Chapter I

1.1 Industry profile.

Health care systems are designed to meet the health care needs of target populations. There are a wide variety of health care systems around the world. In some countries, health care system planning is distributed among market participants, whereas in others planning is made more centrally among governments, trade unions, charities, religious, or other coordinated bodies to deliver planned health care services targeted to the populations they serve. However, health care planning has often been evolutionary rather than revolutionary.

1.1.1 Goals of healthcare industry.

The goals for health systems, according to the World Health Report 2000 - Health systems: improving performance (WHO, 2000), are good health, responsiveness to the expectations of the population, and fair financial contribution. Duckett (2004) proposed a two dimensional approach to evaluation of health care systems: quality, efficiency and acceptability on one dimension and equity on another.

1.1.2 Healthcare industries in India.

The Indian healthcare industry is a US$ 35 billion industry and is anticipated to reach US$ 75 billion by 2012. This sector thus provides a lot of potential as Indians are becoming more health conscious and vying for better amenities. To address the increasing demands of this sector, India needs about US$ 50 billion annually. The healthcare system is practically non-existent in rural India. With a rise in India's economy and rural infrastructure, the healthcare industry is stated to grow exponentially in this area. Thus, there is a need for investment in infrastructure, equipment, and technological areas. The public healthcare system is overburdened and also lacks technological support. The entry of private equity has enhanced the healthcare industry of India further. In addition, healthcare majors have released IPOs (initial public offerings) trying to tap the potential of this field further.

With growing consciousness about the health hazards and illnesses that can befall them, Indians are recognizing the benefits of health insurance. Thus, this sector shows lots of promise. The health insurance industry is going to reach US$ 5.75 billion by 2010 according to a study by the Chamber of Commerce, PhD department. Also, with the stress- and lifestyle-related illnesses on the rise, this sector is gaining more popularity. International giants, such as AIG, have partnered with the Tata group. Other such collaborations are Bajaj Allianz and Aviva. More people are going for insurance to help secure their healthcare needs. Thus, this industry is a major investment area. The pharmaceutical industry is also gaining in prominence. With skilled labour available and low research costs this is a nice investment option. The production costs and technologically sound infrastructure make it a viable option. Indian healthcare systems like ayurveda and homeopathy are increasingly gaining prominence overseas. More patrons abroad are going for these alternate therapies as they are completely natural and have no side effects. As they are derived from plant extracts and have been in existence for a long time, more people are recognizing the potential of this field. Thus, this offers good scope. Another area for investment in India is the research industry. With a huge talent pool and the rise of biotechnology and bioinformatics in India, this offers tremendous growth prospects. Yet another area is the export of medical equipment to India. There is a demand for more technologically sound instruments in India. With the rise of high-end hospitals, this offers immense prospects. And with patients vying for quality healthcare facilities and hospitals this is an expanding field. India is also a rising destination for medical tourism. With affordable medical expenses and a sound technology in place, this is a growing sector. This bodes well for the healthcare industry in India. There are no inhibiting factors for foreign investment in this industry unlike other industries. The absence of regulatory laws is an encouragement. The government recognizing the need for technological advances in this sector has granted many relaxations.

Thus, overall the healthcare industry is going to grow exponentially and offers good investment potential for foreign investors in India. The government of India has taken several initiatives to attract foreign investments in India. Not only foreign establishments but also entrepreneurs from India can reap the benefits of the growing Indian Market.

1.1.3 Emerging trends in the healthcare devices industry.

The trends are different in different geographies, as the value sought by the consumers and the market drivers remain unique. The demand for medical equipment from emerging countries will outpace demand from developed countries in the next 5 years. While the U.S. and Europe markets are growing at 7-8percentage a year, Indian and Chinese markets are growing at 25percentage a year. With 50percentage of the global population slated to be over 65 years in 2039, the Medical Devices Industry in developed nations is undergoing a strategic change with the focus of the industry moving from diagnosis to prevention. With a large aging population and the increased incidence of lifestyle and chronic diseases, innovations that reduce or eliminate hospital stays will be critical: remote healthcare, wireless enablement, minimally-invasive treatments. Increased focus on preventive care is forcing growing investments in products/solutions for home care, remote monitoring, tele-health and self monitoring. The demand for self medication and home-based treatment is increasing, with more and more patients resorting to both the diagnosis and treatment of specific diseases at home. Driven by an increasing awareness of lifestyle disorders and familiarity with new technologies through use of the Internet and consumer devices like MP3 players, gaming devices, smartphones, people are likely to adopt more sophisticated devices to self-monitor their health conditions. The rapid technological developments that home-use devices such as glucose monitors, insulin delivery devices, nebulizers and oxygen concentrators have undergone is contributing to this trend. The use of remote communication technology to allow healthcare professionals to support home-based patients is further aiding to the preference for home and self-care. For consumers, this could mean convenience in time and travel and reduced healthcare costs, while for doctors; it could mean more efficient and effective healthcare, driven by patients who take greater responsibility for their own health.

The emerging markets on the other hand are responding to an entirely different set of drivers. On one front, there is a large population (1 billion+) that is waiting to be integrated with the healthcare system, thereby opening enormously large opportunities to sell medical devices. But the challenges are many and new. The price points in these markets need to be much lower compared to the western markets. The established practices of reaching out to the potential buyers and influencers (patients and care providers) will not be effective. The distribution strategies have to be re-worked. In order to meet all the challenges and make a successful foray into these markets, companies are changing their operating models for RandD, supply chain, manufacturing and business models. Driven by an ever expanding patient pool, improving healthcare infrastructure, rise in healthcare spending and enhanced health awareness and affordability these markets are expected to exceed USD 25 billion in 2016. Wipros decades of experience in consumer, wireless and mobile devices technologies, its proximity to one of the largest emerging markets (India) and its investments in solutions like remote monitoring, tele-health and disease management make it an ideal partner for enabling companies to meet the new challenges and make the best out of these exploding opportunities.

1.1.4 Growth of healthcare industry in India.

The rate of growth of the health care industry in India is moving ahead neck to neck with the pharmaceutical industry and the software industry of the country. Much has been said and done in the health care sector for bringing about improvement. Till date, approximately 12percentage of the scope offered by the health care industry in India has been tapped. The health care industry in India is reckoned to be the engine of the economy in the years to come. Health care industry in India is worth $17 billion and is anticipated to grow by 13percentage every year. The health care sector encompasses health care instruments, health care in the retail market, hospitals enrolled to the hospital networks etc.

1.1.5 Health care industry in India and the GDP or gross domestic product.
Expenses incurred by the Indian Government on health care is the highest amongst developing countries. India's expenses on health care sector comprises 5.25percentage of the GDP. Chances are that the health care market could experience a hike and attain a figure

ranging between $53 to $73 billion five years from now. This in turn will reflect an increase in the gross domestic product to 6.2percentage GDP. The health care industry in India earns revenues accounting for 5.2percentage of gross domestic product.

Employment opportunities are provided to as many as 4 million people in the health care segment or other related sectors catering to the health care industry in India in some way or the other. Owing to the vast differences in medical expenses in western countries and that of India, India has become one of the favourites for health care treatments.

Due to the progressive nature of the health care sector in India, several foreign companies are intending to invest in the country.

1.1.6 Challenges of healthcare industries. Political Impact.

The political debate during the election cycle will continue to make healthcare reform a major issue. Coverage for the uninsured, price transparency, competition, and healthcare technology are just some of the reforms being discussed. This year will mark the first time the combination of political will and patient unrest join together to catalyze the industry to seek a new path into the future. The challenges facing the healthcare industry would be insurmountable by virtually any other American enterprise.

High capital costs.

Depending on the region and real estate costs, an average hospital requires capital infusion of Rs 40 lakhs to a crore per bed (and even more). Industry estimates suggest that any hospital with capital costs of more than 50 lakhs per bed has high gestation period and even may be unviable. Land and building together account for almost 40 per cent of the total project cost and affects the viability depending on the resulting per bed cost.

 Medical equipment.
Contributing to almost 40 per cent costs in a tertiary setup, the medical equipment though cutting edge at the time of purchase poses the threat of inevitable obsolescence within five to seven years of setup. This problem is compounded by the fact the most of such equipment is imported and very few local reputed manufacturers exist. This will lead to apportioning to higher treatment costs and will further lead to lesser competitive edges and low utilisation rates resulting in an undesired operating margins.

Human resources.
As Dr Prathap Reddy puts it, "the biggest challenge for him and Apollo is filling the void of human resources". The fast-expanding domestic healthcare industry is the third largest employer, but is severely short of manpower, according to him.As per ministry of health, there is a shortage of approximately half a million doctors, a million nurses and the deficit needs to be filled in the next five years. Such shortage will lead to exponential salary hike demands, and further lead to high patient care costs. With organised sector being the preferred choice now, there will be a huge demand even for the skilled and quailed health administrators to run the show. Considering one skilled and quailed administrator is required for every 50 employees, there would be a requirement of almost 50000 such healthcare professionals in the near future. Highly regulated environment and unrealistic stringent norms and restriction of entry to the private entities in the field of medical education has led to further deficiencies in terms of number of skilled professionals being released for intake by various hospitals.

Conventional models of business.

Rarely an out-of-the-box idea of running a healthcare business is seen. Recent niche segments of single speciality centres (for eg. - focused on OBGY or other specialities (Cradle etc) have been very few. Even in the public health sector, millions of square feet of space is left unutilised, expensive equipment ill-maintained and lack of skilled professionals adding to the -woe, still do not find adequate initiatives happening towards outsourcing or even PPP.

Almost 90 per cent of private sector in India is run under the unorganised sector. The clinical establishment bill also has faced immense opposition and a professional healthcare consultancy firm guided healthcare business is not still seen frequently. The conventional model would need to be broken to mitigate the presently seen long gestation periods of five to 10 years of which almost three years are spent in project conceptualisation to commissioning. The conventional model of healthcare business would need to change to bring in untapped opportunities, operational efficiencies and better profitability. This would also attract better private equity which is now diverted to more lucrative industries. In the public healthcare sector the infrastructure is provided based on the size of the population instead of epidemiological profile. This many time results in under-utilisation of infrastructure, and ultimately not meeting the demands of the local population and drainage.

1.2 Company profile 1.2.1 Background and inception of the company:

The General Electric Company, or GE (NYSE: GE), is an American Multinational Conglomerate Corporation incorporated in the State of New York. The Company operates through five segments: Energy Infrastructure, Technology

Infrastructure, NBC Universal (NBCU), Capital Finance and Consumer and Industrial. In 2010, Forbes ranked GE as the world's second largest company (after JP Morgan Chase ), based on a formula that compared the total sales, profits, assets, and market value of several multinational companies. The company has 304,000 employees around the world.

Formation of the company

By 1890, Thomas Edison had brought together several of his business interests under one corporation to form Edison General Electric. At about the same time, Thomson-Houston Company, under the leadership of Charles A. Coffin, gained access to a number of key patents through the acquisition of a number of competitors. Subsequently, General Electric

was formed by the 1892 merger of Edison General Electric of Schenectady, New York and Thomson-Houston Company of Lynn, Massachusetts, and both plants remain in operation under the GE banner to this day. The company was incorporated in New York, with the Schenectady plant as headquarters for many years thereafter. Around the same time, General Electric's Canadian counterpart, Canadian General Electric, was formed

About Wipro GE Healthcare

Wipro GE Medical Systems Private Ltd. is a joint venture between GE Healthcare which has a 51 per cent stake and the remainder in the unit is held by Wipro Corporation, a unit of Wipro Ltd. (WIT), Indias third-largest software services exporter. GE Healthcare, a unit of General Electric Co. (GE), expects its Indian operations to post double-digit growth in revenues in coming years on the back of new launches. GE healthcare has its presence in many South East Asian countries. It has two units in India and 90percentage of its $420 million came from India last year. Daniel Peters, president and chief executive of GE Healthcares medical diagnostics division, said India has raised its importance in terms of growth opportunities for business. India is already known for its so called Medical Tourism, because you can have several kinds of surgeries done for a fraction of their cost in the west. This on top of the growing Health Care industry in India will be a major plus for this company. Down the road, this might be a major growth factor for Wipro as well.

1.2.2 Nature of the business carried:

Focus is to delivering world-class Health Care to South Asia. Wipro GE Healthcare, a joint venture between Wipro and GE, is part of GE Healthcare South Asia and caters to customer and patient needs with a commitment to uncompromising quality while providing superior customer and patient satisfaction delivered by highly energized team maximizing customer productivity with Six Sigma quality and uncompromising integrity. A US$100MM company, it is Indias largest medical systems sales and service provider and is the market leader with unmatched distribution and service reach in South Asia. Wipro GE,

which manufactures and exports products for global markets, pioneered the manufacture of Ultrasound and CT Scanners systems in India for global markets and regional markets respectively. Its business activities include: The design and manufacture of Ultrasound scanners Manufacturing of CT Scanners and non-invasive cardiology products like ECG, Fetal Monitoring systems etc. Software services and Technology solutions for GE products manufactured worldwide. Sales and service of the full line of medical imaging and Information technology products offered by GE Healthcare.

1.2.3 Vision, Mission, and Quality policy. Vision statement.

The corporate vision is 'We bring good things to life'.

Mission statement.
Values - Imagine, solve, build and lead - four bold verbs that express what it is to be part of GE. Their action-oriented nature says something about who we are and should serve to energize ourselves and our teams around leading change and driving performance. For more than 125 years, GE has been admired for its performance and imaginative spirit. The businesses that we invent and build fuel the global economy and improve people's lives. Today, we are 11 technology, services and financial businesses with more than 300,000 employees in 160 countries around the world.

What unifies GE? Our Actions and Values.

What we do and how we work is distinctly GE. It's a way of thinking and working that has grounded our performance for decades. It's a way of talking about our work and ourselves that takes the best from our past and expresses it in the spirit and language of GE today. It's about whom we are, what we believe, where we're headed, how we'll get there. It's how we imagine, solve, build and lead.

Imagine.
From the very beginnings of our company, when Thomas Edison was changing the world with the power of ideas, GE has always stood for one capability above all others - the ability to Imagine is a sense of possibility that allows for a freedom beyond mere invention. Imagine dares to be something greater. At GE, Imagine is an invitation to dream and do things that you didn't know you could do. Because at GE the act of imagining is fused with empowerment the confidence that what we imagine, we can make happen.

Solve.
Every business has to have a reason to exist a reason that answers the fundamental question of "why are we here?" For GE, the big question has a simple answer: We exist to solve problems for our customers, our communities and societies, and for ourselves.

Build.
From 0 to 60 in six seconds? Try zero to $5 billion in five years. It's not so much a vision for our future where we're headed is in many ways a reflection of where we've already been. It's not a destination. It's a quest. A quest for growth. And when we look to the future, we know that for us, there's only one way to get there.

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Lead.
Imagine. Solve. Build. Each of these is merely a word without one vital element. Lead, GE is already synonymous with leadership. But with this mantle comes responsibility. And it's not just a responsibility to maintain the status quo or manage what worked yesterday. It's the bigger responsibility to change. Because change is the essence of what it means to lead. It's a call to action that engages our unceasing curiosity, our passion, and our drive to be first in everything that we do. We Are a Company to Believe In.

Quality policy
At Wipro GE Quality is like integrity, is not negotiable. It re-iterated the ruthless and uncompromising approach that the organization follows towards quality. The quality initiative in Wipro GE comes under an umbrella called Mission Quality. The word Mission is consciously introduced and repeatedly stressed upon, to communicate the missionary zeal that was required to achieve a paradigm shift in our approach to quality. The philosophy was to make quality everybodys business-not just in products but in every aspect of work. In Wipro GE, customer centric quality is embedded at all manufacturing and distribution facilities. At the operational level, building in a culture of quality consciousness is realized through ISO certification for processes and product certification for critical products.

1.2.4 Products/service profile.

Computed Tomography Scanner Magnetic Resonance Imaging Apparatus Mammography unit Cardiac and Vascular Angiography system (Cathlab) Color Doppler Ultrasound Scanner Positron Emission Tomography (PET) Equipment Ventilators used with Anesthesia apparatus

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 X-Ray generators and apparatus (non portable) Ultrasound Scanner (Black and White).

1.2.5 Area of operation

Wipro GE operates both nationally as well as globally. Nationally inside India its various branches are found in Delhi, Mumbai, Pune, Ahmadabad, cochin, Secunderabad, Jaipur, Chandigarh, Bhopal, Lucknow, Calcutta, Patna and Chennai. Globally its operational activities are found in various different countries like India, Srilanka, and Bangladesh.

1.2.6 Ownership pattern.

GE holds 51percentage stake and the rest 49percentage is with (Q,N,C,F)* Wipro in their joint venture, Wipro GE Healthcare, which distributes 85percentage of GE`s various healthcare and medical diagnostic products in India. Wipro GE Medical Systems Private Ltd. is a joint venture between GE Healthcare which has a 51 per cent stake and the remainder in the unit is held by Wipro Corporation, a unit of Wipro Ltd, Indias third-largest software services exporter. GE Healthcare, a unit of General Electric Co, expects its Indian operations to post double-digit growth in revenues in coming years on the back of new launches. GE healthcare has its presence in many South East Asian countries. It has two units in India and 90percentage of its $420 million came from India last year. Daniel Peters, president and chief executive of GE Healthcares medical diagnostics division, said India has raised its importance in terms of growth opportunities for business. India is already known for its so called Medical Tourism, because you can have several kinds of surgeries done for a fraction of their cost in the west. This on top of the growing Health Care industry in India will be a major plus for this company. Down the road, this might be a major growth factor for Wipro as well.

1.2.7 Competitors of Wipro GE Healthcare. Philips:

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Koninklijke Philips Electronics N.V. (Royal Philips Electronics Inc.), most commonly known as Philips, (Euronext: PHIA, NYSE: PHG) is a Dutch electronics company. Philips is one of the largest electronics companies in the world. In 2007, its sales were 26.79 billion. The company employs 123,800 people in more than 60 countries. Philips is organized in a number of sectors: Philips Consumer Lifestyle (formerly Philips Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Lighting and Philips Healthcare (formerly Philips Medical Systems). Philips Healthcare (formerly Philips Medical Systems) makes it easier to get a look on the inside of things. Its parent company, Royal Philips Electronics, developed the first X-ray tube for medical use in 1896. Today, Philips Healthcare is a top global maker of medical imaging equipment, including X-rays, ultrasound, MR (magnetic resonance), and CT (computed tomography) scans. The firm also makes patient monitors, resuscitation products, and data management systems, and it offers consulting, financing, training, and maintenance services. Philips Healthcare accounts for a quarter of its parents sales and has operations in more than 60 countries.

Siemens
Siemens Healthcare (formerly Siemens Medical Solutions, formerly Siemens Medical Systems, internally within Siemens known as "Med") is a supplier to the healthcare industry, and is headquartered in Erlanger, Germany. Prior to being acquired by Siemens in 2000, the company was known as Shared Medical Systems Corporation and traded on the New York Stock Exchange as "SMS". Currently, its U.S. division, Siemens Healthcare USA, Inc., is a Delaware corporation, with headquarters in Malvern, Pennsylvania. The Ultrasound Group is located in Issaquah, Washington. The company dates its early beginnings to 24 May 1877 to a small family business in Erlangen, co-founded by Ernst Werner von Siemens. The name Siemens Medical Solutions was adopted in 2001, and the change to Siemens Healthcare is part of reorganization underway in 2008.President and Chief Executive Officer (CEO) of Siemens Healthcare USA, Inc. is Hermann Requardt.

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Globally it has 49,000 employees, most of them in Germany (comparing to 46,000 at GE Healthcare and 33,000 at Philips Healthcare) and 17.2 billion US-$ sales in 2007 (16.997 billion US-$ for GE). Mein Gott, it's another Siemens company! Siemens Healthcare (formerly Siemen s Medical Solutions) is the medical products arm of German electronics giant Siemens AG. The group makes and markets a wide range of medical equipment to diagnose and treat disease, including imaging systems (x-ray, MRI, and ultrasound), radiation therapy equipment, hearing aids, respiratory machines, and patient monitoring systems.

Toshiba
Toshiba Corporation (Japanese Kabushiki-geisha Toshiba?) (TYO: 6502)

(Pronounced: Toe-She-buh; Japanese pronunciation closer to: TOH-she-bah) is a Japanese multinational conglomerate corporation, headquartered in Tokyo, Japan. The company's main business is in infrastructure, consumer products, electronic devices and components.

Toshiba America Medical Systems (TAMS) can see right through you. The company, a subsidiary of Toshiba America, is a leading provider of diagnostic imaging systems in the US. Products include computed tomography (CT), magnetic resonance (MRI), ultrasound, and x-ray imaging systems. The company's Infinix-i catheterization laboratory (Cathlab) suites are used by clinics specializing in non-invasive cardiac procedures. TAMS markets, distributes, and services its equipment and provides training and continuing education. The company also provides information technology support services, and it is active in clinical diagnostic imaging research. Toshiba-made Semiconductors are among the Worldwide Top 20 Semiconductor Sales Leaders. Toshiba is the world's fifth largest personal computer manufacturer, after HewlettPackard of the U.S., Acer of Taiwan, Dell of the U.S., and Lenovo of China. Toshiba is a diversified manufacturer and marketer of advanced electronic and electrical products, spanning information and communications equipment and systems, Internet-based solutions and services, electronic components and materials, power systems, industrial and social infrastructure systems, and household appliances.

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AGFA
Agfa-Gevaert N.V. (Agfa) (Euro next: AGFB, FWB: AGE) is a European multinational corporation that develops, manufactures, and distributes analogue and digital products and systems for the making, processing, and reproduction of images. It is an imaging technologies company with three main divisions: Healthcare, Graphics, and Materials. Agfa health care consists of: Digital Radiography modality (DR). Computed Radiography modality (CR). PACS systems for radiology and cardiology. Hospital Information System (HIS) named ORBIS. Information systems for radiology and cardiology. Radiology dictation and reporting systems utilizing speech recognition. Message-based connectivity broker. Protected Health Information auditing system. Conventional radiology film and film developing equipment. Film and paper printers. Orthopedics workstation. Women's Care (mammography) products. ECG Management system.

1.2.8 Infrastructural facilities

2,790,000+ sq.ft. Of state-of-the-art development facilities in 25 locations in India. 0.12 million+ LAN points across the globe connecting nearly 19000+ desktops and laptops, and 19000+ servers. Intranet 300 Mbps+ inter office links (Built in redundancy and auto fall back). Extranet 175+ customer connections.

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 . Annual revenue of USD 300 million for the year 2007-08. Preferred suppliers for global OEMs. Two States of-the art manufacturing locations across India. More than 2000 committed and skilled manpower.

1.2.9 Achievement / Award.

Management award in May 2000 for outstanding performance for meeting deliveries. In 2000 Wipro GE ultrasound as a Best factory span. President award in 2001 as recognition of outstanding competitiveness and receiving FDA approval. Management award to production team for performance in fulfilling Russia order in 2001. President award in 2003 for outstanding business results. Special achievement award in 2004 India- Global star EHS. Team award of 2004 for excellence in implementation of Kaizen rule. Wipro GE was recognized as a top second largest exporter of electronic hardwares in Karnataka by Soft ware Technological parks of India. In 2005 Quality award, Leadership quality stems excellence. Management award on 24th March 2005 to ultrasound India production team for their outstanding contribution towards introduction of Linux based CPU for LOGIQ-100. In 2006 Growth award for Bangalore team. Unit volume-organic growth. In 2007 Global ultrasound probes business award called as Simplification award. FICCI Award in September 2010.

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1.2.10 Work flow model.

PROCESS FLOW CHART FOR RECEIVING IMPORTED MATERIAL
Entry at main gate for Incoming materials
SECURITY PERSONNEL

Is the Material Imported ?

At each stage of bonding Place Appropriate sticker on each consignment

Check for BOE, Invoice, HAWB, Packing

Check for pkg. condition, No. of boxes & documentation. Place Bay Location on Invoice Stores

Y
Incase of Physical damage to carton box the same shall be informed to Materials & Quality department & Move the shipment to Quarantine area. follow the procedure "SOP-MQ-96"

Enter document details in Inw ard goods Register

Is there document error ?

STORES

Inform materials leader & get corrected documents

Stores

Is material for EHTP consumption ?

Is there any discrepancy in the quantity ?

Submit BOE to customs

EHTP

Inform Buyer to get corrected documents from supplier.

MATERIALS

Get Open Examination Order from Customs

EHTP

Perform OE in presence of Customs Inspector

MATERIALS

Is there any discrepancy in the qty ?

EHTP to apply f or modif ication of BOE or Duty pay ment with corrected documents

Inform Buyer to get corrected documents from supplier

On receipt of corrected documents f rom Supplier EHTP to prov ide Bond Number EHTP

Customs Inspector w rites his report

EHTP to make Warehousing Certificate

STORES

Forward original documents to Finanace for payments and Move the materials to respective stores physically

Affix dark Green Sticker on package

STORES

Prepare GRN in Oracle

STORES

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1.2.11 Future growth and prospects.

Going forward, what would be the strategy for growth of your India business? We are currently focusing on three things to drive our business growth here, access, quality and affordability. In healthcare, affordability is a challenge that we have to constantly meet. With more than 600 million people in the country, having almost little to healthcare, we have to focus on making it affordable. We try to look at the challenges in the market, and then design a product that would fill the need gap. As for example, we checked out that infant mortality is major problem with more than 5 per cent infants dying in the country. The Lullaby Baby Warmer, that we used to import earlier, used to cost $30,000. But, now we are manufacturing it in India specially customized for the Indian market and the cost has come down $ 3,000. The new design is based on the market requirements here. We call it the incountry- for- country products. These products have features that one needs to have rather than those that are nice to have. Wipro GE Healthcare typically invests some $15-20 million every year in India on research and capacity expansion. This investment will continue. In fact, this might even go up, as we move towards a greater play in manufacturing and product development in India. There are also plans to assemble some of the hi-end products like MRI machines and Cathlab in India, undertake quality check and roll them out in the market. We will also locally source components for these products. In fact, our sourcing from India for the healthcare business is already worth $150 million.

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Chapter II

2.1 Mckensys 7s framework of the company.

The 7S model is better known as McKinseys 7-S. This is because two persons who developed this model, Tom Peters and Robert Waterman, have been consultants to McKinsey and Co, at that time they published their 7-S model in their article Structure in not organization ( 1980 ) and in their book The Art of Japanese Management (1981) In search of Excellence ( 1982). The model starts on the precise that an organization is not just structure, but consist of 7 elements: Strategy, Structure, System, Style, Staff, Skill and Shared values. These 7 elements are distinguished as Hard Ss and Soft Ss. The Hard elements are feasible and easy to identify. They can be found in Strategy, Statements, Corporate plans, Organizational charts, and other documentations. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact on the Hard Ss- Structure, Strategy and System of organization.

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Description - The Hard Ss. Strategy: Actions company plans in response to or anticipation of changes in its external
environment.

Structure: Basis for specialization and coordination influenced primarily by strategy and
by organization size and diversity.

Systems: Formal and informal procedures that support the strategy and Structure. The Soft Ss: Style: The culture of the organization consists of 2 components:-Organization Culture: The
dominant values and norms, which develop over time and become relatively enduring features of organization life. Management Style: More a matter of what manager do than what they say; how do a companys managers spend time? What are they focusing attention on? Symbolism: The creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of mangers.

Staff: The people / human resource management processes use to develop mangers
socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the Co., ways of helping to manage the career of employees.

Skills: The distinctive competencies what the company does best, ways of expanding or
shifting competencies.

Shared values: Guiding concepts, fundamental ideas around which a business is built
must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not seem to understand them. The 7-S model is a valuable tool to initiate change processes and to give them direction. A helpful application is to determine the current state of each element and to compare this with the ideal state. Based on this its possible to develop action plan to achieve the intended state

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Application of McKinseys 7S in Wipro GE:

1. STRUCTURE The basic organization of the Wipro GE is divided into, its departments, reporting lines, areas of expertise, and responsibility and how they inter-relate. Organizations are economic and social entities in which a number of persons perform multifarious tasks in order to attain common goals. Organization structure in Wipro GE can be designed on the basis of departmentalization and relationships. Departmentalization is the process of dividing work of an organization into various units or departments. Relationship is the process of organization brings relationship among employees at different levels, materials, money and machines.

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DIRECTORS DIRECTORS CEO CEO

Business Heads

CFO

HR Department

Sales Manager

Service Manager

Marketing Manager

Business team leader

Finance Manager

Finance Controller

Taxation Manager

HR Manager

Finance Analyst
Installation Manager Logistic Manager Marketing Executive

Tax analyst HR Executives

Finance Analyst
Service Engineers

Logistic Executive

Administration Manager

Branch Controller

Administration Executive

Production Manager Sourcing Manager

Commercial Officers

Design Engineers OTR Manager Sourcing Manager Material handlers

OTR Executives
Sourcing Executive

Test Engineers Store Management

R & D Manufacturing Teams

OTR Manager

OTR Executives

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2. SYSTEMS In Wipro GE the formal procedures that Govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customers. Company is following various systems for various departments. In Marketing department the company is following Decision support system, for analyzing sales demand for product etc.. In Production department the company is following system such as inventory control, production planning and control. Financial system followed by company is through banks and generates funds by its own. Wipro GE has the quality system in keeping with national and international standards. Company has been certified with ISO 9001- 2000 from DNV [Det Norske VERITAS].

3. STRTATEGY The direction and scope of the Wipro GE over the long term. Strategy can be defined as the set of actions a company plans in response to anticipation of changes in its external environment. Strategy also defines how company achieves its vision and responds to the threats and opportunities of the new medium. Strategies applied by the Wipro GE to achieve the market leadership are Produce high quality health care products Provide higher employee satisfaction Reduce cost of production Continuous improvement for achieving quality Provide Quality products at minimum possible price Provide customer satisfaction.

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4. SKILLS As the company Wipro GE mainly deals with production process, the skills of employees are functional in nature. These skills are mainly technical skill that is machinery its working, its maintenance etc. The other skills such as professional skills are required in office works such as computer operations, accounting etc. The other skills required are Managerial skills Operative skills Marketing skills.

5. STAFF The Companys people resources and how they are developed, trained, and motivated. Presently there are 1800 to 2000 employees working in Wipro GE, who are performing their job in different sectors like Production, Marketing, Finance, Human resource, Office and administration, Maintenance etc.

6. STYLE: The leadership approach of top management and the companys overall operating approach. Wipro GE is following Participative style. Company is encouraging all levels of management to participate in almost all their process. Company considers suggestions of the workers while taking decisions.

7. SHARED VALUES The values and beliefs of the Wipro GE ultimately guide its employees towards Valued behavior. To create a culture among its employees that they are responsible and committed to the cause of the company and society.

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Chapter III 3.1 Swot analysis

Strengths
The strengths of a business or organization are positive elements, something they do well and is under their control. The strengths of a company or group and value to it, and can be what gives it the edge in some areas over the competitors. The following section will outline main strengths of General Electric. Having alliances with other strong and popular businesses is a major plus point for General Electric as it helps bring in new customers and make business more effective.

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 Being a market leader, as General Electric is, is key to their success as it boosts reputation, profit and market share. The services/products offered by General Electric are original, meaning many people will return to General Electric to obtain them. Experienced employees are key to the success of General Electric helping to drive them forward with expertise and knowledge. High quality machinery, staff, offices and equipment ensure the job is done to the utmost standard, and is strength of General Electric. General Electric has an extensive customer base, which is a major strength regarding sales and profit. General Electrics reputation is strong and popular, meaning people view it with respect and believe in it. Being financially strong helps General Electric deal with any problems, ride any dip in profits and out perform their rivals. A strong brand is an essential strength of General Electric as it is recognized and respected. General Electric has a high percentage of the market share, meaning it is ahead of many competitors. High quality products/services is a vital strength, helping to ensure customers return to General Electric. General Electrics international operations mean a wider customer base, a stronger brand and a bigger chunk of the global market. Development and innovation are high at General Electric with regard to their products/services, which is a sure strength in its overall performance. General Electrics position in the market is high and strong a major strength in this industry as they are ahead of many rivals. The online presence of General Electric is strong, meaning it is ahead of many competitors. Strong Research and development department Acquired number of businesses Employee base of 323,000 employees High revenues and profits Strong organizational structure and culture

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Weaknesses Weaknesses of a company or organization are things that need to be improved or perform better, which are under their control. Weaknesses are also things that place you behind competitors, or stop you being able to meet objectives. This section will present main weaknesses of General Electric Problems with stock are a weakness for General Electric as they need to keep up with demand. GE performance in Asian market is not up to the mark Low stock prices due to the financial downturn

Opportunities Opportunities are external changes, trends or needs that could enhance the business or organizations strategic position, or which could be of a benefit to them. This section will outline opportunities that General Electric is currently facing. General Electric could benefit from Governmental support, in the form of grants, allowances, training etc. Changes in technology could give General Electric an opportunity to bolster future success. Takeover and merger opportunities could be explored for General Electric and used to acquire new customers, new resources and enter new markets. GE should more focus towards corporate social responsibility Research and development to sustain its position in the market Merger and joint ventures in Asian market to improve cash flows Exploring natural resources to meet the high demands Growth in aviation industry is positive signal for the general electric

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Threats Threats are factors which may restrict, damage or put areas of the business or organization at risk. They are factors which are outside of the companys control. Being aware of the threats and being able to prepare for them makes this section valuable when considering contingency plans and strategies. This section will outline main threats General Electric is currently facing. Regulations requiring money to be spent or measures to be taken could put financial or other pressure on General Electric. Extra competition and new competitors entering the market could unsteady General Electric and be a threat. Price wars between competitors, price cuts and so on could damage profits for General Electric. As General electric is operating in number of countries, currency fluctuation may impact the revenues. Recession in most part of the world GE is the fourth largest producer of pollution in the world. Government regulation on environmental concern is the biggest threat for GE.

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Chapter IV

4.1 Analysis of financial statement.

For the years ended December 31 (In millions; per-share amounts in dollars) Revenues Sales of goods Sales of services Other income GECS earnings from continuing operations GECS revenues from services Total revenues Costs and Expenses Cost of goods sold Cost of services sold Interest and other financial charges Investment contracts, insurance losses and insurance annuity benefits Provision for losses on financing receivables Other costs and expenses Total costs and expenses Earnings (loss) from Continuing operations before income taxes Benefit (provision) for income taxes Earnings from continuing operations Loss from discontinued operations, net of taxes Net earnings Less net earnings attributable to non controlling interests Net earnings attributable to the company Preferred stock dividends declared Net earnings attributable to GE common shareowners Amounts attributable to the company Earnings from continuing operations Loss from discontinued operations, net of taxes Net earnings attributable to the company 11218 -193 11025 18,089 -676 17,410 22,452 -249 22,208 50580 25341 18769 3017 10928 37804 146439 10344 1090 11434 -193 11241 216 11025 -300 10725 54,602 29,170 26,209 3,213 7,518 42,021 1,62,733 19,782 -1,052 18,730 -679 18,051 641 18,051 -75 17,335 47,309 25,816 23,762 3,469 4,431 40,173 1,44,960 27,528 -4,155 23,373 -249 23,124 916 22,208 Nil 22,208 2009 $ 65,068 38,709 1,006 Nil 52,000 156783 2008 $ 69,100 43,669 1,586 Nil 68,160 1,82,515 2007 $ 60,670 38,856 3,019 Nil 69,943 1,72,488

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Statement of Cash Flows

Chapter V 5.1 Learning experience.

The internship at Wipro GE Healthcare was a great experience. Before starting the project I was totally nave of how complex the processes of business world could be. My knowledge of subjects and books was not sufficient to provide me a clear view of what organizations are all about, how they form their strategies, how they achieve their goals, and what possibly makes successful organizations. After a period of 2 months now I find myself in a much better position to explain what an organization and business is all about. It was indeed my good-luck that I got associated with an organization which has a presence world over and is very much successful in its industry. In the internship I learned about how the company originated and what the various products are offered by the company Thus, I learned to associate my academic knowledge with practical experience. I even got the opportunity to indulge in many projects like Contract approval process tracker, Customer mass screening process, Bank guarantee tracker, Petty cash book tracker in MS Excel, Dealers commission approval process, and I had a great experience by using Oracle software used by Wipro GE Healthcare. Thus, the internship program provided me the platform to learn and experience the real business world and will now help me in understanding better my academic subjects where I would be able to associate them with reality.

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