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Summer training in Hero Exports


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Export Business to United Nations

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Summer training in Hero Exports

  2. 2. PART- A
  3. 3. INTRODUCTION <ul><li>The Indian Cycle Industry </li></ul><ul><li>Bicycle was seen in India in the year 1890 </li></ul><ul><li>Import of cycles, however, started in 1905 </li></ul><ul><li>In 1890 selling price of an imported bicycle was around Rs. 45/-; </li></ul><ul><li>In 1919, five persons in Punjab imported cycles and used them on the mall, Shimla </li></ul>
  4. 4. THE HERO GROUP <ul><li>“ Hero”, the brand name symbolizing the steely ambition of the Munjal brothers, came into being in the year 1956 </li></ul><ul><li>Hero, a name synonymous with two wheelers in India is today a multi-unit, multi-product, geographically diversified Group of companies </li></ul><ul><li>The Hero Group philosophy is: “to provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity” </li></ul>
  5. 5. THE HERO GROUP (Cont…) <ul><li>Hero is the first company to have mastered the art of the just-in-time inventory principle </li></ul><ul><li>“ Engineering Satisfaction” is the prime motive of the Hero Group </li></ul><ul><li>Adopt faster technology and create quality driven products to the utmost satisfaction of customers, partners, dealers and vendors </li></ul>
  6. 6. The Mission Statement <ul><li>&quot;Its our mission to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities. &quot; </li></ul>
  7. 7. The Vision <ul><li>&quot;We, at the Hero Group are continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance, and price aspirations of the customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the group to excellence in everything we do.&quot; </li></ul>
  8. 8. Achievements <ul><li>Boston Consulting Group has ranked Hero Group as one of the top ten Business Houses on Economic value, in India. </li></ul><ul><li>Group Chairman, Mr Brijmohan Lall Munjal received the &quot;Ernst & Young Entrepreneur of the Year&quot; award for 2001 </li></ul><ul><li>Hero Honda Motors was ranked 3rd amongst top Indian companies Review 2000 - Asia's leading companies award (2004) by Far Eastern Economic Review </li></ul>
  9. 9. Achievements (Cont..) <ul><li>Hero Honda Motors is the World's largest manufacturer of two-wheelers with annual sales volume of over 5.0 million motorcycles </li></ul><ul><li>Honda Motors has been awarded the highest rating for Corporate Governance (2003) by CRISIL </li></ul><ul><li>Hero Cycles Limited is a Guinness Book Record holder since 1986 </li></ul>
  10. 10. HERO GROUP COMPANIES <ul><li>Hero Cycles Limited </li></ul><ul><li>Hero Honda Motors Limited </li></ul><ul><li>Hero Cold Rolling Division </li></ul><ul><li>Hero Motors Limited </li></ul><ul><li>Hero Exports </li></ul><ul><li>Majestic Auto Limited </li></ul><ul><li>Rockman Cycle Industries </li></ul><ul><li>Highway Cycle Industries </li></ul><ul><li>Sunbeam Auto Limited </li></ul>
  11. 11. HERO GROUP COMPANIES (Cont…) <ul><li>Munjal Auto Industries Limited </li></ul><ul><li>Munjal Showa Limited </li></ul><ul><li>Munjal Castings </li></ul><ul><li>Munjal Auto Components </li></ul><ul><li>Hero Global Design </li></ul><ul><li>Hero Corporate Services Limited </li></ul><ul><li>Hero ITES </li></ul><ul><li>Hero Mind mine </li></ul><ul><li>Hero Soft </li></ul><ul><li>Munjal e-systems </li></ul><ul><li>Easy Bill Limited. </li></ul>
  12. 12. Products <ul><li>Motor Cycles </li></ul><ul><li>Health Equipment </li></ul><ul><li>Bicycles </li></ul><ul><ul><li>MOUNTAIN / ATB SEGMENT </li></ul></ul><ul><ul><li>RACER SEGMENT </li></ul></ul><ul><ul><li>CITY BIKE SEGMENT </li></ul></ul><ul><ul><li>CHILDREN SEGMENT </li></ul></ul><ul><ul><li>ROADSTER SEGMENT </li></ul></ul><ul><ul><li>LADIES SEGMENT </li></ul></ul>
  13. 13. Products (Cont…) <ul><li>OTHERS </li></ul><ul><li>HERO SMART </li></ul><ul><li>HERO SHAKTI </li></ul><ul><li>HERO EZEE SX </li></ul><ul><li>HERO PUCH </li></ul><ul><li>HERO WINNER </li></ul><ul><li>HERO TURBO </li></ul><ul><li>HERO ENVOY </li></ul><ul><li>HERO WHEELIE </li></ul>
  14. 14. Products (Cont…) <ul><li>HERO Automotive Parts </li></ul>
  15. 15. Marketing Strategy <ul><li>3,500 bicycle dealers, 350 dealers for mopeds and 225 franchise holders for motorcycles </li></ul><ul><li>A nation-wide dealer network comprising of over 5,000 outlets </li></ul><ul><li>The manufacturing units have a separate department to handle dealer complaints and problems and the first response is always given in 24 hours </li></ul>
  16. 16. Chairman <ul><li>Dr.Brijmohan Lall Munjal, patriarch of the US$ 5.80 billion Hero Group was born in 1923 </li></ul><ul><li>Dr Lall led a small time manufacturer of 60 cycles a day </li></ul><ul><li>He was adjudged Businessman of the Year in 1994 by a leading business magazine - Business India </li></ul><ul><li>In 1995, Dr.Lall received the National Award for outstanding contribution to the Development of Indian Small Scale Industry. (NSIC award - presented by the President of India) </li></ul>
  17. 17. Chairman (Cont…) <ul><li>In 1999, the Business Baron recognized him as the &quot;Most Admired CEO.“ </li></ul><ul><li>All India Management Association conferred him with the Lifetime Achievement award for &quot;Managment&quot;(2003) </li></ul><ul><li>The Government Of India honoured him with the prestigious &quot; Padma Bhushan“ in March 2005 for his contribution to Trade and Industry </li></ul>
  18. 18. TURNOVER <ul><li>Today, Hero Group comprises of 22 companies, 300 ancillary suppliers, deep market penetration with over 5,000 outlets, 23,000 + employee and has a turnover of US$ 5.80 billion (FY 2009). </li></ul>
  19. 19. HERO Exports <ul><li>Hero Group's foray into the overseas markets in 1963 pioneered Indian exports in the bicycle segment </li></ul><ul><li>Initial exports were restricted to Africa and the Middle East </li></ul><ul><li>Today more than 50 percent of the exports from Hero Cycles Limited meet the demands of sophisticated markets in Europe and America </li></ul><ul><li>The unit is designed to match international standards and is an Export Oriented Unit (EOU) </li></ul>
  20. 20. HERO Exports (Cont…) <ul><li>Hero Puch mini-motorcycles can also be seen in Paraguay, Mexico, Argentina, Turkey and Holland </li></ul><ul><li>Munjal Showa Limited is one of the largest suppliers of shock absorbers </li></ul><ul><li>In 1993 Hero Exports was established as the International Trading Division for Group and non-Group products </li></ul><ul><li>Latest diversification for the Group in the export market is in the area of Software exports </li></ul>
  21. 21. Export Markets <ul><li>There are a total of 90 countries where Hero Exports is Exporting to </li></ul><ul><li>Afghanistan, Argentina, Bahrain, Bangladesh, Belgium, Brazil, China, Congo, Egypt, France, Germany, Greece, Hungary, Iraq, Iran, Italy, Ireland, Jordan, Kenya, Kuwait, Kyrgyzstan, Malawi, Mexico, Mozambique, Myanmar, Nigeria, Peru, Poland, Portugal, Russian Federation, Saudi Arabia, Slovakia, South Africa </li></ul><ul><li>Africa, Europe, Asia to name a few </li></ul>
  22. 22. Turnover <ul><li>Hero Exports is a firm with a turnover of around 230 Crores In bicycle and parts </li></ul>
  23. 23. Departments In Hero Exports <ul><li>Marketing Department </li></ul><ul><li>Commercial Department </li></ul><ul><ul><li>Documentation Department </li></ul></ul><ul><ul><li>Shipping Department </li></ul></ul><ul><li>Procurement Department </li></ul><ul><li>Finance Department </li></ul><ul><li>Import Department </li></ul><ul><li>Packing Department </li></ul><ul><li>Stores Department </li></ul><ul><li>Human Resource Department </li></ul>
  24. 24. SWOT ANALYSIS OF THE FIRM <ul><li>STRENGTHS </li></ul><ul><li>India’s biggest Export house </li></ul><ul><li>World’s largest cycle manufacturing company </li></ul><ul><li>Having deep penetration In domestic as well as International market </li></ul><ul><li>Excellent brand acceptability </li></ul><ul><li>Has been Recorded in Guinness book of world record for its production volume </li></ul><ul><li>OPPORTUNITIES </li></ul><ul><li>Excellent time to diversify due to excellent brand acceptability </li></ul><ul><li>If provided some support from Government they can compete from China also </li></ul><ul><li>Right time for expanding existing capacities </li></ul><ul><li>WEAKNESS No time for diversification </li></ul><ul><li>Unable to fulfill demand of some regions </li></ul><ul><li>THREATS </li></ul><ul><li>Dumping of materials by China in different parts of the world </li></ul><ul><li>More players entering into this segment </li></ul>
  25. 25. RATIO ANALYSIS <ul><li>Ratio Analysis is one of the most powerful tools of financial analysis. It is used as a device to analyze and interpret the financial health of an enterprise </li></ul><ul><li>Liquidity ratios </li></ul><ul><ul><li>Current ratio </li></ul></ul><ul><ul><li>Liquid ratio </li></ul></ul><ul><ul><li>Absolute liquid ratio </li></ul></ul>
  26. 26. Current Ratio <ul><li>Current Ratio is the relationship between the current assets and current liabilities </li></ul><ul><li>Current Ratios- Current Assets/ </li></ul><ul><li> Current Liabilities </li></ul>
  27. 27. (Table 1.1) Interpretation - From the above table it is clear that the company has been investing more in the current assets than the current liabilities. An insight in to the balance sheet of the company shows that major portion of current assets consists of sundry debtors and cash and bank balance. Current Ratio has increased in year 2009 as compared to year 2008 which has further increased as compared to the year 2007. The ratio of year 2009 is near to the thumb rule of 2:1, this indicates that liquidity position is good and company’s commitment to meet its short-term obligation in time. Year 2007 2008 2009 Current Assets 3,514,169,012 4,078,120,805 4,500,174,202 Current Liabilities 2,174,339,220 2,117,280,044 1,897,907,454 Current Ratio 1.61 1.92 2.37
  28. 28. (Chart-1.1)
  29. 29. Liquid Ratio/ Quick Ratio/ Acid Test Ratio- <ul><li>It is a more rigorous test of liquidity then current ratio. The term ‘liquidity’ refers to the ability of a firm to pay its short-term obligations as and when they become due. It is between the liquid assets and current liabilities. </li></ul><ul><li>Liquid Ratio- Liquid Assets </li></ul><ul><li>Current Liabilities </li></ul>
  30. 30. (Table-1.2) Interpretation- The quick ratio of the company is exceeding the rule of thumb of 1:1, indicating that the company is highly liquid so as to fulfils current liabilities well in time. Company’s current assets involved large amount of debtors in it. Year 2007 2008 2009 Liquid Assets 2,078,507,978 2,971,184,464 3,722,592,925 Current Liabilities 2,174,339,220 2,117,280,044 1,897,907,454 Liquid Ratio 1.24 1.40 1.96
  31. 31. (Chart-1.2)
  32. 32. Cash/ Absolute Liquid Ratio Cash ratio is the relationship between the absolute liquid assets and current liabilities. Debtors and bills receivables are more liquid than inventories. But cash ratio involves only absolute liquid assets. Absolute liquid assets involve only cash and short-term securities. <ul><li>Cash Ratio- Absolute Liquid Assets </li></ul><ul><li>Current Liabilities </li></ul>
  33. 33. (Tables-1.3) Year 2007 2008 2009 Absolute Liquid Assets 22,134,657 151,600,603 1,52,820,715 Current Liabilities 2,174,339,220 2,117,280,044 1,897,907,454 Cash Ratios 0.0101 0.0716 0.0805
  34. 34. (Chart-1.3)
  35. 35. Debt-Equity Ratio <ul><li> It shows the relationship between external and internal equities & it is calculated to measure the claim of outsiders and owners against company’s assets. </li></ul><ul><li>The outsider’s funds include all debts / liabilities to outsiders, whether in form of debentures, bonds, mortgage or bills. The shareholders funds include equity + preference share capital included capital reserve, revenue reserve and reserves representing accumulated profits and surpluses. </li></ul><ul><li>Debt Equity Ratio = Long term Debts / Shareholders Funds * 100 </li></ul>
  36. 36. (Table-1.4) Interpretation- There has been a slight decrease in this ratio due to the fact that now the company is relying more on own funds then on outsider’s funds. As such ratio has been improved and that amount is blocked in inventories. Years 2007 2008 2009 Long Term Debts 1,732,223,697 2,538,217,041 2,415,142,595 Shareholder’s Funds 5,364,231,022 5,992,951,800 6,526,360,604 Debt Equity Ratio 32.29 42.35 37.006
  37. 37. (Chart 1.4)
  38. 38. PART-B
  39. 39. UNITED NATIONS - AN INTRODUCTION <ul><li>The United Nations is an international organization founded in 1945 after the Second World War by 51 countries </li></ul><ul><li>Aims at commitment to maintaining international peace and security, developing friendly relations among nations and promoting social progress, better living standards and human rights </li></ul>
  40. 40. UN System of Organizations <ul><li>The &quot;United Nations System of Organizations&quot; covers a wide variety of organizational units (centres, agencies, organizations, commissions, pro-grammes, etc.) with different institutional and functional structures </li></ul><ul><li>The estimated value of business opportunities emanating from the United Nations system and the Development Banks exceeds US$30 billion annually </li></ul>
  41. 41. UN Flag and Emblem United Nations emblem was approved on 7 December 1946 Symbolism Olive branches symbolize peace
  42. 42. FACTS <ul><li>Membership : 192 Member States </li></ul><ul><li>Established : 24 October 1945 </li></ul><ul><li>Secretariat staffing as of 30 2009 (Secretary-General's report &quot;Composition of the Secretariat&quot; : about 40,000 </li></ul><ul><li>Budget for 2008-2009: USD 4.171 billion (peacekeeping operations not included) </li></ul><ul><li>Official languages: Arabic, Chinese, English, French, Russian, Spanish. UN Observances - The first day approved by the UN General Assembly was United Nations Day, 24 October (by resolution 168 (II) of 31 October 1947). </li></ul>
  43. 43. Main Bodies Of UN <ul><li>General Assembly </li></ul><ul><li>Security Council </li></ul><ul><li>Economic & Social Council </li></ul><ul><li>Trusteeship Council </li></ul><ul><li>International Court of Justice </li></ul><ul><li>Secretariat </li></ul>
  44. 44. Quick Facts <ul><li>General Assembly: 192 Member States </li></ul><ul><li>Security Council: 5 permanent members and 10 non-permanent </li></ul><ul><li>Economic and Social Council: 54 members </li></ul><ul><li>International Court of Justice: 15 judges </li></ul>
  45. 45. Charter of the United Nations <ul><li>UN Charter has an Introductory Note , Preamble and Nineteen Chapters . It consists of 111 Articles </li></ul><ul><li>The Charter of the United Nations was signed on 26 June 1945, in San Francisco </li></ul><ul><li>Came into force on 24 October 1945 </li></ul>
  46. 46. United Nations Global Marketplace (UNGM) <ul><li>UNGM = United Nations Global Marketplace </li></ul><ul><li>UNGM = the global portal to the UN procurement system </li></ul><ul><li>UNGM brings together UN procurement staff and the supplier community </li></ul><ul><li>UNGM simplifies the registration process for vendors willing to supply the UN </li></ul><ul><li>UNGM provides one common supplier database </li></ul><ul><li>UNGM enhances transparency and increases harmonization of procurement practices </li></ul>
  47. 47. Reasons to register a company in UNGM <ul><li>UNGM = a springboard to introduce goods and services to UN agencies by only completing one common Application Form </li></ul><ul><li>More than 2 200 UN procurement staff use this database to source new suppliers. </li></ul><ul><li>Access business opportunities with the UN published by 33 different UN entities </li></ul>
  48. 48. Facts & Figures: the UNGM in 2009 <ul><li>18 UN agencies maintain a roster on UNGM = 95% of the total UN procurement spend </li></ul><ul><li>On average, 1 000 new companies registrations every month </li></ul><ul><li>Over 12 740 reliable vendors with a complete profile have been accepted by at least one agency on UNGM </li></ul><ul><li>Over 2 200 UN procurement staff use the UNGM to source suppliers and advertise their procurement needs </li></ul><ul><li>More than 10 Procurement Notices are posted every day </li></ul><ul><li>Av. 225 active Procurement Notices at any one time on UNGM </li></ul><ul><li>33 UN agencies and entities advertise their needs on UNGM </li></ul><ul><li>Global Market of UNGM is $4.6 Billion approximately. </li></ul>
  49. 49. Major goods and services procured by the UN are <ul><li>GOODS </li></ul><ul><ul><li>FOOD </li></ul></ul><ul><ul><li>PHARMACEUTICAL SUPPLIES </li></ul></ul><ul><ul><li>MEDICAL EQUIPMENT </li></ul></ul><ul><ul><li>VEHICLES </li></ul></ul><ul><ul><li>TELECOMMUNICATION EQUIPMENT </li></ul></ul><ul><ul><li>COMPUTERS AND SOFTWARE </li></ul></ul><ul><ul><li>SHELTER AND HOUSING </li></ul></ul><ul><ul><li>WATER SUPPLY EQUIPMENT </li></ul></ul><ul><ul><li>LABORTORY EQUIPMENT </li></ul></ul><ul><ul><li>CHEMICALS </li></ul></ul><ul><ul><li>AGRICULTURAL INPUTS </li></ul></ul><ul><ul><li>DOMESTIC / HOUSEHOLD ITEMS </li></ul></ul>
  50. 50. (Cont..) <ul><li>SERVICES </li></ul><ul><ul><li>SECURITY SERVICES </li></ul></ul><ul><ul><li>OUTSOURCES PERSONNEL SERVICES </li></ul></ul><ul><ul><li>ENGINEERING SERVICES </li></ul></ul><ul><ul><li>LEASING OR RENTAL SERVICES </li></ul></ul><ul><ul><li>GENERAL MANAGEMENT SERVICES </li></ul></ul><ul><ul><li>FREIGHT SERVICES </li></ul></ul><ul><ul><li>PRINTING / PRINTING SERVICES </li></ul></ul><ul><ul><li>CONSULTANCY SERVICES </li></ul></ul><ul><ul><li>TELECOMMUNICATION SERVICES </li></ul></ul><ul><ul><li>CONSTRUCTION </li></ul></ul>
  51. 51. LIST OF 19 PROCUREMENT AGENCIES <ul><li>International Atomic Energy Agency (IAEA) </li></ul><ul><li>The International Fund for Agricultural Development (IFAD) </li></ul><ul><li>International Labour Organization (ILO) </li></ul><ul><li>International Trade Centre UNCTAD/WTO (ITC) </li></ul><ul><li>International Telecommunication Union (ITU) </li></ul><ul><li>United Nations Development Programme (UNDP) </li></ul><ul><li>United Nations Educational, Scientific and Cultural Organization (UNESCO) </li></ul><ul><li>United Nations Population Fund (UNFPA) </li></ul><ul><li>United Nations High Commissioner for Refugees (UNHCR) </li></ul><ul><li>United Nations Children's Fund (UNICEF) </li></ul>
  52. 52. <ul><li>United Nations Industrial Development Organization (UNIDO) </li></ul><ul><li>United Nations Office for Project Services (UNOPS) </li></ul><ul><li>United Nations Procurement Division (UN/PD) </li></ul><ul><li>United Nations Office at Vienna (UNOV) </li></ul><ul><li>United Nations Economic Commission for Africa (UNECA) </li></ul><ul><li>United Nations Relief and Works Agency (UNRWA) </li></ul><ul><li>World Food Programme (WFP) </li></ul><ul><li>World Intellectual Property Organization (WIPO) </li></ul><ul><li>Food And Agricultural Organization (FAO) </li></ul>
  53. 53. What is sustainable procurement? <ul><li>Economic considerations </li></ul><ul><li>Environmental aspects, i.e. green procurement </li></ul><ul><li>Social aspects </li></ul>
  54. 54. PROCEDURE TO REGISTER A COMPANY IN UNGM <ul><li>There are 13 Steps to be followed during the registration process </li></ul><ul><ul><li>Open the website </li></ul></ul><ul><ul><li>Click new Supplier Registration . Fill In the details and submit the form </li></ul></ul><ul><ul><li>Login details will be sent by e-mail </li></ul></ul><ul><ul><li>At your e-mail click at the login details and login </li></ul></ul><ul><ul><li>Registration Overview will come showing the current status with different 19 Agencies </li></ul></ul><ul><ul><li>All Steps must show ok before submission </li></ul></ul>
  55. 55. <ul><li>Asks the Supplier to enter his Information </li></ul><ul><li>Asks the Supplier to enter his mailing address </li></ul><ul><li>Asks the Supplier to enter his organization’s contact information </li></ul><ul><li>Asks the Supplier to enter his financial information . Credit rating as well as financial year information has to be entered </li></ul><ul><li>Asks the Supplier to enter his bank information </li></ul><ul><li>Asks the Supplier to enter his General Company Information as well as all the languages they know </li></ul>
  56. 56. <ul><li>Asks the Supplier to enter his To enter subsidiaries, associates and/or overseas reps. And To enter countries with international offices/representation </li></ul><ul><li>Asks the Supplier to enter Details of quality assurance certifications to enter with Certifications </li></ul><ul><li>Asks the Supplier to provide information regarding exports, contracts and disputes with the UN . The year of export, plus the country exported to, are entered by clicking on “Add” . Year of contract award, UN agency and volume are input. UNCCS codes for the goods/services provided are entered </li></ul><ul><li>Asks the Supplier to enter details of memberships to trade/professional Organizations . One international and one national membership can be included </li></ul>
  57. 57. <ul><li>Asks the Supplier to select a particular Agency to which he wants to e associated with Some of the may have selected agencies may have additional questions that need to be responded to. </li></ul><ul><li>Asks the Supplier to enter the products/services which they are in a position to supply must be assigned UNCCS codes </li></ul><ul><li>After completing the 13 step procedure Registration Overview ox appears ad all items are “OK”, so the registration is ready for submission </li></ul><ul><li>A box will appear Confirming that registration has been submitted </li></ul>
  58. 58. UNCCS codes <ul><li>The United Nations Common Coding System (UNCCS) </li></ul><ul><li>A UNCCS code is a code describing a certain product or service UN Procurement </li></ul><ul><li>Officers use those UNCCS Codes as a search criteria to source potential suppliers within the UNGM database </li></ul><ul><li>It is vitally important that you select the most accurate UNCCS Codes to describe your goods/services </li></ul>
  59. 59. UNCCS Codes structure <ul><li>The UNCCS provides a six digit numerical code for about 20,000 specific goods and services </li></ul><ul><li>X 00000 the first digit identifies the relevant section </li></ul><ul><li>XX 0000 the first and second digits, together, indicate the division </li></ul><ul><li>XXX 000 the first three digits identify the group </li></ul><ul><li>XXXX 00 the first four digits indicate the class </li></ul><ul><li>XXXXXX the final digits indicate the subclass or item </li></ul><ul><ul><li>UNCCS codes from: 000000-499999 are for GOODS </li></ul></ul><ul><ul><li>And from: 500000-999999 for SERVICES </li></ul></ul>
  60. 61. GENERAL PRINCIPLES <ul><li>Advance UN goals </li></ul><ul><li>Shared values and principles </li></ul><ul><li>Clear delineation of responsibilities and roles </li></ul><ul><li>Maintain integrity and independence </li></ul><ul><li>No unfair advantage </li></ul><ul><li>Transparency </li></ul>
  61. 62. Method of Solicitation <ul><li>Informal Method of Solicitation </li></ul><ul><ul><li>Request for Quotation (RFQ) </li></ul></ul><ul><li>Formal Method of Solicitation </li></ul><ul><ul><li>Invitation to Bid (ITB) </li></ul></ul><ul><ul><li>Request for Proposal (RFP) </li></ul></ul><ul><ul><li>Expression of Interest </li></ul></ul>
  63. 64. GENERAL CONDITIONS OF CONTRACTAS PER UNITED NATIONS <ul><li>PURCHASE OF GOODS </li></ul><ul><ul><li>DELIVERY OF GOODS </li></ul></ul><ul><ul><li>INSPECTION OF THE GOODS </li></ul></ul><ul><ul><li>PACKAGING OF THE GOODS </li></ul></ul><ul><ul><li>TRANSPORTATION & FREIGHT </li></ul></ul><ul><ul><li>WARRANTIES </li></ul></ul><ul><ul><li>ACCEPTANCE OF GOODS </li></ul></ul><ul><ul><li>REJECTION OF GOODS </li></ul></ul>
  65. 66. GENERAL CONDITIONS OF CONTRACTAS PER UNITED NATIONS <ul><li>TERMINATION </li></ul><ul><li>SETTLEMENT OF DISPUTES </li></ul><ul><ul><li>AMICABLE SETTLEMENT </li></ul></ul><ul><ul><li>ARBITRATION </li></ul></ul><ul><li>TAX EXEMPTION </li></ul><ul><li>AUDITS AND INVESTIGATIONS </li></ul><ul><li>CHILD LABOUR </li></ul><ul><li>MINES </li></ul><ul><li>SEXUAL EXPLOITATION </li></ul>
  66. 67. Title <ul><li>“ Market Research on Export Business to United Nations” </li></ul>
  67. 68. OBJECTIVES OF THE STUDY <ul><li>To study the procurement agencies through which business is done with UN. </li></ul><ul><li>To study the Procedure to register a company in UNGM. </li></ul><ul><li>To study the main clauses to do business with UN. </li></ul><ul><li>To study the GENERAL CONDITIONS OF CONTRACT of UN. </li></ul><ul><li>To study the Problems Faced by the Suppliers of UN already Exporting to UN </li></ul>
  68. 69. RESEARCH METHODOLOGY <ul><li>“ Research is the systematic design, collection, analysis and reporting of data and filling relevant solution to a specific marketing situation or problem.” </li></ul>
  69. 70. <ul><li>Research Design </li></ul><ul><li>The Project is based on Descriptive Research Design </li></ul><ul><li>Sampling Plan </li></ul><ul><ul><li>Universe: All those Suppliers doing Business with UN </li></ul></ul><ul><ul><li>Population: All those Suppliers doing Business with UN in INDIA </li></ul></ul><ul><ul><li>Sampling units: Any Particular supplier doing Business with UN in INDIA </li></ul></ul>
  70. 71. <ul><li>Sample size </li></ul><ul><li>The sample size for the study is- 10 Suppliers supplying to UN </li></ul><ul><li>Sampling procedure </li></ul><ul><li>The sampling procedure opted for the study was Convenience Sampling. Convenience of time and links </li></ul>
  71. 72. Data Collection <ul><li>Primary source : Data was collected by Primary Data by conducting surveys through Schedules, which were filled through interviews conducted telephonically which include close-ended Questions </li></ul><ul><li>Secondary sources </li></ul><ul><li>Data has been collected by secondary data through Magazines, Web sites, Newspapers and most importantly Internet </li></ul>
  72. 73. LIMITATIONS <ul><li>Due to serious time constraints, the study was limited to the suppliers of UN in India only. </li></ul><ul><li>Another major limitation, which affected the study, was the problem of sample size which is limited only to 10 </li></ul><ul><li>It was hard for me to find links of Suppliers supplying to UN and my study was fully dependent upon the links of my major Advisor In Hero Exports </li></ul><ul><li>Balance Sheet of Hero Exports was not provided so ratios were calculated on the Balance Sheet of Hero Cycles Ltd. </li></ul><ul><li>The report is based on the information provided by Suppliers as per the problems they have faced in the past and no company wants to reveal their problems to the fullest extent, so it is possible that discrepancy might have occurred owing to the quality of information provided </li></ul>
  73. 74. Analysis of Data And Interpretation
  74. 75. Number of times done business with UN in the last five years N =10 No. of resp Table 5.1 Once 0 Twice 0 Thrice 2 Many times 8 Never 0
  75. 76. Chart 5.1
  76. 77. Interested in doing business with UN because N =10 No. of resp Table 5.2 UN pays me in time 3 UN gives me handsome margins 3 You feel the quality of the goods and services you are producing 1 All the above 3 None of the above 0
  77. 78. Chart 5.2
  78. 79. UN has immense potential as a exports of goods and services from India N =10 No. of resp Table 5.3 Mostly disagree 0 Disagree 0 Neutral 4 Agree 4 Mostly agree 2
  79. 80. The terms and conditions laid down by UN are too strict/ tuff. N =10 No. of resp Table 5.4 Yes 10 No 0
  80. 81. Chart 5.3
  81. 82. UN releases payment N =10 No. of resp %age Table 5.5 Against receipt of material 1 10 Against receipt of documents 4 40 After 30-45 days of receipt of acceptance 5 50 After 50-60 days of receipt of acceptance 0 0
  82. 83. UN ever returned your goods on not matching the quality standards. N =10 No. of resp Table 5.6 Yes 2 No 8
  83. 84. Chart 5.4
  84. 85. UN accept the goods if there is a slight difference in the quality standards N =10 No. of resp Table 5.7 Always 0 Usually 0 Never 6 Only when quality standards match. 4
  85. 86. Chart 5.5
  86. 87. Sourcing of exact material is generally required (in terms of specification) while Exporting to UN N =10 No. of resp % age Table 5.8 With Exact Specification 10 100 Without Exact Specification 0 0 A minute Difference is allowed 0 0 Large difference is allowed 0 0
  87. 88. Sourcing of exact material is generally required (in terms of Quantity) while Exporting to UN N =10 No. of resp % age Table 5.9 With Exact Specification 7 70 Without Exact Specification 0 0 A minute Difference is allowed 3 30 Large difference is allowed 0 0
  88. 89. The material supplied to the UN does not match the Exact Specification of UN N =10 Chart 5.6
  89. 90. UN terms for supply of goods and services N =10 No. of resp % age Table 5.10 Ex-Works 0 0 FOB 0 0 CIF 7 70 DDU 3 30
  90. 91. Materials does not reach the site specified by UN at exact time at per stated in the Terms and conditions of the Contract N =10 Table 5.11 No. of resp Materials are rejected. 2 UN accepts the materials but only when it reaches the ports and that too on special permission 6 UN accepts the material if the material is in the nearby Country or ship and is going to reach the port in a while 0 UN accepts the material if it has reached the ports only 2
  91. 92. Chart 5.7
  92. 93. UN requires the Inspection of materials N =10 No. of resp % age Table 5.12 Before the materials are supplied 0 0 After the materials are supplied 3 30 Both before and after the materials are supplied 7 70 No inspection is required. 0 0
  93. 94. The contractor is responsible even he is bankrupt to bear cost of all legal proceedings N =10 No. of resp % age Table 5.13 Yes 10 100 No 0 0
  94. 95. Companies dealing with UN are exempted from all direct taxes N =10 No. of resp % age Table 5.14 Yes 10 100 No 0 0
  95. 96. RESULTS AND FINDINGS <ul><li>All parameters whether it is payment terms or feeling assured about the quality of goods and services being produced or getting handsome margins all contribute to the suppliers for doing business with UN </li></ul><ul><li>Most of the suppliers agree that UN is a better place to serve off. </li></ul><ul><li>Terms and conditions laid by UN to do business with it are Strict/tuff </li></ul><ul><li>Payment terms of UN are very clear as it pays its suppliers either Against receipt of documents or releases payment After 30-45 days of receipt of acceptance </li></ul>
  96. 97. RESULTS AND FINDINGS (Cont…) <ul><li>While one is dealing with UN one has to be very particular about the Quality of goods they are supplying </li></ul><ul><li>If material supplied to the UN does not match the Exact Specification of UN than either the order is cancelled or new order has to e made all over again and that too on the expense of the supplier solely </li></ul><ul><li>The incoterms for supply of goods to UN are CIF and DDU </li></ul><ul><li>UN accepts the materials on special permission Only and only on genuine reasons otherwise the Materials are rejected. </li></ul><ul><li>Both pre and post inspection should be done to avoid any discrepancies </li></ul><ul><li>Even the supplier is bankrupt he to bear cost of all legal proceedings and is liable to compensate for all costs if UN falls in any legal suit </li></ul><ul><li>No taxes have to be paid for all business done with UN </li></ul>
  97. 98. LIMITATIONS WHILE DOING BUSINESS WITH UN <ul><li>There are a number of clauses which have to be followed by business organization. </li></ul><ul><li>Business has to done according to their guidelines and one has to agree to all the Conditions of the contract. </li></ul><ul><li>Contractor can neither seek nor accept any instruction from outside UN regarding the Contract </li></ul><ul><li>For any transfer of any control or Subcontracting Contractor should have written approval from UN. </li></ul><ul><li>Entire destruction of , loss , damage to or destruction of goods should be borne by the Contractor </li></ul><ul><li>Packaging should be strictly done in accordance to the highest Standards specified by UN. </li></ul><ul><li>Contractor shall have no right to return of the packing material. </li></ul>
  98. 99. LIMITATIONS WHILE DOING BUSINESS WITH UN (Cont…) <ul><li>. </li></ul><ul><li>Contractor shall ensure that UN receives all necessary transport document in time. </li></ul><ul><li>If goods do not conform the quality standards then the contractor at his own risk has to replace the product , or reimburse UN The purchase price of the goods. </li></ul><ul><li>It is the responsibility of the contractor to save interest of the UN from all suits , losses , claims and proceedings. </li></ul><ul><li>Contractor has to pay for all loss and damages. </li></ul><ul><li>If contract is rendered unable under Force Majeure UN has sole discretion to cancel the contract and even consider the Contractor Permanently to perform any obligations. </li></ul>
  99. 100. LIMITATIONS WHILE DOING BUSINESS WITH UN (Cont…) <ul><li>On termination of any contract UN may not provide any justification. </li></ul><ul><li>Even after the contract is over UN can even after a period of two years can go for audits </li></ul><ul><li>UN may cancel a contract even if it finds that any personnel employed by the contractor or even relatives of the contractor Marries a person below 18 years of age or has any sexual activity. </li></ul><ul><li>Only after inspection after delivery UN accepts the goods. </li></ul>
  100. 101. SUGGESTIONS AND RECOMMENDATIONS <ul><li>Some unnecessary clauses should be omitted from the General Conditions Of The Contract </li></ul><ul><li>More Contractor Friendly Approach should be adopted </li></ul><ul><li>Financial Statement is optional in Online Registration which should be made Compulsory </li></ul><ul><li>Party have to patient enough to wait for more than 2 years for results to come </li></ul>
  101. 102. SUGGESTIONS AND RECOMMENDATIONS (Cont…) <ul><li>Must go through all the conditions of contract thoroughly and try to abide by them to the fullest </li></ul><ul><li>Must supply the Goods with Exact Specification either in terms of Quality or Quantity. </li></ul><ul><li>Needs to be very alert with the Tender notices & formats while filling up the form </li></ul><ul><li>Always ask for a sample of the material physically & don’t just rely on the photographs supplied by them. </li></ul>
  102. 103. CONCLUSION <ul><li>One should go for this business because : </li></ul><ul><li>It offers a large Margin </li></ul><ul><li>It will any how Prove that the company is supplying Quality Products and Services as without advertising also when the description appears in the balance sheet of the Company. It means that Company will get good business in the future also. </li></ul>
  103. 104. Thank You