...IMPACT OF TARGET IN INDIA Prepared for Richard Thomas, CEO Target, Minneapolis, Minnesota Prepared by Bhumi Gandhi Senior Research Consultant Target, Chicago, Illinois November 22, 2013 EXECUTIVE SUMMARY Target Corporation has decided to expand their business to India. The study was authorized by the CEO of Target when all other crew of the company approved for expansion business to India. The CEO of Target Corporation requested an evidence to show the positive impact of expansion. Our conclusion that Target will have positive impact in India is based on scholarly articles, cultural books and research. In order to achieve success in India, the company will have to consider these aspects of the culture: * Social customs: Target needs to adapt various cultural, religion and taste preferences. * Family life: Big quantities will be sold much faster as the basic building block of Hindu society is the joint or extended family. * Religion and Folk belief: Religion has a huge impact on the daily life of almost everyone in India. Business have to holidays on holy festivals of India. * Economic Institutions: Employees must get paid a monthly salary. Target has to compete with “Kirana” stores that sell groceries and food to consumers at a low price. On the basis of these findings, it is recommended that Target needs to offer products not only at a lower price but with good customer service. Target Corporation has to avoid selling beef...
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...India’s GDP and Information Technology Group 5 – Div A Tejaswini Vaidya Mohit Mittal Harshul Trivedi Akshay Mohta Tomy Augustine Contents India’s GDP 3 IT and India 4 IT and its Contribution to GDP 4 Investments in the IT sector in India 5 Education & its impact on GDP 8 Conclusion 9 India’s GDP India’s GDP has grown steadily since 1991, after the Prime Minister Narasimha Rao initiated the economic liberalization of 1991. The reform reduced tariffs and interest rates, terminated public monopolies and allowed autocratic approval of FDI ( Foreign Direct Investments) in many sectors. Fig 1: India – Gross Domestic Product The GDP of India is essentially divided into three broad sectors. 1. Industry and Services: Accounts for 26.3% of the total GDP 2. Agriculture: 18.1% of the total GDP 3. Services: 56.6% of the GDP 4. Total Labor force: 487.6 million 5. Labor force in services: 34% ~ 165.5 million IT and India India gained recognition due to its IT and ITES sector. The ITES can be broadly classified into IT Services and BPO (Business processing outsourcing). The first software export zone setup in India was in Mumbai, the SEEPZ Park, in 1973. Significant growth has taken place since then in the IT Services sector and consequently the net contribution to the GDP has been growing ever since. India’s reputation as both as a source and a destination for skilled workforce helped improve its relations with a number of world economies...
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...BUSINESS GOVERNMENT AND SOCIETY THE POWER OF INTERNET AND ITS IMPACT IN INDIA INDIVIDUAL ASSIGNMENT PGDM[2013–15] BY: R O H I T K U M A R G O E L [DM15142] SECTION 1 Page |2 CONTENTS S.NO. I II III IV V TITLE INTRODUCTION IMPACT ON BUSINESS PRACTISES AND SOCIETY IMPACT ON GOVERNMENT AND SOCIETY CONCLUSION REFERENCES PAGE NO. 3 3 6 6 8 GREAT LAKES INSTITUTE OF MANAGEMENT | Introduction The internet is a medium that is soaring in polarity in almost every facet of the world and is used for a myriad of reasons by persons, universities, governments and businesses. It is the network that facilitates communication among all the smaller networks and individual computer systems that connect to it. It is growing at an impressive rate due to the many services it facilitates, the ease with which services can be created, the presence of a single standard and the global reach that makes national boundaries invisible. With the dramatic increase in bandwidth, decreasing communication costs and an everincreasing number of organizations using it, the Internet has ushered in a revolution. As far as businesses are involved, the internet usage has been tested to a variety of experimentations that seek to determine the viability of using the internet to improve business practices in various industries in India. One particular aspect of business is that the internet marketing has a great impact on society. Around the world, developed countries have improved their communication systems...
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...Living beyond our means = European crisis In early 2010 economic activities of the PIGS (a group of 4 nations in Europe namely Portugal, Italy, Greece and Spain) have come under increased scrutiny from the international investment community, with the threat of “Sovereign default” lurking around the corner. Sovereign default refers to a situation when government of particular country is unable to repay its debts. This situation of default payments by governments lead to European crisis. With onslaught of the recession and subsequent introduction of various financial stimulus packages, the government expenditure like public job creation, pensions, social benefits etc ..on various countries took on gargantuan proportions to support these packages. To support these packages government was forced to borrow heavily consequently generating high fiscal deficicts.Most countries had manageable fiscal deficit, the government of PIGS nations mopped up a huge debt bill. The state of affairs in Greece which was epicenter of the sovereign default malaise is shamboic as country was known to live beyond its means. Debt Skelton of PIGS [pic] Role over risk in EURO ZONE It is one element played a role in the crisis is “roll-over risk”. Countries involved are exposed to a fiscal crisis (the “bad equilibrium”) to the extent that they are forced to rely on the market to roll-over their debt. Thus, much depends on the amount...
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...After ‘tech savvy’ it is the ‘social media savvy’ that has become synonymous with today’s generation. About 2/3rd of Indians online spend time on different social networking sites like Facebook, Twitter, YouTube, Pinterest, etc. Even the trend of sending personal emails seems to have become obsolete as compared to social media. But why is this media becoming so popular in India? Interaction, live chat, status updates, image- as well as video-sharing are few of the major aspects that play a role in the popularity of social media. On the other hand, customer’s responses, interaction and brand awareness is why the companies are using social media in India and across the globe. Thereby, multiple roles played by social media beyond its core role of mere communicating information are leading to its popularity. By December 2012, the number of social media users in urban India had reached 62 million. A sudden availability of smartphones and mobile Internet has led to a spurt in the use of social media. All the business ventures in India rely on social media to understand their consumer base, for brand awareness and interaction. Indian netizens use social media to build virtual communities, groups and to interact and chat. So, there is no doubt that Information and Technology, in particular rapidly increasing social media plays an important role in shaping the mind of customers towards certain products and brands. At the same time, it is used for entertainment and leisure by most of the...
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...Multinationals and their impact on Labour Scene 28 October, 2012 Multinationals and their impact on Labour Scene Table of Contents 1. BACKGROUND ........................................................................................................................... 2 2. PRE AND POST LIBERALIZATION ............................................................................................... 3 3. INDIAN LABOUR LAWS ............................................................................................................. 4 4. PRESENT SCENARIO OF LABOUR AND MNCs IN INDIA ........................................................... 8 5. PERCEPTION OF LABOUR ABOUT MNCs ................................................................................ 10 6. RECOMMENDATIONS .............................................................................................................. 11 7. INTERVIEW WITH INDUSTRY EXPERTS ................................................................................... 13 8. BIBLOGRAPHY.......................................................................................................................... 15 MDI-PGPM-HRM-Term-II Page 1 Multinationals and their impact on Labour Scene BACKGROUND India was predominantly an agricultural economy till Independence in 1947. Even after Independence, the First Five-Year Plan (1951 —56) laid emphasis on agriculture. With the Second FiveYear Plan (1956 — 61) there was a shift towards heavy...
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...The proportion of foreign institutional investors has gradually grown in the stock markets of developing countries as a result of financial globalization. This trend has led to an increasing concern as to whether these investors can influence the management decisions of the local firms in developing countries. This paper empirically investigates the impact of foreign institutional investors on corporate dividend policy in the Indian stock market. Using sample firms whose ownership by foreign investors was 5% or higher through the fiscal period from 2007 to 2011, we examine whether foreign institutional investors with more than 5% of a company's shares can exert a significant impact on dividends. In addition, we investigate if more shares that foreign institutional investors have over major shareholders and the more shares that foreign institutional investors have over the previous year, the stronger the impact of foreign institutional investors have on corporate dividend policy. This study empirically shows the impact of foreign institutional investors from the viewpoint of corporate governance in India, where local institutional investors play inadequate roles as Stakeholders. FII STRONGHOLD A look at the BSE-500 ownership pattern suggests that FIIs held as much as 15 per cent of the full-market capitalisation of the BSE-500 and a whopping 35 per cent of the freefloat market cap as of March 2011, thus providing them considerable influence over stock markets. Domestic institutions...
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...Movies today are probably the most dominant industry that contributes in the production of popular culture today. What movies show depict what society is like and in turn as well decide what society would be like. Although movies are not particularly a medium meant to impart knowledge or awareness only, however it does do it and when it does it has the most impact compared to any other medium, to say for example books or news. We as mere human beings living our lives isolated by the rest of the world in our own little homes, towns and countries have a fairly little idea of what the world is like outside of our homes. All the knowledge that we have of the world around us is through books, movies, news, TV shows, etc. And among all these forms, movies hold a prominent position in developing the psyche of the common masses....
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...About M-Pesa Kenya stepped into the arena of mobile money transfer services in 2007 through the successful launch of M-PESA by Safaricom1, a mobile network operator (MNO) (Mas and Radcliffe, 2010). Safaricom is the leading mobile network operator (MNO) in Kenya, and an affiliate of Vodafone Group- a British multinational telecommunications company. The mobile phone acts as both a wallet and a bank account. Kenya’s M-PESA is not the first mobile money deployment; however its rate of adoption has been unprecedented. The first sustainable mobile money system was launched by Smart Money, in 2001, in the Philippines. Based on an exchange rate of $/KES 85. M-PESA is a mobile payments system that allows users to make financial transactions such as deposits, withdrawals, bill payments, remittances, and purchase of goods and services by using a mobile phone,2 without requiring a bank account, internet connection, or a payment card. ‘M’ is an acronym for ‘mobile’ and ‘Pesa’ is a Kiswahili word that translates to ‘money’; M-PESA therefore translates to ‘mobile money’. Within 4 years of its launch, M-PESA attained over 15 million service users thus enabling millions of unbanked Kenyans, the majority of whom reside in rural areas, to have access to a 24-hour financial service system. The exceptional growth of M-PESA mobile money service in Kenya since its introduction has spurred a wave of mobile money service deployments across and beyond the African continent.3 Today, Kenya...
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...recession India had been growing robustly at an annual average rate of 8.8 per cent for the past five years (2003-04 to 2007-08). This was higher than the potential growth rate of output as estimated by the IMF. The strong Indian growth story, based on its structural strengths of a young population, skilled manpower, rising savings and investment rates, large unfulfilled domestic demand and globally competitive firms attracted significant investor attention in recent years. Recent high rates of economic growth have been the result of high levels of investment, rise in productivity supported by technological up-gradation and greater integration with global flows of trade, finance and technology. The challenge is to sustain these high growth rates while also preventing an unacceptable rise in income and spatial inequities and also eliminating absolute poverty in a given time frame. The answer to this challenge is in raising India’s potential rate of output growth by removing the binding constraints. We have also estimated the potential growth rate for India during the last decade based on HP filter technique (Hodrick and Prescott, 1997) and found that in the last three years, India had been growing above its potential growth rate. Figure 6: Potential GDP Growth and Output Gap (1997-08 to 2007-08) Note: Based on HP filter technique as proposed by Hodrick and Prescott (1997). Fears of over-heating of the economy prompted the Reserve Bank of India (RBI) to begin...
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...FDI in Retail India: Impact on Farmers, Consumers and Industry Nilesh Kate, Research Scholar Sinhgad Institute of Management and Computer Application, Pune nileshkate503@gmail.com 9096714133 ****************************************************************************** Abstract: The retail sector in India is expanding and modernizing rapidly in line with India's economic growth. It acts as a major catalyst in the development of a country through up-gradation of technology, managerial skills and capabilities in various sectors. Rise in purchasing power, growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in the retail can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers and suppliers (farmers). The overall retail market (organized and unorganized) is expected to grow at a compounded rate of 15% over the next 5 years from INR 23 trillion in 2011-12 to INR 47 trillion in 2016-17. Rising incomes will be the primary driver of this growth. Favorable demographics, increasing urbanization and nuclearisation of families are other factors which will drive retail consumption in India. Organized retail, which constituted a low 7% of total retail in 2011-12, is estimated to grow at a CAGR of 24% and attain a 10.2% share of total retail by...
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...Impact of derivative trading on the volatility in the stock market of India -Abhinav Barik Abstract This research paper focuses on the impact the derivative trading has had on the stock market of India. The impact is judged by the change in the volatility after the introduction of the derivative trading. In this paper 5 stocks are taken on which derivative trading was introduced and 4 stocks on which derivative trading was not introduced. The daily closing price of those stocks was taken for two periodspre derivative period and the post derivative period. These were analyzed using GARCH model to find the variance equation and then the GARCH coefficients from this equation were compared using the Wald test to check if the volatility has actually changed. The study suggests that the volatility has decreased for 4 companies, increased for 2 and two other companies did not show any significant change in the volatility. * Keywords: volatility, derivative, correlogram diagram, unit root, GARCH, Wald test *MBA student (2010-12), ICFAI BUSINESS SCHOOL, Hyderabad barik.abhinav@rediffmail.com 1. Introduction Derivative trading was introduced on the individual stocks of the Indian market in the year 2001 by SEBI. This was with a view to decrease the risk taken by the investors and to increase the investment opportunities. Since the derivative market and the spot market are linked so that the risk can be transferred, therefore the investors if want to transfer their risk...
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...Global economic slowdown and its impact on the financial services industry in India April 2009 The global slowdown was an outcome of two events - absence of a sound regulatory framework & mismatch between financial innovation and the ability of the regulators to monitor them immediate aim should be to fix the financial system and to maintain the aggregate demand at a high enough level to stimulate the real sector 2 Contents Executive summary 1. Global financial markets: A perspective 2. Indian financial services industry 3. Impact of the recession on the financial sector of the Indian economy 4. Future outlook 5. Conclusion Contacts 4 6 9 14 18 20 23 3 Executive summary The global economy is reeling with the impact of the ongoing recession which started with the sub-prime crisis in the United States and found its way to other developed and emerging economies of the world. This recession has its roots in the initial collapse of the financial sector. However, in a world that is more integrated within each country as well as across nations, the events in the financial sector have eventually trickled down to the real sector of the economies as well. Finance and financial markets play a dominant role in growth and development of modern economies – hence, any recovery from the current recession must be couched in an overall recovery of the health and performance of the financial sector. In the absence of mature financial markets in their own economies,...
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...It is evidentially proven and shown that Switzerland is a more economically developed country than India which is a less economically developed country. Development is the quality of life in a country based on various categories such as health, education, improvement on quality of life in a country itself including material consumption, environment and distribution of wealth. Switzerland has a higher rates of GDP per capita, electricity usage and life expectancy comparing to India. Switzerland is located in the northern hemisphere, in the continent of Europe. It is surrounded by countries such as France, Italy, Germany, etc. India is also located in the northern hemisphere in the continent of Asia. It is surrounded by countries such as Bangladesh, Sri Lanka, etc. The life expectancy of Switzerland is 82 years and the life expectancy of India is 65 years. In Switzerland, the GDP per capita is $37,942 whereas the GDP per capita in India is $3163. This shows a positive correlation between the life expectancy and the GDP per capita as the life expectancy is directly proportional to the GDP per capita; the higher the life expectancy, the higher the GDP per capita of the country. When a country is wealthier, they will have more money to provide good health and medical care services. Switzerland has a high GDP per capita, which shows that most of the citizens are wealthy and have enough money to provide more than enough needs such as food, a shelter and medical care to their family...
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...The Analysis of Impact of Irrigation Water Quality on Human Health: a case study in Musi River in Hyderabad, India Jeena T. Srinivasan and V. Ratna Reddy have conducted this research project in Hyderabad, India. Srinivasan has worked at Research Unit for Livehoods and Natural Resource (RULNER) which is promoted by the Center for Economic and Social Studies (CESS) in Hyderabad, India. Reddy has worked at Livelihoods and Natural Resources Management Institute which is also promoted by CESS. Srinivasan is the corresponding author who leads the whole research. By taking six villages with wastewater for irrigation along with Musi River and one control village with normal quality water (Srinivasan & Reddy, 2009, P.2800), the researchers tried to evaluate the difference of human health risks level between the two groups villagers. Besides, the researchers used the term “Morbidity Rates” associated with cost of illness to explain the different health risks exposing to individual family members in a household. Thus, there is a need for government to take several responsibilities to break the vicious circle which contaminated wastewater discharges from urban users to inflict harm on rural residents, and in turn as crops and meats for urban consumption (P. 2802). On the other hand, the researchers also tried to figure out determinants of morbidity. They classify households into high or low risk groups with four factors: location, the degree...
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