CONTINUOUS EVALUATION COMPONENT (LAB) (SM) (SFM) (NEIM) (SAPM) (MFS)

1. CONTINUOUS EVALUATION COMPONENT (CEC)
Shree H. N. Shukla College Of Management Studies
Enrollment No. Name
157590592109 CHOTALIYA DHARMESH
157590592071 AKSHAY D. RAJVIR
ASST. PROF. HIREN MEHTA (LAB)
ASST. PROF. PARAS PARMAR (SM)
ASST. PROF.VAISHALI NINDRODA (SFM)
ASST. PROF. HETAL RUPARELIYA (NEIM)
ASST. PROF. HETAL RUPARELIYA (SAPM)
ASST. PROF. AYUBKHAN (MFS)

3. E-I-C ANALYSIS
 In security selection process, a traditional
approach of Economic Industry Company
analysis is employed. EIC is the abbreviation of
economic, industry and company. The person
conducting EIC analysis examines the conditions
in the entire economy and then ascertains the
most attractive industries in the light of the
economic conditions. At last the most attractive
companies within the attractive industries are
pointed out by the analyst.

4. Levels of E-I-C Analysis
The
Organization
Competitors
Markets
Industry
Economy

5. Analysis of Economy
ANALYSIS
OF
MACRO‐
ENVIRONMENT
ECONOMIC
SOCIAL
TECHNOLO
GICAL
POLITICAL

6. Analysis of Telecommunication Industry
 SUPPLIERS
 Network Infrastructure provider
 Information technology support
 Passive infrastructure providers
 Telecom equipment manufacturers-including handset
manufacturers
 BUYERS
 Face Competition
 Consumer Demand
 Switching Cost
 Maturing Urban Market
 RIVALRY
 Idea
 Telefonica
 T- Mobile
 Airtel
 Orange

7. SUBSTITUTES
 Fixed Mobile Line ConversionConsumer Demand
 Internet Calling Services,VOIP ( Skype, Messengers)
 Email
 Satellite Phones
 Unlicensed frequency options (ex:Wi-Fi, UWB,WalkieTalkie)
NEW ENTRANTS
 Brands
 Economies of Scale
 Spectrum Availability
 Service Licensing
 Technology
Retaliation
 Rivalry among
competing firms
 Price wars
 Fixed Cost
 Strategic stakes

8. ANALYSIS OF VODAFONE
 STRENGTH
 Brand Image
 Global Presence
 WEAKNESS
 Grew through the acquisition
 It’s increase the subscriber
 Centralized operational structure
 OPPORTUNITIES
 Different Strategies
 Simple phones and simplify pricing system
 Expanding boundaries in the market
 THREATS
 Existing high level of competition
 Substitute Products

10. Leverage
 Leverage means use of assets and sources of funds having
fixed costs in order to increase the potential returns to
shareholders.
 The term leverage means in general refers to the
relationship between two interrelated variables. In financial
matters one financial variable influence another variable.
 Those financial variables may be cost, sales revenue,
earnings before interest and tax (EBIT), output, earnings per
share etc.
 In the leverage analysis, the emphasis is on the
measurement of the relationship of the two variables,
rather than on measuring the variables.
 “Leverage may be defined as percentage return equity to
percentage return on capitalization.”

11. Types of leverage
Operating Leverage
= % change in EBIT / % change
in sales revenue
Financial Leverage
= % change in EBIT / % change
in EBT
Combined Leverage
OL*FL

12. PARTICULAR Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Revenue 55710 52704 46409 57742 51955
Cost of revenue 37862 36173 33817 42229 38593
Gross profit 17848 16531 12592 15513 13362
Operating expenses
Sales, General and administrative 9964 10028 8808 12582 11007
Other operating expenses -5543 895 8519 242 610
Total operating expenses 4421 10923 17327 12824 11617
Operating income(EBIT) 13427 5608 -4735 2689 1745
Interest Expense 2118 1997 674 2412 217
Other income (expense) 152 250 -968 1220 -2099
EBT 11461 3861 -6377 1497 -571
Tax 3056 3062 -20069 -6516 4272
EAT 8405 799 13692 8013 -4843
EPS 3.02 0.19 27.09 2.97 -1.91
Operating leverage -58% -184% -157% -35%
Change in EPS -0.94 141.58 -0.89 -1.64
Change in EBIT -0.58 -1.84 -1.57 -0.35
Financial Leverage 161% -7676% 57% 468%
Combine Leverage -93.71% 14157.89% -89.04% -164.31%

14. Plastic Money
 Plastic money is the alternative to the case or the
standard ‘money’. Plastic money is the generic
term for all types of bank cards, credit cards, debit
cards, smartcards, etc. They are the alternative to
the cash or the standard ‘money’. Plastic money is
used to refer to the credit cards that we use to
make purchase in our everyday life.

16. E-commerce
 The buying and selling of products and services by
businesses and consumers through an electronic
medium, without using any paper documents. E-
commerce is widely considered the buying and selling
of products over the internet, but any transaction that
is completed solely through electronic measures can
be considered e-commerce. E-commerce is subdivided
into three categories: business to business or B2B
(Cisco), business to consumer or B2C, and consumer to
consumer or C2C (eBay).

17. Advantages
of
e-
commerce
Faster buying/selling procedure, as well as easy to
find products.
Buying/selling 24/7.
More reach to customers, there is no theoretical
geographic limitations.
Low operational costs and better quality of
services.
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from different
providers without moving around physically.

18. VODAFONE
SERVICE
Get Started
Prepaid
Connection
Postpaid
Connection
Vodafone FLEX
Vodafone U
Switch to
Vodafone
Mobile Internet
Vodafone
SuperNetTM 4G
Advantage
4G User Guide
New to mobile
internet?
Dongles &
MobileWiFi
Music,Videos &
more
Callertunes &
Tones
Music
Videos
Games & Apps
Health
Roaming
National
Roaming
International
Roaming
Save with
Vodafone
Recharge while
roaming
Things to
Remember

19. Entrepreneur
&
It’s Qualities
(VERGHESE KURIEN)
(NEIM)

20. VERGHESE KURIEN
Verghiese Kurien known as the father of the white
revaluation in India was a social entrepreneur
whose "billion-litre idea"., Operation Flood - the
world's largest agricultural dairy development
programme, made India the world's largest milk
producer, surpassing the United States of America by
1998, with about 17 percent of global output in 2010–
11, from a milk-deficient nation, which doubled milk
available per person within 30 years, and which made
dairy farming India's largest self-sustaining industry,
with benefits of employment, incomes, credit,
nutrition, education, heath, gender parity &
empowerment, breaking down caste barriers and
grassroots democracy and leadership.

21. Co-founder of
Amul
Anand
Milk
Union
Limited
Founder of
NDDB
National
Dairy
Development
Board
Founder of IRMA
Institute
of
rural
management
anand

22. WHY HE OUR INSPIRATIONAL LEADER?
 Father of the white revolution in india.
 Architect behind the success of the largest dairy
development programe in the world.
 Chairman of the gujarat co-operative milk marketing
federation ltd. (gcmmf).
 His name was synonymous with the amul brand.
 Under dr. Kurien's stewardship india became the as
the largest producer of milk in the world.
 Kurien was committed to promoting cooperatives to
empower the indian farmer.
 Dr. Norman borlaug has called him “one of the
world’s great agricultural leaders of this century”.

23. QUALITIES
 Clarity of vision and ability to share it with others.
 Real passion and pride in what they believe.
 Ability to inspire and motivate others
 Willingness to take (calculated) risks
 Lateral thinking and ability to find innovative ideas and
solutions to problems.
 Positive attitude at all times and an innate ability to be
diplomatic in any circumstances
 Respect for all (team members, temps, customers, suppliers
and directors alike)
 Committed to making a significant difference
 Clear standards of ethics and integrity; openness and honesty
 Ability to drive, inspire and embrace change and continuous
improvement

24. CONSUMER
PROTECTION ACT,
1986
(LAB)

25. Objects of the Act
 Right to be protected against marketing of goods
which are hazardous to life and property.
 Right to be informed about the quality, potency,
standard, and price of goods to protect the
consumer against unfair trade practices.
 Right to be heard and to be assured that
customers’ interests will receive due
consideration at appropriate forums.
 Right to seek redressal against unscrupulous
exploitation of consumers.
 Right to consumer education.
 Consumer protection councils – Central & State.

26. Consumer
 Any person, who buys any goods for a consideration
which has been paid or promised or partly paid or
promised, or under any system of deferred payment.
Defect
 any fault, imperfection, or shortcoming in the quality,
quantity, potency, purity or standard which is required
to be maintained by the trader under any law.
Deficiency
Section 2(1)(g)“deficiency” means any fault, imperfection,
shortcoming or inadequacy in the quality, nature and manner of
performance which is required to be maintained by or under any
law for the time being in force or has been undertaken to be
performed by a person in pursuance of a contract or otherwise in
relation to any service;

27.  Holding Vodafone India guilty of deficiency in service, Maharashtra State Consumer Disputes
Redressal Forum has upheld a lower court order which asked the service provider to pay Rs
20,000 compensation and Rs 5,000 costs to a doctor for failing to stop unsolicited commercial
communications.
 "Vodafone had failed to discharge its obligation and acted with imperfection, shortcoming or
inadequacy in the nature and manner of purpose, which is required to be maintained by it under
the regulations," observed SR Khanzode and DhanrajKhamatkar in their order yesterday.
 "Thus, deficiency in service within the meaning of section 2(1)(g) of the Act is well established as
against Vodafone," the forum members further said while dismissing an appeal filed by
Vodafone against the consumer court judgement.
 Dr Ashish Gala, who practices in suburban Mulund, had registered with Vodafone on the "Do not
Call list". Yet, he got calls from various companies following which he filed a complaint with the
service provider on August 30, 2008, saying Vodafone should have ensured that he did not get
the calls.
 Vodafone argued that it was not deficient in service as under Telecom and Solicited Commercial
Communications Regulations, 2007, there is no positive obligation on them to stop unsolicited
commercial calls.
 In fact, Vodafone said, Telephone Regulatory Authority of India did not contemplate and
acknowledge the fact that such communication or unsolicited communication calls cannot be
stopped entirely.
 Vodafone further contended that as per explanatory memorandum issued to clause 16 of the
Regulations, 15 days time is provided for a subscriber for making the complaint to his service
provider in respect of unsolicited commercial communications. However, the complainant, Dr
Gala, had failed to make any such complaint within a fortnight.

28. Complainant : - Dr Ashish Gala
 Complaint :-Dr Ashish Gala, who practices in
suburban Mulund, had registered with Vodafone on
the "Do not Call list". Yet, he got calls from
various companies following which he filed a
complaint with the service provider on August 30,
2008, saying Vodafone should have ensured that he
did not get the calls
Deficiency
deficiency in service within the meaning of
section 2(1)(g) of the Act is well established as
against Vodafone," the forum members further said
while dismissing an appeal filed by Vodafone
against the consumer court judgment.

29. Judgment
 Holding Vodafone India guilty of deficiency in
service, Maharashtra State Consumer
Disputes Redressal Forum has upheld a lower
court order which asked the service provider
to pay Rs 20,000 compensation and Rs 5,000
costs to a doctor for failing to stop unsolicited
commercial communications.

30. Merger of
Vodafone and
Hutch
(SM)

31. Background – Vodafone (Voice Data Fone)
 Founded : 1983 as RacalTelecom, independent 1991
 Group :Vodafone Plc
 Headquarters : Berkshire, UK
 Key People :Vittorio Colao, CEO & Sir John Bond, Chairman
 Industry : MobileTelecommunications.
 Presence : Equity Interest in 25 Countries & Network
Partner in 42
 Strength : 2,30,000 (Employees)
 Revenue : £ 35,478 Million(14.1%Growth)
 Net Income : £ 10,047 Million(10.1%Growth)
 EPS : 7.51 Pence Dividend Per Share(11.1%Growth)

32. Background – Hutch –Essar
 Operations : 1992
 Circles : 16 + license for 6 circles
 Revenue : $ 1,282 Million
 EBITDA : $ 415 Million
 Operating Profit : $ 313 Million
 Subscriber Base : 29.2 Million
 ARPU : Rs. 340.15

33. Vodafone – Hutchison Deal
 Vodafone acquired HTIL (HutchisonTelecom
International)’s 67% stake in Hutchison-Essar.
 Relations between HutchisonTelecom and
the Essar group of India will be key to the sale
of Hutch's 67% stake in Hutch-Essar.
 Deal size and stake Fourth largest deal of the
year 2007 (to date) at $13.3 bn ($11.1 bn plus
$2 bn debt). Hutchison Essar valued at $18.8
bn.

34. Principal Benefits for Vodafone
 AcceleratesVodafone’s move to a controlling
position in a leading operator in the attractive and
fast growing Indian mobile market.
 India is the world’s 2nd most populated country with
over 1.1 billion inhabitants.
 India is the fastest growing major mobile market in
the world, with around 6.5 million monthly net adds
in the last quarter.
 India benefits from strong economic fundamentals
with expected realGDP growth in high single digits
 IncreasesVodafone’s presence in higher growth
emerging markets.

35. Reasons for Hutchison’s Exit
 Urban markets in the country had become
saturated.
 Future expansion would have had to be only in
the rural areas, which would lead to falling
average revenue per user (ARPU) and
consequently lower returns on its investments.
 HTIL also wanted to use the money earned
through this deal to fund its businesses in
Europe.
 The sale of its interests in India will enable
HutchisonTelecom to become one of Asia’s best
capitalized companies.