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INDUSTRY PROFILE:

The service industry forms a backbone of social and economic development of a region. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors. It is a large and most dynamic part of the Indian economy both in terms of employment potential and contribution to national income. It covers a wide range of activities, such as trading, transportation and communication, financial, real estate and business services, as well as community, social and personal services. In India, services sector, as a whole, contributed as much as 68.6 per cent of the overall average growth in gross domestic product (GDP) between the years 2002-03 and 2006-07. The most important services in the Indian economy has been health and education. They are one of the largest and most challenging sectors and hold a key to the country's overall progress. A strong and well-defined health care sector helps to build a healthy and productive workforce as well as stabilise population.The 'Ministry of Health and Family Welfare' is responsible for implementation of various programmes in the areas of health and family welfare, prevention and control of major communicable diseases as well as promotion of traditional and indigenous systems of medicines. Accordingly, it is carrying out measures like National health policy, implementing National Rural Health Mission (NRHM) in different States, conducting surveys and studies, etc. While, education strongly influences improvement in health, hygiene and demographic profile. The 'Ministry of Human resource Development' is involved in eradicating illiteracy from the country. It is concerned with universalisation of elementary education, achieving full adult literacy, laying down of National Policy on Education, meeting needs of secondary and higher education for all, etc. India has achieved impressive demographic transition owing to the decline of crude birth rate, crude death rate, total fertility rate and infant mortality rate as well as gained high literacy rate in the country.

The era of economic liberalisation has ushered in a rapid change in the service industry. As a result, over the years, India is witnessing a transition from agriculture-based economy to a knowledge-based economy. The knowledge economy creates, disseminates, and uses knowledge to enhance its growth and development. One of the major functional pillars of this economy is Information Technology (IT) and IT-enabled services (ITeS) industry. The 'Department of Electronics and Information Technology' has been making continuous efforts to make India a front-runner in the age of Information revolution. IT continues to be a dominating sector in the overall growth of the Indian industry. A large number of Indian software companies have acquired international quality certification. Several policies have also been framed on the key issues of IT infrastructure, electronic governance as well as IT education. Another major and upcoming service industry has been media and entertainment. It is basically an intellectual property-driven sector with small to large players spread throughout the country. It covers film, music, radio, broadcast, television and live entertainment. It plays a significant role in creating people's awareness about national policies and programmes by providing information and education to all. The 'Ministry of Information and Broadcasting' is responsible for formulation and administration of the rules, regulations and laws relating to media industry. Besides, retailing has been one of the fastest growing service sector both in terms of turnover and employment. Many national and global players have been investing in the retail segment and are making all efforts to further expand the sector. Out of the total retail outlets in the country, most of them are related to food items. However, to supplement the achievements and meet the shortfalls in all the subsectors of the service industry, travel and tourism sector has to be developed in a sustainable manner. Being one of the largest industry in terms of gross revenue and foreign exchange earnings, it stimulates growth and expansion in other economic sectors like agriculture, horticulture, poultry, handicrafts, transportation, construction, etc. as well as gives momentum to growth of service exports. It is a major contributor to the national integration process of the country as well as preserver of natural and cultural environments. The 'Ministry of Tourism' has been undertaking several policy measures and incentives so as to boost the sector such as the announcement of the National Tourism Policy.

All this shows that services hold immense potential to accelerate the growth of an economy and promote general well-being of the people. They offer innumerable business opportunities to the investors. They have the capacity to generate substantial employment opportunities in the economy as well as increase its per capita income. Without them, Indian economy would not have acquired a strong and dominating place on the world platform. Thus, service sector is considered to be an integral part of the economy and includes various sub-sectors spread all across the country.

INTERNATIONAL COMPARISON
In world GDP of US$70.2 trillion in 2011, the share of services was 67.5 per cent, more or less the same as in 2001. Interestingly the top 15 countries in terms of services GDP are also the same in overall GDP in 2011. This list includes the major developed countries and Brazil, Russia, India, and China. Among the top 15 countries with highest overall GDP in 2011, India ranked 9th in overall GDP and 10th in services GDP. A comparison of the services performance of the top 15 countries in the eleven-year period from 2001 to 2011 shows that the increase in share of services in GDP is the highest for India (8.1 percentage points) followed by Spain. While Chinas highest services compound annual growth rate (CAGR) of 11.1 per cent was accompanied by marginal change in its share of services for this period, Indias very high CAGR (9.2 per cent) which was second highest was also accompanied by the highest change in its share. This is also a reflection of the domination of the industrial sector along with services in China in its growth, while Indias growth has been powered mainly by the services sector (also see Chapter 2). Despite the higher share of services in Indias GDP and dominance of industry over services in China, in terms of absolute value of services GDP as well as growth in services ( both decadal and annual in 2001, 2010, and 2011) China is still ahead of India. (Table 10.1) . Country estimates for 2012 show a deceleration in services growth in some major countries. For example, in 2012 it decelerated to 0.5 per cent from 0.9 per cent (in 2011) in the USA; 8.1 per cent in 2012 from 9.4 per cent (in 2011) in China; and 6.6 per cent in FY 2012-13 from 8.2 per cent (in FY 2011-12) in India. In Brazil, the services sector grew by a 1.4 per cent in Q3 of 2012 compared to 2.1 per cent in the corresponding period of the previous year.

INDIAS SERVICES SECTOR


Indias services sector has emerged as a prominent sector in terms of its contribution to national and states incomes, trade flows, FDI inflows, and employment. The growth story overall and services of world and India in the 2000s began from almost the same level of around 4-5 per cent in 2000. But over the years, Indias overall and services growth rates have outpaced those of the world. Interestingly, unlike world services growth, which has been moving in tandem with its overall growth with mild see-saw movements over the years, Indias services growth has been consistently above its overall growth in the last decade except for 2003 (when the former was marginally lower than the latter). Thus, for more than a decade, this sector has been pulling up the growth of the Indian economy with a great amount of stability (Figure 10.1). The share of services in Indias GDP at factor cost (at current prices) increased from 33.3 per cent in 1950-1 to 56.5 per cent in 2012-13 as per Advance Estimates (AE). Including construction, the share would increase to 64.8 per cent in 2012-13. With an 18.0 per cent share, trade, hotels, and restaurants as a group is the largest contributor to GDP among the various services sub-sectors, followed by financing, insurance, real estate, and business services with a 16.6 per cent share. Both these services showed perceptible improvement in their shares over the years. Community, social, and personal services with a share of 14.0 per cent is in third place. Construction, a borderline services inclusion, is at fourth place with an 8.2 per cent share. FDI IN THE SERVICES SECTOR The growth of the services sector is closely linked to the FDI inflows into this sector and the role of transnational firms. While the ambiguity in classifying the different activities under the services sector continues, the combined FDI share of financial and non-financial services, construction development, telecommunications, computer hardware and software, and hotel and tourism can be taken as a rough estimate of the FDI share of services, though it could include some non-service elements. This share is 47 per cent of the cumulative FDI equity inflows during the period April 2000- November 2012. The five service sectors are also the sectors attracting the highest cumulative FDI inflows to the economy with financial

and non- financial services topping the list at US$ 36.04 billion during the period April 2000November 2012. This is followed by other service sectorsconstruction development (US$21.77 billion), telecommunication (US $12.62 billion), and computer software and hardware (US $ 11.54 billion). If the shares of some other services or service-related sectors like trading (1.96 per cent), information and broadcasting (1.65 per cent), consultancy services (1.11 per cent), construction (infrastructure) activities (1.06), ports (0.88 per cent), agriculture services (0.80 per cent), hospital and diagnostic centres (0.82 per cent), education (0.36 per cent), air transport including air freight (0.24 per cent), and retail trading (0.02 per cent) are included then the total share of cumulative FDI inflows to the services sector would be 56.08 per cent.

SERVICES EMPLOYMENT IN INDIA


The pattern of sectoral share of employment has changed over the last two decades with the share of agriculture falling from 64.75 per cent in 1993-4 to 53.2 per cent in 2009-10 and of industries (excluding construction) falling from 12.43 per cent to 11.9 per cent. The shares of the services and construction sectors in employment, on the other hand, increased in the same period from 19.70 per cent to 25.30 per cent and 3.12 per cent to 9.60 per cent respectively. As per the National Sample Survey Offices (NSSO) report on Employment and Unemployment Situation in India 2009-10, on the basis of usually working persons in the principal and subsidiary statuses, for every 1000 people employed in rural India, 679 people are employed in the agriculture sector, 241 in the services sector (including construction), and 80 in the industrial sector. In urban India, 75 people are employed in the agriculture sector, 683 in the services sector (including construction) and 242 in the industrial sector. Construction; trade, hotels, and restaurants; and public administration, education, and community services are the three major employment-providing services sectors. Studies show that the tertiary employment share has strong upward slopes in all the income quintiles both in rural and urban areas with higher income quintiles having higher shares in each successive NSSO round. Thus tertiary employment growth is steadily moving from being an absorber of low income labour to provider of high income jobs.

CHALLENGES: The immediate challenge for the services sector covering myriad activities and areas is growth revival. Indias growth has been basically a services- led growth pulling up overall growth of the economy. While this could be through a business-as-usual approach, a more targeted approach with focus on big-ticket services could lead to exponential gains for the economy. While software and telecom services have led by example, there are some other important services like tourism including medical tourism and shipping and logistics. Tourism is a big- ticket item which can not only lead to higher growth but also more inclusive growth. With world tourist arrivals expected to increase by 43 million every year on an average from 2010 to 2030 and FTAs in emerging countries expected to grow faster than in advanced economies, a goldmine of opportunity in tourism is waiting for India which at present has a paltry share of 0.64 per cent in world tourist arrivals. India has an assorted list of destinations having different types of weather and catering to different types of tourists. However, an image change for Indian tourism is needed with higher investment in tourism infrastructure including through PPP mode. Even user charges could be levied if monuments or tourist sites are developed by the private sector or through PPP. There is urgent need to

address issues like high luxury taxes on hotels by states and ensure greater cleanliness and safety for tourists which can help in giving a big boost to this sector. Refunding VAT as done in countries like Thailand and Singapore can also help the tourism sector with ripple effects on sectors like textiles and leather manufacturing, as it can lead to high purchase of these items in which India is price competitive. Shipping services is another major area where the growth impact can be high. With the share of shipping services in Indias overseas cargo falling from 40 per cent in the 1980s to just 10.4 per cent in 2011-12, measures to augment the ageing shipping fleet of India are necessary. With global prices at an all-time low, the time is opportune for such purchases which can help in greater foreign exchange earnings/savings in the future through shipping services which have forward linkage effect even in the export sector and also increase our bargaining power with the foreign liners. Super specialty healthcare is another potential sector with India being one of the cheapest destinations offering quality services. The other major challenge is to retain and expand our competitive advantage in those services where we have already made a mark. The present advantage in services may not continue forever, with new competitors from other developing countries making rapid strides
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even in areas where we had the initial advantage as in the case of software services. Further expansion of established services like software and telecom into new markets and greater usage of these services domestically can not only increase services growth but also propel growth in other sectors with greater efficiency in these sectors using knowledge- and technology-based services. Removing or easing domestic regulations is the third challenge. While removal of market barriers in the form of domestic regulations in other countries depends on multilateral and bilateral negotiations, the myriad restrictions and regulations in the different services domestically as indicated in Box 10.4 need immediate attention. Removing or easing them can lead to dynamic gains for the Indian economy. The services sector is an uncharted sea throwing up many daunting challenges as well as opening up many exciting opportunities. While many hitherto non-tradable services including those in the government and social sectors are becoming domestically tradable, many services hitherto confined within national borders (like telemedicine) have become internationally tradable. Addressing the challenges of the diverse services sectors and seizing the new opportunities can lead to multiple gains for the services sector and the economy.

COMPANY PROFILE :
ABOUT THE COMPANY : Pring is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was founded in May 2013 by M.Thooyavan and N.S. Manivaasakars who where the

directors of Valga Valamudan Offset Printers Pvt.Ltd. Pring was Initially funded by themselves with 35,00,000. Pring focuses on online sales of gift items, surprise gifting in Bangalore, Chenai & Coimbatore. It will expand its surprise gifting operation in all the other major cities also. Pring offers multiple payment methods like credit card, debit card, net banking, e-gift voucher, Cash on Delivery Pring will go live in October 2013 with the objective of making gifts & gifting friends easily available to anyone who had internet access. Today, we gift across various categories including personalized gifts.

Vision: To serve our customers with heart to deliver their presence as their gift at a reasonable price and be the market leader in online gifting store with smiles in our face and heart.

The Registered address of Pring is No 26, Nachiappa II nd Street, Periyar Bus Stand Back Side, Erode 638001.

COMPANY STRUCTURE:

CHAIRMAN

BOARD OF DIRECTORS

CEO

VP - HR

VP - OPERATIONS

VP - FINANCE

VP - MARKETING

ADMIN

PURCHASE

SUPPLY CHAIN

ACCOUNT S

COLLEGE MARKETING

WEBSITE MAINTANANCE

DIGITAL MARKETING

SWOT ANALYSIS FOR PRING


STRENGTH Strong management Strong management can help Pring reach its potential by utilizing strengths and eliminating weaknesses. Innovative culture An innovative culture helps Pring to produce unique products and services that meet their customers needs. Financial leverage Financial leverage allows Pring to use their balance sheet to expand their business and increase their profits. Asset leverage Asset leverage allows Pring to use their best operational assets to expand their business and improve their market share. Brand name A strong brand name is a major strength of Pring. This gives Pring the ability to charge higher prices for their products because consumers place additional value in the brand. "Brand Name (Pring)" has a significant impact, so an analyst should put more weight into it. Superior technology Superior technology allows Pring to better meet the needs of their customers in ways that competitors cant imitate.

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Customer loyalty When given a choice, customers are loyal to Pring. Instead of targeting all customers, Pring only needs to target new customers in order to grow their business. WEAKNESS Infrastructure "Infrastructure" will have a long-term negative impact on this entity, which subtracts from the entity's value. Weak supply chain A weak supply chain can delay the arrival of products to Prings customers. Unnecessary delays can hurt Pring over the long run, because customers will cancel orders. "Weak Supply Chain (Pring)" has a significant impact, so an analyst should put more weight into it.

OPPORTUNITIES Online market The online market offers Pring the ability to greatly expand their business. Pring can market to a much wider audience for relatively little expense. Innovation Greater innovation can help Pring to produce unique products and services that meet customers needs. New services New services help Pring to better meet their customers needs. These services can expand Prings business and diversify their customer base.

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New technology New technology helps Pring to better meet their customers needs with new and improved products and services. Technology also builds competitive barriers against rivals.

THREATS Intense completion Intense completion can lower Prings profits, because competitors can entice consumers away with superior products.

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DEPARTMENTS IN THE ORGANISATION Pring has 4 major departments in the organization they are Human Resource. Operations. Finance. Marketing.

HUMAN RESOURCE : The Human Resource department of Pring is headed by Miss. C. Shalini. The Human Resource department of Pring takes care of the Administration activities and the Website maintenance activities. In future it will take care of the Recruitment and Customer Relationship management. The various activities under Human Resource department are as follows Office Administration. Website Maintanance & Updation. Recruitment & Selection. Payroll & Compensation. Customer Care. Performance Appraisal & Periodical review.

OPERATIONS : The Operations department of Pring is headed by Mr. N.S.Manivaasakar. The Operations department of pring now takes care of the Purchase of gifts, Inventory Management, Reordering of goods. In future it will take care of all the Operational activities of Pring The various activities under Operations department are as follows Purchase & Replinishment. Inventory Management. Supplier Management. Fake Return. Warrenty Returns. Managing Supply Chain.

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FINANCE: The Finance department of Pring is headed by Mrs. Nagamani Manivaasakar. The Finance department of pring now takes care of the accounts and all the financial functions of the company.

The various activities under Finance department are as follows Accounts Management. Budget Preparation. Management of Taxes. Management of Financial Risks. Financial Investments.

MARKETING : The Marketing department of Pring is headed by Mr. M. Thooyavan. The marketing department of pring now takes care of the accounts and all the Promotion of Pring, Branding of the Company, Marketing to College Students, Professionals, & all the other marketing functions of the company.

The various activities under Finance department are as follows Researching. Promotion. Pricing. Product Management. Marketing. Brand Management.

CORPORATE SOCIAL RESPONSIBILITY: The CSR team works for the development of the public in all the social needs. For the CSR activities Pring has Signed a Memorandum of Understanding with Empowering Globe Service Club (EGSC). EGSC will look after all the CSR activities and work for the development & welfare of the public.

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ABOUT EGSC: Empowering Globe Service Club (EGSC) was founded on May 17, 2012 as a registered Non-Governmental Organization(NGO). EGSC was initially established with 9 members as BOARD OF TRUSTEES to carry over the objectives. All the 9 BOARD OF TRUSTEES were the volunteers of National Service Scheme (NSS) during their college life. During their college life they have attended and organized many camps. To extend their social activities beyond their college life, they founded EGSC. EGSC will carry on the objective with the help of the volunteers who have joined their hands with EGSC. The registered address of the EMPOWERING GLOBE SERVICE CLUB 703-SARASEATHI MANDAPAM STREET, METTUNASUVAMPALAYAM, ERODE-638301.

ABOUT EGSC TRUSTEES: S.NO 1 2 3 4 5 6 7 Bharathi. R Chandraseharan. V Mohan Kumar. N. T Vignesh. D Sibi Rajan. R Nachimuthu. S Vijeyrakumar.S.J NAME DESIGNATON Secretary Treasurer Chief Advisor Chief Advisor Executive Member Executive Member Executive Member

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VISION To empower the globe physically by green revolution, socially by serving orphans,

spiritually by creating awareness on social issues, and economically by conducting free medical camp which encourages the youth power in social work. MISSION

To help the orphans. To demolish child labour. To provide AIDS awareness. To provide road safety awareness. To provide awareness on education. To provide health awareness. To achieve 100% literacy. To eradicate corruption. To help everyone without considering the caste, community or religion. To organize free General medical camp, Eye camp and Dental camp. To plant siblings in road sides, public places etc. To conduct competition for school students of Govt. school during special occasions. To conduct career guidance program to the school students to help them to achieve their goals.

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KEY LEARNINGS: HUMAN RESOURCE: In Human Resource department my learnings are as follows To develop the Organisational Structure of the organization. How the Software development team works for completion of the software and data management. To develop minute report based on the meetings in organization. To analyse the number of employees required for the organization.

SUGGESTED IDEAS: Developed the Organisation chart by self. Since few number of employees are required at the initial stage, they can be made available from the running business.

OPERATIONS: In Operations Department my learnings are as follows To select the seller of the gift items in various parts of the country. To categorise the product. To analyse the supply chain partner of the company. To analyse the level of inventory required.

SUGGESTED IDEAS: Not to have inventory at the initial stage and make a tie up with the sellers.

FINANCE: In Finance Department my learnings are as follows To know the auditor and how the auditor team works. To know the taxation of the company. How to develop the product list according to the price list.

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MARKETING: In Marketing Department my learnings are as follows Learnt about Digital Marketing in India. Online Buying behaviour in India. Challenges the company can face in the initial years for marketing. Review available for certain products.

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CONCLUSION:
A detailed study was made on the various departments and its process at PRING which gave an idea about both intra and inter departmental challenges for the top management Appropriate suggestion and recommendations were provided to the management. Through this training I had an opportunity to know about the functions of various departments of PRING and I have gained knowledge about the various departments and various managerial functions and how the employees are trained and how they are benefited in the company. I have also learned about the procedures of the company, relating to secretarial work, accounting procedures, operational process and marketing facilities through this training and also about the new technologies adopted in the company.

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