Share khan

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Share khan

  1. 1. An industrial visit report On Prepared By MANIYAR BHAKTI R. (S.Y. B.B.A.) Academic Year: - 2006-07 Roll No.: - 33 Submitted To SAURASHTRA UNIVERSITY College Guided ByR.P.Bhalodiya College Miss. Kyati Pandya 1
  2. 2. Preface A thing can learn by experience cannot learn bytheory. Theory just shows direction towards our goals andhow to achieve those targets. But practical knowledgeteaches us to experience things. It may be possible thatwhat theory says might that what theory says might leadsto wrong decision, but if we experience that thingpractically, we will come to know that in reality such thinghappen in this way. Therefore all the time to have onlybookish knowledge is not important, but to have somepractical knowledge is also essential. I think that, that is why university has makecompulsory to prepare project report for students who arein B.B.A. In this regard, I took a visit of SHERKHANThis visit has enhanced my knowledge. I got a practicalexperience in this field. I learned many new things, whichmight not possible by reading various books. Hence, I have tried to cover all aspects of thisfirm and this project report includes as much informationas required. 2
  3. 3. acknowledgemen t This project report requires many things. I am thankful to Saurastra University that it has implemented such a nice practical work for the student of B.B.A. I would like to extend my gratitude towards- Mr.Narendra Tanna(Branch Manager) Mr.Vimal Rajyaguru(Asst.Branch Manager) Mr.Bhavesh Madhak(Business Development Executive) Mr.Deepak Chauhan. I especially thank to Mr. Dushyantsinh and Mr. Devendra who gave me great response, warm welcome and provided all details of SHAREKHAN. I also thank to our project guide Mr. Niraj Pandya who gave me support and essential information too. I would have to regret if I do not mentionname of my parents who are really source of my inspiration forme. I am also thankful to Manojbhai & all my classmates, asthey helped me at any time. 3
  4. 4. declaration I undersigned MANIYAR BHAKTI, a studentof S.Y.B.B.A. of R. P. Bhalodiya College of commerceand management, RAJKOT. Here by Declare that theproject work, presented in this report is my own and hasbeen carries out under the supervision of Ms. KhaytiPandya of R.P. Bhalodiya College, RAJKOT. This work has not been previously submittedto any other university for any examination.Date: -Place: - Signatory of the student 4
  5. 5. INDEXSr. No. CONTENTS PAGE NO. 1 Introduction to Sherkhan 2 Marketing Department 3 Finance Department 4 Human Resource Department 5 Operations Department 6 SWOT Analysis 7 Suggestions & Recommendations 8 Conclusion 9 Bibliography 5
  6. 6. Introduction to Sharekhan Sharekhan is an equities focused organization tracing itslineage to SSKI, a veteran equities solutions company withover 8 decades of experience in the Indian stock markets. If you experience our language, presentation style,content or for that matter the online trading facility, you’ll finda common thread; one that helps you make informed decisionsand simplifies investing in stocks. The common thread ofempowerment is what Sharekhan is all about. Sharekhan is also about focus. Sharekhan does notclaim expertise in too many things. Sharekhan’s expertise liesin stocks and that’s what he talks about with authority. So whenhe says that investing in stocks should not be confused withtrading in stocks or a portfolio-based strategy is better thanbetting on a single horse, it is something that is spoken withyears of focused learning and experience in the stock markets.And these beliefs are reflected in everything Sharekhan doesfor you! To sum up, Sharekhan brings to you a user-friendlyonline trading facility, coupled with a wealth of content thatwill help you stalk the right shares. 6
  7. 7. Those of you who feel comfortable dealing with a humanbeing and would rather visit a brick-and-mortar outlet than talkto a PC, you’d be glad to know that Sharekhan offers you thefacility to visit (or talk to) any of our share shops across thecountry. In fact Sharekhan runs India’s largest chain of shareshops with over hundred outlets in more than 80 cities! What’sa share shop? How do you locate a share shop in your city? To find the answers of these questions, you must visitSharekhan. In other words Sharekhan is a company thatprovides you an outstanding trading facility with a wide varietyof products and acts as an investment consultant to manageyour portfolio and secure a high rate of return on yourinvestments in the securities market. Basically, the company is a market leader in providingbroking services and has a top turnover in trading and the highturnover makes it the no. 1 in the market. The main differenceis the services that they provide to the investors who reallyneed it. the services are discussed in more detail in themarketing activities. The clients are managed with a friendlycorporate culture to give him more benefited investment ideasand motivate him whenever he needs. The company isproviding as many tips to the clients for more and more tradingideas and the manager helps each client to concentrate on a fewscripts so that he can manage the profit/lose. 7
  8. 8. In short, Sharekhan is currently having a good position inthe market with the highest no of transactions and also thehighest turnover (buying & selling) in India and a leader inproviding better services to the investors. Sharekhan, India’sleading stock broker is the retail arm of SSKI, and offers youdepository services and trade execution facilities for equities,derivatives and commodities backed with investment advicetempered by decades of broking experience. A research andanalysis team is constantly working to track performance andtrends. That’s why Sharekhan has the trading products whichare having one of the highest success rate in the industry.Sharekhan is having 180 share shops in 90 cities, the largestchain of retail share shops in India is of Sharekhan. In future, Sharekhan is planning to enter in Mutual funds,Insurance sector and banking sector to expand beyond themarket currently covered by it. And it has started MFs onpriority basis but wants to grow in it. 8
  9. 9. Mission Statement To provide the best Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous up-gradation with changing technology, while maintaining human values. Respond to progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.Core Values Customer Satisfaction through  Providing quality service effectively and efficiently  “Smile, it enhances your face value” is a service quality stressed on  Periodic Customer Service Audits Maximization of Stakeholder value Success through Teamwork, Integrity and People 9
  10. 10. Branch Head (Mr. Narendra Tanna) Assistant Manager (Mr. Vimal Rajyaguru) Back Office Marketing Officer (Mr. Bhavesh Madhak)Accounts DP 10
  11. 11. Marketing Department The main aim or marketing activities at Sharekhan is thatthe customer should get enough guidance to joint the companyand how he can get the best service than any other stockbroker.There is an officer for handling the marketing activitiesfollowed by two executives and it is not limited to them but theother people are also having some responsibilities to increasethe no. of clients and retain them by providing them theservices needed by them. There are many services those are designed such that thespecific target segments of the customers are covered and theproducts are positioned in the minds of customers as the bestone in India. The services are as given below: Sharekhan is India’s leading national network of stock-broking outlets. It is having the largest retail distribution chainin India. Sharekhan is not only a share-broking firm, but itavails of various services and other financial products to itsclients. 11
  12. 12. (1) Offline Trading facility(2) Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and NEAT, i.e. National Exchange Automated Trading)(3) Free access to investment advice from Sharekhan’s Research team.(4) Depository services: Demat and Remat transactions (Sharekhan is registered with NSDL, i.e. National Securities Depository Ltd., as a Depository Participant)(5) Derivatives trading, i.e. Futures and Options (through NEAT F&O)(6) Internet based online trading.(7) Other investment products: Mutual Funds, RBI Bonds, Insurance, etc 12
  13. 13. Online BSE and NSE Trading Sharkhan is a registered Stock Broker with the Bombay Stock Exchange and National Stock Exchange to trade on behalf of clients. The screen-based trading is done on BOLT- BSE Online Trading and NEAT – National Exchange Automated Trading, terminals. There are two types of transactions executed on these terminals viz. intra-day and delivery based transactions. Intraday transactions are those, in which the squaring up of deal is done on the same day, while in delivery based transaction the squaring up of deal is done on the same day, while in delivery based transaction the squaring up is not done on the same day, but the stock is to be traded on the basis of rolling settlement i.e. T+2. The Brokerage of Intraday transaction is 0.10% single side, while brokerage on delivery based transactions is 0.50% on both side, i.e. while purchasing as well as selling. Free Access to Investment Advice through R&D 13
  14. 14. The Research and Development at Sharekhan is done atits Head office Mumbai. From there it forwards the relevantdata and tips on particular shares and scripts at the relevanttime. The R&D department Head Mr. Hemang Jani forwardsall the details regarding all stocks and scripts to all the branchesthrough internet. At the end of each trading day there is aTeleconference, through which the R&D department Head Mr.Hemang Jani talks with each Branch heads and discusses abouteach day’s closing position and shows their predictions aboutnext days opening position. The quarries regarding stockpositions and other relevant matter of the branch heads of eachbranch is being solved through teleconference. The variouspublications of Sharekhan viz. Commodities Buzz,Commodities Beat, Commodity Trader’s corner, SharekhanXclusive, etc. are being prepared by the research team ofSharekhan made up of highly experienced people from diversefield. 14
  15. 15. Depository Participation DEPOSITORY ISSUER/R&T AGENT CLEARING CLEARING DEPOSITORYCORPORATION MEMBER PARTICIPANT STOCK TRADING INVESTOREXCHANGE MEMBER 15
  16. 16. Sharekhan is a registered Depository Participant (DP)with National Securities Depository Ltd. (NSDL). Theparticipants are required to enter into an agreement withbeneficial owners. It is required that separate accounts shall beopened by every participant in the name of each of thebeneficial owner and the securities of each beneficial ownershall be segregated and shall not be mixed up with thesecurities of other beneficial owners or with the participant’sown securities. The participants are obliged to reconcile therecords with every depository on a daily basis. Participants arerequired to maintain the following records for a period of fiveyears. Records of all the transactions entered into with a depository and with a beneficial owner; Details of security dematerialized, rematerialized on behalf of beneficial owners with whom it has entered into an agreement; Records of instructions received from beneficial owners and statements of account provided to beneficial owners; and Record of approval, notice, entry and cancellation of pledge or hypothecation as the case may be. 16
  17. 17. Derivatives Trading Sharekhan is a Trading Member registered with the StockExchange, according to the norms and Guidelines given by theSEBI. Two types of users access the NEAT F&O tradingsystem. The Trading Members and the Clearing Members. TheTrading Members (TM) has access to functions such as, ordermatching, order and trade management. The Clearing Member(CM) uses the trader workstation for the purpose of monitoringthe trading member(s) for whom he clears the trades.Additionally, he can enter and set limits to position, which atrading member can take. Sharekhan provides the service ofderivatives trading on NEAT F&O to its clients. 17
  18. 18. Commodities Trading Sharekhan is providing the facility to trade with thecommodities through MCX (Multi-Commodity Exchange)and NCDEX (National Commodities & DerivativesExchange). The commodities market in India is an emergingmarket, which will become the largest market in the worldwithin the next 5 years, as the trends in the commodities marketshows its performance. The company also provides researchreports on daily, weekly and monthly basis for the investors inthe commodities. It is just like the futures and is having a fixedlot of goods with the margin for each commodity and thetrading is based on the theory of futures and therefore, it is alsocalled Vayda Market. In short Sharekhan also providesbrokering in commodities and the brokerage charges are 0.10%on total trade value and if carry forwarded an additional 0.02%charge on total trade. 18
  19. 19. Online IPO Online IPO (Initial Public Offering) is a new servicestarted by Sharekhan for providing the application form of anycompany’s issues of just like the TCS issue can be subscribedby filling an online form to reduce the paper work and the fundtransfer facility is also provided to the clients for transferringthe funds online. It is given on its web-site for helping theclients who are not able to collect the forms manually and thespeed of filling and reducing the risk of misplacing of forms,not reaching in time, etc. 19
  20. 20. Internet Based Online Trading The Online trading facilities provided by Sharekhan is basically divided into two types of accounts, viz. Classic Account and Speed Trade and Speed Trade Plus. (1) Classic Account: This account allows the client to trade through the website and is suitable for the retail investor. The online trading through Sharekhan website also comes with Dial-n-Trade service that enables you to buy and sell shares by calling our dedicated toll-free number. (2) SpeedTrade and SpeedTradePlus: SPEEDTRADE is a next-generation online trading product that brings the power of broker’s terminal to the client’s PC. Through SPEETTRADE PLUS the client is also allowed to trade on Derivatives. (3) Streamer: Streamer account is just for the new learners of market and is a new service offered by Sharekhan to give the view of the market online to the customers who don’t have nay experiences of the stock market and it is a software provided to see the ups and downs of market with the screen on your PC. It costs Rs.2000 per quarter and there will not be any facility for trading and just you can see how trading is done on the market. The various benefits the client gets form the online trading are: 20
  21. 21.  Freedom from Paperwork: Integrated trading, bank and demat account (auto pay-in and pay-out of securities) with digital contracts removes all paperwork. Instant Credit and Transfer: Instant transfer of funds from bank accounts of client’s choice to his/her Sharekhan trading account. Trade Anywhere: Enjoy the ease of trading from any part of the world in a completely secure environment. Dial n Trade: Call Sharekhan on a toll free number to place orders through sharekhan’s tele-brokers. Timely Advice: Make informed decisions with expert advice, investment calls and live market commentary. Real-Time Portfolio Tracking: Benefit from real- time information of your investment and current portfolio value. After-Hour Orders: The Client can place orders after the market hours, which get executed as soon as markets open. 21
  22. 22. Marketing Mix The marketing mix of Sharekhan is an excellent examplewe have seen in the industry because no other brokeringorganization has such products to target the investors ofdifferent minds, incomes and aims. There is an objective ofsatisfying the customer as to make him delighted withaffordable prices and convenient services. The fourth P of themarketing mix is the best at Sharekhan in India because thetotal no. of share shops are widespread all over to have themaximum contacts and awareness about Sharekhan, and we cansay that it has achieved that because it is having the maximumturnover than any other broker in India. The Classic, SpeedTrade and Speed Trade Plus are the trading products, which areone of the bests in the market. The marketing is done based on leads generated throughthe web contact, tele-contact and personal contact with thecustomer and is a planned procedure to find out new customers.The marketing management is carried out in an excellent wayat Sharekhan. 22
  23. 23. SERVICE (Product) Service is an act or performance that one party offers toanother for sell and it is not a physical product that you cantouch but it is that one can feel. It is not likely to result into theownership of anything. A service can be a fully service or amixture of service and physical product. The trading products of Sharekhan are such a mixture ofservices like DP service (managing the demat account),providing reports for investment advice etc. and thus we candefine its service mix as a hybrid product mix of differentphysical products with accompanying services. Therefore, the two types of accounts offered bySharekhan i.e., Offline and Online are the two main productlines in the product mix of the company. The offline a/c withSharekhan is defined as the account having which you can tradeanywhere in the share shop of Sharekhan and the online a/c isthat you can trade on your PC through the software provided bySharekhan and it also offers tele-trading in both the cases butthe major difference is of the service and prices for opening anaccount. The product mix is as shown below: 23
  24. 24. SharekhanOffline A/c. Classic A/c. Speed Trade Speed Trade Streamer A/c. Plus A/c. A/c. The product mix is showing the products offered by Sharekhan to its customers and it is one type of a tree structure diagram that shows the products of a company. The products are actually services and are at the completion of the second stage of Product-Life-Cycle, i.e., Growth and are entering into maturity stage. So there should be some changes in the marketing strategies of the company. 24
  25. 25. Price Prices for the trading products are as given below:Classic Rs.750 (onetime) Demat free for 1 year (other facilities included)Speed Trade Rs.1000 (brokerage Online trading on your pc deposit of with Demat free and other 3000/quarter) facilitiesSpeed Trade Rs.1500 (brokerage Facilities as per SpeedPlus deposit of 6000/half) Trade with F&O tradingStreamer Rs.2000/quarter Facility for viewing the market online 25
  26. 26. Promotion Promotional activities at Sharekhan are done by web, e-mails and personal contact. Sharekhan is also organizingseminars and presentations and promotes its services to theclients. It is spending Rs.20000 per month for promotionalactivities. As explained earlier, Sharekhan is having the largestdistribution chain of retail outlets of share shops. And it can beseen also because there are 180 share shops in 90 cities, whichgives the maximum awareness to Sharekhan. The distributionof Sharekhan is also proved by its turnover and awarenessamong the investors in the stock market. The marketing strategies followed by Sharekhan at thispoint are as given below: The excellent marketing mix i.e., the Product-Price- Place-Promotion and for services additional 3Ps viz. People, Process and Physical evidence, are managed according to the needs of the customers and try the best to deliver the maximum value to the customers for what they pay a price. The HR and Operations are one of the best at Sharekhan to help the customers for getting the needs fulfilled with a family culture and atmosphere of harmony, peace and brotherhood and it is focusing on the specific segments like HNI, Delivery-based and Intra-day traders. 26
  27. 27. Finance Department Like blood is the most important factor in our body,Finance is the blood of any business. Finance is needed for allthe activities like production or services as well as theirdistribution. The finance department directly influences all thefunctions of the other departments. Also finance has to giveequal importance to all departments. Finance is thatadministrative area or set of administrative function in anorganization may have the means to carry out its objective assatisfactorily as possible. Sharekhan has special accountsdepartment for separate calculation of pay-in and pay-out offunds according to the client’s Proft/Loss. Finance managementis done at Sharekhan is done by managing the stocks in thedemat accounts and funds in the margin & trading accounts Finance 27
  28. 28. DP Account s Finance is the lifeblood of an organization to continue itsactivities and the finance management at Sharekhan can bedivided into two major parts viz. DP (Depository Participation)and Accounts management, which are shown in the figuregiven above. DP means providing the facility to the clients formanaging the stock bought/sold by them. DP covers two majorterminologies viz. settlements and the auctions which is a partof managing demat account. Settlements as defined by SEBIare T+2, currently and it means that the demat account of theclients are prone to be sufficient for selling a script with nodebit at all, i.e., the account must have the sold amount of stockto fulfill the settlement after 2 days from trade-day. Generally,the timings are 9:30 and 3:00 as a deadline for the client and hemust provide the stock for giving a delivery to the buyer. Thechart show the total transaction between two clients: 28
  29. 29. C DP (Sharekhan) E DP (anyone) C The chart shows the process that the request for selling and buying passes through the DPs of the respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock Exchange) becomes the controlling intermediary for the delivery of stocks and this process is done in two days. Nowadays, as banks are becoming fast for E-Fund Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking to make the financial market of India to have a maximum speed of transactions just like the other nations in the world and proposing for T+1 settlement scheme but the system is not enough competent for that thing. But soon or later we will have such a settlement system in India, as said by Mr. J. N. Bajpai, chairman of SEBI. 29
  30. 30. The client, if not capable of providing the delivery of say,1000 shares of SAIL then the Auctions are initiated by theexchanges and the client has to pay for the price prevailing inthe market with 4-5% penalty. The penalty can go on maximumto 20% more than the market price of the sold stock. Generally,it is known as a buying auction and a same kind of auction isfor selling the stock for which the buyer was proved unable topay the price is carried out by exchange, known as the sellingauction. And a debit or credit note is provided in the respectivecase of auction to the clients, i.e., for buying auction debit noteis given on the T+4 basis and in case of selling auction thecredit note is given on T+5 basis. There are two types ofauctions called as Internal auctions & Market auctions, theinternal auctions are defines as the auctions carried out betweenthe other shops of Sharekhan and market auctions are those asexplained earlier, the auction carried out in the market. This is all about settlements but now switch to fundsmanagement or accounts management at Sharekhan. Theaccounts are different that is the margin a/c for deposits of theclient and trading a/c for which Profit/Loss are settled. Thecollection of funds from the clients who had a debit balance ormade a loss are made on the next day of trading and thepayments to the profiting traders are made after two days oftrading because the cheques are received from H/O and thenpay-out is done and Pay-in is as explained that amounts to betaken from the clients. In this way, accounts are managed but in 30
  31. 31. case if the client is unable to pay, the deposit from the margina/c is cut down to the payments and in case if a client is havinga credit balance in F&O trading though he had a debit balancein cash-NSE & BSE trading, a JV request is sent to H/O fortotaling the three balances. The main aim for accountsmanagement is that the clients must have a credit or no debit onthe next day. The DP services provided by Sharekhan are falling underthe regulation of NSDL (National Securities DepositoryLimited) and CDSL (Central Depository Services Limited),organizations governed by SEBI to regulate the depositoryservices in the interest of the investors. So, the financial marketin India is governed by Ministry of finance under which twomajor bodies viz. SEBI & RBI are covered and under RBI thebanks and other financial institutions are covered while SEBIcovers the exchanges, NSDL & CDSL and the whole DPservice providers with the brokers to the investors. In this way we have gained a meaningful knowledgeabout India’s financial market and its structure from thistraining at Sharekan. In this way, the finance function is carriedout at Sharekhan by following the guidelines given by SEBI.And the company is a private limited one with its own policiesfor disclosing its financial statements. 31
  32. 32. Human ResourceDepartment Human resource is the crucial resource that a companycan use to grow with the work of the employees. HRMactivities at Sharekhan start form induction to the specific jobtraining and are done by H/O at Mumbai. H/O takes a writtentest and selection interview for filling up vacancies in branchesbut the recruitment is done by the branch itself and theselection is performed by H/O from the screened applicants. Any new recruit is firstly inducted to the company andsent to T & D department that is covered under HRD and T &D programmes makes employees aware about all theactivities/jobs within the department he/she is to be recruited.Suppose if, I would be recruited for finance department thenthe finance related employees are known to me wit their workprofiles, that is, what they really do? Then the specific job training is provided at H/O and theperson has to keep in touch with the concerned department atH/O on internet because he/she has t solve many conflictsarising in the investor’s mind and to have an up-to-dateinformation regarding the procedures and any new facilities orpolicies to resolve the problems of the clients. It is a must for 32
  33. 33. each employee because the employee is the people by whomthe company gets its customers and retains them. HRP (Human Resource Planning), HRIS (HumanResource Information System), Recruitment & Selection,Career planning and development, Assessment & developmentof employees for Performance appraisal, etc. activities ofmanaging the HR at Sharekhan is maintained in a way to meetthe requirements. The corporate culture at Sharekhan is maintained in sucha way that the people are helpful to each other and eager to getthe work done as soon as possible with a co-operative thinking.An additional Rs.10000 is provided for each outlet ofSharekhan to motivate its employees by performance appraisaland also the heads of each departments and branches has to gothrough a 3606 performance appraisal for maintaining theconsistency in growth of the company. In the end we can say that the human resource ofSharekhan is a best managed and used for the continuousgrowth and development of the company for its future plans tobe achieved time-to-time. 33
  34. 34. Operations DepartmentInputs There are many inputs to the production & operationsviz., land & buildings, machinery & equipments, furniture &fixtures, employees, technology, capital (invested by promoters& deposited by the customers) and the most important input,i.e., management functions carried out at national, regional andbranch level in Sharekhan.Conversion Process The main aim of it is to make profit with customersatisfaction. The conversion of inputs works as the Sharekhanearn brokerage from the customers. The profits are generatedfrom getting a higher return on the invested amount of moneythan the amount payable to the customers. The process isfacilitated by a centralized computer system in which the datais stored and recovered for the whole INDIA and it is havingthe CPU at the H/O in Mumbai, Sharekhan is regulating thebrokerage rates all over India by keep watch on eachtransaction done from the branch office. The data of a customerwill be stored in the central computer and all facilities such asbills, credit/debit reports etc. are provided by that computer toall customers on-line on the internet. 34
  35. 35. The conversion process is also facilitated by some adjustments to the inputs and then the random fluctuations are also handled in the process and lastly the monitoring of the process is done and a feedback is given to do the adjustments for the process as indicated in the figure given. Outputs Outputs are those services generated by Sharekhan with the help of the inputs and using the conversion process. These services are as listed in the figure above.Table SharekhanConsumer Retail Channels Financial ComplainServices brokering advisory resolvance ServicesCorporate Capital Nationwide Depository OthersBroker markets electronic participant advisor data transferOperations Strategy at Sharekhan 35
  36. 36. Operations strategies are implemented in Sharekhan asshown in the chart given above and the main points ofconsideration are Efficiency, Dependability, Quality andFlexibility. The points demand a facility mission that is made up ofprocess, capacity, facilities, vertical integration, andinfrastructure facilities provided to get the desired outputs asper the plan. The main aim of the operations strategy at Sharekhan isthat the efficiency of the organization and high level of it isdesired outputs with low costs, i.e., productivity witheffectiveness. Quality should be high and consistent indelivering services; Flexibility is related with fast introductionof new services and providing a wide range to select an optionto the customer. This is facilitated by the process of operations,capacity/ability of the organization, competitive advantages,vertical integration and the infrastructure created by the firm. Sharekhan plans the strategies to get a working plan fromit and the planning is done from top-to-bottom level, i.e., 36
  37. 37. national level, regional level, divisional level and the branchlevel planning is carried out by the managers. In this way, the Operations are managed with the bestefforts in a direction that is to facilitate future plans byachieving success in time and create milestones in the industryby driving the company with excellence. 37
  38. 38. SWOT ANALYSIS During this training at Sharekhan, we had come to knowthe Strengths – Weaknesses – Opportunities – Threats for thecompany and it is very useful for a company to analyze them.Therefore, the SWOT analysis is presented here and thesuggestions for maintaining strengths and removingweaknesses are explained.Strengths: Well-maintained infrastructure. Dedicated, Intelligent and Loyal staff. On-line Trading products. Lowest brokerage and other charges w.r.t. competitors. The best investment advice correct up to 70-90% through dedicated research and reports. Wide product range to enable the clients to choose the best alternative. One of the best DPs in India. A positive image in the existing clients. 38
  39. 39. Weaknesses: Less awareness in the market. Time consuming process for account opening, resolving the problems of the customers, etc. Service quality is not maintained accordingly how they are promoted.Opportunities: Large primary market to sit as a book runner for the other companies just like Kotak Securities Ltd. that runs the books of share holdings for many companies. Slope of stock market towards delivery based transactions. Large potential market for delivery and intra-day transactions. Open interest of the people to enter in stock market for investing. Attract the customers who are dissatisfied with other brokers & DPs. An indirect opportunity generated by the market from its bullishness. 39
  40. 40. Threats: Decreasing rates of brokerage in the market. Increasing competition against other brokers & DPs. Poor marketing activities for making the company known among the customers. A threat of loosing clients for any kind of weakness of the company. Indirect threat from instable stock market, i.e., low/no profit of Sharekhan’s clients would lead them to go for other broker/DP. 40
  41. 41. Suggestions and Recommendations The suggested marketing & operations strategies to be followed by Sharekhan at this point are as given below:  The modification of marketing mix i.e., the Product- Price-Place-Promotion and for services additional 3Ps viz. People, Process and Physical evidence, according to the needs of the customers and deliver the maximum value to the customers for what they pay a price i.e., improve old products.  The competitors are trying to get customers with better services than Sharekhan viz., account opening process time, low deposits with greater exposure for trading, more focus on delivery-traders, etc. so Sharekhan must take care with developing fighter products to retain old customers and gain new customers with competitive prices and services.  There are more customers waiting for the right kind of a company and Sharekhan can get that segment of customers by using the research reports like, “Investment pattern of the investors” as attached with this report. By finding the right needs of the clientele, the company can develop new products suited to the specific customers.  For controlling the operations of the company it is recommended that the employees should be motivated for 41
  42. 42. work and they should have a feeling of satisfaction for working in Sharekhan, so that the investors get maximum service and satisfaction. The next is to improve the service quality as we have studied in marketing that there are five gaps in delivering services to customers and Sharekhan needs to fill up those gaps, as listed below: (1) The gap between company’s perception about the needs of customers and the expectations of the same. (2) The gap between company’s perception and the implemented service quality specification plan. (3) The gap between service quality specification plan and how it is delivered to the customers. (4) The gap between delivered service and the external communications done with the customers to promote it. (5) The gap between how customers perceive the service and the expected service that is made by WOM (word of mouth) communications, past experience and the comparison among all companies offering it. Sharekhan needs to fill up these gaps, which aretraditionally identified by Berry, Zeith and Parchuraman toimprove the quality of the services offered by a company. 42
  43. 43. To attract more investors many factor can be suggested, but we cannot apply all of them. So, some suggestions are given here for gaining more business for the investment Company.  First of all, the company has to make good image in the minds of investors, so they can feel safe and reliable to invest in that company.  The companies that have dealing with stock market must give proper knowledge to the investors and if any new information is coming then it must be communicated with the investors.  The share trading company must have strong R&D department so they can give more accurate tips and investment ideas to attract them.  To increase the knowledge of the investors the company must have to do some commercial fair or any other promotional activity, so that the investors who don’t know about it can be aware and inspire for investing in the stock market with Sharekhan.Recommendations for Derivatives Derivatives can be a very effective tool to take advantage of a raising and failing and range bound underlying. 43
  44. 44. The following points may be kept in mind while tradingin derivative products: Choose a month that allows enough time for the anticipated move in the underlying. In-the-money calls are initially more responsive to underlying price changes that out-of-the-money calls. Choose a strike price level that offers a good risk/reward ratio given the expected price movement. Watch for Bid/Ask price offered for Spot, Future, & Options simultaneously. Liquidity of products involved. Transaction costs. 44
  45. 45. CONCLUSION Now, to conclude the project there are few points in theinvestment pattern of investor of Rajkot city, which can bequoted and cited as below. First of all most of the investor are very sensitive about safety of their investment. They want more safety and reliability. Current trend and easy access is not affected the investor as much as safety and reliability. Then after we can conclude that Bank and Insurance sector have very good scope for gaining more business due to more safety and reliability. Most of the earning people invest their income up to different level in any sector, so investment company have also very much scope of gaining business. Mutual fund, Bond is also gain popularity since few years. So, they can also make business more if they are well reputed and reliable. Equity market has also popularity among investors due to higher return, but due to uncertainty and lack of proper knowledge investors do not invest in that sector. 45
  46. 46.  But investors who have proper knowledge and willingness to take risk up to some extent are easily invested in Equity market. One of the reasons to invest in equity market is liquidity and change in government policy. Bank’s interest rate is also decrease since last few years so, investors move towards other sector like mutual fund, bond, equity market and others like land, gold, building etc…. So, final conclusion on part is that investors of Rajkot city invest their money with the balance of safety, reliability and return on investment. The last point to say that the conclusion of the summer training project report is that if a company is really interested in growing its business then it has to give an attention to the customer’s needs, their potential and the main thing what type of product/service they want. It is because to stay in this competitive market is as difficult as to climb up the Mt. Everest. 46
  47. 47. BIBLIOGRAPHY www.sharkhan.com www.stocks-investing.com www.investopedia.com www.nsdl.co.in Sharekhan Tutorial Financial Management by S. N. Maheshwari 47

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