Quantitative techniques-II Assignment

Name-Jasraj Singh Gill Registration No.- 11003679 Roll No. - RQ4005A01 Section Q4005

Q.1.A manager of a bank comes with the symptom of a problem Profitability at a bank is declining as customers are shifting to other banks. As a researcher, identify the problem (root cause of the symptom) through a scientifically crafted research proposal. Ans. As a researcher I can relate the above problem with example of Axis bank as over the past several years Axis Bank has reflected a stupendous growth. It is the third largest private sector bank in the country after ICICI bank and HDFC bank with a network of 594 branches with 2500 ATM centers. This network should cross 700 branches and 3000 ATM centers by financial year 2008. Most of the new branches are likely to be set up in Tier II and Tier- III cities, which would help increase its presence in the unbanked areas. While Banks are commoditized businesses the clutch of new generation private sector banks are getting out of that commodity trap and investing in businesses and resources that generate a stream of fee based income: http://www.dailymotion.com/video/xfc5ew_kathryn-hahn-hot-sex-from-behind_sexy#rel-page-2 http://www.dailymotion.com/video/xdw7fl_nude-ludivine-sagnier-sexy-wet-body_sexy#relpage-under-1 http://www.dailymotion.com/video/xejqoa_lauren-reina-hot-nude-sex-on-bed_sexy#rel-page-12 http://www.dailymotion.com/video/xfc5iu_nude-gabriela-barajas-erotic-sex-scene_sexy#relpage-5 Most of these private sector banks are a great proxy on insurance and AMC as they derive a significant part of their fee income from distributing these products without necessarily taking on the risks for the same. Recently Axis Bank has raised capital and retired high cost debt thereby increasing its Net interest margin to 3.2% from 2.9% in the same quarter last year. The management expects to maintain NIM at around 3.2% in the quarters to come. In the last quarter CASA grew to 45.4%, an increase of 540 bps year over year. Axis compares very favorably with HDFC bank on all efficiency parameters. Though HDFC Bank is still ahead to Axis in terms of CASA, NIM, and RoA the recent trend in the results of Axis Bank indicates that within the next 12-18 months Axis should get closer to HDFC bank in terms of efficiency parameters. Wider Business Model vs. HDFC bank: A few factors that favor such a efficiency hike in Axis bank to HDFC bank are: While HDFC bank is retail focused Axis bank derives 24% of its business from retail clients and the bank intends to slowly increase its thrust into that segment. Axis Bank recently applied to SEBI for setting up an AMC. Now HDFC Bank cannot set up an AMC because its parent HDFC already has one so there is a conflict of interest here. Tomorrow Axis could get into anything within the financial services space whether it is brokerage or Insurance but HDFC bank is handicapped by its parent (for conflict of interest) in terms of such an extension. While Axis bank has provided an annualized return of over 49% (without including dividends), since the Banks IPO in September 1998 and investors could peg down their return estimates Axis does remain one of the best bets to play the Indian Financial services industry. Personally I have a significant position here which I had disclosed and recommended on this thread. I do find it attractive over HDFC Bank in terms of valuation with regard to growth, efficiency and asset quality.

Maybe the change in name from to Axis Bank from UTI Bank should indicate to the general investing community that Axis is not a PSU Bank and deserves a better valuation then to what it is getting. From the above example we can see that by offering attractive schemes to the customers can surely increase the revenues of a company.

Q.2.An HR manager comes with an issue symptomatic of an underlying problem. He says that levels of employee motivation in his organization are dropping leading to drop in employee productivity. Draft a research proposal to identify the problem and suggest a methodology for recommending a solution. Ans. The job of the HR manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But thats easier said than done! Motivation practices are difficult subjects, touching on several disciplines. The main question that arises is why motivating an employee is necessary? Well, research and observation shows that well motivated employees are more productive and creative .motivation is the key to performance improvement of the employee thus increasing the revenues of the business. The 5 key elements in employee motivation are: 1) Strong set of values Values are peoples deep sacred convictions about how they must behave themselves .These set of values are not wishful thinking on the contrary, the companys values determine the behavior of all employees at all levels in the organization not only front line workers must behave according to these values, but especially top management as well, who maintains credibility by walking its talk and keeping 100% its integrity the values discipline should be strictly enforced across the company. 2) Employees comes first The employees personal well being is a most important matter for leadership the entire company places significant importance on every single job. All employees are highly valued and respected as individuals, which in turn, engenders strong feelings of mutual belief, trust, and certainty to perform. Top management should be meticulously careful to invest heavily in training, in development, and in the creation of opportunity for everybody the company is willing to take risks on its people to a degree that might seem extreme for outsiders. 3) Distributed leadership

Most employees at most organizational levels play leadership roles as needed, most workers start actions that other employees will follow. Since the essence of leadership is changed, a positive organizational change index creates a higher degree of adaptability, which is necessary now more than ever only cultures that help organizations anticipate and adapt to environmental changes will have superior performance over the long haul. 4) Performance management A key feature of performance management is its performance transparency. To begin with, a company obsessively measures three dimension of performance: Employee well being Customer satisfaction Shareholder gain

Hence, in order to reach their clearly articulated goals, the performance of the average worker is critical; therefore, company should emphasizes a rigorous tracking and rewarding of individual performance, coupled with clear, immediate and straight feedback. It goes without saying that goals, roles, and responsibilities should be crystal clear as anybody can spell for you performance metrics that matter to the company. The focal point on performance begins with recruiting and hiring, and it goes on throughout the performance appraisal, recognition, and reward processes. The understanding of current individual performance, current departmental performance, and current organizational performance, in other words: having the big picture is a key factor in any employee motivation setting. 5) Rewards & Recognitions Workers know that the company provides meaningful recognition and rewards for their performance they know exactly what it is the company gives them in return for their exceptional work there is no doubt about it. The entire company places particular importance in exploring every conceivable technique, approach, and device to recognize excellent performance this is an ongoing effort where everybody is involved. The organization recognizes all employees directly in proportion to their personnel, this generates a contagious collective energy across the whole organization and as a consequence, the work environment is animated with eagerness, enthusiasm, and joy it is an environment that employees love. Payment of salaries being the main motivational force motivates the employees to perform efficiently in all courses of work. Non-payment of salaries may cause lack of employee motivation thus declining the revenues of the business. To explain this point we can take the example of Air India as non-payment of salaries to the employees caused a huge ruckus in the company which brought a huge loss to company.

Q.3.A manager of an FMCG company approaches you with the fact that levels of brand satisfaction with his leading product are falling leading to declining revenues. Draft a research proposal for the client based on a scientific methodology. Ans. It is a general rule that when people consume more of the same product, the level of satisfaction they get from the each consumption of the product declines. So, people tend to shift from one brand product to another after an interval of time to achieve maximum satisfaction without taking into consideration the brand of the product. The same is the problem of that FMCG Company; consumers have shifted from the product this company makes to some other product. One great example of such shift is Amul vs. Nestl: Amul India and Nestle India has been the two major players in the milk products industry since a very long time. While Nestls ties with India dates back to 1912 as an export unit operating under the name The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited where it imported and sold finished products in the Indian market, it set up its first factory in 1961 at Moga, Punjab. Nestle developed a milk economy in as against the milk economy that was set up in Gujarat by Amul. While both have established themselves on the similar lines, the impact that they have had on consumer minds is totally different. Amul has a more Indian appeal than brand Nestle, which still carries its Swiss look and style. To get a fair look into what exactly I mean, I would like to bring in some facts and my observation here. Let me start with Nestle, because I think this brand has had a great distribution. Nestle to start with launched its Nestle Milkmaid and Nestle Everyday range. The Everyday milk powder which is popular even now among people all over is exclusively bought by consumers not as a whitener but as a baby food. I say the distribution is great because, I come from a rural part of India where even the newspapers were rarely available but these products were available to consumers even then. However, they were considered to be premium products and were purchased on the rare and special occasions. However, their milk products line did not expand much for over few years from then. During those days even the product launches were not many as we witness now. They also have a range of beverages and Nescafe classic is another most popular brand. Nescafe has become so synonymous for coffee here. Solely on the basis of the quality products and not a very Indian image of the brands, they have surely endured and have been quite popular. Nestle has great marketing strategies that maintains good distribution reaching out to the mass. However the number and variety of products and category ranges are limited here.

Amul launched its butter way back in 1945. However, it was perceived to be a premium product in India. Mostly because a majority of Indians preferred preparing fresh butter at home or buying from the local diary or milkman not many households were open to buy this products. Amul first became famous for its butter among the mass and slowly began to expand itself in other milk products category. It has now about 8 different categories. This organization has a very Indian feel to it and this is more emphasized by its positioning as the taste of India as well as its Indian products range like Malai paneer, Amul Lassee, Shrikhand and many more. It has a whole catalog to it. Amul also bags the image as savior of farmers, a milk revolution and this got only more popularity with a movie made on the organization. When we look at these two Industries, we know that Nestle has reached out to the masses by quietly maintaining its international image but with a great taste and quality. It has some of the most popular brands effortlessly. Whereas Amul has this desi brand image but the amount of the advertisement that happens is enormous I think. The various activities Amul has got into like sponsoring various programs, hosting many competitions and many more. It even has its own exclusive parlors! Amul has grown a lot bigger and international yet maintaining its exclusive image. But definitely this has bagged a special place in every kitchen in India. Q4. The City library in Amritsar has several private study rooms that are freely available to clients. To use a study room it must be booked in advance, either as a half or full day reservation. Library staff has reported that much of the time the study rooms are empty, despite a full booking sheet. Frame a research question and state the objectives of the study. Ans. : Answer all questions in Yes/No
1. The library is open for normal hours? _______ 2. The books arranged in library are in good manner? _______

3. Helpers are present in library? ________ 4. The library is open on Sundays as well? _______ 5. The studying atmosphere is quite good? ______ 6. The books present in library are good enough? _____ 7. The assets or premises of library are good enough? _____ Objectives of study: The objectives of study is to know the reason why people are not coming to library despite full booking of the study rooms and moreover the study is conducted to know regarding the views of the people towards what they are expecting.