STRATEGIES Corporate strategy "Our markets are poised for exciting times. As a successful organisation !

e must not only keep pace !it" consumer expectation #ut also anticipate t"em. Our ne! identity is to lay t"e #ase to pro$ect our future as a successful %food% company a company t"at pro&ides "ig" 'uality and tasty yet "ealt"y foods and #e&erages T"e Group (anagement )oard comprises t"e *ice C"airman + (anaging ,irector -residents of t"e )usiness Sectors as !ell as "eads of certain key corporate functions. In ./0/ )ritannia one of t"e Indias largest #iscuit #rands "eld a market s"are of 123 in terms of &alue. Indian #iscuit industry t"e t"ird largest producer of t"e #iscuits in t"e !orld !as "ig"ly under4penetrated. T"is presented numerous gro!t" opportunities to ne! as !ell as existing players. Apart from t"e presence of #ig players like ITC 5oods and -arle t"e local manufacturers of #iscuits and ot"er Indian snacks "ad #een raising concerns for )ritannia. )esides competition )ritannia faced critical c"allenges due to declining margins in t"e #iscuit industry due to t"e increasing costs of ra! materials. Its profit "ad #een on a decline since .//6. T"oug" )ritannia "ad forayed into dairy and #akery products 7/3 of its re&enues still came from its core #usiness in #iscuits category !"ic" !as largely dri&en #y product inno&ation. T"e case "ig"lig"ting t"e )ritannias gro!t" strategies pro&ides scope to analyse opportunities and c"allenges for )ritannia in t"e Indian #iscuit industry. )usiness Strategy It relates to t"e functional areas suc" as production marketing finance personnel etc. 0. )ritannia "as #een in&esting significantly in "ig"er and #etter 'uality of "uman resources #ot" at t"e front end and at t"e #ack end. It "as s"arply segmented its go4to4 market stratergy and unlike an earlier focus on simply increasing t"e num#er of outlets it co&ered. ..)ritinnia no! "as separate teams for general sales modern trade institutions and semi4 ur#an and rural markets. It is #uilding strong capa#ilities in eac" of t"ese segments. 1. )ritinnia "as #een !orking !it" an international consulting agency for #uilding capa#ilities s"opper understanding as opposed to consumer understanding. 8. In .//2 )ritinnia di&ided its product portfolio into t!o distinct categories9 ""ealt" and !ellness" and "delig"t and lifestyle." -roducts suc" as Tiger glucose and :utriC"oice #iscuits fall under t"e former category !"ile Good ,ay and Treat fall under t"e latter. Eac" category is "eaded #y a senior executi&e responsi#le for outlining distinct gro!t" strategies. 6. Ot"er initiati&es include introducing personal consumption packs to attract yout" and people on t"e mo&e adding transit points suc" as #us stops and small roadside s"ops to

its distri#ution net!ork and addressing !orkers in t"e #usiness process outsourcing industry as a potential ne! market. ;. )ritinnia "as dou#led its ad spending in t"e last t"ree years. It is also !orking to increase trade marketing &isi#ility and for t"e first time e&er "as signed on !it" a trade marketing agency. According to one of director of )ritannia company (r.(e"ta )ritannia plans to increase ad&ertising and marketing spending to 0/3 to 0.3 of sales o&er t"e next fe! years from a current <3. <. On t"e infrastructure front )ritannia "as added .// /// tons of annual capacity an increase of a#out ;/3. It "as also de&ised a long4term distri#uted manufacturing stratergy put in place a continuous replenis"ment supply efficiency system and strengt"ened its supply c"ain management significantly.

-romotional strategies "Eat )ritannia Go for =orld Cup" !as t"e t"eme adopted in 0777 .-eople #oug"t t"e #iscuit packs and searc"ed for t"e lucky scratc" for flying to England to see !orld Cup Cricket matc".T"e sales #ounced 1<3 "ig" on account of t"is strategy.T"e sc"eme came ali&e again during t"e !orld Cup (atc" in .//.4.//1 in Sout" Africa. " >agan 4 t"e super "it mo&ie " #roug"t fame to )ritannia )iscuits also as 8//// #uyers of )ritannia )iscuit packs !ere in&ited to see and a small lucky group to play t"e game !it" t"e mo&ie Stars of >agan. ="at a no&el !ay to promote a product 4 a perception in correct proportion indeed.

?ey Steps to!ards strategic planning

*ISIO: T"ink Of A -urpose T"at Spirals 5ort" To Create Inno&ations 5rom =it"in T"is *isionary @ealA )uilt On Trust And ?no!ledge Bas Empo!ered T"e =adia Group In *arious )usiness Enterprises 5or more T"an A Century. It no! promises muc" more in t"e :e! Economy ... To dominate t"e food and #e&erage market in India !it" a distincti&e range of CTasty Det Bealt"yE )ritannia #rands. E&ery t"ird person in India s"ould #e a )ritannia consumer.

(ission To dominate t"e food and #e&erage market in India t"roug" a profita#le range of CTasty Det Bealt"yE products #y making e&ery Indian a )ritannia consumer. To #e one of t"e #est #iscuit company. ,e&elopment of production in parteners"ip !it" our customers to t"eir specification. 5lexi#ility + capa#ility tomeet small + large production runs

O#$ecti&es S"ort4term O#$ecti&e 9 To impro&e image to s"are"olders. To impro&e internal processes and controls. To increase :S* and ROI. >ong4term O#$ecti&e 9 To #e t"e lo!est4cost producer in t"e market. To #ecome largest &olume player in t"e #akery industry.

Fuality O#$ecti&es 9 Reduction in customer complaints To start documentation of market returns dealer !ise To empo!er t"e !orkmen on indi&idual !ork area to ensure t"at only 'uality product are passed on t"e next page of production. Continuous training for t"e de&elopment of "uman resources. To minimiGe t"e accident le&el. As part of t"e gro!t" strategy t"e company al!ays try to #uild on t"e &alues of #rand ")ritannia" #y aggressi&ely pursuing tasty yet "ealt"y offerings of mass appeal and also

launc"ing a "ost of afforda#le products !"ic" !ould "elp re$u&enate t"e mot"er #rand and dri&e category consumption. Goals Once t"e company de&eloped t"eir &ision mission and core &alues t"ey can t"en de&elop t"e goals and o#$ecti&es needed to ac"ie&e your &ision. Goals are general statements of !"at )ritannia !ants to ac"ie&e. So t"ey need to #e integrated !it" t"eir &ision. T"ey also need to #e integrated !it" t"eir mission of "o! t"ey are going to ac"ie&e t"eir &ision. To impro&e profita#ility To increase efficiency To capture a #igger market s"are To pro&ide #etter customer ser&ice To impro&e employee training To reduce car#on emissions

Strategies
)ritannia spends a great amount on promotional strategies like ad&ertisements for t"e &arious products it offers. It uses a mix of all t"e media forms to reac" t"e maximum consumers. T"ey ad&ertise t"roug" tele&ision print radio and reac" out to t"eir target audiences. Some of )ritannias popular #usiness promotional strategies are as follo!s9 )ritannia ?"ao =orld Cup Hao !"ic" took 0// mega4!inners to Old )lig"ty to !atc" t"e Cricket =orld Cup at )ritannia%s expense. T"is !as a &ery smart initiati&e taken #y )ritannia to moti&ate consumers to #uy more of )ritannias product in order to increase t"ere c"ances of #eing selected for t"e tour. T"is in turn "elped t"e company to #oost up its sales #efore and during t"e mega e&ent. )ritannia RulesI A day #efore t"e =orld Cup Of Cricket 77 #egan in England on (ay 08 0777 one of )ritannia Industries% senior4most marketing managers !as spotted at (um#ai%s Sa"ara International Airport4escorting a gaggle of excited c"ildren all of t"em sporting )ritannia caps )ritannia T4s"irts and ot"er assorted )ritannia parap"ernalia. :o "e !asn%t test4 positioning yet anot"er #rand of #iscuits on a group of unsuspecting young %uns in an airport lounge. T"ose kids !ere actually some of t"e 0// mega4!inners of t"e )ritannia ?"ao =orld Cup Hao contest #eing flo!n off on c"arters to Old )lig"ty

to !atc" t"e =orld Cup at )ritannia%s expense. See Cricket. Sleep Cricket. Eat Only )ritannia JsicIK. Anot"er excellent example of sport personality craGe and inno&ation came from )ritannia. T"e company recently offered a !"ite mar#le free !it" e&ery pack of )ritannia Treat. T"e mar#le "as a caricature of a Indian Cricketer printed on it an inno&ati&e con&ersion of craGe for cricket + cricketing stars exploited !it" a fres" perspecti&e.

OrganiGation4Strategic (anagement -rocess. 0 Strategy 5ormulation 0K 5raming (ission and O#$ecti&es94 In t"e step )ritannia Company 5orms its mission and o#$ecti&e !"ic" "as #een decided #y top le&el management mainly #y (rs. :asali !adia and (s. *inita )ali .K Analysis of t"e Internal En&ironment94 In t"is part )ritannia company analyGe its strengt" !eakness opportunity and t"reat !"ic" I "a&e already s"o!n you #efore t"is is also decided #y t"e top le&el management or #uild up automatically as company progressed up. 1K Analysis of t"e External En&ironment94 In t"is part company done external analysis i.e. -EST analysis. In market )riatannia is a #ig name so politically "e is strong C"airmen :asali !adia is engaged in many Indian go&ernment and political society. 8K Gap Analysis94 )ritannia #iscuits is t"e most selling #iscuits #rand across t"e glo#e )ritannia #iscuits are "ealt"y efficient po!erful standardiGed segmented according to categories and c"eap in price. So all toget"er customer gets !"at t"ey need sometime t"ere is gap #et!een t"eir expectations and companies deli&ery of Lproduct. 6K 5raming Alternati&e Strategies94 T"ey "a&e also #ack up plan t"ey use t"ose plan according to t"e market condition. ;K C"oice of Strategy94 )ritannias first c"oice s"op t"ey kept )ritannia contest to attract customer. T"ey can t"ink differentiation as t"eir alternate c"oice. Strategy Implementation 0K 5ormulation of -lans9 4 T"e strategy planned #y top le&el management. )ut t"e implementation part "as done #y )usiness le&el and function le&el.

.K T"e plan t"at "o! can t"ey ac"ie&ed t"e target. 5or t"is t"ey di&ided t"e #ig !ork into small !ork. After t"at t"ey implement small !ork. 1K -rograms and pro$ects94 After ac'uiring t"e #iffest s"are in t"e market t"ey are preparing t"eir company for t"e next step to ac"ie&e its goal.T"eir management is trained #y t"e training program to make t"em familiar !it" t"e )ritannia family. Resource Allocation94 To de&elop )ritannia )iscuits market )ritannia company is using &arious resources suc" as p"ysical resources financial resources and "uman resources. 8K Structural Implementation94 T"ere is need for organiGational structure to implement strategies.#ritannia companys structure is t"e frame!ork t"roug" !"ic" an organiGation operates. 6K 5unctional Implementation94 A manager can also c"ange acti&ity of t"e sales person. T"e manager t"at is "ead of t"e department of t"e )ritannia Company takes all roles and responsi#ilities to get t"e !ork done from ot"ers. T"e decisions taken #y t"em are implemented #y all t"e !orkers or employees. ;K )e"a&ioral Implementation94 )ritannia is &ery muc" employee oriented organiGation t"e marketing departments "a&e gi&en t"e performance #onus + t"ey "a&e #een send to t"e fatory to demonstrate #iscuits. Strategy E&aluation 0K Setting of Standards94 In t"is le&el manager set target to "is sales person generally e&ery departments !ork on target #asis. .K (easurement of -erformance94 :o! in t"is case manager analyGe t"at !"ate&er t"e target "ad gi&en to t"e sales peoples "as done or not. 1K Comparison of Actual -erformance !it" standards94 :o! t"ey c"eck t"e actual performance of t"e sales people and analyGe t"e performance. 8K 5inding out de&iations94 In t"is case t"ey c"eck !"y t"e sales people not a#le to ac"ie&e t"e target !"ate&er t"e target "ad gi&en to t"e sales people !"ere !as t"e de&iation. 6K AnalyGing ,e&iations9 4 After t"at t"e manager and top le&el management c"eck t"at de&iation. ;K Taking Correcti&e measures94 After t"at manger tries to sol&e t"ose de&iation. )asically t"e sales people !ill again send to t"e training field re&ie! and on $o# training t"is is t"e met"od )ritannia adopts 'uite often.

5M:CTIO:A> STRATEGIES. In an organiGation t"ere are namely four important functions i.e. (arketing 5inance Operations Buman resource (arketing Strategies. )RITA::IA company "as !on many a!ards #ecause of t"eir "ig" 'uality products and customer satisfaction and #ecame 0st #iscuit company in !orld. Since t"ey are also !ort" for t"eir marketing strategies lets gaGe across. T"e main marketing strategies follo!ed #y t"e firm are4 0K -roduct strategy. .K Reduced losses #y !ay of elimination of losses. 1K Target customers to capture gro!t" in eac" category #y segmenting t"e market #ot" along con&entional lines and t"roug" segmentation. 8K >ook #eyond t"e product at t"e customer. And use kno!ledge to reposition t"e #rand. 6K Big" class R+, and recently en"anced testing and e&aluation facilities ;K A corporate image of 'uality. N Eat Bealt"y. T"ink )etter. )uy )ritannia. T"e 2/4year4old #iscuit king is rein&enting itself. )ritannia no! !ants to #ecome a foods giant !it" t"e ne!ly4added tag of "ealt" and nutrition. ="at%s more !it" a cle&er formula of prices and products it is targeting e&ery segment of t"e Indian market. N After all t"e Rs 0 /1/4crore )ritannia "ad spent a !"opping Rs 0/ crore on t"e #k!c$ contest4t"e single #iggest promotion e&er in t"e Indian marketing "istory. Instead of concentrating on a fe! of its #iscuit #rands )ritannia included all 0; of t"em in t"e <4 le&el contest it ran !"ic" #locked t"e air4!a&es for 01 !eeks. T"e result9 0.;/ crore customers actually exc"anged 8 empty packs eac" for t"e #ooklet on cricket t"at came as t"e first re!ard -ricing strategy. 0K Cost #ased pricing. .K ,emand #ased pricing. 1K Competition oriented pricing. 8K -roduct oriented pricing. 6K Afforda#ility #ased pricing. -romotional strategy. "Eat )ritannia Go for =orld Cup" !as t"e t"eme adopted in 0777 .-eople #oug"t t"e #iscuit packs and searc"ed for t"e lucky scratc" for flying to England to see !orld Cup

Cricket matc".T"e sales #ounced 1<3 "ig" on account of t"is strategy.T"e sc"eme came ali&e again during t"e !orld Cup (atc" in .//.4.//1 in Sout" Africa. " >agan 4 t"e super "it mo&ie " #roug"t fame to )ritannia )iscuits also as 8//// #uyers of )ritannia )iscuit packs !ere in&ited to see and a small lucky group to play t"e game !it" t"e mo&ie Stars of >agan. ="at a no&el !ay to promote a product 4 a perception in correct proportion indeed. 5inancial strategies. As)ritannia is di&ersified #usiness t"ey are also in financial #usiness named)ritannia finance + kotak)ritannia so t"ey get t"e good sourses of money. Some of t"em lets come across 0K To "a&e long term capital t"ey issue prefence s"are s"ares mainly. .K )RITA::IA also do Self4financing to meet t"eir capital needs. 1K )RITA::IA "as t"e sinking funds to meet t"eir future uncertainities. Buman Resource strategy. 0K )RITA::IA !ere pre&iously "iring only male candidates #ut t"ey start "iring female BR managers. .K T"ey adopted BR Accounting for efficient recording of employee records. Operational strategies. 0K After t"e great success of Scorpio )RITA::IA #uilt t"eir confedence in "ouse R+,. .K Application of tec"ni'ues like HF( ?AI@E: TF( T-( HIT A)C analysis "elp to increase t"e standards of products t"roug"out t"e manufacturing process. Corporate le&el strategies. Corporate le&el Strategy "elps to ac"ie&e performance targets "o! to en"ance t"e firms long4 term #usiness position #y matc"ing mission !it" t"e ac"ie&ements. So as t"e corporate le&el of )ritannia make strategies. 5rom t"e o#ser&ed data !e can assess t"at )ritannia "as #een gro!ing in su#stantial rate so t"ey are using t"e Gro!t" strategy.

Diversification
)ritannia is conglomerate #usiness organiGation as t"ey are in di&ersified in &arious sectors. Since t"ey are using gro!t" strategy t"ey "a&e passed all alternati&es like t"ey "a&e #een merged ac'uired amalgamation so lets "a&e close look out t"eir gro!t" strategy.T"e company is $ointly controlled #y Groupe ,anone of 5rance !"ic" is "olding ..3 stake and :ulsi =adia group. :usli =adia is one of t"e leading industrial "ouses in t"e country. )ritannia en$oys a prominent position in t"e industry. O&er t"e last couple of years it "as trimmed do!n its !ide product portfolio and #egan to focus on &alue4added instead of lo!4margin products. It mainly caters to t"e premium segment. =it" t"e launc" of Tiger #rand it "as taken a plunge in t"e lo!4end category taking competition "ead on !it" -arle !"ic" is t"e leader in t"is segment. T"e company "as also di&ersified !it"in dairy and #akery products to enter t"e #utter c"eese and g"ee markets. T"e company added t!o ne! products 44 S!eet >assi and (ilkman Cold Coffee 44 to its existing dairy4#ased drinks portfolio !"ic" includes t"e L@ipSip% #rand of fla&oured milk.

(arket penetration. (arket penetration occurs !"en a company entersOpenetrates a market !it" current products. T"e #est !ay to ac"ie&e t"is is #y gaining competitors% customers Jpart of t"eir market s"areK. )ritannia adopted a ne! strategy !"ic" include attracting non4users of your product or con&incing current clients to use more of your productOser&ice J#y ad&ertising etcK. (arket penetration occurs !"en t"e product and market already exists (arket de&elopment. )ritannia attempt to identify and de&elop ne! areas for marketing current products.T"ere are t"ree general strategies applied in market de&elopment9 0K =orking !it"in t"e demograp"ic market to see if any particular demograp"ic group can #e encouraged to #uy more of t"e product or if any ne! group !it"in t"e demograp"ics can #e encouraged to purc"ase t"e productA .K >ooking at t"e institutional market to see if t"ese #uyers can #e increasedA 1K Attempting to de&elop markets in ne! geograp"ical areas. To effect t"ese strategies )ritannia attempt ne! distri#ution met"ods c"ange t"e design of promotional efforts and attempt to disco&er and promote inno&ati&e uses for an existing product. -roduct de&elopment. )ritannia Company "as adopted many strategies to de&elop ne! product. So t"at t"ey can attract ne! customers and satisfy old customers as !ell. :e! product de&elopment is also a necessary response to ne! tec"nology and c"anging market conditions. :e!

product de&elopment may #e "andled #y a dedicated department !it"in t"e company or may #e part of eac" #rand manager%s responsi#ilities. Example )ritannia "as tried to de&elop t"eir products as per t"e customerPs con&enience. ,ia#etic customers al!ays prefer #iscuits like nutria c"oice )ritannia treat and :utri c"oice.

MAKEOVER OF BRITANNIA In 077< )I> !"ose #usiness seemed to #e doing !ell instead of concentrating on it &irtually c"arted a ne! course #y seeking to rein&ent itself. It #uilt a ne! corporate identity and adopted a colorful and identifia#le logo !it" a ne! #ase line 4 %Eat Bealt"y T"ink #etter.% 5rom #eing a manufacturer of #aked products )I> kicked off a di&ersification exercise to #ecome a compre"ensi&e food and #e&erages company making c"eese and ot"er dairy products in addition to its #akery products. )I> seemed to #e doing somet"ing radical #y &enturing into totally ne! areas !"ile t"is puGGled many some analysts felt t"at it !as )I> !as doing t"is out of compulsion. T"ey reasoned t"at t"e 0;3 gro!t" rate of )I> sales !"ic" !as $ust 23 in real terms !"en corrected for inflation t"oug" good #y t"e standards of a mature market !as not good enoug" for a gro!ing market like India specially in t"e foods segment. Ot"ers felt t"at )I>%s makeo&er decision may "a&e #een influenced #y t"e t"reat of potential competition. T"ey also felt t"at !it" t"e organised #iscuit market in India #eing commoditised and t"e ma$or c"unk #eing controlled #y t"e un#randed segment reliance on #iscuits alone could #e detrimental to its long4term interests. Bo!e&er some analysts !ere of t"e opinion t"at t"e di&ersification of )I> into relati&ely ne! areas !as risky and t"at it s"ould "a&e concentrated on its core competence t"e #iscuit #usiness. )y t"e end of ./// t"e exploits of )I> seemed to "a&e fructified at least in t"e s"ort4run. In a sur&ey )I> emerged as t"e num#er one food company !ell a"ead of competiti&e #rands like :estle and Cad#ury. )I>%s dairy #usiness seemed to #e doing reasona#ly !ell. In t"e c"eese segment it stood second !it" a#out 163 market s"are. In t"e #akery segment also it !as doing !ell !it" its #iscuits #usiness making significant inroads. Its positioning plank %Eat Bealt"y T"ink )etter% also seemed to "a&e struck t"e rig"t c"ord !it" its customers. FLASHBACK 027. 4 Inception as a small "ouse manufacturing #iscuits in central Calcutta !it" an in&estment of Rs .76. 027< 4 T"e Gupta )rot"ers ac'uired t"e #usiness and mo&ed t"e operations to ,um ,um a su#ur# of Calcutta under t"e name of *.S.)rot"ers. 0702 4 An Englis" #usinessman C.B.Bolmes $oined as a partner. 0702 4 T"e )I> )iscuit Company J))CoK !as registered. 07.8 4 ))Co esta#lis"ed its second factory at (um#ai. 0768 4 ))Co ac'uired t"e ,el"i )iscuit Co and #egan t"e manufacture of sliced and !rapped #read in ,el"i. 07;0 4 T"e production of #read !as started in (um#ai.

07;< 4 T"e company set up a fourt" factory for t"e manufacture of #iscuits and #read in C"ennai. 07<0 4 ))Co di&ersified into seafood. 07<1 4 An integrated processing and freeGing plant for seafood !as commissioned at T"ane. 07<; 4 )read !as introduced in Calcutta !it" t"e commissioning of t!o modern indigenously fa#ricated automatic #aking plants. 07<2 4 ))Co came out !it" a pu#lic issue as a result of !"ic" t"e Indian pu#lic%s s"are"olding crossed ;/3 and t"e foreign s"are"olding J!"ic" !as 61.1<3 "eld $ointly #y Control :ominees >td. and Associated )iscuits International >td #ot" of t"e M?K decreased to less t"an 8/3. 07<7 4 In Octo#er t"e company%s name !as c"anged from )ritannia )iscuits Company to )ritannia Industries >imited J)I>K. 0720 4 Ra$an -illai a non4resident Indian #oug"t a 63 s"are"olding in )I>. 0722 4 -illai #oug"t Associated )iscuits International >td. JA)I>K for Q88 million JmnK !"ic" at t"at time "ad a 123 stake in )I>. 0771 4 Groupe ,anone !rested t"e management control of )I> from Ra$an -illai in a "ostile take4o&er leading to a complex "olding structure at )I>. 0776 4 :usli =adia #oug"t 6/3 of A)I> and #ecame )I>%s $oint o!ner. Groupe ,anone !"ic" till t"en "eld 883 in )I> di&ested ..3 in fa&our of =adia. %5OO, 5OR TBOMGBT% )I> since its inception "ad #een mainly in&ol&ed in t"e manufacture of #iscuits !"ic" contri#uted around 263 of its re&enues J077<K. T"e #iggest pro#lem t"en for t"e 2/4 year4old )I> !as t"at its name !as strongly associated #y customers !it" #iscuits Jor more #roadly #akery productsK. =it" t"e de4reser&ation of #iscuits from t"e small sector and commoditisation of t"e Rs 16// crore #iscuit market coupled !it" cutt"roat competition after t"e entry of multinationals and stagnating net profits )I> looked for a fres"er approac" to sur&i&e and prosper. )I> realised t"at it !ould "a&e to scale up its marketing strategy in its main line of #usiness and in addition tap ne! food categories to gro!. One reason !"y )I> seemed to "a&e !oken late !as t"at t"e company didn%t "a&e a proper parent until t"e 5renc" food and #e&erages ma$or ,anone ac'uired RHR :a#isco%s "olding in t"e company. )I> seemed to "a&e realised t"at t"e time "ad come to c"ange t"e rules of t"e game. It crafted a makeo&er plan to di&ersify into ne! #ut related areas and at t"e same time consolidate and impro&e its core #usiness #iscuits. )y doing so )I> "oped to remain t"e market leader in #iscuits and #ecome a ma$or player in related #usinesses also.

DONNING A NE LOOK As a first step in its makeo&er plan )I> "ired a -aris #ased design studio4 S"ining Strategic design to craft a ne! logo and corporate slogan. Its !ork in&ol&ed understanding t"e percei&ed and potential &alue of t"e #rand !"ere e&eryt"ing from colours and sym#ols to t"e typeface !as e&aluated. T"e !ork also in&ol&ed looking at t"e potential of t"e market and seeing !"ere )I> could &enture in future. Researc" s"o!ed t"at t"e #rand %)ritannia% !as synonymous !it" trust and 'uality and t"e !ide portfolio of products !as seen as a source of strengt". )ut )I> !as aiming at faster gro!t" #y expanding its #usiness !it"in t"e #akery segment and in select synergistic areas. Consumer researc" conducted !it" t"ese specific o#$ecti&es in mind #roug"t to t"e fore t!o key issues9 0. Alt"oug" t"e #rand "ad tremendous strengt" associated !it" it it needed to communicate modernity strongly. .. It needed to assure t"e customers t"at apart from #eing a trusted and a familiar #rand it !as also a contemporary one and c"anged !it" t"e times. T"e fact t"at t"e existing #rand !as too closely associated !it" t"e #akery #usiness could "a&e #een a "indrance to )I>%s di&ersification efforts. T"erefore )ritannia needed a more dynamic expression. So t"ere !as a need to restage t"e logo !it" t"e t!in o#$ecti&es of communicating modernity and dynamism. ="ile de&eloping t"e ne! logo and #rand statement t"e existing red and !"ite s"ield like unit !as retained !it" a modern rendition. T"e ne! corporate identity "ad t"ree colours red Jsym#olising energy and &italityK green Jnutrition and fres"nessK and !"ite JpurityK !"ic" collecti&ely represented !"at consumers looked for in foods and #e&erage. Researc" "ad s"o!n t"at t"e #rand statement Eat Bealt"y T"ink )etter captured t"e essence of t"e Indian concept of t"e unity of #ody and mind. ,uring t"e de&elopmental process care "ad to #e taken to ensure t"at t"ere !as ade'uate representation of all social economic strata in ur#an and rural India for %)ritannia% as a #rand cut across a cross4section of consumers. T"e red !a&e communicated t"e dynamic and energetic mo&ement of )I>. Analysts felt t"at t"e redesigned s"ield made )I> po!erful and !as t"e identifying stroke t"at communicated t"e inno&ation and futuristic po!er of )I> and t"at t"e redesigned typograp"y made )I> &ery contemporary and less industrial. T"e roundness communicated t"e &alue of nature Eat Bealt"y T"ink )etter. T"e concept communicated perfectly )I>%s potential &alue from p"ysical to mental #enefits. Said Alag" " T"e ne! corporate identity !ill testify to t"e implicit JgoodK 'uality of all our products and all our products and colours stand for t"ings !e look for in all foods and #e&eragesR" THE BALANCING ACT 5or )I> t"e ne! identity laid t"e #ase to pro$ect its future as a successful food company4 a company t"at pro&ided "ig" 'uality and tasty yet "ealt"y foods and #e&erages. Analysts felt t"at )I> seemed to "a&e realised t"at its customers !eren%t really #uying #iscuitsA t"ey !ere #uying "ealt" nutrition and food. If it !as nutrition not #iscuits t"at t"e customer !as #uying !"en "e #oug"t )ritannia )I> could easily extend t"e #rand to ot"er markets !"ere t"e customer looked for nutrition in e&ery purc"ase. It

!as a repositioning t"at did not "a&e any intrinsic #oundaries and )I> #y taking a "eat" platform could enter ot"er markets. As a part of its makeo&er plan )I> reinforced its strengt" in #iscuits Jand more #roadly )akery #usinessK #y seeking to consolidate and impro&e its leaders"ip position using aggressi&e marketing strategies. T"e #akery #usiness is t"e pillar and !e !ant to strengt"en t"at first." To ensure t"at t"e core #usiness !as not sidelined )I> #roug"t a#out c"anges in t"e management structure until t"at t"ere !ere t!o clear di&isions9 )akery and ,airy4eac" operating as independent profit centres. )I> re4positioned eac" one of its #iscuit #rands on a ne! platform and ensured t"at eac" #rand "ad a #ase statement making clear t"e %"ig"er order #enefits% of t"e #rand. )I> used com#inations of price and appeal to straddle e&ery segment of t"e market c"allenging all le&els of competition. )I> "ad structured a !ide range of price4points9 from Re 0 for a sac"et of Tid#its to Rs 0. for a pack of 0/ Good ,ay -ista )adam cookies to Rs 06 for a 0// gm pack of C"eeGlets. >ike!ise )I> "ad straddled t"e spectrum of segments !it" different product4#enefits all of !"ic" only reinforced t"e mot"er #rand%s ne! platform. In regard to #rand #uilding )I> follo!ed t"e strategy of %#rand clustering%. T"e strategy !as to let %)ritannia% remain t"e mot"er #rand under !"ic" a cluster of su#4#rands !ould #e present for specific product categories. ="ile t"e um#rella #rand !ould act a guarantee for t"e consumers t"e su#4#rand !as used to gi&e focus and distinct images for its ne! product categories and #usinesses to get economies from #rand #uilding. Analysts felt t"at a company like )I> !"ci" !is"ed to cater to a &aried customer4#ase needed to possess a large portfolio of #rands !it" different MS-s positioned at different price4points yet unified under a uni'uely differentiated mot"er #rand. =it" t"is in &ie! )I> re&amped its #iscuit #usiness. At t"e lo!4end price4point !as t"e %Tiger% #rand a "calcium4enric"ed" glucose #iscuit launc"ed in 077< !"ic" acted as t"e um#rella #rand for t"e mass market. Mntil t"en )I> "ad focussed on t"e middle and premium segments of t"e #iscuit market lea&ing -arle%s -arle G to rule t"e mass market. =it" t"e mass segment accounting for "alf of t"e unorganised market it seemed strategically important for )I> to make inroads into t"e same. T"erefore as a part of its ne! plan to attack t"e mass market )I> launc"ed t"e %Tiger% #rand and positioned it as a %"ealt"force #iscuit% as consumer researc" s"o!ed t"at good "ealt" !as t"e o&er!"elming consideration !"en mot"ers c"ose snacks for t"eir c"ildren. Analysts felt t"at since Glucose "ad #ecome a generic #rand )I> #y esta#lis"ing a ne! #rand !as clearly differentiating its Glucose #iscuits from ot"ers. T"e %Tiger% #rand e&entually seemed to "a&e #een a "uge success !it" its products Tiger Glucose JRs 6 for a 0//4gm packK and Tiger Cas"e! )adam JRs ; for <6 gmK toget"er ac"ie&ing !it"in a year of t"eir launc" a turno&er of Rs 0// crore and a markets"are of 1/3 in t"e glucose #iscuits segment. )I> t"en focused on its core #iscuit #rands4 (arie T"in Arro!root and (ilk )ikis4!"ic" faced competition from similarly #randed alternati&es like )akeman%s Englis" (arie (ilka )iscuits and -riya (arie. In order to o&ercome t"e competition )I> differentiated its #rands #y #ringing t"em under t"e %Eat Bealt"y T"ink )etter% #anner and gi&ing t"em clearly4defined positioning. 5or (ilk )ikis targeted at c"ildren )I> launc"ed &ariants like (ilk )ikis 5unland !"ic" !ere animal4s"aped #iscuits. (arie !as renamed (arie Gold and

positioned as a tea4time #iscuit. T"in Arro!root !as renamed Haco#%s T"in !it" its position as t"e lo!4calorie "ealt" #iscuit reinstated. In 0777 )I> relaunc"ed its lo!4 calorie "ig"4nutrition #rands4T"inlite Cream Cracker and ,igesti&e under t"e :utric"oice um#rella targeting t"e fast4gro!ing "ealt"4conscious segment. )I> seemed to #e 'uick in gauging t"e rising demand for products in t"e impulse category of snacks Je.g. c"ips and c"ocolatesK. Accordingly )I> came up !it" trendier products like >ittle Bearts -ure (agic and C"ekkers targeting t"e under4.8 ur#an consumer positioning t"em !it" statements t"ey identified !it". 5or example %,irect ,il Se% for >ittle Bearts %5ull Of Taste And 5un% for -ure (agic and %5or T"e Mps And ,o!ns In >ife% for C"ekkers. In 0777 )I> "ad launc"ed Snax a line of et"nic snackfoods using lo!4fat oils and "ygienic processes in 1 &ariants9 Calcutta ?a C"ana C"oor )ikaner ?a )"u$iya and Ra$ast"an ?a Aloo )"u$iya !it" an eye on t"e almost Rs 02// crore snack market in India. In t"e segment of %#reads% !"ic" contri#uted a#out ;3 of t"e company%s total re&enues )I>%s presence !as restricted to a fe! cities. In t"e face of increasing competition it decided to strengt"en its #read #usiness in t"e sout"ern states and !as seriously looking for ac'uisitions and manufacturing tie4ups in t"at region. It also planned to le&erage t"e key strengt" of t"e daily distri#ution system of its #read #usiness in its ne! &entures like milk. =it" a &ie! to #oosting &olumes )I> also c"anged its packaging strategy #y launc"ing #iscuits in small sac"ets. It launc"ed t"e lo!4priced sac"ets %Tiger Tikis4ni##lets% priced at Re 04targetting t"e mass market. )I> simultaneously re&amped its distri#ution c"annels increasing its retail distri#ution net!ork to more t"an 0../ million outlets. To increase penetration more t"an "alf of t"e ne! outlets ser&iced !ere in t"e rural and semi4ur#an markets4a #reak from t"e past !"en )I>%s distri#ution !as distinctly ske!ed to!ards ur#an India. As part of its strategy to reduce its dependence on #iscuits )I> soug"t to di&ersify its product portfolio to include categories t"at fitted !it"in its o&erall o#$ecti&e of transforming itself into a food company. )I> targeted segments !"ere it "ad t"e potential of capturing eit"er t"e num#er one or num#er t!o position. Said Alag" " I am not into pioneering ne! eating "a#its. On t"e contrary !e !ant to capture t"e essence of t"e Indian consumer. So !e !ill #e entering only t"ose areas !"ic" !ill form part of t"e daily eating "a#its of an Indian "ome and offer eit"er "ig" &olume or "ig" &alue." Analysts felt t"at !"at )I> "ad done !as to #uild on t"e company%s already successful #rand. =it" t"e #asic motto of %eat t"e )I> product you like #ut eat % t"e company pro&ided t"e consumer !it" an option at all times of consumption Jot"er t"an t"e main meals of lunc" and dinnerK. T"e underlying p"ilosop"y !as to pro&ide %tasty yet "ealt"y% snacks t"at one could eat and drink t"roug"out t"e day in s"ort a product for eac" occasion and for e&ery consumer. )I> sa! an opportunity in t"e dairy segment as it "ad only one large player Amul. Its strategy !as to #uild on t"e strong affinity t"at Indian consumers "ad for milk and milk products in its diary &enture. )I> !anted to do in dairy products !"at it "as done in #iscuits9 co&er all segments. Said Alag" %%As !it" ot"er large markets !e !ill seek to

segment t"e market for dairy products too. T"is could mean t"at our portfolio !ill include premium #rands !it" a "ig" degree of &alue4addition as !ell as popular4priced #rands t"at could add critical mass.%% )I> entered t"e dairy segment in 077< !it" c"eese and milk po!der or dairy !"iteners. )y ./// )I> captured a#out 163 of market s"are of t"e c"eese market and ./3 in t"e dairy !"itener segment. It launc"ed #utter in 0772 fla&oured milk su#4#randed %Gipsip% in tetra packs in 0777 and g"ee in 5e#ruary .///. T"e company relaunc"ed its entire dairy #usiness in late April ./// #y #ringing it under t"e %(ilkman% name. T"e pricing communication package design "ad all #een re&amped. T"e !ord %fla&oured% !as dropped from t"e milk range as researc" "ad s"o!n t"at in India t"e !ord %fla&oured % connoted %artificial% to consumers. )I>%s di&ersification reflected its parent ,anone%s portfolio. E&er since it got control of )I> ,anone "ad #een pro&iding it tec"nology in #iscuits and pastries. ,anone%s #iggest #usiness dairy products !as t"e dri&ing force for )I>%s di&ersification. Bo!e&er dairy products accounted for a meagre 73 of )I>%s turno&er. )ut )I> "oped t"at !as going to c"ange. Said Alag" %%In t"e next 1 years !e expect ne! #usinesses to contri#ute a#out a 'uarter of our turno&er.%% THE ROAD AHEAD )I>%s makeo&er plan seemed to "a&e !orked !ell. T"e sales increased from Rs <6..1 crore in 077;47< to Rs. 00;7 crore in 07774// and net profits increased almost 8 times since 077;47<. Alt"oug" )I>%s #iscuit #usiness seemed to "a&e done !ell its di&ersification into dairy segments did not seem to #e an un'ualified success. Analysts o#ser&ed t"at t"e &alue4added dairy market !"ic" )I> "ad targeted !as a minuscule /.0/ per cent of t"e market. ="ile t"e siGe of t"e c"eese market !as a mere Rs 08/ crore it !as gro!ing at ./ per cent per annum. T"e Rs 8//4crore #utter market !as gro!ing at 0/ per cent a year and Amul4t"e only national #utter #rand4"ad an 263 s"are. T"e Rs 16/4crore dairy4!"itener market !as gro!ing at 0/3 a year #ut large #rands like GC((5%s Amulya Jmarkets"are9 863K :estle%s E&eryday J1.3K and B>>%s (ilkana J08 3K dominated it. Analysts felt t"at for )I> using #rand e'uity alone to #reak into competitors% domain may not #e t"at easy. )I> "ad to make sure t"at t"e products it made !ere accepta#le to Indian tastes. T"e mere fact t"at a product in its parent ,anone%s portfolio !as successful a#road !as no guarantee t"at it !ould succeed in India. T"e #est example analysts pointed out !as t"at of %(ini roule % a S!iss roll from ,anone !"ic" failed to take off in India. )I> "o!e&er seemed to #elie&e t"at its core competence !as foods and t"at #y going into dairy products it !as not mo&ing from its original focus. )I> also #elie&ed t"at its makeo&er plan "ad !orked !ell and t"at t"is !as reflected in t"e remarka#le impro&ement in profits. Accordingly it set am#itious targets for t"e future. Said Alag" "Our &ision is to make e&ery t"ird Indian a )ritannia consumer !it"in t"e next t"ree years R=e !ant to #e part of our consumer4 at "ome out

of "ome a natural part of "is life. Consume t"e product of your c"oice #ut consume )ritannia." Analysts felt t"at t"e c"allenge for )I> lay in continuing to remain aggressi&e and in e&ol&ing to meet t"e needs of dynamic markets of t"e ne! millennium. If )I> !as to ac"ie&e t"e o#$ecti&e it "ad set for itself it "ad to continuously stri&e to deli&er products !it" &alue t"at exceeded consumers% expectation. )I>%s gam#le and its long4run success !ould ultimately depend on !"et"er consumers liked t"e ne! products it introduced in t"e market or not.

Cor!orate governance
Corporate Go&ernance is t"e application of #est (anagement practices Compliance of la! in true letter and spirit and ad"erence to et"ical standards for Effecti&e (anagement and distri#ution of !ealt" and disc"arge of social Responsi#ility for sustaina#le de&elopment of all stake"oldersE. Corporate go&ernance is concerned !it" set of principles et"ics &alues morals rules regulations + procedures etc. Corporate go&ernance esta#lis"es a system !"ere#y directors are entrusted !it" duties and responsi#ilities in relation to t"e direction of t"e companyPs affairs. T"e term Cgo&ernanceE means control i.e. controlling a company an organiGation etc or a company + corporate go&ernance is go&erning or controlling t"e corporate #odies i.e. et"ics &alues principles morals. 5or corporate go&ernance to #e good t"e manager needs to meet its responsi#ilities to!ards its o!ners Js"are"oldersK creditors employees customers go&ernment and t"e society at large. Corporate go&ernance "elps in esta#lis"ing a system !"ere a director is s"o!ered !it" duties and responsi#ilities of t"e affairs of t"e company. T"e concept of Scorporate go&ernanceP is not an endA itPs $ust a #eginning to!ards gro!t" of company for long term prosperity. HISTOR" # NEED OF COR$ORATE GOVERNANCE Corporate go&ernance concept emerged in India after t"e second "alf of 077; due to economic li#eraliGation and deregulation of industry and #usiness. =it" t"e c"anging times t"ere !as also need for greater accounta#ility of companies to t"eir s"are"olders and customers. T"e report of Cad#ury Committee on t"e financial aspects of corporate Go&ernance in t"e M.?. "as gi&en rise to t"e de#ate of Corporate Go&ernance in India. :eed for corporate go&ernance arises due to separation of management from t"e o!ners"ip. 5or a firm success it needs to concentrate on #ot" economical and social aspect. It needs to #e fair !it" producers s"are"olders customers etc. It "as &arious responsi#ilities to!ards employees customers communities and at last to!ards go&ernance and it needs to ser&e its responsi#ilities at t"e #est at all aspects.

ROLE OF LA

IN COR$ORATE GOVERNANCE

>a! can only pro&ide a minimum code of conduct for proper regulation of "uman #eing or company. >a! is made not to stop any act #ut to ensure t"at if you do t"at act you !ill face suc" conse'uences i.e. good for good and #ad for #ad. T"us in t"e same manner role of la! in corporate go&ernance is to supplement and not to supplant. It can not #e only !ay to go&ern corporate go&ernance #ut instead it pro&ides a minimum code of conduct for good corporate go&ernance. >a! pro&ides certain et"ics to go&ern one and all so as to "a&e maximum satisfaction and minimum friction. It plays a complementary role. Role of la! in corporate go&ernance is in Companies Act !"ic" imposes certain

restrictions on ,irectors so t"at t"ere is no misrepresentation of documents t"ere is no excessi&e of po!er so t"at it imposes duty not to make secret profit and make good losses due to #reac" of duty negligence etc duty to act in t"e #est interest of t"e company etc T"e issues in corporate go&ernance 0. *alue #ased corporate culture9 5or any organiGation to run in effecti&e !ay it needs to "a&e certain et"ics &alues. >ong run #usiness needs to "a&e #ased corporate culture. *alue #ased corporate culture is good practice for corporate go&ernance. It is a set of #eliefs et"ics principles !"ic" are in&iola#le. It can #e a motto i.e. A s"ort p"rase !"ic" is uni'ue and "elps in running organiGation t"ere can #e &ision i.e. dream to #e fulfilled mission and purpose o#$ecti&e goal target. .. Bolistic &ie!9 T"is "olistic &ie! is more or less godly religious attitude !"ic" "elps in running organiGation. It is not easier to adopt it it needs special efforts and once adopted it leads to de&eloping 'ualities of no#ility tolerance and empat"y. 1. Compliance !it" la!s9 T"ose companies !"ic" really need progress "a&e "ig" et"ical &alues and need to run long run #usiness t"ey a#ide and comply !it" la!s of Securities Exc"ange )oard Of India JSE)IK 5oreign Exc"ange Regulation Act Competition Act .//. Cy#er >a!s )anking >a!s etc. 8. ,isclosure transparency and accounta#ility9 ,isclosure transparency and accounta#ility are important aspect for good go&ernance. Timely and accurate information s"ould #e disclosed on t"e matters like t"e financial position performance etc. Transparency is needed in order t"at go&ernment "as fait" in corporate #odies and conse'uently it "as reduced corporate tax rates from 1/3 today as against 7<3 during t"e late 07</s. Transparency is needed to!ards corporate #odies so t"at due to tremendous competition in t"e market place t"e customers "a&ing c"oices donPt s"ift to ot"er corporate #odies. 6. Corporate Go&ernance and Buman Resource (anagement9 5or any corporate #ody t"e employees and staff are $ust like family. 5or a company to #e perfect t"e role of Buman Resource (anagement #ecomes &ery &ital t"ey #ot" are directly linked. E&ery indi&idual s"ould #e treated !it" indi&idual respect "is ac"ie&ements s"ould #e recogniGed. Eac" indi&idual staff and employee s"ould #e gi&en #est opportunities to pro&e t"eir !ort" and t"ese can #e done #y Buman Resource ,epartment. T"us in Corporate Go&ernance Buman Resource "as a great role. ;. Inno&ation9 E&ery Corporate #ody needs to take risk of inno&ation i.e. inno&ation in products in ser&ices and it plays a pi&otal role in corporate go&ernance. <. :ecessity of Hudicial Reform T"ere is necessity of $udicial reform for a good economy and also in todayPs c"anging time of glo#aliGation and li#eraliGation. Our $udicial system t"oug" "a&ing performed salutary role all t"ese years certainly are #ecoming o#solete

and outdated o&er t"e years. T"e delay in $udiciary is due to se&eral interests in&ol&ed in it. )ut t"en !it" c"anging scenario and fast gro!ing competition t"e $udiciary needs to #ring reforms accordingly. It needs to speedily resol&e disputes in cost effecti&e manner. 2. Glo#aliGation "elping Indian Companies to #ecome glo#al giants #ased on good go&ernance9 In todayPs age of competition and due to glo#aliGation our se&eral Indian Corporate #odies are #ecoming glo#al giants !"ic" are possi#le only due to good corporate go&ernance. 7. >essons from Corporate 5ailure9 E&ery story "as a moral to learn from e&ery failure "as success to learn from in t"e same !ay corporate #ody "a&e certain policies !"ic" if goes as a failure t"ey need to learn from it. 5ailure can #e #ot" internal as !ell as external !"ate&er it may #e in good go&ernance corporate #odies need to learn from t"eir failures and need to mo&e to t"e pat" of success.

(ainly !e !ill deal !it" t"e perspecti&es of corporate go&ernance from t"ree points of &ie!9 0. S"are"olders JCapital (arketK T Control perspecti&e .. OrganiGation J(anagementK T Control perspecti&e 1. Stake"olders 4 Control perspecti&e 0. S"are"olders9 as pro&iders of a risk capital "a&e final control on resource allocation decisions. .. OrganiGation9 "a&e t"e main purpose is to control i.e. t"roug" skills intelligence inno&ation ideas professionalism etc. T"erefore "ere in t"is perspecti&e resource allocation decision s"ould rest !it" t"em. 1. Stake"olders9 "ere it says t"at for long term #usiness only s"are"olders &alue maximiGation s"ould not #e seen as sole goal #ut it s"ould #e for !ell #eing of all groups !it" stake of long run of #usiness and it s"ould #e goal of corporate go&ernance.

5uture prospect of corporate go&ernance India "as #ecome one of t"e fastest emerging nations to "a&e aligned itself !it" t"e international trends in Corporate Go&ernance. As a result Indian companies "a&e increasingly #een a#le to access to ne!er and larger markets around t"e !orldA as !ell as a#le to ac'uire more #usinesses. T"e response of t"e Go&ernment and regulators "a&e also #een admira#ly 'uick to meet t"e c"allenges of corporate delin'uency. )ut as t"e glo#al en&ironment c"anging continuously t"ere is a greater need of adopting and sustaining good corporate go&ernance practices for &alue creation and #uilding corporations of t"e future. It is true t"at t"e %corporate go&ernance% "as no uni'ue structure or design and is largely considered am#iguous. T"ere is still lack of a!areness a#out its &arious issues like 'uality and fre'uency of financial and managerial disclosure compliance !it" t"e code of #est practice roles and responsi#ilities of )oard of ,irectories s"are"olders rig"ts etc. T"ere "a&e #een many instances of failure and scams in t"e corporate sector like collusion #et!een companies and t"eir accounting firms presence of !eak or ineffecti&e internal audits lack of re'uired skills #y managers lack of proper disclosures non4compliance !it" standards etc. As a result #ot" management and auditors "a&e come under greater scrutiny. )ut !it" t"e integration of Indian economy !it" glo#al markets industrialists and corporates in t"e country are #eing increasingly asked to adopt #etter and transparent corporate practices. T"e degree to !"ic" corporations o#ser&e #asic principles of good corporate go&ernance is an increasingly important factor for taking key in&estment decisions. If companies are to reap t"e full #enefits of t"e glo#al capital market capture efficiency gains #enefit #y economies of scale and attract long term capital adoption of corporate go&ernance standards must #e credi#le consistent co"erent and inspiring. Fuality of corporate go&ernance primarily depends on follo!ing factors namely94 integrity of t"e managementA a#ility of t"e )oardA ade'uacy of t"e processesA commitment le&el of indi&idual )oard mem#ersA 'uality of corporate reportingA participation of stake"olders in t"e managementA etc. Since t"is is an important element affecting t"e long4term financial "ealt" of companies good go&ernance frame!ork also calls for effecti&e legal and institutional en&ironment #usiness et"ics and a!areness of t"e en&ironmental and societal interests. Bence in t"e years to come corporate go&ernance !ill #ecome more rele&ant and a more accepta#le practice !orld!ide. T"is is easily e&ident from t"e &arious acti&ities undertaken #y many companies in framing and enforcing codes of conduct and "onest #usiness practicesA follo!ing more stringent norms for financial and non4financial disclosures as mandated #y la!A accepting "ig"er and appropriate accounting standardsA enforcing tax reforms coupled !it" deregulation and competitionA etc. Bo!e&er inapt application of corporate go&ernance re'uirements can ad&ersely affect t"e relations"ip amongst participants of t"e go&ernance system. As o!ners of e'uity institutional in&estors are increasingly demanding a decisi&e role in corporate go&ernance. Indi&idual s"are"olders !"o usually do not exercise go&ernance rig"ts are

"ig"ly concerned a#out getting fair treatment from controlling s"are"olders and management. Creditors especially #anks play a key role in go&ernance systems and ser&e as external monitors o&er corporate performance. Employees and ot"er stake"olders also play an important role in contri#uting to t"e long term success and performance of t"e corporation. T"us it is necessary to apply go&ernance practices in a rig"t manner for #etter gro!t" of a company