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CHAPTER 1 INTRODUCTION
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CHAPTER 1 INTRODUCTION
Organization is a social unit which is deliberately constructed and reconstructed to seek specific goals. An organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common endeavour. The evolution of organization dates back to the early stages of human civilization when two or more persons began to co-operate and combine together for fulfilling their basic needs of food, clothing, shelter and protection of life. Thus, an organization is born when people combine their efforts for some common purpose. It is a universal truth that an individual is unable to fulfill his needs and desires alone because he lacks strength, ability and resources. So he seeks the co-operation of other people who share goals with him. With the permission and consent from the company management and our college, I got an opportunity to undertake an Organization study in one of the top software company TATA CONSULTANCY SERVICES (TCS)
1.2 OBJECTIVE OF THE STUDY The following are the specific objectives of this Organization Study. To study the organizational and departmental structure for proper working. To analyze functions performed by the various Departments in the organization. To gather Managerial practical experience in an organization. To secure practical knowledge regarding the HR, Finance, Technical service and Operation aspects. To get familiarized with the real world organization system. To know about the compensation and benefit administration, Grievance procedure, Recruitment, Promotion policy etc. IMK Adoor Page 2
To analyze the internal strengths and weaknesses. To study the competition within the industry.
1.3 SCOPE OF THE STUDY Master of Business Administration being a business oriented course; a practical application and exposure of the theoretical knowledge is most desirable to this course. As the study throws light on the functions of various departments in the company, the study is of great help to gain awareness about organizational atmosphere.
1.4 RESEARCH METHODOLOGY: In this project both types of data where used, that is 1. Primary data 2. Secondary data Primary data The primary data are collected through the observation and lively interaction with the employees, and executives of Tata Consultancy Services. Primary data refers to the data collected by the investigator directly through primary sources. It includes; Direct observation Interview (personal) Secondary data The secondary data are collected by review of literature like, company reports, books, journals, Internet, company website, etc. 1.4 LIMITATIONS Time allotted is not enough to get all the information regarding the organization. Page 3
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1.5 CHAPTERISATION The report has been presented in seven chapter are as follows. CHAPTER 1: CHAPTER 2: CHAPTER 3: CHAPTER 4: CHAPTER 5: CHAPTER 5.1: CHAPTER 5.2: CHAPTER 6: Appendix Bibliography Deals with introduction, objectives of the study, scope and significance of the study, methodological design of the study and limitations of the study It includes industry profile, Size of industry, History, products and services. It includes Company Profile, Objective, Vision and Mission. Deals with different functional departments. Competitive Analysis SWOT analysis Porters Five Force Analysis Deals with finding and conclusion. It also includes self evaluation of study and suggestions and recommendation.
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USD Billion IT Services Business Process Out Sourcing (BPO) Packaged Software Hardware Total
Table No: 2 .2 Worldwide IT Spends (Source: TCS Annual Report 2009-10) The economic downturn contributed to reduction in spending in the first half of 2009 and early signs of pick up in spending became visible in second half of 2009. Companies had reduced IT spending either by delaying the decisions or by putting some discretionary spending on new IT projects on hold in the first half of 2009. This lead to both pricing and volume IMK Adoor Page 10
% of Addressable market not Market addressed 280 appox 80% 220 appox 84% 500 appox 82%
Market sizing and long-term potential of global sourcing market. (Source: TCS Annual Report 2009-10)
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USD Billion IT Services Business Process Out Sourcing (BPO) Packaged Software Hardware Total R&D and Engineering
2008 591
2013
Table No: 2.4 Global Technology Spend Forecast (Source: TCS Annual Report 2009-10) Global technology spends is expected to increase from USD 1.6 trillion in 2008 to 1.9 trillion by 2013 at Compounded Annual Growth Rate(CAGR) of 3.5%.
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3.2 History
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TAL Manufacturing Solutions exports titanium-composite floor beams that are installed in the Boeing 787 aircraft. Tata AutoComp Systems Limited (TACO) and its subsidiaries, auto-component manufacturing Tata Motors (formerly Tata Engineering and Locomotives Company Ltd (TELCO)), manufacturer of commercial vehicles (largest in India) and passenger cars Jaguar and Land Rover Tata Projects Tata Consulting Engineers Limited Telco Construction Equipment Company TRF Bulk Material Handling Equipment & Systems and Port & Yard Equipments. Voltas, consumer electronics company Voltas Global Engineering Centre
Energy
Tata Power is one of the largest private sector power companies. It supplies power to Mumbai, the commercial capital of India and parts of New Delhi.
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Rallis India Tata Pigments Tata Chemicals, headquartered in Mumbai, India, Tata Chemicals has the largest single soda ash production capacity plant in India. Since 2006 Tata Chemicals has owned Brunner Mond, a United Kingdom-based chemical company with operations in Kenya and the Netherlands.
Advinus Therapeutics, headquartered in Bangalore, Indian, a Contract research organization focused on drug discovery and development for Pharmaceutical, Agro and Biotech industries.
Services
The Indian Hotels Company Tata Housing Development Company Ltd. (THDC) TATA AIG General Insurance TATA AIG Life Insurance Tata Advanced Systems Limited Tata Asset Management Tata Financial Services Tata Capital Tata Investment Corporation Tata Quality Management Services Tata Share Registry Tata Strategic Management Group (TSMG) is one of the largest consulting firms in South Asia. Tata Services
Consumer Products
Tata Salt, i-Shakti Salt, Tata Salt Lite Eight O Clock Coffee Page 17
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Tata Ceramics Infiniti Retail Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea products. It also owns the Tetley brand of tea sold primarily in Europe. Titan Industries manufacturers of Titan watches Trent (Westside) Tata Sky Tata International Ltd - Leather Products Division Tanishq jewellery Star Bazaar
Computational Research Laboratories INCAT Nelco Nelito Systems Tata Business Support Services (formerly Serwizsol) Tata Consultancy Services Ltd. (TCS) is Asia's largest software company with 2008-09 revenues being over US$ 6 bn. Tata Elxsi is another Software and Industrial design company of the Tata stable. Based in Bangalore and Trivandrum. One of the leading companies in the animation industry of India.
Tata Interactive Systems Tata Technologies Limited Tata Teleservices Tatanet Tata Communications, formerly VSNL, the Indian telecom giant, was acquired in 2002. Tata-owned VSNL acquired Teleglobe in 2005. CMC Limited
Tata Institute of Fundamental Research Tata Institute of Social Sciences Indian Institute of Science National Centre for Performing Arts Tata Management Training Centre Tata Memorial Hospital Tata Trusts, a group of philanthropic organizations run by the head of the business conglomerate Tata Son. The JRD Tata Ecotechnology Centre The Energy and Resources Institute (earlier known as Tata Energy and Research Institute) - which is an NPO completely committed to the cause of research in the field of renewable energy.
A comprehensive list is available on the company website. 3.5 Tata acquisitions and targets
February 2000 - Tetley Tea Company, $407 million March 2004 - Daewoo Commercial Vehicle Company, $102 million August 2004 - NatSteel's Steel business, $292 million November 2004 - Tyco Global Network, $130 million Page 19
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July 2005 - Teleglobe International Holdings, $239 million October 2005 - Good Earth Corporation December 2005 - Millennium Steel, Thailand, $167 million December 2005 - Brunner Mond Chemicals Limited, $120 million June 2006 - Eight O'Clock Coffee, $220 million November 2006 - Ritz Carlton Boston, $170 million Jan 2007 - Corus Group, $12 billion March 2007 - Bumi Resources, $1.1 billion April 2007 - Campton Place Hotel, San Francisco, $60 million February 2008 - General Chemical Industrial Products, $1 billion March 2008 - Jaguar Cars and Land Rover, $2.3 billion March 2008 - Serviplem SA, Spain April 2008 - Comoplesa Lebrero SA, Spain May 2008 - Piaggio Aero Industries S.p.A., Italy June 2008 - China Enterprise Communications, China June 2008 - Neotel, South Africa. October 2008- Miljo Grenland / Innovasjon, Norway Imacid chemical company, Morocco
3.6 Targets
Close Brothers Group, $2.9 billion Orient Express Hotels, $2.5 billion January 2008 - T-Systems International (IT division of Deutsche Telekom)
3.7 Revenue
Tata gets more than 2/3rd of its revenue from outside India.
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Public (BSE: 532540)Subsidiary of Tata Group IT services, IT consulting 1968 Mumbai, Maharashtra, India Ratan Tata (Chairman), S Ramadorai (Vice Chairman) N Chandrasekaran (CEO & MD) TCS Bancss Digital Certification Products Healthcare Management Systems Outsourcing BPO Software Products Rs 30,028.92 crore (US$ 6.4 billion)(2010) Rs 8,305.73 crore (US$ 1.77 billion)(2010) Rs 7,092.66 crore (US$ 1.51 billion)(2010)
Key people
Products
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3.9 History
Tata Consultancy Services was established in the year 1968 and is a pioneer in Information Technology Outsourcing and Management Industry. Despite unfavourable government regulations like the Licence Raj the company succeeded in establishing the Indian IT Industry. It began as the "Tata Computer Centre", for the company Tata Group whose main business was to provide computer services to other group companies. F C Kohli was the first general manager. JRD Tata was the first chairman, followed by Nani Palkhivala. One of TCS' first assignments was to provide punched card services to a sister concern, Tata Steel (then TISCO). It later bagged the country's first software project, the Inter-Branch Reconciliation System (IBRS) for the Central Bank of India. It also provided bureau services to Unit Trust of India, thus becoming one of the first companies to offer BPO services. In the early 1970s, Tata Consultancy Services started exporting its services. TCS's first international order came from Burroughs, one of the first business computer manufacturers. TCS was assigned to write code for the Burroughs machines for several US-based clients. This experience also helped TCS bag its first onsite project - the Institutional Group & Information Company (IGIC), a data centre for ten banks, which catered to two million customers in the US, assigned TCS the task of maintaining and upgrading its computer systems. In 1981, TCS set up India's first software research and development center, the Tata Research Development and Design Center (TRDDC). The first client-dedicated offshore development center was set up for Compaq (then Tandem) in 1985. In 1989, TCS delivered an electronic depository and trading system called SECOM for SIS SegaInterSettle, Switzerland. It was by far the most complex project undertaken by an Indian IT company. TCS followed this up with System X for the Canadian Depository System and also automated the Johannesburg Stock Exchange (JSE). TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired. IMK Adoor Page 22
3.12 VISION
Global Top 10 by 2010 3.13 MISSION To help customers achieve their business objectives, by providing innovative, best-in-class consulting, IT solutions and services, to make it a joy for all stakeholders to work with us. 3.14 VALUES Leading change, Integrity, Respect for the individual, Excellence, Learning and sharing.
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Continent Africa
Branches South Africa, Morocco Bahrain, China Hong Kong, Indonesia, Israel, Japan, Malaysia, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand, UAE
Australia Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom Canada, Mexico, USA Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay Table No. 3.3
Tata Consultancy Services maintains a very good relation with their clients. TCS mainly provides services to their customers in the following fields:
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IT services Business Process Outsourcing Consulting Industrial services and Engineering Infrastructure outsourcing
Tata Consultancy Services offer their services to their clients from various industries. Some of the related industries are:
Government Retail Manufacturing Telecom Energy and utilities Hi technology Banking and other financial services Travel and hospitality Insurance Healthcare
3.21 Global Network Delivery Model: TCS has established a unique Global Network Delivery Model (GNDM) that allows the company to deliver services to customers from multiple global locations in India, China, Europe, North America and Latin America. The GNDM enables the companys delivery centers to collaborate on project and leverage all its assets in order to ensure One Global Service Standard.
Figure No. 3.1 TCS Revenue from Global Consulting (Source: TCS Annual Report 2009-10)
3.22 Employees
TCS is the largest private sector employer in India with total employee strength of 160,429 including those of its subsidiaries. This diverse and global base of employees from 80 nationalities is central to sustaining TCS competitive edge. TCS has 10400 non Indian nationals (including in subsidiaries) among its employee base globally. The percentage of woman working IMK Adoor Page 28
Figure No. 3.2 Attrition rate for the last twelve months trends over last four years (Source: TCS Annual Report 2009-10)
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Figure No. 3.3 Increase in Woman Employment of TCS (Source: TCS Annual Report 2009-10)
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HEAD HR
HEAD IS
HEAD ILP
HEAD ISM
HEAD FINANCE
Chart No. 4.1 TCS TRIVANDRUM ORGANOGRAM Key Term: AIP-Academic Interface Programme DCH- Delivery Center Head ILP- Initial Learning Programme ISM- Information Security Management IS- Infrastructural Services
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Welfare officer: TCS Trivandrum is having a welfare officer, who takes care of employees. Grievance handling is also done by the welfare officer. Employees can directly post their grievance in Knowmax (TCS website). Issue tracker is available in Knowmax which help to solve grievance. The attrition rate is 11.8% in fiscal year is the lowest in the industry. This low attrition rate has been achieved by continuously investing in learning and development programmes for employees, competitive compensation, creating compelling work environment, empowering employees at all level, as well as well structured reward and recognition mechanism. The below diagram will show more details about the HR department.
Induction / Release
Maitree / Seperatio n
RMG ILP
Shared Services
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TCS ILP Trivandrum has proven to be an effective grooming and training center by moulding well equipped workforce that fits the future career demands. More than 17, 524 trainees completed ILP training during last financial year. Initial Learning Process consist of two parts, common ILP and stream ILP. Common ILP is conducted to make the trainees aware of TCS policies. In otherwords it can be termed as general induction. Tests will be conducted after the completion of common ILP and on the sucessful completion of common ILP trainees will be moved to stream training. Trainees are batched into streams on the base of TCS requirements and taent of the trainee. Stream training is for 3 months and based on the sucessful completion of stream training trainees are posted to placed across the TCS organizations by the Resource Management Group (RMG) in consultation with the Corporate Head Office depending on the employment requirements for the particular quarters
Prepare strategy for ILP: ILP strategy will be formulated in tune with the growth strategies and organizational needs with respect to fresher recruitment. This is revised annually. ILP strategy will also include directions on use of innovative ways and modes of delivering learning Review and approval of strategy for ILP: Head, Global L&D would review and approve the ILP strategy. Communicate strategy for ILP: Head, ILP will communicate the strategy to all relevant stakeholders including key roles in L&D, Business and HR. Define Initial learning plan: Page 38
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Preparation of the schedule for the learning program includes Identify faculty for conducting ILP components. Arrange for appropriate instructional resources. Finalize and release the schedule. Arrange for all resources related to the program Conduct the learning program:
Maintain record of participants attendance: Attendance of participants is tracked on a daily basis and records are maintained. Evaluate participants performance: Participants performance is evaluated based on the evaluation guidelines. Suitable follow up action is identified and implemented for participants who do not meet the performance criteria. Maintain record of the participants performance :The ILP manager delivery/ technical/lifeskills shall keep record of the performance of the participants.The consolidated records of performance of ILP participants across centers shall be maintained by ILP PMO Identify absenteeism of participants and take necessary follow-up actions The ILP manager delivery /ILP coordinator shall keep track of absenteeism among participants and shall report to HR as per the organizational guidelines Consolidate feedback form from participants Consolidate feedback form from faculty Initiate Remedial Action, if any
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Prepare and release the reports for every ILP batch: The ILP coordinator will ensure that the following reports are released when a batch completes all the learning programs.
Participants Performance Report (PPR) Program Summary Report (PSR) Place of Transfer and Missed Courses Report , if applicable Participants Performance Analysis Report
Collect the details of the faculty identified for conducting ILP Evaluate the identified faculty for the need to undergo FDP Schedule and conduct FDP Analyse effectiveness of learning program: Collect feedback from past ILP Participants and their Project Leaders. Generate Reports on Effectiveness of ILP. Identify appropriate Remedial action, if needed (QC) based on analysis. Implement Remedial action. Update courseware:
Identify the person (s) for developing/updating ILP instructional resource Update/Develop ILP instructional resource Organize and conduct the review of the ILP instructional resource developed/modified Authorize the release of ILP instructional resource (ILP-H)
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Status Reporting Collect & collate data Report the ILP activities and metrics in respective areas.
VP HR
L&D Head
ILP Head
Planning Manager
Digitization Manager
ILP ORGANOGRAM
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Figure No. 4.2 Industrial Segment Revenues 2009-10(Source: TCS Annual Report 2009-10) Finance Department TCS Trivandrum IMK Adoor Page 42
Major functions of Finance Department of TCS Trivandrum: Claim handling: Employees can claim for certain reimbursement, like medical reimbursement, advanced salary etc. This is handled by the finance department. Tax deduction: It is the duty of the employer to reduce the tax liability of the employees at the source. The finance department is deducting the tax of the employees of TCS Trivandrum. Expenses related to accommodation (trainees, clients, etc), repair and maintenance of the building of TCS Trivandrum, etc is handled by this department. Asset accounting MIS Preparing cash flow statement of TCS Trivandrum Bank Reconciliation and Payment to employees (Partially)
Head Finance
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IPD ( TH Salim )
Basic functions of this department: Transaction of books: Various types of books are like technical, management, fictions etc are available in the library. All trainees and employees have access to the library. Transaction of books to employees is one of the functions of Library and information system. Query based function: (Global Help Desk) Providing information to all employees.
Computers are available in the library. All those who have India Domine ID and password can use computers. The library timing varies according to the requirement.
Branch Head
Library Officer
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Figure No. 4.3 Academic interface program workshops conducted, faculty trained. (Source: TCS Annual Report 2009-10) Talent acquisition IMK Adoor Page 47
Figure No. 4.4 Number of TCS accredited academic institutions. (Source: TCS Annual Report 2009-10) Functions of AIP Create and maintain good relationship with foremost universities in India and rest of the world. Conduct workshops and faculty training programs in these institutions.
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AIP cooperates with Talent Accusation Group (TAG) in accruing fresh talents. Most popular mode of recruitment in TCS is through campus selection. Mainly from those institutions which are accredited to TCS. Institutions are accredited on the base of quality of students. Joining rate is a factor which determines the retention of the accreditation. Mr. John Joseph is the Academic Relationship Manager (ARM) in the corporate level. He works from Trivandrum. The department structure and reporting is seen in the diagram below.
Corporate Manager AIP Academic Relationship Manager AIP Coordinator Chart No. 4.7 AIP ORGANOGRAM
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SDO
Resident Engineer
Over the last four years IS unit of TCS has been growing at a CAGR of 46%. During the financial year the unit bagged new deals in business transformation solution, new delivery models, Remote Infrastructure Management (RIM) and end-to-end infrastructure services. During the year TCS Infrastructure Management services offering won and receive evaluations and accolades throughout the year.
L & D Head
Corporate ISM
DCH
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Figure No.5.1 SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.
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Strengths: attributes of the person or company that are helpful to achieving Weaknesses: attributes of the person or company that are harmful to Opportunities: external conditions that are helpful to achieving the Threats: external conditions which could do damage to the objective(s).
the objective(s).
objective(s).
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The bargaining power of customers (buyers): The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customers sensitivity to price changes. TCS is having a good brand name that helps to attract customers. TCS always tries to retain its existing customers by making customers to Experience Certainty Certain clients of TCS like GE, THD, etc are having projects in competitors like Infosys, Wipro etc. So TCS is providing its customers with best quality to make the clients to switch to TCS. TCS is termed as CMMI Level 5 Company. TCS is having an inbuilt quality system iQMS which ensure internal quality. TCS provides world class security procedure to its clients. The clients are provided with opportunity to visit their project to check the security given to their projects. Buyer price sensitivity: Buyers are usually price sensitive. In order to attract and maintain buyers TCS is following good pricing strategy. TCS always tries to maintain good relation with top level management of its clients. The bargaining power of suppliers:
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CONCLUSION
CONCLUSION OF THE STUDY: It has been a great experience for me to do the study in TCS Trivandrum which is an MNC with branches all over the world The study carried out threw light on various department of TCS Trivandrum. This study helped to gain practical experience in a topic which has got very relevance. TCS is from the family of TATA group and is having all the qualities of TATA family. The earnest effort of management and the willing co-operation of the workers have put TCS on the track of prosperity.
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SUGGESTIONS
SUGGESTIONS
Transport facility can be provided to all employees. Reduce contract employees and make use of employees on bench. Give opportunities to trainees to participate in activities conducted by Maitree. Clicker can be provided to trainees to mark their attendance and to answer objective question. Camera should be made available in all class rooms to watch behavior of student during secessions. Quality of food in the canteen can be increased. Crushes can be made available. More employees can participate in Technopark cultural activities. Interior of the campus can be made more greenish. The center can be developed into a deployment center.
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BIBLIOGRAPHY
BIBLIOGRAPHY
1. Kothari.C.R,(2006), Research Methodology- Methods & Techniques, New Age International Publishers,New Delhi. 2. Dr.Nair Rajan.N, Nair Sajith-Marketing, (1993), Sultan Chand & Sons, New Delhi. 3. Dr.Gupta.S.L, (2005), Brand Management Text & Cases, Himalaya Publishing House, New Delhi. 4. Parameswaran.M.G, (2001), Brand Building- Advertising Concepts & Cases, Tata Mc GrawHill Publishing Co, New Delhi. 5. Percy Larry, Richard Elliott ( 2007), Strategic Brand Management, Oxford University Press, U.K 6. Mathur.U.C, (2006), Brand Management Text & Cases, Macmillan, New Delhi. 7. Dr.Kaptan.S.S, Dr.Pandey.S (2004), Brand Imitation, Himalaya Publishing House, New Delhi. 8. Bhattacharya Kumar Dipak,(2006),Research Methodology, Excel Books, New Delhi. 9. Nandagopal.R, Arul Rajan.K, Vivek.N,(2008),Research Methods in Business,Excel Books, New Delhi. IMK Adoor Page 71
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