Chocolate industry

Introduction In order to be profitable in international business, it is vital for one to examine the micro and macro factors prevalent within a chosen business environment. This would help in anticipating challenges and in curving out a business strategy needed in order to succeed in that nation. The country chosen for this purpose is Singapore.Advertising We will write a custom essay sample on Chocolate industry specifically for you for only $16.05 $11/page Learn More Justification of choice Minimal barriers to entry Singaporean Immigration laws are some of the most business friendly around the world. This would allow investors and businessmen in the chocolate business to enter the country easily and without major hurdles. Expatriates often consider this as the best place to work and live in so it would be a great place to establish the manufacturing plant. Additionally, business regulations are not too tough in this country. If one has to import a food product from the international environment, one would not be expected to pay import duties unless the product is alcoholic (Australian Government, 2010). Such a policy is a big incentive for the proposed business because cocoa (an essential raw material in chocolate manufacture) will be sourced from the Caribbean so it is essential to select a country that will not impose heavy import duties on the same. Most foreign investors in the country are not required to follow certain distribution channels once in Singapore. It is expected that manufacturers should have their own warehouses, cargoes and networks. This would ascertain that they can easily take the commodities to the consumers without overly dealing with other intermediaries. Economic conditions As stated earlier in the industry analysis, the best place to start a chocolate business would be one which has a high GDP and high prospects for economic growth in the future.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Currently, Singapore is ranked third by the International monetary Fund’s 2010 economic index. It is ranked 4th by the CIA word factbook and is position 5 by the World Bank in terms of its GDP. Therefore, this would be an ideal society for the proposed chocolate business because any country’s GDP is indicative of its purchasing power (CIA, 2011). Chocolate is a luxury item that may not be easily purchased by poorer nations. Singapore has 0% of its population living below the poverty line and over 90% of all Singaporeans live in urban areas. Consequently, their economic conditions illustrate that they would easily buy the product (World Economic Forum, 2011). Additionally, Singapore also boasts of an immensely successful free market economy and is recognised as the least bureaucratic nation to do business in South East Asia. This has been made possible by the low instances of corruption and the government enabled programs that have been instated in order to prevent or capture the vice before it gets out of hand. Its Ministry of trade and Industry has contributed towards these indicators by taking charge of economic growth, developing industries and by creating the right environment for fostering entrepreneurship. Furthermore, the country has set up a Standards Productivity and Innovation board (SPIB) to accredit and develop standards for businesses while at the same time help them to reach markets and compete effectively internationally. In fact, transparency in Singapore is taken so seriously that government tenders and quotations are posted publically at an ebusiness portal. Such initiatives indicate how straight forward and fair business practices are. Singapore also has a Corrupt Practices Investigation Bureau which was formed in order to ensure that the business sector is corruption free.Advertising We will write a custom essay sample on Chocolate indust ry specifically for you for only $16.05 $11/page Learn More It appears these institutions are doing their jobs very well because international rankings illustrate that Singapore is the fifth least corrupt nation and the first in Asia. Naturally, such a country would minimise the difficulties that an overseas manufacturer would have if one was trying to establish oneself in such a country. Since Singapore has set up itself as one of the leading IT hubs in the region then it would be easier for this chocolate manufacturing company to register and get licenses there. That would greatly minimise resources and time wastage as is the case with other economies in the region. Infrastructural conditions in the country are great. The government has built a vast transportation and road network, airline hubs and strong telecommunication facilities. All these factors indicate that the proposed company will be in a position to import raw materials easily owing to these ai rline hubs. These materials would easily reach the point of manufacture because of the favourable transport and communication networks. Since some of the ingredients in chocolate are perishable then it would be best to move that produce as quickly as possible and this is very achievable in Singapore. Most commodity prices in Singapore are relatively stable and this would be advantageous to the proposed business because it will be possible to plan for the future as well as make strategic plans or do business forecasts based on past performances. In terms of the industrial sector, Singapore is known for its production of chemicals, rubber, processed foods and petroleum refining. This industry accounts for 25% of the entire GDP and thus places the country as 3rd in the world (CIA, 2011). It would be ideal to set up a production plant in Singapore because the technological and equipment advances needed in the chocolate industry can be easily located or found there.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The country’s strong history in industrial manufacture is indicative of the fact that all the processes needed in order to make industries succeed are already in place and they are likely to do well in the future. The presence of about seven thousand multinational corporations in Singapore testifies to the feasibility of bringing in foreign investments into this nation (Dycke, 1997). Besides, Singapore’s products are associated with excellence so it would be likely that if the chocolates were produced in that nation then the world would respect them since they are synonymous with quality. It should be noted that the chocolate industry depends more on availability of advanced technology rather than cheap labour. When compared to other Asian economies like China and Vietnam, labour costs in this country are relatively high. One would therefore find it difficult to minimise production if one was dependent on this component. However, because chocolate manufacture is not he avily reliant on cheap labour then it would still be alright to do business there. It was also explained earlier that innovation and creation of new chocolate recipes will be vital to the success of any chocolate business in the industry. A survey carried out by Boston Consultancy group found that Singapore was the top most innovative nation of the world. They focused on 110 countries and came to that conclusion after intense analysis. This innovative culture will work well for the chocolate industry because it will give the company a competitive edge and will also ensure that all the products put forward are ahead of competitors in the market. Food and confectionary production is regulated through the food and hygiene safety standards. Any imported foods are normally taken through a rigorous process authorised and implemented by the Food advisory committee. It is only this group which will allow the distribution of goods to manufacturers. Consequently, those standards will ensure t hat the chocolate manufacturer only accesses clean and safe milk for use in its processes. This will keep the taste of the product consistent and it will also protect consumers from diseases. Market features Singaporeans operate under the principle of â€Å"Kiasu†. This loosely translates to ‘never accepting defeat’. In Singapore, citizens have a material culture which causes most people to work hard in order to purchase more. These qualities are essential for products such as chocolate because they denote some form of indulgence which is often possible when the concerned consumer feels as though he or she deserves that particular treat. Chocolates often do well in cosmopolitan cultures and this country is one such society. Most areas have elaborate shopping malls, resorts and large supermarkets (Krummel et. al., 1997). Chocolates are best sold near the counter in retail chains so as to increase impulse buying or to draw in certain consumers. In order for the pro posed business to do well then it should be set up in a country that is rich in such stalls. That would increase the rate of product movement and thus boost sales of the commodities nationally. Previously, the country was known for its smaller traders but now the population is illustrating a preference for supermarkets because they are considered a lot cleaner and synonymous with high quality products. Nonetheless, not all small traders have been eradicated; they still sell confectionaries and food items like chocolate and can be crucial components of the distribution system. These small traders mirror some aspects in supermarkets like displaying sweet and fast moving products like chocolate at the front. The proposed company can advise such traders to exhibit their items near their windows so that customers can be easily attracted to them. About 70% of all households utilise broadband thus illustrating that Information technology infrastructure is quite strong in Singapore. Since e -commerce would be a great way to save on distribution and marketing expenses of the chocolate industry as stated in the previous industry analysis then this country would be great. The products can be made and sold to Singaporeans through a relatively cheap method which connects a vast number of citizens. The country also has very complex distribution channels stemming from its historical preferences. Most people were private traders who would get merchandise from different parts of the world and sell them to specific target markets. Essentially, this implies that the distribution channels are not as straight forward. While some people may look at such a scenario as a problem, it is possible to tap into that missing component in order to have a marketing advantage. The concerned company can set up its own distribution channel which would be run efficiently and professionally. Marketing and promotional concepts in this country are crucial in the success of new players. The chocolate manufacturer can start with a very strong and captivating marketing campaign and then follow this up with frequent reminders about the brand so that consumers can keep remembering the product. Unlike other western nations like the US, Singapore is not saturated with marketing battles. The population would still notice a campaign involving a certain new product and would actually respond well to it at all levels. Another important demographic factor that had been cited in the industry analysis concerning the chocolate industry was prevalence of a young population. It was explained that older members are more concerned about their health and would not want to purchase a product that was risky to their health. The world CIA factbook shows that the average age in this country is 41(CIA, 2011). In other words, there is an ageing population. However, this issue might not be such a disadvantage for the proposed chocolate company because unlike western states, most citizens in Singapore ar e not as weight conscious. Furthermore, the younger population is quite aggressive and would still provide a ready market for the commodities. Another issue that may be considered as a barrier in this nation is its relatively small population size. There are about four million people in the country thus placing Singapore as the 117th most populated nation in the world (CIA, 2011). The lack of a large population size is not necessarily a problem for the chocolate manufacturer because one only has to select the right marketing strategy. In certain circumstances, chocolate may be sold as a niche product while in others one can select the mass market. If the population is affluent then chocolate would not be considered as an unaffordable or unnecessary treat. If a mass market approach is used then almost all members of the population can be targeted for this campaign and this would ensure high returns. In fact, it is better for a country to have a small population that can purchase the product rather than have a large one with only few people who can buy it. If there is a trade off between population size and spending power then spending power would definitely come first. Conclusion Singapore was chosen as the ideal country for the proposed business because it has; minimal barriers to trade, a strong FDI and economic environment and has the right social cultural mix. Singapore does not impose import duties on food items and neither does it has strong immigration laws thus implying that it has minimal barriers to trade; a foreign investor would not encounter too many obstacles during entry and exit of goods and items into the country. The country has a strong FDI and economic environment because it the third richest nation of the world. This means that consumers have high purchasing power and would provide a ready market for chocolate. The area is not bureaucratic and has very low corruption. Transparency is always a good indicator of how favourable a country is fo r international business hence this proposed business. Infrastructural strength is yet another economic indicator of the feasibility of this country for chocolate manufacture since perishable raw materials like milk need fast and efficient transport systems. Prices are immensely stable in this country and technological development favours a technologically dependent industry like chocolate manufacture. Social cultural factors such as prevalence of broadband internet, the materialism culture and cosmopolitanism will contribute towards the purchase of chocolates once manufactured in this country. All these factors will contribute towards a successful chocolate manufacturing venture in Singapore. The country meets almost all micro and macro industrial needs. Its shortcomings like small population size can be easily overcome through a sound marketing and strategic plan. References Australian Government (2010). Food and beverage to Singapore: Trends and opportunities Web. Australian Trad e commission website. Available from  https://www.austrade.gov.au/ . CIA (2011). The World factbook: Singapore [online]. CIA website. Available from  https://www.cia.gov/index.html . Dycke, A. (1997). Country Analysis: a framework to identify and evaluate the national business environment. Harvard: Harvard Business review. Krummel, D., Apgar, J., Seligson, F. (1994). Patterns of chocolate consumption. American Journal of clinical Nutrition, 60(7), 1060-1064. World Economic Forum (2011). Global competitiveness. Global competiveness report 2010-2011, 3 June. This essay on Chocolate industry was written and submitted by user Zander P. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

NOWAK - Surname Meaning and Origin

NOWAK - Surname Meaning and Origin The Polish surname Nowak means new guy in town, from the Polish root nowy (Czech novà ½), meaning new. The Nowak surname was also occasionally bestowed on one who converted to Christianity (a new man). Nowak is the most common surname in Poland, and is also very common in other Slavic countries, especially the Czech Republic, where Novk tops the list of most common surnames. Novak is also the most common surname in Slovenia, and the sixth most common  surname in Croatia. Nowak was also sometimes Anglicized as Novak, so it can be difficult to count solely on spelling to determine the surnames origins. Surname Origin:  Polish Alternate Surname Spellings: NOVAK, NOWIK, NOVIK, NOVACEK, NOVKOVIC, NOWACZYK   Similar to  NOWAKOWSKI Where do People with the Surname NOWAK Live? According to WorldNames publicprofiler, individuals with the Nowak last name are found in the greatest numbers in Poland, followed by Germany and Austria. The greatest concentration of individuals with the Nowak surname are found in south and central Poland, especially the voivodeships (provinces)  of Wielkopolskie, Swietokrzyskie, Malopolskie, Slaskie and Lubuskie.  The Polish-specific surname distribution map on  moikrewni.pl calculates the population distribution of surnames down to the district level, identifying over 205,000 people with the Nowak surname living in Poland, with the majority found in PoznaÅ„, followed by  Krakà ³w, Warszawa,  Ã… Ãƒ ³dÃ… º,  WrocÅ‚aw, Sosnowiec,  BÄ™dzin and Katowice.   The Novak surname is found in the greatest density in Slovenia, according to Forebears, followed by the Czech Republic, Croatia and Slovakia. It is also about twice as common in the United States as compared to Nowak. Famous People with the Surname NOWAK or NOVAK Bob Novak - American  TV talk show personalityKim Novak - American film actressJan Nowak-JezioraÅ„ski - Polish journalist and WWII hero (he added Nowak as a noms de guerre)Lisa Marie Nowak - former American astronaut Genealogy Resources for the Surname NOWAK Nowak Family Genealogy ForumSearch this popular genealogy forum for the Nowak surname to find others who might be researching your ancestors, or post your own Nowak surname query. FamilySearch - NOWAK GenealogyAccess over 840,000 free historical records and lineage-linked family trees posted for the Nowak surname and its variations on this free genealogy website hosted by the Church of Jesus Christ of Latter-day Saints. DistantCousin.com - NOWAK Genealogy Family HistoryExplore free databases and genealogy links for the last name Nowak. NOWAK Surname Family Mailing ListRootsWeb hosts a free mailing list for researchers of the Nowak surname. They also have one for Novak. Browse or search the archive, or subscribe to submit your own Nowak or Novak query. The Nowak Genealogy and Family Tree PageBrowse genealogy records and links to genealogical and historical records for individuals with the Polish surname Nowak from the website of Genealogy Today. Polish Genealogy Databases OnlineSearch for information on Nowak ancestors in this collection of Polish genealogy databases and indexes from Poland, the United States and other countries. Looking for the meaning of a given name? Check out First Name Meanings Cant find your last name listed? Suggest a surname to be added to the Glossary of Surname Meanings Origins. - References: Surname Meanings Origins Cottle, Basil. Penguin Dictionary of Surnames. Baltimore: Penguin Books, 1967. Menk, Lars. A Dictionary of German Jewish Surnames. Bergenfield, NJ: Avotaynu, 2005. Beider, Alexander. A Dictionary of Jewish Surnames from Galicia.  Bergenfield, NJ:  Avotaynu, 2004. Hanks, Patrick and Flavia Hodges. A Dictionary of Surnames. New York: Oxford University Press, 1989. Hanks, Patrick. Dictionary of American Family Names. New York: Oxford University Press, 2003. Hoffman, William F. Polish Surnames: Origins and Meanings.  Chicago:  Polish Genealogical Society, 1993. Rymut, Kazimierz. Nazwiska Polakow.  Wroclaw: Zaklad Narodowy im. Ossolinskich - Wydawnictwo, 1991. Smith, Elsdon C. American Surnames. Baltimore: Genealogical Publishing Company, 1997. Back to Glossary of Surname Meanings Origins

IT Project Management 2 Assignment Example | Topics and Well Written Essays - 5000 words

IT Project Management 2 - Assignment Example He is supposed to chart out the nature and extent of efforts to achieve the project deliverables. A crucial role of the project manager would be to hire the project team. The nature of the project team can be a critical factor in the success or failure of the given project, since the team is small with specialist roles and the subject matter experts have thus been recruited (DiTullio, 2011, p. 13). Another crucial role for the project manager is to select an appropriate vendor for the project. The Project manager is supposed to personally take care of all the vendor interactions. A vendor agreement is to be developed by the project manager, so as to guide the project team as well as the vendor representatives towards achievement of project objectives (Lewin, 2001). Assistant Project Manager. The role of the assistant project manager shall be to act as a deputy to the project manager in all the aspects of his project related duties. In the presence of the project manager, he shall ass ist him in all his functions. In his absence he shall be required to fulfill the roles in the capacity of a project manager. HR Expert. The HR expert is supposed to play a very important role in that he is to chart out the set of HR guidelines to be adhered to while designing the HRIS software. He is also supposed to assist the project manager in carrying out the HR needs identification for the project. The timely inputs by the HR expert will pave the way for the research team to establish the survey goals for the HR and the project needs identification (Elbeik & Thomas, 1998). The HR expert shall advise the project manager on the scope and functional ability of the various aspects of the HRIS software to be developed insofar as it meets the HR needs of the organization. The HR expert shall guide the project team at various stages of the project as to the feasibility of the functionalities of the various modules of the project plan. The HR expert shall assist the project manager on the dry runs for the project. The HR expert will be responsible effective assistance to the project manager on the following two particularly important aspects of the project management; 1. The Expert Judgment on the project quality through cost-benefit analysis of the project activities. 2. The Training of the project team on the HRIS as well as the Training of the staff. The HR expert shall chalk out a Training deliverables plan particularly for the employees of the Organization. HR Assistant. The HR assistant shall assist the HR expert on all the aspects of the functions of the HR expert. In addition, the HR expert shall personally ensure that the judgments arrived at by the HR expert are properly implemented. The recommendations of the HR expert shall be communicated on a routine basis by the HR assistant.

Learning Theory Applications Research Paper Example | Topics and Well Written Essays - 750 words

Learning Theory Applications - Research Paper Example They looked at the major themes in history and let students relate it to their own lives, allowing each student’s culture to be part of the curriculum. Dean and Gilbert took the roles as facilitators during the activity. Students analyzed the information, talked about the text, related it to their personal lives and thus, created meaningful learning experiences in the class. Yvonne Scott used the butterfly project which allowed students to plan among each other their roles based on their interest and strengths. The students created â€Å"departments,† and the class was run like a business/company. Suggestion: Not all students were able to express their ideas, and there were just quite a number who dominated the exchange of opinions. Working in small groups and making sure that everyone speaks at the beginning can encourage more students to participate in the discussion. Avram Barlow recreates the zeitgeist at the time when the laws were created and makes the students put themselves in the shoes of the law makers and civilians, and let them express their opinions and feelings about these laws. Barlow clarifies and rephrases the ideas put forth by the students. This form of feedback validates what they said, and ensures that students that they are listened to. Barlow also makes sure that they stay within the questions and objectives of the discussion. He restates the questions when it appears that they are getting off topic. Shaheen acknowledges students vary in the assistance that they need. He is more confident of students who take notes during discussion and those who take risks. He gave tips on how a student gives feedback and demonstrates how this will be helpful to her peer. Suggestion: Students who are not very comfortable may not initially want to work in groups. Paired work may be given first while gradually moving into small groups. This initially establishes mutual trust and a safe

Eroding Local Control & The Influence and Climate of the Courts Essay - 2

Eroding Local Control & The Influence and Climate of the Courts - Essay Example The cost of improper education systems sums up in a downward trend in the national productivity with increased burden of care to the incarcerated persons and the unemployed through public relief (Garfield, Brimley, et al, 2008). Discussion Question 1 The degree to which education meets individual and societal aspirations depends largely on the quality of education received, which in turn tier closely with the resources made available and the extent to which they are properly used. The number of educational institutions is a fundamental contributory factor towards such quality. Thus, reducing the number of school districts in a state generally reduces the difference in ability to support education between the â€Å"wealthiest† system and the â€Å"poorest† system/district in terms of assessed valuation per pupil to be educated. As predicted by scholars like DuBois in the1970s, color line educational problem in terms of state funding in the 20th century seem to be flaring well into the 21st century with recognizable disparities. It is evidently clear that educational outcomes for students of color are proportionate functions of unequal access to educational resources. The US education system is understandably the most unequal in the industrialized world with students receiving different leaning opportunities based on social stratification. It is estimated that the expenditure ratio of wealthiest ten percent and the poorest ten percent of the district schools across states is almost 10 to 1. Averagely, the current strikingly differences are put at 3 to 1. According to Jonathan Kozol, expenditure per student in Chicago public schools in the 1990s was approximately $5000 while their Niles Township High school neighbors spent double the amount student. He also recounted the use of old textbooks, lack of science labs, inadequate teachers and more in elementary schools serving predominantly African Americans. In contrast, schools in New Trier serving 98 p ercent whites were well equipped with superior labs with up-to-date technology, experienced teachers and a wider range of courses provided. By every measure to the degree of qualification – state certification, pedagogical training, content background for teaching, test scores, college attended and the experience attained so far –fewer qualified teachers disproportionately serve in schools with greater numbers of low-income/minority students. It is utterly impossible to reconcile the two extreme scenarios with an expectation of similar student performance. It is on the basis of the foregoing facts that consolidation would be a desirable option in reducing the gap in supporting education between the wealthiest and the poorest. Discussion Question 2 While consolidation of schools would be a desirable option in terms of fiscal and educational auspices, the idea is not a â€Å"generic fits all† proposition. It is well beyond doubt that 5 school districts in Tennesse e County with separate, independent directors translates into appropriate supervisory personnel (instruction, curriculum, federal programs, special services, attendance). However, the ability to save on costs serves as a strong selling point for consolidation. Merging schools into large blocks free up unused resources for other purposes, reduces utility and maintenance costs,

Standard Chartered Bank in India Analysis

Standard Chartered Bank in India Analysis Executive Summary The competition in the banking sector is increasing at a tremendous rate. MNC banks in India are doing well in India and Standard Chartered Bank being one of them wants to increase the consumer base. Therefore, it is trying to do this through retail banking. At this point of time the bank is expanding and is coming up with new branches all over India. It has recently opened a new branch there and if yes then how it can acquire new Customers. In two months time I was supposed to promote and sell their products (especially deposits) and to do a market study to know customers needs and requirements so that bank can improvise on them if possible. This time period was not enough to do an intense study. Therefore, I could collect limited data and kept my study limited to small a sample INTRODUCTION An overview of SCB Standard Chartered is the worlds leading emerging markets bank. It employs 29,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom and the Americas. The Bank serves both Consumer and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The Wholesale Bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending, foreign exchange, interest rate management and debt capital markets. With 150 years in the emerging markets the Bank has unmatched knowledge and understanding of its customers in its markets. Standard Chartered recognizes its responsibilities to its staff and to the communities in which it operates A brief history of Standard Chartered Standard Chartered is the worlds leading emerging markets bank headquartered in London. Its businesses however, have always been overwhelmingly international. This is summary of the main events in the history of Standard Chartered and some of the organizations with which it merged. The early years Standard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. Of the two banks, the Chartered Bank is the older having been founded in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the worlds pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in South Africa and had become a successful merchant. Both banks were keen to capitalize on the huge expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from financing that trade. The Chartered Bank opened its first branches in 1858 in Chennai and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861 the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly developing rubber and tin industries in Malaysia. In 1862 the Chartered Bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th Century. Over the following decades both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, Malaysia and even during the siege of Marketing in South Africa. Today Standard Chartered is still one of the three banks, which prints Hong Kongs bank notes. Expansion in Africa and Asia The Standard Bank opened for business in Port Elizabeth, South Africa, in 1863. It pursued a policy of expansion and soon amalgamated with several other banks including the Commercial Bank of Port Elizabeth, the Colesberg Bank, the British Kaffarian Bank and the Fauresmith Bank. The Standard Bank was prominent in the financing and development of the diamond fields of Kimberly in 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Over time, half the output of the second largest goldfield in the world passed through the Standard Bank on its way to London. In 1892 the Standard Bank opened for business in Zimbabwe, and expanded into Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.), in 1911 and Uganda in 1912. Of these new businesses, Botswana, Zanzibar and the D.R.C. proved the most difficult and the branches soon closed. A branch in Bo tswana opened again in 1934 but lasted for only a year and it was not until 1950 that the Bank re-opened for business in Botswana. In Asia the Chartered Bank expanded opening offices in, Myanmar in 1862, what is now Pakistan and Indonesia in 1863, the Philippines in 1872, Malaysia in 1875, Japan in 1880 and Thailand in 1894. Some 34 years after the Chartered Bank appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the tea and rubber industries. During 1904 a branch opened in Vietnam. Both the Chartered and the Standard Bank opened offices in New York and Hamburg in the early 1900s. The Chartered Bank gaining the first branch licence to be issued to a foreign bank in New York. The impact of war Even the First World War offered opportunities for expansion when the Standard Bank set up a branch in Tanzania shortly after British troops occupied the formerly German administered Dar es Salaam in September 1916. Both banks survived the inter-war years but the world trade slump led to the closure of operations in the Canary Islands, Liberia, the Netherlands, and Equatorial Guinea. Disaster struck the Chartered Banks office in Yokohama, Japan, when an earthquake in 1923 killing a number of staff destroyed it. The Second World War particularly affected the Chartered Bank when numerous Asian countries were occupied by Japan. Standard Chartered in India The Chartered Bank opened its first overseas branch in India, at Calcutta, on 12 April 1858 Eight years later the Calcutta agent described the Banks credit locally as splendid and its business as flourishing particularly the substantial turnover in rice bills with the leading Arab firms. When the Chartered Bank first established itself in India, Calcutta was the most important Commercial city and was the centre of the jute and indigo trades. With the growth of cotton trade and the opening of the Suez Canal in 1869, Bombay took over from Calcutta as Indias main trade centre. Today the Banks branches and sub-branches in India are directed and administered from Mumbai (Bombay) with Calcutta remaining an important trading and banking centre. Standard Chartered is the largest international banking Group in India. Key businesses include Consumer Banking-Primarily credit cards, mortgages, personal loans and wealth management and wholesale Banking, where the Bank specializes in the provision of cash management trade, finance, treasury and custody services. It is the largest international banking group in India with an employee base of nearly 3500 people across the country. It also boast the largest branch network amongst all international banks in India-with 61 branches in 15 cities. With over 2.3 million retail customers, and a Credit Card base in excess of 1.3 million, it is the leaders in the consumer banking business. The wholesale bank has over 1200 corporate customers with a 33% market share in value with over 270 top transnational companies in India. INDUSTRY PROFILE What is Banking: Banking, in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investment. These deposits can have a distinct feature of being withdrawable by cheques, which no other financial institution can offer. In addition, banks also offer various other financial services which include. Issuing Demand Drafts Travellers Cheques Credit Cards Collection of Cheques, Bills of exchange Safe Deposit Lockers Issuing Letters of Credit Letters of Guarantee Sale and Purchase of Foreign Exchange Custodial Services Investment Insurance services The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their lending and investment activities. Every bank has a Compliance Department, which is responsible to ensure that all the services offered by the bank, and the processes followed are in compliance with the local regulations and the Banks corporate policy. The major regulations and acts that govern the banking business are Banking Regulations act, 1949 Foreign Exchange Management Act, 1999 Indian Contract Act Negotiable Instruments Act, 1881 Banks lend money either for productive purposes to individuals, firms, corporates etc, or for buying house property, cars and other consumer durable and for investment purposes to individuals and others. However, banks do not finance any speculative activity. Lending is risk taking. Banking in the New Millennium Were living in a world dominated by the new idea economy, ticking to the beat of Internet time, where customers are quality conscious, time conscious and price conscious. Technology is creating new agile players making the existing ones obsolete. In this scenario, the role of internet and its impact on banking still appears to be a puzzle. Banks around the world are subject to the same radical changes -new competition, technology, deregulation, and globalization. But, eventually, the classic rules of business will reassert themselves in this virtual environment and the winners will be the first and best movers. The challenges in this millennium for the banking industry are enormous. The technology and Banking sector reforms, together are lifting the competitive intensity of the Banking business. In Banking, embedding knowledge into products can enhance value, and connecting different knowledge sources can create innovative products. The banks that are first to market with the right mix of technologies, strategies and partnerships would be the sure winners. The banking environment worldwide is undergoing massive transformation. Despite the, not so favorable, market sentiments and an apparent backlash against dotcoms, serious players in established industries like banking, remain convinced that the Internet will have a profound impact on the banking sector. Mergers and acquisitions are changing the financial landscape, and cross-border linkages are drastically altering the business characters, in general and banking operations, in particular. But drawing firm conclusions can be dangerous, as mergers and consolidation take many different forms and the impact can give mixed results. But, there is growing concern as to whether mergers deliver the expected benefits and whether cross-border deals are feasible, particularly in Europe, where cultural considerations are seen as barriers to success. In Europe, players are beginning to assert themselves, as the Nat West battle is resolved. Nat west, one of the UKs biggest banks, was forced to accept a hostile takeover bid from a smaller rival, Royal Bank of Scotland in December 2000. Earlier in November 1999, Nat west rejected a similar bid by another small bank, Bank of Scotland. This move left the scene set for Royal Bank of Scotland to submit its long anticipated bid for Nat West. It was follo wed by a flurry of bid and counter bid by the two Scottish banks as Nat west fought to keep its independence. The Royal Bank of Scotland finally won by convincing the Nat West shareholders to accept its  £25 bn offer. This outcome has set the tone for a long overdue round of consolidation in the European financial sector. Coming home, Indian banking sector has come a long way from being a sleepy business institution to a highly proactive and dynamic entity. Indian banking system is in the midst of a technological revolution. It is impacting the Indian industry in three ways firstly, by providing efficient and effective delivery Channels, secondly, it is dramatically influencing the client profile, which in turn leads to the third change i.e. the Human Resources Management. As a service sector, it calls for a change in the attitude of the personnel that would have a salutary effect on customers. Indian Banking that was operating in a highly comfortable and protected environment till the beginning of 1990s has been pushed into the choppy waters of intense competition. Mergers and acquisitions, have been heating up in the new private banking sector since the HDFC-Times Bank merger came through in November 1999. The deal shook an otherwise placid Indian banking world and generated a kind of pressure on banks to shake hands with their peers to cope up with the competition. Going forward, the premium valuations of private banks compared to public sector banks depend on their ability to maintain high earnings growth and quality of assets. The current downturn in the economic activity could result in the increase of non-performing assets for most of the banks. The winner in the market would be the one who can sustain the high growth in business without compromising the asset quality. In this millennium, banks should strive to achieve significant increases in their productivity, efficiency, and profitability. The areas of challenges that lie ahead for the Indian banking sector would be: Restructuring and Reorganizing banks setup, leaner offices, merging and forging of strategic alliances to take advantage of the geographic spread of branch network of banks, develop new products and services that would meet the emerging needs of customers and professional Management structures that would be responsive to the changes in the business environment. The book Banking In The New Millennium examines this changing landscape for the banking services. The purpose of this book is to present the current trends, the emerging scenario and the building blocks in banking sector. A brief section is also dedicated to retail banking that is growing in a big way. The book is divided into four sections analyzing the various aspects of the banking scenario. Packed with the right mix of articles on e-banking, retail banking, and mergers and acquisitions, this book is intended to serve as an executive reference book on Banking. Challenges And Future In Banking Sector Mergers in the Banking, NPA, New Technology, Electronic Cash Transfer After the nationalization of Banks, increasing adoption of technology, continuous mergers in the banking, modernizing backroom operation in the banks and competition pave the path of growth of Indian banking. By the mid-1990, the near monopoly of public sector banks faced the competition by the more customer-focused private sector entrants. This competition forced older and nationalized banks to revitalize their operations. Year 1992 was the golden period of Indian Banking system due to the scam-tainted stock market. Large proportion of household saving moved into the banking system, which recorded an annual growth of 20 percent in deposit. But along with the continuous growth and modernization, there are several challenges confronting the banking sector. The main challenges facing the banking sector are the deployment of funds in quality assets and the management of revenues and costs. The problem of NPA (non- performing assets), overall credit recovery systems still exist. There is a continuous reforms and modernization is in process. A number of recon mediations of two Narasimham committees have been implemented. Foreign Banks focusing on corporate and on the middle class consumer and providing then better service. Nationalized Banks are also attempting to get on the path of automation. Strong Banks will acquire the weaker banks. The member of foreign banks operating in India has increased significantly and their share of total assets has also increased. In the year 2001 estimated foreign bank account for 14.7 percent of the total net profit of commercial banking sector in India. In spite tangible progress and the contribution of Narasimham I and Narasimham committee reports the banking sector in India suffering from systemic and structural problem. OBJECTIVES The main objective of this project report is to make an analytical study of Standard Chartered Bank It includes History of the Bank Product Analysis Service Banks Accounts Comparison of the saving accounts with other leading Banks of India REASEARCH METHODOLOGY Data collection has been done from both sources primary as well as secondary. Primary data : by meeting various managers of the Standard Chartered Bank, Citibank, ABN-AMRO Bank, ICICI, HDFC, HSBC, GTB, UTI and IDBI. Secondary data: From newspaper, magazines, Libraries. CONCEPTUAL FRAMEWORK Investment in India Banking Banking System Introduction The Reserve Bank of India (RBI) is Indias central bank. Though public sector banks currently dominate the banking industry, numerous private and foreign banks exist. Indias government-owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership. Private and foreign banks The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion. Capital adequacy norm Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993, while Indian banks with overseas branches had until March 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of Indias insurance sector to private domestic and foreign participants, while keeping the national insurance companies in operation. Banking India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector. RBI banking The Reserve Bank of India is the central banking institution. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the governments monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign banks operate in India with full banking licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. Indian banking system The banking system has three tiers. These are the scheduled commercial banks; the regional rural banks that operate in rural areas not covered by the scheduled banks; and the cooperative and special purpose rural banks. Scheduled and non-scheduled banks There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector. Local financing All sources of local financing are available to foreign-participation companies incorporated in India, regardless of the extent of foreign participation. Under foreign exchange regulations, foreigners and non-residents, including foreign companies, require the permission of the Reserve Bank of India to borrow from a person or company resident in India . Regulations on foreign banks Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks. RBI restrictions The Reserve Bank of India lays down restrictions on bank lending and other activities with large companies. These restrictions, popularly known as consortium guidelines seem to have outlived their usefulness, because they hinder the availability of credit to the non-food sector and at the same time do not foster competition between banks. Indian vs foreign banks Most Indian banks are well behind foreign banks in the areas of customer funds transfer and clearing systems. They are hugely over-staffed and are unlikely to be able to compete with the new private banks that are now entering the market. While these new banks and foreign banks still face restrictions in their activities, they are well-capitalized, use modern equipment and attract high-caliber employees. Government and RBI regulations All commercial banks face stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to priority sectors and the high liquidity ratio and cash reserve requirements severely limit the availability of deposits for lending.The RBI requires that domestic Indian banks make 40 percent of their loans at concessional rates to priority sectors selected by the government. These sectors consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32 percent of their loans to these priority sector. Within the target of 32 percent, two sub-targets for loans to the small scale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed. Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector. Commercial banks lent dols 8 billion in the Indian financial year (IFY, April-March) 1997/98, up sharply from dols 4.4 billion in the previous year. The deployment of gross loans was as follows: FINDINGS AND ANALYSIS BUSINESS Consumer Bank Consumer Banking Offers a wide range of premium banking products and services through the network of 90 branches in 19 cities across the country to cater to customers diverse financial needs. Wealth management offers a complete and comprehensive range of products to fulfill a gamut of customer investment and financial needs. These include domestic and NRI transaction accounts (with several value-add products and services like ATM and globally valid Debit Card, phone banking, extended banking, any branch banking, door step banking and investment advisory services), distribution of capital market and insurance products and dematerialization services and finances against shares. Standard Chartered also offers Priority Banking that is personalized banking for the privileged few. Standard Chartered Group is a leading credit card issuer in India and has several firsts to its credit. These include issuance of the first Global Credit Card in India, the first Photo card, the first Picture Card. Our card division under Unsecured Payments is also the first in South Asia to be accorded an ISO 9002 certification. The credit Cards and Personal Loans Offer include co-branded cards with unique value propositions and cards like Sapnay for the middle-market segment. The division offers a range of personal loan products and also a personal line of credit through products such as Smart Credit. Our Secured Loan Division offers mortgage auto loans and also unique overdraft products like ‘Mileage that offer revolving credit facility against the security of a used or new car. Standard Chartered Finance (SCF), an NBFC is our Centre for Excellence in Service and product distribution arm. Products include loans/leases for new passenger cars, used cars commercial vehicles and medical equipment. Standard Chartered Finance has an extensive network of branches in India. Wholesale Bank Corporate and Institutional Bank Standard Chartered is particularly strong in Institutional relationships and is the preferred correspondent bank for over 300 domestic and international bank, the largest such private sector network in India. The Bank focuses on service quality and all its operational units in trade, cash management, treasury and custody are ISO certified. Standard Chartered is Indias largest foreign trade finance bank and offers a full complement of trade finance products, including export credit in foreign currency, export letters of credit confirmations, merchanting trade and buyer credits. It is one of the few banks in India to offer services like channel financing forfeiting, without recourse export finance, project export and service export approvals and sponsorships. As a leading cash management supplier across emerging markets, Standard Chartered Offers Complete end to end cash management solutions for corporate and institutions. The Greenwich survey for 2001 nominated Standard Chartered the Best Cash Management Service Quality Bank in India Range of Products include vostro accounts, draft drawing, telegraphic transfers and an international payments facility that allows foreign currency payments without a separate account. Standard Chartereds custody and clearing service unit has served Foreign Institutional Investors in India with Superior client servicing, supported by Sophisticated and flexible computerized systems. It is the only custodian in India to earn the ISO 9001:2000 standards certification. Standard Chartered has received top ratings in Industrys benchmark surveys the Global custodian survey 2000 and the Global Investor Survey 2000. Global Markets Standard Charted provides a complete 24 hour coverage of the worlds foreign exchange markets. It provides a broad range of products like Exotic currencies, Derivatives, Debt Capital markets, Currency Options and Electronic trading. Standard Chartered was the first bank in India to introduce its on-Line Treasury, a browser enabled dealing system that enables real-time transactions. Standard Chartered is also recognized as a leading market for the Indian Rupee. The Banks Treasury-the No.1 Treasury in India-is amongst the most active treasuries in the country, being a market maker in local currency and money markets. While we seek to provide advice, treasury products and services to our global clients in the Indian market, we also have active relationships with some of the biggest and most diversified Indian companies and many medium sized companies. With a large specialized sales force, we cater to all foreign exchange, money market and risk management needs of our corporate clients. Treasury has an active inter bank desk which, apart from being a market maker in the Indian Rupee spot and the forwards market, actively quotes for other currencies. The money Market Desk is a leading player in the Rupee markets and in Government and corporate debt trading. The derivative Desk is a market maker in the Rupee Interest rate swap market. We also run one of Indias largest derivative books and offer products up to 7 years tenor. The corporate desk is amongst the largest among the foreign banks in India. With a presence in 5 major cities with state of the art dealing rooms and a corporate sales force of over 20 dealers, we have an unmatched reach and service capability across India. In addition to servicing currency market and investment needs of corporate clients, our corporate desk is active in advisory services pertaining to structuring and risk management. Standard Chartered Mutual Fund is one of the largest and fastest growing debt funds in the market. Standard Chartered Mutual Fund is the only fund that focuses only on the debt segment and prides itself on having developed one of the finest interest rate tracking models. Consumer Bank-Products Types of Deposits Bank Deposits B Standard Chartered Bank in India Analysis Standard Chartered Bank in India Analysis Executive Summary The competition in the banking sector is increasing at a tremendous rate. MNC banks in India are doing well in India and Standard Chartered Bank being one of them wants to increase the consumer base. Therefore, it is trying to do this through retail banking. At this point of time the bank is expanding and is coming up with new branches all over India. It has recently opened a new branch there and if yes then how it can acquire new Customers. In two months time I was supposed to promote and sell their products (especially deposits) and to do a market study to know customers needs and requirements so that bank can improvise on them if possible. This time period was not enough to do an intense study. Therefore, I could collect limited data and kept my study limited to small a sample INTRODUCTION An overview of SCB Standard Chartered is the worlds leading emerging markets bank. It employs 29,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom and the Americas. The Bank serves both Consumer and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The Wholesale Bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending, foreign exchange, interest rate management and debt capital markets. With 150 years in the emerging markets the Bank has unmatched knowledge and understanding of its customers in its markets. Standard Chartered recognizes its responsibilities to its staff and to the communities in which it operates A brief history of Standard Chartered Standard Chartered is the worlds leading emerging markets bank headquartered in London. Its businesses however, have always been overwhelmingly international. This is summary of the main events in the history of Standard Chartered and some of the organizations with which it merged. The early years Standard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. Of the two banks, the Chartered Bank is the older having been founded in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the worlds pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in South Africa and had become a successful merchant. Both banks were keen to capitalize on the huge expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from financing that trade. The Chartered Bank opened its first branches in 1858 in Chennai and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861 the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly developing rubber and tin industries in Malaysia. In 1862 the Chartered Bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th Century. Over the following decades both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, Malaysia and even during the siege of Marketing in South Africa. Today Standard Chartered is still one of the three banks, which prints Hong Kongs bank notes. Expansion in Africa and Asia The Standard Bank opened for business in Port Elizabeth, South Africa, in 1863. It pursued a policy of expansion and soon amalgamated with several other banks including the Commercial Bank of Port Elizabeth, the Colesberg Bank, the British Kaffarian Bank and the Fauresmith Bank. The Standard Bank was prominent in the financing and development of the diamond fields of Kimberly in 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Over time, half the output of the second largest goldfield in the world passed through the Standard Bank on its way to London. In 1892 the Standard Bank opened for business in Zimbabwe, and expanded into Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.), in 1911 and Uganda in 1912. Of these new businesses, Botswana, Zanzibar and the D.R.C. proved the most difficult and the branches soon closed. A branch in Bo tswana opened again in 1934 but lasted for only a year and it was not until 1950 that the Bank re-opened for business in Botswana. In Asia the Chartered Bank expanded opening offices in, Myanmar in 1862, what is now Pakistan and Indonesia in 1863, the Philippines in 1872, Malaysia in 1875, Japan in 1880 and Thailand in 1894. Some 34 years after the Chartered Bank appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the tea and rubber industries. During 1904 a branch opened in Vietnam. Both the Chartered and the Standard Bank opened offices in New York and Hamburg in the early 1900s. The Chartered Bank gaining the first branch licence to be issued to a foreign bank in New York. The impact of war Even the First World War offered opportunities for expansion when the Standard Bank set up a branch in Tanzania shortly after British troops occupied the formerly German administered Dar es Salaam in September 1916. Both banks survived the inter-war years but the world trade slump led to the closure of operations in the Canary Islands, Liberia, the Netherlands, and Equatorial Guinea. Disaster struck the Chartered Banks office in Yokohama, Japan, when an earthquake in 1923 killing a number of staff destroyed it. The Second World War particularly affected the Chartered Bank when numerous Asian countries were occupied by Japan. Standard Chartered in India The Chartered Bank opened its first overseas branch in India, at Calcutta, on 12 April 1858 Eight years later the Calcutta agent described the Banks credit locally as splendid and its business as flourishing particularly the substantial turnover in rice bills with the leading Arab firms. When the Chartered Bank first established itself in India, Calcutta was the most important Commercial city and was the centre of the jute and indigo trades. With the growth of cotton trade and the opening of the Suez Canal in 1869, Bombay took over from Calcutta as Indias main trade centre. Today the Banks branches and sub-branches in India are directed and administered from Mumbai (Bombay) with Calcutta remaining an important trading and banking centre. Standard Chartered is the largest international banking Group in India. Key businesses include Consumer Banking-Primarily credit cards, mortgages, personal loans and wealth management and wholesale Banking, where the Bank specializes in the provision of cash management trade, finance, treasury and custody services. It is the largest international banking group in India with an employee base of nearly 3500 people across the country. It also boast the largest branch network amongst all international banks in India-with 61 branches in 15 cities. With over 2.3 million retail customers, and a Credit Card base in excess of 1.3 million, it is the leaders in the consumer banking business. The wholesale bank has over 1200 corporate customers with a 33% market share in value with over 270 top transnational companies in India. INDUSTRY PROFILE What is Banking: Banking, in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investment. These deposits can have a distinct feature of being withdrawable by cheques, which no other financial institution can offer. In addition, banks also offer various other financial services which include. Issuing Demand Drafts Travellers Cheques Credit Cards Collection of Cheques, Bills of exchange Safe Deposit Lockers Issuing Letters of Credit Letters of Guarantee Sale and Purchase of Foreign Exchange Custodial Services Investment Insurance services The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their lending and investment activities. Every bank has a Compliance Department, which is responsible to ensure that all the services offered by the bank, and the processes followed are in compliance with the local regulations and the Banks corporate policy. The major regulations and acts that govern the banking business are Banking Regulations act, 1949 Foreign Exchange Management Act, 1999 Indian Contract Act Negotiable Instruments Act, 1881 Banks lend money either for productive purposes to individuals, firms, corporates etc, or for buying house property, cars and other consumer durable and for investment purposes to individuals and others. However, banks do not finance any speculative activity. Lending is risk taking. Banking in the New Millennium Were living in a world dominated by the new idea economy, ticking to the beat of Internet time, where customers are quality conscious, time conscious and price conscious. Technology is creating new agile players making the existing ones obsolete. In this scenario, the role of internet and its impact on banking still appears to be a puzzle. Banks around the world are subject to the same radical changes -new competition, technology, deregulation, and globalization. But, eventually, the classic rules of business will reassert themselves in this virtual environment and the winners will be the first and best movers. The challenges in this millennium for the banking industry are enormous. The technology and Banking sector reforms, together are lifting the competitive intensity of the Banking business. In Banking, embedding knowledge into products can enhance value, and connecting different knowledge sources can create innovative products. The banks that are first to market with the right mix of technologies, strategies and partnerships would be the sure winners. The banking environment worldwide is undergoing massive transformation. Despite the, not so favorable, market sentiments and an apparent backlash against dotcoms, serious players in established industries like banking, remain convinced that the Internet will have a profound impact on the banking sector. Mergers and acquisitions are changing the financial landscape, and cross-border linkages are drastically altering the business characters, in general and banking operations, in particular. But drawing firm conclusions can be dangerous, as mergers and consolidation take many different forms and the impact can give mixed results. But, there is growing concern as to whether mergers deliver the expected benefits and whether cross-border deals are feasible, particularly in Europe, where cultural considerations are seen as barriers to success. In Europe, players are beginning to assert themselves, as the Nat West battle is resolved. Nat west, one of the UKs biggest banks, was forced to accept a hostile takeover bid from a smaller rival, Royal Bank of Scotland in December 2000. Earlier in November 1999, Nat west rejected a similar bid by another small bank, Bank of Scotland. This move left the scene set for Royal Bank of Scotland to submit its long anticipated bid for Nat West. It was follo wed by a flurry of bid and counter bid by the two Scottish banks as Nat west fought to keep its independence. The Royal Bank of Scotland finally won by convincing the Nat West shareholders to accept its  £25 bn offer. This outcome has set the tone for a long overdue round of consolidation in the European financial sector. Coming home, Indian banking sector has come a long way from being a sleepy business institution to a highly proactive and dynamic entity. Indian banking system is in the midst of a technological revolution. It is impacting the Indian industry in three ways firstly, by providing efficient and effective delivery Channels, secondly, it is dramatically influencing the client profile, which in turn leads to the third change i.e. the Human Resources Management. As a service sector, it calls for a change in the attitude of the personnel that would have a salutary effect on customers. Indian Banking that was operating in a highly comfortable and protected environment till the beginning of 1990s has been pushed into the choppy waters of intense competition. Mergers and acquisitions, have been heating up in the new private banking sector since the HDFC-Times Bank merger came through in November 1999. The deal shook an otherwise placid Indian banking world and generated a kind of pressure on banks to shake hands with their peers to cope up with the competition. Going forward, the premium valuations of private banks compared to public sector banks depend on their ability to maintain high earnings growth and quality of assets. The current downturn in the economic activity could result in the increase of non-performing assets for most of the banks. The winner in the market would be the one who can sustain the high growth in business without compromising the asset quality. In this millennium, banks should strive to achieve significant increases in their productivity, efficiency, and profitability. The areas of challenges that lie ahead for the Indian banking sector would be: Restructuring and Reorganizing banks setup, leaner offices, merging and forging of strategic alliances to take advantage of the geographic spread of branch network of banks, develop new products and services that would meet the emerging needs of customers and professional Management structures that would be responsive to the changes in the business environment. The book Banking In The New Millennium examines this changing landscape for the banking services. The purpose of this book is to present the current trends, the emerging scenario and the building blocks in banking sector. A brief section is also dedicated to retail banking that is growing in a big way. The book is divided into four sections analyzing the various aspects of the banking scenario. Packed with the right mix of articles on e-banking, retail banking, and mergers and acquisitions, this book is intended to serve as an executive reference book on Banking. Challenges And Future In Banking Sector Mergers in the Banking, NPA, New Technology, Electronic Cash Transfer After the nationalization of Banks, increasing adoption of technology, continuous mergers in the banking, modernizing backroom operation in the banks and competition pave the path of growth of Indian banking. By the mid-1990, the near monopoly of public sector banks faced the competition by the more customer-focused private sector entrants. This competition forced older and nationalized banks to revitalize their operations. Year 1992 was the golden period of Indian Banking system due to the scam-tainted stock market. Large proportion of household saving moved into the banking system, which recorded an annual growth of 20 percent in deposit. But along with the continuous growth and modernization, there are several challenges confronting the banking sector. The main challenges facing the banking sector are the deployment of funds in quality assets and the management of revenues and costs. The problem of NPA (non- performing assets), overall credit recovery systems still exist. There is a continuous reforms and modernization is in process. A number of recon mediations of two Narasimham committees have been implemented. Foreign Banks focusing on corporate and on the middle class consumer and providing then better service. Nationalized Banks are also attempting to get on the path of automation. Strong Banks will acquire the weaker banks. The member of foreign banks operating in India has increased significantly and their share of total assets has also increased. In the year 2001 estimated foreign bank account for 14.7 percent of the total net profit of commercial banking sector in India. In spite tangible progress and the contribution of Narasimham I and Narasimham committee reports the banking sector in India suffering from systemic and structural problem. OBJECTIVES The main objective of this project report is to make an analytical study of Standard Chartered Bank It includes History of the Bank Product Analysis Service Banks Accounts Comparison of the saving accounts with other leading Banks of India REASEARCH METHODOLOGY Data collection has been done from both sources primary as well as secondary. Primary data : by meeting various managers of the Standard Chartered Bank, Citibank, ABN-AMRO Bank, ICICI, HDFC, HSBC, GTB, UTI and IDBI. Secondary data: From newspaper, magazines, Libraries. CONCEPTUAL FRAMEWORK Investment in India Banking Banking System Introduction The Reserve Bank of India (RBI) is Indias central bank. Though public sector banks currently dominate the banking industry, numerous private and foreign banks exist. Indias government-owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership. Private and foreign banks The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion. Capital adequacy norm Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993, while Indian banks with overseas branches had until March 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of Indias insurance sector to private domestic and foreign participants, while keeping the national insurance companies in operation. Banking India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector. RBI banking The Reserve Bank of India is the central banking institution. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the governments monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign banks operate in India with full banking licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. Indian banking system The banking system has three tiers. These are the scheduled commercial banks; the regional rural banks that operate in rural areas not covered by the scheduled banks; and the cooperative and special purpose rural banks. Scheduled and non-scheduled banks There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector. Local financing All sources of local financing are available to foreign-participation companies incorporated in India, regardless of the extent of foreign participation. Under foreign exchange regulations, foreigners and non-residents, including foreign companies, require the permission of the Reserve Bank of India to borrow from a person or company resident in India . Regulations on foreign banks Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks. RBI restrictions The Reserve Bank of India lays down restrictions on bank lending and other activities with large companies. These restrictions, popularly known as consortium guidelines seem to have outlived their usefulness, because they hinder the availability of credit to the non-food sector and at the same time do not foster competition between banks. Indian vs foreign banks Most Indian banks are well behind foreign banks in the areas of customer funds transfer and clearing systems. They are hugely over-staffed and are unlikely to be able to compete with the new private banks that are now entering the market. While these new banks and foreign banks still face restrictions in their activities, they are well-capitalized, use modern equipment and attract high-caliber employees. Government and RBI regulations All commercial banks face stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to priority sectors and the high liquidity ratio and cash reserve requirements severely limit the availability of deposits for lending.The RBI requires that domestic Indian banks make 40 percent of their loans at concessional rates to priority sectors selected by the government. These sectors consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32 percent of their loans to these priority sector. Within the target of 32 percent, two sub-targets for loans to the small scale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed. Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector. Commercial banks lent dols 8 billion in the Indian financial year (IFY, April-March) 1997/98, up sharply from dols 4.4 billion in the previous year. The deployment of gross loans was as follows: FINDINGS AND ANALYSIS BUSINESS Consumer Bank Consumer Banking Offers a wide range of premium banking products and services through the network of 90 branches in 19 cities across the country to cater to customers diverse financial needs. Wealth management offers a complete and comprehensive range of products to fulfill a gamut of customer investment and financial needs. These include domestic and NRI transaction accounts (with several value-add products and services like ATM and globally valid Debit Card, phone banking, extended banking, any branch banking, door step banking and investment advisory services), distribution of capital market and insurance products and dematerialization services and finances against shares. Standard Chartered also offers Priority Banking that is personalized banking for the privileged few. Standard Chartered Group is a leading credit card issuer in India and has several firsts to its credit. These include issuance of the first Global Credit Card in India, the first Photo card, the first Picture Card. Our card division under Unsecured Payments is also the first in South Asia to be accorded an ISO 9002 certification. The credit Cards and Personal Loans Offer include co-branded cards with unique value propositions and cards like Sapnay for the middle-market segment. The division offers a range of personal loan products and also a personal line of credit through products such as Smart Credit. Our Secured Loan Division offers mortgage auto loans and also unique overdraft products like ‘Mileage that offer revolving credit facility against the security of a used or new car. Standard Chartered Finance (SCF), an NBFC is our Centre for Excellence in Service and product distribution arm. Products include loans/leases for new passenger cars, used cars commercial vehicles and medical equipment. Standard Chartered Finance has an extensive network of branches in India. Wholesale Bank Corporate and Institutional Bank Standard Chartered is particularly strong in Institutional relationships and is the preferred correspondent bank for over 300 domestic and international bank, the largest such private sector network in India. The Bank focuses on service quality and all its operational units in trade, cash management, treasury and custody are ISO certified. Standard Chartered is Indias largest foreign trade finance bank and offers a full complement of trade finance products, including export credit in foreign currency, export letters of credit confirmations, merchanting trade and buyer credits. It is one of the few banks in India to offer services like channel financing forfeiting, without recourse export finance, project export and service export approvals and sponsorships. As a leading cash management supplier across emerging markets, Standard Chartered Offers Complete end to end cash management solutions for corporate and institutions. The Greenwich survey for 2001 nominated Standard Chartered the Best Cash Management Service Quality Bank in India Range of Products include vostro accounts, draft drawing, telegraphic transfers and an international payments facility that allows foreign currency payments without a separate account. Standard Chartereds custody and clearing service unit has served Foreign Institutional Investors in India with Superior client servicing, supported by Sophisticated and flexible computerized systems. It is the only custodian in India to earn the ISO 9001:2000 standards certification. Standard Chartered has received top ratings in Industrys benchmark surveys the Global custodian survey 2000 and the Global Investor Survey 2000. Global Markets Standard Charted provides a complete 24 hour coverage of the worlds foreign exchange markets. It provides a broad range of products like Exotic currencies, Derivatives, Debt Capital markets, Currency Options and Electronic trading. Standard Chartered was the first bank in India to introduce its on-Line Treasury, a browser enabled dealing system that enables real-time transactions. Standard Chartered is also recognized as a leading market for the Indian Rupee. The Banks Treasury-the No.1 Treasury in India-is amongst the most active treasuries in the country, being a market maker in local currency and money markets. While we seek to provide advice, treasury products and services to our global clients in the Indian market, we also have active relationships with some of the biggest and most diversified Indian companies and many medium sized companies. With a large specialized sales force, we cater to all foreign exchange, money market and risk management needs of our corporate clients. Treasury has an active inter bank desk which, apart from being a market maker in the Indian Rupee spot and the forwards market, actively quotes for other currencies. The money Market Desk is a leading player in the Rupee markets and in Government and corporate debt trading. The derivative Desk is a market maker in the Rupee Interest rate swap market. We also run one of Indias largest derivative books and offer products up to 7 years tenor. The corporate desk is amongst the largest among the foreign banks in India. With a presence in 5 major cities with state of the art dealing rooms and a corporate sales force of over 20 dealers, we have an unmatched reach and service capability across India. In addition to servicing currency market and investment needs of corporate clients, our corporate desk is active in advisory services pertaining to structuring and risk management. Standard Chartered Mutual Fund is one of the largest and fastest growing debt funds in the market. Standard Chartered Mutual Fund is the only fund that focuses only on the debt segment and prides itself on having developed one of the finest interest rate tracking models. Consumer Bank-Products Types of Deposits Bank Deposits B

Individual and Society During the Great War Period :: Essays Papers

Individual and Society During the Great War Period The concept of nationalism amongst European countries grew throughout the19th century and was maintained during the Great War. People began to see themselves as part of a nation, which came before the individual. As a result of this, individual freedoms, rights, and ideas were dismissed in order to solidify the nationalistic society. Nationalistic attitudes were implanted in the minds and hearts of the public by way of propaganda, education, and unification. People were under the belief that unification was necessary for the progression of their country, and were willing to give their lives for this ideal. This ultimately led to the beginning of the Great War. The imposition of national unity limited people from being individuals, separate from the whole of society, with their own beliefs, ideals, and freedoms. Nationalism purposefully limited them by creating a central norm which not all people were willing or able to adhere to. People's rights and freedoms were slowly whittled away at by the states entrance into their lives. The state did this in many ways. The impression of a distinct language and culture were done through the use of schools. They also accomplished this through programs and common goals. As a result of the growing number of schools and literate people, printed materials advocating nationalism and patriotism aided in this development.(1)Patriotism and loyalty to the state were instilled at an early age in the hope that the child would carry them through to adulthood. People's trust and dependence on the government increased during this period, increasing its power and influence over their lives. People believed that they were becoming unified in order to protect their common freedoms and their country's opportunity for progression. This unification of individuals into one body gave them the strength of a common bond. This would cause them to stand behind their nation, and put it above all else. The feelings that nationalism ignited within people, such as patriotism and loyalty to one's country, both aided in the development of World War I, and were used as ammunition by the rulers to enhance people's willingness to give their lives to the country through battle. People no longer viewed themselves as individuals, but rather, part of the nation. During the Great War, individual needs were set aside for the good of the nation. This was carved into the minds and hearts of the soldiers as well as those that were back at home.

Managed Care

The article seeks to identify the problems that face managed care organization (MCOs) in contemporary competitive environment which include broad public opinion, competitive realities, need for cost reduction. The article also notes that there has been an increase in health care cost despite the establishment of the managed health care systems implemented through the managed care organizations. Increase in cost remains to be a major concern for patients/consumers. Due to this, patients are ready to switch from one plan to another in which cost difference in premium is as little as $15. 0 per month. The article also claims that there has been concern from the society as far as quality of managed healthcare service is concerned. Such concerns encompass: accessibility, and the verification of what is ‘medically necessary’ including the diagnosis tests and referrals. Other concern is freedom of choice. Additionally, perceived quality which is increasingly valued by contempor ary patients/consumers has been lacking in the managed care organizations. (Entrepreneur 1998). Strategies or techniques are used to solve the problem or address the issue. This article proposes application of institutional theory to MCOs performance as well as strategic planning. Over emphasizing of institutional theory at the expense of strategic planning will not help the managed care organization to survive in the contemporary competitive environment. The article proposes a strategy that will respond and conform to the needs of the patients and the society at large. Being cost efficient and conforming with socially accepted norms will lead to superior performing of MCOs. Thus, a strategy that encompasses technical requirements as well as conforming to needs of the patients/consumers is very critical for success of any MCO. Only emphasizing or dealing with cost issue is not a strategy for long-term MCO superior performance and success. The article also proposes that all MCOs must demonstrate what contemporary consumers/patients and society expects. These expectations include accessibility, freedom of choice, and perceived quality i. e. always provide value for all patients. ( Entrepreneur1998). My conclusions and recommendations It is clear that the establishment of managed care and the managed care organizations have not been a panacea to all problems facing patients/consumers. Instead, what the patients would like to have is more accessibility to health care services, freedom of choice, better services emphasizing on perfect diagnosis tests, reduction in cost of this services as well as flexibility of managed care systems. This is yet to become a reality. To ensure this, responding to consumers/patients needs will be of great importance. This should include training the health care workers on the best way to serve the patients better, and carrying out perfect diagnosis tests before treating the patients. Increase in number of medical practitioners in MCOs so as to ensure accessibility of these services should also be considered. The managed care plans should also employ modern technology that will improve the quality of health care services. This should encompass better disease diagnosing equipments, and establishing better information systems. Reduction of cost is also very imperative. All inefficiencies and wastage should be checked through a well planned compliance system that should work closely with the human resource department. (Harris, J. S. 1994; Morton-Cooper & Bamford 1997; Alexander & Amburgey. 1987) Contribution of the article to helping practicing healthcare managers This article is of great help to many practicing healthcare managers. First, it point out the importance of being market oriented i. e. responding to the needs of the patients/consumers and society at large. Factors that determine patients choice of particular health care provider i. e. accessibility of the service, cost of the service, perceived quality such perfect diagnosis test for appropriate medication and so on are also enlisted. The article also emphasis on need of employing a strategy that ensures adherence to technical requirements, cost reduction, high quality, and also freedom of choice to the patients/consumers. Such insight is of great importance to any practicing health care manager who wants to succeed in this career. Managed Care The article seeks to identify the problems that face managed care organization (MCOs) in contemporary competitive environment which include broad public opinion, competitive realities, need for cost reduction. The article also notes that there has been an increase in health care cost despite the establishment of the managed health care systems implemented through the managed care organizations. Increase in cost remains to be a major concern for patients/consumers. Due to this, patients are ready to switch from one plan to another in which cost difference in premium is as little as $15. 0 per month. The article also claims that there has been concern from the society as far as quality of managed healthcare service is concerned. Such concerns encompass: accessibility, and the verification of what is ‘medically necessary’ including the diagnosis tests and referrals. Other concern is freedom of choice. Additionally, perceived quality which is increasingly valued by contempor ary patients/consumers has been lacking in the managed care organizations. (Entrepreneur 1998). Strategies or techniques are used to solve the problem or address the issue. This article proposes application of institutional theory to MCOs performance as well as strategic planning. Over emphasizing of institutional theory at the expense of strategic planning will not help the managed care organization to survive in the contemporary competitive environment. The article proposes a strategy that will respond and conform to the needs of the patients and the society at large. Being cost efficient and conforming with socially accepted norms will lead to superior performing of MCOs. Thus, a strategy that encompasses technical requirements as well as conforming to needs of the patients/consumers is very critical for success of any MCO. Only emphasizing or dealing with cost issue is not a strategy for long-term MCO superior performance and success. The article also proposes that all MCOs must demonstrate what contemporary consumers/patients and society expects. These expectations include accessibility, freedom of choice, and perceived quality i. e. always provide value for all patients. ( Entrepreneur1998). My conclusions and recommendations It is clear that the establishment of managed care and the managed care organizations have not been a panacea to all problems facing patients/consumers. Instead, what the patients would like to have is more accessibility to health care services, freedom of choice, better services emphasizing on perfect diagnosis tests, reduction in cost of this services as well as flexibility of managed care systems. This is yet to become a reality. To ensure this, responding to consumers/patients needs will be of great importance. This should include training the health care workers on the best way to serve the patients better, and carrying out perfect diagnosis tests before treating the patients. Increase in number of medical practitioners in MCOs so as to ensure accessibility of these services should also be considered. The managed care plans should also employ modern technology that will improve the quality of health care services. This should encompass better disease diagnosing equipments, and establishing better information systems. Reduction of cost is also very imperative. All inefficiencies and wastage should be checked through a well planned compliance system that should work closely with the human resource department. (Harris, J. S. 1994; Morton-Cooper & Bamford 1997; Alexander & Amburgey. 1987) Contribution of the article to helping practicing healthcare managers This article is of great help to many practicing healthcare managers. First, it point out the importance of being market oriented i. e. responding to the needs of the patients/consumers and society at large. Factors that determine patients choice of particular health care provider i. e. accessibility of the service, cost of the service, perceived quality such perfect diagnosis test for appropriate medication and so on are also enlisted. The article also emphasis on need of employing a strategy that ensures adherence to technical requirements, cost reduction, high quality, and also freedom of choice to the patients/consumers. Such insight is of great importance to any practicing health care manager who wants to succeed in this career. Managed Care The article seeks to identify the problems that face managed care organization (MCOs) in contemporary competitive environment which include broad public opinion, competitive realities, need for cost reduction. The article also notes that there has been an increase in health care cost despite the establishment of the managed health care systems implemented through the managed care organizations. Increase in cost remains to be a major concern for patients/consumers. Due to this, patients are ready to switch from one plan to another in which cost difference in premium is as little as $15. 0 per month. The article also claims that there has been concern from the society as far as quality of managed healthcare service is concerned. Such concerns encompass: accessibility, and the verification of what is ‘medically necessary’ including the diagnosis tests and referrals. Other concern is freedom of choice. Additionally, perceived quality which is increasingly valued by contempor ary patients/consumers has been lacking in the managed care organizations. (Entrepreneur 1998). Strategies or techniques are used to solve the problem or address the issue. This article proposes application of institutional theory to MCOs performance as well as strategic planning. Over emphasizing of institutional theory at the expense of strategic planning will not help the managed care organization to survive in the contemporary competitive environment. The article proposes a strategy that will respond and conform to the needs of the patients and the society at large. Being cost efficient and conforming with socially accepted norms will lead to superior performing of MCOs. Thus, a strategy that encompasses technical requirements as well as conforming to needs of the patients/consumers is very critical for success of any MCO. Only emphasizing or dealing with cost issue is not a strategy for long-term MCO superior performance and success. The article also proposes that all MCOs must demonstrate what contemporary consumers/patients and society expects. These expectations include accessibility, freedom of choice, and perceived quality i. e. always provide value for all patients. ( Entrepreneur1998). My conclusions and recommendations It is clear that the establishment of managed care and the managed care organizations have not been a panacea to all problems facing patients/consumers. Instead, what the patients would like to have is more accessibility to health care services, freedom of choice, better services emphasizing on perfect diagnosis tests, reduction in cost of this services as well as flexibility of managed care systems. This is yet to become a reality. To ensure this, responding to consumers/patients needs will be of great importance. This should include training the health care workers on the best way to serve the patients better, and carrying out perfect diagnosis tests before treating the patients. Increase in number of medical practitioners in MCOs so as to ensure accessibility of these services should also be considered. The managed care plans should also employ modern technology that will improve the quality of health care services. This should encompass better disease diagnosing equipments, and establishing better information systems. Reduction of cost is also very imperative. All inefficiencies and wastage should be checked through a well planned compliance system that should work closely with the human resource department. (Harris, J. S. 1994; Morton-Cooper & Bamford 1997; Alexander & Amburgey. 1987) Contribution of the article to helping practicing healthcare managers This article is of great help to many practicing healthcare managers. First, it point out the importance of being market oriented i. e. responding to the needs of the patients/consumers and society at large. Factors that determine patients choice of particular health care provider i. e. accessibility of the service, cost of the service, perceived quality such perfect diagnosis test for appropriate medication and so on are also enlisted. The article also emphasis on need of employing a strategy that ensures adherence to technical requirements, cost reduction, high quality, and also freedom of choice to the patients/consumers. Such insight is of great importance to any practicing health care manager who wants to succeed in this career.