Tata Docomo Essay Example for Free

Tata Docomo Essay EXECUTIVE SUMMARY TATA DOCOMO is Tata Teleservices Limiteds TTSL telecom service on the GSMplatform arising out of the Tata Groups strategic alliance with Japanese telecom majorNTT DOCOMO in November 2008. Tata Teleservices has received a pan-India licenseto operate GSM telecom services, under the brand TATA DOCOMO and has also beenallotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles.India is the fastest growing major mobile market in the world.Building on leadingposition in the market,TTSL. Aims to capitalize on the growth potential to significantlyincrease the subscriber base and market share. The telecom sector is increasing dayby day and the competition is getting more and tougher. Initially Tataservice was providing CDMA and after tieup with DOCOMO they come up in . OBJECTIVES OF THE PROJECT The objectives of this study/project as follows: * To identify the strategies Tata Docomo is following to grab the Indian market. * To study the schemes and services provided by TataDocomo. * To study thevarious tariffs charged by TataDocomo. * To study the unique features and services offered by TataDocomo. * To perform a SWOT analysis of TATADocomo. * To know the impact of promotional activities on the purchasing behavior of the buyer. * To study the Customer satisfaction level regarding the services provided by TataDocomo. INTRODUCTION TATADOCOMO is Tata Teleservices Limiteds TTSL telecom service on the GSM platform arising out of the Tata Groups strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan-India license to operate GSM telecom services, under the brand TATADOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles. The launch of the TATADOCOMO brand marks a significant milestone Indian telecom landscape, as it stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the worlds leading mobile operators-in the Japanese market, the company is clearly the preferred mobile phone service provider with a50 percent market share. NTT DOCOMO has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services. Over the years, technologists at DOCOMO have defined industry benchmarks like 3G technologies, as also products and services like the i-mode TM, mobile payment and a plethora of lifestyle-enhancing applications. Today, while most of the rest of the industry is only beginning to talk of LTE technology and its possible applications, DOCOMO has already started conducting LTE trials in physical geographies, not just inside laboratories! DOCOMO is also a global leader in the VAS (Value Added Services) space, both in terms of services and handset designs, particularly integrating services at the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as these being introduced in the Indian market under the TATADOCOMO brand. TATADOCOMO has also set up a Business and Technology Cooperation Committee, comprising of senior personnel from both companies. The committee is responsible for identification of the key areas where the two companies will work together. DOCOMO, the world’s leading mobile operator will work closely with Tata Teleservices Limited management and provide know- how on helping the company develop its GSM business. Despite being a late entrant, TataIndicom, TTSLs CDMA brand, has already established its presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in India. Today Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Ltd, serves over 37 million customers in more than 320,000 towns and villages across the country offering a wide range of telephony services including Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire line Services. HISTORY Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated products and services under the TATADOCOMO brand name. TATADOCOMOarises out of the Tata Group’s strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. TATADOCOMO has received a pan-India license to  operate GSM telecom services and has also been allotted spectrum in 18 telecom Circles. The company has rolled out GSM services in 14 of India’s 22 telecom Circles in a quick span of under six months. The company plans to launch pan-India operations by the end of FY 2009-10.TATADOCOMO marks a significant milestone in the Indian telecom landscape, and has already redefined the very face of telecoms in India, being the first to pioneer the per- second tariff option-part of its ‘Pay for What You Use’ pricing paradigm. Tokyo-based NTT DOCOMO is one of the world’s leading mobile operators-in the Japanese market, the company is the clear market leader, used by over 50% of the country’s mobile phone users. Corporate Philosophy With the aim of creating a new world of communications culture, we NTT DOCOMO will devote all the skills, know-how and energy towards the establishment of more personal communication with our customers that contribute to their heartfelt satisfaction. A New World of Communications Culture More personal communication * Reliable access * Real time access * E-communicationOne-to-one â€Å"personal * This gives birth to a new world of communications culture * Freedom to enjoy communications anytime, anywhere with anyone * Opening of endless lifestyle horizons  To achieve this In order to create a world of more innovative and enriched communications, we will improve service quality, aggressively move forward with the development of various services. We will also research and develop a more advanced user-friendly communications interface, and at the same time we will provide these services and technologies to an ever expanding area. Customer Satisfaction: * Communications those are always ready when needed. * Capability to contact whomever, from wherever and whenever the customer desires. * Happiness that comes from heart-to-heart communications. * Bringing customers another step closer to realizing their dreams. * Responding to every customer with consideration, courtesy and thoroughness. * Providing products that give customers easy and convenient access to cutting-edge functionality. To achieve this * First and foremost, we will fulfill expectations of customers by fulfilling our response to their needs through improved service quality, building original networks, enriching functionality and expanding the service area. In addition, by providing an expanding and ever-improving selection of services at inexpensive rates, we will deliver satisfaction to a growing diversity of customers. * Making the most of the talents of each individual in our company. * Respect for the individuality and sense of values that are unique to each person. * Enable internal corporate communication to flow free from vertical and horizontal organizational barriers. * Make the most of the ideas of each individual. * Foster a corporate culture that is not restricted by conventional thinking and systems. * Create a creative office environment that supports the fulfillment of the individual. * Fostering an open corporate culture that welcomes the ideas and views of the individual. * Evaluate personnel based on their merits. * Build a company that overflows with a challenging spirit. To achieve this  By improving our system and programs for the enhancement of human resources and unifying our human resource development, we will empower each individual to exert their skills to the utmost of their capabilities and discover new potential. At the same time, we will strive to create a workplace that motivates individuals through measures such as improvement of the working environment and labor conditions and enhancement of health and welfare benefits. VISION We will leverage our strength in executing complex global scale projects to make leading edge information and communication services affordable by all individual consumers and business in India. We will offer unparalleled value  to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders while enabling millions of India’s knowledge workers to deliver their services globally. STATISTICS * Third largest telecom network in the world. * Error! Hyperlink reference not valid.Largest operator in INDIA is BSNL. * INDIA’S mobile market is the fastest growing market in the world. * World’s leading Japan based Telecom Company. * Over the years technologies of DOCOMO has defined industry bench marks like 3G technology. * It is the global leader in value added services. * TATA telecom Incorporated in 1996. * Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. Deep involvement in the launch of 3G has inspired us to create an infrastructure that will allow people and all kinds of objects to communicate a wealth of information. Extended systems will link the home, the office and any number of other locations to bring greater convenience to all aspects of everyday life. For the future, it is our aim to incorporate information gathered by all five senses to achieve an array of services far beyond anything envisaged to date. * NTT DOCOMO is already making rapid progress in such areas through a wide range of innovative research, building expertise and techniques as we move forward towards exciting new business opportunities. * Innovating dreams * Our goal is to create a broad array of exciting new services. Services that will bring undreamed-of convenience to people everywhere. * In addition to Audio Barcodes and 3D Display System introduced in this website, cutting edge technologies beyond the imagination are already under development. These include a system that makes distant objects feel like an extension of the human body for ultra realistic experiences, and advanced chips that will allow items such as household appliances to communicate. Whats more, we are actively realizing 4G technology such as MIMO (Multiple-Input-Multiple-Output) multiplexing technology and a wireless access communications system, as well as contributing to the establishment  of specifications for global standardization. * Researchers at NTT DOCOMO have a clear vision of the future. A future that will unite all of the above advances and many more, to create a world where people can communicate at a higher level, regardless of time and space * Telecom industry in India is dominated by major companies like Airtel, Vodafone in GSM services. * Competition is very intense due to low differentiation. * India ended March this year with 391.76 million mobile lines and teledensity is around 36.98. * Airtel enjoys 33.9%, Idea 11.6% Vodafone 19.6 and Tata CDMA has 7.2% of market share respectively. * PRICE * It having attractive tariff plan:TATADOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid. Disruptive Innovation in the Indian Telecom Industry by TataDocomo Wikipedia defines disruptive innovation as an innovation that improves a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers. Indian Telecom space was â€Å"Disrupted† by TataDocomo when they came out with a ‘1 paisa per second’ tariff. We have earlier seen how Reliance India Mobile changed the mobile industry by coming up with the lowest tariff in the beginning of this decade. The call charges were around Rs 2-3 per minute and because of Reliance this was brought down to around Re 1 per minute. TataDocomo was the next one to employ disruptive innovation in the Indian mobile industry. Currently the game is not played on the price front but Value added services front, which is evident from the advertisements of Airtel (Madhavan and VidyaBalan) and Vodafone (Zoozoos) in the past. If Aircel is redefining how telecom operators approach value added services and GPRS in India, TataDocomo is doing its bit to change billing practices. The joint venture between Tata Teleservices and Japanese telecom major NTT Docomo officially began rollouts with a plan to invest $2 billion for its pan-India GSM services. Customer Satisfaction The 21 century belongs to the service sector. The customer of yesteryear was a silent person who uncomplainingly purchased the goods from the market place. There is a new customer emerging today. Customer satisfaction can be  defined as, customer satisfaction is the feeling derived by the consumer when he compares the actual performance of the product’s with the performance that he expects of it. The measurement of the customer satisfaction typically begging when a company realizes that their customer s is the people, who provide the revenues that, hopeful, will cover expenses. Most companies start by establishing a customer satisfaction baseline. Then they target year by year improvement. Understanding customer requirement and delivering superior quality goods and services to achieve composer satisfaction lead to the retention and growth of the customer. General Idea about the satisfied customer: Satisfaction is a persona’s feeling of the pleasure or disappointment. It is resulting from comparing a product’s perceived performance with his or her expectations from it. Satisfaction is more of an emotional concept. Today organization are aiming at high satisfaction rather than at customer delight because customers who are just satisfied still find it easy to switch over when a batter offers comes along. Those who are highly satisfied are much less ready to switch over. High satisfaction or delight creates an emotional bound with the brand and customer starts looking at an offering emotionally and just rationally. The aim of marketing is to meet and satisfy target customers needs and wants but knowing customer is never simple. Customer may state their needs and wants but act otherwise. They may not be in touch with their deeper motivations. They may respond to influential to change their mind at the last minute. Some of today’s most successful companies are raising expectation and delivering performances to match. These companies are aiming at TCS- Total customer Satisfaction. Increasing competition (whether for-profit or nonprofit) is forcing businesses to pay much more attention to satisfying customers. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Customer Loyalty: * These four factors will greatly affect your ability to build a loyal customer base: * Products that are highly differentiated from those of the competition. * Higher end products where price is not the primary buying factor. * Products with a high service component. * Multiple products for the same customer. * Loyal Customers and Loyal Workforces Building customer loyalty will be a lot easier if you have a loyal workforce not at all a given these days. It is especially important to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people. The increasing trend today is to send customer service and technical support calls into queue for the next available person. This builds no personal loyalty and probably less loyalty for the firm. Before going this route, be sure this is what your customers prefer. Instant Feedback: Recently, many organizations have implemented feedback loops that allow them to capture feedback at the point of experience. For example, National Express, one of the UKs leading travel companies invites passengers to send text messages whilst riding the bus. This has been shown to be useful as it allows companies to improve their customer service before the customer defects, thus making it far more likely that the customer will return next time. Listen to your customers: Is there anything more exasperating than telling someone what you want or what your problem is and then discovering that that person hasn’t been paying attention and needs to have it explained again? From a customer’s point of view, I doubt it. Can the sales pitches and the product babble. Let the customer talk and show them that you are listening by making the appropriate responses, such as suggesting how to solve the problem. MARKETING STRATEGY TataDocomo appears to be banking heavily on its tariff plans the company is offering a 1 second pulse instead of the usual 1 minute pulse that other telecom operators are offering. This means that consumers are charged on a per second basis, instead of a per minute basis, and end up saving money on unused seconds. A nifty little application â€Å"How much can you really save† on  Docomo’s website explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and Rs. 0.49/min charges that usually applies. MARKETING MIX 4P’S OF MARKETING MIX: * Product * Price * Place * Promotion. PRODUCT: TATADOCOMO having good range of services.TataDocomo provides both postpaid and prepaid services. TataDocomo having good quality network which provides clarity in voice. PRICE:It having attractive tariff plan: TATADOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid. PLACE:It is having good range of channels of distribution: As Tata already exist in this field of telecommunications as TataIndicom. It has wide range of channels of distribution to sell TATADOCOMO services. PROMOTION:Advertising: TATADOCOMO following different style of advertising pattern in TV ‘and newspapers. Due to that reason it was reaching public very fast. TATADOCOMO PRICING STRATEGY TataDocomo appears to be banking heavily on its tariff plans the company offers a 1 second pulse instead of the usual 1 minute pulse that other telecom operators were offering. This means that consumers are charged on a per second basis, instead of a per minute basis, and end up saving money on unused seconds. A fifty little application â€Å"How much can you really save† on Docomo’s website explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and Rs. 0.49/min charges that usually apply. Now while this plan might sound unique, it isn’t that it hasn’t been tried before back in 2004, TataIndicom had launched 1 second pulse plans, which going by their current plans, appears to have been shelved. At present, TataDocomo has launched voice portals, 24-hour music, cricket commentary and voice chat, apart from offering free Missed Call Alerts and VoiceMail. Interestingly, voice based services are also being priced with a per-second-pulse: 24 hour music and voice chat are priced at Rs. 0.02/second. Caller Tune search service ‘Genie’ is also being priced at Rs. 0.02/second. This is a marked change, again, from the per minute pricing, and can offer consumers cheaper options. Mobile pricing innovation – TataDocomo now charges per website for Mobile Browsing! This is surely a first world over – TataDocomo have gone ahead and launched an innovative mobile Internet offering which allows users unlimited usage of their favorite websites on mobile for a fixed cost. TataDocomo has been forefront in coming up with various attractive pricing schemes, especially, in the pay-per-use paradigm. They were first to introduce pay per second billing on calls, which now is followed by every mobile service provider. They followed it with pay-per-minute and pay-per-call pricing plans as well which has made them one of the fastest growing Mobile companies in India. The new pay-per-website offering however, takes it to a complete different level and unheard of pricing strategy. This is a very thoughtful strategy and something which has potential to growth rapidly. TataDocomo pricing strategy. Pay per site offer two combination: * Those only interested in single websites need to pay Rs 10 per site * Those with multiple site browsing needs can opt for a combo pack at just Rs 25 per month. Customers have a bundle of options within various categories of social networking sites (Facebook, Twitter, and Linked In, Orkut), mail options (Gmail, Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz). Having said this, there is also a caveat – If you thought it was valid for unlimited use†¦it is not. TataDocomo pay per site plan categorizes each service under 2 different genres – Social Networking Site and Emailing Instant Messaging. Each site under this genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30 days, post which customers will be charged at 1p/kb. There are also 2 Combo options SNS Combo Pack and Emailing Combo Pack and each Combo Pack is priced at Rs. 25/- bundled with 500 MB free data usage post which the customers will be charged 1p/kb. We have b een quite impressed the way TataDocomo have gone about their innovative pricing models as well as marketing strategies. â€Å"Per Character† SMS Pricing On 8th September 2009, the GSM branch of the Indian carrier Tata introduced a novel pricing strategy for text messaging. Under the brand â€Å"Diet-SMSâ€Å", Tata-DOCOMO bills its customers â€Å"by-the-character†, rather than on a per message basis. It is a very attractive marketing scheme, since many wireless subscribers, almost by habit, tend to pepper their text messages with abbreviations and acronyms. Under the new plan, Tata-Docomo charges â€Å"one paisa per character†. For example, a text which reads â€Å"tnx† (for â€Å"thank-you†) is charged at 3paise instead of the normal sms charge. The Impact TataDocomo has gathered significant market share, owing to its pricing strategies. Existing mobile operators are matching the price and the clear winners are the subscribers since all the competition is sending the prices downhill. ADVERTISING MEDIA CHANNELS India TataDocomo, the youngest among telecom players in India to offer GSM, is Presently banking on its services to garner visibility and a share in the telecom pie. The launch of TataDocomo also announced the intention of the brand to associate with the thought do. TataDocomo, for the first time in the country, offered pay-per-second billing; though other telecom providers have followed suit since. The company has carried out a few adverts that highlight the brands unique features and some other topical advertising during Ganesh Chaturthi and Diwali. The latest from the GSM provider is the Friendship Express TVC. The ad opens inside train, where everyone is doing their own thing. A couple of the travelers dont like the solemn mood and start humming the Docomo tune. Slowly and steadily, others pitch in and soon most of the train is singing along.   The ad ends with the super, Why walk alone when we can dance together.Cutting through the clutter that the Indian telecom landscape fin ds itself in with customers forced to jostle with confusing and complicated products, services and tariff plans Tata DOCOMO is ‘Doing the New’ again, with the launch of its new brand campaign,  aptly titled ‘Keep It Simple’. Tata DOCOMO’s unique Keep It Simple Campaign is in a form of a stand-up comedy show with many episodes, which will be aired during the course of this IPL season. It focuses largely on how Tata DOCOMO simplifies the telecom experience, and hence the consumer’s life, by providing differentiated products and services. Each individual advertisement starts by illustrating a complexity in the category, and presents the Tata DOCOMO product and/or service as a means of simplifying things. This campaign is simple, captures the various moods of Ranbirdepicting those of Tata DOCOMO Advertisement strategy TataDOCOMO ropes in RanbirKapoor as brand ambassador NEW DELHI: TataDocomo, the GSM brand of Tata Teleservices (TTSL), today appointed Bollywood star RanbirKapoor as its brand ambassador. The company has inked a two-year contract with Kapoor and will roll out various televisions, print and outdoor campaigns with the actor, starting with the upcoming Indian Premier League (IPL) tournament. We think TataDocomo is an inspirational brand and so is the charm and personality of RanbirKapoor, so it is a great match. We will leverage him in various campaigns to build the brand further, TTSL Head Corporate Marketing Gurinder Singh Sandhu told PTI. TataDOCOMO will undertake various marketing initiatives with RanbirKapoor, including television commercials, print campaigns, outdoors and retail front displays, he added. The company will introduce its new campaign during the IPL tournament, which kicks off on April According to media analysts, TataDocomo is expected to spend in excess of Rs 50 crore for the 360-degree campaign during the IPL season. Other telecom operators like BhartiAirtel, Idea Cellular and Reliance Communications have also appointed Bollywood stars as their brand ambassadors. While Airtel has worked with Shahrukh Khan, Saif Ali Khan and KareenaKapoor, Idea Cellular has AbhishekBachchan as its ambassador. Reliance Communications has worked with HrithikRoshan. Vodafone, on the other hand, has found success with its Zoozoos, the egg shaped cartoon characters featured in its ad campaign. Market Competitors of TataDocomo: * Airtel * Reliance Communication * BSNL * Idea * Aircel * Vodafone * SERVICES NETWORK AVAILABLE * Currently, TataDocomo mobile services available in these following circles: * Bihar Jharkhand * Tamil Nadu * Orissa * Andhra Pradesh * Karnataka * Kerala * Kolkata * Maharashtra Goa * Madhya Pradesh * Chhattisgarh * Haryana * Chennai * Eastern Uttar Pradesh * Western Uttar Pradesh * Punjab * Rajasthan ,Recently LaunchedAandRest of West Bengal, Recently Launched. PLANS Tata DOCOMO Daily Plans. When every day is different, why have a fixed plan? A brand new day calls for a brand new plan. Choose from Daily plans on local, STD, Night calling, GPRS Music and make your own Daily Plan. Benefits: * Anytime purchase * Minimal cost * Ease of process How to subscribe: Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS Music. Product options:- Daily Rental Packs (Rs.2) * All local at 1p/2sec * STD at 3p/4sec * Local Night On-net at 1p/10sec * Local On-net at 1p/6sec * USA/Canada UK(F) at 3p/sec * Gulf at 11p/sec * All local National SMS at 1p | Weekly Rental Packs (Rs.10) * All local at 1p/2sec * STD at 3p/4sec * Local Night On-net at 1p/10sec * Local On-net at 1p/6sec * USA/Canada UK(F) at 3p/sec * Gulf at 11p/sec * All local National SMS at 1p | Talk More * 30 local minutes @ Rs.5 onTata DOCOMO Network. * 30 local minutes @ Rs.12 across Networks. * 30 local/National minutes @ Rs.14 * 10 Local/National minutes @ Rs.5 | Night Talk * Now converse through the night. 60 Free Local Night minutes onTata DOCOMO Network. * 30 Free local On-net minutes @ Rs.3 * 20 Free local minutes @ Rs.5 | | a. GPRS10MB Free Browsing @ Rs.5 only.| World Calling * 10 minutes to USA/Canada @ Rs.20 * 5 minutes to USA/Canada @ Rs.10| a. Entertainment15 minutes FREE music @ Rs.5| a. CricketCricket Alerts @ Rs.5/day| Terms and Conditions: * Daily implies active till 12 midnight on the same day of pack activation. Ex: A subscriber activated the pack on 25th Feb10 then the pack with daily validity will expire at midnight of 25th Feburary10#. * In case on night packs the expiry of the pack will be 7 am of the next day of activation of the pack. Ex: A subscriber activated the night pack on 25th Feb10 then the pack with daily validity will expire at 7 am of 26th Feburary10#. * The pack will get activated maximum within 2 hrs of request receipt on the system. You will get an automated confirmation SMS once the same is configured on our systems. * You can activate multiple packs in a day. Competitor Analysis The competition has intensified the past few months with new players and schemes coming in. There has never been a better time for the customer to get a mobile phone connection There are at least six if not more operators to choose from in ever circle. In June 09, TATA DOCOMO broke the old system of tariff by introducing per second billing system. As soon as they did this, the other followed suit with price cuts everywhere. Suddenly the idea of calls being free was not so outrageous. The prices were reduced to such an extent that the viability of the business was in questions. The competitive environment of TATA DOCOMO can be looked at from the following perspectives Airtel v/s TataDocomo * The equal competitors are coming up with their new tariffs, plans, special packs and their varying services to prove themselves to be much competitive and trying to anchor them firmly in this mobile sector. * Currently the TataDocomo came up with its services with an all new tariff scheme of pay per second which has brought out a massive revolution in the market. * On 30th Oct the leading mobile service provider BhartiAirtel launched their much awaited â€Å"Pay per Second† tariff all throughout India. The tariff comparison with Airtel and TATADocomo is as follows, * Airtel with its inception on 2001 renders number of customers but their tariff, call rates to different network makes confusion and remains unstable. But Docomo’s 1p/sec throughout India makes consumers to keep track of their account and controls expenses. Airtel has kept different SMS charges even in their Pay Per Second plan with local sms being charged at Re.1 and National sms at Rs.1.50, whereas Docomo introduced SMS charges based on the number of characters. No recharges are needed to opt for per second calling after one year. * Package activation of Airtel ranges from Rs.64 to Rs.99 and varies from circle to circle. Docomo’s does not charge anything extra for activating the per second pack since the tariff plan by default is on per second basis. * The Airtel tariff calculation is hard ranging from 1p/sec to 1.2p/sec , but 20% higher to other operators whereas A2A calls are kept at 1p/sec and that to other operators are charged at 1.2p/sec. But TataDocomo is offering a limited period offer of STD calls at 1p/sec. But Airtel is older than Docomo so it has compact network links than Docomo , so this is the place where Docomo has to establish itself. Meanwhile it is found that Docomo with both GSM and CDMA network added over ‘4 million’ subscribers in September, beating market leader BhartiAirtel yet again. Airtel had 2.5 million new users in September. SWOT ANALYSIS * STRENGTH * WEAKNESS * OPPORTUNITIES * THREATS STRENGTHS: * First to introduce seconds’ tariff plan (seconds pulse) * Good brand image of Tata services * Having large variety of plans * Plans are affordable by any common person. WEAKNESS: * Signal strength. * Postpaid connections are not available as of now. * Customer services are not satisfactory. * Concentrating only on rural areas. OPPORTUNITIES: * Have a great opportunity to expand its services. * To introduce any new plans for internet users. * Introduce 3G compatible services. * To introduce new combined plans like, SMS, Internet, Calling integrated offers. THREATS: * If signal strength is not increased it may lead to change in the network service by the customers. * Tata has to clarify whether this 1ps/sec will continue till its lifecycle. * Heavy competition from all other network providers. INTERNAL ENVIRONMENTAL ANALYSIS OF TATA DOCOMO Brand Image of Tata and Docomo This is another important factor which proves as a major strong point for Tata Docomo. Tata DOCOMO is Tata Teleservices Limiteds (TTSL) telecom service on the GSM platform-arising out of the Tata Groups strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Both of these are Big brand names in their respective countries; viz. Tata in India and NTT Docomo in Japan. Tokyo-based NTT DOCOMO is one of the worlds leading mobile operators-in the Japanese market, the company is clearly the preferred mobile phone service provider in Japan with a 50 per cent market share. Variety of plans on offer Tata Docomo focuses not only on the price but also makes sure that the variety of services offered is not compromised. There are a number of tariff plans for post pay customers as well as for prepay customers. WEAKNESSES OF TATA DOCOMO One major weakness of this organization would be the lack of adequate infrastructure to service the subscribers that it may initially achieve owing to the low prices. The key issue would be network coverage, where the customers would prefer that a call go through, or not be disconnected, than save Rs. 0.5-Re.1 on a call. At the same time, since operators have so far been focused on the â€Å"land-grab† MORALE OF EMPLOYEES IN AN ORGANISATION Good Morale Morale is a way of describing how people feel about their jobs, employers and companies, and those feelings are tied to the behaviors and attitudes that employees exhibit in the workplace. When employees have good morale, they feel committed to their employers, loyal to their jobs and motivated to be productive. They work harder, produce more, meet deadlines and give it their all. Low Morale According to BNET, a website that offers business management advice, low morale takes a toll on employee performance and productivity. Employees become less motivated to work, less committed to their employers, exhibit an attitude of indifference and are absent more often. Companies pay the consequences of low morale, as less work gets done and time and money are wasted. Such characteristics may not always indicate low morale. Be sure  that you dont misdiagnose employees as having low morale when they may just be having a bad day. Low morale is indicated by a pattern of these behaviors and attitudes over time. MANAGEMENT SYSTEM OF TATA DOCOMO The goal of the Management System and OrganisationOptimisation is to introduce a new organisation and management system at the level of a selected company or a group of companies (holding), as the case may be. The solutions standard subject matter is the conceptual preparation of the clients new organization and the implementation thereof, which is broken down into detailed organisational and functional patterns including job structure and category. Other steps include a preparation of the companys (holding) management rules, setting the basic functions, competencies, powers and responsibilities for individual management levels of a company (holding), and the preparation of a companys (holding) basic internal policies. ORGANISATIONAL CULTURE OF TATA DOCOMO In TATA DOCOMO the organizational culture is the workplace environment formulated from the interaction of the employees in the workplace. Organizational culture is defined by all of the life experiences, strengths, weaknesses, education, upbringing, and so forth of the employees. While executive leaders play a large role in defining organizational culture by their actions and leadership, all employees contribute to the organizational culture. EXTERNAL ENVIRONMENTAL ANALYSIS- Political- †¢ Not favourable in terms of Recent spectrum allocation {2G-scam}. †¢ Political lobbying is prevalent and many companies are taking advantage of it.It has become ubiquotious and creates lots of hassels for the firms. †¢ Due to 2G Scamtherre will be tighter control and auditing system. †¢ Also UPA will bring some new changes as the social pressure is so high{Anna hazaremovemenet}.Some new guidelines are coming up. †¢ TATA may get truly  benefitted by their inherent policy of no form of corruption.TATADocomo should be ready for a patient game so that this political uncertainity gets settled. ECONOMICAL- †¢ Teledensity has improved from under 4% in March 2001 to 53% by the end of March 2010.Cellular telephony has emerged as the fastest moving business segment. †¢ Due to high growth rate,hgherteledensity and sustainable domestic demand cellular telephony will surely reamain in the pink of health in India. †¢ Unexplored rural market.Usage may be low but volume can be high. †¢ Due to immense competition and lowest call rates in the world there are wafer thin margins as well. SOCIAL †¢ Youth population is increasing,adoption to new technologies has become daily routine,more litracy rate and more purchasing power of Domestic consumers makes this industry more than attractive. †¢ Youth will control the economy within next 10 years and companies need to meet their ever changing and newest deamands. †¢ Plans and tariffs need to be updated according to current demand and social habbits. †¢ Devolopment of new apps and cool value added services are in demand. TECHNOLOGY- †¢ Tata Docomo is enjoying the distinct advantage of the backing up of NTT Docomo which proven innovative technology.It is first in Inidia to roll out 3G services in India resulted a growth of 30%-40% in VAS and also planning to bring in 3G enabled mobile phones at an affordable price. †¢ It should try to capitalize the capabilities of Wimaxtechnologies,a high speed data connection,which is supposed to have 12 million subscribers by 2012. †¢ As 3G technologies has made in roads in India there is a growing emphasis on speed and coverage. ENVIRONMENTAL- †¢ People have growing concern about the kind of damage cellular wave do to the brain and other parts of the body. †¢ TATA Docomo should be the first to acknowledge the concern of the people by innovating ways that that can make the waves less harmfull. LEGAL- †¢ Recently due to alligations and speculations surrounding the 2G Spectrum sale many service providers are in legal doldrums and have to face wrath of CBI and judiciary. †¢ Whereas TATA Docomo has benefitted from his fare policies,it should par its back for this and march on with the progress it has seen with full vigour, Recommendations * The availability of recharge voucher should be made available when required by the customers. As this give the good impression about the company. * The network coverage is another asset for the company’s image, which needs to be preserved in future. * The overall image of the customer care services was found to be good but with some loopholes related to delays in problem solving. * The company should be more prompt in handling the queries and problem of the customer, which is vary essential for the prepaid card so as to retain the customers with the company in future. * The customer care executives should be more efficient in handling the customer and also more friendly and polite their conversation, while dealing with the customer. * After sales service is required to be maintained properly, which is not up to the mark * Call rates is affordable so it should be maintained at this level. * Many people are using mobile, but majority of them are not aware of the technology they are using. Manytines it happens that a person doesn’t know which technology satisfied his need. Hence awareness should be created among them regarding advantages and differences in the technology. * Supplementary facilities like call wait, call forward, call hold, call divert, call conference should be made more effective to attract customers. CONCLUSION After analysis and interpretation of the data it can be concluded that TataDocomo is providing a broad range of various schemes ranging from international calling to hello tunes. This is the critical factor to attract  various customers. Wide range of schemes is also leading to increase in number of customers with rapid pace for TaTA Tariff charges introduced by the TataDocomo are found to be cheaper than other services. TataDocomo has emerged as a giant killer due to their tariff plans and heading towards the position of dominator. TataDocomo is providing some unique features and services like pay per second, SMS per character, pay per site plans that are making them being different from their competitors. Awareness of the TataDocomo is spreading widely among people due to their promotional activities. Buyers are now insisting for cheaper plans or threatening to opt out. Majority of the customers are satisfied with the services of the Tata Docomo and they are not ready to switch on to other service providers.

The Impact Of Budgetary Control On Job Performance In An Organisation Accounting Essay

The Impact Of Budgetary Control On Job Performance In An Organisation Accounting Essay The effectiveness of any budgetary system depends not only on the appropriateness of its technical characteristics to the particular organisation and environmental circumstances to which it is applied, but also on the way in which organisational participants make use of information that it promotes. It is a common place that budgetary system is often ignored, sometimes manipulated and even falsified by those whom it is provided to. Rosen and Sneck (1997) Lowe and Shaw (1968), Mintzerg (1995), and Yetton (1967) indicate that dysfunctional behaviour frequently stems from the fact that the budget information provided by the accounting system does not adequately match the complexity of the underlying organisation and economic events, but it is also evident that distortion of information can occur even when the budgetary system itself is technically adequate. Such distortion is a consequence of the divergence of individual goals from those of the organisation and most commonly manifests i tself in attempts to make budgetary reports reflect more favourably on an individuals contribution to the overall organisational performance. Budgetary control is very important in the management of an organisation because it helps in achieving organisational goals. Once the final budget is agreed to, it becomes a plan against which the actual cost, revenue and performance are periodically reviewed and compared with. Budgetary control is exercised by line management for control over cost through continuous appraisal of actual expenditures, using as a guide the planned costs as expressed in the budget. The principle is also applied to the various types of income and to items that affect the balance sheet, such as receivables inventories, cash, fixed assets, etc. Budgetary control is the preparation of targets or budgets for agreed areas of business. An area may be a functional management area e.g. sales, purchases or production it may be an agreed cost centre area, e.g. machinery assembly, planning which may consist of a machine, group of machines or a group of employees. Budgetary control, as such, controls nothing. Management has a control yardstick and when the actual results are compared with the budget figure management should be prompted into action. The information can assist in controlling operations and improving decision making budgetary control of it will control nothing. Budgetary control systems based upon financial measures are widely used in economic organisations. The principal designs for assigning financial responsibility in an organisation can be classified as follows: standard cost centre, revenue centre, discretionary expenses centre, profits centre and investment centre (Vanal, 1973). The order of this classification is from narrowest to broadest in terms of the decision making discretion permitted or required of the manager. Budgets are financial plans and provide a basis for directing and evaluating the performance of individuals or segments of organisations. Through a budget, activities of different parts of an organisation can be coordinated and controlled. A control system typically incorporates measures and techniques which conform to the responsibilities delegated to managers under the organisations structure. As the decision making authority is decentralised and parts of an organisation become more autonomous, managers will be responsible for more financial variables and financial control systems will be more complex in the sense that they will incorporate more variables. Budgets are potential means of influencing behaviour control is the successful exercise of power to influence behaviour available to an organisation. Two other primary means to influence behaviour are interpersonal contact i.e. leadership, and organisational structure i.e. the distribution of authority and work roles. This study focuses specifically on the relationship between formal properties of organisational structures and budgetary control. This is in contrast to other studies of budgeting which examined the relationship between interpersonal variables and budgetary control (Decoster and Fertakis, 1968, Foran and Decoster, 1974, Hopwood, 1974, Swieringa and Moncur, 1972 and 1975). Budgets in the organisation serve multiple roles of planning, evaluation, coordination, communication, and decision making. Participants in budgeting are another important issue because it reflects the degree of consensus, an important aspect of management style. Budgets require management to specify expected sales, cash inflows and outflows, and costs, and they provide a mechanism for effective planning and control in organisation (Flamholtz, 1983). The budget is a standard against which the actual performance can be compared and measured. Budgets are financial blueprints that qualify an organisations plan for a future period. Therefore, for the resources of the organisation to be effectively utilised, and for the objectives of such organisation to be achieved, the executive need to fully understand the importance of budgetary control. Research Questions What impact has budgetary control on job performance? Do budgetary decisions determine the future destiny of the organisation? In which specific ways does planning and control affect the organisation? What is the type of budgetary control used on the application? Do budgets represent an important part of the organisational motivation system? Rational To identify the planning and control system of the organisation. To examine the existing budgetary control system that affects organisation job performance. To outline the areas of budgetary control that requires further studies and problems encountered in carrying out such controls. To find out causes of workers per attitudes and how moral the budgetary system. To offer relevant recommendation that can help gear job performance in an organisation. Methodology The research design to be used in the collection of data would be primary and secondary source. The primary source would include personal experience, observation while the secondary source is the literature survey through the use of scholarly journals and relevant texts. The methods of data collection would be a self administered questionnaire. Limitations The study would be impeded by some inevitable circumstances like labour, transportation, as well as logistical problems in the process of data collection. Another limitation would be that the sample was therefore not strictly random or to convince the respondents to fill the questionnaire without delay. Definition of terms Budgetary control: it emphasizes the control of plans by comparing actual results to identify variances upon which corrective actions can take place. Budget: is a financial qualitative statement prepared and approved before a defined period of time for the purpose of attaining given objectives. Budget: the budget is a plan or target in qualities and/or money value prepared for a future period of time. Performance: is the assessment of individuals potential for future promotion. Organisation: Schein (1983) defines an organisation as the planned coordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labour and function and through a hierarchy of authority and responsibility. Organisation: Robbins (1990) defines an organisation as a consciously coordinated social entity with a relatively identifiable boundary that functions on a relatively continuous basis to achieve a common goal or set of goals. Significance of study It is the aim of the study to have considerable significance in: exposing the real impact of budgetary control on job performance making significant recommendations to improve the budgetary system of the organisation inducing the leadership of the organisation to set up constructive budgetary programme to alleviate redundancy organisation cannot survive in isolation without individual supporting the effectiveness of the budget. Statement of Hypothesis The researcher formulated three hypotheses for this study. This is to determine whether the result of the research would accept or reject the hypothesis in question. Hypothesis one H0: Budgetary control is not significantly related to total organisational performance H1: Budgetary control is significantly related to total organisational performance. Variables involved are: Budgetary control Total organisational performance Hypothesis two H0: Budgetary control does not significantly and communication among top and lower management. H1: Budgetary control significantly and communication among top and lower management. Variables involved are: Budgetary control Avenue for communication Hypothesis three H0: Budgetary control does not significantly improve proper planning and control of operations in organisations. H1: Budgetary control has significantly improved proper planning and control of operations in organisations. Variables involved are: Budgetary control Improved proper planning and control Scope of study This study pays particular attention to the human aspect of budgeting which is the most complex, dynamic and unpredictable factors in the organisation This study will also learn stakeholders about the use of budgetary control as a means of effective organisational control and to make decisions that will improve the overall job performance of the company. Definition of the problem The coordination of efforts and activities of individuals in an organisation is to achieve the desired aims and objectives of that organisation has long been one of management most important, difficult and controversial problem. Organisations are established to achieve a set of defined goals, when an organisation is set up, the authority which established it also assigned certain budgetary functions. For those functions and objectives to be carried out the organisation has to carry its employees along. The following may pose problems: Which budgetary control system is in place and how effective has this helped the management in making decision? How has budgetary control helped in the application principles of: Planning and control Job performance Will budgetary control furnish a standard to management? for ascertaining the performance of different parts of the organisation? Historical Background of Budgetary Control? and Motivation. Budgetary participants relates to the involvement of managers in the budgetary process and their influence over setting of budgetary targets (Shields and Young 1993) the argument that managers participation in budget setting affects job related outcomes such as performance is premised on two explanations. First, models based on psychological theories suggest that participation is related to performance through identification and ego involvement with the budget goals (Murray 1990). This in turn leads to enhanced motivation and commitment to budget (Vroom, 1964, Brownell and Mclnnes, 1986). Second, from a cognitive perspective, participation is seen to improve the flow of information between superior and subordinates, leading to higher quality decisions (Lock and Schweiger, 1979, Shields and Young, 1993). Similarly, participation may promote better performance through facilitation of learning and knowledge acquisition (Parker and Wall 1998). There is evidence, however, that BP is not a lways beneficial. Previous studies have found that a variety of factors including perceived environment uncertainty (Gul 1991), job difficulty (Mia 1989), organisational structure (Gul, Tsui, Fong and kwok 1995) and budget emphasis in performance evaluation (Brownell 1982) may motivate the relationship between Budget Participation and managerial job related outcomes. For instance, Gul et al. (1995) found budgetary participation to be negatively related to managerial performance in less decentralised, (i.e. more hierarchical) situations. The role organisational culture perceptions, however has attracted only limited research attention. The importance of these perceptions was underlined in a three case analysis undertaken by Flamholtz (1983). Flamholtz (1983:168) concluded that if a firms culture and its core control system are not synchronized, it is not likely that even a well integrated core control system will actually influence behaviour in its intended ways. More specifically, managers in one of Flamholtzs (1983) cases described their organisational culture as being highly rules oriented and tradition bound and therefore felt that budgetary participation was only Pseudo. Therefore, when a zero budget cuts.

Ethics of Pornography and Its Negative Affect on Women Essay -- Pornogr

Women have long been exploited through pornographic material, such as videos, photos and literature, these materials, more-so now, than ever, portray women purely as sexual objects. The evolution of the business? popularity has done nothing but help fuel a false impression, subjugating women in modern day culture and society, yet still, banning pornography in the US would be nearly impossible, due to complex issues dealing with the first amendment and obscenity laws. With instances of discrimination based on sexual orientation, race or sex being in most cases illegal, the practice of pornography should most definitely not be acceptable or perpetuated, especially in a country like the US where this said industry defies everything of which our country is founded upon. This rise [in popularity] looks as if it is related, almost in a hand by hand parallel, with growth of sexual violence against women in America. A real life example of the link between the onset of pornography in American culture and sexual crimes includes a survey done in 1978, in which 44% of the nine hun...

Agricultural :: essays research papers

AGRICULTURE THE WORLD LEADER IN AGRICULTURE IS THE U.S. Since the agricultural transformation began in the United States, the United States only seemed to improve agriculturally. The Western Hemisphere was the first to progress towards this transformation, displaying the United States as a leader in agriculture. As stated by Dan Hillel in The Agricultural Transformation, â€Å"The Agricultural Transformation is very likely the most momentous turn in the progress of humankind†¦The ability to raise crops and livestock, while resulting in a greater and more secure supply of food, definitely required attachment to controllable sections of land, and hence brought about the growth of permanent settlements and of larger coordinated communities.† Thus, this transformation ensured a supply of food and ended the need to roam about for food. This development was an important change in the structure of society, also a step in building a prestigious reputation as being a leader in agriculture. It gave United States a sense of organization and strength which indeed helped in its development. â€Å"Simply put, agriculture means raising things on purpose, and the American Indians were the first farmers in the Western Hemisphere,† said by R. Douglas Hurt in the article Mesoamerican Origins. The American Indians (Mesoamericans) agriculture became more complex. They learned how to grow crops such as tomatoes, beans, and a wide variety of plants. They also learned other techniques such as clearing land and also irrigation. Because of their success, other Mesoamericans began to settle and also adopted their fellow Mesoamerican farming techniques. Agriculture became more and more popular and important that the white settlers also began to farm. Over time, as farming became more popular, the United States thrived on agriculture. It became an important issue especially to Thomas Jefferson. He was a key person in leading the agricultural development of the United States. Thomas Jefferson believed in agrarianism and thought highly of farmers. An agriculture leader should understand why agriculture is important and how to improve and also maintain a good status agriculturally. And Thomas Jefferson held all these qualities. He did what was best for the farmers as well as others in the United States. And by him being a great leader agriculturally, many others in the government kept his ideas in mind. That is what made this country strong, we develop from our past and in effect our country has grown stronger. For example, In 1970- a farmer could provide enough for 2 people In 1935- a farmer could provide enough for 10 people In 1992- a farmer could provide enough for 127 people In 1998- a farmer could provide enough for over 130 people This shows a growth in efficiency. Agricultural :: essays research papers AGRICULTURE THE WORLD LEADER IN AGRICULTURE IS THE U.S. Since the agricultural transformation began in the United States, the United States only seemed to improve agriculturally. The Western Hemisphere was the first to progress towards this transformation, displaying the United States as a leader in agriculture. As stated by Dan Hillel in The Agricultural Transformation, â€Å"The Agricultural Transformation is very likely the most momentous turn in the progress of humankind†¦The ability to raise crops and livestock, while resulting in a greater and more secure supply of food, definitely required attachment to controllable sections of land, and hence brought about the growth of permanent settlements and of larger coordinated communities.† Thus, this transformation ensured a supply of food and ended the need to roam about for food. This development was an important change in the structure of society, also a step in building a prestigious reputation as being a leader in agriculture. It gave United States a sense of organization and strength which indeed helped in its development. â€Å"Simply put, agriculture means raising things on purpose, and the American Indians were the first farmers in the Western Hemisphere,† said by R. Douglas Hurt in the article Mesoamerican Origins. The American Indians (Mesoamericans) agriculture became more complex. They learned how to grow crops such as tomatoes, beans, and a wide variety of plants. They also learned other techniques such as clearing land and also irrigation. Because of their success, other Mesoamericans began to settle and also adopted their fellow Mesoamerican farming techniques. Agriculture became more and more popular and important that the white settlers also began to farm. Over time, as farming became more popular, the United States thrived on agriculture. It became an important issue especially to Thomas Jefferson. He was a key person in leading the agricultural development of the United States. Thomas Jefferson believed in agrarianism and thought highly of farmers. An agriculture leader should understand why agriculture is important and how to improve and also maintain a good status agriculturally. And Thomas Jefferson held all these qualities. He did what was best for the farmers as well as others in the United States. And by him being a great leader agriculturally, many others in the government kept his ideas in mind. That is what made this country strong, we develop from our past and in effect our country has grown stronger. For example, In 1970- a farmer could provide enough for 2 people In 1935- a farmer could provide enough for 10 people In 1992- a farmer could provide enough for 127 people In 1998- a farmer could provide enough for over 130 people This shows a growth in efficiency.

Free Great Gatsby Essays: Social Relationships :: Great Gatsby Essays

Social Relationships in The Great Gatsby    Novelists are often concerned with exploring the confusions and complexities of social relationships. In the context, confusions refer to puzzling relationships, which are confusing to comprehend. Whereas, complexities relate to complicated and intricate issues. The different social relationships discussed in F.Scott Fitzgerald's novel, THE GREAT GASTBY, are business colleagues, lovers and married partners. The characters involved in these relationships consist of, Jay Gatsby, Daisy and Tom Buchanan, Myrtle and George Wilson, Jordan Baker, Mr. Wolshiem and Nick Carraway. Each character interacts with others, establishing either confusions or complexities within their social relationship.    A complex social relationship explored in this novel is between Wolshiem and Gatsby. The two are business colleagues who work together, however the nature of their business is rarely discussed. During lunch between Gatsby, Wolshiem and Nick, Wolshiem mistakes Nick's reason of invitation, which Gatsby quickly states, 'I told you we'd talk about that some other time.' (p69) This suggests to the audience that their business is not above board, as Gatsby does not wish to discuss their business dealing in front of company. Throughout the novel, their business relationship is kept very vague. On the surface it appears to be a normal business relationship, however due to the uncertainty of their dealings, it is established to the audience that there is a complex relationship existing between the two characters. Thus showing how complexities can be explores through the social relationship of business colleagues.    Another example of a social relationship explored in the novel, containing complexities, is between Wolshiem and Gatsby from Wolshiem's point of view. In the final chapter, Wolshiem sends Nick a letter in regards to Gatsby's death. He states that he is, '...tied up in... very important business... cannot get mixed up in this thing now.' (p157)    This reinforces that their relationship was strictly business and there was not a very strong friendship existing between the two characters. It appears that Wolshiem has very little respect for Gatsby, as he doesn't have the courtesy to attend his funeral. It is portrayed that all Gatsby was to Wolshiem was a business colleague, nothing more. Wolshiem doe not want to further their relationship as friends. Within the letter, Wolshiem refers to Gatsby as a 'thing.' This represents Gatsby's death as an inconvenience on Wolshiem's behalf. As Wolshiem was involved in some 'very important business,' this once again reinforces the idea that their business relationship was below board.

Greece Crisis: Analysis, Learnings and Takeaways Essay

Greek Crisis: Background Through this write up, we are trying to explain the circumstances which led to the sovereign debt crisis in Greece. European Union was established in the year 1992 through the Maastricht treaty. The purpose of formation was to create something powerful on the lines of the USA, The United States of Europe. Also, the idea was to establish and maintain peace in the turbulent regions. In the year 1999, Euro zone was formed and a common currency, Euro, came into being. Countries set aside the currencies they each were using previously and instead dealt themselves Euros. Greece undertook the same operation. It relinquished its drachmas and received an equivalent amount of Euros. Henceforth Greek firms and Greek citizens could buy goods and services anywhere in the Euro zone with their Euros. Greece has always been an overspending economy. It’s a leisure driven economy where the government always tends to spend more than its means. This trend went to a new level when the Greek government got access to cheap and easier financing. Due to the introduction of the common currency, they could borrow as easily as a strongly backed Germany. The government previously used to monetise its deficit by printing currency. Since the choice of printing currency was no longer available due to the introduction of the monetary union, the government now resorted to borrowing lavishly to meet its deficit. The debt to GDP ratio also increased during the period. During 2004-2009, output in the Greek economy increased in nominal terms by 40%, while central government primary expenditures increased by 87% against an increase of only 31% in tax revenues. Public sector wages rose by over 50% between 1999 and 2007. Greece lived under the helm of a welfare state, with excessive spending on wages and early retirement benefits. Greek Crisis: Consequences of sub-prime Tourism and shipping are the two biggest revenue generators for the Greek economy. Both the sectors were badly hit when the sub-prime crisis wrecked global economy. There was a significant drop in the government revenue due to the shrinking of earnings from these sectors. Also, tax evasion, which was always an area of concern for the country, took full shape during this period. This led to high fiscal deficit and even higher levels of debt. In October 2009, Fitch downgraded the sovereign debt of Greece to BBB+. This lead to widening of bond yield spreads and CDS spreads. In April 2010, Greek debt was further downgraded to junk status, which effectively closed the availability of capital market financing to the country. This all was a part of a large vicious cycle. Poor ratings and excessive debt led to higher yields. Tax revenues fall due to tax evasion and GDP shrinkage. This led to higher deficit which warranted borrowing more to finance the deficit, which led to even higher cost of debt. Greek Crisis: Troika steps in The European Commission, The European Central Bank and IMF are called the troika, the three pillars on which the Greek and Euro zone hopes are resting. Amidst concerns that Greece will default on its payments and might exit the Euro zone, the troika steeped in to bail out the country. Phases of bailouts were given, based on the following measures: Austerity measures to restore fiscal balance Privatisation of government assets worth â‚ ¬50bn by the end of 2015 Structural reforms to improve growth prospects Also, debt restructuring was carried out in Greece as part of the second bailout plan. Under this, private creditors holding Greek govt. bonds were to accept lower interest rates and a 53.5% face value loss. This led to a fall in the forecasted Debt t o GDP ratio of 198% in 2012 to around 160% in the same period. The aim is to reduce the ratio to 120% by 2020. From 2012-14, troika is to cover all Greek financial needs through restructuring and bailout packages. From 2015-20, financial needs are to be met partly by capital markets and partly by privatization of govt. Assets. In May 2012, a 2 year extension was demanded till 2017 to return to self financed situation. 2 key bills were passed in the Greek Parliament pertaining to this in the last week – ‘Labour market reform’ and ‘Midterm fiscal plan 2013-16’. Should Greece leave the Euro Area? Is a fiscally-challenged country likely to want to leave the Euro Area? The brief answer is no – quite the contrary: a fiscally weak country is better off in the Euro Area than outside it. The only argument for leaving the Euro Area is that the introduction of a new national currency (New Drachma, say) would lead to an immediate sharp nominal and real depreciation of the new currency and a gain in competitiveness, which would be most welcome. It also would not last. The key rigidities in small open economies like Greece are real rigidities, not persistent Keynesian nominal rigidities, which are necessary for a depreciation or devaluation of the nominal exchange rate to have a material and durable impact on real competitiveness. Unless the balance of economic and political power is changed fundamentally, a depreciation of the nominal exchange rate would soon lead to adjustments of domestic costs and prices that would restore the old uncompetitive real equilibrium. All other arg uments either favour staying in for a fiscally weak country or are neutral. As regards the existing stock of sovereign debt, in or out makes no difference. Re-denominating the old euro-denominated debt in New Drachma would be an act of default. A country might as well stay in the Euro Area and default on the euro-denominated debt. As regards new government borrowing, issuing New Drachma denominated debt would be more costly (because an exchange risk premium would be added to the sovereign risk premium) than new borrowing using euro-denominated debt as part of the Euro Area. There would be massive balance sheet disruption for banks, other financial institutions and other corporate with large balance sheets, as the existing stock of assets and liabilities would remain euro denominated but there would no longer be a euro lender of last resort. It may be possible for contract and securities internal to Greece, that is entered into or issued under Greek jurisdiction alone, to be redenominated in New Drachma, but cross-border contracts and securities issued in other jurisdictions could not be redenominated that way without this constituting a n act of default. There would be no fiscal-financial support from other Euro Area member states should a country leave the Euro Area. Leaving the Euro Area means leaving the EU. There is no such thing as a former Euro Area member that continues as an EU member. A current EA member wishing to leave the EA but continue as an EU member would have to leave both the Euro Area and the EU and then re-apply for EU membership. Under the Lisbon Treaty, there now is a procedure for leaving the EU. A country cannot be expelled from the Euro Area, or from the EU. The only real threat of the Euro Area breaking up comes from the possibility that one or more of the fiscally strongest and more competitive members (Germany) could decide to leave the Euro Area (and the EU), because of a fear of becoming the bailer-out of first resort for all would-be fiscally-insolvent Euro Area member states. The changing of the generations in Germany from Kohl to Schrà ¶der and then to Merkel has weakened the traditional umbilical link of Germany, and especially Germany’s political class, to the EU and the Euro Area, but not (yet) to the point that one can reasonably envisage Germany leaving the Euro Area and the EU. Alternatives * Wage increase, higher inflation in Germany Wage increase in Germany would fuel inflation in Germany that will lead to increase in cost of goods sold in the economy. This would accelerate industry expansion to other territories especially like Greece, Spain. Since Greece’s main economy driver has been the tourism industry and that is also seasonal. * Common Eurobonds Instead of having separate government bonds, common Euro bonds should be issued. This would never lead to the chain reaction that was led by the Greek government bonds. * Greece or other weaker nations leaving Euro zone Greece and other weaker nations should leave Euro Zone and back to their respective currencies. This would help adjust their monetary policy with their fiscal policy. * Fiscal Integration One of the major development areas is increased European integration giving a central body increased control over the budgets of member states Key Learnings * LESSON 1: Financial markets are prone to exaggerations, which amplify further the pro-cyclicality inherent in asset valuations In times of recession, when the degree of risk aversion increases and GDP growth contracts, asset prices tend to decline and risk spreads rise. Also during this period, the standard pattern of pro-cyclicality may be amplified by market exaggerations: investors tend to over-price certain types of risk and thus under-price the respective financial assets. Exaggerated pro-cyclicality of this type has hit the sovereign bond market during the crisis. Furthermore, in particular through the use of sovereign bonds as collateral, it has exerted adverse effects on other segments of financial markets, such as the funding markets for financial institutions. There are many ways to mitigate this pro-cyclicality of government bond markets. One way is to reduce the reliance of the financial, regulatory and supervisory framework on credit ratings * LESSON 2: Fiscal Policy Union along with Monetary Policy Union is important in order to keep countries with common currency on the same page Since Euro was a common currency, Euro Currency Board took charge of the common monetary policy for the nations, but the fiscal policies differed in each country, leading to a widening gap between each country’s financial statuses. One way to curb this problem is to facilitate fiscal integration of the organizations. This would ensure that no country is not overspending and will have limited budget to workout. * LESSON 3: Welfare of the masses is not in Transfer Payments but in Investment and employment creation in the country Austerity measures would only help in curtailing the massive expenditures done on Social welfare schemes such unemployment allowances. Nations should focus on increasing the investment in the nation and looking for opportunities, where it can generate employment for its masses. This would lead to long-term economic stability in the nation. Takeaways for India * While the Indian economy needs fund flows from different sources, it should exercise special caution while depending on the overseas debt India must not allow its public debt to increase any further, especially from the external sources which may play havoc with the country’s debt situation amidst increasing volatility rupee’s foreign exchange rate * India must focus on curtailing its fiscal deficit and should be very cautious in opening up its market and allowing foreigners to invest in government securities Per capita public debt is higher than the growth in per capita income, implying that the population borrowings are increasing at a much faster pace than their earnings. Hence population is being burdened with higher amounts of public debt. Per capita income and per capita debt both have increased over the years. While per-capita income increased from Rs. 26,015 in 2005-06 to Rs. 38,005 in 2011-12 the per capita debt increased from Rs. 13,276.87 in 2005-06 to Rs. 27,044.22 in 2011-12 * Interest Payments are absorbing about one-third of Central Government’s revenue, leading to increase in non-plan expenditure. Interest payments is the fact that not only are interest payment a large contributor to the non-plan expenditure but a large part of the total revenue receipts of the Central Government are also being used to finance them and raising funds from overseas as debt at present times poses several risks, the main problem being extra burden on redemption because of lowering of the rupee value.

The Silver Linings Playbook Chapter 4

The Worst Ending Imaginable Knowing that Nikki does a big unit on Hemingway every year, I ask for one of Hemingway's better novels. â€Å"One with a love story if possible, because I really need to study love – so I can be a better husband when Nikki comes back,† I tell Mom. When Mom returns from the library, she says that the librarian claims A Farewell to Arms is Hemingway's best love story. So I eagerly crack open the book and can feel myself getting smarter as I turn the first few pages. As I read, I look for quotable lines so I can â€Å"drop knowledge† the next time Nikki and I are out with her literary friends – so I can say to that glasses-wearing Phillip, â€Å"Would an illiterate buffoon know this line?† And then I will drop some Hemingway, real suave. But the novel is nothing but a trick. The whole time, you root for the narrator to survive the war and then for him to have a nice life with Catherine Barkley. He does survive all sorts of dangers – even getting blown up – and finally escapes to Switzerland with the pregnant Catherine, whom he loves so much. They live in the mountains for a time, in love and living a good life. Hemingway should have ended there, because that was the silver lining these people deserved after struggling to survive the gloomy war. But no. Instead he thinks up the worst ending imaginable: Hemingway has Catherine die from hemorrhaging after their child is stillborn. It is the most torturous ending I have ever experienced and probably will ever experience in literature, movies, or even television. I am crying so hard at the end, partly for the characters, yes, but also because Nikki actually teaches this book to children. I cannot imagine why anyone would want to expose impressionable teenagers to such a horrible ending. Why not just tell high school students that their struggle to improve themselves is all for nothing? I have to admit that for the first time since apart time began, I am mad at Nikki for teaching such pessimism in her classroom. I will not be quoting Hemingway anytime soon, nor will I ever read another one of his books. And if he were still alive, I would write him a letter right now and threaten to strangle him dead with my bare hands just for being so glum. No wonder he put a gun to his head, like it says in the introductory essay.