1. 1
A
Project Report
Of
CONTINUOUS EVALUATION COMPONENT (CEC)
-: Submitted by:-
STREAM
MBA SEM – 2
GUIDED BY
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)
COLLAGE
SHREE H.N.SHUKLA COLLAGE OF MANAGEMENT & STUDIES
SUBMITTED
GUJARAT TECHNOLOGICAL UNIVERSITY, AHEMADABAD
NAME ENROLLMENT NO.
Akshay D. Rajvir 157590592071
Dharmesh R.Chotaliya 157590592109
5. 5
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.
Levels of E-I-C Analysis
The
Organizatio
n
Competitors
Markets
Industry
Economy
6. 6
Every common stock is susceptible to the market risk. This feature of almost
all types of common stock indicates their combined movement with the
fluctuations in the economic conditions towards the improvement or
deterioration.
Stock prices react favorably to the low inflation, earnings growth, a better
balance of trade, increasing gross national product and other positive
macroeconomic news.
Indications that unemployment is rising, inflation is picking up or earnings
estimates are being revised downward will negatively affect the stock prices.
This relationship is reasonably reliable that the US economy is better
represented by the Standard & Poor 500 stock index, which is famous market
indicator.
The stock market will forecast an economic boom or recession properly from
the signs in front of average citizen. The Federal bank of New York has
conducted a research that describes that the slope of the yield curve is the
perfect indicator of the economic growth more than three months out.
Recession is indicated by negative slope while positive slope is considered as
good one. The implications of market risk should be clear to the investor.
When there is recession in the economy, the prices of stocks moves
downward.
All the companies suffer the effects of recession despite of the fact that these
are high performing companies or low performing ones. Similarly the stock
prices are positively affected by the boom period of the economy.
8. 8
The Five Forces model of Porter is an outside-in business unit strategy tool that
is used to make an analysis of the attractiveness (value...) of an industry
structure.
It captures the key elements of industry competition.
BUYERS
- Face Competition
- Consumer Demand (more features, minutes and text, less money)
- Switching Cost
- Maturing Urban Market
SUPPLIERS
- Network Infrastructure provider
- Information technology support
- Passive infrastructure providers
- Telecom equipment manufacturers-including handset manufacturers
Competitive
rivalry
within an
industry
threats of
new
entrants
bargaining
power of
Buyers
threats of
substitute
products
bargaining
power of
suppliers
9. 9
RIVALRY
- Idea
- Telefónica
- T- Mobile
- Airtel
- Orange
SUBSTITUTES
- Fixed Mobile Line Conversion
- InternetCalling Services, VOIP ( Skype, Messengers)
- Email
- Satellite Phones
- Unlicensed frequency options (ex: Wi-Fi, UWB, Walkie Talkie)
NEW ENTRANTS
- Brands
- Economies of Scale
- Spectrum Availability
- Service Licensing
- Technology Retaliation
- Rivalry among competing firms
- Price wars
- Fixed Cost
- Strategic stakes
10. 10
STRENGTH
- Brand Image
- Global Presence
WEAKNESS
- Grew through the acquisition
For ex. Czech mobile, Hutch
- It’s increasethe 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
12. 12
- 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 = %change in dependent variable/% change in independent
variables
-
- “Leverage may be defined as percentage return equity to percentage return
on capitalization.”
Types of leverage
Operating
Leverage
Financial
Leverage
Combined
Leverage
13. 13
- DEGREE OF OPERATING LEVERAGE
Operating leverage measure the relationship between the sales revenue
and the EBIT or in other word it measures the effect of change in sales
revenue on the level of EBIT. The operating leverage is calculated by
dividing the % change in EBIT by the % change in sales revenue.
= % change in EBIT / % change in sales revenue
- Degree of financialleverage
“Financial leverage may be defined as percentage return on the equity
to the percentage return on capitalization.”
Degree of financial leverage may be defined as the percentage change in
taxable profit as a result of percentage change in “operating profit”
= % change in EBIT / % change in EBT
- CombinedLeverage
It expresses the relationship between revenue on account of sales and
the taxable income. It helps in finding out the resulting percentage
change in taxable income on account of percentage change in sales.
20. 20
1. Debit Cards - When a person uses a debit card, the money is directly
debited from the person’s bank account. Thus, a person can use the
debit card till he has sufficient balance in his bank account as there is no
deferred payment. Debit cards can also be used in Automated Teller
Machines (ATMs) to withdraw cash.
2. Credit cards - A credit card is a type of plastic money using which a
person can purchase now and pay later. When the person swipes his
credit card for making payment, the amount does not get debited to his
bank account. It is paid by the credit card company and comes to the
person in the form of a monthly statement.
3. Smart Cards - A smart card consists of an electronic chip used to store
cash. While making a payment, the exact amount is deducted from the
smartcard. This card does not require any authorization like signature or
identification.
4. Cash Cards - These cards cannot be used to make payments or buying
things. They are only usefulfor withdrawing cash from machines, known
as ATMs.
5. Prepaid Cash Cards - These cards are similar to credit cards except that
there are no monthly statements. It can be used till there is credit in the
card but does not need a bank account.
6. Store Cards - Some stores have their own cards which can be used at
that particular store or group of stores. They can be used like credit
cards in the particular stores but are accompanied with high interest
rates.
7. Loyalty Cards - Loyalty cards are issued by retailers as a reward to
frequent buyers. It entitles the cardholders to a certain percentage of
discounts every time they purchase from that retailer.
21. 21
What is E-commerce, how banking sector play an importance role of e-
commerce and also discuss the advantages of 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).
25. 25
erghiese 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.
Co-founder of Amul
Anand
Milk
Union
Limited
Founder of NDDB
National
Dairy Development
Board
Founder of IRMA
Institute
of
rural management
anand
V
26 November 1921
Kozokode, Kerela
09 September 2012
Nadiad, Gujarat
26. 26
Ramon Magsaysay Award for Community Leadership (1963)
Padma Shri (1965)
Padma Bhushan (1966)
Krishi Ratna Award (1986)
Godfrey Philips bravery award
Wateler Peace Prize Award of Carnegie Foundation (1986)
World Food Prize Laureate (1989)
International Person of the Year(1993) by the World Dairy Expo,
Madison, Wisconsin, USA
Padma Vibhushan (1999)
27. 27
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”.
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
29. 29
CASE
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 acknowledgethe 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.
30. 30
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 :-
Section 2(1)(g) in the Consumer Protection Act, 1986
(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;
"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 judgment.
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.
32. 32
MERGER OF VODAFONE AND HUTCH
Background – Vodafone (Voice Data Fone)
Founded : 1983 as Racal Telecom, independent 1991
Group : Vodafone Plc
Headquarters : Berkshire, UK
Key People : Vittorio Colao, CEO & Sir John Bond, Chairman
Industry : Mobile Telecommunications.
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)
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. 33
Vodafone – Hutchison Deal
Vodafone acquired HTIL (Hutchison Telecom International)’s 67% stake
in Hutchison-Essar.
Relations between Hutchison Telecom 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.
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 Hutchison Telecom to
become one of Asia’s best capitalized companies.
Principal Benefits for Vodafone
Accelerates Vodafone’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 real
GDP growth in high single digits
Increases Vodafone’s presence in higher growth emerging markets.