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A study on market penetration


HCL Info systems Ltd is one of the pioneers in the Indian IT market , with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. We have been in the forefront in introducing new technologies and solutions. The highlights of the HCL saga are summarised below: HCL began an exciting journey more than three decades ago with a dream to give India its very own microcomputer. The sheer clarity of vision and hard work led to a revolution and laid a foundation for the Indian IT industry, which has today acquired a distinct position amongst major economies in the world. Today HCL is a USD 6.2 billion global enterprise and Ajai Chowdhry one of the founder members has been the key force in driving the growth of HCL and today leads, HCL Infosystems the flagship company. HCL Infosystems, the flagship company of the HCL enterprise, had a turnover of Rs. 400.6 crores (USD 85 million) in 1994 which underwent tremendous growth to become Rs. 10,901 crores (USD$ 2.4 billion) today. Employing - 7762 people, the company has today emerged not only as the countrys information-enabling powerhouse but a great place to work with industry accolades and awards received year after year. HCL Infosystems has a long standing history of being involved ever since the inception of the IT Industry in the country. When government was seeking collaboration, HCL Infosystems were one of the first to partner in laying down the IT infrastructure in India from something as basic as introducing a computer in the remotest part of the country. In a developing country like ours where we are leapfrogging to match the pace of developed SJBIT Page 1

A study on market penetration

global economies, ICT is rapidly becoming the core of any intelligent infrastructure and HCL Infosystems has developed customised & efficient system integration solutions designed to fuel the Indian growth engine. With relentless efforts to fuel the PC market, HCL Infosystems has been acting as a catalyst for affordable & economical computing. Today HCL Infosystems has become one of the leading System Integration Company in the country, implementing several turnkey Systems and Networking Integration projects nationwide and across most of the vertical business segments. HCL Infosystems is uniquely poised today in the market making it the only company with India as its primary focus, offering state of the art technology solutions to empower a host of Defence, Homeland Security frameworks, social sectors and government schemes for Nation building. HCL Infosystems has being powering numerous projects across sectors like Defence, Homeland Security, Airport & Railways Intelligent Infrastructure, Telecom, Banking, Public Distribution System, E-governance, Education, NREGA etc. With global expansion and sharing best practices with the world and in particular developing markets, the company is today strategically expanding in markets like Middle East, Southeast Asia and Africa. The company has developed more than 30 IP products to serve different segments of the markets backed by various hardware and software services. HCL today has India's largest vertically integrated computer manufacturing facility with over three decades of electronic manufacturing experience & HCL desktops is the largest selling brand into the enterprise space. With Indias largest ICT services network that reaches to every corner of India, HCLs award winning Support Services makes it the preferred choice of enterprise and consumers alike. HCL Infosystems has a 100% subsidiary that addresses the physical security technology system integration market. The subsidiary leverages technology to build a security framework called Safe State that safe guards life, infrastructure & society.


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A study on market penetration


HCL Infosystems Ltd is India's premier information enabler and country's leading ICT system integrator and distribution company. The company is among the leading players in all the segments comprising the domestic IT products, solutions and related services, which include PCs, Servers, Imaging, Voice & video solutions, Networking Products, TV and FM Broadcasting solutions, Communication solutions, System Integration, ICT education & training, Digital lifestyle Solutions and Peripherals. They offer value-added services in the key areas such as system integration, networking consultancy and a wide range of support services.

A. Background and inception of the company

HCL Infosystems Ltd is one of the pioneers in the Indian IT market , with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. We have been in the forefront in introducing new technologies and solutions. The highlights of the HCL saga are summarised below: Developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC in 1978. This micro-computer virtually gave birth to the Indian computer industry. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP

HCLS Journey of Accomplishments

1976 Hindustan Computers Limited (HCL) is born. SJBIT Page 3

A study on market penetration

1977 Distribution alliance with Toshiba for copiers and notebooks. 1978 HCL successfully ships indigenously designed micro-computer at the same as apple, setting the place for Indian computer industry. 1983 Indigenously develops an RDBMS, a networking OS and client server architecture, at the same time as global IT peers. 1986 HCL becomes the largest IT Company in India. 1994 Forges distribution alliances with Ericsson switches and nokia cell phones. 1997 Marks advent in to software services as HCL technologies. 2001 JV with Deutsche bank; Acquires British Telecoms Apollo contact centre in Belfast, Northern Island. 2003 HCL becomes the first company to cross the 1,00,000 units milestone in Indian desktop Pc Market. 2005 Joint venture with NEC, Japan. 2006- HCL Infosystems centre is launched. 2007 HCL as enterprise crossed the $4 billion mark. HCL BPO becomes the world first BPO company to get PCMM certified. time

2008 HCL Infosystems is ISO 9001:2000 certified. HCL crosses $5 billion mark.

2009 100* HCL Infosystems centre signed up.

B. Nature of the business carried

System Integration Bringing to you reliable System Integration Solutions and Services.


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A study on market penetration

Strategic Outsourcing HCL offers world class Strategic Outsourcing Services to enterprises of all sizes.

IT Infrastructure Consultancy Benefit from our IT Infrastructure Consultancy and more...

Infostructure Services Offering a wide range of dependable Infostructure Solutions.

IT Audit - Security, Compliance & Risk Management Offering complete IT Audit Services for Small to Large Businesses.

Networking Infrastructure Introducing dependable Networking Infrastructure Services.

ERP Consulting & Services Benefit from our reliable ERP Consulting and Services.


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Facilities Management Introducing innovative Facilities Management services for complete satisfaction.

Managed Services Offering best in class Managed Services that you can depend upon.

VPN & Managed Networking (HCL Infinet) Benefit from our Internet Infrastructure Services.

C. Vision, Mission And Quality Policy

Vision Together we create a enterprise of tomorrow

"To provide world-class Information Technology solutions and services in order to enable our customers to serve their customers better

Quality Policy

"We shall deliver defect-free products, services and solutions to meet the requirements of our external and internal customers, the first time, every time."


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The history of structured quality implementation in HCL Infosystems began in the late 1980s with the focus on improving quality of its products by using basis QC tools and Failure Reporting and Corrective Active Systems (FRACAS). We also employed concurrent engineering practices including design reviews, and rigorous reliability tests to uncover latent design defects. In the early 90s, the focus was not merely on the quality of products but also the process quality systems. Our manufacturing unit at NOIDA was certified initially to ISO 9002:1994 by Bureau Veritas Certification in 1994 and later on to ISO 9001:1994 in 1997. As of now, all our manufacturing units are certified by Bureau Veritas Certification as perISO 9001:2000 and ISO 14001: 2004 In early 1995, a major quality initiative was launched across the company based on Philip B. Crosby's methodology of QIPM (Quality Improvement Process Management). This model was selected to because it considered the need and commitment by an organization to improve but more importantly, the individual's need towards better quality in his personal life.

D. Products/ Service Profile

Product Engineering & Technology Development: The Engineering and R & D services department runs the largest outsourced engineering center outside the US which is a testimony to the 30 year product engineering experience. The company offers a comprehensive range of R&D and Engineering services to component vendors, OEMs, ODMs and ISVs across multiple industry segments and domains. Infrastructure: HCL Infrastructure Management Division is focused on addressing the growing demand for the cost-effective management of technology infrastructure across geographically dispersed locations. IT Infrastructure Management is in the HCL DNA, drawing resources from the 30 year pioneering heritage in the area of computing in line with global giants SJBIT Page 7

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BPO: Business Processing Outsourcing is heading towards a maturity level where a new form of BPO, called Transformational BPO, is evolving that constitutes Full Process Outsourcing and Multiple Process Outsourcing . The evolving trend is more focused towards compliance , time-to-market, focus on core process, and quality improvement rather than cost savings. Applications: Leveraging strong partnerships with platform / product companies, the team of applications professionals deliver unprecedented value to few of the largest players in the field of Financial Services, Retail and Healthcare.

ITHardware: HCL Infosystems portfolio of products covers the entire spectrum of the information technology needs of its customers. By virtue of the immense diversity of markets and customers that it address, HCL Infosystems products offerings include everything from high end enterprise level servers for mission critical applications to multimedia home computers. Telecom and Imaging Products and Retail: HCL Infinet covers a range of telecom and imaging products including enterprise networking.HCL tied up with Nokia in 1995 with the sale and services of Nokia mobile phones in India. Networking and Network Integration: Network Management involves Network Monitoring of Bandwidth Utilization, Network Errors / Collisions, Network Troubleshooting, Day-today Network Operations, Network performance monitoring, Tuning Network Operating System and advise action plan. SJBIT Page 8

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E. Area Of Operation National/ Regional

Client For Basic IT & Soft Skills Training Program Indian Army Indian Air Force Indian Navy Rural Electrification Corporation Limited Census of India West Bengal Electronics Industry Development Corporation Department of Posts Confederation of NGO's of Rural India


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HCL CDC Some Key Projects 1. Client: Tribal Welfare, Maharashtra Scope: To train Tribal school students of Class V to Class XII across Maharashtra. Modules Covered: Basic Computer Programs. 2. Client: Tamil Nadu Government, (VAZHHNDHU KAATUVOM) Scope: To Select and Train 100 un-employed youth ( Girls and Boys ) for each of 15 Districts of Tamil Nadu and also assist them in placement Modules Covered: Basics of Computer Hardware and Networking. 3. Client : Confederation of NGOs of Rural India(CNRI) Scope: To Setup 3000 Center for Development of Employable Skills and train rural youth of the Country through NGOs. SJBIT Page 11

A study on market penetration

Modules Covered : English Learning in Vernacular, Softskills,H/W,Sales,Accounts

4. Client : Gujarat Informatics Limited Scope : Computer Functional Training to Govt. Employees of State of Gujarat in 25 districts under the Capacity Building Scheme under National e-Governance Plan (NEGP) Modules Covered : Computer System (OS & Hardware), Computer Network, Maintenance & Troubleshooting. 5. Client : CRIS (Centre for Railway Information System, an Organisation under Ministry of Railways) Scope : Two Years Rate Contract for Training Railway employees across the country. Modules Covered : Hardware/Software/Networking/Management

6. Client : Indian Air Force Scope : DIT (Directorate of Information Technology)-Indian Air Force, conducts various trainings on Development and IT Pro Skills for their officers for taking care of their own IT Infrastructure Modules Covered : Training on Oracle 9i and 10g with Java, Web Security, JAVA J2EE, Linux System Admin. 7. Client : INS Hamla, Naval Command Scope : INS HAMLA (Logistics Training Establishment ) for their own IT Assistants and IT Managers Modules Covered : Dot Net, Databases, Multimedia & Web Designing, Basic Networking, Windows Server 2K3.


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8. Client : National Handicapped Finance Development Corporation Scope : Training to Specially-abled persons across the country. Modules Covered : MS Excel, Word, Power-point, Internet, Tally Client : BEML (Bharat Earth Movers Ltd) Objective : Training on Enhancing Computer Skills to Enhance the Productivity of Employees in the Area of Planning and Operations Modules Covered : Word, Excel and Power Point

F. Ownership Pattern:
HCL -Organization structure

Ajai chowdhary Chairman An engineer by training, Ajai chowdhry is one of the six founder member of HCL and took over the reins of HCL infosystems, the flagship company of the group, as president and CEO in 1994. He was appointed the chairman of HCL infosystem in november 1999. In recognition of his contribution in championing the cause of the domestic Indian IT industry, Ajai has been conferred the DATAQUESTIT Man of the year 2007 award amongst other awards.


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Harsh chatale CEO Harsh chitale joined HCL infosystem as Chief Executive Officer in 2010 and heads the overall business strategy and operations of HCL infosystem. He brings a wealth of experience as a senior business leader with rich business management experience in both indian and global companies. Harsh is a recipient of the Directors Glod Medal at IIT Delhi, from where he completed his Electrical Engineering.

J V RAMAMURTHY President and Chief Operating Officer. JV Ramamurthy is president and Chief Operating Officer, HCL infosystems Ltd. He brings 3 decades of diverse industry experience and leadership to the company. A technocrat and a man of broad vision, he has spearheaded companys entry into number of new verticals and partnership.


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Sandeep Kanwar joined HCL in 1988 and in a span of eight years progressed to the position of Chief Financial Officer at the young age of 35. He is well respected amongst colleagues & customers for his financial acumen and management skills.

HARI-BASKARAN EVP Hari, a BE graduate and alumni of IIM - Bangalore, has been instrumental in building up the largest retail network for digital life style products in the country. He heads the Distribution and Marketing Services and Retail business division for HCL.

GEORGE-PAUL EVP George Paul, a graduate in Electronics & Telecommunications joined HCL in 1983. He heads the Marketing Function along with HCL R&D. SJBIT Page 15

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RAJEEV-ASIJA EVP Rajeev, an engineering graduate, joined HCL in 1983,. With two decades of industry experience, he heads the Enterprise Solutions & services of HCL.

RAJENDER-KUMAR EVP Rajender Kumar joined in 1976. With over three decades of industry experience in procurement, manufacturing & channel development, he heads the Corporate Initiatives including Quest for Excellence Program.

M.CHANDRASEKARAN Sr. VP M Chandrasekaran joined HCL in 1984. With over two decades of industry experience in sales, support and marketing, he heads the office automation products business for HCL.


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VIVEK-PUNEKAR VP HR Vivek joined HCL in 1986. An engineer by profession with over two decades of industry experience in various functions, he heads the HR function for the company. Credited with innovative HR initiatives that has made HCL among the best companies to work for.

G. Competitors Information
Redington CMC S Mobility Smartlink Net

Edurite Educomp Next

H. Infrastructure Facilities: HCL Technologies Infrastructure Services Division

HCL Technologies Infrastructure Service Division (HCL ISD) is the fastest growing line of business of HCL Technologies. An end to end owner of IT Infrastructure through differentiated value proposition Industrialized IT Management. The concept of Industrialization is truly based with cloud computing as one of the platform of delivering


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that service. What the customer gets is optimized, flexible, centralized & standardized business aligned IT. With over 15,000 employees and a robust global delivery network of 20 service delivery centers across the globe, our scale of Infrastructure operations involves centralized management of globally distributed assets of over $1 million devices across 5 continents; resolving over 10 million helpdesk calls while supporting over 1 million business users

I.Achievements/ Awards:
HCL Infosystems awarded with the CMMi (Capability Maturity Model integration) Maturity Level 5 certification for its Jaipur Development Centre HCL Infosystems - Dream Company of the Year!!! The organization bags no. 1 position in DQ- Best Employer Survey 2011! Hcl infosystems awarded Dun & Bradstreet Rolta Corporate Award Under computer hardware and peripherals category Honourable president of India feats Mr Ajai Chowdhry, IT Industrys visionary, with prestigious Padma Bushan for his immense contribution to trade & Industry. HCL Infosystems Awarded most promising new technology for urban Applications at Municiplica 2011 HCL Infosystems awarded as a powerbrand of India in the IT & Office Automation Category. HCL Infosystems tops IDC-Dataquest Customer Satisfaction Charts for 3rd consecutive year.

j. Work Flow Model: SJBIT Page 18

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HCL Infosystems as System Integrator for Content Management Solution

k. Future growth and prospects

BUSINESS: Incorporated in 1976 and headquartered in New Delhi, HCL Infosystems is one of the early entrants into the Indian IT market. The company holds a diversified business portfolio, including computer systems and other related products and services, telecommunication and office automation and internet and related services. The company sells its own IT products, third-party digital lifestyle products and office automation products through its extensive distribution and retail network. The wide value-added distribution network of Digilife stores spreads across 93,000 retail outlets across more than 11,000 towns and cities of India. To leverage on the vast distribution network, the company has entered into joint ventures and partnerships with the brands such as Nokia, Apple, Kodak, Toshiba, Microsoft and Konica Minolta. The company has now entered into newer sectors like e-governance, health and education within the same domain. GROWTH DRIVERS: The company was hit by the slowdown in overall economy for the last few quarters. However, the management has cited at signs of demand recovery in its major products and services segment. To further explore possibilities, it has expanded its focus to sectors including oil & gas, travel & logistics and manufacturing. It plans to provide application development, maintenance and enterprise business solutions to these verticals. For this, it has created a team of over 250 professionals. Over the years, HCL Infosystems has increased its presence in governmentrelated IT projects. Some of its recent wins include digitising data for Census and deployment of India's largest Airport Operation Control Centre (AOCC) at T3 terminal at the Delhi International Airport. It has recently signed a deal worth `100 crore with the government spread over 87 months to build a secure communication network. The network would cover SJBIT Page 19

A study on market penetration

18 government departments and 10,000 users including the police force. The company has bagged `1,000-crore public distribution contract from the Madhya Pradesh government. HCL Infosystems has woven product IPs (intellectual property) around these solutions, which are deployable on licence basis to other projects. The company has recently made its foray into the handheld gaming console market as an initiative to expand its existing business. The telecom segment, which forms a major chunk of the company's revenue, is expected to fare well given the advent of 3G and BWA services coming on stream. HCL Infosystems has lined up a capex of `300 crore spread over 2-3 years towards consolidation of the existing facilities and to further expand the software business. HCL Infosystems intends to gain prominence in the IT market and is well positioned to benefit in the coming quarters. HCL Infosystems looks poised for growth in future Parul Bhatnagar, ET Bureau Oct 4, 2010, 02.17am IST Tags:

Revenue| investors| HCL Infosystems Ltd

The recent acquisition of Dubai-based NTS Group has helped HCL Infosystems expand in emerging markets of Middle East and Africa. The company intends to further expand its reach through acquisitions domestically as well as internationally. It has also ventured into the IT services domain through launching new technology services including cloud computing, education and homeland security.


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CHAPTER 3 Mckinseys 7S frame work Introduction
This paper discusses McKinsey's 7S Model that was created by the consulting company McKinsey and Company in the early 1980s. Since then it has been widely used by practitioners and academics alike in analysing hundreds of organisations. The paper explains each of the seven components of the model and the links between them. It also includes practical guidance and advice for the students to analyse organisations using this model. At the end, some sources for further information on the model and case studies available on this website are mentioned. The McKinsey 7S model was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry (Pascale & Athos, 1981; Peters & Waterman, 1982). All of the authors worked as consultants at McKinsey and Company; in the 1980s, they used the model to analyse over 70 large organisations. The McKinsey 7S Framework was created as a recognisable and easily remembered model in business. The seven variables, which the authors term "levers", all begin with the letter "S":


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Figure 1: McKinsey's 7S Model These seven variables include structure, strategy, systems, skills, style, staff and shared values. Structure is defined as the skeleton of the organisation or the organisational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The systems are the routine processes and procedures followed within the organisation. Staff are described in terms of personnel categories within the organisation (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the organisation as a whole. The way in which key managers behave in achieving organisational goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organisation. The shared values variable, originally termed superordinate goals, refers to the significant meanings or guiding concepts that organisational members share (Peters and Waterman, 1982). The shape of the model (as shown in figure 1) was also designed to illustrate the interdependency of the variables. This is illustrated by the model also being termed as the "Managerial Molecule". While the authors thought that other variables existed within SJBIT Page 22

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complex organisations, the variables represented in the model were considered to be of crucial importance to managers and practitioners (Peters and Waterman, 1982). The analysis of several organisations using the model revealed that American companies tend to focus on those variables which they feel they can change (e.g. structure, strategy and systems) while neglecting the other variables. These other variables (e.g. skills, style, staff and shared values) are considered to be "soft" variables. Japanese and a few excellent American companies are reportedly successful at linking their structure, strategy and systems with the soft variables. The authors have concluded that a company cannot merely change one or two variables to change the whole organisation. For long-term benefit, they feel that the variables should be changed to become more congruent as a system. The external environment is not mentioned in the McKinsey 7S Framework, although the authors do acknowledge that other variables exist and that they depict only the most crucial variables in the model. While alluded to in their discussion of the model, the notion of performance or effectiveness is not made explicit in the model. Description of 7 Ss Strategy: Strategy is the plan of action an organisation prepares in response to, or

anticipation of, changes in its external environment. Strategy is differentiated by tactics or operational actions by its nature of being premeditated, well thought through and often practically rehearsed. It deals with essentially three questions (as shown in figure 1) where the organisation is at this moment in time, 2) where the organisation wants to be in a particular length of time and 3) how to get there. Thus, strategy is designed to transform the firm from the present position to the new position described by objectives, subject to constraints of the capabilities or the potential (Ansoff, 1965).


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Structure: Business needs to be organised in a specific form of shape that is

generally referred to as organisational structure. Organisations are structured in a variety of ways, dependent on their objectives and culture. The structure of the company often dictates the way it operates and performs (Waterman et al., 1980). Traditionally, the businesses have been structured in a hierarchical way with several divisions and departments, each responsible for a specific task such as human resources management, production or marketing. Many layers of management controlled the operations, with each answerable to the upper layer of management. Although this is still the most widely used organisational structure, the recent trend is increasingly towards a flat structure where the work is done in teams of specialists rather than fixed departments. The idea is to make the organisation more flexible and devolve the power by empowering the employees and eliminate the middle management layers (Boyle, 2007).

Systems: Every organisation has some systems or internal processes to support

and implement the strategy and run day-to-day affairs. For example, a company may follow a particular process for recruitment. These processes are normally strictly followed and are designed to achieve maximum effectiveness. Traditionally the organisations have been following a bureaucratic-style process model where most decisions are taken at the higher management level and there are various and sometimes unnecessary requirements for a specific decision (e.g. procurement of daily use goods) to be taken. Increasingly, the organisations are simplifying and modernising their process by innovation and use of new technology to make the decision-making process quicker. Special emphasis is on the customers with the intention to make the processes that involve customers as user friendly as possible (Lynch, 2005).


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Style/Culture: All organisations have their own distinct culture and management

style. It includes the dominant values, beliefs and norms which develop over time and become relatively enduring features of the organisational life. It also entails the way managers interact with the employees and the way they spend their time. The businesses have traditionally been influenced by the military style of management and culture where strict adherence to the upper management and procedures was expected from the lowerrank employees. However, there have been extensive efforts in the past couple of decades to change to culture to a more open, innovative and friendly environment with fewer hierarchies and smaller chain of command. Culture remains an important consideration in the implementation of any strategy in the organisation (Martins and Terblanche, 2003).

Staff: Organisations are made up of humans and it's the people who make the real

difference to the success of the organisation in the increasingly knowledge-based society. The importance of human resources has thus got the central position in the strategy of the organisation, away from the traditional model of capital and land. All leading organisations such as IBM, Microsoft, Cisco, etc put extraordinary emphasis on hiring the best staff, providing them with rigorous training and mentoring support, and pushing their staff to limits in achieving professional excellence, and this forms the basis of these organisations' strategy and competitive advantage over their competitors. It is also important for the organisation to instil confidence among the employees about their future in the organisation and future career growth as an incentive for hard work (Purcell and Boxal, 2003).

Shared Values/Superordinate Goals: All members of the organisation share

some common fundamental ideas or guiding concepts around which the business is built. This may be to make money or to achieve excellence in a particular field. These values and common goals keep the employees working towards a common destination as a SJBIT Page 25

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coherent team and are important to keep the team spirit alive. The organisations with weak values and common goals often find their employees following their own personal goals that may be different or even in conflict with those of the organisation or their fellow colleagues (Martins and Terblanche, 2003).

Using the 7S Model to Analyse an Organisation

A detailed case study or comprehensive material on the organisation under study is required to analyse it using the 7S model. This is because the model covers almost all aspects of the business and all major parts of the organisation. It is therefore highly important to gather as much information about the organisation as possible from all available sources such as organisational reports, news and press releases although primary research, e.g. using interviews along with literature review is more suited. The researcher also needs to consider a variety of facts about the 7S model. Some of these are detailed in the paragraphs to follow.



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Wide range of products and services like Bpos softwares, Infrestructure Management which cater into both large and medium size companies. Global Coverage in countries like U.S, Europe, Japan etc Strong employees base of up to 50000Pax. Support sales activities by understanding the customer business better. Keep up to date on what competition is doing. Its revenue has increased from 60.7bn in 2007 from 114bnin2009 which shows its increasing trend.

WEAKNESS: One of the key weakness of HCL is that it has lost projects incontinuation like recently BFSI cuts projects. HCL has always a weakness in TIER1 sectors. Total asset turnover is one of the weakness of HCL as they hasalways failed to materialize its assets in right direction. Lack of innovation and distribution network especially in caseof laptops has reflected HCLs weakness.

OPPORTUNITIES: Acquisitions:-HCL has already done 3 major acquisitions like Liberty. This enables them to expand and create opportunity for them to wide there spectrum. Key opportunities lies in the countries like Eastern Europe and APAC(Asia-Pacific Region). Mid Market segment is the opportunity area as againstfortune200 companies.


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Opportunity of doing better on return on equity from 21.42% by beating satyam(26.08%) Increasing its market share from 9.8% vs 19.7%(HP) THREATS: One of key threat for HCL and the industry as a whole is the ban of outsourcing from India due to new regulations from U.S Dip in quarterly Sales by 5% can lead to loss of market shareand product depreciation. Small Players and manufactures are trying to enter into thesegment where they can provide much cheaper products than HCL which will be rising competition for HCL to stand.



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Jun '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 44.58 44.58 0.00 0.00 1,902.46 0.00 1,947.04 110.43 467.11 577.54 2,524.58 Jun '11 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) SJBIT 364.05 131.99 232.06 19.95 705.05 586.25 2,084.26 230.50 2,901.01 714.99 4.19 3,620.19 0.00 1,949.25 103.42 2,052.67 1,567.52 0.00 2,524.58 338.98 87.36

Jun '10 12 mths 43.65 43.65 17.67 0.00 1,860.94 0.00 1,922.26 152.02 357.91 509.93 2,432.19 Jun '10 12 mths 274.88 103.66 171.22 25.69 911.19 835.40 1,956.92 289.86 3,082.18 555.31 2.75 3,640.24 0.00 2,182.10 134.05 2,316.15 1,324.09 0.00 2,432.19 113.65 87.26

Jun '09 12 mths 34.24 34.24 0.00 0.00 1,098.12 0.00 1,132.36 101.85 125.00 226.85 1,359.21 Jun '09 12 mths 234.10 83.47 150.63 9.50 276.10 888.26 1,498.26 198.67 2,585.19 315.17 4.32 2,904.68 0.00 1,899.81 81.89 1,981.70 922.98 0.00 1,359.21 57.18 66.14

Jun '08 12 mths

Jun '07 12 mths

34.23 33.83 34.23 33.83 0.00 0.00 0.00 0.00 968.83 808.46 3.20 2.92 1,006.26 845.21 0.00 12.02 352.66 223.87 352.66 235.89 1,358.92 1,081.10 Jun '08 Jun '07 12 mths 216.68 78.11 138.57 13.89 215.02 898.37 1,241.46 316.91 2,456.74 244.48 0.45 2,701.67 0.00 1,639.38 70.85 1,710.23 991.44 0.00 1,358.92 12 mths 162.31 63.83 98.48 21.36 279.78 791.73 1,002.51 179.34 1,973.58 170.28 14.60 2,158.46 0.00 1,395.88 81.10 1,476.98 681.48 0.00 1,081.10

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Project training created a sensory impression in my mind putting across what actually is an organization and how it operates to serve the public along with the fulfillment of their objectives. This sensory impression guide in production units theoretical concepts. The Management concepts were difficult to analyze. But, after this project I felt empowered with confidence and understood different management concepts in pragmatic manner. I came to know the importance of different management functions such as planning, organizing, staffing, directing and controlling which guide the organization in facing stiff competition from competitors. I got to know how centralized structure is doing through others and with others work and things. I learnt the importance of leadership traits which guide in achieving personal as well as organization goals. I came to know how individual should be dynamic in corporate sector which guides in career planning and development. I also learned that how quality control and assurance guide the entire organization in providing quality brands to customer, thereby improving loyalty from customer side. At last, I felt that in project training has shaped my personal skill, talent, ability, attitude etc. that guide me in contributing to organization as well as nation by working efficiently and effectively. SJBIT Page 30

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CHAPTER-7 GENERAL INTRODUCTION Theoretical Background of the study. Introduction to marketing

Marketing is the performance of business activities that direct the flow of goods and services from the producer to customer. - American Marketing Association Many organizations have involved in marketing activities to satisfy the needs and wants of a group of customers. Now a days marketing is not considered as a mere physical process or set of activities connected with the exchange of goods. It is regarded as a philosophy of business. It is concerned with creation of customers. It includes all those activities connected with identifying the need of the consumable and then, organizing the according to meet the needs of the consumers.

Importance of marketing management: Marketing management is the most important function in the business organization. It looks after the marketing system of the firm It plans the develops the product on the basis of know demand.


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It has to prepare appropriate marketing plans or marketing mix to achieve the business goals.

Function of marketing management

The function of marketing management are summarized as follows: Determination of marketing goals Formulation marketing plans, procedures, policies etc Designing marketing strategies and marketing mix Planning marketing programmers

Marketing is a comprehensive term and it includes all resource and a set of activities necessary to direct and facilities the flow of goods and services from producer to consumer in the process of distribution. Business man regards marketing as a management function to plan, promote and deliver products to the clients or customers. Human efforts finance and management constitute the primary resources in marketing. Main view points management is as follows: Analyzing, planning, implantation and Control programs. Mutual and personal gain Achieving effective response.

Modern marketing concept:

The marketing concepts evolved over a century starting from on set of industrial revolution, production concept and selling concept, social marketing concept right up to date.


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The term consumer refers to a person who buys goods or services for his personal or household use and not resale. Consumer behavior is the process whereby individual decide, what, when, where, how and whom to purchase goods and services Consumer behavior has been gaining importance since 1960. the growth of consumerism and enactment of consumer legislations emphasizes the importance of consumer behavior study. Today the consumer behavior is the central topic in modern marketing. Since the ultimate aim of marketing is consumer satisfaction and profit earning.

In olden days marketing was seller oriented and there was seller market. The consumer had to purchase whatever was offered to him. They had no choice. So the study of consumer behavior was not important to marketers. Now things have changed modern marketing has become consumer oriented and there is a buyer market. If the choices, performance, tastes and attitudes of the consumer are neglected. No marketing efforts can be successful. Therefore the study of consumer behavior is very much essential success in business.

The study of consumer behavior is important for the following purposes:

Production policies Price policies Distribution policies Sales promotion policies exploiting marketing opportunities


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Plan for customer service:
Understand customer expectations Establish customer priority Define service goals Get external commitment from top to bottom Establish service infrastructure Develop employee through training and compensations Measure customer satisfaction Set customer expectation

Search for complainers.

Factors influencing consumer behavior:

Consumers do not make purchase decision simply. Their buying behavior is influenced by culture, social, personal, and psychological determinants or factors. All these factors are controllable and beyond the hands of a marketer. They are considered in understanding buyer behavior.

Determinants of consumer behavior:


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Cultural factors Religion, caste, beliefs

Social factors Social classes Personal factors Age, gender, income, education, occupation Psychological factors Personality, learning, perception, attitude

The satisfaction of the customer can be easily canalized studying the behavior of the customers. Customer Behavior can be said to be the study of how individuals make decision on how spend their available resources (time, money and effort) on the various consumption related items. This simple definition of customer behavior tells marketers to resolve every activity around the ultimate customer and gauge their behavior.

The behavior of the customer helps the marketing to study, what factors influence the decision making process of the customers. The decision making process identifies the number of people who are involved in this process and ascribe a role of them.

All the firms have started considering COSTUMER AS THE KING or QUEEN. The market place is flooded with many new players including the host of MNCs resulting is available of more number of brands in every segment of the market. On account of this customer stated being choosy about what to buy. SJBIT Page 35

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Title of the study:
A study on market penetration with special reference to HCL.

Statement of the Problem:

The topic selected for the study is to know the market Penetration of DigiSchool conducted by HCL. And also in order to obtain response from the users to identify the impact created by the marketer in Digischool. Now these days HCL has introduced many new products, therefore HCL being a good It sector trying to know the response of the Customers towards its products

Objectives of the Study.

The Study covers the following FACTS: To study the market penetration of HCL Products In order to identify and improve the marketing activities for digischool conducting in HCL To identify the techniques used to improve the products in the market To tap the unexploded market

Design Of The Study:

a) Type of Research: The type of research used here is EXPLORATORY RESEARCH b)Method of Research: SJBIT Page 36

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The collection of primary data through the use of Questionnaire and secondary data through the use of discussions, interactions with the concerned persons who are trying to promote the HCL Digischool. c)Sampling used: Simple Random Technique d)Sample size: 100 school e) Tools used: For conducting a survey study structured Questionnaire is used, which consists of questions with well designed manner. A few questions have possible answers and some other quest ions have option in order to express their view. In addition to this interviews have also been adopted for data collection from the concerned person in the company. f)Collection of data: Survey has been done in data collections from respondents. Data collection also been made from the marketing department with regards to advertising, publicity, sales promotion, company profile has been collected from booklet given by the company. g)Method of analysis: From the above data we can analysis by the use of graphs for each question. The analysis also include that the respondents feedback have been included in findings chapter7. The analysis also included that the company must improve by creating interesting advertisement in TVs, Newspaper, magazines etc..

Scope of study:
The study covers that the company is going to improve the present products. The

marketing department has a challenging task to attract the customers towards their SJBIT Page 37

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products. The scope of the study also includes that further improvements as expressed by the consumer through the survey.

Limitation of the Study:

1) Survey covers feedback from users and non users of Digiclass. 2) The study is done on survey method and suffers from this method. 3) The non users although they know the product but still they are not buying the products because of Management problems. 4) Time is the major constraint 5) Some respondents did not co-operate. Because of these limitations, it may not be possible to draw any major conclusions. However the conclusion that is drawn in this study can be considered as indicative or suggestive in nature.

Basic Assumptions:
Through the survey the assumptions made include that the respondents have given frank opinion to various questions. That means they are well aware of the products and also their feedback are accurate. The company must give importance to the suggestions made by the customers and will implement them to enlarge their marketing activity.

Market Potential:
A market potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of a goods and service during a stated per. This study finds that the HCL has many sales opportunities present in market to expand its business and increase its sale of Digi Class products so that it can make more profits. It can be concluded that HCL is one such a brand, which has used by several SJBIT Page 38

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schools. It has the Perfect competitive market in Digi School & can be utilized fully by HCL. The key success factor of HCL in becoming one of the leading Digi school providers is the Narrow price spread maintained between purchase & sales, marketing higher volumes of Digi school products. The volume of sales plays a critical role in determining costs. Although HCL sets high standards for its products and customer serve, its prior reliance on manual operations made it impossible to keep with surging demand. In designing Digi school products HCL looked towards an automated system that would allow it to achieve consistent quality parameters for each product. Energy and manpower would also be more effectively optimized and controlled and all plant equipment would be integrated. In addition, employees would be trained in how to use the new automated systems and valuable management information would be collected at the main server and used for marketing and evaluations.



Response factor YES NO No. Of Respondent 41 59 100 No .of Respondent in Percentage(%) 41% 59% 100


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From the above graph we can conclude that most of the students in school are not interactive in class room. As the above graph shows 59% of non interactiveness.


Response factor YES NO No. Of Respondent 94 6 100 No .of Respondent in Percentage(%) 94% 6% 100



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The above graph shows the number of parents showing positive consciousness i.e. 94%


Factors Chalk& talk power point SJBIT No. Of Respondent 62 9 No. of Respondent in Percentage(%) 62% 9% Page 41

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smart board others

24 5 100

24% 5% 100%


the above graph shows the different teaching methods adopted for teaching. 62% of school use chalk and talk method for teaching. 9% of school use power point method for teaching. 24% of school use smart board method for teaching. 5% of school use other method for teaching.

Response factor YES NO SJBIT No. Of Respondent 28 72 No. of Respondent in Percentage(%) 28% 72% Page 42

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The above graph shows that 72% of teachers do not have the ability to deliver better with traditional methods of teaching.


Response factor YES NO No. Of Respondent 82 18 100 No.of Respondent in Percentage(%) 82% 18% 100 Page 43


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The above graph shows 82% of school needs to change the way of teaching in class room. For the better interactive class

Response factor YES NO No. Of Respondent 23 77 100 No.of Respondent in Percentage(%) 23% 77% 100%


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The above graph shows 77% of student do not have the competent and potential without any technology adoption in class.

Factors chalk & talk lecturing SJBIT No. Of Respondent 1 7 No. of Respondent in Percentage(%) 1% 7% Page 45

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experiments smart technology

5 87 100

5% 87% 100%


the above graph shows that 87% of school have a positive perception towards smart technology to make there students creative and interest in class room


Response factor YES NO No. Of Respondent 95 5 100 No .of Respondent in Percentage(%) 95% 5% 100% Page 46


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the above shows that 95% of school are aware of smart technologies in teaching.


Response factor YES NO SJBIT No. Of Respondent 92 8 No. of Respondent in Percentage(%) 92% 8% Page 47

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The above graph shows that 92% of school have a positive perception that this technology can help them gain competitive over other schools


Response factor YES NO No. Of Respondent 80 20 100 No. of Respondent in Percentage(%) 80% 20% 100% Page 48


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The above graph shows 80% of positive response that the product will help them to develop over all development of students. As it provides a practical knowledge about the subject and it has a various examples which helps the students understanding better.


Response factor YES NO No. Of Respondent 81 19 100 No. of Respondent in Percentage(%) 81% 19% 100



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The above graph shows 81% of school have a positive response towards DIGI SCHOOL that this product is more competent than other competitors product.


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Response factor YES NO No. Of Respondent 54 46 100 No. of Respondent in Percentage(%) 54% 46% 100


The above graph shows that 54% of school has been offered by competitors for there products.


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Factor 1000-2000 2000-3000 3000-4000 Above 4000 No. Of Respondent 3 15 29 6 53 No. of Respondent in Percentage(%) 6% 28% 55% 11% 100%


The above graph show the different price offered by the competitors for there product. 6% of school has been offered price ranging from 1000-2000 28% of school has been offered price ranging from 2000-3000 55% % of school has been offered price ranging from 3000-4000 11%% of school has been offered price ranging from 4000 and above.


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