorning elegant, well designed and elite jewelry · Like to be exclusively served in terms of buying jewelry

Mission Statement:

"Jewel Passion aims at catering to the needs of the customers at their door step by offering exquisite designer Gold, Silver & Diamond jewelry crafted with excellence and highest quality as per industry standards making jewelry affordable for every pocket size."

Purpose:

In today's scenario people do not have the time to visit a jewelry showroom to fulfill their needs with regard to jewelry. Besides the escalating gold and silver prices over the years has deprived the customer from buying jewelry. To win Customer's trust and loyalty in today's competitive world is a challenge in the jewelry industry. To help customers manage their busy schedule and at the same time fulfil their needs, jewel passion was started.

Jewel Passion, a mobile jewelry showroom, provides customized solutions to customers with regard to Gold, Silver and Diamond jewelry at their place and time of convenience with an added advantage of 'Customer Referral Flexible Payment Options'. As Abhishek says- "We At Jewel Passion do not sell but help customers buy jewelry and we understand that our customers value jewelry as good as an heirloom, hence we believe in not only delivering exclusively crafted products but also uncompromising commitment towards quality, designs and price for which customers can blindfolded rely on us" .

The Market: (Facts about the Indian jewelry industry)

Jewelry since time immemorial has remained ''neighbor's envy and owner's pride''. The ornaments have remained exotic, unequalled and invaluable articles of personal glory. And with jewelry becoming symbol of status, fashion and taste, men and women today are steadily moving away from



conventional styles of adornment and ornamentation and are gradually adopting modern patterns better suited to their busy life styles.

The gems and jewelry industry occupies an important position in the Indian economy. According to the report issued by India Law Offices, it is a leading foreign exchange earner, as well as one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewelry and diamonds. Gold jewelry forms around 80 per cent of the Indian jewelry market. Besides, India has the world's largest cutting and polishing diamond industry. It is well supported by government policies and the banking sector with around 50 banks providing nearly $3 billion of credit to the Indian diamond industry.

India was one of the first countries to start making fine jewelry from minerals and metals and even today, most of the jewelry made in India is hand-made. India was the first country to introduce diamonds to the world, the first to mine, cut and polish them as well as trade them. The cutting and polishing of diamonds and other precious stones is one of the oldest traditions in India. In the global diamond market today, Indian diamonds account for a 55 per cent share in value terms, 80 per cent share in carat (weight) terms.

India's Gems & Jewelry industry is highly unorganized and fragmented with 96 percent of the total players being family owned businesses. India's gold market is estimated to have more than 300,000 jewelers, mostly small, family-run businesses. The gold processing industry has around 15,000 players, with only 80 having revenues over USD 5 million.

According to the World Gold Council in the first quarter of 2011, demand for gold jewelry from India rose 12 percent year on year, accounting for 37 percent of the global total, and this demand is set to climb. The precious metal, which is widely regarded as a store of wealth by Indians, is traditionally gifted during weddings and religious occasions, particularly during the months of October and November. With the festive season — marked by Diwali, considered the financial New Year by many Indian businesses - around the corner, consumers rush to make their annual jewelry purchases, fearing prices will go up further.

Gold is so central to the Indian psyche, it's at the center of every occasion, every festival. Bridal demand (for jewelry) makes up 40-50 percent of the total demand.

The Problem & the Opportunity:

In today's socio-cultural life, people want to stand out differently and in terms of jewelry also everyone wants to own an exclusive piece and not something that is common. Women especially have this tendency of being conscious about this fact and that they do not like homogeneity as want to look elegant yet exclusive. Many a time consumers visiting jewelry showrooms have the option of picking up jewelry which is readily available and the designs may be quite common. But we at jewel passion provide customized solutions to customers where in they can design their own jewelry or we design exclusive jewelry for them so that their jewelry become an envy for others. We make sure that every piece made by our well trained craftsmen is unique and the customer can gracefully adorn them.

Nowadays people, mainly the working class, are so busy that they do not find time to visit any jewelry showroom and this busy life makes it difficult for them to fulfill their needs of buying jewelry. Besides the traffic and chaos on roads makes things more miserable. Taking care of these issues, jewel passion was started to facilitate door step service to enable customers buy anything and everything in gold, silver and diamond jewelry at their time and place of convenience, be it at their work place or a coffee shop or at a restaurant.

This is an era of high cost of living where the price for every commodity is escalating overnight and the same holds for gold and silver. There was a time when the gold and silver prices were so low that even a peasant could afford to buy something and today is a time when even the middle income group people are finding it difficult to cope up with the rising prices. The rising price of the metal affects the purchasing power of the customer and deprives them from buy anything in gold, silver and diamonds. To overcome this problem faced by the customers, jewel passion has introduced the 'Flexi-Payment Option'. Under this scheme, on reference from another customer, the customer can purchase any jewelry of any amount and after making a down payment, the remaining balance is



divided over a certain period where in the customer can pay every month and clear the debt. This scheme comes with 'No additional charges' tag in which no interest or any other costs are added. In a way this scheme is very useful for customers in which they can fulfill their needs of buying jewelry they like without disturbing their financial commitments.

The Product/Service & USP:

Jewel Passion aspires to offer high quality products designed to make the customers cherish it for life. Our products are exclusive and unique in design and craftsmanship unlike the products readily available at the jewelry showrooms. At Jewel Passion we do not sell but help customers buy jewelry. If the customer cannot find time to go out to buy jewelry, we go down to his/her place to fulfill their needs.

Jewel passion deals with Gold, Silver and Diamond jewelry along with a host of other services like jewelry repair, jewelry re-polishing, old jewelry exchange, etc right at the door step of the customer. The company had recently introduced many products like crystal lamps, silver photo frames, silver gift articles, British India coins, CZ 92.5 sterling silver jewelry, etc.

Business Operations/ Strategic Alliances:

Jewel Passion has tie-ups with various wholesalers, suppliers and dealers who are an important part of business operations. They have tie ups with the bullion dealers who supply pure gold and silver to us depending on their necessity. They have wholesalers who provide us various kinds of gold jewelry such as filigree jewelry, Kerala light weight jewelry, Bombay CZ jewelry, south Indian traditional jewelry, etc. We have suppliers who supply silver articles to cater to the needs of the customers during festive season, as silver articles like plates, glasses, bowls, pooja items etc are bought mainly during the festive season. They have allied with dealers of diamond jewelry to cater to the elite class, who provide us with the finest quality diamonds along with certification of quality. They are also connected with dealers of various precious and semi precious stones, including birth stones like Emerald, Blue Sapphire, Yellow Sapphire and Ruby to name a few.

Sales & Marketing strategy:

This kind of unique business model is purely based on 'Word of Mouth', viral marketing and customer's references. The marketing mix of the 4P's include -

■ Product: The customers are exposed to various types of jewelry products in gold, silver an diamonds. Gold jewelry includes traditional jewelry, antique jewelry, CZ stone jewelry, casting jewelry to name a few.

■ Price: Our ranges of products are offered at prices far lesser than what other jewelry showroom offer because of the absence of various overheads.

■ Place: Since this a mobile jewelry showroom, the business is carried on at the place and convenience of the customer, be it at work place, a coffee shop or a restaurant.

■ Promotion: A satisfied customer spreads the message of quality, design and service to other customers (friends and relatives) via 'word of mouth' and viral marketing. During the festive or peak season, e mails containing festive specific products are sent out to people from various backgrounds to help them know more about our company, products and service.

Team & their Experience:

The company has a team of well experienced craftsmen who have an uncompromising commitment towards the quality with an eye for design, style and market trends. The various craftsmen have a working knowledge of more than a decade in various types of gold and diamond jewelry and silver articles. Company to date:

Previous funding:



The initial investment was Rs. 80,000 and at later stages Rs.60,000 was borrowed from an Angel Investor and the entire loan amount has been returned in the course of the business. The jewelry industry is enormous in size and how much ever money invested in it is not adequate. Since Jewel Passion is a medium scale business, not much of investment was pooled in because of limited resources available. But the available resources are being exploited to the maximum to achieve best results and set our long term goals.

The Business- Plan of Jewel Passion

Product and service

> What does the product/service satisfy?

Their products satisfy the primary needs of the customers of gold, silver and diamond jewelry by providing skillfully crafted pieces which the customers can cherish it for life. The team of craftsmen has an eye for every detail of the jewelry designed and crafted by them. The service of door step provided exclusively by Jewel Passion aims at delighting the customer by helping the customers to buy jewelry at their time and place of convenience. With a host of other services like jewelry repair, jewelry re-polishing, etc, the secondary needs of customers is satisfied.

A customer can be satisfied because of three reasons -

■ Service - the door step service we provide at the time and place of convenience of the customer like workplace, office, college, restaurant, etc.

■ Designs - the custom made exquisite and eye-catching designs we offer

■ Quality and price - best quality according to the industry standards is maintained which is very important in the Gems & Jewelry industry and the price at which we offer our products is reasonably less compared to other jewelers as we do not have any overheads.

Jewel Passion is known for its product designs, quality, price and service but out of all the factors, service is the part in which a customer is satisfied the most. In terms of service we stand out because of its uniqueness of providing door step service anywhere at the time and place of convenience of the customer. We have had customers thanking us for this kind of service as they do not have the time to visit any jewelry showroom to fulfill their needs. Most of the customers are quite happy with the designs we have given them so far as well as the price because we do not have any overhead expenses like showroom rent, lighting, staff, etc.

> Are you the first in the market?

The kind or products and exclusive services provided by us right at the door step of the customers are not provided by any other jeweler in Bangalore as per my research. This fact makes us the pioneer in terms of the unique service we provide.

> How do your competitors satisfy or fail to satisfy the needs?

There are no direct competitors to Jewel Passion, but other jewelers are incompetent in providing the kind of 'Door Step Service' and 'Flexi-Payment Option' provided by us. The flexi-payment option was introduced keeping in mind the rising gold prices so that customers are not deprived of buying jewelry. Other jewelers have recently started an option of EMI'S where in the customer pays monthly installments and at the end of the term, with a bonus the customer can buy jewelry. But with Jewel Passion we have the opportunity of 'buy first and pay later' which is found nowhere in other jewelry showrooms.

> What is the barrier to entry for other competitors?

There is no such barrier entry for competitors as this kind of business model though first and unique, is highly replicable. But also there are fewer chances of other jewelers with the kind of mind-set would take the trouble to visit their customer's place to help customers buy jewelry and provide 'the buy first pay later' option.



> Will potential customers be convinced?

Jewel Passion started with just 3 satisfied customers but now after one and half year, there are 45 plus satisfied customers in the list of Jewel Passion's clientele. The customer base has increased only because of viral marketing and word of mouth by our satisfied customers. Our customers trust us in terms of quality, purity, designs and service and at the same time we trust our customers with regard to the payments. We believe in building long term relationship based on trust and ethics.

> What development do you expect from competitors & when?

As said earlier, we do not have any direct competitors and since Jewel Passion being a unique business model has taken care that our way of doing business is not exposed to the indirect competitors. Our aim is to help people buy gold, silver & diamond jewelry and not deprive themselves because of the rising prices. After a small survey, it has come to our knowledge that few leading jewelry showrooms in Bangalore have come out with a strategy in order to help customers buy jewelry. The scheme chalked out by them is, the customers will have a pay a monthly instalment of a certain amount for a certain period and the end of the term, the customers can avail a bonus and convert the entire monthly instalments paid by them into jewelry. But the model on which Jewel Passion works is 'buy first pay later', which is quiet diverse and attractive to customers.

> Intellectual property protection

Jewel Passion, being a medium scale business and still in the mid-stage of introduction & growth cannot have any intellectual property as such.

> The likely life- cycle of the product / service

Jewel Passion does not produce bulk products or homogeneous products, so they cannot have a product life cycle. Also since the products are high value products and considered to be assets there can no saturation or decline stage of such products in our kind of industry. But the designs and trend of our jewelry may go through a life cycle. First when a design is introduced in the market and it is liked by the customers, it goes through the growth stage via word of mouth and viral marketing. Once all the prospective buyers have satisfied themselves by buying the particular designer jewelry, then it might eventually die down giving rise to new designs depending on the current market trend.

Market Analysis

> How big is the Target market?

The major target market of Jewel Passion is the working class of Bangalore chiefly women. Jewel Passion targets those people who do not have the time to visit a jewelry showroom to fulfill their needs of buying gold, silver or diamond jewelry mainly working professionals, school and college lecturers. Since this is a jewelry industry, our primary target is women of the working class as men are not much interested in jewelry.

Jewel passion started out with catering to only one college in Bangalore, but now we cover up to many colleges, serving to the needs of the prospective buyers. The size of the working class in Bangalore is huge comprising of almost 55% of the total women population. So far we have been catering to the needs of the college lecturers but now we have expanded our operations to serve working professionals by helping them buy online through email marketing carried out by us and through our company website. We aim to target and increase our market share by adding another 500 customers to the list of 50 customers we have right now. They are also looking forward to venture into new markets and make house wives our prospective buyers by making them aware of our products and service.

> What is the market share of each existing competitor?

In this highly competitive and aggressive industry it is difficult to retain the loyalty of the customers and maintain a market share and since our business model is different from the normal business carried out by other jewelers, our market share does not conflict with the other jewelers.



> Are there opportunities to collaborate with competitors rather than compete head on?

In the first place the business does not have to face aggressive head on competition with our kind of business model but there have been opportunities where they have collaborated with other jewelers to satisfy the needs of our customers. Since the business is a small rather medium scale business it has limited resources available and because of this they have to approach other jewelers to maintain the smooth running of our business operations.

Marketing & Promotion

Making the product/service known:

The company being a start up requires the support of various marketing and promotional activities to create awareness of our various products and services. It cannot depend only on word of mouth and in order to expand our business operations and venture into new targets markets and to increase the customer base, they have to formulate marketing strategies and ways to promote the products.

Creating interest:

Jewelry since ages has been a women's fantasy and the only challenge in creating interest in the customer is the eye-catchy designs. The company needs to constantly keep track of the changing trends in the market and accordingly design and manufacture products that are at par with the latest fashion and trend in the industry.

Forms of promotion:

The various forms of promotion carried out by Jewel Passion are

Viral marketing - a satisfied customer spreads the message of designs, quality and service to friends, relatives and colleagues.

Kiosks at exhibitions - it is very important for us to set up stalls at highly crowded and visible places to promote our existing and newly introduced products. S E-marketing - this is a cost efficient method where a large number of people can be sent out emails especially during festive seasons where they can know about our products and approach us for price, delivery and other things.

Website - in today's techno-savvy era, a website is an important part of a business to display about the company, the products, the service and acts as a virtual representative of the company.

The Management Team

> Who are your key managers?

Jewel Passion is a recent start up with limited business operations and a small customer base so all the business operations are sole handedly handled by the owner Abhishek Roonwal as of now. Once the business starts expanding and enter new markets, one or two managers can be appointed to handle certain departments like purchase, order follow-up, delivery, payments, etc.

> How do you intend to retain, attract & compensate key people?

Jewel Passion is associated with many key people including suppliers, dealers and craftsmen. The most vital part of Jewel Passion are the craftsmen (Goldsmith) who design and craft a beautiful piece out of raw gold. The craftsmen have an uncompromising commitment towards the quality with an eye for design, style and market trends. The craftsmen who work have a working knowledge of more than a decade in crafting variety of gold and diamond jewelry and silver articles. In today's time it is not only a challenge to retain customers but we also face the challenge to retain good craftsmen. Everyone seeks for better opportunities and in this aggressively competitive industry there is a huge demand for good artistic goldsmiths. The best way to retain good talent is to pay the employees well that is best in the industry. More than the monetary fact it is important to treat the employees like a family. At jewel passion, the suggestions of the craftsmen regarding the designs and other variables



attached to a product are given importance as they are the people who actually have the hands on experience.

> What are their skills & how does it relate to the success of this venture?

They have the local craftsmen along with other craftsmen who are migrants from various backgrounds such as Calcutta, Gujarat, Bombay, Andhra Pradesh and Tamil Nadu. Every craftsman is dedicated to a particular kind of jewelry like antique filigree jewelry, south Indian A.D jewelry, Bombay CZ Signity jewelry, plain gold Calcutta jewelry, hollow Singapore jewelry, nakshi jewelry and temple jewelry. We have different set of craftsmen for diamond jewelry and silver articles. Every group of goldsmiths has a head and all of them work on a particular kind of jewelry. Certain designs in gold and silver which cannot be made in Bangalore because of non-availability of resources are sent to Chennai or Jaipur as we have links in these two cities.

The artistic hands of the craftsmen have a great deal of importance relating to the success of our business. Every customer wishes to own an exclusive and exquisite piece of jewelry which they can cherish for generations and the master mind and hard work behind it is the talent and skill of the craftsmen. Whenever a customer suggests a design to be made for her/him, the advice of the craftsmen is taken into consideration because they can picture as to how the design will look once it is completed.

Long- term personal objective of management

The primary objective is to retain best talent with them in the form of artistic craftsmen as well as have good business relations with all our connections and collaborators who supply us with raw materials; semi- finished products and finished products, for a long term for the smooth running of our business operations. Jewel Passion understands that the business depends on the smooth transactions with their associates which help them to cater to the needs of the customers and satisfy them. All these collaborators are channels through which a customer is delivered the product. Any sort of disturbance in this channel will cause hindrance in delivering a finished product to a customer.

> Where will you be 5-10 years from now?

The company aspires to establish itself as one of the leading, affordable and trusted jewelry brands in the minds of the consumers making jewelry an 'everyday affair'. "We shall progress even better in terms of custom made jewelry, innovative and exquisite designs, superior quality products and personalized service to fulfill the needs of every customer. We aim to have a strong customer base of over 1000 customers within 5 years and expanding its operations and service to other cities by setting up centers as well as seeking new avenues for growth" says Abhishek.

• Financial Projections

When Jewel Passion started in August 2010, the revenue for the first six months was just 3 lakhs and it saw a continuous growth, generating total revenue of 1.5 Crores till date.

Conclusion:

Entrepreneurs have an aptitude for spotting and seizing opportunities. If you read the first pattern carefully, you'll notice that this pattern has two elements in it. First is spotting the opportunity and second, seizing it. These are two entirely different things. The first is recognizing an opportunity and the second is acting on the opportunity .Entrepreneurs have a gift for noticing the extraordinary in the ordinary. They are able to find opportunities that are hidden in plain sight. To them, problems are opportunities just waiting to be unlocked. It's not so much about finding a solution that makes one an entrepreneur. Anyone can find a solution to any problem. What defines an entrepreneur is his or her ability to find unconventional solutions to ordinary problems. Being unconventional doesn't mean inventing some new technology rather It is about finding an innovative and creative way of doing things.

AUTHOR’S PROFILE:

Ms. Sumita Kumar is Assistant Professor, Department of BBM Mount Carmel College, Bangalore

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