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  1. 1. OF MANA NAL GE UR M JO EN :A TS ADHYAYAN CI E N SC CES S CE HO EN O L CI S OF ANAGEMENT M ISSN : 2249-1066 VOL.1-NO.3, June 2012AdhyayanA Journal of Management Sciences
  2. 2. AdhyayanA Journal of Management Sciences ISSN : 2249-1066 Vol.1 No.3, June 2012
  3. 3. EDITORIAL BOARD Editor-in-Chief Prof. (Dr.) M. Mehrotra Director, SMS Lucknow Consulting Editor: Managing Editor: Dr. Alok Kumar Ms. Suchita Vishwakarma Associate Professor Lecturer, SMS Lucknow SMS Varanasi Member Editorial Team Ms. Ratna Yadav Mr. Satyajeet Asthana Lecturer SMS Lucknow Lecturer SMS Lucknow ADVISORY BOARD Prof. B. P. Singh Prof. (Dr.) H. J. Ghoshroy Former Professor, Director & Dean, IMSAR Delhi School of Economics, MD University, Rohtak New Delhi Prof. Arunabh Chaterjee Prof. (Dr.) Rattan Sharma Professor & Ex HOD-Dept. of Commerce Director, Bhartiya Vidya Bhavan’s Usha University of Lucknow, & Laxmi Mittal Institute of Management Lucknow New Delhi Prof. S. K. Singh Mr. A. T. Raman Faculty of Management Studies Chairman SEAA Trust Banaras Hindu University & Accreditation Consultant Varanasi New Delhi Dr. Somya Singh Associate Professor Dept. of Management Studies Indian School of Mines, DhanbadAdhyayan- A Journal of Management Sciences is half yearly publication of School of Management Sciences,Lucknow, India. The vision of the Journal is to present a pedagogic platform to scholars all over the world to publishtheir novel, original, empirical and high quality research work. The editorial board would like to publish researchpapers/articles from scholars pertaining to contemporary developments and practices in all the areas ofmanagement and emerging issues in allied areas of management.No part of any paper/article can be reproduced without the prior permission of the Editor-in-Chief, ADHYAYAN – AJournal of Management Sciences.Disclaimer: The view and opinions presented in the research papers / articles published in the Journal are solely
  4. 4. Editorial It is a matter of pride and honour to introduce this second issue ofADHYAYAN - The Journal of Management Sciences, Lucknow. This issue ofthe Journal incorporates a congregation of various research papers ondiverse fields of Management and allied areas.This issue includes seven quality research papers, one literature review andone book review. The authors are a mix from various well-known institutes anduniversities of the country. I am sure the journal will serve as a valuableaddition to the management literature and will also prove to be a valuablereference material.I would also like to place on record my sincere thanks to all the members of theeditorial advisory board for their unrelenting support to Adhyayan. I alsosincerely thanks the appreciable efforts of the members of the editorial teamfor helping to bring out this issue of the journal.I am also grateful to reviewers for providing their comments and suggestions.Our sincere appreciation goes to all the authors for their timely contributionand to the readers for their incessant support.We look forward to your comments on this issue and suggestions on mattersconcerning the journal.Prof. (Dr.) M. MehrotraEditor-in-ChiefSchool of Management Sciences,Lucknow
  5. 5. Contents1. Venture Capital, A Tool In promoting Entrepreneur ship 1 Dr. Bhargav S. V. Ramachandra & G. Srinivasa2. Workplace Stress- The Theoretical Study on Reasons and Coping Methods of Stress Vaibhav Misra & Manish Kumar Srivastava 53. A Comparative Study of Registered & Foreign Venture capital Investment with special reference to BT Sector in India G Srinivasa & Sir M Visvesvaraya 104. ITC-e chaupal - A Strategic Agribusiness Approach towards Strengthening the Market Reach in Rural India Dr. K.K Agarwal & Preeti Singh 185. Case: The Growth Question 22 Moid U. Ahmad6. Crowd Sourcing –a New Management Mantra 24 Devi Premnath & Dr. C.Nateson7. Growth of Currency Futures in India 27 Dr. Avinash Bajpai8. Public Private Partnership in Infrastructure - Roads Sector in India Dr. P.K. Sinha & Sanchari Sinha 319. Bridging the Health Inequality and Strengthening Public Health System Through Public Private Partnership 40 Dr. Rajesh Kumar Shastri & Rinki Verma10. Software Quality Management - An Overview Of CMMI And TPI Quality Assessment Procedures 51 Prof. Karuna Devi Mishra
  6. 6. Vol.1 No.3, June 2012 Venture Capital, A Tool In promoting Entrepreneur shipDr. Bhargav S. V. Ramachandra* & Mr. G. Srinivasa**ABSTRACT Venture Capital (VC) is usually defined as an independently managed, dedicated pool of capital that focuses onequity or equity-linked investments in privately held, high growth companies it is one of the important factor whichcontributes to the growth and potentiality of business as well as for entrepreneurs Entrepreneurs and SME managersface two key choices when financing their ventures: debt or equity. Debt in the form of personal loans (including creditcards) and bank loans, key sources for most nascent ventures, gives efficient incentives for managers to exert effort andallow entrepreneurs to maintain control. The availability and utility of debt vary significantly with economic conditions,which, in turn, will have an impact on the supply and cost of capital. To a lesser extent, entrepreneurs rely on equityfinancing, in which parties external to a venture obtain partial ownership (and control) in exchange for financialcapital, thus diluting managers incentives to expend effort. Equity financing is particularly important for high-growthventures, since the amount of debt financing available may not permit sufficiently rapid growth in volatile industries (forexample, technology). Objectives and incentives that are well aligned between investor and manager are the mostefficient and facilitate additional value for the venture. The paper tries to bring out the effect and growth of venture capital funding over a period of time with that offtraditional funding, Venture capital General Investment criteria decided by the venture capitalists, and finally addingthe conclusion of Role and importance of Venture Capital in the Entrepreneurial Development.INTRODUCTION KEY ISSUES IN THE VENTURE CAPITAL Venture capital has already made drastic impact in INVESTMENT AND FUNDINGthe globalized economy by creating high standards of 1. Venture capital requirements varies betweenliving and steep increase in the GDP in the developed $50000 and $ 500000countries like US, UK, Japan etc. The challenges in 2. Venture capital growth varies between 20% to 30%India seem to be a narrow way wherein the small and over a period of timemedium entrepreneurs go for making a small 3. It involves high technology investors who take theinvestment from the financial institutions. Venture risk of investment in the upcoming small andcapital has a sterilized the economic crises by the way medium enterprisesof inducing the foreign investors. Merchant bankers, to 4. Companies can project high amount of cash flowsgo for providing venture capital for the entrepreneurial over a period of time within three to five yearsdevelopment with a ease of flow of capital even to thedomestic markeat as well. VENTURE CAPITAL INVESTMENT PROCESS Venture capital is a high risk investment made by Venture capital investment process is driven by thethe investee companies in the new business for returns. growth and potentiality of the investor andVenturing as a entrepreneur in this economic crises entrepreneur as well stages include,certainly is a challenge because of the adverse returnsof the market earned in the subsequent years. Adding 1. Fund conception and investment strategyto this venturing as a entrepreneur not only involves targeting the investment opportunities: Thisbusiness skills, but also selecting the right type of the includes the preliminary screening of theinvestment companies at the right time and backing the investment process. In this step, the investor triesreturn on the investment, hence it is a mere fact to know to get into the total fund requirement for anhow venture capital normally works, venture capital enterprise with the risk involved; on the other handinvestment process, risk and return expected by from the perspective of the entrepreneur, thisinvestee company on the investment, Supporting includes, finding out the best alternative ofservices rendered by venture capitalists, and finally investment. Exploring the investmentchallenges ahead for the venture capitalists and opportunities plays a key role in the organizationsentrepreneurs in the up coming era. This conceptual growth and profitability hence in order to havepaper tries to cover all these aspects which are useful steady growth the entrepreneur should end up infor the business and entrepreneurs as well. selecting the best type of investment alternative.* Dr Bhargav S V Ramachandra, Director, TTL College of Business Management,Mysore** Mr. G Srinivasa Research Scholar, Bharathiar University Coimbatore, 1
  7. 7. Vol.1 No.3, June 20122. Raise capital for investment: Raising the capital 7. Informal Investment: Venture capital firms seek is one of the important steps in the venture relatively high rate of return on the capital investment process. Venture capital itself is called employed. As such it is mere a fact that the venture as risk capital as the investor is risking his capitalist will definitely perform enough due investment in the new business hence rising the diligence process before making such investment. initial capital for investment may be difficult, From the entrepreneurs perspective selecting the however venture firms seek value to the right type of venture capitalists becomes difficult investment and gets the maximum return on the particularly in selecting the informal investors investment. because most of the informal investors will look3. Generate deal flow with New and young into the market opportunity, potentiality of the companies with high potential: “Most venture business, cash flow in the subsequent years and capitalists have a short list of first class players and return on investment, and making the investment those are the horses you back”, says, Norwest exit. partner Ernie Parizeau. With the above actionable (Source: Harvard Business School Press, from Venture statement, it is very clear that generating the deal Capital at the Crossroads by WD Bygrave, J.A flow is not an easy task for the investors; hence Timmons Boston, Harward Business School most of the venture capitalists try to make their Publishing Corporation) investment in the new and young companies. Though there is high risk of business success as the CHARACTERISTICS OF VENTURE CAPITAL venture capitalists and so they are called risk INVESTMENT capitalists. They ensure that the business meets the growth potential. 1. Equity investment: Venture capital investment is a type of equity finance that is invested in the new4. Screen and evaluate the deals: Evaluating the upcoming projects. As it was noted earlier, venture deals play a significant role in the venture capital capitalists perform enough due diligence before investment process. Most of the venture capital making such investment which includes review of commitments happened in India in the year 2000 business plan, meeting the full management team, to 2004 wherein most of new venture capital firms see any product prototype or design that may exist entered Indian market with an aggressive and so on. investment which has helped most of the entrepreneurs to start a new business. On the other 2. Substantial minority/equity stake: Venture hand, venture capitalists have started to screen and capital investor expects the minimum return on the evaluate the deals on the basis of different types of capital employed as such he may acquire risk such as market, bailout risk, liquidity risk substantial minority or stake in the company. This growth risk etc., concept holds good in several situations because the venture capitalist not only funds but also5. Valuation and negotiation structuring the provides various non financial support services to deals: At last the venture capitalists value their the enterprise making the enterprise to achieve the investment and return on hand to hand. Venture expected growth and profitability. capitalists add value to their investment by the way of strategy development, active board 3. No “Takeover Management Mentality,” but membership, attracting outside expertise, rather has a “Company First Philosophy”: This providing all non financial support to the firm so as statement signifies that the venture capitalists to make the firm to reach at its peak. The non work for the enterprises and not for the self. This financial support as mentioned above will be would rather be put as providing the full assistance delivered on time to the entrepreneur whenever to the enterprise acting as unique strength of the required this support service will definitely benefit venture capitalists which certainly adds value to the entrepreneur in getting the business success the enterprise. which will also add value to the venture capitalists 4. Board Position – desired but not mandatory and make him find and structure his other (Passive vs. Active Investor): Most of the venture investment alternatives. capitalists prefer to exit when the investment is6. Exit mechanism: Once the business develops and backed up. In certain cases venture capitalists makes profit, venture capitalists tries to exit. This prefer board position, which depends on the type can also happen when the required return is of investor. If it is aggressive and active investor he achieved because he feels that the business can prefers to have a stake and board position as well operate without his support. This can be done by but if it is a passive investor he will be interested in the way of selling off part of their stock or by the providing cash alone and getting return on way of initial public offer, mergers etc., investment on the cash flow. 2
  8. 8. Vol.1 No.3, June 2012Exit is very important (within 3 - 5 years): Most of various other projects as well.the venture capitalists prefer to exit within 3 to 5 7. Providing networking access to vitalyears and turn their investment towards the other new prospective customers: Customer is the king inbusiness this also helps the venture capitalists to the business; as such venture capitalists with theirmake the relative investment easy. huge network base provide the link to the businessROLE AND IMPORTANCE OF VENTURE enterprises which will help the businessCAPITAL IN THE ECONOMY & enterprises to grow much higher and hugeENTERPRISES customer base which is strength for any business.1. Supporting ideas which have high risk and high 8. Assistance in head hunting for senior positions: reward: This is the major role played by the This is a very important non financial support venture capitalists. Most of the small and medium provided by the venture capitalists. From the enterprises today are funded by venture capitalists development of business strategy to execution, in US and UK and even a developing country like senior people play a very keen role. As such being India which had a series of impact of VC funding the case appointing the right person for the right particularly from the beginning of 2000 to 2004 job is very important in this regard venture and it has also been noted that, even during the capitalists provides easy solutions with their collapse of market, venture capital funded network base enterprises performed very well. 9. Sharing vital and relevant information: As it2. Nurturing innovation and creativity: Most of was said before venture capitalists act as a active the venture capitalists today are looking for investor by the way of sharing vital information funding in the innovative sectors such as Bio which is very much essential for the business technology, Pharmaceuticals, other than only enterprises to run and to compete in the todays funding towards the manufacturing and service competitive environment which will help the sectors this has made the economy to be stabilized business enterprises from policy formulation to over a period of time policy execution.3. Sustaining a competitive business So, an ideal venture capital investor should have, environment: In order to boost the competition ü Knowledge of industry, deal structuring and among the funding companies it is necessary to exits. upgrade the new technological investments as ü Industry and VC network. such venture capitalists played pivotal role in making such things happen. Creating such ü Ability to stay over 2 to 3 rounds. healthy competitive environment is necessary for ü A s s i s t a n c e w i t h b u s i n e s s s t r a t e g y, the growth of the economy and certainly VCs have recruitment, fund raising, partnering, contributed best. customer contacts and exits (IPO, M&A).4. Supporting the growth of entrepreneurial ü Active board participation. excellence: Entrepreneurship is the todays talk (Source: Private financing advisory network). not only in educational institutions but also a slogan by the government, hence to promote the CHOOSING AN IDEAL INVESTMENT entrepreneurship the government has taken PARTNER necessary steps. Venture capitalist supports such This is the most crucial step for the business enterprises growth by providing funding to the new, up as the business is new, the options are few for the coming business enterprises. investment.5. Providing insights to the evolving business As such selecting the right type of investment partner strategy: Venture capitalists not only provide who provides both financial and non financial support funding to the business enterprises but also is very important and difficult as well this should provides assistance in evolving a business strategy include, or core competency which is very much essential 1. Industry and “stage of funding” focus: for the business for survival and growth. Choosing an ideal investment partner merely6. Developing alliances and partnerships: Venture depends on the stage of funding i.e. seed capital, backed firms develops alliances and partnerships start up capital, expansion capital and replacement with the other large scale enterprises; this is the capital. Investment is also driven by the risk and very important way in which venture capitalists return of the business hence the investor should helps the enterprises by the way of minimizing the also have adequate knowledge about investment competitiveness. It also helps the venture funding and round of investment to back in capitalists to build their network and to fund 2. Referrals from investee Co.s of the VCs: This is 3
  9. 9. Vol.1 No.3, June 2012 a very good source of getting the investment. In ü Matching the anticipated growth rate: This is these steps the entrepreneur does lot of ground another important factor the entrepreneur should work before selecting such investment companies. focus into, as the business will be in the verge of Referrals from the previous companies saves lot of break even for few years matching anticipated time for the entrepreneur in performing due growth rate would always helps the firms to make a diligence and such ground work definitely brand name within short span of time. contributes for the growth of the business as well ü Matching the amount of capital required and3. Professional conduct of the partners and their liquidity: The amount of working capital required knowledge of the industry: Knowledge of the should be determined on the day to day basis in partners acts as a platform in performing the due order to match the liquidity position of the diligence by selecting the right type of investors. business This intern has a effect on the goodwill of the ü Age and Stage development: Entrepreneurs business and helps to perform better corporate should also have the impact of competition on the social responsibility. business hence the entrepreneur should know the4. Cleary defined value additions: Defined values, SWOT of the business this ensures the business to vision, mission, all these terms add value not only make effective stage by stage development and to the business but also to the partners and investee growth over a period of time. companies as well. This makes the business ü Fit with the new stage development: Last but not partner to predict the required investment with in the least the entrepreneur should also focus into the required time gap and helps such business to new dimensions in which the business should run achieve anticipated growth and also he should have a vision of diversifying business in the long runCHALLENGES AHEADü Perceived risk: Though it is risk to invest in new CONCLUSION business, it is suggested that, the investee company Entrepreneurship is certainly a boon for the country should perform enough due diligence before like India. This has to be properly rooted through an making such investment as there is always a effective investment, framing the strategies, selecting perceived risk. the right type of Investee Company. For this, one has toü Industry and market risk attractiveness of understand the various investment techniques available technology: From the entrepreneurs point of for the entrepreneurs in the incubation process. Hence view, there is always new technology transfer, an attempt is made to bring down some of the important competition which is being the case, of business in concepts of venture capital and its use for the short run. It has to focus on getting back the return entrepreneurs. on investment.REFERENCESŸ ICFAI Journal for Applied Finance, ICFAI university Press Vol. 16 2010.Ÿ New Venture Creation, Entrepreneurship for 21st Century by Jeffry A Timmons, Stephen Spinelli, Tata Mc. Graw Hill Edition.Ÿ PowerPoint presentation of Venture capital funding by private financing advisory network..Ÿ How Venture Capital Works, Report by Indian Venture Capital Association, IVCA Report.Ÿ Sources of Venture Capital by Spencer Stuart NVCA Research Report on Venture Capital.Ÿ Venture Capital at the Crossroads by W.D Bygrave, J.A Timmons Boston, Harward Business School Publishing Corporation.Ÿ Launching and Building Entrepreneurial Companies by Harry A Sapienza and Jeffry A Timmons, conference proceedings of Babson Entrepreneurship Research Conference. 4
  10. 10. Vol.1 No.3, June 2012 Workplace Stress- The Theoretical Study on Reasons and Coping Methods of StressVaibhav Misra* & Manish Kumar Srivastava**ABSTRACT The author emphasized on Organizational Stress in this study. The author focused on the reasons that causes stressand also focused the measures or methods of coping up with the stress. The study is based on theoretical framework;therefore the author studied the literatures related to the topic extensively. The author worked on following objectives:Ÿ To identify the organizational stressorsŸ To identify the reason that causes employee stressŸ To find out the suitable methods to cope up with stress After finding out the objectives or basis of study the author designed the methodology of working. The author foundthat the study is based on secondary data, the author collected the secondary data by means of internet, journals andbooks. The author considered teachers lectures, authors views, employees and managers opinion as primary data forthe study. The author identified the causes of employee stress and the methods of coping with the stress in this study.Keywords- Organizational Stress, Reasons of Stress, Employee Stress, Coping Methods of Stress.INTRODUCTION STRESSORS RECOGNITION An organization is a social arrangement for the Recognizing the stressors is the key to the stresscontrolled performance of collective goals (Buchanan, management technique. There are many recognizedHuczynski, 2005). The organizations operate through stressors as well as the ways to categorize them.division of labor and allocation of functions, and well Donovan and Kleiner (1994) assert that stress can bedefined hierarchy of authority and responsibility. derived from three sources: physical, mental andHowever, each organization is faced with internal and situational. Physical stress can be brought on by suchexternal pressures which may cause psychological things as overwork, lack of rest and a poor diet. Mentalstress. Stress, is “an adoptive response, mediated by stress can be traced to a persons mental state of mind. Itindividual characteristic and psychological processes, involves our hopes, fears and regrets from our day-to-that is consequence of any external action, situation or day life. Situational stress is derived from ourevent that places special physical, psychological interaction with the outside world – our roles asdemands upon a person” (J M Ivancevich and M T husband, father, wife and mother and also ourMatteson, 1980) which may result into high labor interaction with the trappings of modern life such asturnover and absenteeism rate, low productivity, cars, computers, etc.reduced performance, ineffectiveness, and inefficiencylevels that also affect the psychological, social and TWO SIDES OF STRESSphysical health of the employees. Stress could be beneficial or detrimental. A beneficialOperationally defined, stress is the dysfunctional, stress or so-called Eustress (Rojas and Kleiner, 2000),psycho-physiological response to excessive emotional has the following positive effect:challenges or inordinate instinctual demands (Juniper, · Proper stress increases the breathing, level of2003). During stressful conditions the body reacts in adrenaline, production of coagulants in thespecial manners to prepare itself for the action that it is blood, heart rate and consequent bloodthreatening us, which influences our performance to pressure, in this condition the employee isdifferent extent. In modern times when our daily life is evoked to cope with the heavy work moremuch more competitive than ever before, stress plays efficiently;an important role in how successful or unsuccessful weare in our productive work activity, and so the entire · In the appropriate stressful condition theorganizations performance. Because of the role it employees wisdom could be fully exploitedplays, imperfect stress management has become a new and the employees response could speed up,challenge faced by managers in the enterprises so that the working efficiency is enhanced.nowadays. The detrimental stress or so-called Distress (Rojas and Kleiner, P103), has the following* Vaibhav Misra Research Scholar, Department of Management NIMS University, Jaipur, Rajasthan** Manish Kumar SrivastavaAssistant Professor, Department of Management Shri Ram Swaroop Memorial Group of Professional Colleges Lucknow 5
  11. 11. Vol.1 No.3, June 2012 negative effect: stress as a situation which will force a person to deviate from normal functioning due to the change (i.e. disrupt · In over stressful conditions, blood flow is or enhance) in his/her psychological and/or diverted away from extremities such as the physiological condition, such that the person is forced hands and the feet, breathing becomes shallow to deviate from normal functioning. and rapid in an attempt to increase oxygen From the definition that has been identified by levels in the body, and blood sugar production researchers, we can conclude that it is truly important which increases and quickens metabolism to for an individual to recognize the stresses that are release fats and energy into the bloodstream facing by them in their career. Management role of an (Donovan and Kleiner, P31). All of these organization is one of the aspects that affect work- physical reactions threaten the employees related stress among workers (Alexandros-Stamatios health badly; et. al., 2003).Workers in an organization can face · Long-lasting and high-level stress could occupational stress through the role stress that the restrain the employees brain response and management gave. Role stress means anything about body motivations, so that the working an organizational role that produces adverse efficiency is reduced. consequences for the individual (Kahn and Quinn, 1970). Management will have their own role that stands · The potential cost of stress to organizations, as their related. Role related are concerned with how through, for example, high turnover, individuals perceive the expectations others have of absenteeism, low morale, and reduced them and includes role ambiguity and role conflict productivity has been noted frequently (Alexandros-Stamatios et. al., 2003). (McHugh and Brennan, 1993) Family and work are inter-related andConsequently, managers should maintain the stress in a interdependent to the extent that experiences in oneproper extent to maximize the staffs working area affect the quality of life in the other (Sarantakos,efficiency. 1996). Home-work interface can be known as the overlap between work and home; the two wayOBJECTIVES OF THIS STUDY relationship involves the source of stress at work · The author will work on the following affecting home life and vice versa affects of seafaring objectives: on home life, demands from work at home, no support from home, absent of stability in home life. It asks · To identify the organizational stressors about whether home problems are brought to work and work has a negative impact on home life (Alexandros- · To identify the reason that causes employee Stamatios G.A et al., 2003). For example, it questions stress whether the workers have to take work home, or · To find out the suitable methods to cope up inability to forget about work when the individual is at with stress. home. Home-work interface is important for the workers to reduce the level of work-related stress.RESEARCH METHODOLOGY According to Lasky (1995) demands associated with Authors had mainly collected secondary data to family and finances can be a major source of extra-prepare this paper. Authors also add personal thinking, organisational stress that can complicate, or eventeachers lecture and local peoples thinking about the precipitate, work-place stress. Russo & Vitalianotopic. In this sense, this paper consists of both types of (1995) argued that the occurrence of stressors in thedata i.e. primary and secondary. workplace either immediately following a period of chronic stress at home, or in conjunction with other Primary data is authors opinion, teachers lecture major life stressors, is likely to have a marked impactand employees and managers opinion about the topic. on outcome.Secondary data is the ideas collected from some Several studies have highlighted the deleteriousspecialists articles which were collected from internet. consequences of high workloads or work overload. According to Wilkes et al. (1998) work overloads andLITERATURE REVIEW time constraints were significant contributors to work Numerous studies found that job stress influences stress among community nurses. Workload stress canthe employees job satisfaction and their overall be defined as reluctance to come to work and a feelingperformance in their work. Because most of the of constant pressure (i.e. no effort is enough)organizations now are more demanding for the better accompanied by the general physiological,job outcomes. In fact, modern times have been called as psychological, and behavioral stress symptoms.the “age of anxiety and stress” (Coleman, 1976). The Al-Aameri AS. (2003) has mentioned in his studies thatstress itself will be affected by number of stressors. one of the six factors of occupational stress is pressureNevertheless, Beehr and Newman (1978) had defined originating from workload. Alexandros-Stamatios 6
  12. 12. Vol.1 No.3, June 2012G.A. et al. (2003) also argued that “factors intrinsic to sycophant, no reward and incentive system for goodthe job” means explore workload, variety of tasks and work and no accountability on corruption andrates of pay. avoidance of work and untrained man power in the Rapidly changing global scene is increasing the offices. Absence of proper arrangement of training ofpressure of workforce to perform maximum output and the employees also leads to stress.enhance competitiveness. Indeed, to perform better to If the above cited malevolencies and prejudices aretheir job, there is a requirement for workers to perform prevalent in the manpower of any organization, surelymultiple tasks in the workplace to keep abreast of they will fall prey to tensions, frustrations andchanging technologies (Cascio, 1995; Quick, 1997). A pressures, which are the major causes of in UK indicated that the majority of the workers Common signs of stress include increased heart rate,were unhappy with the current culture where they were high blood pressure, muscle tension, mental depressionrequired to work extended hours and cope with large and an inability to concentrate. Typical reactionsworkloads while simultaneously meeting production include social withdrawals, increased use of tobacco,targets and deadlines (Townley, 2000). alcohol, or drugs and feelings of helplessness andRole ambiguity is another aspect that affects job stress depression about the situation. The problem ofin the workplace. According to Beehr et occupational stress has been of great concern to manyal. (1976), Cordes & Dougherty (1993), Cooper industrial organizational psychologists because(1991), Dyer & Quine (1998) and Ursprung (1986) role researches indicate that if undue stress is imposed onambiguity exists when an individual lacks information employees, it will affect the job performance and theirabout the requirements of his or her role, how those role psycho-somatic health that is, physical and mentalrequirements are to be met, and the evaluative health as well. The industrial/organizationalprocedures available to ensure that the role is being psychologists focused their attention on the causes andperformed successfully. Jackson & Schuler (1985) and effects of stress in the work place for two reasons. First,Muchinsky (1997) studies found role ambiguity to lead there is a general awareness that stress-related diseasesto such negative outcomes as reduces confidence, a are wide-spread, and that more people are disabledsense of hopelessness, anxiety, and depression. today as a result of stress than at any other time in history. Secondly, stress on the job is costly and isENVIRONMENTAL FACTORS CAUSING reflected in a form of lower productivity and poorSTRES performance in the organization.Senvironmental factors which may causestress can be categorized into: STRESS MANAGEMENT METHODS Ÿ Individual level Then how to control the stress of the employees Ÿ Group level under an optimistic extent? A great number of methods Ÿ Organization level can be found in the existed literatures. For instance, Ÿ Extra-organizational level Bland (1999) summarized the methods into such types as the pragmatic, spartan, touch-feely and new age. The potential stressors in the individual context are Ivanevich et al. (1990) described three broad categoriesjob demand, work over load, role conflict, role of stress management intervention. The first type ofambiguity, work/family conflict (T. A. Judge and J. A. intervention focuses on the situation and aims to reduceColquitt, 2004), and fear of losing job. Job loss can turn the stressors present.into a very stressful event causing decreased The second and third categories focus on thepsychological and physical well being. employees, and aim either to change the employeesInterestingly, sleeplessness or insomnia may also cause cognitive appraisal of the situation, or to helpstress and strain. Various studies indicate that even to employees cope more effectively with theeight hours of sleep significantly contributes towards consequences of stress by increasing their copingalertness, restoration of energy, performance, creativity resources. Based on the existed achievements and theand critical thinking. Job pay differentials, inequities, authors own experiences, the author suggests theambiguous procedure, unrealistic job description, too following stress management methods from both themuch of centralization, high degree of specialization, managers view and the employees view.line –staff conflict, over crowding, safety hazards, poorcommunication system, unfair control system, ŸMETHODS FROM THE MANAGERS VIEWinadequate information, inappropriate system of · To adjust the conception towards stress atpromotion, posting and transferring of their workplaceemployees, poor intra-and-interpersonal relation of the The first task of employees who want toemployees, lack of coordination and cooperation manage the stress better is learning how toamong the employees, favoritism, nepotism, lack of adjust their emotion in unchangeable workingaccountability, absence of justice, authority used for condition and environment. (Bland, P45).personal benefit, vested interest and violation of merit. The unnecessary worry about stress mayIn such environments majority of the people become become a new stressor on the contrary. 7
  13. 13. Vol.1 No.3, June 2012 However, even in a healthily developing physiologically and psychologically. The company, every employee would feel stress. physiological techniques include breathing, What the employees have to do is to keep the meditation, exercising, massaging, etc; and stress in a beneficial extent and transform it into driving forces. the psychological techniques include · To enhance time management imagining sitting in a comfortable place, Employees that allocate their time in an looking at life differently and learning to relax orderly way can accomplish more tasks and and enjoy it, setting appropriate goals for you feel less stress than those in a chaotic way, in and so on. the same time. Therefore, understanding and applying the principles of time management CONCLUSION can help people to cope with the stress at After reviewing the literatures on the study the work. The principles of time management are author concluded that stress is one of the most as follows: important factors in increasing or decreasing human · Listing up the things to be done in capacity of working. The author studied about the each day; various causes such as individual level cause, group · Arranging these things in order level cause, organizational level cause and extra according to their importance and organizational level causes which are responsible for emergency; generating the stress. The author also focused on the · Arranging the agenda based on the various measures through which employees can cope order; up with the stress. These methods of stress coping are · Clarifying the regular pattern of your divided into two ways- the first one is based on physiology cycle and to implement managers views and the second one is based on the most important thing when you employees view. are most efficient and clear-headed. The author also discussed about the outcome · To try variable techniques to alleviate the of stress that is, till what extent the person can be stress affected from stress. The author suggests manager to There are many techniques employees would consider the reason of stress and also use different methods to cope their subordinates from stress. like to apply to alleviate the stressREFERENCES · Al-Aameri A.S., 2003. “Source of job stress for nurses in public hospitals”, Saudi Medical Journal, 24(11), pp.1183-1187. · Alexandros-Stamatios G. A., Matilyn J.D., and Cary L.C., 2003. “Occupational Stress, Job satisfaction, and health state in male and female junior hospital doctors in Greece”, Journal of Managerial Psychology, 18(6), pp. 592-621. · Beehr, T.A. & Newman, J.E.,1978. “Job Stress, Employee Health and Organizational Effectiveness: A Facet Analysis, Model and Literature Review”, Personnel Psychology, 31, pp.665-669. · Beehr, T.A., Walsh, J.T., & Taber, T.D. 1976. “Perceived situational moderators of the relationship between subjective role ambiguity and role strain, Journal of Applied Psychology, 61, pp.35-40. · Bland, M., 1999, “A new approach to management of stress”, Industrial and Commercial Training, Volume 31, Number 2, pp. 44–48 · Cascio, W.F., 1995. “Wither industrial and organizational psychology in a Changing world”? American Psychologist, 50, pp.928-939. · Coleman J.C. 1976. Abnormal Psychology and Modern Life (Indian reprint), Taraporewalla, Bombay. · Cooper, C.L., 1991. Stress in organizations. In M. Smith (Ed.). Analysing Organisational · Behaviour. London: MacMillan. · Cordes, C.L., and Dougherty, T.W. 1993. “A review and integration of research on job · burnout”, Academy of Management Review, 18, pp.621-656. · Donovan, S. B. and Kleiner, B. H., 1994, “Effective Stress Management”, Managerial Auditing Journal, Vol. 9, No. 6, 1994, pp. 31-34 · Dyer, S., & Quine, L. 1998. “Predictors of job satisfaction and burnout among the direct care staff of a community learning disability service”, Journal of Applied Research in Intellectual Disabilities, 11 (4), pp.320- 332. · Huczynski B. 2005 Organizational Behavior: An Introductory Text, London: Prentice Hall. 8
  14. 14. Vol.1 No.3, June 2012· Ivancevich J. M. and Matteson M. T. 1980. stress and work: A Managerial Perspective (Glenview, IL: Scott, Foresman,), pp. 8-9.· Ivanevich, J.M., Matteson, M.T., Freedman, S.M. and Philips, J.S., 1990, “Worksite Stress Management Interventions”, American Psychologist, Vol. 45 No. 2, pp. 252-61· Jackson, S.E., & Schuler, R.S. 1985. “A meta-analysis and conceptual critique of research on role ambiguity and role conflict in work settings”, Organisational Behavior and Human Decision Processes, 36, pp.16-78.· Judge T. A. and Colquitt J. A. 2004. organizational justice and stress: the mediating role of work-family conflict. Journal of applied psychology. pp 395-404· Juniper, D., 2003, “Leisure counseling in stress management”, Work Study, Vol. 52, No.1, pp7-12· Kahn, R.L., & Quinn, R.P. 1970. Role stress: A framework for analysis, In A. McLean (Ed.), Occupational mental health, New York: Wiley.· Lasky, R.G, 1995. Occupational stress: a disability management perspective. In D.E. Shrey & M. Lacerete (Eds.). Principles and Practices of Disability Management in Industry, pp.370-409.· McHugh, M. and Brennan, S., 1993, “Managing Work Stress: A Key Issue for all Organization Members”, Employee Counseling Today, Vol. 5 No. 1, pp. 16-21· Muchinsky, P. 1997. Psychology applied to work: An introduction to industrial and organizational psychology (5th Ed.). Pacific Grove, CA: Brookes/Cole Publishers.· Quick, J.C. 1999. “Occupational health psychology: The convergence of health and clinical psychology with public health preventive medicine in an organizational context”, Professional Psychology: Research and Practice, 30(2), pp.123-128.· Rojas, V. M. and Kleiner, B. H., 2000 “The Art and Science of Effective Stress Management”, Management Research News, Volume 23 Number 7/8.· Russo, J., & Vitaliano, P. 1995. “Life events as correlates of burden in spouse caregivers of persons with Alzheimers disease”, Experimental Ageing Research, 21, pp.273-294.· Sarantakos, S. 1996. Modern Families, South Yarra: MacMillan Education Australis Pty Ltd.· Sutherland, V. J. and Cooper, C. L., 1997, 1999, Strategic Stress Management, Chinese version, translated by Xu hai-ou, Economics & Management Press, Li yuan, China Peoples University Press.· Townley, G. 2000. “Long hours culture causing economy to suffer”, Management Accounting, 78 (6), pp.3-5.· Ursprung, A.W. 1986. “Incidence and correlates of burnout in residential service settings”, Rehabilitation Counselling Bulletin, 29, pp.225-239.Ÿ Wilkes, L., Beale, B., Hall, e., Rees, E., watts, B., Denne, C. 1998. “Community nurses descriptions of stress when caring in the home”, International Journal of Palliative Nursing, 4 (1). 9
  15. 15. Vol.1 No.3, June 2012 A Comparative Study of Registered & Foreign Venture capital Investment with special reference to BT Sector in IndiaMr. G Srinivasa* & Sir M Visvesvaraya**ABSTRACT Investment plays a key role in setting up of the business, initial investment has grabbed more concern ofpromoters today as there are different funding options for setting up of the business. It is the selection of the type ofinvestment which plays a key role in return and smooths functioning of the business. Promoters reluctance for thenew investment has become one of the stumbling block as far as the risky investments are concerned hence, toaddress this issue ,the government has also taken adequate measures to promote the small and medium enterprises,it is needless to say that there is a gradual improvement in the flow of investment in the above sectors in recent yearsbecause of the various factors such as Growth opportunity, Cost of capital, risk and return aspectsINTRODUCTION OBJECTIVES Venture capitalists today are focusing on the 1. To know the range and amount ofemerging sectors which can get the maximum returns Investment in terms of different sectorswith the least cost of capital. As the venture capitalists 2. To do a comparative study on the flow ofnot only provides the funding but also provides the investments in terms of each sectorsectors for the development in lieu of non financial 3. To analyze Risk and return of both venturesupport, this certainly adds value to the investment and capital investment and Foreign venturemakes the business lively . Venture capital today has capital flow in terms of cumulativeflows almost to all sectors of the Indian industries as investmentcompared to the decade before. The focus of the 4. To suggest and project the best sectorventure capitalists has taken a different shape by which attracts the above investments in thefinding out not only the different sectors of investment nearby futurebut also, the investment of portfolio has taken a METHODOLOGYdifferent shape in the emerging market conditions. The (1) Ho: - The Range of investment is more inamount of registered venture capitalists has also Bio technology as far as the other sectors areincreased drastically over the last decade period of time concernedadding additional input and sector wise input for the H1:- The Range of investment isdevelopment etc., which in turn has this turn has made cumulatively less in Bio Tech as far as theimpact on the promoters as well. As compared to last other sectors is concerneddecade there is improvement in the promoters (2) Ho:- Risk and return of the Foreign venturecontributing for the successful entrepreneurship capital investors are more in terms of The paper titled “An empirical study on the Cumulative investment as far as the BTVenture capital investment with special reference to sector is concernedBio technology industry in India” talks about the H1:- Risk and return of the foreign ventureemerging trends in the venture capital industry and capital investors are relatively less in termsflow of investment of venture capital in the recent of Cumulative investment as far as the BTyears. The paper also tries to bring out the sectors wise sector is concernedinvestment made by the venture capitalists from thebeginning to the year end and gives the scope for the SOURCES AND TOOLS USED FOR DATAfurther investments to be made or possible in the COLLECTIONupcoming years. Risk and return of these investments 1) As the Study is based on the Technicalare also shown with a view to give focus on the Analysis Previous data relating to flow ofupcoming emerging sector where investments can be cumulative investment in terms of bothdone. The paper also brings various evidences based venture capital investment and foreignon which conclusions are drawn. To sum up a venture capital investment is taken togethercomparison is drawn in terms of risk and return of the from the compiled report of SEBIsector wise venture capital funded enterprises in the (submitted by both registered venturerecent years and suitable conclusions are drawn from capital funds and foreign venture capitalthe same. investors).*Mr. G Srinivasa, Faculty, Department of Management Studies**Sir M Visvesvaraya, Institute of Technology, Bangalore & Research Scholar, Bharathiar University, Coimbatore 10
  16. 16. Vol.1 No.3, June 2012 2) The information so taken is compiled through The information related to different options tabulation. Percentage analysis is used to available for the entrepreneur has been clearly bought determine the flow of investment in terms of in the article “Corporate Venture Capital: Seeking each sectors there by Risk and return is also Innovation and Strategic Growth” by Dheeraj Pandey calculated by using the statistical tools such as and Thillai Rajan A (2011) The article tries to bring out Standard Deviation and Variance analysis the effect of venture capital fund on the dot com and 3) Conclusion is drawn on the basis of range of authors has also made a point of comparison between risk and return obtained by using the above equity fund and venture capital fund in the Indian mentioned statistical tools and projected flow context. The data analyzed also shows the of investment and sector is identified attractiveness as well as immatureness of Indian VC accordingly. industry in compare and contrast with US VC industry (sector wise). The article emphasizes on the relativeREVIEW OF LITERATURE valuation of venture capitalists and the other options such as equity fund etc. The Risk associated with the Venture investment isclearly quoted in the article “Venture Investing worth Shepherd (2008) “Researchers of Venturethe Effort? A Study of Keiretsu Forum” where the Capitalists Decision Making, Beware!” workingauthors has examined the returns with the Venture paper, 1-8. States that Most of the venture capitalists docapital investing and study analyzed about the invest on the projects based only on the profitability anddynamics of angel investment groups. The author here they lack introspection into the policies. The findingshas focused on the angel investing in Silicon Valley and show that venture capitalists lack introspection intothe returns from the investments made by a group, their profitability assessments. However, the findingsKeiretsu Forum, and the processes used by the group to also demonstrate some introspective ability intoobtain those returns. The researchers also feels that probability of survival assessments and most of theUnderstanding the risks, returns, and dynamics of research is not based on the value judgment in terms ofVenture investment should encourage greater potential biases and errors associated with self reportedparticipation in the early stage investment ecosystem da.and foster economic growth (Morrisette, 2011).ANALYSIS Cumulative Investments As on March 31, 2011 (Rs. in Crore) SL NO Sectors wise economy VCF FVCI Total % on total 1 Information Technology 563 2787 3103 18.14 2 Telecommunications 777 6199 6532 11.89 3 Pharmaceuticals 568 1089 1442 39.38 4 Biotech 228 188 329 69.3 5 Media 584 763 883 66.13 6 Services Sector 902 2157 2327 38.76 7 Industrial projects 875 1451 1672 52.33 8 Real estate 5584 3397 7473 74.7 9 Others 8192 10863 15288 53.58 Total 18273 28894 39051 11
  17. 17. Vol.1 No.3, June 2012 The above tabulated information depicts the total percentage flow of investment in each sector for the month ofMarch 2011. Out of the total cumulative investment made registered venture capitalists hold maximum percentage with(69.3) in terms of Bio technology sector. This is the next best sector compared to Media with (66.13) Cumulative Investments As on June 2011 (Rs. in Crore) SL NO Sectors wise economy VCF FVCI Total % on total 1 Information Technology 538 3367 3362 16 2 Telecommunications 858 6321 6612 12.97 3 Pharmaceuticals 507 1085 1395 36.34 4 Biotech 212 198 323 65.6 5 Media 817 788 1114 73.33 6 Services Sector 1100 1964 2380 46.2 7 Industrial projects 1071 1504 1924 55.66 8 Real estate 7943 3152 9590 82.82 9 Others 8454 12341 16686 50.66 Total 21500 30722 43686 12
  18. 18. Vol.1 No.3, June 2012 The above tabulated information depicts the total percentage flow of investment in each sector for themonth of June 2011. From the analysis it is been observed that registered venture capital firms are performing wellin Media (i.e. to next to real estate) as compared to Foreign investment, through there is more flow of cumulativeinvestment in real estate. Comparatively media has overtaken the biotech in terms of total percentage .This signifiesthat media has also attracted a combined leverage which has made both registered venture capitalists and foreignventure capitalists to invest. Cumulative investments as on September 2011 ( Rs in Crores) SL NO Sectors wise economy VCF FVCI Total % on total 1 IT 529 3026 3324 16 2 Telecommunications 856 7466 7789 10.9 3 pharmaceuticals 538 1050 1411 38.12 4 Biotech 212 146 313 67.7 5 Media 847 801 1166 72.64 6 services sector 1222 1911 2606 46.89 7 industrial projects 1155 1428 1951 59.2 8 Real estate 8180 3151 9828 83.23 9 others 9438 14123 19455 48.5 Total 22977 33102 47843 The above tabulated information depicts the total percentage flow of investment in each sector for themonth of Sept 2011. From the analysis it is been observed that registered venture capital firms are performingwell in Media (i.e. to next to real estate) as compared to Foreign investment, through there is more flow ofcumulative investment in real estate. Comparatively media has overtaken the biotech in terms of total percentagethis signifies that media has still retained combined leverage which has made both registered venture capitalistsand foreign venture capitalists to invest. There is more flow of investment in Bio tech as compared to previousmonth. 13
  19. 19. Vol.1 No.3, June 2012 Cumulative Inv estments as on December 2011 (Rs in Crores) SL NO Sectors wise economy VCF FVCI Total % on total 1 IT 533 3016 3319 16.05 2 Telecommunications 858 7145 7469 11.48 3 Pharmaceuticals 460 985 1325 34.71 4 Biotech 187 140 289 64.7 5 Media 802 701 100 6 79.72 6 Services sector 1215 2039 2677 45.38 7 Industrial projects 783 886 1355 57.78 8 Real estate 8155 3107 9783 83.35 9 Others 10029 15223 20637 48.59 Total 23023 33241 47859 The above tabulated information depicts the total percentage flow of investment in each sector for the month ofDecember 2011. From the analysis it is been observed that registered venture capital firms are performing well in Media(i.e. to next to real estate) as compared to Foreign investment, through there is more flow of cumulative investment inreal estate .Comparatively media has overtaken the biotech in terms of total percentage this signifies that media has stillretained combined leverage which has made both registered venture capitalists and foreign venture capitalists to invest.There is more flow of investment in Bio tech as compared to previous month. 14
  20. 20. Vol.1 No.3, June 2012 Cumulative Investments as on March 2012( Rs in Crores) SL NO Sectors wise economy VCF FVCI Total % on total 1 IT 564 3436 3878 14.54 2 Tel ecommunications 1092 7221 7865 13.88 3 Pharmaceuticals 457 976 1313 34.8 4 Biotech 186 139 288 64.58 5 Media 903 705 1101 82.01 6 Services sector 1168 1903 2493 46.85 7 Industrial projects 947 1102 1735 54.58 8 Real estate 8700 2987 10379 83.82 9 Others 11559 17124 23636 48.9 Total 25576 35593 52688 The above tabulated information depicts the total percentage flow of investment in each sector for the month ofMarch 2012. From the analysis it is been observed that the growth trend in terms of registered venture capital firmsrelated to Media continues (i.e. to next to real estate) as compared to Foreign investment, through there is more flow ofcumulative investment in real estate. Comparatively media has overtaken the biotech in terms of total percentage. Thissignifies that media has still retained combined leverage which has made both registered venture capitalists and foreignventure capitalists to invest, Perhaps the bio tech is remained as a third best in terms of flow of investment. Cumulative Investments as on June 2012( Rs in crores) SL NO Sectors wise economy VCF FVCI Total % on total 1 IT 554 3475 3961 13.98 2 Telecommunications 1092 7234 7878 13.86 3 Pharmaceuticals 464 971 1316 35.25 4 Biotech 167 141 272 61.39 5 Media 924 718 1119 82.57 6 Services sector 1334 2191 2837 47.02 7 Industrial projects 1030 1202 1919 53.67 8 Real estate 9131 2962 10784 84.67 9 Others 11526 18204 24759 46.55 Total 26222 37098 54844 15
  21. 21. Vol.1 No.3, June 2012 The above tabulated information depicts the total percentage flow of investment in each sector for the month ofJune 2012. From the analysis it is been observed that the growth trend in terms of registered venture capital firms relatedto Media continues (i.e. to next to real estate) as compared to Foreign investment, through there is more flow ofcumulative investment in real estate. Comparatively media has overtaken the biotech in terms of total percentage thissignifies that media has still retained combined leverage which has made both registered venture capitalists and foreignventure capitalists to invest. Perhaps the bio tech is remained as a third best in terms of flow of investment Comparative Risk and return of the Venture capital investments in Total Cumulative Investment SL Sectors Wise Sep- Dec- Mar- Jun- Grand NO Economy Mar-11 Jun-11 11 11 12 12 Total SD Variance 1 IT 563 538 529 533 564 554 3281 15.458547 238.96667 2 Telecom 777 858 856 858 1092 1092 5533 135.18346 18274.567 3 Pharma 568 507 538 460 457 464 2994 46.596137 2171.2 4 Biotech 228 212 212 187 186 167 1192 44.858295 503.06667 5 Media 584 817 847 802 903 924 4827 243.56491 14830.967 6 Service sector 902 1100 1222 1215 1168 1334 6941 146.50108 42925.133 7 Industrial projects 875 1071 1155 783 947 1030 5861 271.68928 18453.767 16
  22. 22. Vol.1 No.3, June 2012 The above table shows the Risk and volatility of each sector, through there is more flow of registered venturecapital investment in Services sector (i.e. Next best to “real estate which is not considered because of the Constantgrowth potential and returns) followed by Industrial projects, Telecommunications and Media. Comparative Risk and return of the Foreign venture capital investments in Total Cumulative Investment SL Sectors Wise Mar- Jun- Sep- Dec- Mar- Jun- Grand NO Economy 11 11 11 11 12 12 Total SD Variance 1 IT 2787 3367 3026 3016 3436 3475 19107 280.167628 78493.9 2 Telecom 6199 6321 7466 7145 7221 7234 41586 532.137952 283170.8 3 Pharma 1089 1085 1050 985 976 971 6156 55.1942026 3046.4 4 Biotech 188 198 146 140 139 141 952 26.889899 723.066667 5 Media 763 788 801 701 705 718 4476 43.744714 1913.6 6 Service sector 2157 1964 1911 2039 1903 2191 12165 123.886642 15347.9 7 Industrial projects 1451 1504 1428 886 1102 1202 7573 241.833345 58483.3667 The above table projects the flow of investment risk and volatility in terms of Foreign Venture. Capitalists areconcerned that the table gives a different picture with more amount of risk related to telecommunications looking intothe growth potential of the business. The range of risk is also more in terms of IT and Industrial projects; because of thehigh volatility of market recurring investment flow of foreign investment is also more.CONCLUSION the foreign venture capital investment 4. Looking into the risk and return of the 1. The study concludes that the flow of Registered venture capitalists, risk seems to registered venture capital investment is more be comparatively less as far as the BT is in Services sector(6941) with a risk of concerned i.e. (44.85) as compared to other (146.50). The risk in terms of industrial sectors. projects are more (271.68) with less 5. As far as the Foreign Venture capital volatility(18453)as compared to services investment is concerned it is been observed sector(42925). t h a t R i s k i s m o r e i n Te r m s o f 2. The risk in terms of Media is also Telecommunications(532.13)followed by More(243.56) with the volatility IT(280.16) & Industrial Projects (241.83) BT being(14830) this can attract further has emerged as a Least Risk Sector with investment in future because most of the (26.889) and so called less volatile sector with Venture capitalists prefer to invest in risky variance being(723.079) projects 6. The positive trend of flow of investment in 3. From the above analysis it is also pointed out terms of Telecommunications(41586) likely that Range of investment of registered venture to continue in near future also with the risk of capitalists in Bio tech is relatively more than (532.13) volatility of returns being(283170) 17
  23. 23. Vol.1 No.3, June 2012 7. The flow of Investment as far as the Industrial Venture capital investment is Relatively high projects are concerned is relatively less as in Telecommunications(532.13)followed by compared to other sectors (7573) with a risk of IT(280.16) & Industrial Projects (241.83) (241.83) and volatility of returns hence Alternate Hypothesis i.e. (H1) is being(58483) this shows that there is more Accepted scope for investment in the near future 10. To sum up Services sector can attract more 8. From the study it is been observed that amount of Investment and can become one of services sector is booming with more flow of the Emerging investment sector as far as the investment, less risk and less volatility of Registered Venture capitalists are concerned, returns hence as far as the first objective is subsequently as far as foreign venture capital concerned Null Hypothesis is Rejected investment is concerned there may be a turn of 9. The Overall Risk and return of the Foreign investment towards Industrial projects.Ÿ REFERENCES Ÿ “Venture Investing worth the Effort? A Study of Keiretsu Forum” (Morrisette, 2011). Ÿ “Corporate Venture Capital: Seeking Innovation and Strategic Growth” by Dheeraj Pandey and Thillai Rajan A (2011). Ÿ Shepherd (2008) “Researchers of Venture Capitalists Decision Making, Beware!” working paper, 1-8. Ÿ Compiled report of SEBI (submitted by both registered venture capital funds and foreign venture capital investors). Ÿ Report on trends and investments RBI Bulletin 18
  24. 24. Vol.1 No.3, June 2012 ITC-e chaupal”- A Strategic Agribusiness Approach towards Strengthening the Market Reach in Rural IndiaDr. K.K Agarwal* & Preeti Singh**ABSTRACT The direct contribution of the agriculture sector to national economy is reflected by its share in total GDP, itsforeign exchange earnings, and its role in supplying savings and labor to other sectors. However the contributionhas been decline in the last two decades. The traditional market structure of the agriculture leads to exploitation ofthe poor and illiterate farmers by the intermediaries. The ITC E-chaupal supply chain model is a strategicagribusiness approach to free this vulnerable section from the clutches of the intermediaries by making them awareabout the market and other such information necessary for better farming. The success of E-choupal has signaled anew era in the Indian agro-sector and is a win-win partnership between the farmers and the organization.INTRODUCTION mobility of people. The mantra for sustainable growth In the early 19th century, agriculture was a self- of the Indian agrarian economy is the constantcontained industry which meant a farm family integration of skillful and innovative techniques intoproducing its own food, fuel, shelter, draft animals, and the entire food production system translating intoperforming nearly all operations related to the commercial profits for all stakeholders of the Indianproduction, processing, storage and distribution of agri system. The e-Choupal model has beenfarm commodities. However agriculture evolved from specifically designed to meet the challenges posed byself-sufficiency to symbiotic relationship with other the distinct features of Indian agriculture, characterizedsegments of the economy specifically allied to by fragmented farms, weak infrastructure and themanufacturing of production supplies and the involvement of numerous intermediaries, who restrictprocessing and distribution of food and fiber products. critical market information from reaching to theThe traditional role of agricultural sector as the engine farmers and ultimately using it for their own benefits.of growth of the economy was overtaken by themanufacturing, industrial and services sector. Some of STRATEGIC ORIENTATIONthe reasons for decline of the agricultural sector were OF AGRIBUSINESSthe unfavorable process of the agriculturalcommodities, increased prices of the farm inputs, Dunne (1999) identifies three basic forces thatshortage of agricultural labor (due to migration to drive change in the agri-business sectorindustrial jobs; increased competition for land use; and 1. The globalization of marketthe more favorable policies accorded to the industrial 2. The rapid advances in technologysector that could have made investment in agriculture a 3. The greater involvement of people in whatless attractive alternative.) The traditional market and how to produce.structure of farming consisted of local, govt mandatedmarket place called mandi where these farmers having Figure 1: The Forces of Changesmall landholdings sold their crops to local traders whoin turn sold it to other buyers. Agriculture being one ofthe strongest sectors of the Indian economy, accountsfor 14.6 per cent of the countrys gross domesticproduct (GDP) in 2009-10, and 10.23 per cent(provisional) of the total exports. Furthermore, thesector provided employment to 55 per cent of the workforce The evolution from agriculture to agribusiness hasbrought numerous benefits. These include drudgery forlaborers, the release of workers for non-agriculturalendeavors, a better quality of food and fibers; a greatervariety of products; improved nutrition; and increased*Dr. K.K Agarwal Professor Faculty of Commerce and Management, MGKVP Varanasi**Preeti Singh Research Scholar Dept of Commerce, MGKVP Varanasi 19
  25. 25. Vol.1 No.3, June 2012Source: Dunne and Colins 2001 income for farmers in relation to the other Indians. Globalization has been substantially successful in Table 1: Consumption of Diet Diversified acrossliberalizing trade in manufacturing goods; progress in consumer groupsthe agribusiness sector has been limited because of theimportance of food and fiber industries to the socialfabric and national security of individual countries.Very fast development in the fields of biotechnologyand communication, have revolutionized the way foodand fiber products are produced, processed, distributedand consumed. People have strong influence in theagribusiness sector as they have dual roles ofconsumers and guardians. Changes in thedemographics, incomes and social awareness of peoplehave also influenced how these products will beproduced and made available to the public. Thisawareness has made an impact on the agribusinesssector through increased regulation of how food andfiber products are produced Chart 1: Farmer Base Boehlje (1995) claim that these changes havea dramatic impact on the management of anagribusiness firm because they effect the competitiveenvironment of the firm and influence the way in whichthe management of the firm will reorganize its internalresources to meet these challenges.THE STATE OF INDIAN FARMERS The picture of the Indian farmers is not at allbeautiful. They have small landholdings, weakinfrastructure (physical and social), low literacy andlow income and high dependence on nature andintermediaries which leads to Low productivity – Lowrisk taking ability – Low share of consumer spendingand ultimately they are trapped in the vicious cycle of Source: Gulati (IFPRI) using data frompoverty and underdevelopment. Agricultural Census Division, India ITC-E CHAUPAL E-choupal is an ITCs strategic initiative which has outreached more than 1 million farmers in nearly 11,000 villages within five years of its implementation and still expanding rapidly. Now it has been penetrated over million farmers with a growing a range of crops; soybean, coffee, wheat, rice, pulses, shrimp in over 40,000 villages through nearly 6200 kiosks across ten states, apart from it ITC provides many secondaryFigure 2: Predicament of Indian Farmers services like:Source: Yogi Deveshwar 2004 1. Weather forecasting 2. Soil testing servicesTRENDS IN AGRIBUSINESS 3. Educating farmers on ways to improve crop The composition of diets has diversified across quality, scientific farm practices & riskconsumer groups which are induced by sustained managementeconomic growth and rising per capita incomes, 4. Engaging banks to offer farmers access tourbanization and globalization (Table 1). The credit, insurance, and other servicesproduction system has responded well with an increase 5. Services related to micro-credit, health andin supply of the various products despite a educationpredominantly small farmer base (Chart 1). The basehas continuously showed expansion, but the growth ofAgriculture GDP is slower in comparison of aggregateGDP which has resulted significantly lower per capita 20