Veblen good

In economics, Veblen goods are a group of commodities for which people's preference for buying
them increases as a direct function of their price, as greater price confers greater status, instead of
decreasing according to the law of demand. A Veblen good is often also a positional good.
Some types of high-status goods, such as high-end wines, designer handbags and luxury cars, are
Veblen goods, in that decreasing their prices decreases people's preference for buying them
because they are no longer perceived as exclusive or high status products
the demand curve is generally downward-sloping. There may be rare examples of goods that have
upward-sloping demand curves. Two different hypothetical types of goods with upward-sloping
demand curves are Giffen goods (an inferior but staple good) and Veblen goods (goods made
more fashionable by a higher price).

There's A Difference Between Advertising and Publicity!

Using Advertising and Publicity are very effective methods to promote and create positive
awareness for you and your business. But... there is a clear difference between Advertising and
Publicity. Advertising is something you get by paying for it. Publicity however, is something you
hope you'll get. Why? Because publicity can be generally gained at no cost to you. And... it
generally has many times the credibility of advertising. Here's what we mean:
There are some experts like Al Reis, author of the superb marketing text, "Positioning: The Battle
For Your Mind," that believe a majority of companies shouldnt waste their money on advertising
until they have established name recognition and credibility through Public Relations and publicity.
Others will tell you that a combination of both advertising and PR are required. But one thing's
for certain: Every expert agrees, "that you cant just put up your web site, open your store, offer
your service or manufacture a product and then not do anything to attract customers!"
So... advertising is content you pay for (radio, tv, newspaper, banner advertising, etc). Publicity on
the other hand, refers to free content about you and your company that appears in the media. It's
what others what others say about you. Publicity can result when an article you write is published,
or when information you give to an editor convinces him/her to feature a story about you or is
based on a publicity release issued by a Public Relations firm you have retained. Over time,
these stories help create a favorable impression of your product or services.
The average person has no real idea of how the media find their stories, but the prevailing view
seems to be that reporters go out and find all of their news. This is simply not realistic thinking!
There just arent enough reporters on the planet to find every bit of news worth covering. So if you
1
can present your information convincingly, there's a good a chance that you'll gain the interest of
the media.
So how can I get publicity for my company? Well...let's deal with the Internet here. The Internet
or World Wide Web, has its own rules about commercialism, and it usually is disastrous to those
who break them. If your press releases, postings or articles are blatant self-promotion or a sales
pitch instead of truly useful information they will be ignored and wont be used. Worse, you risk
the negative publicity of being flamed (you and your company being strongly put down online, or
you'll receive quantities of unwanted and negative e-mail). So... here's a simply philosophy to
follow: "Before you put out a public message, play "who cares?" and ask yourself "why would
other people be interested in what I have to say?" or "how can people benefit from the information I
am supplying?" If you can't come up with solid, positive answers to these questions, then keep
working on your publicity release or article until you do.
Difference between Selling and Marketing
Marketing is much wider than selling and much more dynamic.
The fundamental differance between the two is that selling revolves around the needs and interest
of the seller.
Where as Marketing revolves around the needs and the interest of the buyers.
Selling is an inside-out perspective. Its starts from factory, focuses on the company's existing
products, and calls for heavy selling and promotion to obtain profitable sales.
Marketing takes an outside-in perspective It starts with a well defined markert, focuses on
customer needs, co-ordinates all the marketing activities affecting customers, and makes profits by
creating customer satisfaction.
******************************************************************
Marketing is the planning, pricing, promotion, packaging, advertising selling of any product or
service.
selling is only a sliver of the over all marketing of any product or service. But as Zig Ziglar says
"nothing happens until someone sells something" and what he means is that sales is not a four
letter word but a five letter word.
Many marketing consultants talk about marketing as the "message to the consumer" or potential
client or prospect. there is always a message in; Promoting, packaging, signage, advertising,
Selling is also about delivering the message to the customer or prospect as well and it is a much
closer message, person to person and selling can take the form of a telephone call, personal visit,
demo, presentation or even an ad hoc or chance meeting with a conversation and later follow up.
2
Most sales Managers Consider selling to be about report and relationship building; getting to know
the potential customer or prospect their desires and needs and solving a problem by offering your
product or service to them
Marketing is in fact the act of 'bringing the product to market'. Selling is about closing a sale and
turning a potential buyer into a customer. Closing a sale is also called a conversion.
Marketing is primarily about research - identifying potential buyers and then finding the best way to
introduce your product to them.
Selling is about overcoming objections. It is a one to one technique where the seller helps the
buyer to reach a decision. Selling is when all marketing research is applied at the point of sale.
Marketing is an art as well as a numbers game.sales is more of an art only.
Broadly, Marketing creates the atmosphere to make it easy for sales to happen. Marketing consists
things like:
Marketing Strategy,target market etc.
Sales" obviously is getting out and writing the orders ... tough disciplined work. This involves skills
like "closing" the sale - very different skills to Marketing
Good sales people do not make good marketers and vice versa ...
A marketer is a creative person, a law unto himself, a person with few boundaries, a person who
lives inside the head of your customer, a person who dreams and creates at any/all hours of day
and night, a person who can send normal disciplined people crazy. For a marketer, the thrill of the
chase is creating original thinking / products - original ideas that work, ideas that nobody else
thought about. Top marketers are some of the world's highest paid professional people.
A salesperson, unlike a marketer, is a well disciplined person who works within a tight set of
conventional rules to get the sales orders. A salesperson is motivated by the thrill of closing a deal
and the attendant cash bonus. You drive a good sales person crazy when you don't give him/her
sound marketing back up.
Get the marketing right and sales near automatically follow.
your marketing campaign should generate leads. Your sales people take the leads and generate
sales. Measure the results of your marketing by the number and quality of leads you're getting.
Measure your sales staff by how much they're selling.
the marketing process is a proactive approach done often before the product or service is
produced and sold. And selling starts after production of product.
marketing is the process of establishing a need, sales is the process of fulfilling that need
the marketing function consists of making the market aware of who you are and what you do
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the sales process commences when a formal offer for services has been made, and concludes
when the offer is accepted or rejected

Distribution Channels
Distribution channels are the methods that companies use to enter the consumer market with their
product. While many methods exist, they have changed over the years because of the Internet and
global sales.
Definition
A distribution channel is the method a company uses to get its products into the marketplace for
consumer use. The traditional channel goes from supplier, manufacturer, distributor, wholesaler
and retailer. Two types of distribution channels exist: indirect and direct.
Indirect Channel
The indirect channel is used by companies who do not sell their goods directly to consumers.
Suppliers and manufacturers typically use indirect channels because they exist early in the supply
chain. Depending on the industry and product, direct distribution channels have become more
prevalent because of the Internet.
Direct Channel
A direct distribution channel is where a company sells its products direct to consumers. While
direct channels were not popular many years ago, the Internet has greatly increased the use of
direct channels. Additionally, companies needing to cut costs may use direct channels to avoid
middlemen markups on their products.
Indirect Channel Methods
Distributors, wholesalers and retailers are the primary indirect channels a company may use when
selling its products in the marketplace. Companies choose the indirect channel best suited for their
product to obtain the best market share; it also allows them to focus on producing their goods.
Direct Channel Methods
Selling agents and Internet sales are two types of direct distribution channels. Selling agents work
for the company and market their products directly to consumers through mail order, storefronts or
other means. The Internet is an easy distribution channel because of the global availability to
consumers.

WTO and implications for Indian Economy

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Abstract:
th
One of the most dramatic events that have taken place in later part of 20 century was culmination
st
of GATT 1947 into WTO (The world Trade organization), which came into being on 1 January
2005. This WTO has set expectations high in various member countries (by now 149 including
latest addition of Saudi Arabia) regarding spurt in world trade where India has insignificant share in
the pie-Only 0.75% at the most. Even in IT exports the share of Indian exporters is just peanuts in
view of overall world market.
Since formation of WTO there have been regular meetings of Ministerial Conferences (Highest
Policy level body of WTO) religiously every 2 years and 5 such meetings have taken place while
world prepares for the Hong Kong meeting to take place shortly, the sixth one.
th
While 5 meet at Cancun, Mexico was more or less failure, the earlier one at Seattle, USA was
received with brickbats from environmentalist and Labor union Groups protesting against WTO
regime.
It is statistical fact that world trade has definitely grown since 1995 thereby giving indicators that
international trade reforms do play important role in boosting economic development of various
countries.
Problems facing India in WTO & its Implementation:
But there are several problems facing these Multilateral Trade agreements:
- Predominance of developed nations in negotiations extracting more benefits from developing and
least developed countries
- Resource and skill limitations of smaller countries to understand and negotiate under rules of
various agreements under WTO
- Incompatibility of developed and developing countries resource sizes thereby causing distortions
in implementing various decisions
- Questionable effectiveness in implementation of agreements reached in past and sincerity
- Non-tariff barriers being created by developed nations.
- Regional cooperation groups posing threat to utility of WTO agreement itself, which is multilateral
encompassing all member countries
- Poor implementation of Doha Development Agenda
- Agriculture seems to be bone of contention for all types of countries where France, Japan and
some countries are just not willing to budge downwards in matter of domestic support and export
assistance to farmers and exporters of agriculture produce.
- Dismantling of MFA (Multi Fiber Agreement) and its likely impact on countries like India
5
- Under TRIPS question of high cost of Technology transfer, Bio Diversity protection, protection of
Traditional Knowledge and Folk arts, protection of Bio Diversities and geographical Indications of
origin, for example Basmati, Mysore Dosa or Champagne. The protection has been given so far in
wines and spirits that suit US and European countries.
Implications for India
It appears that India does not stand to gain much by shouting for agriculture reforms in developed
countries because the overall tariff is lower in those countries. India will have to tart major reforms
in agriculture sector in India to make Agriculture globally competitive. Same way it is questionable
if India will be major beneficiary in dismantling of quotas, which were available under MFA for
market access in US and some EU countries. It is likely that China, Germany, North African
countries, Mexico and such others may reap benefit in textiles and Clothing areas unless India
embarks upon major reforms in modernization and up gradation of textile sector including
apparels.
Some of Singapore issues are also important like Government procure, Trade and Investment,
Trade facilitation and market access mechanism.
In Pharma-sector there is need for major investments in R &D and mergers and restructuring of
companies to make them world class to take advantage. India has already amended patent Act
and both product and Process are now patented in India. However, the large number of patents
going off in USA recently, gives the Indian Drug companies windfall opportunities, if tapped
intelligently. Some companies in India have organized themselves for this.
Excerpts from Speech of Ramkrishna Hegde, the then Minister, at Geneva in 1998-
"In order to make WTO an effective multilateral body, which serves the objectives for which it was
set up, it is necessary to go back to the basic principles. The Uruguay Round negotiators had
stated their intentions quite clearly in the Preamble to the Marrakesh Agreement establishing the
WTO. They recognised "that their relations in the field of trade and economic endeavour should be
conducted with a view to raising standards of living, ensuring full employment and a large and
steadily growing volume of real income and effective demand, and expanding the production of
and trade in goods and services, while allowing for the optimal use of the world's resources in
accordance with the objective of sustainable development, seeking both to protect and preserve
the environment and to enhance the means for doing so in a manner consistent with their
respective needs and concerns at different levels of economic development. They recognized also
"that there is need for positive efforts designed to ensure that developing countries, and especially

6
the least developed among them, secure a share in the growth in international trade
commensurate with the needs of their economic development".
The Objective of WTO Reiterated:
It is very clear that the intention of the negotiators was to use trade as an instrument for
development, to raise standards of living, expand production, keeping in view, particularly, the
needs of developing countries and least-developed countries. The WTO must never lose sight of
this basic principle. Every act of implementation and of negotiation, every legal decision, has to be
viewed in this context. Trade, as an instrument for development, should be the cornerstone of all
our deliberations, decisions and actions. Besides, the system should be seen to be equitable and
fair. It must be used in such a manner that the letter and spirit of the Agreements is fully observed.
The WTO Members must mutually support and encourage each other to achieve the final goal. It
must be recognized that all Members should assume a negotiating rather than an adversarial
posture. It should also be recognized that different economies have different features and
structures, different problems, different cultures. The pace of change must be carefully calibrated
to take into account such differences. All Members should guard against unilateral action that cuts
at the root of multilateral agreement and consensus.
Developing countries have generally been apprehensive in particular about the implementation of
special and differential treatment provisions (S&D) in various Uruguay Round Agreements. Full
benefits of these provisions have not accrued to the developing countries, as clear guidelines have
not been laid down on how these are to be implemented. "
The first Ministerial Conference held in 1996 in Singapore saw the commencement of pressures to
enlarge the agenda of WTO. Pressures were generated to introduce new Agreements on
Investment, Competition Policy, Transparency in Government Procurement and Trade Facilitation.
The concept of Core Labor Standards was also taken up for introduction.
India and the developing countries, which were already under the burden of fulfilling the
commitments undertaken through the Uruguay Round Agreements, and who also perceived many
of the new issues to be non-trade issues, resisted the introduction of these new subjects into WTO.
They were partly successful. The Singapore Ministerial Conference (SMC) set up open-ended
Work Program to study the relationship between Trade and Investment; Trade and Competition
Policy; to conduct a study on Transparency in Government Procurement practices; and do
analytical work on simplification of trade procedures (Trade Facilitation).
Most importantly the SMC clearly declared on the Trade-Labor linkage as follows:

7
" We reject the use of labor standards for protectionist purposes, and agree that the comparative
advantage of countries, particularly low-wage developing countries, must in no way be put into
question. In this regard we note that the WTO and ILO Secretariat will continue their existing
collaboration".
Not many people in this country are aware that there is a dispute settlement system in the WTO.
This is at the heart of the WTO and sets it apart from the earlier GATT. Countries like the USA and
the European Union have brought cases against us and won these cases like in pharmaceutical
patents. India too has complained against the US and Europe and it too has won its fair share of
disputes in areas like textiles. India must effectively use this mechanism to extract fair share in
world markets.
It would be advantageous for India to give concrete shape to SAARC economic forum or Free
market and align itself with ASEAN.
What India should do?
The most important things for India to address are speed up internal reforms in building up world-
class infrastructure like roads, ports and electricity supply. India should also focus on original
knowledge generation in important fields like Pharmaceutical molecules, textiles, IT high end
products, processed food, installation of cold chain and agricultural logistics to tap opportunities of
globalization under WTO regime.
India's ranking in recent Global Competitiveness report is not very encouraging due to
infrastructure problems, poor governance, poor legal system and poor market access provided by
India.
Our tariffs are still high compared to Developed countries and there will be pressure to reduce
them further and faster.
India has solid strength, at least for mid term (5-7 years) in services sector primarily in IT sector,
which should be tapped and further strengthened.
India would do well to reorganize its Protective Agricultural policy in name of rural poverty and
Food security and try to capitalize on globalization of agriculture markets. It should rather focus on
Textile industry modernization and developing international Marketing muscle and expertise,
developing of Brand India image, use its traditional arts and designs intelligently to give
competitive edge, capitalize on drug sector opportunities, and develop selective engineering sector
industries like automobiles & forgings & castings, processed foods industry and the high end
outsourcing services.

8
India must improve legal and administrative infrastructure, improve trade facilitation through cutting
down bureaucracy and delays and further ease its financial markets.
India has to downsize non-plan expenditure in Subsidies (which are highly ineffective and wrongly
applied) and Government salaries and perquisites like pensions and administrative expenditures.
Corruption will also have to be checked by bringing in fast remedial public grievance system, legal
system and information dissemination by using e-governance.
The petroleum sector has to be boosted to tap crude oil and gas resources within Indian
boundaries and entering into multinational contracts to source oil reserves.
It wont be a bad idea if Indian textile and garment Industry go multinational setting their foot in
western Europe, North Africa, Mexico and other such strategically located areas for large US and
European markets.
The performance of India in attracting major FDI has also been poor and certainly needs boost up,
if India has to develop globally competitive infrastructure and facilities in its sectors of interest for
world trade.

Introduction
A leading, industrially advanced developing country, India has large, medium and small industrial
units of production in almost all branches of the industry. Since the time of the independence in
1947, a significant feature of the Indian economy has been the rapid growth of the small industry
sector. The small industry sector is considered to have a major role in the Indian economy due to
its 40 percent share in the national industrial output along with an 80 percent share in industrial
employment and nearly 35 percent share in exports . The small scale industries sector has been
assigned an important role in the industrialization of the country by the previous and current
governments of India.
There are no clear official definitions of small. Small scale industries are usually distinguished from
the large-scale and medium-scale industries on the basis of size, capital resources and labor force
in the units. At one time the government of India had grouped small-scale industrial undertakings
into two categories - those using power but employing less than 50 persons and those not using
power and employing less than 100 persons. However, capital investment on plant and machinery
by units is considered as a main criteria for distinguishing between the large and small industries.
An industrial unit can be classified as a small-scale unit only if it meets the capital investment limits
set by the government of India (GoI). These limits have been steadily increased over the years. In
1996, the investment limit for small-scale industry (SSI) was raised from $6 million to $30 million.
9
Production units that are ancillary to large-scale units are also considered as small if they sell not
less than 50 percent of their manufactured products to one or more industrial units.
However, there is a clear distinction between the traditional and modern small industries. The
traditional small industries include khadi and handloom, village industries, handicrafts, sericulture,
coir, etc. Modern small industries manufacture a wide variety of goods from simple items to
sophisticated items such as television sets, electronics control system, various engineering
products, particularly as ancillaries to large industries. The traditional small industries are highly
labor-intensive, while the modern small industries use highly sophisticated machinery and
equipment. The term small-scale industries is mostly used to represent modern small industries.
The SSIs manufacture many items which include rubber products, plastic products, chemical
products, glass and ceramics, mechanical engineering items, hardware, electrical items, transport
equipment, electronic components and equipments, automobile parts, bicycle parts, instruments,
sports goods, stationery items and clocks and watches.
Since Independence, the growth and development of the small-scale sector has been favored by
the GoI on the following grounds: (1) generation of employment opportunities by SSIs, (2)
mobilization of capital and entrepreneurship skills, (3) regional dispersal of industries and (4)
equitable distribution of national income. The policies pursued by the GoI over the years have
helped in the growth of the SSIs to a considerable extent.

Statistics on SSIs
The total number of SSI units increased from 2.082 million units in 1991-92 to 2.724 million units in
1995-96. During the same period, at constant prices, the production increased from nearly $1.6
billion to approximately $2.2 billion. The total number of persons employed in SSIs increased from
12.9 million to 15.2 million[1]. According to Second All-India Census of Registered SSI units, 42
percent of the units were functioning in rural areas, 48 percent in urban areas and 10 percent in
metropolitan areas. 62.2 percent of the units were located in backward areas. The rate of growth of
this sector has been higher as compared to the whole industrial sector.
In terms of the abovementioned development, the progress of the SSI sector is considered
impressive by experts. But the SSIs are mostly effected by a number of problems that have
hampered its absolute gwoth. According to the Seventh Five Year Plan (1985-90) the growth of the
SSIs has been constrained by various factors ``including technological obsolescence, inadequate
and irregular supply of raw materials, lack of organized market channels, imperfect knowledge of

10
market conditions, unorganized nature of operations, inadequate availability of credit, constraint of
infrastructure facilities including power etc. and deficient managerial and technical skills.''

Small-Scale Industry Policy

The government of India (GoI) has taken many measures for the growth and development of the
SSI sector. It has followed a policy of reservation of items for exclusive manufacturing by the small-
scale sector. Over the years, the number of items on the reserved list have increased reaching 836
items in 1996. However, 14 of these items have been dereserved by the 1997-98 Union Budget.
For the past several years the GoI has recognized the need for the modernization of the SSI and
has initiated measures towards this end. It has put in place an infrastructure consisting of many
institutions both at the national as well as state and district levels to work for the modernization of
the SSIs. Some of these institutions will now be discussed in brief.

Small Industries Development Organization (SIDO)

One of the most important initiative undertaken by GoI is the establishment of the SIDO in 1954.
This organization is headed by a Small Industries Development Commissioner (DCSSI). SIDO is
placed under the jurisdiction of the Ministry of Industrial Development and has its headquarters in
New Delhi, India. The branch offices of the DCSSI that are spread all over the country take care of
the establishment, operation and growth of the SSIs. The organizations under the control DCSSI,
at central and state level, organize various types of activities including training, seminar, plant
visits, and group discussions. Some of the major programs of the SIDO are technology
development, energy conservation, pollution control, ISO-9000 etc. They help the SSIs by
providing them with raw materials that are not readily available in the market when needed.
(Earlier, the small industries were mostly depedent on local raw materials. However the modern
small-scale industries manufacturing more sophisticated and new products are using imported raw
materials. Sometimes problems arise in procuring the right quality of raw materials in time, for
operating their production plans and delivery schedules, due to foreign exchange crisis or other
reasons such as working capital problems.) The DCSSI branch offices also assist the SSIs in
collecting outstanding dues from their customers. The SIDO is an umbrella organization under
which a number of institutions operate. These are the service institutes, the district industries
centers and the information banks.

Small Industries Service Institutes (SISIs)

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As of 1991, there were 26 SISIs, 32 branch institutes and 39 extension centers under the DCSSI.
These institutions are fully devoted to provide assistance to the SSIs in all phases of their
operation. These organizations help the SSIs in identifying items for manufacturing, provide
information on technologies, feasibility studies, training, organization of workshops and seminars
and other such programs. SISIs have a program for stocking up spare parts and other supply items
not readily available in the market but necessary for the small-scale industries. The SISIs also
have `reasonably well-equipped' workshops and labs that offer testing services to small-scale
industrial units which are not equipped or have no proper personnel.

Directorate of Industries
The Directorate of Industries is an apex body for promoting industrial development in the states.
The Development Commissioner (Industries) heads the institution which is supported by 6 regional
and 30 district level establishments. The regional offices in each state are headed by the Joint
Director of District Industries Centers. The important functions of this agency is the implementation
of the small-scale industry promotional schemes.

District Industries Centers (DIC)

The idea of District Industries Centers (DIC) was introduced by the Industrial Policy Statement of
December 1977. These DICs were established in each district to `provide and arrange a package
of assistance and facilities for credit guidance, raw materials, training, marketing, etc.'[2]. This
program began in May 1979. As of 1996, there are 422 DICs operating in 431 districts in the
country.

National Small Industries Corporation (NSIC)

The National Small Industries Corporation (NSIC) was formed to assist the small industrial units by
providing equipment on hire-purchase basis. The supplied machines are used in various industries
such as plastics, leather, printing and stationery, automobile componenets and spares, electronic
equipment etc. NSIC projects to promote SSIs include finanacial services, technology upgradation,
technical training and marketing assistance. NSIC has prototype development and testing centers
at three places in the country to make available improved machine designs and to give advanced
technical training to personnel from the small industry. Most states in the country have an industrial
infrastructure corporation that provides buildings, sheds and developed plots to small industrial

12
units and small industries marketing boards to assist in marketing. These corporations in some
state are separate for certain industries such as the electronics, leather, and ceramics.

National Institute of Small Industry Extension Training (NISIET)

The National Institute of Small Industry Extension Training (NISIET) was established as an
autonomous society by the Government of India, at Hyderabad in 1962. The principal activities of
the Institute are the training, research and consultancy in the four related fields of small industry
development, management, extension and information for development. In 1970, the Small
Enterprises National Documentation Center (SENDOC) was set up at NISIET to assist the small
industry in its information needs.

Small Industries Development Bank of India (SIDBI)

The Small Industries Development Bank of India (SIDBI) was set up by GoI under a special act of
the Parliament in April 1990. It is a wholly owned subsidiary of the IDBI. SIDBI has a network of 33
offices (5 regional and 28 branch offices). The Bank was instituted to ensure the increased flow of
financial assistance to SSIs. It assists the SSIs through direct assistance schemes as well as
indirect assistance such as refinancing.

Information banks
The GoI has established information banks in certain areas for assisting academic institutions and
industry. This system is called the National Information System for Science and Technology
(NISSAT). These information banks help the small industrial units with information, particularly with
respect to the latest developments in the field of technology.
Apart from the aforementioned institutions, the Trade Development Authority of India and the state
governments organize trade fairs and exhibitions to provide opportunities for the small industrial
units to exhibit their products. The SSIs can also use the Regional Testing Centers to test their
products and help them maintain their product quality. The Indian Standard Institution has
developed standards to assist the SSIs.
There are several Indian R&D academic and technical institutions such as the Indian Institutes of
Technology, universities, colleges and polytechnics that can provide equipment, expert personnel
and testing facilities and other services to the SSIs. Each of these institutions have a consulting
division to cater to the needs of the SSIs. The institutions can be used as consultants by the SSIs,

13
if necessary on a continuous basis. However, these services are not used by the SSIs for various
reasons including the lack of information and lack of time to pursue such avenues among others.

Recent modernization efforts

Inspite of the existence of all the aforementioned organizations to help the development of the SSI,
an increasing spread of sickness is reported in the sector. Acknowledging this fact, the DCSSI set
up a working group in 1985 to make recommendations for a suitable action. The suggestions made
by this group included the following:[3]
Establish a well-equipped design and technology development cell in the office of the DCSSI to
coordinate programs of modernization in the small small-scale sector.
Special cells called ``Product-cum-Process Development Centers'' will be necessary for
undertaking research, locating sources of modern technology, identifying suitable technology for
transfer and help the small-scale industries in obtaining inputs.
Liberal imports of technology and equipment should be allowed to modernize the small-scale
sector.
Incentives should be provided to enterprises with modern technologies to transfer them to the
SSIs.
In August 1991, the GoI announced its new policy towards the small scale sector. The government
announced that a Technology Development Cell would be set up in the Small Industries
Development Organization (SIDO). This Cell would provide technology inputs ``to improve
productivity and competitiveness of the products of the small scale sector''. The Technology
Development Cell would coordinate with other industrial research and development organizations
to achieve its objectives. Information on whether such a Cell had been set up was not available.
Under its scheme of direct assistance, the SIDBI had launched the Technology Development and
Modernization Fund. The main objective of this fund is ``to encourage existing industrial units in
the small scale sector to modernize their production facilities and adopt improved and updated
technology so as to strengthen their export capabilities''. Through this fund, its helps the SSIs meet
the costs of purchasing capital equipment, acquisition of land, expenditure incurred in obtaining
ISO 9000 series certification and also the costs for improvements in packaging. The SSIs have to
meet some criteria before they can apply for financial assistance under this schemee, for e.g. units
must be in operation for atleast three years. It is also working towards prospects of marketing the
products of SSIs in the internal and international markets.

14
One of Development and Support Services extended by the SIDBI is the Enterprise Strengthening
service. Under this service, there are specific programs including technology transfer, technology
upgradation in indentified industry clusters and management development.
In the 1996-97 Union Budget, the government announced the setting up of a Technology
Development Board and this has been instituted under the Department of Science and
Technology. During the presentation of the budget, the Union Minister for Finance proposed that
the unutilized corpus of $1.75 billion under the Technology Development and Modernization Fund
Scheme of the SIDBI should be provided to the State Financial Corporations and commercial
banks. These banks will in turn be able to make it available for the SSIs for modernization projects.
In addition, the SIDO and SISIs have introduced a program for promoting technological
modernization of the SSIs. Under this initiative, the small production units are provided information,
advice and training. Reports are distributed among them for spreading modernization information.
The SSIs can register for these programs for a fee. As of March 1986, there were 570 enterprises
registered under the modernization scheme of the SIDO. However only 24 of these have been
provided with modernization guides.
A recent change in the small-scale industrial policy allows the large firms to hold up to 26 percent
of equity in small enterprises without the requirement of consolidation of accounts. This is
considered as a good way to induce the transfer of technology and skills from large industrial units
to SSIs. Industry experts are however skeptical about this. Most large units use the small-scale
sector as sub-contractors. Doubts have been expressed whether these large units would allow for
transfers of technology to SSIs and enable them to grow and become independent units in their
own right.

Problems in modernization of SSIs

The existence of a huge number of small industrial units manufacturing a variety of products
makes technological modernization a difficult task in India. Small industrial units in India are mostly
managed by entrepreneurs who are caught up in the day-to-day matters of production and
management of their units and find it difficult to keep themselves abreast of the various
technological developments. In addition, the GoI has provided protection to the SSIs from
competition from local large enterprises and imports through many policy measures. Therefore
there is no threat to their markets. The government also gives capital subsidies, excise
concessions and backward technology subsidies to the SSIs. All of these reduce any incentive for
the small industrial units to constantly upgrade their technology or for technological innovation.
15
In a business outlook survey conducted by the Confederation of Indian Industry (CII) in 1996, 26
percent of those surveryed highlighted the lack of modernization. The same survey found an
encouraging feature that there is a increasing awareness of quality control among the SSIs. 49
percent of the those respondents in the survey had initiated steps for obtaining ISO 9000
certification.

Conclusion
As can be inferred from the information in the preceding section, the various Indian governments
have proclaimed many policies and also implemented several initiatives and programs. Most of the
policies before the 1990s were aimed at protecting the small sector rather than making it
competitive. Some of the major issues that these policies did not address are as follows:
Problems in obtaining credit One of the serious problems affecting the small scale sector is the
hardship of obtaining credits from the banking sector. Although this has been a problem for past
several years and though the issue has been mentioned in budget speeches by government, none
of the policies seem to solve it. Many entrepreneurs who had been drawn into industrial activities
hoping to receive financial assistance have subsequently found that working capital is not
forthcoming[4]. The internal financial resources of the SSIs are held to be so small that have no
surplus money in times of business strain. This along with the situation of unstable profits prevent
the banks from issuing them unsecured loans. As a result, many of these SSIs are still dependent
for funds on money-lenders who charge high interest rates. And those who have tried to obtain
loans from the various financial institutions have only faced corruption associated with grant of
loans and long delays in delivery.
In a 1996 survey of small entrepreneurs by the Confederation of the Indian Industry (CII), a large
proportion of the respondents attributed their problems to delayed payments, high cost of
borrowing and inadequate credit.
Sickness in the SSIs As of September 1992, about 233 thousand small-scale units were sick.
Many of the sick units ultimately close down due to finance and marketing problems. Poor
management has also be identified as a major cause of sickness. Therefore a need exists to
countinously provide help in terms of training for the small enterprises to manage themselves. The
recent policies and programs providing management training by the SIDBI is hopefully a step
towards solving this problem.
Negative impacts of reservation policy The previous and current small-scale industries policies
have followed the policy of reserving certain items to be manufactured only by the SSIs. Many of
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the items that are reserved are in the mechanical engineering, chemical products and auto-
ancillary industry groups. Though the policy was mainly aimed at protecting the small firms from
competition from the large firms, the lack of any licensing to identify SSIs has resulted in the entery
by large firms into those areas. There is no enforceable penalty for moving into reserved areas. It
is also held by many authors that the policy is actually counterproductive as those producing non-
reserved items have performed better than those in reserved areas. Hence the reservation policy
tends to become large redundant.
The Equity policyThe New Small Industry Policy allows the large firms to have equity in SSIs. This
policy is contended to be a bad one as it only encourages the small units to continue to act as
dependent on the large firm. A fear that the large firms might at a later stage takeover the small
units is also expressed by some industry experts.
Apart from the abovementioned critical issues, there are several other issues such as non-
classification of a separate medium enterprise under the Indian industrial sector, regional
imbalances in the concentration of small scale industries and survey data showing that
government institutions were the ``least important sources of technological information.'' More
information on these issues could not be obtained.
Another concern is the lack of coordination between the various support organizations set up by
the government. It would also be interesting to know if any evaluation systems are in place for
these institutes and their programs. Information on this aspect could not be gathered.
An article by Ira Gang mentions that policies intended to support the small industry such the
reservation, financial incentives, etc. are ``neither promoting employment nor improving the
competitive base of small firms. Rather, they are working as strong disincentives for growth of
small firms.''
Though all the previous efforts at helping the SSIs to grow and modernize seem to have had very
little effect, the recent modernization efforts such as the setting up of the Technology Development
Board, the Technology Development and Modernization Fund, greater emphasis on providing
management skills and in obtaining ISO 9000 certification seem more focused and promising.
Since these have very new, no specific conclusions as to their success or impact can be drawn at
this time. Hopefully, some systematic methods to ensure that SSIs are actually receiving benefits
and necessary assistance will be put in place.

Brand

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 [1][page needed]
A brand is the identity of a specific product, service, or business . A brand can take many
forms, including a name, sign, symbol,color combination or slogan. The word brand began simply
as a way to tell one person's cattle from another by means of a hot iron stamp. A legally protected
brand name is called a trademark. The word brand has continued to evolve to encompass identity -
it effect the personality of a product, company or service.
Brand Awareness
Brand awareness refers to customers' ability to recall and recognize the brand under different
conditions and link to the brand name, logo, jingles and so on to certain associations in memory. It
helps the customers to understand to which product or service category the particular brand
belongs to and what products and services are sold under the brand name. It also ensures that
customers know which of their needs are satisfied by the brand through its products.(Keller) 'Brand
love', or love of a brand, is an emerging term encompassing the perceived value of the brand
image. Brand love levels are measured through social media posts about a brand, or tweets of a
brand on sites such as Twitter. Becoming a Facebook fan of a particular brand is also a
measurement of the level of 'brand love'.
Global Brand
A global brand is one which is perceived to reflect the same set of values around the world. Global
brands transcend their origins and creates strong, enduring relationships with consumers across
countries and cultures.
Global brands are brands sold to international markets. Examples of global brands include Coca-
Cola, McDonald's, Marlboro, Levi's etc.. These brands are used to sell the same product across
multiple markets, and could be considered successful to the extent that the associated products
are easily recognizable by the diverse set of consumers.
Benefits of Global Branding
In addition to taking advantage of the outstanding growth opportunities, the following drives the
increasing interest in taking brands global:
Economies of scale (production and distribution)
Lower marketing costs
Laying the groundwork for future extensions worldwide
Maintaining consistent brand imagery
Quicker identification and integration of innovations (discovered worldwide)
Preempting international competitors from entering domestic markets or locking you out of other
geographic markets
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Increasing international media reach (especially with the explosion of the Internet) is an enabler
Increases in international business and tourism are also enablers
Social Legislation
Table of Contents
PREFACE
1. Social Legislation
2. History of Social Legislation in India
3. Labour Legislation in India
4. Growth and Concept of Social Justice
5. Child Labour in India
6. Child Labour (Prohibition and Regulation Act, 1986)
7. Bonded Child Labour
8. Definition and Concept of Civil Rights
9. The Protection and Concept of Civil Rights
10. Meaning, Forms and Purpose of Dowry
11. The Dowry Prohibition Act, 1961
12. Child Marriage and Restraint Act
13. Social Legislation and Crime against Women
14. The Immoral Traffic Prevention Act, 1956
15. Law as an Instrument of Social Change

Social Legislations
Post War Environment Restoration: Identifying Stakeholders And Imputing Liability
by Devyani Tewari on June 21, 2010
ADMINISTRATION OF JUSTICE: ITS NECESSITIES AND KIND
by mohi kumari on May 10, 2010
The problem of Bonded labour in India: An analysis in the light of Bonded labour(abolition) Act,
1976
by kartik gupta on April 24, 2010
Professional Misconduct
by swapneshwarg on April 13, 2010
Waging a lost battle: combating child labour in India
by indranil on March 12, 2010
19
Domestic Violence Act- Sociological Perspective
by Ritika Banerjee on March 12, 2010
Female Education and Development in India
by alekhya41 on March 12, 2010
National Human Rights Commission Role in Human Rights Protection
by mridushi on March 12, 2010
Consumer Protection And The Banking Services : A Legal Perspective

The BCG matrix

product portfolio method

The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities
should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should
have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth
products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind
it is that the bigger the market share a product has or the faster the product's market grows the better it is for the
company.

Placing products in the BCG matrix results in 4 categories in a portfolio of a company:

1. Stars (=high growth, high market share)
- use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.
- frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share,
because the rewards will be a cash cow if market share is kept.
2. Cash Cows (=low growth, high market share)
- profits and cash generation should be high , and because of the low growth, investments needed should be low.
Keep profits high
- Foundation of a company
3. Dogs (=low growth, low market share)
- avoid and minimize the number of dogs in a company.
- beware of expensive turn around plans.
- deliver cash, otherwise liquidate
4. Question Marks (= high growth, low market share)
- have the worst cash characteristics of all, because high demands and low returns due to low market share
20
- if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later,
as the growth stops, a dog.
- either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or
deliver cash

The BCG Matrix method can help understand a frequently made strategy mistake: having a one-
size-fits-all-approach to strategy, such as a generic growth target (9 percent per year) or a generic
return on capital of say 9,5% for an entire corporation.
In such a scenario:
A. Cash Cows Business Units will beat their profit target easily; their management have an easy
job and are often praised anyhow. Even worse, they are often allowed to reinvest substantial cash
amounts in their businesses which are mature and not growing anymore.
B. Dogs Business Units fight an impossible battle and, even worse, investments are made now
and then in hopeless attempts to 'turn the business around'.
C. As a result (all) Question Marks and Stars Business Units get mediocre size investment funds.
In this way they are unable to ever become cash cows. These inadequate invested sums of money
are a waste of money. Either these SBUs should receive enough investment funds to enable them
to achieve a real market dominance and become a cash cow (or star), or otherwise companies are
advised to disinvest and try to get whatever possible cash out of the question marks that were not
selected.

Some limitations of the Boston Consulting Group Matrix include:

High market share is not the only success factor
Market growth is not the only indicator for attractiveness of a market
Sometimes Dogs can earn even more cash as Cash Cows
BOSTON CONSULTING GROUP MATRIX
In the late 1960s the Boston Consulting Group, a leading management consulting company,
designed a four-cell matrix known as BCG Growth/Share Matrix. This tool was developed to aid
companies in the measurement of all their company businesses according to relative market share
and market growth. The BCG Matrix made a significant contribution to strategic management and
continues to be an important strategic tool used by companies today. The matrix provides a
composite picture of the strategic position of each separate business within a company so that the
management can determine the strengths and the needs of
21
Figure 1
Market Growth/Share Matrix
all sectors of the firm. The development of the matrix requires the assessment of a business
portfolio, which includes an organization's autonomous divisions (activities, or profit centers).
The BCG Matrix presents graphically the differences among these business units in terms of
relative market share and industry growth rate. The vertical axis represents in a linear scale the
growth rate of the market in which the business exists (see Figure 1). This is generally viewed as
the expected growth rate for the next five years of the market in which a particular business
competes. The values of the vertical axis are the relevant market growth rates (i.e., 5 percent, 10
percent, 15 percent, 20 percent, etc.). Usually a 10 percent cut-off level is selected in order to
distinguish high from low market growth rate (a 10 percent value corresponds to doubling current
experience in the next five to seven years).
The horizontal axis represents in a logarithmic scale the market share of a business within a firm
relative to the market share of the largest competitor in the market. For example, Company A may
have a 10 percent market share and Company B, the leading competitor, holds 40 percent of the
market. Company A's market share relative to Company B's market share is 25 percent, or .25. If
Company A has a 40 percent share and Company B has a 10 percent share, Company A's market
share is 400 percent, or 4.0.
Relative market share is an indicator of organization's competitive position within the industry, and
underlies the concept of experience curve. Thus, business organizations with high relative market
share tend to have a cost leadership position.
Each of a company's products or business units is plotted on the matrix and classified as one of
four types: question marks, stars, cash cows, and dogs. Question marks, located in the upper-right
quadrant, have low relative market share in a high-growth market. These businesses are
appropriately called question marks because it is often uncertain what will happen to them. Careful
examination by management can help determine how many resources (if any) should be invested
in these businesses. If significant change can increase relative market share for a question mark, it
22
can become a star and eventually gain cash-cow status. If relative market share can not be
increased, the question mark becomes a dog.
The upper-left quadrant contains stars, businesses with high relative market share in high-growth
markets. These businesses are very important to the company because they generate a high level
of sales and are quite profitable. However, because they are in a high growth market that is very
attractive to competitors, they require a lot of resources and investments to maintain a high market
share. Often the cash generated by stars must be reinvested in the products in order to maintain
market share.
When the market growth slows down, stars can take different paths, depending on their abilities to
hold (or gain) market share or to lose market share. If a star holds or gains market share when the
growth rate slows, stars become more valuable over time, or cash cows. However, if a star loses
market share, it becomes a dog and has significantly less value (if any) to the company.
The lower-left quadrant contains businesses that have high relative market share in low-growth
markets. These businesses are called cash cows and are highly profitable leaders in their
industries. The funds received from cash cows are often used to help other businesses within the
company, to allow the company to purchase other businesses, or to return dividends to
stockholders.
Dogs generate low relative market share in a low-growth market. They generate little cash and
frequently result in losses. Management should carefully consider their reasons for maintaining
dogs. If there is a loyal consumer group to which these businesses appeal, and if the businesses
yield relatively consistent cash that can cover their expenses, management may choose to
continue their existence. However, if a dog consumes more resources than it's worth, it will likely
be deleted or divested.
Strategic business units, which are often used to describe the products grouping or activities, are
represented with a circle in the BCG Matrix. The size of the circle indicates the relative significance
of each business unit to the organization in terms of revenue generated (or assets used).
Although the BCG Matrix is not used as often as it was in past years, one big advantage of the
matrix is its ability to provide a comprehensive snapshot of the positions of a company's various
business concerns. Furthermore, an important benefit of the BCG Matrix is that is draws attention
to the cash flow, investment characteristics, and needs of an organization's business units, helping
organizations to maintain a balanced portfolio.
Unfortunately, the BCG Matrix, like all analytical techniques, also has some important limitations. It
has been criticized for being too simplistic in its use of growth rate and market share. Market
23
growth rate is only one variable in market attractiveness and market share is only one variable in a
business's competitive position. Furthermore, viewing every business as a star, cash flow, dog, or
question mark is not always realistic. A four-cell matrix is too simple because strategic competitive
positions are more complicated than "high" and "low".
Another disadvantage of using the BCG Matrix is that it is often difficult for a company to
sufficiently divide its business units or product lines. Consequently, it is difficult to determine
market share for the various units of concern.

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