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Submitted by AMIT KUMAR PANDEY DEL-5A,DB-1275 IIPM(New Delhi)

Under The guidance of

Mr. PRAVIN TYAGI (Asst.Marketing Manager)


Behind every successful venture, there is some hand .I pay my all regard to all those people who are directly or indirectly with me for the

encouragement and because of their immense help I could complete my project successfully.
In my prior list, I would like to express my profound sense of gratitude to the authorities of “SHIMADZU ANALYTICAL PVT, LTD” especially Mr. PRAVIN TYAGI(Asst manager, Industrial Group) for providing me the platform and track for the purpose and under whose guidance I was able to complete my project and got help for the same at each and every step .

I would also like to express my profound sense of gratitude to the authorities of “INDIAN INSTITUTE OF PLANNING AND MANAGEMENT,NEW DELHI” for giving me such opportunity and providing me better guidance. Last but not the least; I would also like to thank all the employees of SHIMADZU & others who helped me directly or indirectly towards completion of my project.



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I, Amit Kumar Pandey, student of Indian Institute Of Planning And Management (IIPM), New Delhi, here by state that this report, submitted in partial fulfillment of requirement for the Master of Business Administration (MBA) Programme, is an original work carried out by me under the guidance and supervision of Mr. PRAVIN TYAGI (Asst. Manager, Industrial Group SHIMADZU Ltd.) and declare that the project, or any part it thereof, has not been submitted previously for any degree/diploma course of any institute/university elsewhere.

Date: (Amit Kumar Pandey) Place:


New Customers to who company have to influence through its service. The format designed for data presentation on the earlier and present services of company.  It provides efficient platform in rating the customer and helps in deciding there on which category is the best in service and beneficial for the company. SWOT ANALYSIS and competitor of the company. The outsourcing data and feedback facilitates.Executive Summary The study concentrates on the scanning of the Viability of distribution of products and payment trends of various customers from different category as.  Regular Customers to whom secured service has been provided. The scope of this project is wide as it also covers important analysis like CUSTOMER ANALYSIS. helps in the comparative analysis of the different customers in easy way. is compact and effective record of current customers carrying every vital information about them. 6 .

one of 7 . In late 16th century. The solid circular margin has a width of 1/8 the outer diameter of the circle while the cross bars are another 10% thicker. Shimadzu's Emblem The corporate emblem.The study has surveyed the various publicly available websites of SHIMADZU and important personals of the organization were met during the course of the study. the emblem was scientifically re-designed into the present trademark. the lord of Satsuma Province. This design is based on scientific data used to optimize the beauty of uniformity as the dimensional ratios used correct the illusion of difference in widths leading to a pleasing perception of balance. passed through Banshu Himeji to visit his land newly given to him by Hideyoshi Toyotomi. when Yoshihiro Shimadzu. who decided to use it as our trademark in 1912. the founder of Shimadzu Corporation. "the Circle Crossed" originates with Genzo Shimadzu. Later.

across a wide range of fields. responsive service. it is reported that Lord Yoshihiro Shimadzu allowed him to use the name of Shimadzu and the family emblem. In recognition of the services of Sohbei Inoue." Shimadzu presently offers a multitude of products. In addition to these core businesses." President's Message Striving to become a true global business We have strived to contribute to people's health and well-being since our inception in 1875. encompassing analytical and measuring instruments. we have consistently challenged ourselves to develop state-of-the-art technology that creates solutions and new values in a variety of fields.the three warriors who reunited Japan. This desire is enshrined in our corporate philosophy: "Contributing to Society through Science and Technology. and industrial equipment. an ancestor of Genzo Shimadzu was given a role to attend the lord. as well as meticulous. aircraft equipment. To do this. we continue to explore new ventures that will positively impact society in the future. "the Circle Crossed." and we are unwaveringly committed to realizing our core management principle: "For the Well-being of both Mankind and the Earth. Sohbei Inoue. medical systems and equipment. 8 .

achieving new businesses. and service bases throughout the world. In addition. we are developing cleanup technologies which will not require the removal of existing buildings to rehabilitate polluted underground soil. We are setting up production. In addition to our R&D objectives. For example. in addition to our networks in the United States. Shimadzu is now expanding into Brazil. and improving business structure while steadfastly adhering to customer feedback and ascertaining global affairs. energy. Therefore. Keeping in mind our corporate slogan. in the environmental field. we are focusing on the development of “molecular imaging technology” to enable detection of subtle symptoms before the onset of full-blown diseases. we will continue to cultivate new business opportunities in such fields as the global environment. India. this includes strengthening our marketing power. automotives. Shimadzu is keenly aware that the 21st century is an age of explosive globalization in which barriers are tumbling. we fully support the realization of dreams in other technological fields. we are developing combustion measurement technology for automobile engines. “Best for our customers. by promoting leading-edge seed technology development. Asia. and IT. striving to become a truly global business by perfecting an organizational structure which ensures that the various needs of our customers in all regions are swiftly addressed. and the world is steadily becoming a single vast marketplace. an innovation that will further reduce fuel consumption. one that is welcomed around the world. sales. Russia. Europe. and China. Looking forward. Our goal from this point is to accelerate business reform. and in response to the goals of ultra-early diagnosis and treatment in the field of next-generation medicine.Acknowledging the realities of an aging society and heightened interest in the well-being of individuals.” we at Shimadzu aim to develop into a true global business. In the field of industrial measurements. and other regions. 9 .

1956. they Started manufacture of electron microscopes for the first time in Japan. It was the first step of Shimadzu s activity. the main factory. with a person in it. Former Emperor Hirohito visited Sanjo Works.then in. Sanjo Works. Genzo Shimadzu.In 1919 .After which in 1909 . and successfully launched it. succeeded taking roentgenograms for the first time in Japan.In 1930 . It was the year after Dr Roentgen discovered X-rays.After which in 1934.Genzo Shimadzu. they Started manufacture of aircraft equipment.In 1936. In 1951. from the Old Imperial Palace in Kyoto. the main factory today. In1947. Jr (1869-1951) was invited to the Emperor s dinner party as one of the ten greatest inventors of Japan. shimadzu Developed spectrographs for the first time in Japan.1877.Genzo Shimadzu manufactured a balloon.they built a medical X-ray apparatus for the first time in Japan. 10 . and in cooperation with his younger brother.Company History 1875 Genzo Shimadzu (1839-1894) began to manufacture physical and chemical instruments. Started manufacture of material testing machines.SHIMADZU Developed gas chromatographs for the first time in Japan. Shimadzu was reorganised as a joint-stock Company.After that in 1896 Umejiro Shimadzu assumed the name of his father.

. Started Production Engineering Laboratory.SHIMAZDU Developed world first direct-conversion Flat Panel Ditector for the 11 .S. Ltd. SHIMADZU PRECISION INSTRUMENTS. in China. in India.Mr. a joint venture.A. Koichi Tanaka was awarded the Nobel Prize in Chemistry. INC.K 1992 TOSHBRO SHIMADZU PVT. LTD. 1987.1971. U.A. * SHIMADZU VIETNAM MEDICAL HIGH-TECH COMPANY LTD. 1984. *SHIMADZU (SUZHOU) INSTRUMENTS MANUFACTURING. in Japan. A joint venture.1996-1999 * SHIMADZU PHILIPPINES MANUFACTURING INC. in U. CO. 1989.1993. Germany.They started Atsugi Works.S... * SHIMADZU U. * SHIMANE SHIMADZU CORPORATION. Analytical Applications Centre.Started manufacture of analytical instruments in F. 1979.. LTD.S. In 2002. they Developed lactic acid based bio-degradable plastic. 1983. in U. Beijing Shimadzu Medical Equipment co. in China.A. SHIMADZU SCIENTIFIC INSTRUMENTS. INC.S.they Developed MRI systems and Started manufacture of opto-electronic equipment. Kanagawa Prefecture. MANUFACTURING INC. .. 1985.. (Now Application Development Center) 1975. 2003.R. * SHIMADZU MEDICAL SYSTEMS (OCEANIA) Pty Ltd.SHIMADZU Started manufacture of analytical instruments in U. The most important they acquired KRATOS GROUP PLC.A. * SHIMADZU (HONG KONG) LTD.

6 billion Directors and Auditors Number of Employees (Shimadzu group total) 9. In 2006. Shimadzu Corporation to Take Over Turbo-Molecular Pump Business of Mitsubishi. Japan Phone +81-75-823-1111 Capital ¥26. Kyoto 604-8511. Celebrated the 130th anniversary of foundation. Nakagyo-ku. Corporate Profile Name SHIMADZU CORPORATION Establishment March. Completed new analytical instruments plant in Sanjo Works.Nishinokyo-Kuwabara-cho. In 2008.670 (as of March 31. 2009) FY2008 Consolidated Net Sales 12 .diagnostic X-ray imaging system. In 2005. 1875 Formation of Limited Company September. 1917 Head Office 1.

High-Performance Liquid Chromatograph ---Gas Chromatograph Mass Spectrometer 13 . Our high-level. sophisticated products include Chromatographs. we have moved actively to incorporate technology that responds to the latest needs of the United States and Chinese markets and the life science fields. For primary instruments such as the Liquid Chromatographs and Gas Chromatograph Mass Spectrometers. and quality control in a variety of fields. As a result. including new drug development. we are anticipating continued future growth in these important markets. and Composition and Surface Analysis Systems. Our high-precision measuring instruments are termed the key to 21st Century technology and include equipment for the evaluation of physical properties.¥273 billion Business Outline ANALYTICAL & MEASURING INSTRUMENTS Analytical & Measuring Technology developed by Shimadzu can be easily termed "Technology for Science". and environmental measurement. Shimadzu also provides a broad range of high-precision testing and measuring technology that is essential for product development. Light Absorption Analysis Systems. development. We also provide a broad range of analytical instruments indispensable for research. nondestructive inspection.

CT scanners and diagnostic ultrasound systems. Shimadzu has developed the direct conversion flat panel detector (FPD) that provides heretofore unavailable high-quality images. Furthermore.-----Mass Spectrometer for Protein Analysis -----Total Organic Carbon Analyzer ----Universal Testing Machine Autograph -----Microfocus X-Ray TV System -----Microfocus X-Ray TV System MEDICAL SYSTEMS To carry out our role in the early diagnosis of disease and the improvement of cure rates. We are also the first in the world to market the circulatory organ diagnostic system on which this detector is mounted. In the field of diagnostic imaging. PET systems. Additionally. recent IT technology developments are introducing efficient diagnostic systems to a variety of medical treatment areas. ---Digital X-Ray System ----X-Ray System for Use with Circulatory Organs -----PET/CT System 14 . Shimadzu is supporting the renovation of IT systems in hospitals and medical centers by providing digital processing systems that incorporate the newest IT technology wherever possible and can process many kinds of medical information. Shimadzu provides a broad range of diagnostic imaging equipment that includes digital X-ray systems. Shimadzu is now a leading pioneer of these new types of diagnostic imaging. including examination images . At this time. we have developed a variety of other diagnostic systems that utilize this FPD. a number of innovations are occurring at the leading edges of medical treatment.

Our products also support the launch into orbit of rockets and satellites. liquid transmission equipment and hydraulic equipment. the upgrading of a system's equipment is very important. 15 . We provide a variety of equipment for safe aircraft operation and the assurance of passenger comfort. and the long-term operation of satellites via a propellant supply valve for thrusters used to control the direction and positioning of rockets and satellites. which are considered essential to the manufacture of key cell phone and personal computer devices. Shimadzu is actively developing our semiconductor manufacturing equipment business as we consider this to be an important future area of growth. Shimadzu products are used in a variety of areas such as onboard air management systems. including semiconductor manufacturing equipment. we are continuing our development of testing equipment used for semiconductor and liquid crystal panel quality control. Additionally. Furthermore. flight control systems. we are also proud that we have the Japanese market leader for head-up displays. Here. We have a complete product line. according to your plant's size and type of operation. Additionally. and cockpit display systems. ----Film Deposition System for Use in Solar Cell Production ----Film Deposition System for Use in Solar Cell Production AIRCRAFT EQUIPMENT Shimadzu has now incorporated leading-edge electronics technology into our company's tradition of cultivating high-precision processing technology. We are also investing in the development of film deposition systems and turbo-molecular pumps. Our equipment is also used for engine startup systems and for electronic control systems. from which you can choose the most appropriate equipment.INDUSTRIAL EQUIPMENT In the ever-innovating world of industrial technology. Shimadzu provides ground-level support equipment including function-testing equipment for onboard hydraulic. We also provide aerospace medical training systems that simulate the aerospace environment and provide training. air and fuel system equipment. Additionally. Shimadzu has developed a variety of industrial equipment.

we have entered into technological cooperation with a leading American aerospace company.Moreover. In this way. Supports Applications from Environmental Analysis to Pharmaceutical Water Management Shimadzu Launches TOC-L Series Combustion Catalytic Oxidation TOC Analyzers for Laboratory Use 16 . we are contributing to an improvement in aerospace safety.

effluent. For instance. * The combustion catalytic oxidation method analyzes TOC by burning the sample and using an infrared gas analyzer to detect the carbon dioxide generated from the carbon contained in the organic matter. (1) Proven 680 °C Combustion Catalytic Oxidation method The combustion catalytic oxidation method achieves both high organic matter detection capacity and high measurement sensitivity. This method permits the analysis of samples containing high salt concentrations. and ultrapure water. sensitivity. and environmental investigations of river water and soils. Shimadzu has become the leading manufacturer of TOC analyzers and holds the largest market share. Through its continued excellence in accuracy. evaluation of cleaning efficiency (cleaning validation). TOC has been adopted as a water control standard for tap water in Japan. which used to be hard to measure. and functionality. Shimadzu aims to further increase sales of its total carbon analyzers through the launch of the TOC-L Series. Shimadzu pioneered the development of total organic carbon analyzers using the 680 °C combustion catalytic oxidation method. The ultra wide range from 4 μg/L to 30. increasing the demand for TOC analyzers in the pharmaceutical industry. but upgraded components and software expand the range of applications and make operation easier. for example. Background to the Product Launch With applications from ultrapure water to environmental water. TOC analyzers are used in diverse fields. including the management of tap water. such as sea water. The TOC-L Series inherits the basic performance of the TOC-V Series. which inherits the excellent performance of the previous models but offers a revamped external design. management of pharmaceutical water used in drug manufacturing processes. (2) Improved Operation and Visibility (standalone model) 17 .Shimadzu has launched the TOC-L Series of combustion catalytic oxidation total organic carbon analyzers for laboratory applications. including a color LCD display. the worldwide total organic carbon analyzer market is expected to grow by 6 % per annum. combined with an extensive product range and options. Features of the New Models The new TOC-L Series offers the following features. Total organic carbon (TOC) analyzers are used to evaluate the total amount of organic matter in water from the amount of carbon it contains. The high oxidation decomposition capacity permits the efficient detection of insoluble organic matter and covers a wide range from low concentrations to high concentrations.000 mg/L permits measurements from purified water to highly-polluted water. The 16th Japanese Pharmacopoeia (planned implementation from April 2011) additionally expands the application range of TOC measurements to include the purity testing of pharmaceutical water.

Data saved in the TOC instrument can be transferred to USB memory for easy data management. Shimadzu Introduces World Fastest* Tandem Quadrupole LC/MS/MS System Provides Speed Beyond Comparison for Multi-Analyte Determination *Based on our survey (as of August 2010) Shimadzu UHPLC Nexera and Triple Quadrupole Mass Spectrometer LCMS-8030 Shimadzu Corporation announces the ultra-fast triple quadrupole LC-MS system. (4) Comprehensive Range of Options Options are available to handle a diverse range of applications. In addition. the model LCMS-8030. the new standby power function reduces power consumption by 36 %( 100 V) and 43 %( 200 V) as compared to the previous series. (3)Power. high-class color LCD screen enhances the visibility and feel of the instrument.and Space-Saving Design When used for eight hours/day. five days/week. from 440 mm to 340 mm. The instrument width has been reduced approximately 20 %. the TN unit. Previous models employed a built-in thermal printer to print the measured data but the new models use general-purpose computer printers (not included). and user-friendly LabSolutions LCMS workstation software. Shimadzu’s LCMS-8030 features the most innovative technology ever put into a commercial tandem quadrupole analyzer. the LCMS-8030 is ideally suited for analysis of a wide range of applications. which was previously installed adjacent to the TOC analyzer.The high-resolution. is now installed on top to reduce the overall system width by 260 mm. contaminants from environmental samples or pesticides in food for highthroughput laboratories. such as detection of drugs and metabolites from large numbers of biological specimens. including the measurement of small sample volumes and the continuous measurement of sea water and other samples containing high salt concentrations with only simple maintenance. With its exceptionally fast electronics and robust design. The new instrument includes an ultra-fast pulse counting detection 18 .

Now. Japan implemented a “positive list” in 2006 which includes over 700 compounds that have to be measured and reported. These innovations allow this tandem quadrupole mass analyzer to provide the fastest measurements possible. strengthening regulations for industrial use of perfluorooctane sulfonate (PFOS) and perfluorooctanoate (PFOA). and now builds on that speed by introducing the incomparable LCMS-8030. and a novel RF power supply that can switch conditions and achieve complete stability in microseconds. and certifying safety is now a requirement for both importing and exporting countries. an innovative high-speed UFsweeperTM collision cell. Unique Product Features 19 . Development Background In recent years. fragmented in a collision cell. and then measured and quantitated in a separate quadrupole analyzer. In Japan. even in emerging countries that mainly export agricultural products. With the current trend going toward higher pressure HPLC and faster operating speeds for greater throughput. This type of instrument provides extremely high selectivity of target constituents. speeding up the LC-MS is a necessity. including a scan speed of up to 15. *A triple quadrupole liquid chromatograph mass spectrometer (LC-MS) is a three-stage mass analyzer in which molecules in the form of ions are first selected by mass. Their demand for high-throughput analysis to test pharmacokinetics of possible drug candidates in clinical trials or providing faster quantitative results to support new development efforts is growing. and the list of regulated compounds and analytes has increased as well. Shimadzu Corporation answered this need in 2008 with the release of the world’s fastest single quad LCMS-2020. compared to typical 40 MPa (6000 psi) instruments. the LCMS8030 is the ideal detector to keep up with the ever faster chromatographic peaks. and environmental analysis. Shimadzu Corporation is responding to market demand for fast and high-sensitivity analysis of trace-level and multi-analyte analysis by continually expanding our product line. additives and residual pharmaceutical and personal care products (PPCP) in the environment is progressing. For food safety. which in turn is creating demand for instrumentation that provides reliable trace-level determination. sensitivity or mass range. and can be used in wide-ranging fields from pharmaceuticals and life sciences to leading-edge materials research. Fast 50 millisecond UHPLC peaks are now easily tamed by the LCMS-8030. Our recently released Nexera UHPLC features a world-class pressure range up to 130MPa (19000 psi).000 u/sec without any compromise of resolution. With reproducible MRM results with just one millisecond dwell times. pharmaceutical companies are under more pressure to speed up development of new drugs. the LCMS-8030 will maximize the world-class performance of Nexera and provide the solution to the growing high-speed and trace-level analysis markets.system. shortening analysis times and tripling the separation capacity. provides quantitation at ultra-low levels. interest in health and safety has grown significantly. the LCMS-8030 can perform up to 500 different MRM measurements per second. In addition. The demand for multi-compound and multi-analyte analysis continues to grow. foods. In order to instantly capture and ionize the samples separated by ultrafast LC and to obtain appropriate quantification data.

However. tool-free operation. and ultra-fast polarity switching (15msec) for the most information without signal deterioration. The LCMS-8030 software was designed to provide intuitive. greatly lessening the burden on users. In addition. Automated optimization of analysis conditions The unified presentation of instrument parameters and displays was specifically designed to enhance user-friendly operation. which is the key to high-sensitivity analysis. For comparison purposes. easy-to-use operation. The “CID cell”.000 u/sec without sacrificing sensitivity or resolution. ensuring highly stable and reliable data. The UFsweeperTM collision cell prevents cross-talk from accumulated ions from affecting the measurement of the next compound. overnight operation. the Shimadzu LCMS-8030 improves Relative Standard Deviation (RSD) values by a factor of two over currently available instruments. English and (soon to come) Chinese. Finally. Prominence) and LCMS-2020 single quadrupole LC-MS. It fully integrates operation of Shimadzu’s LC product lines (Nexera. In triple quadrupole LC/MS analysis. a process that otherwise requires spending a day conducting maintenance. the LCMS-8030 can elute 226 pesticides included in the positive list within 2 minutes and easily provide reliable and accurate quantitative results. switching between multiple ion sources is a quick. its multilingual support includes Japanese.1) Ultra high-speed performance enables the world-class data acquisition speed and high reliability A unique technology created by Shimadzu with the LCMS-8030 enables world-class ultra highspeed measurement and reproducibility. at the heart of the triple quadrupole LC-MS. incorporates Shimadzu’s innovative tapered “octaplate” UFsweeperTM cell technology (patent pending) that allows faster and more stable measurements than ever. reaccelerating ions to the mass analyzer after collision has been a slow part of the operation. The improvements to the electronics provide ultra fast scan mass spectrum measurement speeds of 15. Automated optimization of analytical conditions for each quantitative target compound. Minimize instrument downtime with Easy Maintenance The desolvation capillary through which ions are guided into the MS can be quickly replaced without breaking vacuum. (*) Collision induced dissociation (CID) -fragments ionized compounds selected by the mass analyzer for further analysis. enabling data acquisition with up to 500 different channels per second. 2) User-friendly operation and maintenance Unified software for LC and LC-MS Software is a critical component with respect to analytical instrumentation. a collision gas is used to bring about collision induced dissociation (CID*) of ions in the cell. The LCMS-8030 provides ultra-fast MRM transitions. These features result in superior reproducibility for detection of peaks only one second wide or less. allows unattended. For example. 20 .

21 . Shimadzu has the highest market share in our domestic market for applications such as R&D and impurity analysis in pharmaceuticals and chemical synthesis for single quadrupole LC-MS. overseas visitors coming to Shimadzu and at overseas trade fairs where it is enthusiastically received. This new magazine has been developed in partnership with Nature. "A Collection from nature and SHIMADZU" contains some articles reproduced from nature interwoven with original Shimadzu articles. The letter-size. We expect to engage with the newly developed LCMS-8030 into the triple quadrupole market A Collection from nature and SHIMADZU (February 2011 ~) Customer-communication orientated magazine Shimadzu has published the international corporate magazine. our former corporate magazine. and replaces Innovation. the world-renowned science magazine.These are some of the highly-valued features of the LCMS-2020 which have been incorporated into the LCMS-8030 to provide users with easier operation and maintenance. "A Collection from nature and SHIMADZU". 12-page magazine is mainly distributed to overseas subsidiaries. and posted it on our corporate home page with the aim of establishing increased communications with overseas customers.

 To find and suggest the means by which Shimadzu Corporation could easily and effectively manage its receivables. CREDO  We build lasting relationships with customers based on trust and mutual benefit. 22 .  To estimate and evaluate the success percentage of extending credit. DELHI and to find out the reasons for growing bad debts. I was asked to set this objective so as to  To help Shimadzu Corporation in extending credit by observing their needs.OBJECTIVE OF THE STUDY The purpose of my research was to evaluate the monitoring techniques and collection strategy employed at BSO.  To identify the credit needs and requirements of the potential customers. if any.  Find out the satisfaction level from the Dealers and Customers who are already availing credit facility.  To know the views of Dealers and Customers of institutional segment regarding Shimadzu Corporation credit policy.

However.  difference in people's lives. We create and nurture a culture that supports flexibility. the more the credit granted by a firm. OBJECTIVES OF CREDIT POLICY The sale of goods on credit is an essential part of the modern competitive economic systems. As a marketing tool. WHY DO FIRMS EXTEND CREDIT? Companies in practice feel the necessity of granting credit for several reasons:  Competition: Generally the higher the degree of competition. The objective of credit sales management is to promote sales and profits until that point is reached where the return on investment in further funding. The credit sales are generally made on open account in the sense that there are no formal acknowledgements of debt obligations through a financial instrument. Management should weigh benefits as well as cost to determine goals of credit sales management.  advancement and rewards. extension of credit involves risk and cost. In fact. they are intended to promote sales and thereby profits.  We uphold highest ethical standards in conduct of our business. To meet the prevailing competition in the market the firms allows sales on credit also. credit sales are treated as a marketing tool to aid the sale of goods. learning and is We chart a challenging career for employees with opportunities for We value the opportunity and responsibility to make a meaningful proactive to change. 23 .

Sometimes companies continue giving credit because of past practice rather than industry practice. Company’s bargaining power: If a company has a higher bargaining power vis-à-vis its buyers. particularly when a new product is launched or when a company wants to push its weak  Industry practice: Small companies have been found guided by industry practice or norm more than the large companies. large size or strong financial position. Some of them take the help of banks to control cash flows in such situation. it may grant no or less credit.  Buyer’s status: large buyers demand easy credit terms because of bulk purchases and higher bargaining power. The company will have a strong bargaining power if it has a strong product. This is particularly so in the case of industrial products.  Transit delays: This is a forced reason for extended credit in the case of a number of companies in India.  Buyer’s requirements: In a number of business sectors buyers/dealers are not able to operate without extended credit. monopoly power. Companies sometimes extend credit to dealers to build long-term relationship with them or to reward them for their  Marketing tool: products. Credit is used as a marketing tool. brand image.  Relationship with dealers: loyalty. Most companies have evolved systems to minimise the impact of such delays. CREDIT SALES 24 . Some companies follow a policy of not giving much credit to small retailers since it is quite difficult to collect des from them.

Second. while the seller expects an equivalent value to be received later on.A MARKETING TOOL OF Shimadzu Trade Credit Trade credit arises when a firm sells its products or services on credit and does not receive cash immediately. A credit sale has three characteristics. the economic value in goods or services passes immediately at the time of sale. Trade credit creates accounts receivable or trade debtors (also referred to book debts in India) that the firm is expected o collect in the near future. it involves an element of risk that should be carefully analysed. To the buyer. it is based on economic value. A firm grants trade credit to protect its sales from the competitors and to attract the potential customers to by its products at favorable terms. trade debtors. Debtors constitute a substantial portion of current assets of several firms. Granting credit and creating debtors amount to the blocking of the firm’s funds. The interval between the date of sale and the date of payment has to be financed out of working capital. but not the credit sales as the cash payment are yet to be received. Third. acting as a bridge for the movement of goods through production and distribution stages to customers. 25 . First. after inventories. As substantial amounts are tied-up in trade debtors. The buyer will make the cash payment for goods or services received by him in a future period. They form about one-third of current assets in India. The customers from whom receivable or book debts have to be collected in the future are called trade debtors or simply as debtors and represent the firm’s claim or asset. it implies futurity. are the major components of current assets. For example in India. This necessitates the firm to get funds from banks or other sources. trade debtors represent investment. Thus. Cash sales are totally riskless. it needs careful analysis and proper management. It is an essential marketing tool.

Following points should be considered during evaluation:  Historic earning performance  Repayment history  Stable and reliable income  Sources of repayment  Projected earnings. Capacity: Capacity refers to the borrowers ability to pay. capital. Following points should be considered during evaluation: 26 . with some left for capital replacement and contingency. the collateral amount taken must comply with regulatory requirements i. and Earned net worth as a per cent of total net worth 3. The five C’s of credit which the credit manager evaluates in classifying loans are capacity. sources of repayment and earning history. 1. continue business operations and protection against undue risk. Capital: Capital relates to the ability to meet obligations. Collateral: Collateral is the security pledged on the loan where applicable. Following points should be considered during evaluation:      Assets/liability structure Working capital and liquidity Owner equity position Financial trends. including normal living expenses. character and conditions. The relative weight assigned to each credit factor varies with the circumstances of the individual situations. it should reasonably protect the lenders. and  Cash flow projections 2. Earning history should evidence that future income is sufficient to meet all obligations. The determination of repayment capacity requires an analysis of cash flow. collateral.e.Five C’s of credit Accurate credit granting decision requires an analysis of assets relative to the five credit factors.

Following points should be considered during evaluation:      Realistic production and financial goals Adequate financial records Proven management experience Borrowers marketing plan/approach. Character: Character refers to the borrowers integrity and management ability. additional collateral and insurance should be required a each situation warrants.     Reasonable lender protection Current and accurate evaluation reports Availability of additional collateral Collateral risk (potential to decline in value) Income producing and debt servicing ability of collateral 4. Conditions: Conditions include the amount of loan. Conditions such as loan agreements. However in most instance credit analysts do not actually appraise character-but rather the reflection of character as revealed by reputations and references. personal liability. use of proceed and loan terms over which lender has direct control. and Appropriate repayment plans/schedule Trade Credit Management 27 . Following points should be consider during evaluation:      Prudent and productive loan purpose Past experience in fulfilling conditions Loan maturities coinciding with the purpose of loan Proper structure of loans financing specific major capital items. Character is an important aspect of business credit decision. and Compliance with loans terms 5.

Under a highly competitive situation or recessionary economic conditions. there is a risk of bad debts also. therefore. It is not always possible to sell goods on cash basis only. But. Under these circumstances.In practice. Credit policy helps to retain old customers and create new customers by weaning them away from competitors. it is used to increase the firm’s market share. industrial practice etc. A concern is required to allow credit sales in order to expand its sales volume. Sometimes. for investment in receivables. The increase in sales is also essential to increase profitability. In a declining market. Thus. it is used to increase the firm competitors.A sound managerial control requires proper management of liquid assets and inventory. After a certain level of sales the increase in sales will not proportionately increase production costs. In a growing market. dealer relationship. These assets are a part of working capital of the business. buyer’s status and requirement. Trade Credit Management-A Marketing Tool Why at all do firms sell on credit? Firms use credit policy as a marketing tool for expanding sales. It is. other concerns in that line might have established a practice of selling goods on credit basis. An efficient use of financial resources is necessary to avoid financial distress. a firm has to incur certain costs. it may be used to maintain the market share. companies may grant credit for several other reasons such as the company position. receivables constitute a significant portion of current assets of a firm. a firm may loosen its credit policy to maintain sales or to minimize erosion of sales. it is not possible to avoid credit sales without adversely affecting sales. Receivables result from credit sales. transit delays. In a growing market. very necessary to have a proper control and management of receivables. The increase in sales will bring in more profits. 28 . Further.

extension of credit involves risk and cost. they are intended to promote sales and thereby profits. The firm following a liberal credit policy tends to sell on credit to customers on very liberal and standards. The term credit policy is used to refer to the combination of three decisions variables. Investment in accounts receivable will be high if customers are allowed extended time period for making payments. In contrast. If a firm has more slow-paying customers. Management should weigh 29 . The credit sales are generally made on open account in the sense that there are no formal acknowledgements of debt obligations through a financial instrument. credit are granted for longer periods even to those customers those creditworthiness is not fully known or whose financial position is doubtful. In fact. As a marketing tool. credit sales are treated as a marketing tool to aid the sale of goods. a firm following a stringent credit policy sells on credit on a highly selective basis only to those customers who have proven credit worthiness and who are financially viable. OBJECTIVES OF CREDIT POLICY The sale of goods on credit is an essential part of the modern competitive economic systems.  Collection efforts determine the actual collection period.  Credit Standards are criteria to decide the type of customers to whom goods could be sold on credit. the lower the investment in accounts receivable and viceversa. The lower the collection period. However. In practice. its investment in accounts receivable will increase.Credit Policy A firm may follow liberal or a stringent credit policy. The firm will also be exposed o higher risk of default. firms follow credit policies ranging between liberal to stringent.  Credit terms specify duration of credit and terms of payment by customers.

Despite of Higher Risk of Bad Debts Why Firm Grants Credit? There is a widespread recognition that corporate credit managers control one of the biggest.from importance of credit management and risk mitigation to effective credit policies and processes. is likely to become an even bigger issue for the survival and prosperity of most firms. riskiest and most important assets companies are likely to have. trade credit.benefits as well as cost to determine goals of credit sales management. Business leaders in all organisations. With the combination of topics covered . this Workshop will be valuable to those involved directly or indirectly in the credit function. efficiency and profitability thus credit policies and procedures can contribute to firms’ long term survival. The management of accounts receivable can have an impact on firms’ balance sheet structure. especially small and medium enterprises. This Workshop examines ways of managing and protecting this all important asset: accounts receivable in the context of the continuing decline in economic activity. especially small and medium enterprises. The objective of credit sales management is to promote sales and profits until that point is reached where the return on investment in further funding. especially in time of recession. Businesses that invest in their credit management policies and procedures minimise the risks of bad debts and slow payment. need to understand the contribution that credit policies and processes can make to their cash conversion cycle which is the ‘lifeblood’ of any business. If used effectively and proactively. 30 . formal credit policies have the potential to reduce this cycle that hold the key which can unlock very precious cash resources. Some of the reasons for bad debts and late payment relate to the management of the credit operation and/ or the lack of credit policies and processes. In downturns. improve cash-flows and credit performance. and especially late payment. their liquidity.

services.. products). signs. or ideas to satisfy needs and the impacts that these processes have on the consumer and society.g. brands.. How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. culture. experiences. use. and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. groups. family." 31 .g. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. The psychology of how the consumer is influenced by his or her environment (e. feel. One "official" definition of consumer behavior is "The study of individuals. and select between different alternatives (e. secure. media). reason.Consumer Behavior Concept Introduction The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how • • • • • • The psychology of how consumers think. or organizations and the processes they use to select. The behavior of consumers while shopping or making other marketing decisions. and dispose of products.

For example. because this may influence how a product is best positioned or how we can encourage increased consumption. friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). for making better marketing campaigns. Since many environmental problems result from product disposal (e. Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. aggressive marketing of high fat foods. A second application is public policy. 32 . we learn to schedule snack advertisements late in the afternoon. In the 1980s. by understanding that consumers are more receptive to food advertising when they are hungry.Although it is not necessary to memorize this definition.. or in the context of a group (e. may have serious repercussions for the national health and economy. For example.g. To get consumers’ attention. Accutane resulted in severe birth defects if taken by pregnant women. There are four main applications of consumer behavior: • • The most obvious is for marketing strategy—i.g.. Although physicians were instructed to warn their female patients of this. The impact of consumer behavior on society is also of relevance. Product use is often of great interest to the marketer. or garbage piling up at landfills) this is also an area of interest.e. Accutane. motor oil being sent into sewage systems to save the recycling fee. Unfortunately. or aggressive marketing of easy credit. was introduced.. a near miracle cure for acne. it brings up some useful points: • • • • Behavior occurs either for the individual. By understanding that new products are usually initially adopted by a few consumers and only spread later. the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Consumer behavior involves services and ideas as well as tangible products. to the rest of the population. since they will in turn influence many subsequent customers’ brand choices. and then only gradually. we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers. a number still became pregnant while taking the drug.

For example. we will also need to analyze our own firm’s strengths and weaknesses and those of competing firms. studying consumer behavior should make us better consumers. you often pay a size premium by buying the larger quantity. although we may have developed a product that offers great appeal for consumers. you should pay less per ounce than if you bought two 32 ounce bottles. As a result. a growing segment. To assess a competing firm’s potential threat. Culture and Subculture Culture is part of the external influences that impact the consumer. a marketing professor. for example. The best solution. knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.. Suppose. market knowledge. That is. however. obviously. was deemed to be infeasible. technology. went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. is likely to consider repositioning toward our market. In practice. we need to examine its assets (e. Common sense suggests. we need to assess conditions (the marketing environment). Finally. 33 . would be if we could get illegal drug users to stop. This. Marty Fishbein. Dr. However. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them. a goal that was believed to be more realistic. In other words. using knowledge of consumer attitudes. a recession may cut demand dramatically. that we make a product aimed at older consumers. for example.g. however. There are several units in the market that can be analyzed. patents. awareness of its brands) against pressures it faces from the market. Our main thrust in this course is the consumer.• • Social marketing involves getting ideas across to consumers rather than selling something. A competing firm that targets babies. culture represents influences that are imposed on the consumer by other individuals. that if you buy a 64 liquid ounce bottle of laundry detergent. As a final benefit. a shrinking market. in this case.

” even though in most civilized countries this law. On the other extreme. women in some Arab countries are not even allowed to reveal their faces. Morality may be exhibited in the view in the United States that one should not be naked in public. We will consider the mechanics of learning later in the course. American culture has changed a great deal since the 1950s.” the name for China in Chinese. (3) Culture is manifested within boundaries of acceptable behavior. for example. the law that once banned interracial marriages in South Africa was named the “Immorality Act. (5) Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change. This means that all parts must fit together in some logical fashion. Notice. on the other hand. For example. may be reflected in the rather arbitrary practice of wearing ties in some countries and wearing turbans in others. In Japan. and any other capabilities and habits acquired by man person as a member of society. literally means “The Middle Kingdom.” is a system of interdependent components. that what at least some countries view as moral may in fact be highly immoral by the standards of another country. it may be believed that differences in outcome result more from luck. and any degree of explicit racial prejudice. Other issues are relevant.” From this definition. (2) Culture is learned rather than being something we are born with. as a “complex whole.” The belief among ancient Chinese that they were in the center of the universe greatly influenced their thinking. we make the following observations: • • • Culture. one cannot show up to class naked.S. morals. Culture has several important characteristics: (1) Culture is comprehensive. in American society.The definition of culture offered in one textbook is “That complex whole which includes knowledge. “Chunking. Art. For example. 34 . belief. bowing and a strong desire to avoid the loss of face are unified in their manifestation of the importance of respect. while the culture of Saudi Arabia has changed much less. In other countries. art. For example. would itself be considered highly immoral. (4) Conscious awareness of cultural standards is limited. but wearing anything from a suit and tie to shorts and a T-shirt would usually be acceptable. custom. groups of men and women may take steam baths together without perceived as improper. ranging from being hauled off by the police for indecent exposure to being laughed at by others for wearing a suit at the beach.. by the way. Knowledge and beliefs are important parts. Failure to behave within the prescribed norms may lead to sanctions. For example. One American spy was intercepted by the Germans during World War II simply because of the way he held his knife and fork while eating. In the U. we know and believe that a person who is skilled and works hard will get ahead.

When there is often a “grain of truth” to some of the perceived differences.S. and found that cultural differences tended to center around four key dimensions: • Individualism vs. countries fall on a continuum of cultural traits. Research in social psychology has suggested a strong tendency for people to perceive an “outgroup” as more homogenous than an “ingroup. so portraying it as “man’s best friend” in an advertisement is counter-productive. where there is a tendency to focus on the contents which “really count.S. seen as a reflection of the quality of the “real” product.g. For example.” even when they knew what members had been assigned to each group purely by chance. One may violate the cultural norms of another country without being informed of this. Hofstede’s research demonstrates a wide range between the most individualistic and collectivistic countries. When observing a culture. collectivism: To what extent do people believe in individual responsibility and reward rather than having these measures aimed at the 35 . Note. within the Muslim tradition. Hofstede’s Dimensions. Cultural characteristics as a continuum. the temptation to over-generalize is often strong. the dog is considered a “dirty” animal. one must be careful not to over-generalize about traits that one sees. and Japanese negotiator tend to observe long silent pauses as a speaker’s point is considered. Packaging. Warning about stereotyping. There is a tendency to stereotype cultures as being one way or another (e. a Dutch researcher. Culture is a problematic issue for many marketers since it is inherently nebulous and often difficult to understand. Cultural lessons.Dealing with culture. individualistic rather than collectivistic).. two speakers may unconsciously continue to attempt to adjust to reach an incompatible preferred interpersonal distance). the important thing here is the big picture.. for example—some fall in the middle. was able to interview a large number of IBM executives in various countries.. however. and people from different cultures may feel uncomfortable in each other’s presence without knowing exactly why (for example.” Many cultures observe significantly greater levels of formality than that typical in the U. We considered several cultural lessons in class. Gert Hofstede. Note that there are often significant individual differences within cultures. is considerably more important in Asia than in the U.

while “feminine” values involve harmony and environmental protection. and the Netherlands rate toward individualism. managers like to see quick results. slightly toward the masculine side. This is the case in the U.) Uncertainty avoidance involves the extent to which a “structured” situation with clear rules is preferred to a more ambiguous one. however. Japan is one of the more masculine countries. subject to some reasonable standards of diplomacy. often unconsciously. Chinese lacks many grammatical features. Britain and Hong Kong are lower. often accepting long periods before profitability is obtained. low context cultures: In some cultures. and the meaning of words may be somewhat less precise. The self-reference criterion refers to the tendency of individuals. while Japanese managers are known for take a long term view. ( The fact that these values are thought of as “masculine” or “feminine” does not mean that they are consistently held by members of each respective gender—there are very large “within-group” differences.—if you have something on your mind. Japan ranks very high. For example. “Masculine” values involve competition and “conquering” nature by means such as large construction projects. Japan actually ranks in the middle of this dimension. Although Hofstede’s original work did not address this. it may be very difficult for Japanese speakers to understand another’s written communication. Masculinity vs. countries with lower uncertainty avoidance tend to be more tolerant of risk.S. while it is more modest in Northern Europe and the U. High vs. Power distance: To what extent is there a strong separation of individuals based on rank? Power distance tends to be particularly high in Arab countries and some Latin American ones. 36 .S. while Indonesia and West Africa rank toward the collectivistic side.S.. In Japan. The U. English ranks somewhere in the middle of this continuum. while the Netherlands rank relatively low. “what you see is what you get”—the speaker is expected to make his or her points clear and limit ambiguity.S. is close to the middle. Few countries are very low in any absolute sense. to use the standards of one’s own culture to evaluate others. a fifth dimension of long term vs.S.S.• • • larger group? Contrary to the stereotype. In the U. The U. Britain. often a large correlation of these cultural values with the status of women. short term orientation has been proposed. Ethnocentrism and the self-reference criterion.. facial expressions and what is not said may be an important clue to understanding a speaker’s meaning. is in the lower range of the distribution. There is. in contrast. in general. Thus. femininity involves a somewhat more nebulous concept. but relatively speaking. The nature of languages may exacerbate this phenomenon—while the German language is very precise. and the U. you are expected to say it directly.

For example. Idioms involve “figures of speech” that may not be used. For example. In the United States. The important thing here is to consider how these biases may come in the way in dealing with members of other cultures. The psychologist expressed disgust that the cows were allowed to roam free in villages. It should also be kept in mind that much information is carried in non-verbal communication. Neologisms involve terms that have come into language relatively recently as technology or society involved. there are great differences between people who live in coastal and mountainous areas. The differences between U. Australian. so the notion of “in the ball park” makes sense here.. in Latin America. For example. seeking instead to preserve traditional values. however. although it turns out that they provided valuable functions by offering milk and fertilizing fields. In the 1960s. despite severe food shortages.” in other cultures. but something off-color in another. literally translated. for example. It should be realized that regional differences may be subtle. a supposedly well read American psychology professor referred to India’s culture of “sick” because. It may take longer for such terms to “diffuse” into other regions of the world. Within the context of language: • • • There are often large variations in regional dialects of a given language. In parts of the World where English is heavily studied in schools. the idea of an “add-on” became widely known. It should be noted that there is a tendency of outsiders to a culture to overstate the similarity of members of that culture to each other. we often underestimate the diversity within other cultures. there are also great differences between social classes. Language issues. but the term does not carry the same meaning in cultures where the sport is less popular.S. the practice is reversed. in other languages. we nod to signify “yes” and shake our heads to signify “no. we are well aware that there is a great deal of heterogeneity within our culture. Language is an important element of culture. the Hindu religion did not allow the eating of cows. 37 . one word may mean one thing in one Latin American country. With the proliferation of computer technology. baseball is a predominantly North and South American sport. and British English are actually modest compared to differences between dialects of Spanish and German.Americans may perceive more traditional societies to be “backward” and “unmotivated” because they fail to adopt new technologies or social customs. the emphasis is often on grammar and traditional language rather than on current terminology. so neologisms have a wide potential not to be understood. In some cultures. Ethnocentrism is the tendency to view one’s culture to be superior to others.

there is often a great deal of circularity. In Asian languages. not of poor organization. Again. where the individual is assumed to be more in control of his or her destiny than is the case in many other cultures. Instead.” Differences in cultural values result in different preferred methods of speech. I agree. opinions may not be expressed directly. A translator must keep “unspoken understandings” and assumptions in mind in translating.” Detours are expected and are considered a sign of class. regional variations are common and not all people in a region where slang is used will necessarily understand this. Because of differences in values. the Japanese word hai is literally translated as “yes. there is 38 . An introduction will often foreshadow what is to be said. For example. and Portuguese. or the socially accepted ways of writing. In American English. In Romance languages such as Spanish. there is an emphasis on organization and conciseness. speakers may hint at ideas or indicate what others have said. I hear what you are saying” (without any agreement expressed) or even “Yes.” To Americans. will differs significantly between cultures. There are often significant generation gaps in the use of slang. waiting for feedback from the other speaker before committing to a point of view. Here. this style is often considered “boring” and “inelegant.• Slang exists within most languages. a point is made by building up to it through background. Writing patterns. the word may mean “Yes.” To the Japanese speaker. and language structure. The intended meaning of a word may also differ from its literal translation. however. In English and Northern European languages. I hear you are saying something even though I am not sure exactly what you are saying. it is not possible to meaningfully translate “word-for-word” from one language to another. French. that would imply “Yes. Because of concerns about potential loss of face. assumptions.

The process is continued until the translated meaning appears to be satisfactory. will then translate from German to Mandarin.g. there is a greater tendency to settle issues as they come up. Different perspectives exist in different cultures on several issues. multiple translators are used. from German to Mandarin Chinese. there are explicit standards as to how a gift should be presented. in polychronic cultures. in Asia. while white symbols purity in the U. and multiple tasks may be performed simultaneously..a preference for the “active” tense (e. In some cultures. a third translator. felt obligated to try buy an airline ticket for a friend to go back to India when a relative had died. As a result. gifts should be presented 39 .S. people in European and some Asian cultures have fewer.D. who does not know what the original German text said. with limited income. keeping in mind this feedback. since you must be able to count on your partner being reasonable. student from India. If the meaning is not similar. in contrast. one Ph. some cultures have more rigid procedures than others. Americans will feel crowded where people from more densely populated countries will be comfortable. for example. A second translator.S. building a relationship of trust is more important in Asia.. (See text for more detail). promptness is valued less. Space is perceived differently. In the U.”) Because of the potential for misunderstandings in translations.. e. it is a symbol of death in China. and much of Europe. Symbols differ in meaning. In terms of etiquette. The text is first translated by one translator—say. Americans have a lot of quite shallow friends toward whom little obligation is felt. For example. it is dangerous to rely on a translation from one language to another made by one person. For example. In some countries. agreements are typically rather precise and contractual in nature.: • • • • • • Monochronic cultures tend to value precise scheduling and doing one thing at a time. “The marketing plan was written by me. will then translate back to German from Mandarin Chinese translation. “I wrote the marketing plan”) as opposed to the passive (e. Colors that are considered masculine and feminine also differ by culture. but more significant friends.g. The text is then compared.g. In the “decentering” method.

because a traditionally low status job as a plumber may today come with as much income as a traditionally more prestigious job as a school teacher. We cannot. where fewer non-retired people are around to support an increasing number of aging seniors. a manufacturer of baby food). Several issues are useful in the structure of a population. Here. where social status is in part reinforced by the class connotations of the accent with which one speaks.g. however. 40 . stratification is more clear-cut. and Taiwan.. In countries such as Korea. In the United States. in the forms of private to avoid embarrassing the recipient. Other countries such as Japan and Germany. and privilege. it puts pressures on society to accommodate an increasing number of people on a fixed amount of land. social class awareness is also somewhat greater in Britain. Gerber. Although the caste system in India is now illegal. problems occur for firms that are dependent on population growth (e. Demographics Demographics are clearly tied to subculture and segmentation. power. we shift our focus from analyzing specific subcultures to trying to understand the implications for an entire population of its makeup. While some mobility exists today. in contrast. a large percentage of the population is concentrated among younger generations. For example. status differentiations here are quite vague. population growth occurs both through births and immigration. In certain other cultures. in others. while in certain poorer countries. in some rapidly growing countries. the gift should be made publicly to ensure that no perception of secret bribery could be made. it still maintains a tremendous influence on that society. for women who have children. the German government has issued large financial incentives. Since the number of births is not growing. Because Germany actually hovers around negative population growth. China. this has helped stimulate economic growth. for example. Social class is a somewhat nebulous subject that involves stratifying people into groups with various amounts of prestige. however. associate social class with income. In part because of the pioneering influence in American history. experience problems with a "graying" society.

Textbooks speak of several indices that have been used to "compute" social class in the United States. Integrated voice response Collection by third party Lock box processing Customer orientation Good customer relations Better customer knowledge Better debt management 2. by several different variables. iii. they illustrate the reality that social status is a complex variable that is determined. assess and evaluate risk because a proper risk assessment opens 41 . and level of education.  Centralized processing for finance function such as accounts payable and accounts receivables. not always with consensus among observers.  Alternative payment strategies i. iii.  i. Evaluation of Risk: Branch manager at SHIMADZU needs to properly identify. Direct debit ii. Re-engineer Receivable Process: Re-engineer is a fundamental rethink and re-design which incorporates modern business approaches. more broadly speaking. the nature of one’s employment. I recognized certain loopholes regarding the practice of receivables management at SHIMADZU. Nature of credit sales is such that decision made elsewhere in the organization are likely to affect the level of resources that are expended on the management of credit sales. so I am giving following suggestions: 1. Taken too literally. weighing factors such as income. iv. ii. these indices are not very meaningful. Following practices present opportunities to improve the account receivable function in SHIMADZU. Suggestions and Recommendations After completing my summer internship programme at SHIMADZU.

3. Use of latest technology: Advances in technology present and opportunity for improvement in credit sales management. Electronic Catalogue System (ECS)  Accounts Receivables System: SHIMADZU BSO should develop and maintained automated receivable system. A proper assessment of risk can be made by maintaining database of current and prospect customers. knowledge based system such as SAP. PEOPLE SOFT. Any delays that lengthen this span cause receivables to build to unnecessary high levels and increase the levels of bad debts. Electronic data interchange (EDI) iii. These delays 42 . Electronic fund transfer (EFT) ii. Restructuring of Receivable Collection Practice: The fundamental rule of sound credit sales management is to minimize the time span between sale and collection. ORACLE. Major components of effective database are:  Billing name and address  Credit information  Place of purchase  Date of purchase  Special service requirements  Method of payment  Payment history  Customer type This database will need to be regularly maintained and updated. Manager at SHIMADZU can used following tools made available by E-commerce: i. They should spend on enterprise. to support trading and goods and services.the way for efficiency and effectiveness benefits in the management of credit sales. particularly on an inter-organizational basis. 4. The principal innovations available are:  E-commerce: It is a term applied to the use of computer and telecommunications technology. These integrated systems will automatically update all the accounting records affected by transactions.

This should be both from your own and your customers' points of view. Conducting a SWOT Analysis A SWOT Analysis takes is a method for examining the Strengths.are caused by customer and employee both.  What distinct advantages does your company offer?  Why do customers say they enjoy doing business with you?  Is there anything you currently offer that can not be copied by a competitor. and Threats facing a business. Opportunities. Weaknesses. be realistic. When carrying out a SWOT analysis to determine how you rate against a competitor. Don't be modest. It can give insight into company’s position in the competitive arena. the following guides should be used: Strengths Consider your strong points. Receivable practice at SHIMADZU can be made more efficient by implementing following points:  Prompt invoicing  Open account  Credit terms  Periodic statement  Use of payment incentive and penalties  Record keeping and continuous accounting  Business Process Outsourcing (BPO) ANALYSIS AND INTERPRETATIONS SWOT ANALYSIS I. now or in the future? 43 .

such as a downturn in the economy. but also from the perspective of your competitors. Many times they're out of our control.  What and where are the interesting opportunities in your market?  What are the important trends occurring in your local area as well as across the nation?  What do you anticipate happening in the future that may represent an opportunity? Threats Although we don't like to think about them.  What does your company do that can be improved?  What does your company do poorly?  What should be avoided?  What do your competitors do better than you?  Do competitors have a particular market or segment locked up? Opportunities Next consider the areas in your market that offer you room to grow. It's sometimes difficult to think about and discuss your weaknesses. but it is best to be realistic now and face any unpleasant truths as soon as possible. or perhaps a new mega-corporation opening in your local area. such as the closing of a store near you. a shift in market demographics.Weaknesses Evaluate your company's weaknesses not only from your perspective. 44 . changes in government policy related to your industry. It is critical to think about and be prepared for such events. and local events. changes in social patterns demographics and customer lifestyle changes. we all face threats in our businesses. Opportunities can come from changes in technology and markets on both a broad and narrow scale.

weaknesses. What are the obstacles that your company faces?  What is your competition doing that could take business away from you or stunt your company's growth?  Are the required specifications for your products or services changing?  Is the changing technology threatening your position in the market?  Do you have cash flow problems that could keep your company from acquiring new technology. opportunities and threats that you've just identify. The SWOT matrix is constructed by creating a table showing the strengths. The matching process can be greatly facilitated by the construction of a SWOT matrix. staff or equipment? The primary strength of SWOT analysis arises from matching specific internal and external factors and evaluating the multiple interrelationships involved. SWOT ANALYSIS OF SHIMADZU 45 .

Stiff competition from other players in the industry who are . Default rate is negligible in case of credit sales of SHIMADZU 3.Good Customer Relationship(10% of customer give 90% of business) Opportunity 1. 2. Export consolidation Weaknesses 1. Statutory monopolies.Exclusive licenses and strong brand 4.Growing domestic demand and increasing export 3. Unscientific mining. high cost of Threats 46 1. mature production base.. Abundance of quality manpower.Customers prefer SHIMADZU than other private players 6. availability of iron ore and coal. low R&D investments.Grasping new technological equipments 5. low productivity. Booming Real Estates and Infrastructure can give indirect benefits 6.Expanding market 4.Strengths 1. 5. Unexplored rural market 2.

47 .

Hence Business with small dealers is beneficial. Therefore each Branch Sales Office used to supply lesser than the goods demanded by the customers. The in depth study of payment terms and trends related to customers which were the debtors of SHIMADZU conveys that there is negligible amount of annual bad debts due to stringent credit policy followed by SHIMADZU. But there is always need of sufficient cash inflow for the smooth and efficient carrying of production process. SHIMADZU has strong bargaining power against the buyer as it has always witness excess of demand over supply. which help in enriching good cash inflow. After the study of various customers small dealers are appreciated as the orders are small and payment can be received completely in advance for the order execution. Financial Incharge after giving series of reminder encash these financial documents to make their debts a good one. As we know credit extended at SHIMADU are backed by Bank Guarantee or letter of Credit so as soon as customers try to avoid their due payments. and growth of the business in return. Shimadzu have very strict terms and conditions which emphasis on the timely recovery of debt. receivables are treated as marketing tool and aids to sales growth. This crafts need for studying the payment terms and trends of various customer segment.Findings and Conclusions The credit forms an essential part of the modern competitive economic systems. In fact credit sale and therefore. 48 .

It would be more profitable if the payment terms of public sectors segment customers are revised accordingly and they are agreed on the terms that ensures regular inflow of money and keeps the contract cash rich.Customers of public sectors undertakings are granted with more liberal/nonrestrictive credit terms as no advance received even though the contract value are of large as compared to Private customers. 49 . Industrial customer and Small customer segment and they also enjoy the benefits of Interest Free Charge (IFC) for certain period. Which implicated cost and has led to the blocking–up of funds for extended period. Mostly public sectors customers were found to be late payers of dues in most of the cases so this matter needs to be looked upon and certain strict measures need to be taken as they are the one which buy in bulk and are regular customers of SHIMADZU.


QUESTIONIER 1) Name---------------------------------------------- 2) Age------------------------------------------ 3) Location-------------------------------- 4) Profession---------------------- 1) Which country linen aircraft equipment is imported from? A)Italy nd Japan B)US C)France D)None 2) Which advertising medium do you think is the most effective for fabric? 51 .

............... 52 ..........A)Tv B)Radio C)Newspaper D)Magazine E)Online 3) What country does linen come from? A)Egypt B)Italy C)France D)None 4)Last time where you have notices Linen Club Advertisement? A)TV B)Hoardings C)Magazine D)Friends mouth F)Internet G)Did not noticed E)Word of 5) Do you feel linen is more eco-friendly in comparisons to others? A)Yes B)No C)Cant say 6) What payment methods does Linen Linen accept? A)Online B)By mail 7) What do you think which media is more effective? A)Tv B)Radio C) Television D)Hoardings E)Online 8) What is your suggestion to increase the Awareness of growth technology?...................

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