nibm 4 sem ass

National Institute of Business Management

Ist Floor, Swathandrya Samara Smrithi Bhavan, Nandavanam Road

Palayam P.O. Trivandrum 695 033

E-mail: [email protected] 4014294, 4014298

Assignments of Two year MBA Program

Semester - IV1. Students are requested to go through the instructions carefully.

2. The Assignment is a part of the internal assessment.

3. Marks will be awarded for each Assignment, which will be added to the total marks. Assignments carry equal marks.

4. Assignments should submit in your 'portal' on/before the 'completion date' mentioned.

5. Case study project is based on the elective subject selected. Please submit your case study also in the portal on the 'completion date' of forth semester assignments.

Assignments

Total Marks :100

1. International Trade Management

Which are the basic information you should have if you are to be an effective International Trade Manager in an exporting firm?

Ans : FOLLOWING BASIC INFORMATION YOU SHOULD HAVE TO BE AN EFFECTIVE INTERNATIONAL TRADE MANAGER IN AN EXPORTING FIRM ::

1. Regulations

Exporters can be sole proprietors,partnershipsor companies. The regulations, permits orlicenceswhich affect exports apply to the goods or servicesexportednot to the individual or organisation exporting them. There are no restrictions on who or what type of business may export from INDIA but the goods or servicesexportedmust comply with existing export regulations.

In an export context the over-riding regulation is that all consignments leaving INDIA, must be declared to the Indian Customs Service to check any duty needs to be paid. The declaration to Customs can be made by exporters or by their appointed freight forwarder .

It is advisable to contact the Indian Customs Service or an international freight forwarder to ascertain if any export regulations apply to your specific product or service before proceeding further with your export plans.

Registration

Registration with Reserve Bank Of India: No longer required.

Registration with Regional Licensing: Authorities (obtaining IEC CodeNumber) The Customs Authorities will notallowyou to import or export goods into or from India unless you hold a valid IECnumber.

Register WithExport Promotion Council

In order to enable you to obtain benefits/concession under the export-import policy, you are required to register yourself with anappropriateexport promotion agency by obtaining registration-cum- membership certificate.

Registration With Sales Tax Authorities

Goods which are to be shipped out of the country for export are eligible for exemption from both Sales Tax and Central Sales Tax. For this purpose, you should get yourself registered with the Sales Tax Authority of your state after following the procedure prescribed under the Sales Tax Act applicable to your State.

Excise Procedure

All excisable goodsexportedout of India are exempt from payment of Central Excise Duties, for which two different procedures have been approved

Rebate of Duty on Goods Export Procedure

Under the first procedure, known as 'Rebate of duty on Goods Export. The manufacturer has first to pay the excise duty on goods meant for export and then claim refund of the same after exportation of such goods to countries except Nepal and Bhutan.

Export under Bond Procedure

Under the second procedure known as "Exports Under Bond" goods can beexportedout of India except to Nepal or Bhutan without prior payment of duty subject to the execution of the Bond with security / security for a sum equivalent to the duty chargeable on the goods to beexported.

2. Market Research

Extensive research is necessary in order to assess the potential market for a given product or service in a defined region. It may be conducted by employees of a business or by an external consultant appointed bythe business. The ultimate aim of the market research program should be to provide comprehensive, accurate information on which to base a successful export marketing strategy.

Export market research can be divided into two phases, desk research and overseas research.

Phase 1 Desk Research

This is the process of gathering information from sources within India. There are many such sources able to provide a wealth of information.

These include:

banks

bilateral, social and business organisations

chambers of commerce

consulates/embassies

Department ofForeign Affairs and Trade

export consultants

international freight forwarders

international business and telephone directories

the Internet

Universities or other tertiary institutions.

Phase 2 Overseas Research

This is the process of gathering information in the market itself. A first hand evaluation of the sales potential for the product or service in the overseas market is essential. This may involve discussions with potential buyers, agents, distributors, joint venture partners and government authorities, attendance at trade fairs and exhibitions, product testing in the market place, customer surveys, etc.

This phase of the research programme should only be commenced after every aspect of Phase 1 has been exhausted.

Ultimately the information gathered must result in the production of a practical export marketing strategy, which is capable of implementation by the company for which it was designed.

Preliminary Export Research Program

A typical research program should seek to ascertain:

preferred target market

economic overview of the target market

demographic overview of the target market

cultural and religious environment

basic import regulations

tariffs, taxes and quotas

transport infrastructure

distribution networks

potential customers within the target market

entrenched competition

pricing policy

preferred trading terms

packaging and presentation.

This list is by no means exhaustive but these are the prime factors you should be aware of before venturing into an export market.

3. Terminology

Every field of endeavour has its own vocabulary and export is no exception. It is important to know the terms used in international trade, not only in order to understand exactly the offer which is being made or accepted, but also in order to present a fully professional approach to your potential trading partners.

The most important part of the export vocabulary is the set of terms universally known as Incoterms.

Trading Terms (Incoterms)

The most commonly used rules for the interpretation of trading terms in international trade are those defined by the International Chamber of Commerce (ICC). They are internationally recognised and are known as Incoterms. Incoterms signify to the buyer what is, and more importantly what is not, included in the selling price. They also indicate where the exporter's responsibility ends and the importers responsibility begins in respect of the goodsexported.

Which term will apply to a particular export transaction is a matter for negotiation between buyer and seller. However, inclusion of theappropriateterm in export quotations is crucial in order to determine the responsibilities of both parties in the contract of sale.

4. Export Prices, Offers and Contracts

Export Prices

Calculation of export prices is usually based on the differential costing method. This method treats exports as additional business; incremental to the main core of domestic trading. Exports therefore bear a reduced contribution to the manufacturer's fixed costs.

Export prices may also be affected by duty drawback. Where an export product contains imported material or components on which duty has been paid, the amount of duty paid can be claimed back from Indian Customs Service when the product is ultimatelyexported. The export price will reflect this reduction in cost.

These are matters of accountancy and should be discussed in detail with your accountant.

Additional costs such as bank charges, cost of Forward Exchange Cover, etc., may also have to be taken into account before arriving at a firm export price.

A cautionary word: it is unwise to set an artificiallylow pricewhen trying to enter an export market because it is usually very difficult to raise this to a realistic level at a later date. It is preferable to enter the market at a realistic level with an undertaking to hold prices firm for a fixed period of time, say 90 or 120 days after the date of the quotation.

Ultimately export pricing will be determined having regard to two fundamental points; the price the exporter needs to cover all costs and make a reasonable margin of profit, and what price the market is prepared to pay. There is little point in sacrificing profit if the market is willing to pay a higher price.

Export Offers :

Tocorrectlyevaluate an export offer, an importer requires the following basic information :

Description of the Goods

A detailed description of the goods is necessary to avoid misunderstanding between exporter and importer and so that the importer cancorrectlyclassify the goods for Customs purposes.

Price

Exporters should always specify the currency in which the price is quoted.

Trading Term

The price should always be accompanied by the appropriate trading term indicating which elements of the transport and insurance costs are included in the quoted price.

Delivery Schedule

Delivery schedules should set out the quantity which can be made available for shipment within a specified period eg "3,000 units within 2/3 weeks of receipt of firm order and 2,000 every week thereafter". It is preferable that delivery schedules be slightly conservative; much better to deliver ahead of time than after the promised date.

Packing Specification

Sets out how the goods will be packed, the number of units per carton or pallet and the weight and dimensions of the packages. This will enable the importer to determine how the goods will be warehoused upon arrival and to ascertain the cost of transporting the consignment if this is not included this in the quoted price.

Payment terms

It is important to state your preferred payment terms for two reasons:

so that there will be no misunderstanding as to how the importer is to make payment; and

because some methods of payment will involve the importer in significant additional expense and this must be taken into account when costing imports.

The most commonly used payment terms are:

Prepayment - Absolutely secure from the exporter's point of view. Payment is received prior to dispatch of the goods.

Documentary Letter of Credit - Almost completely secure for the exporter. A Letter of Credit (more correctly called a Documentary Credit) is an arrangement whereby a bank, operating on the instructions of an importer, authorises another bank to pay a fixed sum to an exporter on production of specified documents. The rules governing the use of Letters of Credit are contained in Uniform Customs and Practice for Documentary Credits (ICC No. 400) available from most Banks.

Bills of Exchange/Cash Against Documents - From an exporters point of view not as secure as Prepayment or Letter of Credit.

Bills of Exchange are accompanied by shipping documents are usually referred to as documentary collections.

Open Account - No security of payment. Payment is made by the importer after the goods have been despatched by the exporter.

A number of excellent publications are available from the major banks, which give a detailed explanation of the various methods of payment used in international trade.

Validity

Indicates the period during which the export offer will remain unchanged.

Warranty

A certification as to quality.

Other

Provision of samples for testing etc.

Export Contacts come into being by a process of offer and acceptance. When an offer has been accepted by the buyer, the contract exists and is legally binding on both buyer and seller. It is difficult to withdraw or amend an incorrect offer after it has been accepted. Accurate pricing and careful preparation of the export offer is, therefore, essential given that this represents a formal offer of goods for sale.

5. Insurance

In an export context insurance can be said to fall into two types:

Insurance against loss or damage

Consignments with anything over minimal value should be insured against loss or damage during transit. Who has responsibility for effecting insurance is totally dependent upon the terms of the contract of sale negotiated between exporter and importer. In a FOB or CFR contract this responsibility lies with the importer, in a CIF contract with the exporter .

The extent of cover, whether it is from wharf to wharf or warehouse to warehouse, will vary from contract to contract.

It is customary in most types of international trade to insure goods for CIF value plus 10% in order to recover all costs associated with the shipment including the cost of the premium paid to the insurance company.

Insurance against default of buyer

If the payment terms negotiated with an overseas buyer are less than secure, it is possible to insure against the risk of non payment through private insurers.

The risks covered by this type of insurance include:

default by the buyer

buyers refusal to accept delivery

buyer insolvency

inability to deliver due to unforseen circumstances

war, hostilities or civil disturbances

government intervention.

Exporters should also be aware that if their product has the propensity to cause damage or personal injury, it is advisable to explore the possibility of taking out product liability insurance to cover this risk. This is particularly advisable when considering export to markets where litigation is common.

6. Freight

Freight is the name usually given to cargo which is to be transported from one designated point to another, but the term is also used to denote the cost of transport. In view of this, exporters should make absolutely clear what is meant by use of the term "Freight".

Freight Rates (air and sea) - While it is almost always true that kilo for kilo sea freight will be less expensive than airfreight, it is also true that the minimum freight payable for dispatch by sea is usually much higher than the minimum payable for dispatch by air. This means that it is often less expensive to dispatch small consignments by air than by sea.

Conference Rates - Ship owners operating vessels on a particular run - say India to West Coast USA - form a cartel to fix freight rates and sailing schedules. This cartel is called a Shipping Conference and is one of the few forms of price fixing cartel, which is deemed to be legal . This is because it ensures stability of freight rates which enables exporters to prepare export quotations in the knowledge that the freight rate will not change without adequate warning. It also rationalises sailing schedules thus ensuring that sailings to a particular destination will be at regular intervals. It follows that all shipping lines that are members of the Conference will offer identical freight rates for the carriage of cargo.

It should be noted that the conference system does not operate in respect of airlines so rates for airfreight can differ. It is advisable to obtain several quotes for airfreight consignments in order to take advantage of the best available rate.

Weight Measurement Ratio - The total amount of freight payable for the transport of cargo is usually calculated by applying the quoted freight rate to the weight or measurement of the cargo, whichever offers the greater return to the shipping company or airline.

Hazardous cargo - Freight rates will always vary depending upon the type of cargo to be carried. If the cargo is deemed to be of a hazardous nature, eg. volatile, noxious, injurious to health, likely to contaminate other cargo, etc., then special rates will apply and the carrier may require special packing to prevent damage. Check with your freight forwarder as to the standards or regulatory requirements which may affect the transport of your cargo.

Because of the above it is recommended that exporters seek the services of a reputable international freight forwarder when considering selling into overseas markets.

International Freight Forwarders

The services usually offered by international freight forwarders are:

Booking space

Forwarders will make the necessary bookings with shipping companies or airlines to ensure that the cargo is transported in the correct manner with the minimum amount of delay.

Freight savings

Most forwarders make regular "block bookings" of space on ships and aircraft. They are thus able to consolidate the cargo from a number of individual exporters and, in some circumstances, pass on the savings achieved to their clients in the form of reduced freight rates.

Costing

They are able to assist exporters in calculating the cost involved in exporting goods to a particular destination. They can also advise on the most economical means of transport, ie. air versus sea or a combination of both. They can also advise if savings can be achieved by deferring dispatch, for example, until the next consolidated consignment leaves.

Cargo monitoring

Forwarders are able to monitor the movement and location of particular cargo from the time it leaves the exporters premises to the time it arrives at the importer's premises.

Documentation

It is essential that export documents be absolutely free of error if international transactions are to be trouble free. Forwarders are able to produce documents which comply with exporter's instructions, letters of credit and the regulatory requirements in the importers country. Where speed is essential in the transmission of documents, forwarders are able to fax or email copies to importers or their agents thus ensuring faster customs clearance and delivery. This in turn reduces the risk of incurring storage charges at the port of destination.

Storage

Most forwarders have the facility to store outgoing and incoming cargo and this facility usually extends to Bond Storage. They are also able to arrange inspection by the Indian Customs Service or other agencies if this cannot be conveniently accomplished at the exporters premises.

Market information

Because of their strong overseas connections, forwarders are often able to provide their clients with information about market conditions, export and import requirements, duty rates, etc. The amount of duty paid in the importer's country will depend upon how the product is classified in terms of the customs tariff. Your freight forwarder can advise on ways to achieve the best tariff classification in order to legitimately minimise customs duty.

When using the services of a Forwarder your instructions should be clear and concise. Most forwarders have their own forms on which to provide instruction.

When seeking information from Forwarders about freight rates, it is essential to provide accurate and adequate details with regard to the nature of the cargo, its destination and packing specification.

It is also important that you obtain from the Forwarder written confirmation of the rates quoted and the range of services offered in order to avoid confusion and misunderstanding in the future.

7. Export Marketing

There are many ways in which a product or service can be marketed to buyers overseas. These fall into two main categories, direct and indirect marketing.

The main distinction between direct and indirect export marketing lies in the contractual relationship between the parties concerned. By direct exports we mean those transactions where the manufacturer or exporter has a direct contractual relationship with the importer overseas. Indirect exports are those arranged by contractual relationship with an intermediary, usually in the country of export. An important test in determining if the transaction is direct or indirect is whether the exporter will be paid from a local (indirect export) or an overseas (direct export) source.

In the main export marketing options are:

Direct export to an importer

Where the exporter identifies a buyer overseas and negotiates a contract for the sale of goods or services.

Direct export using a commission agent

Similar to the above but using a commission agent in the overseas market to solicit orders and provide after sales service. This can either be a one step or multiple step distribution process.

Indirect export through local merchants

Sales are negotiated with a trader in the manufacturer's country, with payment being made in local currency from the traders office. For example a great deal of trade between India and Japan is done through the Indian offices of Japanese companies. There are many such trading companies ranging from the very large Japanese trading houses to small single operators. Most traders will specialise in a specific product type and/or geographic area.

Manufacture under licence

The Indian company sells technical know-how to an established manufacturer overseas who is licensed to produce the product or service in that country.

Joint Venture

The Indian company enters into an arrangement with a company overseas to set up a third business entity, the joint venture company, which will be responsible for production and/or distribution of the product or service in the overseas market place.

Wholly owned company in the export market

The Indian company establishes a branch or subsidiary in the overseas territory.

8. Exclusive Agreements

It is customary for agents, distributors to require some form of exclusive right in the product or the territory in which the product is to be sold. The agreements which convey these exclusive rights should be negotiated with great care because once made they can be difficult to revoke and it is vital that you appoint the best possible people to represent your product in the market place. . Such agreements will vary considerably depending upon the market, the nature of the product and many other factors.

Clauses which are common to all such agreements are:

Nature of agreement

Is the agreement an exclusive distributorship, licence arrangement or agency agreement?

Territory

This clause defines the territory covered by the agreement.

Period

This clause defines the period over which the agreement will run and also any review options; for example - agreement to run for 5 years with a review after 1 year.

Remuneration

In an agency agreement this clause defines how commission will be calculated and how and when it will be paid.

Exceptions

In an exclusive distributorship or agency agreement this clause details any exceptional circumstances when the exporter may deal directly with importers in the market.

Warranties and repairs

This clause details the warranties, which the supplier offers to the distributor and which the distributor may in turn offer to the end user. It also details the after sales service available in the market place.

Promotional expenditure

This clause defines who will pay for advertising and sales promotional material including samples. It should also define the limit of expenditure, which can be incurred by the agent without authorisation from the principal.

Dispute resolution

This clause determines which legal or arbitration system will apply in the case of a dispute that cannot be resolved by the parties to the agreement themselves.

Performance level

Defines the minimum level of sales to be achieved in a given period. If this level is not achieved the agreement may be reviewed.

Rights

Defines the parties rights to use brand names, trade marks etc.

Having determined the type of agreement required and the principal points to be covered, it is essential that you consult a legal firm with experience in the area of international agreements. They will ensure that the final agreement reflects the wishes of both parties thus avoiding potentially disruptive and costly disputes.

9. Export Finance

The amount of finance required to enter overseas markets will vary from business to business and depend largely upon the export strategy which individual companies adopt. However, it is true that in all circumstances, export will require additional financial resources.

In an export context additional financial resources may be required for the following:

Pre-shipment Finance

Finance required for the purchase of product, raw materials or components prior to manufacture and export of the goods.

Post-shipment Finance

Finance required to continue operations in the period between dispatch of the goods and receipt of payment.

Working Capital

To facilitate the day to day operation of the firm, ie. overheads, wages, maintenance of plant and equipment etc. In an export context this may also involve documentation charges, entertainment for overseas visitors, market research, overseas visits, translations etc.

Applying for Finance

Banks and other lending institutions will usually provide their own forms on which to apply for finance. Naturally these will vary from bank to bank. However, most loan applications will require the following details:

the amount of money required

the purpose for which it is required

preferred repayment terms

security offered

cash flow projections

details of existing debt

financial details of the business

trading history

stock valuation

experience/qualifications of the proprietors

management structure

short term objectives

long term objectives

market research findings

other relevant considerations, such as contracts, intellectual property, etc.

lending institutions will probably also require a copy of your export strategy

10. Documentation

Export documents form a very important aspect of international trade. It is usually true to say that without the correct documents the exporter may not be paid and the importer may not be able to take possession of the consignment. An understanding of the most commonly used documents in international trade is essential for successful export operation.

The most important export documents are:

Letter of Credit

A Letter of Credit (more properly called a documentary credit) is an advice issued by the importers bank authorising payment of a specified sum of money by a correspondent bank to a named beneficiary upon delivery by the beneficiary of specified documents. The internationally accepted rules for the use of Letters of Credit are contained in "Uniform Customs and Practice for Documentary Credits (commonly called UCP). Most Banks provide a booklet which contains these rules.

Bill of Lading

This is probably the most important document in international trade. It performs two completely separate functions. It defines the contract between the exporter and the ship owners to carry the goods from one named port to another. It is also the document of title to the goods and as such is fully negotiable. Legitimate transfer of the Bill of Lading effectively transfers ownership of the goods from one party to another.

Air Waybill

In the case of dispatch by air performs roughly the same function as a Bill of Lading with one notable exception. An Air waybill is not fully negotiable, so passage of the cargo to an importer is not dependent upon production of the original Air waybill. Cargo will be delivered to the importer immediately it arrives at the airport in the importers country.

Certificate of Origin

May be required for some destinations.

Bill of Exchange

In effect a Bill of Exchange is a demand for payment which the exporter prepares and presents to the importer. The importer will pay at sight or, if it is a term Bill, on the date it matures.

Certificates of Insurance

In a CIF contract, insurance is effected by the seller who will usually be required to provide to the importer a certificate to this effect.

THESE ARE THE BASIC INFORMATION , YOU SHOULD HAVE TO BE AN EFFECTIVE INTERNATIONAL TRADE MANAGER IN AN EXPORTING FIRM.

---------------------------------------------------------------------------------------------------------------------2. Banking Management

Imagine yourself as the manager of a Bank where automation is to be made. Explain the steps you will take to do it.

Ans : IMAGINE YOURSELF AS THE MANAGER OF A BANK WHERE AUTOMATION IS TO BE MADE . EXPLAIN THE STEPS YOU WILL TAKE TO DO IT.Following steps I will take as a Bank Manager to do Automation in my Bank :

Today, money has evolved beyond physical form, and can be measured by

electronic pulses.

This electronic representation of money has made it easier to progressively increase the use of information technology forbanking operations.

Introduction of automation will liberate my bank from a lot of paper-work.

* The first step would be to invite presentations from various technology Companies which specialises in Bank Automation to become our technology partner/ partners for setting up Automation in my Bank .

* The Second step would be to choose from these Companies thebest technologypartner/partners , who would provide cost effective and efficient Automation System to my Bank .

Following are all the cases of transactions that involve businesses and consumers who are either initiators or recipients, are done:

B2B transactions are large-value, and recurring transactions, while B2C are low-value, large-volume transactions. C2C transactions are low-value and low-volume. Worldwide, B2C transactions have come to the forefront due to high awareness levels and, as in any other new development, prudence has prevailed to test the waters with low-value transactions. However, the big one is B2B, which is waiting to explode. As a Bank Manager ,I need to capture all three streams.

I will have to create the field to achieve this, and achieve some first-level requirements such as:

High levels of automation

Centralised database management and processing

Onlineconnectivity across delivery channels

Front-office and back-office integration

Surveillance and security Systems

Back-up systems

Following would be the steps taken for creating Automation in Bank :

Automation

Choosing a technology partner is very critical to achieve the efficiencies derived out of automation such as low-processing costs, better turnaround times, ability to handle excessive volumes, zero-error rates, better customer deliveries and so on.

Any bank embarking on such automation projects should ask the following

questions and try to get answers for better clarity :

Is automation for :

Reducing back-office load?

Improving staff working conditions?

Improving customer service?

Enhancing business levels?

Higher levels of automation decrease the load on the back-office in accounting, reconciliation and so on, and there by set free resources for enhancing business levels. While the evaluation has to be clearly all of the above, each bank will need to look inward at its priorities and accordingly select the right system being open-ended, Web-enabled and scalable with the right functionality is crucial.

As a Bank Manager my answers to all the above questions would be Yes ( positive) for all . Hence Accordingly , I would choose my Automation system which would provide all of the above 4 benefits to my Bank.

Centralised database management and processing

The Internet clearly throws historical debates oncentralisationvs de-centrali

sation out of the window. We are now talking of the flow of information and

transactions through the clouds where a de-centralised environment is not conducive and hence there is a basic need to take the centralised route.This requires business process re-engineering (BPR) and creation of centralized back-offices with re-defined process-flows to/from branches. The basic organisational structure needs to undergo radical changes with more emphasis on empowerment at branches with centralised control.

Keeping above things in my mind , we would set up centralised processing, through a hub-and-spoke concept, with regional processing centres at the main metros, and a national processing centre at one of our center.

Onlineconnectivity

There is a need to connect customers, front-offices, back-offices and other

external agencies and determineaccess levelson a need-based system (real-time, batch, dial-up and so on). This requires a huge infrastructure to run alongside, and hence has to be carefully thought through. With an increasing number of delivery channels such as branches, ATMs, phones, the Internet and so on, the estimations on volumes transacted through each of these channels play a vital part in the determination of bandwidth to ensure acceptable response times.

Through a combination of terrestrial lines, VSAT and ISDN, we will achieve totalonlineconnectivity at our Bank, where all branches and other channels we use access the centralised database.

Front- and back-office integration

Workflow requires to be defined clearly with the over-riding objective of cus-

tomer service, which should remain at the forefront. Processes have to be transparent, and one has to set up customer service standards, and service level agreements (SLAs) between various internal groups with strong audit systems for service quality.

Surveillance and security

All of the above will fall flat withoutonlinesurveillance and security. Access-

control, authentication and encryption mechanisms will be built around each of the systems. Technology , including firewalls , private and public key

certifications and data encryption are available, and a judiciously blended selection will be put in place, up-front. It is not just enough to have the security set-up. Monitoring mechanisms to tackle the hacker menace and on-going surveillance is a must.

Back-up systems

At this stage, when all of the above are running, the bank becomes dependent on technology. What this means is that it cannot do away with these systems and it requires a near-100 per cent up-time for staying in business. Hence, the need to have adequate back-up systems and telecommunications, contingency procedures during times of system un-availability, disaster recovery sites and so on which we will put in place.

I will take all the above steps as a Bank Manager with the help of my banks technology partner(s) for setting up above Automation system for my Bank .

Apart from the above Automation System , I would choose otherAutomation systemsavailable for better and efficient productivity .

Let us see another problem faced by my bank and how i will solve it usingAutomation systems:

Business Challenge:

My bank like many of other organization today face significant challenges on providing continuousavailabilityof its services for the customers. In order to compete and provide differentiation from the competitors my bank need to provide a fully automated fail-over mechanism that eliminates outages as this represented a huge loss in both revenue and customer trust. Service

interruptions examples such as if ATMs were not available, customers cannot withdraw money from their bank account or if a CPU was down, the affiliates are technically out of work. Without the automated fail-over my bank would continue to serve clients but there would be inherit risks by doing so without having aviewof the customers financial situation.

Solution :

I as a Bank Manager would choose Automation system like Unicenter CA-OPS/MVS Event Management and Automation(CA-OPS/MVS) to provide the automation for fail-over processing.

CA-OPS/MVS integration with Unicenter Automation Point and Unicenter CA-Sysview will enable my bank to achieve continuousavailabilitywith a high available processing environment.

Benefit :

My Bank with this high available environment will be able to provide its customers with best inclassserviceability. This environment will also remove processing risks that were created in past due to service interruptions like CPU failures.

TangibleBusiness Value( with example ) :

My Bank for an example will use only 0.6% of its CPU resource with Automation system like CA-OPS/MVS after its implementation instead of 5% which is our resource consumption .

In particular with the CA-OPS/MVS Printerautomation solutionafter its implementation in my bank , we will be able to optimise manpower.

Now without Automation system , we need to work with 4 very expensive printers and 3 groups of 9 people working manually 24h/24h on printing the generated outputs and reports, sorting documents, activating new jobs, etc. The whole process is very slow with printers being IDLE for long times. Each time a new job is started, the printers needed a warm-up of 30 seconds per document, Therefore the over 12.000 documents per day represent a huge non-productive time.

But with implementation of this Automation solution , we will be able to work with 2 printers and 2 groups of 4 people working from 6 to 19h in two shifts. We will be able to manage to print 400 pages continuously per minute; jobs will be launched in batches without interruption and manual intervention. Documents will be sorted automatically per destination and printer delays due to warm up will be dramatically reduced to the strict minimum.

Hence , a bank Manager who is looking for Bank Automation should choose the right Automation Solution available with various service providers only after carefully checking and testing the Automation systems to get optimum Results.

Similarly , as a Bank Manager I will also avail Automation systems from various Automation service providers for :

1) Mortgage payment processing which would give my bank speed, consistency and accuracy in processing payments, and reduce overhead costs. This wiil add up to customer benefit , associate benefit and share holder benefit .

Examples of some automated systems for Banks from a Service provider :

a) MaxMilion Payments application for Mortgage payment processing

b) Director, MSP, Passport, for core retail banking systems.

c) Enterprise Lending solutions such as Advanced Lending Solutions(ALS) Servicing Manager for processing retail lending accounts.

All of these are provided by Fidelity Solutions a Automation Service provider which a Bank Manager like me can approach to get the Automation done.

2) Automation of Accounting, Loan, Finance, Exchange management, Treasury, Bond, Budget, Risk Management will be done by me for my bank by using Automation system from any service provider that is better than my Competitors and best for my bank for better efficiency and productivitiy.

Hence , I will take all the above steps as a Manager of a Bank to do Automation in my Bank.

------------------------------------------------------------------------------------------------------------------3. Information TechnologyHow will you create an impact of Information Technology in your organization and do international business?Ans Information technology (IT) is dramatically changing the business landscape. Although organization cultures and business strategiesshapethe use of IT in organizations, more often the influence is stronger the other way round. IT significantly affects strategic options and creates opportunities and issues that managers need to address in many aspects of their business. This page outlines some of the key impacts of technology and the implications for management on:

Business strategy - collapsing time and distance, enablingelectronic commerce Organization Culture - encouraging the free flow of information

Organization Structures - makingnetworkingandvirtual corporationsa reality

Management Processes - providing support for complex decision making processes

Work - dramatically changing the nature of professional, and now managerial work

The workplace - allowing work from home and on the move, as inteleworkThere is also the outline of anexecutive presentation, that has been used to increase awareness of these issues.

The Impacts

Business StrategyIT creates new opportunities for innovation in products and services. Services which used to be delivered in person can now be delivered over networks. Among the keyleversare:

resequencing:including parallel processing of data-bases

simultaneity:making information instantly available in several systems (e.g via OLE)

time extension:offering 24 hour a day; 365 days a year service

portability:taking service and products closer to the user

reusability:using information captured for one purpose (e.g. transactions), and using for others (e.g. customer targeting)

Organization CultureNewer types of IT such as electronic mail andgroupwareare creating significant changes in the way that information flows around group ware, and between them and their customers and suppliers. It can hasten the development of more open and innovative cultures. However, as experts like Davenport warns, and surveys from companies like Reuters confirm, the notion that "information is power" still reigns large in many orggroup warelso, our experience shows that many new systems fail to become accepted by their users, because the systems developers have not beenculturally sensitiveto the department or group ware, in which the new systems are to be used.

Organization StructuresFor many years it has been argued that IT will enable larger spans of control and the flattening of group ware. This has at last happened, but due as much to initiatives like BPR (business process reengineering) and the drive to cut costs. Research on whether IT encourages cencentralization decdecentralizations produced ambivalent results. Many companies have cencentralizedckroom operations (for efficiency) while at the same time decdecentralizingher activities. It now seems clear thatIT enables a greater variety of structures. In particular it enables more flexible and fluid structures -networked structures, dispersed team and teams that come and go as needs change (as in thevirtual corporation).

Management ProcessesIT is rapidly entering the era where it supports unstructured management processes as well as highly routinized business processes. It provides more effective ways of accessing information from multiple sources, including use of external information on databases and the Internet. However, group decision support systems that operate in a meeting room environment can help enhance decision making, but it does need someone who is an expert facilitator to help the group master the technique ofstructured discussion.

WorkIT is dramatically changing the nature of professional work. There are few offices where professional do not make use of personal computers, and in many jobs involving extensive information and knowledge based work, the use of the computer is often a core activity. Becoming effective not only requires traditional skills of organizing, thinking, writing etc., but knowing how best to use the power of IT for researching sources, accessing information, connecting to experts, communicating ideas and results, and packagingthe knowledge (asset)for reuse. One aspect of this is the need for hybrid managers- people who are competent at both their discipline and IT.

The WorkplaceThe way in which IT diminishes the effect of distance means that it creates a variety of options for reorganizing the workplace. At a basic level, it can provide more flexibility in the office, allowing desk sharing and a degree of location independence within a building (this will develop as CTI (Computer Telephony Integration) and wireless PCs become more firmly established. At another level it permits the dispersion of work teams, thus saving costs of relocation and travel. It has also created the mobile professional and also allows people to work effectively from home. SeeInsight No. 4 - Teleworkfor more discussion of these aspects.

Implications for Management

These IT impacts have implications for managers of all organizational functions, and not just MIS managers. Among the most important are:

Understanding the Changing Context of IT- as well as the direct impact on their business managers need to be able to see these developments in the context of the wider environment in which their business operates.

Keeping abreast of Developments- not about the details of the technologies, but about the business impacts; for example by meeting suppliers business consultant's, attending conferences, or receivingcustomized presentationsfrom independent analysts.

Integrating IT and Business Planning- the IT strategy should support the business strategy and vice versa. This may need new planning processes, hybrid teams, and a increased incorporation of theleversinto business plans.

Addressing Culture Issues- the dimensions of existing and desired culture need to be understood and how proposed systems will affect them. In particular attention needs to be paid to the organization'sinformation culture Experimenting with new Structures- using IT to remove some of the limitations of hierarchy and to encourage the development of innovative teams, using experts located in different functions and places. Managing dispersed teams is challenging but rewarding.

Ensuring that new systems arecustomized change proof- our studies have shown many new systems to be developed around existing customized structures and responsibilities. Since these change very rapidly, new systems should be built with orgacustomizedxibility and change in mind.

Developing New Skills- more of tomorrow's managers will need to becomehybrid managers, combining the knowledge and skills of general management, their own discipline and IT.

Using IT as a management tool- initiating personal use of IT into every day work. This should include use ofdecision support tools,groupware, knowledgeandexploiting the Internet.

Exploiting Information as a Strategic Asset- using the techniques ofInformation Resources Managementto develop it as a valuable resource for internal use, for adding value to customer activities or services, or for creating saleable products.

IntroducingKnowledge Managementand Innovation- going beyond information to developingnetworks of knowledge expertswho evolve the organization'sknowledge assetsto create extra capabilities and value.

Reorganizing the Workplace- by introducing flexible working andtelework. The business benefits of this in terms of productivity and cost savings are such that there are many personal benefits to be achieved by a successful implementation.

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4. Perspective Management

Which are the aspects you will keep in mind about the perspective of management to be an effective Strategic Manager in an industry?

Ans: FOLLOWING ARE THE VITAL ASPECTS WHICH I WILL KEEP IN MIND ABOUT THE PERSPECTIVE OF MANAGEMENT TO BE AN EFFECTIVE STRATEGIC MANAGER IN AN INDUSTRY

1 . Planning:

Managers are responsible for the efficient Use of organizational resources including People, plant , equipment and supplies .The effective use of such resources Requires managers to devise communicate implement and monitor Plans to achieve organizational aims and objectives.

Following should be kept in mind :

A.Developing plans

Prioritising and organizing work activities in line with organizational aims and objectives.

B.Monitoringperformance

Monitoringand reviewing performance against organizational aims and objectives.

C.Focusing on results

Maintaining a focus on achieving organizational aims and objectives

D.Managing change

Planning for and implementing change to achieve organizational aims and objectives

E.Managing improvement

Taking action to improve performance by acting on the lessons from past successes and failures

2. Communication :

The principles and processes of effective communication underpin the role of the manager. Managers need to be able to communicate effectively with a range of people, including team members, colleagues, line managers, customers and suppliers. It is important that managers are able to organise, present and communicate their views, ideas and plans according to the needs of the people with whom they interact.


A.Explaining clearly

Presenting ideas, plans and problems in ways that promote understanding .

B.Influencing others

Presenting views and opinions clearly and positively to others, resulting in agreement and consensus .

C.Resolving conflict

Understanding the problems and concerns of others and working towards an appropriate resolution.

D.Listening

Seeking and listening to the views and opinions of others.

3. Team-working :

Managers achieve organisational aims and objectives through the work of other people and in particular teams. Setting up and managing effective teams requires managers to inspire and motivate team members, ensuring that everyone understands whatthe teamis trying to achieve.


A.Building teams

Involving team members in planning and organising their work to meet team objectives

B.Leading teams

Providing teams with a clear understanding of their purpose and objectives

C.Encouraging team-working

Minimising conflict and problems to enablethe teamto perform

D.Representing teams

Presenting a positive image ofthe team.

4. Leadership :

Managers are leaders of people and need to inspire commitment and enthusiasm in others in order to achieve organisational aims and objectives. To be effective, managers need to build strong working relationships which means providing clear guidance and direction, acting as a role model and respecting the views and opinions of others.


A. Leadingby example

Acting as a role model for others

B. Providing guidance

Providing support and advice to others in order to enable theachievementof organisational aims and objectives

C. Motivating others

Enthusing, and gaining the commitment of others to decisions and plans.

D. Building trust and respect

Maintainingconfidencesand honouring commitments and promises made to others.

E. Leadership style

Usingdifferent leadership stylesaccording to the needs of people and situations.

F. Communication

Ensuring people are aware of and fully understand plans and decisions .

G. Resolving conflict

Understanding the problems and concerns of others and working towards an appropriate resolution.

5.Personal effectiveness:

Personal effectiveness enables to achieve results and meeting personal and organisational objectives. Managers are literally faced with hundreds of decisions to make every day: choices about how to prioritise activities, how to allocate their time and how to communicate and present their plans and opinions to others. An important part of improving personal effectiveness is recognising and addressing personal development needs.


A. Acting assertively

Presenting views and opinions clearly and taking responsibility for initiating action

B. Managing time

Maximising the use of time to achieve aims and objectives

C. Developing self

Improving personal performance and skills by recognizing weaknesses and areas for improvement

D. Decision-making

Obtaining and analysing accurate information in order to make effective decisions.

6. Managing people:

Managing and developing people is perhaps the hardest part of management. Managers must be able to agree clear, measurable objectives, manage the performance of both individuals and teams and provideregularandconstructivefeedback on their performance. Managers must provide timely and appropriate support for people, ensuring that they possess the right knowledge and skills to achieve their objectives.


A. Setting objectives

Negotiating individual and team objectives which are challenging and achievable

B. Managing performance

Reviewing individual and team performance to ensure that objectives are achieved

C. Developing others

Helping others to improve their knowledge and skills in order to achieve their objectives

D. Providing feedback

Giving individuals and teamsconstructivefeedback designed to improve performance.

7. Managing Change:

Managers are increasingly required to not only manage, but to initiate organisational change. Managers need to be able to gain peoples commitment to change, plan and implement change and to monitor the impact of change in relation to the organisations aims and objectives.


A. Leading change

Identifying the need for change to achieve organizational aims and objectives

B. Planning change

Preparing plans to implement change programmes

C. Implementing change

Putting into practice a strategy and plans to achieve change

D. Monitoringchange

Reviewing progress against change plans

8. Managing projects:

All managers manage projects whether they are large or small, short-term or long-term. Project management involves developing and agreeing aproject planandmonitoring and controlling the implementation of and changes to theproject planto achieve the projects Outcomes.


A .Project planning

Determining the scope of the project and its outcomes and the required resources and critical time lines

B. Project implementation

Managing the resources to achieve the projects outcomes on time and on budget

C. Managing project progress

Monitoringproject progress and adjusting theproject planas required to achieve project outcomes .

D. Managing project closure

Confirming satisfactory project completion and identifying the lessons that can be learned for the future

9. Service Performance:

Managers need to deliver service levels as set out in their organisations plans and strategy. Effective planning andperformance managementcombined with a strategy of continuous improvement enables managers and organisations to consistently satisfy and exceed the needs of customers both external and internal.


A. Developing plans

Prioritizing and organizing work activities in line with organizational aims and objectives

B. Monitoringperformance

Monitoringand reviewing performance against organizational aims and objectives

C. Managing performance

Reviewing individual and team performance to ensure that objectives are achieved

D. Managing improvement

Taking action to improve performance by acting on the lessons from past successes

10.Developing people:

Managers deliver organizational aims and objectives through theachievementsof the people they manage. To be effective, people need to have clear objectives anda sense of directionand the knowledge, skills and confidence to perform. The role of the manager in developing people is more important now than at any time in the past; managers need to be developers of people.


A. Setting objectives

Negotiating individual and team objectives which are challenging and achievable

B. Managing learning

Creating a supportive learning environment where people can develop new skills and confidence

C. Performance coaching

Building confidence levels, knowledge and skills through one-to-one coaching

D. Providing feedback

Giving individuals and teams constructive feedback designed to improve performance

11.Customer Focus:

Managers need to be customer focused in order to deliver the level of service and performance that is required of their organization and team. Customer service requires an understanding of the needs of both internal and external customers, taking action to meet customer needs and implementing strategies to improve customer service levels.


A. Understanding customer needs

Identifying the needs of both internal and external customers .

B. Meeting customer needs

Addressing customers needs by taking action.

C. Resolving customer issues

Taking responsibility for investigating and resolving customer issues

D. Improving customer service

Identifying and implementing strategies to improve customer service

ABOVE GIVEN ASPECTS I WILL KEEP IN MIND ABOUT THE PERSPECTIVE OF MANAGEMENT TO BE AN EFFECTIVE STRATEGIC MANAGER IN AN INDUSTRY

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