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INDIA INFOLINE a one-stop financial services shop, most respected for quality of
its advice, personalized service and cutting-edge technology.
The India Infoline group, comprising the holding company, India Infoline Limited
and its wholly-owned subsidiaries, straddle the entire financial services space with
offerings ranging from Equity research, Equities and derivatives trading,
Commodities trading, Portfolio Management Services, Mutual Funds, Life
Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan
products and Investment banking. India Infoline also owns and manages the
websites www.indiainfoline.com and www.5paisa.com The company has a
network of 976 business locations (branches and sub-brokers) spread across 365
cities and towns. It has more than 800,000 customers.

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India Infoline Limited is listed on both the leading stock exchanges in India, viz.
the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and
is also a member of both the exchanges. It is engaged in the businesses of Equities
broking, Wealth Advisory Services and Portfolio Management Services. It offers
broking services in the Cash and Derivatives segments of the NSE as well as the
Cash segment of the BSE. It is registered with NSDL as well as CDSL as a
depository participant, providing a one-stop solution for clients trading in the
equities market. It has recently launched its Investment banking and Institutional
Broking business.


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A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to
clients. These services are offered to clients as different schemes, which are based
on differing investment strategies made to reflect the varied risk-return preferences
of clients.

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The India Infoline group, comprising the holding company, India Infoline Ltd
(NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading
players in the Indian financial services space. India Infoline offers advice and
execution platform for the entire gamut of financial services covering products
ranging from Equities and derivatives, Commodities, Wealth management, Asset
management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds
and other small savings instruments. It owns and manages the website,
www.indiainfoline.com, which is one of India¶s leading online destinations for
personal finance, stock markets, economy and business.

India Infoline has been awarded the µBest Broker, India¶ by Finance Asia and the
µMost improved brokerage, India¶ in the Asia Money polls. India Infoline was also
adjudged as µµFastest Growing Equity Broking House - Large firms¶ by Dun &
Bradstreet. A forerunner in the field of equity research, India Infoline¶s research is
acknowledged by none other than Forbes as µBest of the Web¶ and µ«a must read
for investors in Asia¶. India Infoline¶s research is available not just over the
Internet but also on international wire services like Bloomberg, Thomson First Call
and Internet Securities where it is amongst one of the most read Indian brokers.
A network of 1,616 business locations spread over 445 cities and towns across
India facilitates the smooth acquisition and servicing of a large customer base. All
our offices are connected with the corporate office in Mumbai with cutting edge


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networking technology. The group caters to a customer base of about a million
customers, over a variety of mediums viz. online, over the phone and at our
branches.
India Infoline refers to India Infoline Ltd and its group companies.

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The content services represent a strong support that drives the broking,
commodities, mutual fund and portfolio management services businesses. Revenue
generation is through the sale of content to financial and media houses, Indian as
well as global. It undertakes equities research which is acknowledged by none
other than Forbes as 'Best of the Web' and '«a must read for investors in Asia'.
India Infoline's research is available not just over the internet but also on
international wire services like Bloomberg (Code: IILL), Thomson First Call and
Internet Securities where India Infoline is amongst the most read Indian brokers.

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India Infoline Commodities Pvt Limited is engaged in the business of commodities


broking. Our experience in securities broking empowered us with the requisite
skills and technologies to allow us offer commodities broking as a contra-cyclical
alternative to equities broking. We enjoy memberships with the MCX and
NCDEX, two leading Indian commodities exchanges, and recently acquired
membership of DGCX. We have a multi-channel delivery model, making it among
the select few to offer online as well as offline trading facilities.



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India Infoline Marketing and Services Limited is the holding company of India
Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited.
(a) India Infoline Insurance Services Limited is a registered Corporate Agent with
the Insurance Regulatory and Development Authority (IRDA). It is the largest
Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's
largest private Life Insurance Company. India Infoline was the first corporate
agent to get licensed by IRDA in early 2001. (b) India Infoline Insurance Brokers
Limited India Infoline Insurance Brokers Limited is a newly formed subsidiary
which will carry out the business of Insurance broking. We have applied to IRDA
for the insurance broking licence and the clearance for the same is awaited. Post
the grant of license, we propose to also commence the general insurance
distribution business.

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Consolidated shareholdings of all the subsidiary companies engaged in loans and


financing activities under one subsidiary. Recently, Orient Global, a Singapore-
based investment institution invested USD 76.7 million for a 22.5% stake in India
Infoline Investment Services. This will help focused expansion and capital raising
in the said subsidiaries for various lending businesses like loans against securities,
SME financing, distribution of retail loan products, consumer finance business and
housing finance business. India Infoline Investment Services Private Limited
consists of the following step-down subsidiaries. (a) India Infoline Distribution
Company Limited (distribution of retail loan products) (b) Moneyline Credit
Limited (consumer finance) (c) India Infoline Housing Finance Limited (housing
finance)

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IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated
in Singapore to pursue financial sector activities in other Asian markets. Further to
obtaining the necessary regulatory approvals, the company has been initially
capitalized at 1 million Singapore dollars.

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China, Brazil, Dubai, Russia, Singapore, UK, US


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We were founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director)
as an independent business research and information provider. We gradually
evolved into a one-stop financial services solutions provider. Our strong
management team comprises competent and dedicated professionals.

We are a pan-India financial services organization across 1,361 business locations


and a presence in 428 cities. Our global footprint extends across geographies with
offices in New York, Singapore and Dubai. We are listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE).

We offer a wide range of services and products comprising broking (retail and
institutional equities and commodities), wealth management, credit and finance,
insurance, asset management and investment banking. We are registered with the
BSE and the NSE for securities trading, MCX, NCDEX and DGCX for
commodities trading, CDSL and NSDL as depository participants. We are
registered as a Category I merchant banker and are a SEBI registered portfolio
manager.

We also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received
approval from the Monetary Authority of Singapore to carry out corporate advisory
and dealing in securities operations. Two subsidiaries ± India Infoline Investment
Services and Moneyline Credit Limited ± are registered with RBI as non-deposit
taking non-banking financial services companies. India infoline Housing Finance
Ltd, the housing finance arm, is registered with the National Housing Bank

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Incorporated as an equity research and consulting firm with a client base that
included leading FIIs, banks, consulting firms and corporates.

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Restructured the business model to embrace the internet; launched


archives.indiainfoline.com mobilized capital from reputed private equity investors.

)***

Commenced the distribution of personal financial products; launched online equity


trading; entered life insurance distribution as a corporate agent. Acknowledged by
Forbes as µBest of the Web¶ and µ...must read for investors¶.

)**+

Acquired commodities broking license; launched Portfolio Management Service.

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Listed on the Indian stock markets.

)**,

Acquired membership of DGCX; launched investment banking services.

)**-


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Launched a proprietary trading platform; inducted an institutional equities team;
formed a Singapore subsidiary; raised over USD 300 mn in the group; launched
consumer finance business under the µMoneyline¶ brand.

)**.

Launched wealth management services under the µIIFL Wealth¶ brand; set up India
Infoline Private Equity fund; received the Insurance broking license from IRDA;
received the venture capital license; received in principle approval to sponsor a
mutual fund; received µBest broker- India¶ award from Finance Asia; µMost
Improved Brokerage- India¶ award from Asia money.

)**'

Received registration for a housing finance company from the National Housing
Bank; received µFastest growing Equity Broking House - Large firms¶ in India by
Dun & Bradstreet.


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The company is a one-stop financial services shop, most respected for quality of
its advice, personalised service and cutting-edge technology.

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Indiainfoline provided the prospect of researched investing to its clients, which was
hitherto restricted only to the institutions. Research for the retail investor did not
exist prior to Indiainfoline. Indiainfoline leveraged technology to bring the
convenience of trading to the investor¶s location of preference (residence or office)
through computerised access. Indiainfoline made it possible for clients to view
transaction costs and ledger updates in real time

"

Our Portfolio Management Service is a product wherein an equity investment


portfolio is created to suit the investment objectives of a client. We at Indiainfoline
invest your resources into stocks from different sectors, depending on your risk-
return profile. This service is particularly advisable for investors who cannot afford
to give time or don't have that expertise for day-to-day management of their equity
portfolio.

//ÊM

Sound investment decisions depend upon reliable fundamental data and stock
selection techniques. Indiainfoline Equity Research is proud of its reputation for,
and we want you to find the facts that you need. Equity investment professionals
routinely use our research and models as integral tools in their work.


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Indiainfoline¶s extension into commodities trading reconciles its strategic intent to


emerge as a one-stop solutions financial intermediary. Its experience in securities
broking has empowered it with requisite skills and technologies. The Company¶s
commodities business provides a contra-cyclical alternative to equities broking. The
Company was among the first to offer the facility of commodities trading in India¶s
young commodities market (the MCX commenced operations only in 2003).
Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn
to Rs 20.02 bn. The commodities market has several products with different and
non-correlated cycles. On the whole, the business is fairly insulated against cyclical
gyrations in the business

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During the year under review, Indiainfoline acquired a 75% stake in Moneytree
Consultancy Services to mark its foray into the business of mortgages and other
loan products distribution. The business is still in the investing phase and at the
time of the acquisition was present only in the cities of Mumbai and Pune. The
Company brings on board expertise in the loans business coupled with existing
relationships across a number of principals in the mortgage and personal loans
businesses. Indiainfoline now has plans to roll the business out across its pan-
Indian network to provide it with a truly national scale in operations .


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The preparation of a strategic plan is a multi-step process covering vision, mission,


objectives, values, strategies, goals and programs. These are discussed below. This
step is very important for growth of the organization. These steps can be explained
as follow:

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The first step is to develop the realistic vision for the business. This vision is
represented as physical appearance, size, activities etc. of an organization which is
in exist in the market. A vision is said to be a vision when an organization develop
a statement that has to be achieved in 5 or more years. The vision statement of
INDIA INFOLINE is

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The mission of INDIA INFOLINE is;

< Focus on world best network


< Forecasting the team work and enhancing the capability of g the team
< Continual improvement
< Elimination of wastes

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The objective of INDIA INFOLINE is to provide unbiased and independent
information to market intermediaries and investors.


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Goals are specific interim & ultimate time based measurement to be achieved
by implementing strategy in pursuit of company objective. Following are the
goals of India Infoline:

< Leadership
< Price competitiveness
< Consumer satisfaction

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Strategies means the rules and guidelines by which the mission,objective etc are
achieve

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It helps in maintain good relationship with the society, suppliers, employee, local
community and other stake holder. our value is from providing information and
advice to executing the orders and providing constant service for the entire gamut
of financial services.

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It is the final step which setout implementation plans which covers sources,
objective, time, scale, deadline, budget and performance of the company.


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The strategy management level are classify into 3 levels:

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It describes the company¶s direction in term of its general attitude towards
growth and management of its various business and product line. Corporate
strategy is the highest level of stategy. Mr. Nirmal Jain (Chairman and
Managing Director) had developed a idea to be a independent business
research and information provider. Registered with the BSE and the NSE for
securities trading, MCX, NCDEX and DGCX for commodities trading,
CDSL and NSDL as depository participants.


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) 8c / /0/ Ê/#%$9 It usually occurs at the strategy
business unit level or product levelThe content services represent a strong
support that drives the broking, commodities, mutual fund and portfolio
management services businesses. Revenue generation is through the sale of
content to financial and media houses, Indian as well as global

:  c /0/ Ê/#%$- This strategy relates with the


function area such as production , marketing, `financing,personnal,etc. The
function strategy aims at achiving functional objectives.


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< There is variety of products.


< Low Brokerage charges.
< Low demat charges
< Name Fame in Online trading & Finance sector
< Online dealing with Shares &Commodities

Other Fulfill the insurance needs


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< Protection

< Saving

< investments

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< India Infoline is facing high attrition rate.

< India Infoline process of opening of demat accounts is too lengthy.

< Lack of awareness among the customers.

< Low Morale And Fears Among Brokers

< people¶s mentality

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< Improved technology

< Generate income

< Generate jobs

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< Competition

< Economic conditions

< Increasing & decreasing stock market s

< Sociocultural changes

< Changes in laws & Regulations


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The Boston Consulting Group (BCG) Matrix is a simple tool to assess a company¶s
position in terms of its product range. It helps a company think about its products
and services and make decisions about which it should keep, which it should let go
and which it should invest in further.

BCG matrix can be diagrammatically represented as follow:

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Question marks are products that grow rapidly and as a result consume large
amounts of cash, but because they have low market shares they don¶t generate
much cash. The result is a large net cash consumption. A question mark has the
potential to gain market share and become a star, and eventually a cash cow when
the market growth slows. If it doesn¶t become a market leader it will become a dog


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when market growth declines. Question marks need to be analysed carefully to
determine if they are worth the investment required to grow market share.


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Stars generate large sums of cash because of their strong relative market share, but
also consume large amounts of cash because of their high growth rate. So the cash
being spent and brought in approximately nets out. If a star can maintain its large
market share it will become a cash cow when the market growth rate declines.


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As leaders in a mature market, cash cows exhibit a return on assets that is greater
than the market growth rate ± so they generate more cash than they consume.
These units should be µmilked¶ extracting the profits and investing as little as
possible. They provide the cash required to turn question marks into market
leaders.

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Dogs have a low market share and a low growth rate and neither generate nor
consume a large amount of cash. However, dogs are cash traps because of the
money tied up in a business that has little potential. Such businesses are candidates
for divestiture.


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The GE matrix/ McKinsey matrix is a model to perform business portfolio analysis


on the strategic business unit of a corporation. General Electric of USA with the
support of consulting firm McKinsey and company developed a more complicated
matrix as a technique of portfolio analysis. The aim of portfolio analysis was:
< To analysis it current business portfolio and decide which SBU should
received more or less investment.
< To develop growth strategy for adding new product and business to the
portfolio
< Decide which business or product should no longer be retained
The GE business screen includes 9 cells based on 2 parameter i.e. long term
industries attractiveness/ market attractiveness and business strength/ competitive
position. GE matrix includes;

INDUSTRIES ACTRACTIVNESS BUSINESS STRENGTH


< Market growth rate < Market share
< Profitability < Technological position
< Size < Profitability
< Pricing < Size
< Practices < Strength
< Opportunities < Weakness
< Threats


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GE Matrix is divided into 9 cells:

CELLS INDICATE

Company should investment or


1 Growth such as market development,
expansion of business
Company should hold and maintain
2 of current strategy
3 Company should stop and select
retrenchment strategies

India Infoline is in business of finance only so GE matrix of this company is not


possible.


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1. Ê/#%:- The direction and the scope of the company for a long term
is called strategy.india Infoline Build stronger institutional relationships
through wider and quality research.

2. %/:- sitting late or carrying the work home and completing it to


meet the exigencies of deadlines. Taking complete care of the office
property and material like his/her own. Suggestion and action on saving
costs many times for activities not pertaining to his/her own department.
Helping team members from his/her own functional areas as well as others.


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3. /:- The basic organization of the company entities the


structure of the organization.India Infoline Limited is listed on both the
leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE)
and the National Stock Exchange (NSE) and is also a member of both the
exchanges. It is engaged in the businesses of Equities broking, Wealth
Advisory Services and Portfolio Management Services
4. 6c:- the capabilities and competencies that exist within the company
to do the best for the organization. It¶s a financial services shop, most
respected for quality of its advice, personalised service and cutting-edge
technology.
5. Ê:- : the companies people resources the way in which they are
developed, trained and motivated to double digit growth.

6. MÊ/ 0Ê/: A and belief of company that ultimate guide employee


towards value behavior. India infoline committed to provide value added
product to its customer by ethical working enhancing core competencies of
its team. Continual increasing in the system involving total employees
maintaining internal and external customer concept.

7. %/:--The India Infoline Group is committed to placing the Investor


First, by continuously striving to increase the efficiency of the operations as
well as the systems and processes for use of corporate resources in such a
way so as to maximize the value to the stakeholders.


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Strategic formulation can also be called as strategic planning. The strategic


formulation can be done it top level or at corporate level. The strategic
formulation involves the following steps:


    
   $ 9 The first step in formulation of a strategy is
to frame mission and objective of the firms. Vision of India infoline is to be the
most respected company in the financial services space which is made by chairman
Mr.Nirmal.jain.

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management needs to make an analysis of internal environment. The internal
environment include strengths and weakness of organization. the strength
include Money power which makes them ignorant about the gestation
period. Brand image , brand experience and innovative products. this is also
decided by the top level management or build up automatically as company
progressed up.
‡ Ê
4   /3
 /  $9 the management must conduct an
analysis of the external environment. It include analysis of opportunities and
threats. Huge market is still untapped, only 20 % is insured. and Players like
Angel and Share khan have low premium for similar plans.
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4 $9 management must also conduct Gap analysis i.e. it must
compare an analysis its present performance level and desire future level.
India Infoline are technologically Efficient, powerful, standardized,
segmented according to categories and cheap in price. So all together
customer gets what they need, sometime there is gap between their
expectations and companies delivery of product.


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‡ 
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 $9 They have also back up plan, they use
those plan according to the market condition.
‡   
4$9 Mahindra,s first choice of strategy is to appoint more
and more broker and open more branches across india

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The strategy is formulated for each and every functional department such as
human resources, marketing, finance and operation. Once the strategy is
formulated next step is implemented of such strategy.
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by top level management. But the implementation part has done by
Business level and function level.The plan that how can they achieved
the target. For this they divided the big work into small work. After
that they implement small work.
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 $9 A project passes through various stages
before the actual implementation . A various phases are follows:
i.  5  5
$ 9 Idea generation. India infoline assist a
company through its various stages of growth beginning with
Private Placement of equity or convertible instruments while it
is privately held
ii.    5
$ - preliminaries analysis. helping it achieve a
significant size,
iii. "
 
 
 ?  5
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to the markets through an IPO


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$- taking the project. continuing to
multiply its growth Post-IPO through the inorganic route with
our strategic Mergers & Acquisitions services.
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all. No paperwork no queues and No registration charges.
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a. Membership on the Bombay Stock Exchange Limited and the National
Stock Exchange

b. Registered with the NSDL as well as CDSL as a depository participant,


providing a one-stop solution for clients trading in the equities market

c. Broking services in cash and derivative segments, online as well as


offline.

d. Presence across 350 cities and towns with a network of over 850
business locations Equity client base of over 500,000 clients

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structure to implement the strategy. Organization structure is the framework
through which an organization operates. India Infoline uses Divisional
structure.
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the sales person.   c
  
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oriented organization the marketing departments have given the
performance bonus & they have been send to the corporate world to
performance and marketing also.

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:- In this level manager set target to his sales person,
generally every departments work on target basis.

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whatever the target had given to the sales broker has done or not.

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$9 Now they check
the actual performance of the sales broker and analyze the performance.

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able to achieve the target, whatever the target had given to the sales people
where was the deviation.

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 $ 9 After that the manager and top level management
check that deviation.

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deviation. Basically the sales people will again send to the training field
review and on job training, the method India infoline adopts quite often.


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c0cc Ê /$9As the small business grows it has more


difficulties in managing different function in different geographical market . this
requires a structure that control operation complete successfully in various
location. Requirement of business growing from small to medium is fulfilled by a
structure is called as divisional structure whose division can be as follows :-

a. Geographical area
b. Product and services
c. Customer

Ê/#c 8c /  c:- As the business grow in size and diversify ,
organization control & evaluation becomes more difficult the span of control
become too large thus increase in revenue did not mean increase in profit. This
increases co-ordination and communication leading to increase profitability and
overall efficiency.

It can be represent as follows :


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  is a form of corporate strategy for a company. It seeks to increase
profitability through greater sales volume obtained from new products and new
markets. Diversification can occur either at the business unit level or at the
corporate level. At the business unit level, it is most likely to expand into a new
segment of an industry which the business is already in. At the corporate level, it is
generallyand it is also very interesting entering a promising business outside of the
scope of the existing business unit.

Diversification is part of the four main marketing strategies defined by the


Product/Market Ansoff matrix:

Ansoff pointed out that a diversification strategy stands apart from the other three
strategies. The first three strategies are usually pursued with the same technical,
financial, and merchandising resources used for the original product line, whereas
diversification usually requires a company to acquire new skills, new techniques
and new facilities.


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The strategies of diversification can include internal development of new products


or markets, acquisition of a firm, alliance with a complementary company,
licensing of new technologies, and distributing or importing a products line
manufactured by another firm. Generally, the final strategy involves a combination
of these options. This combination is determined in function of available
opportunities and consistency with the objectives and the resources of the
company.

There are three types of diversification: concentric, horizontal and conglomerate:

     
 

This means that there is a technological similarity between the industries, which
means that the firm is able to leverage its technical know-how to gain some
advantage. For example, a company that manufactures industrial adhesives might
decide to diversify into adhesives to be sold via retailers. The technology would be
the same but the marketing effort would need to change. It also seems to increase
its market share to launch a new product which helps the particular company to
earn profit. However, there's one more example, Addition of tomato ketchup and
sauce to the existing "Maggi" brand processed items of Food Specialities Ltd. is an
example of technological-related concentric diversification.

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The company adds new products or services that are technologically or


commercially unrelated (but not always) to current products, but which may appeal
to current customers. In a competitive environment, this form of diversification is


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desirable if the present customers are loyal to the current products and if the new
products have a good quality and are well promoted and priced. Moreover, the new
products are marketed to the same economic environment as the existing products,
which may lead to rigidity and instability. In other words, this strategy tends to
increase the firm's dependence on certain market segments. For example company
was making note books earlier now they are also entering into pen market through
its new product.

Horizontal integration occurs when a firm enters a new business (either related or
unrelated) at the same stage of production as its current operations. For example,
Avon's move to market jewelry through its door-to-door sales force involved
marketing new products through existing channels of distribution. An alternative
form of that Avon has also undertaken is selling its products by mail order (e.g.,
clothing, plastic products) and through retail stores (e.g., Tiffany's). In both cases,
Avon is still at the retail stage of the production process.

  
   
   

   
 !

The company markets new products or services that have no technological or


commercial synergies with current products, but which may appeal to new groups
of customers. The conglomerate diversification has very little relationship with the
firm's current business. Therefore, the main reasons of adopting such a strategy are
first to improve the profitability and the flexibility of the company, and second to
get a better reception in capital markets as the company gets bigger. Even if this
strategy is very risky, it could also, if successful, provide increased growth and
profitability.


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India infoline use      
  
4 as Addition of equity
business it Acquired commodities broking license; launched Portfolio Management
Service following the a technological similarity between the industries


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Thus to conclude Money power which makes them ignorant about the
gestation period.Brand image , brand experience and innovative products.it
is the largest Corporate Agent for ICICI Prudential Life Insurance Co
Limited, which is India's largest private Life Insurance Company. India
Infoline was the first corporate agent to get licensed by IRDA in early 2001.

India Infoline Insurance Brokers Limited India Infoline Insurance Brokers


Limited is a newly formed subsidiary which will carry out the business of
Insurance broking. We have applied to IRDA for the insurance broking
licence and the clearance for the same is awaited. Post the grant of license,
we propose to also commence the general insurance distribution business.

Intermediary plays a very impportant role because of the following reasons :

< It¶s a personalised type of marketing.


< Moral hazard of the insured is to be judged.
< Layman does not know insurance
< He has to be guided for the best cover
< He has to be given service in terms of proposal form, claim form, getting
refunds, giving policies, receipts , cover notes.
< He has to be told about requirements and documentation.


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// Êc 

w THE INSURANCE PRODUCTS SHOULD NOT BE PITCHED AS PURE
INSURANCE PRODUCTS BUT AS INVESTMENT INSTRUMENTS
w HUGE MARKET IS STILL UNTAPPED; OUT OF 320 MILLION
INSURABLE MARKETS ONLY 20 % IS INSURED.
w HEALTH INSURANCE AND PENSION SCHEMES HAVE AN
ESTIMATED MARKET POTENTIAL OF 15 BILLION
w MANY COMPETITORS IN THE MARKET SELL THE SAME PRODUCT
WITH A SLIGHT DIFFERENCE IN PREMIUM AND OFFERINGS
w THE REACH IN SEMI-URBAN AREAS AND RURAL MARKETS IS
STILL VERY LESS


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