F.Y.Bcom Commerce Case Study


KB Bank provides loan to customers on interest on reducing balance system.This reduces monthly payment burden on loan customers.Recently bank installed a new software CALCULUS for calculation of customer’s EMI’s.It proved to be a costly decision,the software not only gave wrong figures but also was non functional in peak hours.Inspite of repeated complaints the bank neither improved nor replaced the software.Many customers transferred loans to other banks.The others sought legal help for grievances.The loan department which was usually flooded with fresh loan applications,is now full with legal notices. To resolve the issue the bank immediately called a ‘Emergency Meeting’of loan executives to repair the damage.The outcome was fruitfull within three weeks grievances were settled.Bank also sent apology letters to customers.Soon legal notices were replaced by peaceful agreements.Majority of the bank customers retained their loyalty and happily reunited with their preferred bank.

Bring out the problems created by CALCULUS software
In what way the Emergency meeting helped the bank.


GS corporation is a reputed name in customer service and quality IT products.it usually keeps database of every transaction with central database of mumbai near its headoffice every week. Like any usual weekday the Delivery person Mr Hegde was handed over the task of taking the CD back up from headoffice and store in database system at Thane,unforunately he misplaced the same in the mad train rush,but had the courage to say the truth in the board meeting of same day.The board just told to be careful in future but immediately informed the client Kicksson Ltd that their data has been lost and they are free to impose any penalty on the company.The client got furious not only it cancelled the deal but also reported in newspapers about the loss created by GS corporation.This way many clients backed out the company but many new and big clients like Tata Infotech also joined learning about transparent policy of company to deliver true informationt o customer.Now GS corporation is a happy vendor for the biggest IT company inIndia all due to its fair dealings.
Q.1 Is it right to just let go Mr Hegde for the mistake.?
Q.2 Do you think company benefited by its truthful policy to customers?

ARTICLE:1Abstract: The globalization  was welcomed in Indian economy with many ambitious and high end promises in 1991.The impact which it aimed to create was wiping regional imbalance and suddenly pushing the economy on a speedy springboard of prosperity and growth year after year.

The Indian service sector was almost ready for a transformation into a professional and customer oriented for customer.It was estimated that the employment would multiply,incomes may grow  and also we would move to be a developed India.

Quite against the expectations the actual picture doesnot have any pleasant colours,the employment generation have been at a fluctuating rate,the incomes remained ore or less shifted fragments of income creating the total income of the sector almost at the same level.With respect to the GDP contribution by service sector even though it has increased ore than 5 times in comparision with 1991 but growth has been more pleasing for an Economist’s analysis of statistics but certainly not matching the growth aspirations of an average Indian.


Introduction:Globalisation in its true sense means to upscale the economic activity of any country with the overall growth and development taking place across the countries.It was the same promise  which lured Indian economy and its people to provide a red carpet welcome to this concept of mingling with the world’s traditions and adopting a culture of modernization with an Indian touch.

Indian Economic Scenario PreGlobalisation:An overview about the Indian economic position before globalization shows that somewhere the public sector managed and owned by Indian govt managed to grow and provide a secured and sustainable growth to the various segments and service sector.
In simple terms the servicer sector was more profitable and employment oriented before the globalization factor as compared to the after implementation.

In service sector of any economy developed or the developing the main crux lies on as to whether there is increase in the incomes and better economic facilities to the common man due to the advantage and faster reach of the service sector.

It is pertinent to note that among the service sector defence was given the highest expenditure allocation for many years till 1991,this not only drained the impact which could have been created by the service sector and also help in terms of creating the right change and the impetus through which there can be support as well as right direction which was much awaited in the service sector.

If one compares the education scenario before 1991 even at a slow pace the education was affordable and easily accessable before the open economy system as compared to the scenario when Indian was flooded with private universities offering high value and highly sophisticated courses.

The same position applies to the health sector even with bare minimum facilities prior to the globalization the average Indian  could at least afford the 3 to 5 times the medical expenses 3- 5 times in a yea now inspite of mediclaim the same has decreased to about 2 times affordable capacity after the globalization.

Indian Economic scenario after Globalisation: Post globalization the entry of the private players in the various service segments not only provided a new definition to the service sector but also added one ore dimension to the service which was ‘Affordability’. Yes we all are connected by wireless and cordless telecom service but does the same contribute towards increasing the income when every one else also has the same facility.The time has finally arrived when we as ourselves a very basic question that is globalization mere increasing the expenditure on the services provided by the service sector or is it improving the percolation of the growth to the as and the most vulnerable strata of society.

We do claim with pride that Retail sector got glorified after service industry.In its true sense the retailers have become more prone to squeezing the margins after entry of foreign retailers by FDI mode.It is expected that is foreign giants enter the market about 42% of the unorganized retail would be on verge of extinction du to lack of service and more so the lack of the right marketing strategies.

Our Opportunities with Globalisation:One of the most prominent dividends by the globalization is developing prompt and effective range of services accessible just at the click of mouse. It is nothing but digitalization of services which has been of the most rewarding success via globalization it not only has helped to improve the spread of services but also made it possible to create the groundlevel framework to create long term working models.

We created new segments in services like lifesciences,micro finance,commodits,derivatives etc for average Indian who now can endeavour to fit in his lower strata of income with the entry level base of services sector.

Challenges in the service sector:The service sector in India is subject to a series of hurdles ahead.The sector has  a common dilemma of increasing costs and decreasing revenues in the times to come.Not only there is likely to be problem of lay offs in sector especially the very vulnerable BPO sector but also in plum segments like Banking and Insurance there has been a single digit growth in private secor.The latest news being Apollo Insurance and Future Generalle insurance have already closed their shops and Bharti AXA reporting a all time low in sales volumes in past three years.With these
conditions in mind it is certainly not a promising position for Indian services be it hospitality segments like seven hills not able to pay its staff or increasing NPA’s of Housing loans in India the only factor which would and sustain the growth of Indian services in the future shall be the customer base and the affordability so that fortune at the below the line segment may drive and accelerate the services growth  in India.


Role of Private Sector in Microfinance in Maharshtra.

Introduction:The concept of Microfinance is dealing with providing low interest and minimum formalities in financial asssiatnce to small scale and cottage industries in Maharashtra. The theoretical base of MicroFinance is developing the system through which the business or individual can get an almost unsecured loan, sometimes with guarantor and sometimes just with the honest trust and the assumption that the money would be paid back promptly with the interest by the borrower.

Entry of private sector in Micro finance;The private sector has entered basically in the format of ‘Patpedis’ in the regions of Maharashtra. These Patpedhi’s are nothing but small groups of unorganized sector which come together with funds and profits from the lending activities to the various members of the fund.

From a very preliminary stage of the MoneyLender  Controlled lending now the same has been transformed into the Professional and customer friendly format of lending in Maharshtra and we appreciate the same thing as Microfinance. To put it in simple words it is providing the financial solutions to the needy group based on the trust and the repayment capacity expected from the earlier transactions.

Growth of Microfinance in Maharshtra: Modern microfinance emerged in the 1970s with a strong orientation towards private-sector solutions. This resulted from evidence that state-owned agricultural development banks in developing countries had been a monumental failure, actually undermining the development goals they were intended to serve. Microfinance experts generally agree that women should be the primary focus of service delivery. Evidence shows that they are less likely to default on their loans than men. Industry data from 2006 for 704 MFIs reaching 52 million borrowers includes MFIs using the solidarity lending methodology (99.3% female clients) and MFIs using individual lending (51% female clients). The delinquency rate for solidarity lending was 0.9% after 30 days (individual lending—3.1%), while 0.3% of loans were written off (individual lending—0.9%).Because operating margins become tighter the smaller the loans delivered, many MFIs consider the risk of lending to men to be too high. This focus on women is questioned sometimes, however. A recent study of microenterpreneurs from Sri Lanka published by the World Bank found that the return on capital for male-owned businesses (half of the sample) averaged 11%, whereas the return for women-owned businesses was 0% or slightly negative.

Scope of Micro Finance: Regionally the highest concentration of these accounts was in India (188 million accounts representing 18% of the total national population). The lowest concentrations were in Latin American and the Caribbean (14 million accounts representing 3% of the total population) and Africa (27 million accounts representing 4% of the total population, with the highest rate of penetration in West Africa, and the highest growth rate in Eastern and Southern Africa  ). Considering that most bank clients in the developed world need several active accounts to keep their affairs in order, these figures indicate that the task the microfinance movement has set for itself is still very far from finished.
By type of service "savings accounts in alternative finance institutions outnumber loans by about four to one. This is a worldwide pattern that does not vary much by region."
An important source of detailed data on selected microfinance institutions is the MicroBanking Bulletin, which is published by Microfinance Information Exchange. At the end of 2009 it was tracking 1,084 MFIs that were serving 74 million borrowers ($38 billion in outstanding loans) and 67 million savers ($23 billion in deposits).
As yet there are no studies that indicate the scale or distribution of 'informal' microfinance organizations like ROSCA's and informal associations that help people manage costs like weddings, funerals and sickness. Numerous case studies have been published however, indicating that these organizations, which are generally designed and managed by poor people themselves with little outside help, operate in most countries in the developing world.
Help can come in the form of more and better qualified staff, thus higher education is needed for microfinance institutions.
Challenges of Micro Finance Institutions:
n the recent years, though money lending through MFIs has become a major financial activity in the villages, barbaric and inhuman methods such as harassing borrowers, intimidating, abusing, mentally and physically harassing them have been incorporated into the whole process of money lending. The borrowers are always under the pressure to repay the loan (on a weekly basis) at a heavy compound interest for petty loans they take.
Another argument is that MFIs lend money at exorbitant interest rates which range from 20 percent to 40 percent. This ugly face of MFIs gives us a vivid picture of the dark underbelly which is now making its way into the media.
In the name of empowering the poor, this form of organized exploitation has given many reasons for businessmen to make money at the cost of the poor, who are often seen as “fortune at the bottom of the pyramid.” Previously, money lenders lent money at higher rates of interest because it was the individual who was lending money, but now, it is an institution comprising of a group of individuals who are lending money and in turn, pocketing extra money from the poor in the name of interest rate.
Conclusion: Microfinance as an  institution that would combine the strengths of an NGO and that of a financial institution would be beneficial to a community. But, the reliability factor on such institutions is always questionable because there is a risk of these institutions becoming like the regular MFIs which petrify the beneficiaries to repay loans. So, this model should enable members of a community to have access and control over the financial resources.
Article :3
Talking of e-commerce experts, there are many who took the step ahead well before time and are enjoying the benefits of being the first movers. Small and Medium Enterprises (SMEs) are building a professional online presence by registering to B2B portals and are tasting success as the amount of queries generated has been growing. According to a study by Google, there are around 30-35 million SMEs in India, out of which about 8 million have the potential to do online business.
Aligarh based Mayank Goyal runs Masterpiece Jewellery who exploited the e-commerce platform way back in 2006 by joining Alibaba.com and developed the first-mover advantage. Dealing in silver, gold and gemstones, Goyal exports them to countries like US and UK and unconventional markets like Spain and Italy, all thanks to e-commerce. Goyal's business turnover is more than Rs 6 crore now and has been increasing by around 50-150% every year. The average transaction sizes anywhere between Rs 2-3 lakh.

Article:4Social Media Marketing Challenges: Measuring the effectiveness of social media marketing and allocating sufficient resources to it were identified as the biggest challenges facing marketers in 2012.

Results of a study conducted in December 2012 by social marketing software provider, Awareness Inc. have recently been released in a paper titled ‘The State Of Social Media Marketing: Top Areas For Social Marketing Investment And Biggest Social Marketing Challenges In 2012′
The survey, answered by 320 marketers from various industries and with varied levels of experience in social marketing, highlights how professionals can improve their social marketing skills and reach out to a larger audience in order to maximise their ROI.
In 2012, there will be an increased presence of businesses across social marketing platforms, according to the report. Content publishing is predicted to happen at a higher frequency and social marketing management and monitoring will receive more attention.
Among the major challenges that marketers continue to face are the generation of sufficient resources – 77% of respondents identified this is a challenge – followed by the ability to accurately measure the return on investment generated by their marketing campaigns – 58% of respondents consider this to be a challenge.
Apart from popular social sites like Facebook, Twitter and LinkedIn, marketers are also trying to make use of other resources such as blogs, forums and YouTube. Mobile is also recognised as a growing area for investment.
It has been found that those who are new to social marketing do not give much importance to the availability of appropriate tools and methods, but those who already run social campaigns pay more heed to the availability of the right tools and methods to reach out to the target audience.

Emphasis on Measurement & Monitoring

78% of those surveyed have reported that they monitor social media channels to check how often their brand is being mentioned, while 62% monitor industry conversations for the same purpose. Most of those who have not concentrated on this activity in the previous year, plan to do so this year.
While it is difficult to actually measure the ROI of a campaign, it is necessary, in order to decide the future allocation of budgets. A majority of marketers used the number of new fans and followers as an indicator of their reach. Others used the amount of traffic generated from social channels to Web properties as an indicator of success.