Investment in The Coconut Industry by Nancy Cheruiyot
Insights from visits to Ralegan Siddhi village and other organizations
1. A PROJECT REPORT
ON INSIGHTS GAINED FROM
INDUSTRY VISITS
BY
SHIVAM. SHUKHLA
(BBA) (2013-14)
IN PARTIAL FULFILLMENT OF
Bachelor of Business Administration
UNIVERSITY OF PUNE
MITSOM College
PUNE: 411038
2. CERTIFICATE
This is to certify that MR SHIVAM. SHUKLA. Of MAEER’s MITSOM College has successfully
completed the project work in partial fulfillment of requirement for the award of Bachelor of
Business Administration prescribed by the University of Pune
This project is the record of authentic work carried out during the academic year
2013-14.
(Dr.) R.M. Chitnis
Subject Teacher Principal
3. DECLARATION
I Mr SHIVAM. SHUKLA here by declare that this project is the record of authentic work carried
out by me during the academic year 2013-14 and has not been submitted to any other University or
Institute towards the award of any degree
SHIVAM. SHUKLA.
4. Sr. No. Name of the Company/Organization Date of the visit
1 Ralegan siddhi visit. 8/8/2013
2 Baramati textile park visit. 23/12/2013
3 Universal Construction visit. 15/3/2014
4 Seminar (Role of IT in Business) 25/3/2014
6. INTRODUCTION
Today Ralegaon Siddhi is being taken as a role model for other villages by the Maharashtra
government and by other states too. Massive tree plantation has been undertaken, and hills have
been terraced to check erosion. Large canals with ridges on either side have been dug to retain
rainwater. As a result, the water table in this area is now considerably higher and the wells and
tube wells are never dry, making it possible to raise three crops a year where only one was possible
before.
MEANING:
Rural development generally refers to the process of improving the quality of life and economic
well-being of people living in relatively isolated and sparsely populated areas. Rural development
has traditionally centered on the exploitation of land-intensive natural resources such as agriculture
and forestry. However, changes in global production networks and increased urbanization have
changed the character of rural areas. Increasingly tourism, niche manufacturers, and recreation
have replaced resource extraction and agriculture as dominant economic drivers. The need for rural
communities to approach development from a wider perspective has created more focus on a broad
range of development goals rather than merely creating incentive for agricultural or resource based
businesses. Education, entrepreneurship, physical infrastructure, and social infrastructure all play
an important role in developing rural regions. Rural development is also characterized by its
emphasis on locally produced economic development strategies. In contrast to urban regions,
which have many similarities, rural areas are highly distinctive from one another. For this reason
there are a large variety of rural development approaches used globally.
Rural development actions are mainly and mostly to development aim forDevelopment actions:
the social and economic development of the rural areas.
Rural development programs are usually top-down from the local or regional authorities, regional
development agencies, NGOs, national governments or international development organizations.
But then, local populations can also bring about endogenous initiatives for development. The term
is not limited to the issues for developing countries. In fact many of the developed countries have
7. very active rural development programs. The main aim of the rural government policy is to
develop the undeveloped villages.
Rural development aims at finding the ways to improve the rural lives with participation of the
rural people themselves so as to meet the required need of the rural area. The outsider may not
understand the setting, culture, language and other things prevalent in the local area. As such,
general people themselves have to participate in their sustainable rural development. In developing
countries like Nepal, India, integrated development approaches are being followed up. In the
context of many approaches and ideas have been developed and followed up, for instance,
bottom-up approach, PRA- Participatory Rural Appraisal, RRA- Rapid Rural Appraisal etc.
OBSERVATION
We all student went Ralegan siddhi for field visit there firstly we saw musuem where all the
awards got to the Anna Hazare and village are kept. Anna Haraze says that all the awards he got
are the "imalagat" (Milgat) of village (Ralegan Siddhi). In the Musuem there were photo of the
work done by the villager, less price house, women doing farming, the dam built there, watershed
project, etc
Anan Hazare has given 5 principles and he's working on that principle
● Voluntary Labour (Eamadana)
● Ban on Tree Felling (kRhaDbaMMdI)
● Ban on Free Grazing (cara[baMdI)
● Prevention on Toxication (naSaabaMdI)
● Family Planning (nasabaMdI)
8. Anan Hazare has given 5 principles and he's working on that principle
Voluntary Labour (Eamadana)
Ban on Tree Felling (kRhaDbaMMdI)
9. ● Ban on Free Grazing (carabaMdI)
● Prevention on Toxication (naSaabaMdI)
10. ● Family Planning (nasabaMdI)
We then proceeded to a small hillock just outside the village. It gave us a
panoramic view of how this village has managed to flourish even after being
deprived of one of the main elements required to survive: water. The western
belt of this region of Maharashtra is thoroughly drought-stricken. Ralegan Siddhi
although having faced this trauma has now become a pioneer on the energy
Conservation front. The people, led by Hazare, have carried out various programs
Like tree plantation, terracing to reduce soil erosion and digging canals to retain
Rainwater. This has led to conserving water, plenty enough to keep the village
wells filled and available for use throughout the year. Over the past 25 years,
Ralegan Siddhi has metamorphosed from poverty- stricken, drought-prone
region to a rich, water-abundant, liquor-free village.
11. Then the student were taken to see the well, the well is 70 diameter big and 60 feet deep.
The water comes from dam to dam and ten to well, the overflow water is send to the well
which help not to waste the water. There are two 50hp pump attached to the well in every
dam 200 meters water is stopped and that water is send to well. This is called water set
recycling. Due to this the use of water set recycling project there is increase in production
of farmer. To make this well every farmer had to give sum amount per month i.e those
farmer has1 acre had to pay Rs 8500 and those who had 2 acre had to pay Rs7500, this
amount was approximately collected for 70 to 80 years. The amount which was collected
was kept in the bank in the form of fixed deposite. The electricity bill of pump is been paid
through the interest got on fixed deposit. The well was built by 50% government scheme
and 50% voluntary labour.
Then on the mountain they have created Continuous Control
Branches where the water which flows away is controlled from top of the side. They have
saved forest by cutting less tree and therefore they have got 3rd prize in maharashtra by
forest minister. They do not leave animal for grazing on top mountain which helps to ot
have soil erosion as when there is soil erosion all mud, sand is mixed in water and makes
the water un hygienic. The village is joint with joint forest committee, if any farmer wants
crop for grazing of animal had to go on the top of the hill and cut the crops and 0then give
to animal to eat. There are 48 NALA dam in Ralegan Siddhi.
12. The water which is blocked is filtered and sends to every house in the village as by
corporation.
They showed the place where Annaji stays 'The Hanuman Temple'. This is the place where
Annaji started doing the work. The temple was ruien and Annaji and village members built
it properly. Annaji stays there in the room.
Then we had talk with Anna Hazare some questions were asked by student and he gave answer for
that. The student got lot of information from there through the guide and the Anna hazare itself.
IDEAL VILLAGE
Ralegan Siddhi, a small village, about 85 km from Pune in Maharashtra, shot to fame in the late
1980s as the Best and Ideal Village in India. From being a poverty ridden, waterless and drought
affected village, it became a model with environmental conservation, discipline among villagers
and self-sufficiency, thanks to the efforts of a single person–Anna Hazare along with the
cooperation of the villagers.
In 1974, Ralegan Siddhi was called the ‘Drunkard Village’ as it had widespread illicit liquor trade
which affected the men and their families suffered.
Today even talking about it is banned and there is not a single place brewing it or a single shop
selling it . Ralegan Siddhi now has a grain bank, a milk bank, a lovely school and adequate water
round the year, accounting for economic progress.
Tree plantation projects have made the place green; solar power and biogas have made it
sustainable, soil erosion has reduced and rainwater harvesting is done on a regular basis. The
transformation of Ralegan Siddhi from a highly degraded village in a semi-arid region of extreme
poverty to one of the best and richest in the country, making even the World Bank Group
recognise it. The entire country has learnt about this village and many have followed its example,
with modest successes.
Ralegan Siddhi has a population of about 5000 people and when Anna Hazare reached there, after
his retirement from the army in 1975, he was shocked at the condition of the village and the
people. He felt that something had to be done and took up the task of reformation, inspired by
Swami Vivekananda who had said:
13. ‘Do you really want to do good to the people? If your actions and thoughts are pure, if your life is
spotless, and you are prepared to make sacrifices, and, like a lamp, if you try to burn yourself to
give others the light, even if the entire universe conspires against you, the divine power in you
would triumph.’
While in the army, Anna Hazare had escaped death thrice. Three times he was within a hair’s
breadth of death and was saved.
He felt that this was a sign that God wanted him to do something more, something for his
fellowmen.
He began by restoring the Yadavbaba Temple which became the centre of all his activities, then
and now. He used his gratuity and provident fund benefits, for this restoration and this was an
auspicious start for his other activities.
He began with water, the life line. Ralegan Siddhi gets very little rainfall, not enough for
cultivation. The villagers helped and they built bunds and trenches, repaired the percolation tank
and managed to save lot of rainwater.
This made agriculture possible and the village soon had enough water for both rabi and kharif
crops. People had adequate food and water and the economy improved. This watershed
development of Ralegan Siddhi became an example for villages nearby, most of which were
drought ridden and thirsty.
The major problem of drinking remained. Anna Hazare reasoned that people turn to drink either to
bury their sorrows, or because they have too much money. The latter was not the case, so it had to
be the former.
He set about setting it right. With the improvement in the economic situation, half the battle was
won. Besides, the lack of employment opportunities had made people turn to brewing liquor. With
farming in full swing, the farmers were soon busy. The greening of the village had made grazing
easier for cattle. Today cattle from other states are also brought to this village during winter
months for grazing. They pick up
health and go back to their origins.
During the festival of Holi the first year after his return, Anna Hazare gave a spirited speech about
the evils of drinking and smoking and discussed with the villagers on imposing a ban on drinking
14. and smoking. The villagers promised to follow this as they had full faith in the man who had
brought them food and water. This has been followed as can be seen when one visits the place.
The younger generation saw the opportunities and grabbed them.
SCHEME'S IMPLEMENTED
● Watershed project-
In the years 1972-73 there was wide spread severe draught in whole of Maharashtra. In order to
provide employment to the rural population in this situation Government of Maharashtra decided
to undertake soil conservation work in rural areas which required lot of labour. Agriculture and
Irrigation Departments of the Government were appointed as nodal agencies to execute the
programme and they undertook the work of construction of percolation tanks, nalla bunding and
contour bunding in Ralegan Siddhi. While the work was executed in Ralegan Siddhi due to
apathy of the Government agencies the percolation tank constructed at Ralegan was not
constructed taking due care and was leaking and thus its purpose was defeated.
After his retirement from Army in l975 he returned to Ralegan Siddhi and was very much
disturbed due to condition prevailing there and started discussing with the villagers their
problems. He observed that the water problem -both for drinking and irrigation - was acute and
15. felt that something should be done to overcome this problem. At that time he came to know of
one Mr. Vilasrao Salunkhe who was doing soil and water conservation work at Saswad. He
visited the work place of Mr. Salunkhe and felt that if similar activity is undertaken at Ralegan
Siddhi, the water scarcity problem at Ralegan could be solved. He, therefore, organised villagers
meeting (Gram Sabha) to explain to them the work of Mr. Salunkhe and its adoption in Ralegan
Siddhi. All the villegers were impressed by this idea and decided to start similar programme in
Ralegan Siddhi. Initially they decided to repair the existing percolation tank which was heavily
leaking. The cause of seepage of water was ascetained and work of providing core wall by
digging puddle trench up to the level of hard rock was undertaken on upper side of the bund
through voluntary labour of villagers. Satisfactory Completion of the work resulted in retention
of water in the tank resulting in recharging of ground water aquifers .This enthused the villagers
and they decided to implement the concept of water shed development, i.e. ridge to valley
approach for soil and water conservation which was hitherto not followed by the Department of
Agriculture. Implementation of watershed programme involved lot of expenditure and Mr.
Hazare approached the then Director of Soil Conservation and requested his help. He had
assured the Director that he and his collegues from village will actively participate in
implementation of watershed development programme and will provide labour voluntarily.
Due to availability of water for irrigation through wells and realising the importance of water the
villagers decided to form cooperative societies well-wise. This resulted in bringing more land
under cultivation and developments like double cropping, change of farming system, horticulture
plantations, vegetable cultivation, dairy farming etc. could take place. It will not be out of place
if it is mentioned that from Ralegan Siddhi for some period onions and vegetables were exported
to Gulf countries. All this resulted in substantial increase in per capita income of the farmers. and
the villagers through their cooperative efforts created facilities like school, hostel., gymnasiums,
credit societies renovation of temple etc. in the village.
16. The residents of Ralegan Siddhi are still enjoying the benefits of watershed programme though
more than 30 years have passed since completion of programme.
● The Continuous Control Branches is also been implemented.
● Rain Water Harvesting--
Rainwater harvesting is the accumulation and deposition of rainwater for reuse before it
livestockreaches the aquifer. Uses include water for garden, water for , water for irrigation,
and indoor heating for houses etc.. In many places the water collected is just redirected to a
deep pit with percolation. The harvested water can be used as drinking water as well as for
storage and other purpose like irrigation.
This are some scheme implemented in Ralegan Siddhi
18. ITRODUCTION
Baramati Hi-Tech Textile Park Ltd., a prestigious and an ambitious park that surely will achieve
and attain a universal status with the blessings and guidance of Hon. Shri. Sharadchandraji Pawar
Saheb, under the dynamic leadership of on. Shri. Ajitdada Pawar and Smt. Sunetra Ajit Pawar.
India is blessed with an amazing variety of natural tradition of art, made possible by diverse
geographical features. Climatic conditions and innumerable relent specially in textile industry.
In recent years due to globalization and migration of Textile. Industry having moved from Western
countries to Asian countries, in this changing scenario. India plays a vital role in the textile world.
It has earned a position as a booming industry and has become a celebrated form of art, fashion
designing gaining popularity far and wide.
To survive in the era of competition, we have to improve our quality, productivity and speed with
minimum cost by adopting the modern techniques and technologies.
The textile industry is in a unique situation of dynamism. The dynamic ways of the world today is
speak business environment, making the garment manufacturers, apparel makers and the
established brands compete at a breath taking speed. They need to have a distinctive edge over its
competitors to be successful. The industry needs to be more focused, standardized adapting textile
industries best practices with strategic technological advancement. The tech-pro manufacturers
have realized that technology and the best infrastructure provides an unpatrolled competitive edge
over others. Both on the cost quality and quantity front. Which finally results in improving the
production.
The market is now opening to many other. The distinction between consumers and producers is
bridging the gap. The markets have always looked at textile industry as a source of inspiration for
new trends, fashion and vogue. To keep abreast with pace of the changing textile industry and to
19. bring the manufacturers and its ancillary units under one roof. Govt. of India is introducing unique
scheme for the overall development and up gradation of Indian textile Industry the High Tech
Textile Parks all over India. In an increasingly complex global market, having forecasting view,
efficient and strategic steps are being taken for the up gradation and expansion of the industry by
the Govt. of India.
MISSION:
The BHTTP is committed to save the textile industry with main stream garment, apparel
manufacturers, as well as its supporting industry which will keep a finger on the pulse of the global
market in today’s open economy for global players in the textile industry seeking to expand their
business base in the Indian sub continent, BHTTP is the most trusted and a sure shot precincts that
provides and is well equipped with best of the best infrastructure, State of the art technology
machinery and other provisions that are conducive for the healthy and rapid growth of the Indian
textile industry.
The main cause behind introducing this magnanimous park is to support and enhance the global
position of the textile industry and also the empowering women by giving them employment in the
park.
VISION:
Our stringent commitment to Global standards of Quality has seen us grow phenomenally over the
last decade, to create a niche of our own, in the highly competitive world markets. BHTPL has
been the name of one of the most innovative and leading textile producers. Our technical
perfection, quality standards and innovative impacts are unique. BHTPL has become one of the
leading symbol of quality products in the textile industry.
20. FOCUS AREA: INTERNATIONAL BUSINESS
International business comprises all commercial transactions (private and governmental, sales,
investments, logistics, and transportation) that take place between two or more regions, countries
and nations beyond their political boundaries. Usually, private companies undertake such
transactions for profit; governments undertake them for profit and for political reasons. It refers to
all those business activities which involve cross border transactions of goods, services, resources
between two or more nations. Transaction of economic resources include capital, skills, people etc.
for international production of physical goods and services such as finance, banking, insurance,
construction etc.
A multinational enterprise (MNE) is a company that has a worldwide approach to markets and
production or one with operations in more than a country. An MNE is often called multinational
corporation (MNC) or transnational company (TNC). Well known MNCs include fast food
companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors,
Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony,
and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate
21. in multiple national markets.
Areas of study within this topic include differences in legal systems, political systems, economic
policy, language, accounting standards, labor standards, living standards, environmental standards,
local culture, corporate culture, foreign exchange market, tariffs, import and export regulations,
trade agreements, climate, education and many more topics. Each of these factors requires
significant changes in how individual business units operate from one country to the next.
DEFINATION:
According to Czinkotra and Grosse and Kojawa: "International business is defined as
transaction devised and carries out across International borders to satisfy corporation
and individuals."
According to Robock and Simmonds: "International business is defined as a field of
management training (that) deals with the special features of business activities that
cross national boundaries."
22. FEATURES OF INTERNATIONAL BUSINESS
Large scale operations: In international business, all the operations are conducted on a
very huge scale. Production and marketing activities are conducted on a large scale. It first
sells its goods in the local market. Then the surplus goods are exported.
Integration of economies: International business integrates (combines) the economies of
many countries. This is because it uses finance from one country, labour from another
country, and infrastructure from another country. It designs the product in one country,
produces its parts in many different countries and assembles the product in another country.
It sells the product in many countries, i.e. in the international market.
Dominated by developed countries and MNCs : International business is dominated by
developed countries and their multinational corporations (MNCs). At present, MNCs from
USA, Europe and Japan dominate (fully control) foreign trade. This is because they have
large financial and other resources. They also have the best technology and research and
development (R & D). They have highly skilled employees and managers because they
give very high salaries and other benefits. Therefore, they produce good quality goods and
services at low prices. This helps them to capture and dominate the world market.
Benefits to participating countries: International business gives benefits to all
participating countries. However, the developed (rich) countries get the maximum benefits.
The developing (poor) countries also get benefits. They get foreign capital and technology.
They get rapid industrial development. They get more employment opportunities.
FEATURES OF INDIAN FOREIGN TRADE POLICY
More Share of GNP: India's foreign trade has great significance for its GNP. In 1980-81,
India's foreign trade constituted 12% of its G.N.P. In 2001-02 it increased to 23.4% of gross
national product.
Less Percentage of World Trade: India's share in world trade has been sliding down. In
1950-51, India's share in total import trade of the world was 1.8% and in total export trade
23. was 2%. In 2001-02, it came down to 0.5% in import trade and to 0.2% in export trade.
Change in Composition of Exports: After independence, there was change in the
composition of India's export trade. Before, independence, India used to export agricultural
products and raw materials. Now on export side, various types of finished products have
been added to the number of export commodities.
Change in the Composition of Imports: In the post independence era, composition of
India's import trade has also undergone a change. Prior to independence, India used to
import finished products comprising of medicines, cloth, motor vehicles, electrical goods,
iron and steel etc. But now, its imports comprises of largely petrol, machines, chemical
fertilizers, oilseeds, raw materials, steel, oil etc.
Dependence on Few Ports: India's foreign trade is handled mainly by Bombay, Calcutta,
Madras ports. Therefore, these ports remain over busy. During planning period Government
of India has developed three more ports via; Kandla, Cochin and Vishakhapatnam.
Balance of Trade: Prior to independence, India's balance of trade was favorable. But soon
after independence, it became unfavorable. In 1995-96, balance of trade was Rs. 42 crore
which was favorable. From 1995-96 to onwards, it became unfavorable. Ending 1998-99,
deficit of balance of trade was of Rs. 28580 crore and Rs. 36181 in 2000-01. It is again
expected to decline to Rs. 26014 crore in 2001-02.
Foreign Trade by Government: In order to conduct foreign trade smoothly, Government
has set up many corporations like State Trading Corporation (1946), Minerals and Metal
Trading Corporation (1963) etc.
Oceanic Trade: Most of India's foreign trade is by sea routes. India has very little trade
relations with neighboring countries like Nepal, Afghanistan, Burma, Sri Lanka etc. About
68% of India's trade is by sea.
24. WHAT ARE SPECIAL ECONOMIC ZONES?
A special economic zone (SEZ) is a geographical region that is designed to export goods and
provide employment. SEZs are exempt from federal laws regarding taxes, quotas, FDI-bans, labour
laws and other restrictive laws in order to make the goods manufactured in the SEZ at a globally
competitive price.
The category SEZ includes free trade zones (FTZ), export processing Zones (EPZ), free Zones
(FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban
enterprise zones.
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone
(EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a
view to overcome the shortcomings experienced on account of the multiplicity of controls and
clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a
view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy
was announced in April 2000.
To instill confidence in investors and signal the Government's commitment to a stable SEZ policy
regime and with a view to impart stability to the SEZ regime thereby generating greater economic
activity and employment through the establishment of SEZs, a comprehensive draft SEZ Bill
prepared after extensive discussions with the stakeholders. A number of meetings were held in
various parts of the country both by the Minister for Commerce and Industry as well as senior
officials for this purpose. The Special Economic Zones Act, 2005, was passed by Parliament in
May, 2005 which received Presidential assent on the 23rd of June, 2005. The draft SEZ Rules were
widely discussed and put on the website of the Department of Commerce offering
suggestions/comments. Around 800 suggestions were received on the draft rules. After extensive
consultations, the SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February,
2006, providing for drastic simplification of procedures and for single window clearance on
25. matters relating to central as well as state governments.
The main objectives of the SEZ Act are:
(a) generation of additional economic activity
(b) promotion of exports of goods and services;
(c) promotion of investment from domestic and foreign sources;
(d) creation of employment opportunities;
(e) development of infrastructure facilities;
The SEZ Act 2005 envisages key role for the State Governments in Export Promotion and creation
of related infrastructure. A Single Window SEZ approval mechanism has been provided through a
19 member inter-ministerial SEZ Board of Approval (BoA). The applications duly recommended
by the respective State Governments/UT Administration are considered by this BoA periodically.
All decisions of the Board of approvals are with consensus.
FEATURES:
Salient features and facilities in SEZ
● 1. A designated duty free enclave and to be treated as foreign
territory for trade operations and duties and tariffs.
● No license required for import.
● 3. Exemption from customs duty on import of capital goods,
raw materials, consumables, spares etc.
● 4. Exemption from Central Excise duty on procurement of
capital goods, raw materials, consumable spares etc. from the
domestic market.
● 5. Supplies from DTA to SEZ units treated as deemed exports.
● 6. Reimbursement of Central Sales Tax paid on domestic
purchases.
26. ● 7. 100% income tax exemption for a block of five years, 50%
tax exemptions for two years and up to 50% of the Profits
ploughed back for next 3 years under section 10-A of Income
tax Act.
● 8. Supplies from DTA to SEZ to be treated as exports under
80HHC of the IT Act.
9. Carry forward of losses
● 10. 100% Income-tax exemption for 3 years & 50% for 2 years
under section 80-LA of the Income-tax Act for offshore
banking units.
● 11. Reimbursement of duty paid on furnace oil, procured from
domestic oil companies to SEZ units as per the rate of
Drawback notified by the Directorate General of Foreign
Trade. SEZ units may be for manufacturing, trading or service
activity.
● 12. SEZ unit to be positive net foreign exchange earner within
three years.
● 13. Performance of the units to be monitored by a Committee
headed by Development Commissioner and consisting of
Customs.
● 14. 100% Foreign Direct Investment in manufacturing, sector
allowed through automatic route barring a few sectors.
● 15. Facility to retain 100% foreign exchange receipts in EEFC
Account.
● 16. Facility to realize and repatriate export proceeds within 12
27. TARRIFF AND NON TARRIF BARRIES:
TARIFF BARRIERS TO TRADE
A tariff is a tax on imports or exports (an international trade tariff), or (2) a list of prices
for such things as rail service, bus routes, and electrical usage (electrical tariff, etc.).[1]
The
meaning in (1) is now the more common meaning. The meaning in (2) is historically
earlier. The meaning in (1) developed from a tabular list of tax rates for different import
goods.
Types of Tariffs and Trade Barriers
There are several types of tariffs and barriers that a government can employ:
● Specific tariffs
● Ad valorem tariffs
● Licenses
● Import quotas
● Voluntary export restraints
● Local content requirements
28. Six Types of Non-Tariff Barriers to Trade
1.
2. Specific Limitations on Trade:
1. Import Licensing requirements
2. Proportion restrictions of foreign domestic goods (local content requirements)
3. Minimum import price limits
4. Free
5. Embargoes
3. Customs and Administrative Entry Procedures:
1. Valuation systems
2. Anti-dumping practices
3. Tariff classifications
4. Documentation requirements
5. Fees
4. Standards:
1. Standard disparities
2. Intergovernmental acceptances of testing methods and standards
3. Packaging, labeling, and marking
30. OBSERVATION:
The student were taken to Baramati Textile Park where they saw three factories
1. PIONEER CALICOS.
2. PURPLE CREATIONS.
3. PURPLE PRINTING.
PIONEER CALICOS.
Pioneer CalicosThe name is given by late Shri. Dattatraya .B. Phatak (Mamasaheb).
In pioneer calicos the production of the material used for newly born baby and pregnant mother is
done. The products are made to export to foreign countries only. 250 products are made in the
factory itself. The product like baby pillows is made through the process of single needles and four
block machine.
The workers work for 8 hours in the factory i.e 8:30 to5:30.
All products are exported to Germany. Companies new showroom is opened in Baramati and
Kothrud Pune, the name of the showroom is "Black & White" Here bed sheets hand printing is
also done. The some product made here are:
1. Feeding bed.
2. Neck rest.
3. 7 shaped pillows. etc
These product are costly for Indian market. The raw material used some is brought from Germany
and some from other market. To make any product the material is cut into 4 pieces and then the
product is made. Pillow is mounded so that child's head can be kept properly on it.
PURPLE CREATIONS PVT LTD.
In this company product like baby beeps etc are been made. The production cost of per piece is
approximately Rs 3.8. In the cost includes Trims, fabric, printing, labeling, etc.
31. The working hours is 9 hrs. And the output in that working hrs is 2800 pieces. As per the pattern
the machine is been inputted in the company. There are total 40 work station but at a time 30
working station are been utilized or working. All products are send to work station as per the
machine route which is controlled by computer.
The products are send to Disney, Big Bazar, Future Play, etc.
The clothes is marked through machine and then the cloth is again put in Machine and manually
been cut. Collar is been cut and rolled through machine. The panel checking is done then damaged
cloth is removed. The printing on the clothes is done through Marker machine. The completed
clothes are been tagged. On Monty press machine 2clothes are pressed at a time. The temperature
of the machine is 80 to 120 degrees. The damaged clothes are cleaned through Water steamed
through gun. The clothes are also pressed manually and packed at least 1000 clothes are
32. pressed in a day.
PURPLE PRINTINGS PVT LTD.
On screening machine the printing is done on the clothes. This machine is handle by only one
person. Then the cloth is put in the drier to dry.
ABOUT THE PARK
The park is setup through Scheme of Ministry Government and Scheme of Textile. In 1993 the
Quota System Trade was going to Abolished. It was affected in 2001 in the world and
therefore doing trade to any country was made easy this was the reason of textile migrated in
Asian country.
China and India is major country to supply textile. China was ahead therefore new technology
upgrading scheme was introduced. This was not sufficient and hence government thought of
making such industry and therefore government started these industries.
In 2005 this industry were established. The property is not owned by single owner. It is known
as park i.e. many owners. Other than textile part the company cannot do any other work. The
Internal machine the owner has to invest on it and has to maintain it. The owners have to pot 60%
of amount of machine and remaing 40% is given by Government
Labor class-In garment Industry there are more of female worker. 80% are female workers and
remaining 20% male workers.
30% of Textile Park are in Maharashtra and remaining 70% in different state.
34. INTRODUCTION
Within the three decades of its evolution, Universal has become more than just being one of lndia's
largest engineering companies. lt has been a pioneer of new technology, a prime mover at every
stage, introducing products and technologies that helped take the construction industry a giant leap
forward. The state-of-the-art facilities of Universal have rolled out over a million construction and
material handling equipment for its high profile, quality-conscious clients all over the world.
World-class manufacturing practices coupled with constant focus on research and development,
have brought Universal today in the league of premier corporate entities in India. The Universal
Group, an ISO-9001:2000 Company, is among India‘s leading engineering conglomerates.
Universal has emerged as a one-stop-shop for providing end-to-end solutions for the construction
industry. After achieving pan India presence, Universal is now aiming at the global market.
Universal products conform to high standards of technology, performance and durability. The key
to Universal’s future growth lies in innovative products supported by excellent after-sales services,
strong financial systems and increased dealer penetration.
35. MISSION:
Our quest is to achieve the pinnacle in technology-based construction solution powered by an
even greater desire to be socially responsible.
Our mission is growth through innovation and ideas. We believe in building successful long
term relationships with our customers by offering integrated solutions and services exceeding
their expectations!
It is our endeavor to grow continuously and offer better services to our customers
36. RESEARCH & DEVELOPMENT:
Universal believes that R&D is the backbone of any successful organistion.
Thus, through excellent R&D, Universal is involved in developing new products &
procedures which will contribute to the field of mechanization and development of superior
machines. Universal has indigenously developed an incredible range of construction
machines from the simple sand plastering machine to the mobile batching machine.
All the machines of Universal are at par with the world’s best while delivering their optimum
performance. Universal has specially designed customized products for Border Road
Construction Organization and National Thermal Power Corporation. At Universal, a highly
qualified team of engineers create innovative solutions for the challenges of modern day
construction industry.
37. CERTIFICATES:
Universal boasts of a number of Quality and Systemic Excellence I J Certificates which are
rarely bestowed upon any Indian company. They stand testimony to our technical supremacy,
quality processes, and our manufacturing prowess. Conforming to high, international safety
standards, our products easily win high accolades at global levels.
38. SOCIAL RESPONSIBILITIES:
A strong sense of social and environmental responsibility is an integrated part of Universal’s
value system. We are committed to social duties and are also responsible toward the society.
Various dignified initiatives have been carried out by UNIVERSAL to economically
empower people by building collaborative bind with the needy segments of the society.
Universal encourages small groups to get contractual work and also supports them by
providing small scale equipments.
Focus area
● What is Production Management?
Production management means planning, organizing, directing and controlling of production
activities.
Production management deals with converting raw materials into finished goods or products. It
brings together the 6M's i.e. men, money, machines, materials, methods and markets to satisfy the
wants of the people.
39. Production management also deals with decision-making regarding the quality, quantity, cost, etc.,
of production. It applies management principles to production.
Production management is a part of business management. It is also called "Production
Function." Production management is slowly being replaced by operations management.
The main objective of production management is to produce goods and services of the right
quality, right quantity, at the right time and at minimum cost. It also tries to improve the efficiency.
An efficient organisation can face competition effectively. Production management ensures full or
optimum utilisation of available production capacity.
Definition of Production Management
According to Elwood Spencer Buffa,
"Production management deals with decision-making related to production processes so that the
resulting goods or service is produced according to specification, in the amount and by the
schedule demanded and at minimum cost."
40. Importance of Production Management
The importance of production management to the business firm:
1. Accomplishment of firm's objectives : Production management helps the business firm to
achieve all its objectives. It produces products, which satisfy the customers' needs and wants.
So, the firm will increase its sales. This will help it to achieve its objectives.
2. Reputation, Goodwill and Image : Production management helps the firm to satisfy its
customers. This increases the firms reputation, goodwill and image. A good image helps the
firm to expand and grow.
3. Helps to introduce new products : Production management helps to introduce new products in
the market. It conducts Research and development (R&D). This helps the firm to develop newer
and better quality products. These products are successful in the market because they give full
satisfaction to the customers.
4. Supports other functional areas : Production management supports other functional areas in an
organisation, such as marketing, finance, and personnel. The marketing department will find it
easier to sell good-quality products, and the finance department will get more funds due to
increase in sales. It will also get more loans and share capital for expansion and modernisation.
The personnel department will be able to manage the human resources effectively due to the
better performance of the production department.
society:
1. Higher standard of living : Production management conducts continuous research and
development (R&D). So they produce new and better varieties of products. People use these
products and enjoy a higher standard of living.
2. Generates employment : Production activities create many different job opportunities in the
country, either directly or indirectly. Direct employment is generated in the production area, and
indirect employment is generated in the supporting areas such as marketing, finance, customer
support, etc.
3. Improves quality and reduces cost : Production management improves the quality of the
products because of research and development. Because of large-scale production, there are
41. economies of large scale. This brings down the cost of production. So, consumer prices also
reduce.
TYPES OF PRODUCTION PROCESS:
JOB METHOD
With Job production, the complete task is handled by a single worker or group of workers.
Jobs can be small-scale/low technology as well as complex/high technology.
Low technology jobs: here the organisation of production is extremely simply, with the required
skills and equipment easily obtainable. This method enables customer's specific requirements to be
included, often as the job progresses. Examples include: hairdressers; tailoring
High technology jobs: high technology jobs involve much greater complexity - and therefore
present greater management challenge. The important ingredient in high-technology job production
is project management, or project control. The essential features of good project control for a job
are:
- Clear definitions of objectives - how should the job progress (milestones, dates, stages)
- Decision-making process - how are decisions taking about the needs of each process in the job,
labour and other resources
Examples of high technology / complex jobs: film production; large construction projects (e.g. the
Millennium Dome)
BATCH METHOD
As businesses grow and production volumes increase, it is not unusual to see the production
process organized so that "Batch methods" can be used.
Batch methods require that the work for any task is divided into parts or operations. Each operation
is completed through the whole batch before the next operation is performed. By using the batch
42. method, it is possible to achieve specialization of labor. Capital expenditure can also be kept lower
although careful planning is required to ensure that production equipment is not idle. The main
aims of the batch method are, therefore, to:
- Concentrate skills (specialization)
- Achieve high equipment utilisation
This technique is probably the most commonly used method for organising manufacture. A good
example is the production of electronic instruments.
Batch methods are not without their problems. There is a high probability of poor work flow,
particularly if the batches are not of the optimal size or if there is a significant difference in
productivity by each operation in the process. Batch methods often result in the build up of
significant "work in progress" or stocks (i.e. completed batches waiting for their turn to be worked
on in the next operation).
Flow Methods
Flow methods are similar to batch methods - except that the problem of rest/idle production/batch
queuing is eliminated.
Flow has been defined as a "method of production organisation where the task is worked on
continuously or where the processing of material is continuous and progressive,"
The aims of flow methods are:
- Improved work & material flow
- Reduced need for labour skills
- Added value / completed work faster
Flow methods mean that as work on a task at a particular stage is complete, it must be passed
directly to the next stage for processing without waiting for the remaining tasks in the "batch".
When it arrives at the next stage, work must start immediately on the next process. In order for the
43. flow to be smooth, the times that each task requires on each stage must be of equal length and there
should be no movement off the flow production line. In theory, therefore, any fault or error at a
particular stage
In order that flow methods can work well, several requirements must be met:
(1) There must be substantially constant demand
If demand is unpredictable or irregular, then the flow production line can lead to a substantial build
up of stocks and possibility storage difficulties. Many businesses using flow methods get round
this problem by "building for stock" - i.e. keeping the flow line working during quiet periods of
demand so that output can be produced efficiently.
(2) The product and/or production tasks must be standardized
Flow methods are inflexible - they cannot deal effectively with variations in the product (although
some "variety" can be accomplished through applying different finishes, decorations etc at the end
of the production line).
(3) Materials used in production must be to specification and delivered on time
Since the flow production line is working continuously, it is not a good idea to use materials that
vary in style, form or quality. Similarly, if the required materials are not available, then the whole
production line will come to a close - with potentially serious cost consequences.
(4) Each operation in the production flow must be carefully defined - and recorded in detail
(5) The output from each stage of the flow must conform to quality standards
Since the output from each stage moves forward continuously, there is no room for sub-standard
output to be "re-worked" (compare this with job or batch production where it is possible to
compensate for a lack of quality by doing some extra work on the job or the batch before it is
44. completed).
The achievement of a successful production flow line requires considerable planning, particularly
in ensuring that the correct production materials are delivered on time and that operations in the
flow are of equal duration.
Common examples where flow methods are used are the manufacture of motor cars, chocolates
and televisions
● WHAT IS PLANT LAYOUT?
Definition: Plant layout refers to the arrangement of physical facilities such as machines,
equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the
lowest cost and with the least amount of handling in processing the product from the receipt of raw
material to the delivery of the final product.
Objectives of good Plant Layout:
· A well designed plant layout is one that can be beneficial in achieving the following
objectives:
· Proper and efficient utilization of available floor space
· Transportation of work from one point to another point without any delay
· Proper utilization of production capacity.
· Reduce material handling costs
· Utilize labour efficiently
· Reduce accidents
· Provide for volume and product flexibility
· Provide ease of supervision and control
· Provide for employee safety and health
· Allow easy maintenance of machines and plant.
45. · Improve productivity
TYPES OF LAYOUT:
There are mainly four types of plant layout:
(a) Product or line layout
(b) Process or functional layout
(c) Fixed position or location layout
(d) Combined or group layout
PRODUCT OR LINE LAYOUT:
In this type of layout the machines and equipments are arranged in one line depending upon the
sequence of operations required for the product. It is also called as line layout. The material
moves to another machine sequentially without any backtracking or deviation i.e the output of
one machine becomes input of the next machine. It requires a very little material handling.
It is used for mass production of standardized products.
46. Advantages of Product layout:
· Low cost of material handling, due to straight and short route and absence of
backtracking
· Smooth and continuous operations
· Continuous flow of work
· Lesser inventory and work in progress
· Optimum use of floor space
· Simple and effective inspection of work and simplified production control
· Lower manufacturing cost per unit
Disadvantages of Product layout:
· Higher initial capital investment in special purpose machine (SPM)
· High overhead charges
· Breakdown of one machine will disturb the production process.
· Lesser flexibility of physical resources.
PROCESS LAYOUT:
In this type of layout the machines of a similar type are arranged together at one place. This
type of layout is used for batch production. It is preferred when the product is not standardized
and the quantity produced is very small.
47. Advantages of Process layout:
· Lower initial capital investment is required.
· There is high degree of machine utilization, as a machine is not blocked for a single
product
· The overhead costs are relatively low
· Breakdown of one machine does not disturb the production process.
· Supervision can be more effective and specialized.
· Greater flexibility of resources.
Disadvantages of Process layout:
· Material handling costs are high due to backtracking
· More skilled labour is required resulting in higher cost.
· Work in progress inventory is high needing greater storage space
· More frequent inspection is needed which results in costly supervision
48. COMBINED LAYOUT:
· A combination of process & product layout is known as combined layout.
· Manufacturing concerns where several products are produced in repeated numbers with no
likelihood of continuous production, combined layout is followed
FIXED POSITION OR LOCATION LAYOUT:
Fixed position layout involves the movement of manpower and machines to the product which
remains stationary. The movement of men and machines is advisable as the cost of moving them
would be lesser. This type of layout is preferred where the size of the job is bulky and heavy.
Example of such type of layout islocomotives, ships, boilers, generators, wagon building, aircraft
manufacturing, etc.
49. Advantages of Fixed position layout:
· The investment on layout is very small.
· The layout is flexible as change in job design and operation sequence can be easily
incorporated.
· Adjustments can be made to meet shortage of materials or absence of workers by
changing the sequence of operations.
Disadvantages of Fixed position layout:
· As the production period being very long so the capital investment is very high.
· Very large space is required for storage of material and equipment near the product.
· As several operations are often carried out simultaneously so there is possibility of
confusion and conflicts among different workgroups.
OBSERVATION
The company uses batch method for Production process where all the task are been divided in
Groups and the work is done
51. ROLE OF INFORMATION TECHNOLOGY IN
BUSINESS
The role of information technology systems in a business environment can be classified into four
broad categories. These categories include function performance, communication through
networking, management and enterprise roles.
Information technology provides commercial and industrial systems for businesses. These systems
enable businesses to function effectively and efficiently.
52. FUNCTION IT SYSTEMS
Function IT systems are applications that allow individuals to function effectively in the
workplace. Examples of common IT systems that enhance workplace functions are word processor
applications, spreadsheet applications, statistical analysis software and computer aided design
(CAD) programs. Employees can work and perform their task individually or collectively using
these specialized software technologies.
NETWORK IT SYSTEMS
Network IT systems allow effective communication within and outside an organisation. Examples
range from simple e-mail (electronic mail) to blogs, wiki sites, IM (instant messaging) and
electronic conferencing systems. These types of technologies promote interaction and collaboration
among working groups and also facilitate quick information flow at all levels.
MANAGEMENT IT SYSTEMS
Management IT systems(MITS) can be defined as planned applications that are designed to process
data and transform the processed data into useful information for management decision making.
It should be noted that Management Information systems (MIS) are subsets of Enterprise IT
systems (this is explained later on in this article). However, because of the vital role MIS play in a
business environment, it is considered here as a major information technology for businesses.
In a typical scenario, management operates at different levels and so it is possible to apply
management information systems at these varied levels.
Basic examples of management information systems are human resources management systems,
financial management information systems and marketing management information systems.
ENTERPRISE IT SYSTEMS
53. Enterprise IT systems are technologies designed to integrate and manage entire business processes
for large organisations. Typically, enterprise application software is hosted on large servers over a
computer network. Transmission of information can either be internal or external.
Examples of enterprise information systems may be accounting software, health care specific
software or Electronic Data Interchange (EDI). Another good example of software application
within this category is Customer relationship management software (CRM).
The role of Information technology in business is wide and varied. It can be said that IT provides a
huge range of capabilities that enhance management performance at all levels. It is therefore
important to understand the four major categories of IT systems and their functions and roles in a
business environment.
PRIMARY COMPUTING ERAS
● MAINFRAME COMPUTER ERA
● PC COMPUTER ERA
● PERVASIVE COMPUTING
THE MAINFRAME ERA
Modern datacenters have their origins in the huge computer rooms of the early
computing industry. Old computers required an enormous amount of power and had to
constantly be cooled to avoid overheating. In addition, security was of great importance
because computers were extremely expensive and commonly used for military purposes,
so basic guidelines for controlling access to computer rooms were devised.
54. Maintenance and operation of these early computer systems was extremely complex and
massive cables were required to connect all their components. Old computers also
required an enormous amount of power and had to constantly be cooled to avoid
overheating. The complexity of these huge, room-sized machines, required a lot of space
and a controlled environment and maintaining these machines also led to the practice of
secluding them in dedicated rooms; it was the birth of the datacenter.
55. From the 60s, computers stopped using vacuum tubes to gradually using transistors
which made them more durable, small, efficient, reliable and inexpensive. The first
transistorized computer (TRADIC) was developed in 1954 but the commercial models
have emerged only a few years later with the first IBM systems.
56. While mainframes were occupying large rooms and consuming huge resources, in the
mid-1960s a new type of machines appeared. Smaller and cheaper than the mammoth
mainframes, they were called minicomputers exactly by opposition to the gigantic
dimensions and price of their predecessors. This type of computers eventually asserted
itself, creating a class apart with its own architecture and operating systems.
This is how virtualization came to be, very basic in the beginning, but conceptually
57. evolving very rapidly in order to allow the mainframe applications to perform several
tasks concurrently. The first commercial use of virtualization was released in 1972 on the
IBM VM/370 operating system.
Moreover, the emergence of the microprocessor soon makes the term "minicomputer"
mean a machine that lies in the middle range of the computing spectrum, in between the
smallest mainframe computers and the brand new microcomputers. These midrange
machines grew to have relatively high processing capabilities and were used in industrial
process control, telephone switching, laboratory equipment control and in the 1970s,
they were the hardware platform that launched the computer-aided design
58. Throughout that decade, data centers began documenting formal disaster recovery plans
alongside with the development of local networks that allow to interconnect multiple
machines, increasingly powerful. But at the end of the decade, the advent of
microcomputers becomes a viable alternative to outdated mainframes because they
were smaller and cheaper. Being originally designed for scientific and engineering
applications, microcomputers were quickly adapted for enterprise applications and the
fact that they were easily air-cooled caused them to enter into the offices. This led to the
almost total extinction of the once all-powerful mainframes and the now obsolete
datacenters with complex cooling systems.
PC COMPUTER ERA
For the past 30 years, enterprise communications have been built around the personal computer.
During this time, the traditional PC became central to our professional, and eventually, our
personal lives.
Today, we're seeing a role reversal where communication methods used in our personal life are
driving changes in the workplace.
While many organizations haven't harnessed the full power or potential of advanced
communications, employees are already jumping ahead and asking: What's next? Why can't I use
my smart device for work? As a result, they are driving the new PC Era where the "C" is
something entirely new.
The future of the enterprise market is being shaped by mega trends including:
● A consumer revolution where social networks, mobile devices, and a shift to visual content are
all redefining the way people communicate.
● A technology evolution that uses open architectures and standardized technologies to support
the growing demand from new deployment and consumption models.
● A business model transformation that is accelerated by business and economic imperatives,
fueling the demand for pay-as-you-go models supported by new types of hosted and managed
59. architectures known as the "the cloud."
WHAT'S THE FUTURE OF ENTERPRISE COMMUNICATIONS?
These mega trends are contributing to a global transformation that is changing the direction of
enterprise communications dramatically.
The arrival of smart devices and the popular tablet into the workplace is a symptom of something
bigger. The tablet heralds a future where the device is just an access point to individual and
personal content. The content will be stored in a "space" available from anywhere, any device,
anytime – "the cloud."
The "Bring Your Own Device" (BYOD) phenomenon is part of this role reversal that exposes a
future where employees copy their consumer habits and paste them into their professional life.
We are entering the Personal Cloud Era.
60. HISTORY OF IT
INTRODUCTION
Information technology has been around for a long, long time. Basically as long as people have
been around, information technology has been around because there were always ways of
communicating through technology available at that point in time.
AGES
PREMECHANICAL
The premechanical age is the earliest age of information technology. It can be defined as the time
between 3000B.C. and 1450A.D. We are talking about a long time ago. When humans first started
communicating they would try to use language or simple picture drawings known as petroglyths
which were usually carved in rock. Early alphabets were developed such as the Phoenician
alphabet.
PETROGLYPH
As alphabets became more popular and more people were writing information down, pens and
paper began to be developed. It started off as just marks in wet clay, but later paper was created out
of papyrus plant. The most popular kind of paper made was probably by the Chinese who made
paper from rags.
MECHANICAL
The mechanical age is when we first start to see connections between our current technology and
its ancestors. The mechanical age can be defined as the time between 1450 and 1840. A lot of new
technologies are developed in this era as there is a large explosion in interest with this area.
Technologies like the slide rule (an analog computer used for multiplying and dividing) were
invented. Blaise Pascal invented the Pascaline which was a very popular mechanical computer.
DIFFERENCE ENGINE
61. There were lots of different machines created during this era and while we have not yet gottent to a
machine that can do more than one type of calculation in one, like our modern-day calculators, we
are still learning about how all of our all-in-one machines started. Also, if you look at the size of
the machines invented in this time compared to the power behind them it seems (to us) absolutely
ridiculous to understand why anybody would want to use them, but to the people living in that time
ALL of thse inventions were HUGE.
ELECTROMECHANICAL
Now we are finally getting close to some technologies that resemble our modern-day technology.
The electromechanical age can be defined as the time between 1840 and 1940. These are the
beginnings of telecommunication. The telegraph was created in the early 1800s. Morse code was
created by Samuel Morse in 1835. The telephone (one of the most popular forms of communication
ever) was created by Alexander Graham Bell in 1876. The first radio developed by Guglielmo
Marconi in 1894. All of these were extremely crucial emerging technologies that led to big
advances in the information technology field.
ELECTRONIC
The electronic age is what we currently live in. It can be defined as the time between 1940 and
right now. The ENIAC was the first high-speed, digital computer capable of being reprogrammed
to solve a full range of computing problems. This computer was designed to be used by the U.S.
Army for artillery firing tables. This machine was even bigger than the Mark 1 taking up 680
square feet and weighing 30 tons - HUGE. It mainly used vacuum tubes to do its calculations.
There are 4 main sections of digital computing. The first was the era of vacuum tubes and punch
cards like the ENIAC and Mark 1. Rotating magnetic drums were used for internal storage. The
second generation replaced vacuum tubes with transistors, punch cards were replaced with
magnetic tape, and rotating magnetic drums were replaced by magnetic cores for internal storage.
ROLE OF IT IN TODAY’S WORLD
62. There seems to be a steady stream of books published on the role of Information Technology
within the business it supports. The role of IT is constantly evolving and has changed significantly
from the days when the IT organization was often referred to as “data processing.” Today, in many
industries, IT enables some businesses to differentiate themselves from their competitors. Those
companies that leverage IT for competitive advantage often differ from their competitors in two
ways with respect to their IT organizations: they view IT as a strategic business enabler instead of
as a cost center, and they work to maximize the efficiency of their IT operations so that they can
focus their resources on providing value to the business and respond to today’s environment of
rapidly changing business conditions.
Microsoft has developed a model, the Infrastructure Optimization model, and an initiative, the
Dynamic Systems Initiative, to assist IT organizations in becoming efficient business enablers for
their companies. If you aren’t familiar with the IO model or DSI, we highly recommend you
follow the above links and familiarize yourself with the information and resources provided within
these two programs. In Bruce’s January 26, 2009 post, he touched upon IT being a business
enabler. Bruce also discussed what we see as the four cornerstones that drive IT behavior:
● Cost
● Agility
● Quality of Service
● And Governance, Risk Management and Compliance (GRC).
Once you have a plan to optimize operations, you need to work with your business units to
understand their business needs and align IT as an enabler in meeting these needs. The companies
that, in this economic downturn, come out ahead of their competitors will be those companies that
don’t just tighten their belts to control costs, but actually invest in the business to offer new or
improved products and services. By optimizing IT, that enables the company to leverage the use of
IT in its investments. Obviously there are some business requirements that must be addressed, such
as GRC-related (Governance, Risk Management and Compliance) requirements. But there also
needs to be effort and investment to improve the quality of service and agility that IT provides the
63. business.
In summary, we feel that in today’s economy IT organizations should do the following:
● Optimize, optimize, optimize! Assess your operations to evaluate where you can implement
best practices to improve efficiency and free up resources to work on more strategic
activities. Talk to your Microsoft account team if you would like Microsoft’s assistance to
evaluate how you can optimize your infrastructure.
● Align IT with the business units within your company. Now more than ever it is important
that the business views IT as a strategic enabler for the business to distinguish itself from its
competitors. Review with the business executives the challenges and opportunities they
face to identify how IT can be leveraged to address these challenges and opportunities.
● Invest in IT. Those companies investing in IT during this economy are the companies that
will survive the downturn and then excel as the economy improves. And by optimizing
your infrastructure first, you have the opportunity to invest by shifting resources from
sustaining to strategic activities.
THE VALUE OF IT
NEED
● Education is a life long process therefore anytime anywhere access to it is the need
● Information explosion is an ever increasing phenomena therefore there is need to get access to
this information
● Education should meet the needs of variety of learners and therefore IT is important in meeting
this need
● It is a requirement of the society that the individuals should posses technological literacy
● We need to increase access and bring down the cost of education to meet the challenges of
64. illiteracy and poverty-IT is the answer
IMPORTANCE
● access to variety of learning resources
● immediacy to information
● anytime learning
● anywhere learning
● collaborative learning
● multimedia approach to education
● authentic and up to date information
● access to online libraries
● teaching of different subjects made interesting
● educational data storage
● distance education
IT AS AN ENABLER OF BUSINESS
Let’s start with my basic opinion: Information Technology [IT] is not the business, it is an enabler.
That being said, there are businesses’ where Information Technology is the prime area of the
business (Google, Microsoft, Sun, SunGard, etc), but the business process is different for each –
and the intellectual property is what is valuable.
65. Intellectual Property [IP] is what a business owns (copyrights, patents, etc.) that makes it valuable.
We in IT are not commonly aware of the IP of our business – so we are not always aware of what
drives or makes up the business.
By enabling the business, I am noting that the IT strategy, architecture and projects should be
dictated by the business strategy, architecture and programs. I have to often seen a disconnect
between these or that the IT strategy is driven by an IT project.
It is also my opinion that IT is perceived as not providing value to the organization. Why is this?
Industry critics have noted that:
● Inhibitor to corporate progress – IT systems cannot be changed fast enough to meet market
demands, seize opportunity or comply with a new requirement.
● Weak alignment between IT and business strategy – marked by an intractable language
barrier.
● Not strategically aligned – IT does not know or follow corporate strategy.
● IT is almost never the source of innovations.
Harris Interactive recently polled 23,000 U.S. employees in key industries and functional areas and
found that:
● Only 37% said they have a clear understanding of what their organization is trying to
achieve and why
● Only one in five was enthusiastic about their team and the organization’s / corporation’s
goals
● Only one in five said they have a clear “line of sight” between their tasks and their team and
66. organization’s goals
● Only 15% felt that their organization fully enables them to execute key goals
● Only 20% fully trusted the organization they work for
If a football team had these players on the field, the following would result:
● Only 4 of the 11 players on the field would know which goal is theirs
● Only 2 of the 11 would care
● Only 2 of the 11 would know what position they play and what they are supposed to do
● 9 players out of 11 would, in some way, be competing against their own team rather than
the opponent
CIO’s today realize that IT provides an increasingly vital role in the delivery of business processes
– including internet orders, business intelligence, applications integration (including master data
management and customer data integration), data governance, and project management to name a
few. The alignment of IT with the business happens with a common language implemented using
architecture models (in this authors opinion).
IT IMPACT ON BUSINESS OPERATIONS
Information Technology is essentially a wide and varied field. In fact, it’s not farfetched to say that
Information Technology is practically involved in every aspect of one’s life. So it’s only natural
that something as ubiquitous as I.T. plays a major part in business.
But what exactly is the impact of Information Technology on business?
First off, I.T. affects how businesses go about with their usual routine. For instance: the technology
allows companies to go paperless, depending only on digital databases to store important data.
Many pundits see this as a risk; isn’t digital data flimsy and unreliable, they ask. But the shift offers
67. several benefits as well—including reduction in operational cost, since the business no longer has
to buy or rent space or equipment just to store data.
Information Technology also affects the accuracy of business operations. When a company uses a
computerized accounting system instead of relying on a real live accountant, they eliminate (or, at
the very least, significantly reduce) human error. And because such systems allow for faster
operations, the company’s workers can concentrate on more pressing tasks.
Of course, I.T. also allows companies to communicate easily regardless of distance. Several years
before advancements in Information Technology, companies rely on messengers and snail mail to
relay information to other institutions and individuals. Today, communicating with another party is
as easy as a click of a button—thanks to email and internet messaging, among many other similar
tools.
These examples illustrate that the impact of information technology on business includes lowered
business costs and increase in business productivity.
But the most important impact of Information Technology on business lies on how it has changed
the marketplace from geographically-based to global. I.T. permits businesses to take their
operations into a worldwide scale thanks to applications that allows them to set up a store online.
Simply put, Information Technology has changed the business landscape due to its wide and varied
scope. Of course, these changes are for the better.
68. Bibliography
Sites Referred:
● edugree.teri.resi.in/explore/renew/ralegan.html
● en.wikipedia.org
● www.bhtpl.com
● kalyan-city.blogspot.com
● www.sukat.com
● www.uceindia.com
● www.sharetipsinfo.com
● business.mapsofindia.com
● www.investopedia.com
Books referred:
● International Trade Theory and Policy
by Steven M. Suranovic
● Production and Operations Management
By K.C. Arora
● Management of financial services
By B.S.Bhatia,G.S.Batra.