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Summer Training Project Submitted in the partial fulfillment of the requirement for the award of the Degree of Bachelors of Business Administration
SUBMITTED BY: MANORANJAN SINGH BBA (4TH SEMESTER)
UNDER GUIDANCE OF:
BHARATI VIDYAPEETH UNIVERSITY, SCHOOL OF DISTANCE EDUCATION, ACADEMIC STUDY CENTER: BVIMR, NEW DELHI
I BHUVAN VYAS have completed the Summer Training Project titled “REEBOK” under the guidance of ____________________in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration of BVU, SDE, Academic Study Center BVIMR, New Delhi. This is an original piece of work & I have neither copied and nor submitted it earlier elsewhere.
The present work is an effort to throw some light on “REEBOK”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.
With deep sense of gratitude I acknowledge the encouragement and guidance received by my project guide _____________and other staff members of REEBOK.
I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.
A hallmark of any premier business school is its willingness and ability to constantly explore and implement new ideas and practices in the field of management education. Institute constantly reorients their programs in order to keep abreast of changing development. The initial interaction between school students and industry takes place when the students undergo project is usually for knowing the process for recruitment, selection, industrial relations & training of that institution. It is often the exposure to corporate culture that a student receives, particularly true for students without prior work experience. During my training at REEBOK, I was taken project on recruitment, selection & training policy of REEBOK. The main purpose of the study is to know the policies of the bank regarding recruitment, selection & training, which helped me in gaining knowledge about the different working pattern of different departments of the company.
TABLE OF CONTENT
• INTRODUCTION • INDUSTRTY PROFILE • COMPANY PROFILE • MARKETING STRATEGIES • FINANCIAL STRATEGIES • H.R. POLICIES & STRATEGIES • DATA ANALYSIS • FINDINGS • CONCLUSIONS & SUGGESTIONS • BIBLIOGRAPHY
Reebok is an American-inspired, global brand that creates and markets sports and lifestyle products built upon a strong heritage and authenticity in sports, fitness and women’s categories. The brand is committed to designing products and marketing programs that reflect creativity and the desire to constantly challenge the status quo.
REEBOK'S VISION Fulfilling Potential Reebok is dedicated to providing each and every athlete - from professional athletes to recreational runners to kids on the playground - with the opportunity, the products, and the inspiration to achieve what they are capable of. We all have the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought un-reachable.
REEBOK'S MISSION Always Challenge and Lead through Creativity At Reebok, we see the world a little differently and throughout our history have made our mark when we’ve had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brand’s unlimited creative potential.
REEBOK'S POSITIONING Celebrate Individuality in Sport and Life Reebok understands that people are, above all, unique. Reebok’s positioning reflects this; celebrating the distinct qualities that make people who they are - their unique points of view, their individual style and their remarkable talents and
accomplishments. Reebok celebrates their individuality, their authenticity and the courage it takes to forge their own path to greatness. While some may call them crazy or eccentric, Reebok calls them visionary and original.
REEBOK'S PURPOSE To Empower Global Youth to Fulfill their Potential Commitment to Corporate Responsibility is an important legacy and hallmark of the Reebok brand. For two decades, Human Rights, through the Reebok Human Rights program, was the primary focus of this effort. Reebok has expanded on what had been built and created a Global Corporate Citizenship platform with a purpose for the brand that will help underprivileged, underserved youth around the world fulfill their potential and live healthy, active lives.
REEBOK'S BRAND TERRITORY Having Fun Staying in Shape Having Fun Staying in Shape comes to life through a fun, bold, provocative manner expressed through fresh, eye catching imagery signed off with a unique 'Reeword.' The tone and manner allows the consumer to look at sport and lifestyle through our lens of 'Ree.'
Reebok International Limited, a subsidiary of the German sportswear company Adidas, is a producer of athletic footwear, apparel, and accessories. The name comes from the Afrikaans spelling of rhebok, a type of African antelope or gazelle. In 1890 in Holcombe Brook, a small village 6 miles north east of Bolton, England, Joseph William Foster was making a living producing regular running shoes when he came up with the idea to create a novelty spiked running shoe. After his ideas progressed he joined with his sons, and founded a shoe company named J.W. Foster and Sons in 1895.
In 1960, two of the founder's grandsons Joe and Jeff Foster renamed the company Reebok in England, having found the name in a dictionary won in a race by Joe Foster as a boy; the dictionary was South African edition hence the spelling.  The company lived up to the J.W. Foster legacy, manufacturing first-class footwear for customers throughout the UK. In 1979, Paul Fireman, a US sporting goods distributor, saw a pair of Reeboks at an international trade show and negotiated to sell them in North America. Human rights and production details
Reebok world headquarters in Canton In the past, Reebok had an association with outsourcing through sweatshops, but today it claims it is committed to human rights. In April 2004, Reebok's footwear division became the first company to be accredited by the Fair Labor Association. In 2004, Reebok also became a founding member of the Fair Factories Clearinghouse, a non-profit organization dedicated to improving worker conditions across the apparel industry. Supplier information, according to the Reebok website as of May 2007: "Footwear Reebok uses footwear factories in 14 countries. Most factories making Reebok footwear are based in Asia — primarily China (accounting for 51% of total footwear production), Indonesia (21%), Vietnam (17%) and Thailand (7%). Production is consolidated, with 88% of Reebok footwear manufactured in 11 factories, employing over 75,000 workers. "Apparel Reebok has factories in 45 countries. The process of purchasing products from suppliers is organized by region. Most (52%) of Reebok's apparel sold in the
United States is produced in Asia, with the rest coming from countries in the Caribbean, North America, Africa and the Middle East. Apparel sold in Europe is typically sourced from Asia and Europe. Apparel sold in the Asia Pacific region is typically produced by Asian-based manufacturers.  Endorsements  North America The company holds exclusive rights to manufacture and market both authentic and replica uniform jerseys and sideline apparel of the teams of the National Football League (NFL) since 2002 (marketed as NFL Equipment), the Canadian Football League (CFL) since 2004, and is the official shoe supplier to the NFL and Major League Baseball (MLB). The company also holds sponsorships with Mexican club Chivas Guadalajara; Brazilian clubs Cruzeiro, Internacional, and São Paulo FC; and German club FC Köln for the 2008–09 season.  CCM
Logo of Sidney Crosby Rbk SC87 line by Reebok In addition, Reebok acquired official National Hockey League (NHL) sponsor CCM in 2004, and is now manufacturing ice hockey equipment under the CCM and Reebok brands, and has signed popular young stars Sidney Crosby and Alexander Ovechkin to endorsement deals (Crosby for Reebok, Ovechkin for CCM). Reebok has phased out the CCM name on NHL authentic and replica jerseys in recent years, using the Reebok logo since 2005.
Reebok is also endorsed by Lewis Hamilton, Allen Iverson, Yao Ming, Carolina Klüft, Amélie Mauresmo, Nicole Vaidišová, Shahar Pe'er, Ivy, Thierry Henry, Vince Young, Iker Casillas, Ryan Giggs, Andriy Shevchenko, and Amir Khan. Europe
The Reebok Stadium in Horwich, Bolton The company maintains its relationship with its origins in the UK through a long-term sponsorship deal with Bolton Wanderers, a Premier League football club. When the team moved to a brand new ground in the late-1990s, their new home was named the Reebok Stadium. Several other English clubs had Reebok sponsorship deals up until the purchase by Adidas, but most have since switched to either the parent brand (which has a long history in football) or another company altogether. In rugby union, Reebok sponsored the Wales national team until late 2008, who won the Grand Slam in the Six Nations Championship in that year, and the Tasman Makos in New Zealand's domestic competition, the Air New Zealand Cup. In 2006, FC Barcelona and France striker Thierry Henry (then playing for Arsenal) signed a deal to join the "I Am What I Am" campaign on 1 August 2006. Ryan Giggs has also done "I Am What I Am" commercials. Also, on 1 August, Andriy Shevchenko started his endorsement deal with the company. Australia In 2005, Reebok also signed an exclusive agreement to design and supply all eight team home and away strips for the new Australian A-League competition. Although not an expensive deal, this partnership is paying dividends for Reebok, due to the growing popularity of football and the league in the area. An estimated 125,000
jerseys have been sold in Australia, a record for a single league's sales in a year for a sports manufacturer. Reebok sponsors four teams in the Australian Football League, those being the Gold Coast Suns, the Melbourne Football Club, the Port Adelaide Football Club and the Richmond Football Club. Reebok sponsors the St George Illawarra Dragons in the NRL.
Reebok advertisement in Basel India Reebok sponsored sports kits for the great rich Indian Premier League teams, such as the Royal Challengers Bangalore, Kolkata Knight Riders, Rajasthan Royals and Chennai Super Kings in the first edition of the league held in 2008, however for the second edition held in 2009 the sponsorships included (Royal Challengers Bangalore, Kolkata Knight Riders, Chennai Super Kings, Kings XI Punjab) kits.
Turkey When Reebok was first introduced to the Turkish market during the late 1980s, fake versions of the shoe under the name RecebOk were produced and illegally sold in the street bazaars. The biggest rival of RecebOk in the weekly and famous "Tuesday Bazaar" (Salı Pazarı) of the Kadıköy district was Adadas, the fake version of Reebok's sister brand.
Non-Sports Rapper Jay-Z became the first non-athlete to get a signature shoe from Reebok. The "S. Carter Collection by Rbk" was launched on 21 November 2003 and the S. Carter sneaker became the fastest-selling shoe in the company's history. Later, Reebok made a deal with rapper 50 Cent to release a line of G-Unit sneakers and artists like Nelly and Miri Ben-Ari have become spokespersons for the company. Reebok also signed Scarlett Johansson and introduced her own line of apparel and footwear called Scarlett Hearts, an Rbk Lifestyle Collection. Recent news
In 2009, Reebok launched JUKARI Fit to Fly, an innovative gym workout designed for all women with one single objective – to make fitness for women fun again. JUKARI, the result of a long-term relationship between Reebok and the globally renowned entertainment company, Cirque du Soleil, is an hourlong workout that was created on a specially-designed piece of equipment called the FlySet, which gives the sensation of flying while strengthening and lengthening the body through cardio, strength, balance and core training. JUKARI launched in top gyms in fourteen cities around the world including Hong Kong, Mexico City, Madrid, London, Krakow, Munich, Seoul, Kuala Lumpur, Buenos Aires, Santiago, Montreal, Los Angeles, Boston, and New York. To complement JUKARI Fit to Fly, Reebok also created two collections of women’s fitness apparel and footwear called On the Move and the ReebokCirque du Soleil collection. Both lines consist of products that can be worn for a range of fitness disciplines, from running to yoga, JUKARI Fit to Fly, to tennis. All were developed and designed with a deep understanding and knowledge of the unique way a woman’s body moves.
In 2009, Reebok launched the EasyTone footwear collection that allows consumers to “take the gym with them.” The EasyTone technology involves two balance pods under the heel and forefoot of the shoe that create a natural instability with every step, which Reebok claims forces the muscles to adapt and develop tone.
In April 2008 Reebok launched it's online store in UK and France . In January 2009 Reebok had extended the store to Germany, Austria, Netherlands, Belgium and Ireland and had also introduced YourReebok – an application to design your own Reeboks .
For the 2008–09 season, Reebok created the Reebok Edge 2 uniform system, for National Hockey League's players. The league adopted the jersey and now all teams sport the new style for both their home and away jerseys.
In July 2007, Reebok launched its Lifestyle Footwear Collection in association with Daddy Yankee's new album. In December 2007, Reebok launched the GOAL Collection of football gear on the release of the Indian football movie Dhan Dhana Dhan Goal.
In June 2007, Reebok announced Scarlett Johansson on its array of brand ambassadors. Johansson promotes the Scarlett 'Hearts' Rbk" collection, a 'fashion-forward, athletic-inspired' footwear targeted at the Indian market.
For the 2007/08 season, the National Hockey League introduced a new uniform system league-wide, designed and manufactured by Reebok and called Reebok Edge. The new uniforms include new fabrics which are said to repel water and sweat more effectively. Most players have avoided comment, but some have commented that the Edge system's improved water repelling abilities leads to gloves and skates becoming saturated and uncomfortable during play.
In late 2006, a court case began between Liverpool FC, the winners of the 2005 UEFA Champions League while wearing Reebok's kit, and Reebok. Reebok claimed that Liverpool cost them £7m because of a delay in confirming the renewal of the Carlsberg sponsorship deal, which meant a delay in releasing the away shirt for 2005/06 (the last that Reebok would make for them)The kit that was eventually released was very similar to the away kit for 2003/04. Liverpool subsequently switched to Adidas for their official kit following Adidas' acquisition of Reebok.
In November 2006, the National Basketball Association and Women's National Basketball Association switched from Reebok to Adidas branding on authentic and replica jerseys because that brand is better known outside North America and the UK.
In October 2006 Reebok launches its first blog, I am what I am in Spanish. On March 23, 2006, Reebok recalled 300,000 charm bracelets that contained extremely high levels of lead. The bracelet has a heart pendant at the end that is printed with the name "Reebok." It allegedly caused the lead poisoning death of a 4-year-old child who swallowed it.
In August 2005, one of the company's largest rivals, Adidas, announced that it would acquire Reebok for $3.8 billion. The deal was completed in January 2006.
ENVIRONMENT AT HEADQUARTERS Energy Consumption The 500,000 square foot Reebok world headquarters facility, located in Canton, Massachusetts, incorporates many energy efficient systems. This facility was completed in 1999 and takes advantage of energy consumption reduction technologies in the lighting, heating and cooling systems. Additional energy reduction steps have been taken since its completion. Efficient use of energy resources reduces our costs and respects the needs of future generations. In 2003-2004 at Reebok’s World Headquarters and its Distribution Centers energy efficient equipment upgrades to the heating and cooling systems and lighting fixtures saved nearly 2M kWh and $200,000 annually. Reebok has also installed environmentally friendly carpeting, which was manufactured at sites using solar power.
REACH Through Reach, the Reebok Employee Charitable program, the brand is committed to empowering and encouraging Reebok employees to get involved and make a positive difference in their communities. Through modest financial Reach grants made available to Reebok’s full time employees for qualified non-profit organizations (restrictions apply), the company invites its employees to “reach” beyond their own personal means to support a cause that is important to them and their family.
Employees based in the U.S. may also apply for Reebok product donations to be used for auctions or raffles held during fundraising events for qualified non-profit organizations
COMMUNITY RELATIONS Reebok believes that a strong and consistent presence in communities around the world is imperative and, as such, the brand is committed to supporting community and philanthropic programs that make a positive difference in the lives of youth and the underserved. Reebok’s community outreach efforts are primarily focused on the communities in which its employees live and the brand operates. A brand’s external reputation is only as good as its people and engaging employees out in the community has been the foundation of Reebok’s outreach efforts. Employees consistently volunteer their time and energy at many community projects which benefit the organization and its members and provide invaluable personal satisfaction to the employee volunteers. Through its community relations efforts, Reebok also recognizes and thanks individuals who are also committed to empowering youth to fulfill their potential. As such, the brand sponsors programs that express that appreciation in ways that are delightfully unexpected and a treat for the entire family!
THE REEBOK FOUNDATION The Reebok Foundation was formed in 1986 to focus and expand on Reebok’s commitment to socially responsible action. We have worked with more that 500 nonprofit organizations. As a crucial component of Reebok’s Global Corporate Citizenship Platform, the Reebok Foundation focuses its philanthropy in communities where Reebok’s offices are located. The Foundation strives to promote social and economic equality by funding non-profit organizations delivering programs aimed at inner-city youth and underserved groups to empower youth to fulfill their potential – programs that provide youth with the tools they need to lead healthy, happy and actives lives. Reebok also encourages its U.S. employees to make charitable contributions through the Foundation’s Matching Gift Program, which doubles employees’ charitable gifts up to $1,500 per employee per year.
REEBOK 4 REAL Reebok 4 Real is our Corporate Citizenship platform and encompasses four key areas: Philanthropy, Programming, Partnerships and Sustainability
Philanthropy: The Reebok Foundation focuses its philanthropy in communities where Reebok’s offices are located. The Foundation strives to promote social and economic equality by funding non-profit organizations delivering programs aimed at inner-city youth and underserved groups to empower youth to fulfill their potential – programs that provide youth with the tools they need to lead healthy, happy and actives lives.
Programming: We offer a wide range of programming designed to inspire and engage our employees including time off to volunteer, matching gift programs, the REACH product donation program and through the Reebok4Real Human Rights Student Advocate Program. Partnerships: We seek partnerships which reflect our commitment to being responsible and making a difference. These collaborations include working with our athletes and assets and an active sponsorship of the Avon Walk for Breast Cancer. Sustainability: We take pride in our long standing efforts to set responsible workplace standards and to reduce our impact on the environment. As part of the adidas Group, we continue to help ensure fair, safe and healthy factory conditions and believe that all workers involved in the production process deserve to be treated with dignity and respect. We also strive to reduce our environmental impacts through our design process, day-to-day operations and in our supply chain. Our multi-faceted approach allows us to evolve and respond in our brand’s unique style to the ever changing, complex needs of the modern world. REEBOK'S SENIOR LEADERSHIP TEAM
The members of the senior leadership team of Reebok International Ltd., led by Uli Becker, work closely together to manage the brand’s global operations and strategic programs around the world. The team is responsible for working with their respective
groups to realize the brand’s mission to “Always Challenge and Lead Through Creativity,” and its vision, “Fulfilling Potential.”
Reebok is a great brand with outstanding assets. Reebok’s most important assets are its people. The dedicated individuals who make up the brand’s senior leadership team are: Uli Becker, President David Baxter, President, Sports Licensed Division Jim Gabel, North America Bill Holmes, Human Resources Katrin Ley, Brand Strategy and Business Development Charlie Maurath, Head of Latin America Dave Mischler, Head of Reebok Asia Pacific Matt O'Toole, Marketing John Warren, Chief Financial Officer and General Manager, Sports Licensed Division
Uli Becker, President, Reebok Brand Uli Becker is president of Reebok International Ltd. Appointed to this position in March 2008, he is responsible for the Reebok brand’s business around the world, and reports directly to Herbert Hainer, Chairman and CEO of the adidas Group. From May 2006 until March 2008, Uli was chief marketing officer for the Reebok brand. In this position, Uli oversaw the Reebok Global Marketing group, which includes product, sports and entertainment marketing, brand marketing and public relations. Prior to his role as CMO, Uli was the head of global brand marketing for the adidas
brand and served as managing director of adidas International B.V. in Amsterdam. At adidas, Uli was responsible for global advertising, media, e-marketing, marketing communications, public relations and research. Under Uli’s leadership, adidas became one of the most awarded brands in the creative world. In 2004, adidas launched its new brand thought and attitude, Impossible is Nothing, which was met with both consumer and critical acclaim around the globe. In 2001, Uli was asked to pioneer the adidas Sportstyle division, based in Portland, OR. In 2002, he returned to Europe to take on the role of head of global brand marketing. From 1998 to 2001, Uli served as head of communications for adidas Germany, overseeing advertising, public relations, marketing communications and retail strategy for the brand. Uli began his career at adidas in 1990. Early in his career he held various marketing, product and business development roles.
David Baxter, President, Sports Licensed Division As president of the adidas Group’s Sports Licensed Division (formerly OnField), David Baxter is responsible for overseeing all of Reebok’s sports licensed products and partnerships with the National Football League and National Hockey League, and adidas’ partnerships with the National Basketball Association, Women’s National Basketball Association and National Basketball Development League. Under David’s leadership, SLD leverages these League partnerships to significantly enhance both brands and increase their visibility, one of the company’s strategic priorities. He reports to both the President of Reebok and CEO of adidas. David joined Reebok in March 2001 as senior vice president and chief operating officer of OnField. Promoted to president of OnField in October 2002, David assumed additional responsibility for leading the development and implementation of
strategies to achieve brand and financial objectives for Reebok’s Sports Licensed Division. With the merger of Reebok’s two apparel groups, OnField and Reebok Apparel, in October 2003, David was named to the position of president of Reebok Apparel. Following the acquisition of Reebok by adidas, David was promoted to his current position in February 2006. David has extensive sporting goods and apparel industry experience. Prior to joining Reebok, he served as president of Logo Athletic. He joined Logo Athletic in 1998 as senior vice president of Sales and Marketing, after serving as director of apparel sales for national accounts for adidas America from 1995-1998. David began his career in 1982 as a clerk and store manager for Hibbett Sporting Goods. He went on to gain considerable industry experience as buyer for Sports a Foot (1990 – 1992) and then as buyer and divisional merchandise manager of apparel for Sports and Recreation (1992 – 1995), both of Florida. David has twice been selected to Sports Business Journal’s annual “Forty under 40” list, which recognizes the most influential executives in the sports industry under the age of 40. A four-year track athlete in college, David enjoys all sports and fitness. A native of Chicago, he currently resides in Boston.
Jim Gabel, President, Reebok North America Jim Gabel is President, Reebok North America, the brand’s largest business unit. Appointed to this position in March 2008, Jim is responsible for all of the region’s brand operations, including marketing, product merchandising, sales, finance, operations and owned retail stores. He reports directly to the President and CEO of Reebok International Ltd. Prior to joining Reebok, Jim was Senior Vice President, adidas America, where he was responsible for all brand operations for adidas and TaylorMade-adidas Golf in Canada and for directing the two largest sales accounts teams within the U.S.
Prior to this role, Jim was President, adidas Canada Ltd. where he led the Canadian operation to four years of double digit gains. Under his direction, adidas Canada’s profits and annual revenues rose considerably. Jim joined adidas in 2001 as Vice President, Sales & Marketing, adidas Canada. Before joining the adidas Group, Jim held senior level positions at Champion Canada and Mizuno Canada. Jim is a graduate of Wilfrid Laurier University in Waterloo, Ontario. He currently resides in the Boston area with his wife and three children.
Head of Human Resources, Reebok Brand Bill Holmes is Head of Human Resources for the Reebok brand worldwide. Appointed to this position in January 2006, Bill is responsible for Human Resources support for the Reebok organization as well as aligning the HR management practices with the strategic direction of the company. Among his responsibilities are talent management, organizational development, talent acquisition and employee relations. Bill reports to Uli Becker, President and CEO of Reebok International Ltd, and Matthias Malessa, Chief Human Resources Officer for the adidas Group. Since joining Reebok in 1994, Bill has held a variety of Human Resources positions across all business functions and divisions, including Reebok, Rockport, Greg Norman Collection, and the Sports Licensed Division (NFL, NBA, NHL and NCAA). He brings to his role a strong understanding of the Reebok business and a passion for the consumer goods industry. Bill earned a B.A. from Tufts University. He and his wife, Mary, live in Hyde Park, MA with their three children.
Katrin Ley is Head of Brand Strategy, Business Development and Women's Sport Business Unit Katrin Ley is Head of Brand Strategy, Business Development and Women's Sport Business Unit for the Reebok brand. Katrin is responsible for developing the brand strategy and process that delivers against Reebok’s mission and vision. She and her team oversee the areas of Strategic Planning, Consumer Insights and Licensing. Katrin also is in charge of the Business Unit Women’s Sport, driving the brand’s Women’s Sport business across product, brand marketing and the regions. Katrin reports directly to Reebok’s President and CEO. Katrin joined Reebok from the Boston Consulting Group (BCG) in 2007, where she led the adidas and Reebok integration effort as Project Manager. Katrin joined BCG in 2000 and prior to BCG she held roles at BMW Group, Daimler Chrysler and L’Oreal. In addition to working in both Germany and the U.S., Katrin has also worked in international capacities in France, Sweden and Argentina. A native of Germany, she currently resides in Massachusetts.
Head of Latin America As Head of Latin America, Charlie Maurath has overall responsibility for the adidas and Reebok subsidiaries and distributors in Latin America. Charlie has oversight for Latin America’s strategies and objectives to ensure longterm productivity, profitability and growth in each market in Latin America. Charlie was appointed to this position in November 2003 and added the Reebok business to his role in January 2009.
Charlie first joined adidas in 1990 and in that time has held various roles with increasing responsibility. From 1990 to 1994, Charlie served as Area Manager for Scandinavia and Latin America; from1994 to 1999, he was based in Bangkok as Managing Director for adidas Thailand; in 1999 he moved to Stockholm where he held the position of Managing Director, Sweden and transitioned to the role of Head of Area Nordic in 2000, a position he held until 2003. Prior to joining adidas, Charlie held positions with Eastman Kodak and Korf Stahl. Charlie has a degree in Business Economics from Fachhochschule fuer Wirtschaft, Pforzheim in Germany.
David Mischler, Head of Reebok Asia Pacific As head of Reebok Asia Pacific, David Mischler is responsible for the business management of Reebok’s Asia Pacific businesses including sales, operations, marketing and retail in the countries in the Asia Pacific geographic region including Japan, Korea, India, China, Hong Kong, Taiwan, Thailand, Singapore, Malaysia, Philippines, Indonesia, Australia, New Zealand and South Africa. David was appointed to this position in February, 2007. Prior to his appointment, David served as vice president, RIL Supply Chain, where he was responsible for overseeing forecasting, logistics, customs, inventory management and distribution for all RIL divisions including Reebok, Rockport, The Hockey Company and Greg Norman Collection. Appointed to this position in 2003, David managed an OPEX responsibility of approximately $75 million and was accountable for 12 direct reports and approximately 1,300 total full-time employees. David joined Reebok in 1986 after graduating from Westfield State College with a
degree in business management and accounting. He spent the first seven years of his career in the accounting/finance area working in a variety of positions that culminated in his position as director of finance, RTFE in Hong Kong. The next 10 years of David’s career involved a transition to the world of product creation, first with responsibility for product costing, materials development, and lab management, culminating in a four-year assignment in Asia as director of materials in Pusan, South Korea and then as country manager of Thailand. In 2001, Dave returned to the U.S. and was promoted to the position of vice president, footwear product development. His accountabilities included managing the development and engineering function for the entire Reebok footwear line as well as the research and technical teams. During this time, Reebok launched the successful Rbk division, including the successful “Above The Rim” basketball line, the “Premier” performance running line, and grew their Classics business more than 25%. David currently resides in Hong Kong with his wife and three children.
Matt O'Toole, Chief Marketing Officer, Reebok Brand Matt O’Toole is chief marketing officer for the Reebok brand. Appointed to this position in March 2008, Matt oversees the Reebok Global Marketing group, which includes global product, brand marketing and sports and trend marketing. In addition, Matt oversees the Reebok-CCM Hockey business. He reports directly to the President and CEO of Reebok International Ltd. Prior to assuming his current role, Matt was president of Reebok North America, the brand’s largest business unit. He was responsible for all of the region’s brand operations, including marketing, product merchandising, sales, finance, operations and owned retail stores. Matt has a long and successful track record in the sports industry. Before coming to Reebok’s Canton headquarters as president of Reebok North America, he was president and CEO of Reebok-CCM Hockey (formerly The Hockey Company) and Reebok Canada. At Reebok-CCM, he was responsible for creating the industry’s market leader through creative marketing, innovative products, strong customer relationships, and an unparalleled partnership with the National Hockey League and hockey’s top players. As president of Reebok Canada, Matt was responsible for the management of the Reebok brand’s business in Canada. In June 2004, Reebok International acquired The Hockey Company for $330 million and soon after, under Matt’s direction, launched a new line of innovative hockey products under the Rbk brand name. In 2005, Reebok Canada and The Hockey Company were integrated and Matt was chosen to head the combined company. In 2007, The Hockey Company became Reebok-CCM Hockey. Today, ninety-nine percent of all NHL players use at least one piece of Reebok-CCM Hockey equipment.
Matt is a 25-year veteran of the sporting goods industry. Prior to joining The Hockey Company, he served as vice-president of worldwide marketing and sales for the Tommy Armour / Odyssey Golf Company, a division of US Industries. Previously,
Matt spent ten years in marketing and sales management at Wilson Sporting Goods Company. John Warren, Chief Financial Officer and General Manager, Sports Licensed Division John Warren serves as Chief Financial Officer for the Reebok brand overseeing all financial operations for the Reebok brand worldwide. John was re-appointed to this position in March of 2009. John also holds the position of General Manager for the Sports Licensed Division (SLD). In this role, he oversees the dayto-day operations of SLD. John brings more than 20 years of proven success across a wide range of disciplines including finance, operations, sourcing, strategic planning, external reporting, and mergers, licensing and acquisitions. He brings valuable public accounting and global industry experience to Reebok. John originally held the CFO position for Reebok from 1998 to 2006 and also served as General Manager for Reebok Latin America from 2003 to 2005. Following the acquisition of Reebok by adidas, John transitioned to the role of Chief Operating Officer for the Sports Licensed Division. As Chief Operating Officer, he worked to leverage Reebok and adidas’ league relationships with the NFL, NHL and NBA. Prior to joining the Reebok brand, John spent three years at The Rockport Company, Inc., where he served as the Vice President of Finance and Corporate Controller. At Rockport, John was responsible for all financial matters including all strategic and business planning, financial reporting and business operations. Before his tenure at Rockport, John was the Chief Financial Officer for Matrix Technologies Corporation, a privately held manufacturer of liquid handling instruments for the medical industry. As CFO, he managed all financial and administrative matters for the corporation. In addition, John was responsible for banking and investor relations, foreign exchange risk management, cash management, tax reporting, human resources, customer service and facility management. He served
on the company’s Board of Directors until its sale in 1999. John began his career at Ernst and Young, serving as Senior Manager during his10year tenure. As a member of the Entrepreneurial Services Group, John specialized in serving privately held and emerging businesses. His experiences include SEC reporting and filing requirements, public equity offerings, financial modeling and acquisition due diligence. John is a cum laude graduate of Boston College, where he received his B.S. in Accounting in 1982.
The term "marketing mix" was first used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is explained in most marketing textbooks and classes. Four P's Elements of the marketing mix are often referred to as 'the four Ps':
Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategy to differentiate from its competitors.
Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers. It depends upon the perception of customers.
Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above).
Extended Marketing Mix (3 Ps) Now a days three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix.
People: All people involved with consumption of a service are important. For example workers, management, consumers etc Process: Procedure, mechanism and flow of activities by which services are used. Physical Evidence: The environment in which the service or product is delivered, tangible are the one which helps to communicate and intangible is the knowledge of the people around us.
Four Cs（1）in 7Cs compass model This system is basically the four Ps  renamed and reworded to provide a customer focus. The four Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model (product, price, place, promotion) of marketing management.The Four Cs model is more consumer-oriented and attempts to better fit the movement from mass marketing to symbiotic marketing. 1. Commodity:(Original meaning of Latin: Commodus=convenient)the product for the consumers or citizens.a commodity can also be described as an raw material such as; oil,metal ores and wheat, the price of these tend to change on a daily basis, due to the demand and supply of these commodities. 2. Cost:(Original meaning of Latin: Constare= It makes sacrifices)producing cost, selling cost, purchasing cost and social cost. 3. Channel:(Original meaning is a Canal)Flow of commodity : marketing channels. 4. Communication:(Original meaning of Latin:Communio=sharing of meaning) marketing communication : It doesn't promote the sales. (Framework of ７ Cs compass model)
(C1): Corporation and competitor : The core of 4Cs is corporation and organization, while the core of 4Ps is customers who are the targets for attacks or defenses.
(C2) : Commodity, (C3) : Cost, (C4) : Channel, (C5) : Communication (C6) : Consumer (Needle of compass to Consumer)
The factors related to customers ja i think so too can be explained by the first character of four directions marked on the compass model: N = Needs, W = Wants, S = Security and E = Education (consumer education).
(C7) : Circumstances (Needle of compass to Circumstances )
In addition to the customer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model --- N = National and International C, W=Weather, S = Social and Cultural C, E = Economic (Circumstances). Four Cs（2） Robert F. Lauterborn proposed a four Cs(2) classification in 1993. The Four Cs model is more consumer-oriented and attempts to better fit the movement from mass marketing to niche marketing. The Product part of the Four Ps model is replaced by Consumer or Consumer Models, shifting the focus to satisfying the consumer needs. Another C replacement for Product is Capable. By defining offerings as individual capabilities that when combined and focused to a specific industry, creates a custom solution rather than pigeon-holing a customer into a product. Pricing is replaced by Cost reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer's cost to change or implement the new product or service and the customer's cost for not selecting a competitor's product or service. Placement is replaced by Convenience. With the rise of internet and hybrid models of purchasing, Place is becoming less relevant. Convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors. Finally, the Promotions feature is replaced by Communication which represents a broader focus than simply Promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. the four Ps are (product, promotion, price, place)
UNIQUE SELLING PROPOSITION
To best position your practice, you need to develop a powerful and compelling unique selling proposition (USP). What is a USP? A unique selling proposition is a proposition that competitors cannot make or have not made.
• • • • • Understand the Marketing Place, Needs, Wants & Demand Designing a Customer Driven Strategies Prepare a Marketing Plan Building Customer Relationship Capture value from customers in return
1. Designing a Customer Driven Marketing Strategy:
• Their main strategy that they still follow today is the diversification of products they offer. • According to customer’s demand they make their strategies by keeping following points in mind; • Which customer they will serve?
Which customer they will serve?
They serve their customers on the bases of income level, age through market segmentation. Their main segment which they has captured are combination of higher incomes & dual career families.
How will they serve these customers?
They fulfill their customer’s demand through;
Value proposition Positioning Unique selling proposition (USP)
3. CAPTURE VALUE FROM CUSTOMER IN RETURN:
• Committed to providing uncompromising product quality offering customers the highest value for money & giving service that is warm, friendly & personal. • They also follow social factors to maintain their image through corporate social responsibility.
4. Designing a Customer Driven Marketing Strategy:
• Their main strategy that they still follow today is the diversification of products they offer. • According to customer’s demand they make their strategies by keeping following points in mind;
Although some marketers[who?] have added other Ps, such as personnel and packaging, the fundamentals of marketing typically identifies the four Ps of the marketing mix as referring to: Product -An object or a service that is mass produced or manufactured on a large scale with a specific volume of units. A typical example of a mass produced service is the hotel industry. A less obvious but ubiquitous mass produced service is a computer operating system. Typical examples of a mass produced objects are the motor car and the disposable razor. Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales
staff often plays an important role in word of mouth and Public Relations (see Product above). Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By offering the product with the right combination of the four Ps marketers can improve their results and marketing effectiveness. Making small changes in the marketing mix is typically considered to be a tactical change. Making large changes in any of the four Ps can be considered strategic. For example, a large change in the price, say from $19.00 to $39.00 would be considered a strategic change in the position of the product. However a change of $131 to $130.99 would be considered a tactical change, potentially related to a promotional offer.
Financial Statement: Finance is defined as the provision of money when it is required. Every enterprise needs finance to start and carry out its operation. Finance is the lifeblood of an organization. So, finance should be managed effectively. Financial statements are prepared primarily for decision making. Financial Statement Analysis refers to the process of determining financial strength and weakness of the firm by properly establishing strategic relationship between the items of the balance sheet and profit and loss account. There are various methods and techniques used in analyzing financial statements, such as comparative statements, trend analysis, common size statements, schedule of changes in working capital, funds flow and cash flow analysis, cost volume profit analysis and ratio analysis and other operative data. The analysis of financial statement is used for decision making by various parties. MEANING AND CONCEPT OF FINANCIAL ANALYSIS:The term ‘financial analysis’ , also known as analysis and interpretation of financial statements’, refers to the process of determining financial strengths and weakness of the firm by establishing strategic relationship between the items of the balance sheet, profit and loss account and opposite data.”Analysing financial statements,” according to Metcalf and Titard, “is a process of evaluating the relationship between component parts of a financial statements to obtain a better understanding of a firm’s position and performance”. In the words of Myers, “Financial statement analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set-of statement, and a study of the trend of these factors as shown in a series of statements.” The purpose of financial analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the firm. Just like a doctor examines his patient by recording his body temperature, blood pressure, etc. before making his conclusion regarding the illness and before giving his treatment, a financial analyst analysis the financial statements with various tools of analysis before commenting upon the financial health or weaknesses of an enterprise. The analysis and interpretation of financial statements is essential to bring out the
mystery behind the figures in financial statements. Financial statements analysis is an attempt to determine the significance and meaning of the financial statement data so that forecast may be made of the future earnings, ability to pay interest and debt maturities (both current and long-term) and profitability of a sound dividend policy. The term ‘financial statement analysis’ includes both ‘analysis’, and ‘interpretation’. A distinction should, therefore, be made between the two terms. While the term ‘analysis’ is used to mean the simplification of financial data by methodical classification of the data given in the financial statements, ‘interpretation’ means, ‘explaining the meaning and significance of the data so simplified.’ However, both ‘analysis and interpretation’ are interlinked and complimentary to each other Analysis is useless without interpretation and interpretation without analysis is difficult or even impossible. Most of the authors have used the term ‘analysis’ only to cover the meaning both analysis and interpretation as the objective of analysis is to study the relationship between various items of financial statements by interpretation. We have also used the terms ‘Financial statement Analysis’ or simply ‘Financial Analysis’ to cover the meaning of both analysis and interpretation. Objective and Importance of Financial Statements Analysis: The primary objective of financial statements analysis is to understand and diagnose the information contained in financial statement with a view to judge the profitability financial soundness of the firm, and to make forecast about future prospects of the firm. The purpose of analysis depends upon the person interested in such analysis and his object. However, the following purposes or objectives of financial statements analysis may be stated to bring out significance of such analysis : 1. To assess the earning capacity or profitability of the firm. 2. To assess the operational efficiency and managerial effectiveness. 3. To assess the short term as well as long term solvency of the firm. 4. To identify the reasons for change in profitability and financial position of the firm. 5. To make inter-firm comparisons. 6. To make forecasts about future prospects of the firm.
7. To assess the progress of the firm over a period of time. 8. To help in decision making and control. 9. To guide or determine the dividend action. 10. To provide important information for granting credit. 3.4-Types of Financial Analysis: We can classify various types of financial analysis into different categories depending upon: 1. On the basis of material used, 2. On the basis of modus operandi, 3. On the basis of entities used, 4. On the basis of time horizon.
1. On the basis of Material Used: According to material used, financial analysis can be two types a. EXTERNAL ANALYSIS b. INTERNAL ANALYSIS
a. EXTERNAL ANALYSIS: This analysis is done by outsiders who do not have access to the detailed internal accounting records of the business firm. These outsiders include investors, potential investors, creditors, potential creditors, credit agencies, government agencies and general public. For financial analysis, thus serves only a limited purpose. However, the recent changes in the government regulations requiring business firms to make available more detailed information to the public through audited published accounts have considerably improved the position of the external analysis. b. INTERNAL ANALYSIS: This analysis is done by persons who have access who have access to the detailed internal accounting records of the business firm is known as internal analysis. Such an analysis can, therefore, be performed by executives and employees of the employees of the organization as well as government agencies which have statutory powers vested in them. Financial analysis for managerial purposes is the internal type of analysis that can be effected depending upon the purpose to be achieved. 2. On the basis of Modus Operandi: According to the method of operation followed in the analysis can be two types (a) Horizontal Analysis (b) Vertical Analysis (a) Horizontal Analysis: It refers to the comparison of financial data of a company for several years. The figures of this type of analysis are presented horizontally over a number of columns. The figures of the various years are compared with standard or base year. A base year is a year chosen as beginning point. It is also called “Dynamic Analysis”. This analysis makes it possible to focus attention on items that have changed significantly during the period under review. Comparative statements and trend percentages are two tools employed in horizontal analysis. (b)Vertical Analysis: It refers to the study of relationship of the various items in the financial statements of one accounting period. In this type of analysis the figures from financial
statements of a year are compared with a base year selected from the same year’s statement. . It is also called “Static Analysis”. Common size financial statements and financial ratios are the two tools employed in vertical analysis. Since vertical analysis considers data for one time period only, it is not vary conducive to a proper analysis financial statements. However, it may be used along with horizontal analysis to make it more effective and meaningful.
3. On the basis of entities involved: According to the method of operation followed in the analysis can be two types (a)Inter-firm or Cross Sectional Analysis (b) Intra-firm or Time Series Analysis (a)Inter-firm or Cross Sectional Analysis: Cross sectional analysis involves comparison of financial data of a firm with other firms (competitors) or industry averages for the same time period. (b)Intra-firm or Time Series Analysis: Time series analysis involves the study of performance of the same firm over a period of time. 4. On the basis of time horizon: According to the method of operation followed in the analysis can be two types (a)Short term Analysis (b) Long term Analysis (a)Short term Analysis: Short term analysis measures the liquidity position of a firm, i.e. short term paying capacity of a firm or the firm’s ability to meet the current obligations. (b)Long term Analysis: Long term analysis involves the of the firm’s ability to meet the interest costs and repayment schedules of its long term obligations. The solvency, stability and profitability are measured under this type of analysis.
Procedure of Financial Statements Analysis:
Broadly speaking there are three steps involved in the analysis of financial statements. These are (i) Selection (ii) Classification (iii) Interpretation
The first step involves selection of information (data) relevant to the purpose of analysis of financial statements. The second step involved is the methodical classification of the data and the third step includes drawing of inferences and conclusions. The following procedure is adopted for the analysis and interpretation of financial statements. 1. The analyst should acquaint himself with principles and postulates of accounting. He should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. 2. The extent of analysis should be determined so that the sphere of work may be decided. If the aim is to find out the earning capacity of the enterprise then analysis of income statement will be undertaken. On the other hand, if the financial position is to be studied then balance sheet analysis will be necessary. 3. The financial data given in the statements should be re-organised and rearranged. It will involve the grouping of similar data under same heads, breaking down of individual components of statements according to nature. The data is reduced to a standard form. 4. A relationship is established among financial statements with the help of tools and techniques of analysis such as ratios, trends, common size, funds flow etc. 5. The information is interpreted in a simple and understandable way. The significance and utility of financial data is explained for helping decisiontaking.
6. The conclusions drawn from interpretation are presented to the management in the form of reports
Methods or Devices of Financial Analysis:
A Number of methods or devices are used to study the relationship between different statements. The following methods of analysis are generally used: i. Comparative statements ii. Trend analysis iii. Common –size statements iv. Funds flow analysis v. Cash flow analysis vi. Ratio analysis vii. Cost-volume-profit analysis In this project the Comparative Statement and Ratio Analysis is used to study the financial statement of Orissa State Co-operative Bank Ltd.
The comparative financial statements are statements of the financial position at different periods of time. The elements of financial position are shown in a comparative form so as to give an idea of financial position at two or more periods. Any statement prepared in a comparative form will be covered in comparative statements. From practical point of view generally, two financial statements 1. Balance Sheet 2. Income Statement
Comparative balance sheet
The comparative balance sheet analysis is the study of the trend of the same items, group of items and computed items, group of items and computed items in two
or more balance sheets of the same business enterprise on different dates. The changes in periodic balance sheet items reflect the conduct of a business. The changes can be observed by comparison of the balance sheet at the beginning and at the end of a period and these changes can help in forming an opinion about the progress of an enterprise. The comparative balance sheet has two columns for the data of original balance sheets. A third column is used to show this increase in figures. The fourth column may be added for giving percentage of increases and decreases.
Guidelines for Interpretation of Comparative Balance Sheet:
While interpreting comparative balance sheet the interpreter is expected to study the following aspects: 1. Current Financial Position and Liquidity Position 2. Long term Financial Position 3. Profitability of the Concern 1. For studying the Financial Position and short term Financial Position of a concern, one sees the working capital in both the years. The excess of current assets over current liabilities will give the figure of working capital. The increase in working capital means improvement in the current financial position of the business. An increase in current assets accompanied by the increase in current liabilities of the same amount will not show any improvement in short term financial position. One should study the increase or decrease in current assets and current liabilities and this will enable him to analyse the current financial position. The second aspect which should be studied in current financial position is the liquidity position of the concern. If liquid assets like cash in hand, cash at bank, bills receivable, debtors, etc. show an increase in the second year over the first year, this will improve the liquidity position of the concern. The increase in inventory can be on account of accumulation of stocks for want of customers, decrease in demand or inadequate sales promotion efforts. An increase in inventory may increase working capital of the business but it will not be good for business.
2. The long term financial position of the concern can be analysed by studying the changes in fixed assets, long term liabilities and capital. The proper financial policy of concern will be to finance fixed assets by the issue of either long-term securities such as debentures, bonds, loans from financial institutions or issue of fresh share capital. An increase in fixed assets should be compared to the increase in long term loans and capital. If the increase in fixed assets is more than the long term securities then parts of fixed assets have not only been financed from long term sources. A wise policy will be to finance fixed assets by raising long term funds. 3. The new aspects to be studied in a comparative balance sheet questions is the profitability of the concern. The study of increase or decrease in retained earnings, various resources and surpluses, etc. will enable the interpreter to see whether the profitability has improved or not. An increase in the balance of profit and loss account and the other resources created from profits will mean an increase in profitability to the concern. The decrease in such accounts may mean issue dividend, issue of bonus share or deterioration in profitability of the concern. 4. After studying various assets and liabilities an opinion should be formed about the financial position of the concern. One cannot say if short term financial position is good then long term financial position will also be good or vice versa. A concluding word about the overall financial position must be given at the end.
Comparative Income Statement:
The income statement gives the results of the operation of a business. The comparative income statement gives an idea of the progress of a business over a period of time. The changes in absolute data in money values and percentages can be determined to analyse the profitability of the business. Like comparative balance sheet income statement also has four columns. First two columns give figures of various items for two years. Third and fourth columns are used to show increase or decrease in figures in absolute amounts and percentages respectively.
Guidelines for Interpretation of Comparative Income Statement:
The analysis and interpretation of income statement will involve the following steps: 1. The increase or decrease in sales should be compared with the increase or decrease in costs of goods sold. An increase in sales will not always mean an increase in profit. The profitability will improve if increase in sales is more than increase in costs of goods sold. The amount of gross profit should be studied in the first step. 2. The second step of analysis should be the operational profits. The operating expenses such as office and administrative expenses, selling and distribution expenses should be deducted from gross profit to find out operating profits. An increase in operating profit will result from the increase in sales position and control of operating expenses. A decrease in operating profit may be due to an increase in operating expenses or decrease in sales. The change in individual expenses should also be studied. Some expenses may increase due to the expansion of business activities while others may go up due to managerial inefficiency. 3. The increase or decrease in net profit will give an idea about the overall profitability of the concern. Non operating expenses such as interest paid, losses from sales of assets, writing off deferred expenses, payment of tax, etc. decrease the figure of operating profit. When all non-operating expenses are deducted from operational profit, we get a figure of net profit. Some non operating incomes may also be there which will increase net profit. An increase in net profit will gave us an idea about the progress of the concern. 4. An opinion should be formed about profitability of the concern and it should be given at the end. It should be mentioned whether the overall profitability of the concern is good or not.
Focus of Financial Statement Analysis:
Financial statement analysis involves evaluating different aspects of a business enterprise, which are of great importance to different users such as management,
investors, creditors, bankers, analyst, investment advisers, etc. generally, the following analyses are made while making Financial Statement Analysis. 1. Liquidity or short term solvency analysis 2. Profitability analysis 3. Capital structure or gearing analysis 4. Market strength or investor analysis 5. Growth and stability analysis
Application of Financial Analysis:
Following are the application of financial analysis: 1. Assessing Corporate Excellence 2. Judging credit worthiness 3. Forecasting bankruptcy 4. Valuing equity shares 5. Predicting bonds ratings 6. Estimating market risk
Limitations of Financial Statement Analysis:
Financial analysis is a powerful mechanism of determining financial strengths and weakness of a firm. But, the analysis is based on the information available in the financial statements. Thus, the financial analysis suffers from serious inherent limitations of financial statements. The financial analyst has also be careful about the impact of price level changes, windows dressing of financial statements, changes in the accounting policies of a firm, accounting concepts and conventions, and personal judgement, etc. The readers are advised to relate the limitations of financial statements as given in the previous chapter and also the limitations of ratios as a tool of financial analysis as discussed in Ratio Analysis. Some of the important limitations of financial analysis are, however, summed up as below: i. It is only a study of interim reports. ii. Financial analysis is based upon only monetary information and non-monetary factors are ignored. iii. It does not consider changes in price levels.
iv. As the financial statements are prepared on the basis of a going concern, it does not give exact position. Thus accounting concepts and conventions cause a serious limitation to financial analysis. v. Changes in accounting procedure by a firm may often make financial analysis misleading. vi. Analysis is only a means and not an end in itself. The analyst has to make interpretation and draw his own conclusions. Different people may interpret the same analysis in different ways.
Overview of Ratio Analysis
Introduction: Ratio analysis is one of the techniques used to analyse the financial statements. It is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios (quantitative relationship between figures and group of figures). Through ratio analysis financial statement can analyse more clearly and decision made from such analysis. According to Accountant’s Handbook by Wixon Kell and Bedford, a ratio “is an expression, of the quantitative relationship between the numbers”. Nature of Ratio Analysis: Ratio analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decision. However, ratio analysis is not an end in itself. It is only a means of better understanding of financial strength and weaknesses of affirm. Calculation of mere ratios does not serve any purpose, unless several appropriate ratio are analysed and interpreted. There are a number of ratios which can be calculated from the information given in the financial statements, but the analyst select the appropriate data and calculate only a few appropriate ratios from the same keeping in mind the objective of analysis. The ratios may be used as a symptom like blood pressure, the pulse rate or the body temperature and their interpretation depends upon the caliber and competence of the analyst. The following are the four steps involved in the ratio analysis: i. Selection of relevant data from the financial statements depending upon the objective of the analysis.
Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratio of some other firms or the comparison with ratios of the industry to which the firm belongs.
Interpretation of the ratios.
Use and Significance of Ratio Analysis: Helpful in decision making. Helpful in financial forecasting and planning. Helpful in communication. Helpful in co-ordination. Helpful in Control. Helpful in efficiency appraisal. Helpful in evaluation of financial position. Helpful to investors, financial institution, employee.
Limitations of Ratio Analysis: The ratio analysis is one of the most powerful tools of financial management. Though ratios are simple to calculate and easy to understand, they suffer from some serious limitations: 1. Limited Use of Single Ratio. A single ratio, usually, does not convey much of a sense. To make a better interpretation a number of ratios have to be calculated which is likely to confuse the analyst than help him ion making any meaningful conclusion.
2. Lack of Adequate Standards. There are no well adapted standards or rules of thumb for all ratios which can be accepted as norms. It renders interpretation of the ratios difficult. 3. Inherent Limitations of Accounting. Like financial statements, ratios also suffer from the inherent weakness of accounting records such as their historical nature. Ratios of the past are not necessarily true indicators of the future. 4. Change of Accounting Procedure. Change in accounting procedure by a firm often makes ratio analysis misleading. e.g; a change in the valuation of methods of inventories, from FIFO to LIFO increases the cost of sales and reduces considerably the value of closing stocks which makes stock turnover ratio to be lucrative and an unfavourable gross profit ratio. 5. Window Dressing. Financial statements can easily be window dressed to present a better picture of its financial and profitability position to outsiders. Hence, one has to be very careful in making a decision from ratios calculated from such financial statements. But it may be very difficult for an outsider to know about the window dressing made by a firm. 6. Personal Bias. Ratio are only means of financial analysis and not an end in itself. Ratios have to be interpreted and different people may interpret the same ratio in different ways. 7. Incomparable. Not only industries differ in their nature but also the firms of the similar business widely differ in their size and accounting procedures, etc. It makes comparison of difficult and misleading. Moreover comparisons are made difficult due to differences in definitions of various financial terms used in the ratio analysis. 8. Absolute Figures Distortive. Ratios devoid of absolute figures may prove distortive as ratio analysis is primarily a quantitative analysis and not a qualitative analysis. 9. Price Level Changes. While making ratio analysis, no consideration is made to the changes in price levels and this makes the interpretation of ratio invalid.
10. Ratios no Substitutes. Ratio analysis is merely a tool of financial statements. Hence, ratios become useless if separated from the statements from which they are computed. 11. Clues not Conclusions. Ratios provide only clues to analysts and not final conclusions. These ratios have to be interpreted by these experts and there are no standard rules for interpretation. Classification of Ratios: The use of ratio analysis is not confined to financial manager only. There are different parties interested in the ratio analysis for knowing the financial position of a firm for different purposes. In view of various users of ratios, there are many types of ratios which can be calculated from the information given in the financial statements. The particular purpose of the user determines the ratios that might be used for financial analysis. Functional Classification in View of Financial Management or Classification According to Tests: Liquidity Ratios:
(A) . 1. Current Ratio 2. Liquid Ratio 3. Cash Ratio 4. Interval Measure (B) . 1. Debtors Turnover Ratio 2. Creditors Turnover Ratio 3. Inventory Turnover Ratio
Long-term solvency and Leverage Ratios:
1. Debt/Equity Ratio 2. Debt to total capital Ratio 3. Invest Coverage 4. Cash Flow/Debt 5. Capital Gearing
Activity Ratios or Asset Management Ratios:
1. Inventory Turnover Ratio 2. Debtors Turnover 3. Fixed Assets Turnover Ratio 4. Total Assets Turnover Ratio 5. Working Capital Turnover Ratio 6. Payables Turnover Ratio 7. Capital Employed Turnover
Profitability Ratio: (A) In relation to Sales
1. Gross Profit Ratio 2. Operating Ratio 3. Operating Profit Ratio 4. Net Profit Ratio 5. Expense Ratio
(B) In relation to investments
1. Return on investments 2. Return on capital
3. Return on Equity Capital 4. Return on Total Resources 5. Earnings per share 6. Price-Earning Ratio
HR POLICIES & STRATEGIES
Prior to 1979 bank conducted recruitment on its own for personnel in subordinate clerical and officer cadres including specialist officers. the government evolved recruitment scheme for public sector in1978 and for its implementation, 7 banking service recruitment boards were created which were further increased to 15. The recruitment of subordinate staff continued to be done by the bank itself. bank is now required to frame its own policy having regard to guidelines issued by the govt of india. the document consists of two parts. part 1 lays down the policy and part 2 lays down the procedure for the policy.
RECURITMENT POLICY OBJECTIVES: • • To ensure that right persons are recruited at the right time as per the requirement of bank from time to time in cost effective manner To ensure that selection process is fair, just, objective and unbiased in all aspects to provide equal opportunities to all eligible candidates, including the candidates with rural backgrou8nd and / or weaker section of society. To ensure the reservation in appointment is uniformly implemented in accordance with the norms laid down by the govt of India from time to time in respect of the reserved for sc/st obc ex-servicemen, disabled etc.
MODES OF RECURITMENT
1. CAMPUS RECURITMENT - depending on officer requirement, bank recruits from universities, professional institutes etc. The upper age limit for recruitment of officers through campus recruitment is same as in case of officer grade posts i.e not below 21 years and not above 30 years. 2. RECURITMENT OF OUSTANDING PERSONS – recruited in accordance with the scheme for recruitment as approved by the board of directors. 3. CONTRACTUAL RECURITMENT – experts and specialists are recruited on contract basis for maximum period not exceeding 3 years. it may be in the area of marketing, it, hrd, legal security, civil, engineer, architecting etc. the terms and conditions approved by board, before engagement.
Medical examination new recruiters irrespective of cadre are required to submit medical certificate of fitness issued by a medical officer not below the rank of civil surgeon of district hospital or by bank’s medical officer. physically handicapped also have to furnish the nature and extent of disability. Post Appointment Training • • • post appointment training is compulsorily imparted to all new appointees in clerical cadre at the respective training centers. management trainees in scale i undergo training from time to time for the period of one year. technical officers are given induction training either at central staff college or at respective training centers.
RECURITMENT PROCEDURE STEP 1 ASSESSMENT OF VACANCIES
Assessment of vacancies is undertaken on annual basis. it is completed by the end of august every year by each zone. Following have to be taken into considerations: 1. 2. 3. 4. 5. retirement of each cadre The vacancies arising on account of internal promotions. Vacancies because of inter state transfers. Vacancies on account of business expansion. Vacancies arising on account of natural separation as death, resignations etc. 6. Net vacancies are determined after proper adjustment of an available staff. All vacancies are by direct recruitment except campus recruitment. these are filled up through open advertisement. the advertisement must contain number of vacancies, the minimum education qualification prescribed for the posts, age limit, percentage of reservation, application fees, test center, date of written examination last date of filling the application etc. Additional 14 days time is given for receipt of applications for candidates staying abroad and living in indian islands as andaman and nicobar or lakshvadeep or regions like ladakh, northern eastern region, lahaul, spiti. the advertisement is first given in employment news and then in leading newspaper.
CONDUCT OF EXAMINATION
Pre- examination activities • • • • • • • • receiving applications processing of applications allotment of roll numbers and printing of call letters Making arrangements for conducting the examination at different locations like hiring venues, appointing testing personnel. dispatch of call letters Developing suitable selection tools i.e. objectives and descriptive test, answer sheets etc. Printing and packing of test material separately for each venue. Making arrangement for dispatch of test material to the test venues.
• • • •
Making arrangements for auditing and evaluating the posts examination test material. Short-listing candidates on the basis of the performance on these tests. Making arrangements for conducting interviews. Finalization of selection list.
STEP 3 CALL LETTERS After the date of test and venues are finalized, the roll numbers of the candidates are allotted and call letters will be issued as per the specimen. EXAMINATION PATTERN The written to be conducted consists of five types of test, which are as follow. 1. 2. 3. 4. 5. STEP 4 test of general awareness (toga) –it consist of 50 marks test of reasoning ability (tora) - it consist of 75 marks test of quantitative aptitude (toqa)- it consists of 50 marks test of English language (toel) – it consists of 50 marks descriptive test – one have to attempt 3 question out of 4 SKILL TEST
For specialized position in clerical cadre such as typist, stenographer telephone operators etc skill test will be conducted only for those candidates who qualify in the objective as well as descriptive papers (d.p)
The candidate who qualify in objective and descriptive papers and skill test also are sufficiently high in rank will be called for personal interviews conducted by the bank or any other agency specified by the bank through panel. The characteristics assessed through written test and personal interviews are as COGNITIVE CHARACTERISTICS PERSONALITY CHARACTERISTICS 1. Ability to learn new task Motivation and task involvement 2. Numeric computation, and quantitative Concerns for others skill, arithmetic reasoning. 3. Perceptual speed and accuracy Courteous and pleasant behavior i.e. warmth, friendliness, cooperative attitude. 4. Proficiency in English Self confidence and temperament (a) comprehension of general information in English (b) Ability to correspond in English 6. Analytical and conceptual skills Inter-personal competency / working in groups
Pre- recruitment training is imparted to applicants belonging to sc/st and minority categories. the training is given to familiarize, the applicants with the test in the written examination. pre- recruitment training for a minimum period of 6 days duration has to be arranged. the training is free of cost but the trainees have to make their own arrangements for stay and to meet their expenses. TRAINING AND DEVELOPMENT Assessment of the training needs of the PNB Preparation of the Training plan.
Facilities Manager Training Delivery Manager Training Design manager
ORGANIZATION CHART FOR A TRAINING DEPARTMENT Assessment of the training needs of Punjab national bank PNB doesn’t view the training in isolation but integrates the training function within the overall functions of selection, career path, performance appraisal and overall development of the human resources. The objective of the training part apart from up gradation of the knowledge and the skills of the employees is also to improve the aggregate corporate performance and for this achievement, the training has to be related to performance of various jobs in functional and managerial areas. a) In order to assess the training needs of the staff working in the bank, there is a system of maintenance of inventory cards at regional as well as zonal office level. While submitting their performance form, the officer staff indicates the Ares in which they need training as to improve their skills and perform the job better. The appraising authority and the reviewing authority are required to take a note of this feedback from the staff and the inventory cards are being maintained at regional/zonal offices are required to be upgraded and keep up to date, keeping in view the training need mentioned by the staff. b) For identifying the training needs, the branch manager should submit the information on annual basis to the regional office on or before 31st December every year, the same should be consolidated at regional office for the whole region and submitted to the zonal office on or before 10th of January every year. c) The inventory cards keep a record of the training provided to an employee from time to time and whenever decisions are taken for the nominations of the participants, these cards are kept in view so as to provide the appropriate training to the employees keeping in view his self opinion, present assignments been handled and career path. d) Zonal training coordinator should frequently interact with the principal/training manager of the training canter/college looking after the training requirements. Regional managers and other senior officials visit the branches quarterly to make a point to interact with the staff members and assessment of the training requirement is one of the areas, which are discussed to bring all around improvement in the working of the branch.
No of No. of No. of No. of No. of Total Level of Training Channels Courses Faculties officers no. Of Training centers trained Officers in 199798 PSU 135 220 7463 613 96699 160595 Up to Banks scale IV SBI 17 42 1014 144 20623 80510 Up to &associates scale IV Private 23 34 567 66 7656 14772 Up to Sector scale IV banks Total 175 296 9044 823 124978 255877 Source: Report of the committee to review the activities and future direction of BTC-vision 2005, RBI may 1999.
TRAINING FACILITIES AVAILABLE FOR OFICERS
PREPARATION OF THE TRAINING PLAN
While preparing the training plan, the budget of the center/college, overall as well as sub- category wise, should also be kept in view and training programs for different cadres of employees should be prepared in such a manner that no particular cadre is given more importance at the cost of others and an attempt is made to cover the training needs of all cadres of employees and maximize the number of programmers/participants so as to reach a large number of employees and giving training to them. Basic Scheme of a planned Training Process
The Human Resources
Improved human Resource
The Business Unit
High Degree of Business Effectiveness
INSTRUCTIONAL DESIGN OF TRAINING PROGRAMME IN PNB
The programme coordinator while designing the programme schedule should notice following points: a. The objective of the programme should be clearly spelt out. Not only it should be mentioned in the programme schedule but it must be made clear to participants also. b. The level of the participants, their existing knowledge, skills and experience should be kept in mind before finalizing the programme schedule to know from what level of knowledge the trainer should concentrate and carry the participants with him trill every aspect of the subject is cleared. c. Training can be very interesting, enriching experience if the faculty provides variety, mixing practical with theory sessions, quoting from personnel experiences and allowing time for discussion and absorption. d. Adequate time should be available for doing justice to all the subjects. e. Flexibility in the design of the [programme would ensure that participants do not have to learn those aspects which they already know and whenever such situation is faced by the faculty, either the level of discussion may be increased or subject may be changed. f. An Inbuilt feedback system to facilitate revision, if any, desired by the participants during the course of the programmed may be planned and some cushion periods should be provided. g. The programme coordinator should prepare brief synopsis of each topic to be covered during the programme in case the standardized synopsis are not available and he may revise or improve the standardized synopsis also in the light of latest developments and requirements.
DEFINING FOCUS & OBJECTIVE OF PROGRAMME: Defining the focus and the objective of the programme is very important of designing programme. In fact defining focus and objective, target group is also important.
Objective of any training programme is very strongly related to training needs of the organization & corporate expectations from the training system. Some of the usual objectives are: a. Developing of skills (if not existing earlier) b. Sharpening of skills (if existent but need is there to provide cutting edge) c. Building up a cadre of a trained person. d. Creating awareness e. Improving proficiency (to improve efficiency and speed of handling transactions) f. Exposing (to new developments, environment) g. Upgrading of skills (like training participants from branch small/SSI loans to handle large borrower accounts). Identify Training needs
Chalk out the detailed Training Time Schedule
Identify and nominate the Trainee
Identify and correctly select the right training program
Conduct the training
Report training costs Costs benefit analysis of the entire training exercise
Training Process in Action
DEVELOPMENT OF TRAINING While developing the programme schedule, following aspects should be kept in
mind: a) Total number of working days and sessions available for the training course. b) The entire area/subject should be spread out/ planned over the entire period of the programme c) Specific topics should be laid out in a logical, sequential and succession form so as to enhance comprehension and assimilation d) If the training schedule is of long duration or involving various phases or modules, a tentative programme schedule should be prepared for the entire period but detailed and specific programme should be prepared for each week/fortnight/phase or module well in advance. e) Normally a full training consists of 5 sessions of minimum 70 minutes each at training center/college with 3 sessions before launch and 2 sessions after lunch. Enough caution/flexibility should be built up in the programme schedule to allow scope for increasing sessions on existing proposed topics, adding new topics, undertaking more exercises
Concept of Welfare Schemes Meaning and Definition
Welfare means faring or doing well. It is a comprehensive term, and refers to the physical, mental, moral and emotional well being of an individual. Further, the term welfare is a relative concept, relative in the time and space. It, therefore, varies from time to time, from region to region and from country to country. Reported the Royal Commission on labour “Labour welfare is a term which must necessarily be elastic, bearing a somewhat different interpretation in one country from another, according to the different social customs, the degree of industrialization and educational level of the workers.”
Types of Welfare Activities
Welfare activities could be classified into two broad categories: A. On the basis of nature welfare activities are as follows 1. Economic 2. Recreational 3. Facilitative B. On the basis of location of welfare activities these are 1. Welfare measures inside the workplace; and 2. 3. On the basis of nature, welfare activities are explained here as under 1) Economic services - These propose to provide some additional economic security over and above wages or salaries like pension, life assurance, credit facilities etc. establishing a proper pension programme will reduce dissatisfaction in the area of economic security. Pension is a kind of deferred payment to meet the needs of the employees in their old age. Welfare measures outside the workplace.
Office employees often are in need of money for purchase of cycle, scooter, radio, sewing machine, fan etc to raise their standard of living. To meet their requirements the employer may advance them the money, which is paid back by the employees in the form of monthly installments to be deducted from their salaries.
2) Recreational services - Office employees are in need of occasional diversion
because their attitude improves when the routine of everyday living is broken occasionally. The management may provide for indoor games like table tennis in the common for employees. Also provide reading rooms, libraries, radios, etc for the recreation of the employees. 3) Facilitative services - These are the conveniences, which the employees ordinarily require like: a) Provision for canteen, shelter, rest rooms and lunchrooms: Eating is naturally a very important thing for an employee to keep his heath improves his efficiency in working. Unless proper facilities for food, tea, and rest rooms are available, health and consequential efficiency of the workers will go down. b) c) Housing facilities: Some organizations construct quarters for their employees Medical facilities: Health is one of the foremost things for the employees and and provide the same either free or at a nominal rent. it is but natural that there may be injuries because of accidents while working. So aid facilities must be provided for with in the office premises. In addition medical scheme is generally in operation under which reimbursement of medical expenses actually incurred is allowed. d) Washing facilities: the legal requirement as per Factories Act cater for providing wash basins and washing facilities to be conveniently accessible to all workers which should be clean, properly separated for the use of male and female employees. e) Leave travel concession: many organizations reimburse actual fares incurred by an employee in undertaking a journey along with his wife and minor children once during a number of years. f) Educational facilities: educational facilities may be provided by the organization to the employee’s children by starting schools up to the secondary stage.
Welfare activities on the basis of location are as given below
1. A. a) b) Welfare measures inside the workplace Conditions of the work environment: Neighborhood safety and cleanliness; attention to approaches. Housekeeping; up keeping of premises-compound wall, lawns, gardens, and so forth, egress and ingress, passages and doors; white-washing walls and floor maintenance. c) d) e) f) breaks. g) Workmen’s safety measures, that is, maintenance of machines and tools, fencing of machines, providing guards, helmets, aprons, goggles, and first aid equipment. h) i) B. a) b) c) d) Supply of necessary beverages, and pills and tablets, that is, salt tablets, milk, soda. Notice boards: posters, pictures, slogans; information of communication. Conveniences: Urinals and lavatories, washbasins, bathrooms, provision for spittoons; waste disposal. Provision of drinking water; water coolers. Canteen services: full meal, mobile canteen. Management of workers’ cloak rooms, rest rooms, reading room and library. Workshop (room) sanitation and cleanliness; temperature, humidity, ventilation, lighting, elimination of dust, smoke, fumes, gases. Control of effluents. Convenience and comfort during work, that is, operatives’ posture, seating arrangements. Distribution of work hours and provision for rest hours, meal times and
C. Workers’ Health Services: Factory health care; dispensary, ambulance, emergency aid, medical examination for workers; health education, health research; family planning services.
D. Women and Child Welfare: Antenatal and postnatal care, maternity aid, crèche and child care; women’s recreation (indoor); family planning services. E. Workers’ Recreation: Indoor games; strenuous games to be avoided during intervals of work. F.Employment Follow-up: Progress of the operative in his work; his adjustment problems with regard to machines and workload, supervisors and colleagues; industrial counseling. G.Economic Services: co-operatives, loans, financial grants; thrift and saving schemes; budget knowledge, unemployment insurance, health insurance, employment bureau, profit sharing and bonus schemes; transport services; provident fund, gratuity and pension; rewards and incentives; workmen’s compensation for injury ; family assistance in terms of need. H.Labour-Management Participation: a) Formation and working of various committees, that is, works committee, safety committee, canteen committee; consultation in welfare area, in b) Production area, in the area of administration, in the area of public relations. c) Workmen’s arbitration council. d) Research bureau. I Workers’ Education: reading room, library, circulating library; visual education; literary classes, adult education; daily news review; factory news bulletin; cooperative with workers in education services. 2. Welfare measures outside the workplace
Housing: bachelors’ quarters; family residencies according to types and rooms. b) c) Water, sanitation, water disposal. Roads, lighting, parks, recreation, playgrounds.
d) e) f) g) h) i) j)
Schools: nursery, primary, secondary and high school. Markets, co-operatives, consumer and credit societies. Bank Transport Communication: post, telegraph and telephone. Health and medical services: dispensary, emergency ward, outpatient and in-patient care, family visiting; family planning. Recreation: games; clubs; craft centers; culture Programmes, that is, music clubs; reading rooms and library; open air theatre; swimming pool; athletics, gymnasia.
If employees’ perceive that their efforts will be accurately appraised and if they further perceive that the rewards they value are closely linked to their evaluations. More specifically, the rewards are likely to lead to high employee performance and satisfaction when they are a) b) c) Perceived as being equitable by the employee; Tied to performance and Tailored to the needs of the individual.
These conditions should foster a minimum of dissatisfaction among employees, reduce withdrawal patterns and increase organizational commitment. If these conditions do not exist, the probability of withdrawal behavior increases, and the prevalence of marginal or barely adequate performance increases. Employee benefits like flexible work hours, maternity leave, and day care centers may be most relevant for the impact they have on reducing absenteeism and improving job satisfaction.
The performance Appraisal system is an important tool for assessing the performance, qualitative attributes and the potential of officers in any organization. through effective use of this tool the management can take crucial decisions in respect of the officers in the areas of placement, career development, promotion ,etc. this system also acts as a feed-back mechanism for monitoring the performance of officers under various parameters. It helps them to improve their performance and prepare themselves for shouldering higher responsibilities in the organization. In other words, performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit rating. It employs various rating techniques for comparing individual employees in a work group,
OBJECTIVES OF PERFORMANCE APPRAISAL • Helps the employees to overcome his weakness and improve over his strength
and thus enable him to improve his performance and that of the department. • • • • • employee. Thus a good performance appraisal system should primarily focus on employee development and at the same time. Generate adequate feedback and guidance from the reporting officers to the Contribute to the growth and development of the employee. Helps in creating a desirable standardized culture and traditions in Helps in identifying employee for the purpose of motivating, training & Generate significant, relevant, free and valid information about
There are two broad methods of merit rating may be classified into: • • TRADTIONAL METHODS Μ Ο DERN METHODS
A) DETERMING THE OBJECTIVES OF PERFORMANCE APPRAISAL: Before any performance appraisal programmed is initiated, it is essential to determine its objectives. The objectives of the appraisal programme may be either to appraise the actual performance of individual to do higher jobs. Sometimes, performance appraisal is associated with specific objectives like training and development, transfer and promotion, etc. B). ESTABILISHING STANDARDS OF PERFORMACE: For effective rating of employees, it is necessary to establish standard or performance against which their performance should be compared. However, an approach that is more preferable is to establish, in writing, definite standard of accomplishment, which the employee can reasonably be expected to meet. C). FREQUENCY OF APPRAISAL: The frequency of appraisal differs from organizations to organization and with the nature of duties performed. There are spot appraisals, monthly, quarterly, and six monthly or yearly appraisals. But most of the organizations conduct yearly or half yearly appraisals because more frequent appraisals besides taking away time of the appraiser or raters may create a sense of fear amongst the rates. D). DESIGNING OF FORMS: The Punjab National Bank (officers) service regulations, which came into effect from 1st July 1979, formed the basis of the performance appraisal system and the promotion policy. A new promotion policy was formulated based on marks under various parameters such as: • • • • WRITTEN TEST. EDUCATIONAL QUALIFICATION. INTERVIEWS. BRNCH EXPERIENCE.
The present appraisal system of the bank had been serving the objectives for which it was meant since 1994, but to keep pace with the fast changing economic and banking scenario and meet the competition, it was imperative to develop and utilize on human resource appropriately. To bring appropriate changes for restructuring the govt . of India formed the committee of human resource Management to study all significant areas along with this Boston consultancy group was also appointed. The New Performance Appraisal System was approved by the board in its meeting dated 15 th December 2003, for being introduced w.e.f. 1st April ‘2004.
Question 1) Have you heard a name of Reebok Company? Answer a) Y-yes b) n- no c) c- can’t say
c 7.00 / 7.0% n 19.00 / 19.0%
y 74.00 / 74.0%
Analysis: we concluded that more than 70% of the people liked the industry which conveys a good image of the company.
Question 2) Response of people about Reebok? Answer a) y-yes b) n-no c) c-can’t say
c 14.00 / 14.0%
y 52.00 / 52.0% 34.00 / 34.0%
Analysis: we concluded that more than half of the people consider Reebok is a nice product, only a few said NO. That means for people it is a expensive product.
Question 3) Response of people that Reebok will give a healthy competition to other companies? Answer a) y- yes b) n- no c) c- can’t say
c 13.00 / 13.0%
n y 59.00 / 59.0% 28.00 / 28.0%
Analysis : we concluded that more than 50% of the people believe that Reebok will give a healthy competition to small companies and it will prove to be more superior than other small companies.
Question 4) Response of people that Reebok will bring a revolution in industry? Answer a) y-yes b) n-no c) c- can’t say)
c 14.00 / 14.0%
n 20.00 / 20.0%
y 66.00 / 66.0%
Analysis: we concluded that about 66% of the people said that Reebok will bring a revolution in the industry as it is growing at a very fast rate day by day.
Question 5) Factors why people like Reebok? Answer a) 1-affordability b) 2-shape c) 3-design d) 4-other design
4.00 11.00 / 11.0%
3.00 18.00 / 18.0%
1.00 2.00 10.00 / 10.0% 61.00 / 61.0%
Analysis: we concluded that all the factors contribute in increasing the liking of the people, but the most effective one is the affordability of the Reebok.
Question 6) Proportion of people who will shift to Reebok? Answer a) Y-yes b) n-no c) c-can’t say
y 45.00 / 45.0%
c 22.00 / 22.0%
n 33.00 / 33.0%
Analysis: we concluded that in the coming time people will more often start shifting to Reebok as they produce the most Affordable products as compared to other products manufacturing companies.
Question 7) Why would people prefer Reebok as their brand? Answer a) 1-comfort b) 2-safety c) 3-reputation d) 4-other reasons
4.00 38.00 / 38.0%
1.00 23.00 / 23.0%
2.00 15.00 / 15.0%
3.00 24.00 / 24.0%
Analysis: we concluded that people prefer Reebok as their product due to many factors. Some of them are Comfort, Safety, and Reputation etc.
Question 8) Reebok is made for villages or cities? Discuss Answer a) 1-town/cities b) 2-villages c) 3-both d) 4-can’t say
4.00 13.00 / 13.0%
3.00 26.00 / 26.0% 1.00 58.00 / 58.0%
2.00 3.00 / 3.0%
Analysis: we concluded that more than 50% of the people believe that Reebok is good for villages, while 26% of the people believe it is good for villages as well as cities.
FINDINGS & RECOMMENDATIONS
FINDINGS AND RECOMMENDATIONS
1) The retailers on their outlets do not properly place the glow signboard and the company or distributors do not do the distribution of the boards properly. 2) Sales promotion schemes are important to influence the consumer. The retailer was dissatisfied by the promotional schemes of the company. The distributors were not distributing all the schemes properly to the retailer. 3) The competitor’s sales promotion schemes were not much effective but schemes were properly distributed to the retailers. 4) The company has strong distribution channel but the retailers were not satisfied by the services of the distributors. 5) Number of root vehicle is very less as compare to the size of the market. 6) The merchandising equipments distributed by the company are not being maintained properly by the company.
1) 2) outlets. 3) The glow signboard should be placed at the public places where maximum people can be influenced by the sales promotion schemes by the company. 4) The company should properly maintain all merchandising equipments on all outlets. 5) Number of root vehicle should be increased as the size of market is relatively large. 6) As the sales promotion schemes are major tool to influence the buyer as well as to the retailer, so the company should maintain the proper flow of the promotional schemes as compare to the competitors. 7) 8) 9) The company must ensure that promotional schemes are distributed Retailer- distribution relation should be made friendly. The executive of the concerned market should be made more properly by the distributors. The company must ensure that Reebok is not used to display vehicles The company must keep check on the maintenance of vehicles on the
responsible towards his/her job.
The aim of this project was to comparatively study on operators and others operators and try to reveal future prospects of Reebok .In my Marketing research I found that the demand of is going to increase day by day. The company should participate in advertising to acquire as much benefits as possible, thus competing successfully with other operators. The final survey incremented my knowledge regarding how to market one’s product efficiently and how to deal with various types of people. Thus I greatly enjoyed this project and learnt a lot. Development of good relations with the dealers is must. Company should also make efforts to attract more and more customers through various schemes etc. After conducting this survey on Reebok, I come to the conclusion that, company has huge potential in Delhi region & it can capture major share by providing excellent after sales service. There are some other conclusions are also included: The market reach of the company is very good. The growth of the product is also appraisable The company is a major player in the sector of power generation. The service providing network of the company is very strong.
• • • www.google.com www.wikipedia.com www. Reebok.com
MAGAZINES / NEWSPAPERS
• • • • • Business Today The Financial Express The Times of India India today Hindustan Times
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