Thursday, February 28, 2019
AbstractNigerian banking exertion has change by reversal extremely ICT-based and is reaping the benefits of expert revolution as evidenced by its drill in most of its trading trading operations. The objective of this write up was to determine if the Nigerian banks pay off failed or succeeded in the acceptation and practice of ICT (see fudge 2.1). An evaluation of the stick withion and hire of ICT al-Qaidas from the periods in the midst of long time 2000 to 2008 indicated steady growth. It is pre centre of attenti unriv anyedd that as of now, the Nigerian banks whitethorn begin attained their ICT potentials in their operations, though with any(prenominal)(a) ch aloneenges. The story concludes that the word sense of ICT has influenced the content and quality of banking operations. This report card recommends that enthronization in information and dialogue engineering science should form an important comp adeptnt in the overall schema of banking operators to master effective operations.Keywords nurture, Communication, applied science, Banking & persistence.INTRODUCTIONInformation and Communication engineering (ICT) is the mechanization of processes, controls, and information production consumption computers, telecoms, softw be dodging and other gadget that ensure smooth and efficient running of activities. It is a term that largely transits the union of electronic applied science for the information needs of a business at all directs. ICT has surpassed the division of support attends or scarcely electronic entropy processing its fields of diligences are slightly global and unlimited. Its devices especially the profit and modern computer e chain weapons facilities have further streng whereforeed early modernizations like the teleph wizard and fax. early(a) ICT devices hold data science equipment, situationory automation hardware and go, telecomputing and teleconferences using real time and online dust (Adeoti , 2005).The application of information and communication technology concepts, techniques, policies and implementation st countgies to banking operate has take a subject of fundamental importance and electric shocks to all banks and indeed a prerequisite for local and global private-enterprise(a)ness. Information and Communication Technology (ICT) instantaneously affects how managers decide, how they plan and what products and redevelopments are offered in the banking industry. It has continued to change the means banks and their corporate relationships are organized valet de chambrewide and the variety of innovative devices functional to enhance the speed and quality of service legal transfer.Harold and Jeff (1995) contend that fiscal service providers should modify their conventional operating practices to remain feasible in the mid-nineties and the decades that follow. They claim that the most signifi hindquarterst shortcoming in the banking industry today is a wide spread failure on the spark off of aged(a) management in banks to grasp the importance of technology and incorporate it into their strategical plans accordingly. Considering ICT to ensure banks survival, Woherem (2000) claimed that sole(prenominal) banks that overhaul the whole of their payment and delivery systems and slang ICT to their operations are likely to survive and prosper in the sensitive millennium.He advices banks to re-examine their service and delivery systems in order to by rights position them at bottom the frame attain of the dictates of the dynamism of information and communication technology. The banking industry has witnessed tremendous changes linked with the developments in ICT over the years. Nigerian banks have undergone changes in their operations since the consolidation process of 2005, when some banks were forced to merge with others to go by Central Bank of Nigerias (CBN) recapitalisation fund necessary for operation. Until then, most of the b anks operated paper based systems at inception and latterlyr adjusted at the break of day of ICT revolution.In recent times, ICT, which basically involves the call of electronic gadgets especially computers for storing, analyzing and distri thoing data, is having a dramatic influence on almost all aspects of individual lives and that of the subject economy the banking orbit inclusive. The increasing physical exertion of ICT has allowed for integration of different scotch units in a spectacular way. This phenomenon is non only applicable to Nigeria only when other economies of the world, though the level of their recitation may differ. In Nigeria, ICT usage especially in the banking sector, has considerably change, til now though it may not have been as high as those observed for advanced countries (Adeoti, 2005 Adeyemi, 2006).The defecate of ICT in the banking sector became of interest to this study due to the significant role it plays in the economy. It helps in stimu lating economic growth by tell funds to economic agents that need them for productive activities. This function is very lively for each economy that intends to experience meaningful growth because it functions arrangements that bring borrowers and lenders of monetary resource together and more efficiently too than if they had to relate this instant with one another (Adam, 2005 Ojo, 2007).In essence, the banking sector acts as a dyad that connects lenders and investors in the economy. The bank reforms (especially the recapitalization that specifies a borderline capital base of 25 billion naira for commercialised banks), are pursued with a view to fashioning the sector realize its objectives in advancing the economy (CBN, 2006). It is expected that the daze of these reforms get out be enhanced with the use of ICT because it leave create some form of matched advantage and improve banking services through the true and efficiency in their transactions. In other words, it get out change the reputation of banks services in terms of quality which will culminate in greater service delivery and productivity.This is in tandem with the findings made by Adeoti (2005) that the use of information technology has the ability of improving the competitiveness of Nigerian manufacturing industries. In fact, ICT has had an collision on the Banking sedulousness as its emergence allows banks to support credit-scoring techniques to consumer credits, mortgages or credit cards. Hence, products that utilize to be highly dependent on the banks evaluation of its customers have now turn over more standardized. Other examples of ICT impact on the Banking Industry allow the gaind process efficiency, which can scale down costs in banks.This has also produced changes in the structure of bank income. As a emergence of increased competition that has lowered margins in change operations (the banks traditional business), banks have diversified their sources of income an d rely more and more on income from fees services rather than interest rate spreads. Fees charged for services involve typical banking activities like payment transactions, safe custody and account administration. info storage and retrieval is another wonderful innovation brought into the Banking Industry, where specialized software is take upd to create database to be manipulated by Database Management Software (DBMS).A single database created could be used for several purposes within the system in order to eliminate data redundancy. From the above discourse, this paper seeks to determine whether or not the adoption of ICT enhances the operations of Nigerian banks.To achieve this, the introductory part of this paper afterward defining what ICT is, distinctly established that to remain viable in the current age as financial concerns, banks must adopt ICT. In the succeeding sections, the paper will review relevant literary works and identify the types of ICT homes used in Ba nks the benefits and effects of ICT on banking industry will be discussed, after which an evaluation of its achievement or failure will be done then, the conclusion and recommendations will be made.LITERATURE go overThe Concept of ICT and a Perspective in Nigerian BanksTechnology can be referred to as the application of knowledge for the execution of a presumptuousness task. It entails skills and processes necessary for carrying out activities (works) in a given context, while ICT encompasses computer systems, telecommunication, networks, and multimedia applications (Frenzel, 1996). It came into use in the late 1980s replacing prior terms like electronic Data Processing (EDP), Management Information System (MIS), although the latter terms are still in use (Frenzel, 1996). ICT has transcended the role of support services or only electronic data processing its fields of applications are somewhat global and unlimited. Its devices especially the profit through the World Wide Web (ww w) and modern computer email facilities have further strengthened early innovations like the echo and fax.Other ICT devices include data recognition equipment, factory automation hardware and services, tele-computing and teleconferences using real time and online system (Adeoti, 2005). It is a concept that is having a scarce effect on almost entire aspects of the human endeavours. This connotes that it involves the application of principles to engage physical share in achieving an intended goal. The convergence of computer and telecommunication after slightly four decades of applying computers to routine data processing, mainly in information storage and retrieval, has created a bare-assed development where information has become the engine of growth around the world.This development has created catch-up opportunities for developing countries such as Nigeria to attain desired levels of development without necessarily reinventing the wheels of economic growth. This new(a) techn ology has brought remote-reaching revolution in societies, which has tremendously transformed most business (banking) scenes (Ovia, 2005). With reckon to the banks in Nigeria, the first established bank was in 1892 (then African Banking Corporation). However, on that point was no banking legislation until 1952 when three foreign banks (Bank of British West Africa, Barclays Bank, and British and French Bank) and two indigenous banks (National Bank of Nigeria and African Continental Bank) were established, with a total number of 40 separatees (Iganiga, 1998). As at 1988, the Nigerian banking system consisted of the CBN, 42 commercial banks and 24 merchant banks (Iganiga, 1998 Adam, 2005).From 1970, the banking sector grew significantly in terms of number and coverage as a way out of increase in economic activities. However, amongst 1970 and 1985, the growth of the sector was relatively decompress due to predominant government regulations but the period 1986-2000 witnessed a phe nomenal growth of the sector as a result of the financial deregulating policy, that is the Structural Adjustment Program-SAP of 1986 (Iganiga, 1998). This brought about the liberalization of bank licence lead to a quick change in the sector. Some of the banks were characterized by paper oriented methods, rather than technological based systems and this resulted to slow pace of their operations vis--vis their employees productivity cum command operation.The use of computers and other ICT gadgets in their operations were limited. This was one of the precedents adduced by Ojo (2007) as factors responsible for the Nigerian financial sector malaise. To mitigate the shocks experienced in the system, the Federal Government of Nigeria came up with the financial sector reforms through the CBN. The policy thrust on bank reforms encompasses the sum of the variations that occur in the direction of a comprehensive banking system.The bank reforms agenda, among others, specify a minimum capi tal base of 25 billion naira for the commercial banks that took effect in celestial latitude, 2005 (Diamond Bank, 2005 CBN, 2006). This has reduced the number of commercial banks in Nigeria from 89 to 25, which was done via the processes of mergers, acquisition and the stock market (CBN, 2006 Ige, 2007). The major aim was to repair Nigerian banks vibrant and resilient, clothed with efficiency and financial strength to put one across contingent shocks, thereby instilling public confidence as head as global relevance (Soludo, 2004).ICT and Nigerian Banking welkinThe revolution in ICT has made the banking sector changed from the traditional mode of operations to presumably divulge ways with technological innovation that improves efficiency. ICT can enhance efficiency via its use and in recent times banks have been encouraged by the rapid decline in the price of ICT gadgets. This has perhaps increased the bank level of ICT usage (Ovia, 2005).The increase top executive have also be traceable to business purlieu that became relatively flexible to accommodate new forms of technological change as a result of reforms in the country. Banking is becoming highly ICT-based and because of its inter-sectoral link, it appears to be reaping most of the benefits of revolution in technology, as can be seen by its application to almost all areas of its activities (Akinuli, 1999).It has coarseened the scope of banking practices and changed the nature of banking as well as the competitive environment in which they operate. A b driveway opening has been experienced around the world for banks and they are currently pickings due advantage of these innovations to provide improved customer services in the face of competition and faster services that enhance productivity (Akinuli, 1999 Ovia,2005). expert advancement facilitates payments and creates convenient alternatives to cash and cheque for making transactions. Such new practices have led to the development of a truly glo bal, seamless and meshwork enabled 24-hour business of banking.ICT revolution both in terms of innovation rate, bustling operation, and cost per unit (portraying reduction in average total and marginal costs) has made a good number of banks embrace the use of ICT infrastructure in their operations (Akinuli, 1999). The technological innovation that is being witnessed currently in the Nigerian banking sector is possible of impacting on the banks mode of transactions especially in their payment systems.The payment systems are made feasible by ICT gadgets such as automated Teller mould (ATM), electronic strain Transfer (EFT), Clearing House Automated Payments (CHAPs), Electronic Purse (E-PURSE), Automated Cheque Sorter (ACS) and Electronic and Transfer at Point of Sale (EFTPOS), which have made transactions easy and convenient. This phenomenon is capable of bringing about agile operations and enhanced productivity (Adeoti, 2005 Ovia, 2005).Though there may be little interruptions at times due to network failures, which may make customers inefficient to carry out transactions at that point in time. This little shortcoming is not in any way corresponding to the days when banking halls were characterized by long queues mainly as a result of delays in the traditional banking operations. Now banks can provide comprehensive services to their customers by making them approach their accounts via online services.These instruments have an edge over the traditional payment instruments because it is safer, more efficient, convenient and cost effective. Before the introduction of these ICT services in the banking industry, manual processing of documents were in use. The bankers were made to cope with this heavy task, and the process made business transactions minimal. Besides several feverish procedures, people had to contend with, banks customers were inevitably made to clear several hours in the congested banking halls in carrying out their transactions (Ovia, 20 05). The present situationThe ICT last in Nigerian economy can be said to be on the increase. Nigeria is the largest net subscriber in Africa with about 100,000 Internet users as at 2000, which was estimated to have grossly increased (Balancing Act, 2007). It has also been observed that Nigerias telecommunication density had remarkably increased by more than 2,550% from 0.35% in 1992 to 9.3% in 2004, thereby greatly exceeding the International Telephone federations (ITU) benchmark of 1% (Ndukwe, 2005). This phenomenon has helped banks keep certain information on-line(a) which reduces the cost of marketing their products.Being a competitive tool, it enhances the creation of customized services, reduces the cost of operation, and improves productivity as well as profitability. More interestingly, almost all the banks in Nigeria have internet and on-line real time banking facilities which has improved the scope of Nigerian banking. It has aided transfer of funds from one spatia l relation to another without any involvement of facial transactions thereby cut down the incidence of loss of funds to stealing and the likes. another(prenominal) recent one is the telephone banking technology that allows customers to have transactions on their accounts by occupational group a particular telephone number, through voice activation, and using a tone pad. All of these improve the comfort of banking transactions.THE TYPES OF ICT SUBSTRUCTURES USED IN BANKSOvia (2005) opined that ICT adoption will improves three critical domains which are efficiency, quality, and transparency in any organisation. Agboola (2001) discussed the dimensions in which automation in the banking industry manifest in Nigeria. They include Bankers Automated Clearing serve Automated Payment Systems, Automated lecture Channels.In the analysis done by Alawode and Kaka (2008) on ICT infrastructures used in Nigerian banks betwixt the periods of 2000 to 2008, found a proportionate increase in adopti on and use. The specific ICT infrastructural use within year 2000 to year 2008 include Internet feeler Internal Network SMS insomniac Substitution of postal Mail ICT Security Measures certificate and Automated Payment System. The tabular showing of the ICT structures and the analysis are presented below. This analysis and other recent literature will form the foothold for evaluation of ICT adoption success or otherwise, and informs its cellular inclusion in this seminar paper.TABLE 2.1SURVEY DATA OF SOME SELECTED BANKS IN NIGERIA AND THEIR ingestion IN SOME ICT INFRASTRUCTURESSerialnumbers ICT infrastructures Percentage of Nigeria Banks that use a particular ICT infrastructure within year2000 to year 2008. 2000 2002 2003 2005 2006 20081 Internet Access 27% 88% 91%2 Internal Network Wire based 68% 82% 92% Wireless 08% 19% 28%3 SMS Alert NIL 22% 98%4 Substitution of Postal mail 18% 38% 88%5 ICT Security measures 62% 81% 94%6 Authentication 33% 76% 85%7 Automated PaymentS ystem 1% 28% 87%Source Alawode and Kaka (2008)Internet Access An important indicator of the general uptake of Information and Communication Technology (ICT) in the Banking Industry relates to the use and availability of Internet. Internet access is a precondition for e-Business, as this is the main channel for e-banking. The general availability of Internet allows for the analysis of overall ICT-readiness in the Banking Industry. The Table shows that 91% of Banks studied in Nigeria have access to the internet within year 2006 and 2008, While 27% and 88% from year 2000 to 2002 and from year 2003 to 2005 respectively. The drastic change that occurred from 27% to 88% from year 2000 to 2002 and from year 2003 to 2005 respectively was as the result of ICT awareness competitive products introduced by some the so called new generation banks.Virtually all other banks also braced up to satisfy their customers and there was general improvement in the services and products of Banking Industry. Use of Internal Network The application of networks is a vital part of an effective ICT-enabled system, which is especially true in the case of banks with a branch network. Local Area Network (local area network) may also be seen as a basic indicator of the minimum infrastructure required to enable companies to conduct e-banking at a substantial level. Wire-based LAN is currently the dominating technology. The survey shows that 92% banks surveyed use wire-based LAN from year 2006 to 2008.The fact that LAN is a relatively low-tech and intimately attainable ICT solution, would to some extent explain the wide coverage of this technology from year 2000 to 2008. Wireless LAN is a relatively new technology in the Banking Industry, and is used to permit bank employees to access network resources from approximately any convenient location. The fact that, wireless LAN is relatively new technology accounts for its low percentage uptake in Banking Industry. Use of SMS bracing Instant notif ication of transactions made was another innovation brought by ICT through the use of smart phone in conjunction with the internet facility in the Banking Industry. Virtually all banks studied in Nigeria use SMS-Alert, except some of the Micro-finance Banks. It was an ICT infrastructure that preserve no patronage amidst year 2000 and 2002.Substitution of postal mail The Banking Industry is currently being renewed in many areas. One of these areas relate to the digitalization of one time paper-based processes. Electronic mail is increasingly being applied for especially non-legal equaliser like account statements, marketing and sales. More than 80% banks surveyed have substituted electronic mail with old postal mail within year 2006 to 2008. This outcome shows that, efficiency gains from electronic mail are yet to be reaped and indicates that the Industry is a bit fragmented in its uptake of electronic mail as means of communication. ICT security measures The security issue is o f special concern in the Banking Industry, as banking is highly based on trust from its customers.Hence, the take a chance of hackers, denial of service attacks, technological failures, breach of privacy of customer information, and opportunities for travesty created by the anonymity of the parties to electronic transactions all have to be managed. Depending upon its nature and scope, a breach in security can seriously damage public confidence in the stability of a financial institution or of a nations entire banking system. Hence, by introducing the appropriate security measures and putting security concerns at ease, the BI great power be able to attract the segments among consumers who previously were not inclined to use e-banking. Furthermore, it is also in the banks own interest to improve security, as digital fraud can be costly both in financial losses, and in terms of the damage it does to the brand of the bank in question.Authentication The common concern among users of e -banking is related to the authentication of users and data connections. The use of digital signatures is not as common as PIN codes or encryption, and reason is the fact that digital signature is relatively new technology. The research even shows that none of the studied banks uses digital signature as the form of authentication, but the up-take in other types of authentication is generally high, up to 85% within the year 2006 and year 2008.Automated Payment System Devices used in Automated Payment Systems include Automatic Teller Machine (ATM) and Electronic Funds Transfer. ATM still ranked higher in its spread than Electronic Funds Transfer, Low rate of spread of this technology might be due to cost, fear of fraudulent practices and lack of facilities necessary for their operation. just now generally speaking, the adoption of Automated Payment System increased dramatically. The table shows the increase from 28% to 87% within the range of 3-years.BENEFITS OF ICT ADOPTION ON BANKI NG INDUSTRYMany researchers have agreed on some benefits that pass to ICT adoption and use in the banking industry. These include among others Enhanced operational efficiency. The use of ICT in the banking industry enhances the operational efficiency of the banks (Madueme, 2009). For example, the use of SMS alert, an ICT infrastructure that recorded no patronage among Nigerian banks between year 2000 and 2002, has presently aided instant notification of transactions. Improved quality of service delivery. Many researchers (Ikechukwu, 2000 Madueme, 2009 Fenuga & Oladejo, 2010) endorse that the application of ICT to banking operations has undoubtedly enhances the quality of customer service delivery in the banks.The uses of ICT-based payment systems such as Automatic Teller Machine (ATM) and Electronic Funds Transfer have actually improved the service delivery of Nigerian banks to its customers. For example, a money transfer transaction that used to take me days to transact has been reduced to a matter of few minutes. For a case in point, last week, I sent money to my brother through UBA bank and before I got to the gate after the transaction, I got a call from him confirming that his account was credited through a message alert. Increase in customer comfort. This benefit derives from the one above.According to Fenuga and Oladejo (2010), the adoption and use of ICT in the banking industry has increased customers satisfaction due to improved quality of banking services. Referring to the above case of personal experience, it is authoritative that customer satisfaction has markedly increased as a result of adoption and application of ICT in Nigerian banks. Improved profit slaying. Another important benefit of the adoption and use of ICT in the banking industry has to do with improved profit margin.Many studies (Baba & Harker, 1997 Ikechukwu. 2000 Madueme, 2009 and Oladejo & Adereti, 2010) have shown significant and positive correlativity between ICT adoption a nd profitability of organisations. Increase in market shares. When ICT is successfully adopted and applied to banking operations, the overall performance of the banks is improved and this manifest in the corresponding increase in market shares, profitability and other indicators of performance (Oladejo & Adereti, 2010). Enhanced competitive advantage. Researches by Ikechukwu (2000) and Oladejo and Adereti, 2010 have lent credence to the fact that application of ICT to the operations of the banks has boosted their operational efficiency and brought about greater competitive advantage in the industry.EFFECTS OF ICT ON BANKING INDUSTRYAgboola (2001) studied the impact of computer automation on the banking services in Lagos and discovered that Electronic Banking has tremendously improved the services of some banks to their customers in Lagos. The study was only restricted to the commercial nerve centre of Nigeria and concentrated on only six banks. He made a comparative analysis betwee n the old and new generation banks and discovered variation in the rate of adoption of the automated devices. Aragba-Akpore (1998) wrote on the application of information technology in Nigerian banks and pointed out that ICT is becoming the backbone of banks services regeneration in Nigeria.He cited the Diamond Integrated Banking Services (DIBS) of Diamond Bank restrain and Electronic Smart Card Account (ESCA) of All States Bank expressage as efforts geared towards creating sophistication in the banking sector. Ovia (2000) discovered that banking in Nigeria has increasingly depended on the deployment of Information Communication Technology and that the ICT budget for banking is by far larger than that of any other industry in Nigeria. He contended that on-line(a) system has facilitated Internet banking in Nigeria as evidenced in some of them launching websites.He found also that banks now offer customers the tractability of operating an account in any branch irrespective of which branch the account is domiciled. Cashless transactions were made possible in our society of today. The moving company of the economy (Banking Industry) is now well positioned to meet-up with the new challenges from the costumers, competitors and even from the nations economy with right tool in their hand to reach inexhaustible point of success. The Industry is now growing on daily basis with respect to new innovations that are coming out in the world of technology.EvaluationThe banking business in Nigeria today can be assessed as being highly ICT based. The analysis of Alawode and Kaka (2008) ICT infrastructures used in some selected banks between year 2000 to year 2008 as earlier presented in table 2.1 clearly indicate the steady growth of ICT application in Nigerian Banks. Internet access usage, for example, rose from 27% between years 2000-2002 to 91% between years 2006-2008. SMS Alert that was nonexistent between the periods of 2000-2002 rose from nowhere to 98% between years 2006-2008. Similarly, Automated Payment System that was barely 1% between years 2000-2002 rose dramatically to 28% in years 2003-2005 and sky rocketed to 87% between years 2006-2008.The research, which provided the above analysis, is over 5 years old now. Considering the rate of growth reported in the analysis, it is unambiguous that most of the infrastructures may have reached their full potential. Drawing from above background, one could reasonably accept Akinulis (1999) viewpoint when he observed then that it appears Nigerian banks were reaping most of the benefits of revolution in technology, as can be seen by its application to almost all areas of its activities.Adeoti (2005), Ovia (2005) and Osabuohein (2008) in separate remarks corroborate the fact that the technological innovation witnessed in Nigerian banking sector is possible of impacting on the banks mode of operations especially in their payment systems. It is indeed unequivocal to state that ICT adoption in Nigerian banks has broadened the scope of banking practices and changed the nature of banking as well as the competitive environment in which they operate. Such new practices have led to the development of a truly global, seamless and Internet enabled 24-hour business of banking. In summary, the adoption of ICT in Nigerian banks can be said to be a success though not without some challenges.ChallengesThe automation of banking operations is really pose challenges to the Consumers, the banks themselves and Regulatory/Supervisory authorities in Nigeria. Among the issues concerned are Infrastructural deficiencies It is clear that the use of ICT in the banking industry require minimum level or basic infrastructure such as electricity, telecommunication and motorable roads. Yet all these remain great challenges even as they feature as manifestos in all political campaigns. Ineffectiveness of telecommunication service providers and epileptic append of electricity have often times cost people to spend days suffering to recover trapped cards in ATMs.For example, there was a day my friends card got trapped for only God knows the reason, but on a Saturday when the banks staff could not be accessed to recover neither the card nor alternatively withdraws money at UBA Aliade road branch. He had to wait until Monday morning to recover his card. Whatever his purpose for wanting(p) to access money must have been defeated. Consumer Awareness and capacity A major challenge of ICT banking to many illiterate and semi-literate population of the country who domiciliate in rural areas is lack of awareness of how the systems work and their inability to access the services which mostly exist in cities and high populated work areas or institutions.Access to ATM and GSM Telephones There are inadequate banking facilities to cover for the growing population of Nigerians who can access the services. Many households are unable to afford terminals and all accessories required for operating in tod ays banking system. The recent Federal governments 60 billion naira telephone project for 10 million farmers (Olatunji, 2013) is one exemplification that majority of Nigerians are too poor to afford a telephone, a necessary associate for accessing ICT banking services. Consumer Protection Another major challenge of adoption of ICT is the absence of statutory or regulatory provisions to protect the consumer of the products/services. Fraud So overmuch fraud has been reported within and outside banks due to ICT adoption.The high icon of the system to fraudsters, hackers and other criminally minded persons who could access, retrieve and utilize mystic information from the system if security measures are weak to checkmate unauthorized intrusion is another challenge to the authorities. Systems Operational Risks Bank IT rests on computers and telecommunications which could be susceptible to system failure, internal manipulations and inconsistent regulatory policies (Etim, 2000).Conclu sionConcerns about ICT role in attaining effectiveness, efficiency and productivity were raised in the late 1980s. Since then a large number of studies have emerged both at the industry and firm level that have substantially improved our judgement of the relationship between ICT and firm performance. This paper has clearly defined what ICT is and presented a review of relevant literature to aid understanding of the historical antecedents or reforms that necessitated its adoption in Nigerian banks by assessing the benefits and effects, and the journey so far.The paper further evaluated the success of ICT adoption as well as addresses the challenges it has pose to banks, consumers of services and supervising authorities. The paper concludes that the adoption of ICT has influenced the content and quality of banking operations positively. From all indications, ICT presents great potential for business process reengineering of Nigerian Banks. It is insistent for bank management to int ensify investment in ICT products to facilitate speed, convenience, and immaculate services, or otherwise lose out to their competitors.RecommendationThis paper recommends that investment in information and communication technology should form an important component in the overall strategy of banking operators to ensure effective performance.ReferencesAdam, J.A. (2005). Banking Sector Reforms The indemnity Challenges of Banks Consolidation in Nigeria. Selected Papers for 46th Annual Conference, Nigerian frugal Society, August 23-25. Adeoti, J.O (2005). Information Technology Investment in Nigerian Manufacturing Industry The Progress So Far. Selected Papers for the 2004 Annual Conference, Ibadan Nigerian Economic Society, 213-244. Adeyemi, K.S (2006). Banking Sector Consolidation in Nigeria Issues and Challenges. Union Digest, 9(3&4) June (http//www.unionbankng.com/adeyemi.pdf). Agboola, A. A. (2006). 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(2008). ICT andNigerian Banks Reforms compend of Anticipated Impacts in Selected Banks. Global Journal of Business Res earch, 2(2), 67-76. Ovia, J. (2000). From Banking Hall to E-Platform. Financial Standard, January 15. P. 6. Ovia, J. (2005), Enhancing the Efficiency of the Payment System in Nigeria. CBN Bullion, 29(1), 8-18.Soludo, C.C. (2004). Consolidating the Nigerian Banking Industry to wager the Development Challenges of the 21st Century. An Address Delivered to the Special Meeting of the Bankers Committee, Abuja, July 6. Woherem, E. W. (2000). Information Technology in the Nigerian Banking Industry. Ibadan Spectrum.
As I watched the hearings and read the Press Telegram, April 12, 2010 AP probe reveals n Toyota cases, evasion became tactic regarding the choppy acceleration eff with several models of Toyota vehicles I would generate to say it is shuddery to say the least. Testimony Included stories from victims of the paradox In one case, an entire family was killed. With such disastrous consequences and huge liabilities and ruining of a once coarse brand know for quality, it provides a platform to look at how companies, and leaders, squall ethics, leadership issues and crisis. When faced with crisis, leaders lease to make important decisions quickly.That involves analyze their direct teams, and in many cases several directs below to ticktack answers. Its not app arnt If CEO Toyota did this given the criticism they received for their slow response time to consumer complaints. Once a leader is engaged in addressing a critical issue, what should they do to make sure they serve adequat ely? hither ar a few ways leaders dirty dog contest with rapidly c suspension system circumstances 1 . Focus on a few key elements and build a plan. Often emotional tensions are so high that seepage of minor issues explodes upward as the or so important issues.A leader has to determine critical touch points that addressed a right cascade down to fix other issues. Its not the lowest hanging fruit argument, but a strategic view of the top 3-5 issues that need immediate attention. For a business this is usually shareholder and customer intercourse of whats happening, operational analysis of essential work processes, and key legal considerations/regulatory interests. Toyota executives were late to the game in some of these areas. This could have reduced the level of exposure and amount of crisis to handle (e. Notifying people of other models that had the fuss, etc). 2. Communicate constantly. Crisis instruction requires immediate updates as new information is available. To fac ilitate this exchange, networks need to be created that can share pertinent details to different parts of the makeup and to external interests. Sometimes creating internal e-information or discussion boards helps with this process and ensures that appropriate business units are talking to each other. In the hearings, CEO Toyota give glossa to he was not aware of key meetings addressing the implants 3 Roll tongue seacoast KS. Ten ten TLS Ideas arent ten best they are solutions meant to get certain actions in place. They require modification on-the-fly as the situation unfolds. These sign actions may prove to be failures or they do not glamour the full scope of the problem resulting in negative backlash. Toyota thought the problem was sourd with adjusting floor mats, then sticky brake pads, and now the problem appears to be in the software. While consumers were not pleased with these initial measures, Toyota has proceed to signage the problem and issue offer different solutio ns.Leaders often make the faulting that after pouring so much effort into initial solutions, they have to adhere to them no matter what. Toyota did this with the floor mat issue for a long time blaming driver error if this solution was not the fix. A confident leader provide accept imperfection in initial approaches and make sure the team is ready to change quickly and respond with new approaches. The leader has to stay calm and foc engrossd when this happens to avoid deterioration the crisis. 4. Recognize what is working. The bright spot at the end of the tunnel can be elusive in the early going of crisis management.Everyone is in a quagmire with moving forward so it becomes difficult to notice how solutions are taking root and reducing issues. Leaders who have created the right talk channels go out be able to flag commodity results and use those results to strengthen ongoing efforts. This facilitates morale and shows progress against the crisis mitigation plan. Toyota made the right move to halt new car production in January which deliver more potential accelerator problems from going to market. . Maintain a good pace. Leaders need to be mindful of the pressures coming from all directions to solve problems quickly and perfectly. If a strong plan is in place, backed up by the right communication channels, and a focused team, resolution activities will eventually balance out. This has nothing to do with perception or temperament damage control that can take much longer as Toyota is sure to experience. Pacing decisions around good solutions and re-working as needed provides a sense of ethics and crisis management. Reacting to everything all the time is chaotic and soonest delight a leader as professional and deserving of the higher position.Leadership must(prenominal)iness maintain honesty to their team and key stakeholders at all times. They must be ready to calm nerves for weeks or months depending on the issue and never waver from a methodologic al and reasoned response to crisis situations. but time will tell if Toyota is pacing their crisis management properly and what that will mean in order for them to regain global consumer confidence. In my opinion, by chance the leadership of Toyota can implement organizational change by utilizing en of the DO theories, specifically Linens basic change model of unfreezing, changing, and refreezing.This model could be used as a theoretical foundation upon which change guess with their organization could be built soundly. The key, of course, would be to see that human change, whether at the executive, individual or group level would be a labored emotional dynamic process that involved painful unlearning without loss of swelled head identity and difficult relearning as the company cognitively attempts to restructure its thoughts, perceptions, feelings, and attitudes.
Wednesday, February 27, 2019
The case describes how seven any(prenominal) eleven has successfully established an innovative dividing line model. Toshifumi Suzuki, CEO of seven-spot eleven lacquer (SEJ), draw heptad Eleven Stores as Stores where you dirty dog interpret a solution for any of your daily lifes problems. We always try to plan and design a chime in in much(prenominal) a way that our barge in neighbours, in particular, asshole nonplus show up whatever they read at any time they want SEJ, headquartered in lacquer, leads the world wide seven Eleven set up, which had 24,912 shop classs in 18 countries in March 2003.In 2003 ranking of retailers by securities industry value, SEJ was turning ane in japan. Since its establishment in 1974, SEJ has never experienced a f whole in income or profits. With 9,757 lay ins as of May, 2003, SEJ is the astronomicst CVS bowed stringed instrument in Japan. Its computer memorys feature the same staple designs hulky, mellowedly visible sign in gr een, red and orange, a gigantic shop class window, much brighter than average lightning and a spotless(prenominal)ly clean reposition. SEJ identifies their guest orientation, offering non only a rich assortment of increases scarce hail comfort to nodes, as the source of SEJs rise to the crystalize of the Japanese retail industry.Industry BackgroundThe Japanese Distri yetion framePrior to 1974Traditional Japanese retailing consists of a conservative, multi-tiered body that combines bountiful numbers of sm on the whole wholesalers and retailers into complex exclusive fireworks. These lucres be not found solely on economic talent tho in homogeneous manner on stung human races.The wholesale to retail level ratios (W/R) is measure of layers deep d own statistical dispersion establishment.W/R ratio19921998US0.98Japan2.3Although the ontogenesis of entropy technology in the industry has gradu wholey im experimentd the power of the scattering frame of rules, sma ll-to-medium-sized retailers owe their existence mainly to the multi-tiered and vertically commingled structure.retail Business EnvironmentThe Japanese retail sector is still dominated by small retailers. Firms with one to quaternary employees get under ones skin up to a greater extent or less 70% of the count number of stores. In these small shops, CVS still accounts for only 3.2% of all stores and only 5% of total salesBeca employment of Japans small land ara, most Japanese retail stores conduct as well little blank space to maintain a wide assortment of products in either the store or inventory. These small, local anaesthetic mom-and-pop stores typically lack somewhat(prenominal) managerial know-how and planning skills. In addition, given their limited size, they be very much unable to bear large inventory risks and thus lease to deposit on manufacturers and wholesalers to bear part of that burden.Legal perspectiveJapanese regimen enforced in 1974 the Large-sca le Retail Store (LRS) Law which regulate the task hours of larger outlets. Initially use to stores over 1,500 m2, it was later encompassing in 1979 to stores with an ara of over 500 m2. The law mandated that stores close by 7 P.M. each daylight and remained closed at least 30 shop days per year. Fueled by heavy pressure from abroad, the deregulation trend ca role the LRS law to be changed in 1990 and practically abolished in 2001. firearm operating its large stores under the LRS law, Ito- Yokado, a pargonnt beau monde of SEJ, launched a saucy retail telephone line based on small regional stores, which can effectively co-exist with large stores. As a result, CVS shackles prove that small stores can compete a accumulatest larger retailers by improving the efficiency and productivity of their franchise and continual striving to meet guest ask.Because of the tautness of the store network, CVS chains argon not only mystifys to sell products, notwithstanding are alike beco ming an important part of the social base of operations.Seven-Eleven JapanIto-Yokado, a parent company of SEJ, was founded by Masatoshi Ito in 1964 as a 66-square-foot family turn store in Tokyo. After starting a new chain of super stores offering a range of food and clothing products, he expanded his business into former(a) distribution areas such as restaurants, discussion section, discount and dodge stores. By 2002, the Ito- Yokado group was one of the largest retail groups in Japan with 5,574 meg ($41.6 billion) in sales and 114,600 employees. Toshifumi Suzuki negotiated tellly with Southland, then possessor of Seven-Eleven, to capture the convenience store concept to Japan. Japanese consumers were generally to a greater extent than sensitive to product and good look, much fickle and less price-sensitive. thence products had to be fresh, and the turnover rate very gritty. To meet such node requirements within the constraint of limited ledge and repositing capacit y, it was necessary to count on nodes crave by the time of purchase, the store location and the weather. Providing the client with well-targeted, secernate products 24-hours a day, 7-days-a week was critical. As of 2003, SEJ is the largest convenience store chain with 2,213 billion ($17.5 billion) revenue and 5,061 employees. Its grocery store value of $21,721 gazillion and consolidated net income of 82,825 million ($690 million) are the highest in the whole of Japans retail industry. formationSEJ practice of continuous item check off and well-organized sales talk system, and the heavy use of information technology (IT). The basic mission of an SEJ store is to hand over solutions for all the problems of everyday life. apiece store offers a novelty of high- tincture products and attend tos that are required daily or on an emergency basis to get up life easier and more convenient.The two main reasons for the failure of living retailers. They ignored 1)the importance of convenience to the customer and 2) the quality of the products and the aid.SEJ developed some key fruit principles to define a quality convenience store. 1. Reduction of broken opportunity A missed opportunity to sell an item because it is out of stock is one of the most serious problems in retail business in terms of disappointing customers as well as wanting(p) the actual profit.2. Effective Item Control and Well-Planned Product Supply oversight The American practice of keeping large inventories of a wide variety of products could not be applied in convenience stores in Japan where shelf and storage space are limited and maintaining a large inventory is prohibitive. SEJ pursued a scheme of bringing products in high demand with a rapid turnover rate and eliminating dead or slow-moving products by item-by-item analysis. The well-organized analysis and frequent replacement contributes to SEJs high product preparation efficiency.3. Commitment to Customer Satisfaction with certain Product Development and Friendly ServiceSEJ not only sells manufacturers products but excessively researches customers potence requires. SEJ uses this research to provide original products at sound prices (such as a luncheon boxes and prepared foods)MerchandisingThe store space available for a Seven-Eleven franchisee is, on average, only 110 m2. The items kept in stock and on the shelf are precisely selected for the targeted customers and product quality is kept high. Product turnover is high, and goods are always new and food fresh. SEJ discovered that customer loyalty was driven more by particular items than by item categories. To meet the demand and achieve such tight item-by item control, SEJ implemented the POS (Point of Sale) system in 1982, whereby storeowners could identify customer trends and levy product differentiation. SEJ introduced its POS systems to collect sales data used to improve change and the item-by-item control process. For instance, the cash register would not openuntil the manipulator pushed the account button indicating the gender and estimated age of the customer. This information from the POS system was used for consumer trend analysis.Store internet ExpansionSEJ considers its market dominating strategy of high- niggardness, clustered store openings to be the key to efficiency and stability. The advantages of the market ascendency strategy areImproved brand awarenessIncreased customer visits to the storesBoosted distribution efficiencyEnhanced productivity of franchisee-support swear outsImproved denote effectivenessFranchise StrategyApproximately 60% of SEJ stores were modified from erst objet dart(a) family owned stores (e.g., liquor or rice stores). The relationship among franchiser and franchisee is one of reciprocal obligations. The franchisee is an independent business which gives SEJ royalties and a long commitment, and concentrates on the tasks of change and effectively managing inventory. The royalt y that the franchisee pays to the franchiser is 43% of its gross profit. In exchange for their long-term commitment and royalties, SEJ provides franchisees with service from field representatives called Operation Field Counselors (OFC). for each one of about(predicate) 1,300 OFCs supervises between seven or eight stores, providing (i) advice on store exploit and establishing and (ii) information on the portfolio of available items and on sales methods. This person-to-person contact with store managers is a key element of the SEJ franchise system. Each OFC visits each store at least twice a week and spends at least two hours providing advice and information. Such a close relationship not only motivates franchisees but alike supports company-wide brand image and promotional strategies.Outsourcing PolicySEJ is known for its outsourcing policy and ability to manage provider relationships. The rationalized distribution system crafted by SEJ created conflict within the traditional wh olesale system. everyplace time, however, SEJssystem has proved highly reliable and efficient, covering everything from tender procurement to product deliveries. The coaction between SEJ and the business partners includes shared information systems and know-how about operations management as well as quality control in the food manufacturers factories and pitching messages.By 2002, the company had make a network of 223 distribution centres and 195 factories dedicated to fast food production, all of them created and operated by wholesalers, suppliers and forward agents.Information outlines StrategyDaily, Seven-Eleven stores serve a total of 9.5 million customers, process five million order transactions and send out 35 million sales transactions to the information systems centre where sales data is collected, integrated and analysed. The decisions have to be based on well-analysed hypothesis, order and validation. Information technology (IT) for SEJ is merely a method to suppor t the cycle. SEJ prefers to source most of its information systems management to external service providers due(p) to the pelt along at which the information technology market moves. This strategy allows the information systems department of SEJ to focus on developing a systems vision that fits with the business strategy, while the rest of the information systems management is outsourced. The department has evolved into a more strategic organization that links needs from stores with top management and proposes innovative system plans. SEJ regularly explores opportunities to gain first mover advantage by exhausting out state-of-the-art technologies the first POS system in Japan in 1982, the first major use of Integrated Service Digital Network (ISDN) in 1991, etc.Operation InfrastructureTotal Information SystemsSEJ has proceed to develop total information systems. In June 1999, the fifth generation total information system, in which SEJ invested 60 billion ($500 million), was re leased in collaboration with 14 companies including NRI, NEC, Toshiba TEC, etc.High efficiency, maintainability and reliability of the total network system The system connects 70,000 computers in stores, at headquarters and at supplier sites through satellite telecommunications, exclusive lines, ISDN and mobile networks via the most appropriate telecommunication technology. The junto of ISDN and satellite telecommunications realizes 45x faster speeds at 35x better woo practiceance. Terminals are unceasingly monitored and software and configuration can be updated remotely. The most critical systems such as online ordination and accounting systems are backed up at physically separated locations in Yokohama and Osaka. And in earthquake-prone Japan, satellite telecommunication provides an unembellished layer of safety. The system, now shared by 10,000 stores, is considered highly reliable due to the crisis management planning and high service levels.The store information system wh ich encourages all store staff to participate in ordering SEJ provides stores with multimedia information such as pictures, video, audio, text and numerical data, which is used by all employees in Seven-Eleven stores.The system course of study shared with business partners SEJ provides its business partnersvendors, electrical distributors and manufactureswith a common infrastructure consisting of 1,800 terminals at 1,100 locations. The applications on the platform transform depending on the partners business raw clobber ordering system, inventory management, production management, automated sorting system, for example. The broad system infrastructure facilitates collaboration among SEJ allies by improving the efficiency of delivery through the sharing of order, sales and inventory information.And finally, sophisticated analysis system which snuff outs splanchnic decision-making .Electronic Commerce BusinessSEJ categorizes its electronic commerce (EC) business into iv major g roups 1) financial services, 2) profits obtain site, 3) public and regionalservices, and 4) in-store quick-witted copy machines.Financial Services (settlement, finance, and card service) Launched in 1987, Seven-Eleven hasdeveloped the payment sufferance service whichprovides customers with a convenient means to paytheir bills 24 hours a day, 365 days a year. Affiliatedcompanies number about 1,500 and the types ofpayment are mainly utilities electricity, telephone,water, rent, and mail orders. This business has beensuccessful with 144 million yearly transactions witha total value of 1.15 zillion (about $12.8 billion)and a 20% annual growth rate.Internet Shopping post 7dream.com, a subsidiary of SEJ, provides the internet shopping site by utilizing SEJs existing operating infrastructure in its EC activities. SEJ also ties into other internet sites and provides payment acceptance and pick-up service at the retail stores. Goods purchased via the Internet are picked up at stores 24-hours a day or delivered to customers homes, ski lift the value of Seven-Eleven stores and enhancing convenience for customers.Public, civil and regional services SEJs meals-on wheels service, named Seven Meal Service, offers prepared meals and cooking ingredients to regional customers. Order can be made via the Internet. SEJ plans to expand its public services at stores via its EC platform so that customers can obtain civil services. In-store intelligent copy machines utile copy machines at Seven-Eleven stores are connected the Internet and enable customers to cross event tickets and documents created by customers at home as well as to pay for pre-ordered airline tickets.With the capability to attract 1,000 customers per day per store, SEJ is pursuing synergism between the existing retail and EC business units to encourage potential Internet users to visit Seven-Eleven stores and become new customers. SEJ also provides its EC platform service for EC partners with functions s uch as authentication, database, settlement, and distribution.Temperature-Separated Combined Distribution SystemSince 1976, SEJ has been developing a streamlined distribution system to efficiently integrate product supplies. The company established the Combined actors line System, whereby the same potpourri of products coming from different suppliers can be centralized into 223 Combined Delivery Centres (CDCs). The combined distribution system allows products from different suppliers to be loaded on the same transports for delivery to Seven-Eleven stores. Combined distribution consolidates product shipment from manufacturers to stores at similar optimum temperatures. In 22 years, SEJ has reduced the average number of vehicles visiting each store from 70 a day in 1974 to ten a day in 1998. Delivery routes and time are also well organized to maintain high efficiency.CompetitorsSEJ is the largest CVS chain in Japan in terms of the number of stores, sales, and net income followed by Lawson, C&S, Familymart, and Ministop. These top-five companies dominate the market with closely 90% market share. All four competitors operate franchise businesses with store networks expanding all over Japan. Competitors are more and more investing in EC business to compete and establish agency in a new area. In 1997, Lawson began implementing multimedia terminals in stores to gain first mover advantage. Lawson also tries to differentiate itself in the Internet shopping site named Lawson by launching new services such net coupons, which was rare in Japan in 1999.Future VisionThe company strives to achieve the maxim the retail business should always keep up with change of customer demands with three principles.1. Responsiveness to changing customer needs and continuous improvement of customer services2. Manufacturing retailer3. The combination of demand chain and show chain management with the common platform.Case Questions1. A convenience store chain attempts to be responsive and provide customerswhat they need, when they need it, where they need it. What are some different ways that a convenience store come forth chain can be responsive? What are some risks in each case?As In this increasingly competitive world, the whole concept of convenience stores from the existing concept of retail outlets have emerged to improve competitive advantage of businesses by enhancing customer service and by providing him with superior quality of products and experience. However, attaining this competitive advantage comes with added speak tos and risks. As responsiveness towards a customers demands increase, a convenience store chain gets exposed to greater uncertainty and risks- the risk of not having seasonable provision of essential goods, system breakdowns etc. A convenience store may deal in both perishable food items akin processed fast foods and non-perishable items( life of more than 1 month) like glacial foods, magazines, beverages, and other consumer items l ike soaps, detergents etc.It is critical for any convenience store to have a tightly linked supply chain system for perishable items that need to be supplied to the final stores on daily basis. This distribution system ought to be flexible and highly responsive to alter delivery schedules depending on customer demands. The following are some ways that shall make convenience store supply chains operating on market dominance strategies more responsive- Local capacity The convenience store chains can provide local cooking capacity that is, live counters at the stores and assemble foods on demand. The Inventory could be stored as raw material under controlled conditions at the stores and be supplied by the distributors at regular intervals. This would eliminate the need to supply fresh and fast foods from the to the outlets thrice a day thus bringing down the transport make up of the entire distribution system and would add certainty to the production and distribution schedules. This strategy of selling fresh foods to customers would also enhance customer confidence in the brand.This is seen at the U.S. fast food restaurant franchise Subway where dinner and lunch sandwiches are assembled on demand. The main risk with this approach is that capacity is decentralized, guide to poorer utilization. High level of integration- One way of insuring more responsiveness is by further decentralizing the entire system. This can be attained by dividing each region further into regularises and having production plants in each zone nearer to each convenience stores. This would increase the set up cost for the parent company but in the long stick out but would also inhance the merge of information and service among the stores, suppliers and distributors thus increasing customer responsiveness and satisfaction.Local inventory Responsiveness to customer demands can also be attained by having inventory available at the store at all generation. This allows for the centralisation of cooking capacity. But the main injustice of this way is not delivering fresh foods to customers thus increasing customer dissatisfaction and need for limited storage space. Rapid replenishment Another approach is to set up rapid replenishment and supply the stores what they need and when they need it. This allows for centralization of cooking capacity, low levels of inventory, but increases the cost of replenishment and receiving.2. Seven-Elevens supply chain strategy in Japan can be described as attempting to micro-match supply and demand victimisation rapid replenishment.What are some risks associated with this choice? The main risk for convenience stores to adopt a supply chain system that works on rapid replenishment strategy is the potentially high cost of transferral and receiving at stores. The suppliers and factories are centrally located but the stores are scattered all across the city. So the companys effort to supply fresh foods multiple times a day to all the sto res increases the transportation costs. This one aspect can be taken care of by probably decentralizing the self-confidence to produce fresh foods at convenience stores itself. Also, the fact that goods get drop off multiple times a day reduces the store efficiency and increases customer dissatisfactions due to reduced services and frequent disruptions.This tends to fade away the customers experience at the store. Sudden breakdown of the information system or the transportation system connecting the stores to distribution centre and suppliers would also bring the functioning of the entire system to a halt leading to customer inconvenience and the resulting loss in sales. Thus convenience stores that attempt to micro-match supply and demand using rapid replenishment must take extra precautions to ensure timely delivery of goods, proper functioning of the information and transportation system, and customers convenience3. What has Seven-Eleven done in its choice of set location, i nventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan?Seven-Eleven Japan has chosen to operate a highly responsive operation and has chosen a supply chain design that supports this strategy. Their facility location choices are to saturate an area with stores, thereby making it easy for customers to shop and their own delivery trucks to move from store to store to replenish inventory. Seven-Elevens inventory system is run on an information system that transmits directly to the supplier and distribution centre goods are produced using a pull system to replace what has been sold during that delivery period. The transportation system is flexible to maximize responsiveness while also achieving efficiency. All choices made by Seven-Eleven are unified to set out its transportation and receiving costs. For example, its area dominance strategy of opening at least 50-60 stores in an area helps with marketi ng but also refuses the cost of replenishment.All manufacturing facilities are centralized to get the maximum make of capacity aggregation and also start out the inbound transportation cost from the manufacturer to the distribution centre (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also cast downs the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.4. Seven-Eleven does not allow direct store delivery in Japan but has all products flow through its dis tribution centre. What benefit does Seven-Eleven derive from this policy? When is direct store delivery more appropriate?Direct store delivery (DSD) would lower the utilization of the outbound trucks from the Seven-Eleven DC. It would also increase the receiving costs at the stores because of the change magnitude deliveries. Thus, Seven-Eleven forces all suppliers to come in through the DC. DSD is most appropriate when stores are large and nearly-full truck load quantities are coming from a supplier to a store. This was the case, for example, in large U.S. Home Depot stores. For smaller stores it is almost always beneficial to have an average aggregation point to lower the cost of freight. In fact, Home Depot itself is setting up these intermediate facilities for its new stores that are often smaller. In case of seven eleven, the benefit of delivery through its own distribution centre is total control of the system, aggregation of demand and minimal disruption at the retail outlet s. If several(prenominal) suppliers tried to make two or three deliveries every day, it would take away from the store managers ability to provide customer service.Each of these suppliers would likely prefer their own way of doing things, their own inventory system, truck size, etc., which would make things more difficult for the Seven-Eleven system. The demand and production data would have to be shared rather than residing on Seven-Elevens system from birthplace to grave. For items that cannot be prepared quickly, pull production may not provide the responsiveness that Seven-Eleven desires. In this case, the DC concept allows pooling of inventory which increases their overall service level while minimizing total system inventory of those items. Direct store delivery might be more appropriate if the items being delivered do not need bulk broken at a DC, have special handling requirements (lottery tickets, newspapers, or alcoholic beverages), or the supplier has a system that is co nsonant with Seven-Elevens (perhaps a regular bread run that has an information system that integrates with Seven-Elevens).5. What do you think about the 7dream concept for Seven-Eleven in Japan? From a supply chain perspective, is it likely to be more successful in Japan or the United States? Why?7dream makes whizz given that Japanese customers are happy to receive their shipments at the local convenience store. From a logistics perspective, online deliveries can piggy back on Seven-Elevens existing distributionnetwork in Japan. Deliveries from the online supplier can be brought to the DC where they are sorted along with other deliveries destined for a store. This should increase the utilization of outbound transportation allowing Seven-Eleven to offer a lower cost alternative to having a package carrier deliver the product at home. The primary negatives are that 7dream will use up storage space and require the store to be able to retrieve particularized packages for customers. O ne can argue that the concept may be more successful in Japan given the existing distribution network of Seven-Eleven and the frequency of visits by customers. Online delivery is able to link with the existing network.The high visit frequency ensures that packages are not occupying valuable store shelf space for a long time. Also, the frequent visits ensure that the marginal cost to the customer of picking up at Japanese Seven-Eleven is small. The 7dream concept allows e-commerce sites to use Seven-Eleven stores as drop-off and collection points for Japanese e-commerce customers. It has been super successful a recent survey revealed that 92 per cent of the customers of one e-commerce company preferred to have their items shipped this way. It seems likely that this concept would work only for high density urban areas It is being established in congested, less-safe urban areas for a service like package delivery. Suburban customers in the US would likely find it incredibly inconveni ent and avoid it unless home delivery was not mathematical and the alternative was to pick up a package (for example, one that must be signed for) at the local carriers office. This is less likely to be the case in the United States.6. Seven-Eleven is attempting to duplicate the supply chain structure that has succeeded in Japan in the United States with the presentment of CDCs. What are the pros and cons of this approach? Keep in mind that stores are also replenished by wholesalers and DSD by manufacturers.The supply chain structure for the US market can be close, but it can never be just now as it is in Japan, and will probably not operate as smoothly as in Japan. Some of this is attributable to the culture and the incarnate culture. Regardless of how like-minded supply chain partners claim to be, it would be extremely difficult to duplicate the collective spirit thatpermeates Seven-Eleven Japan. The disadvantages of this system is that Seven-Eleven in the U.S. would probably have to run two system depending on whether the area could be treated as a dense urban location or a suburban or rural outpost. The cost of running the Seven-Eleven Japan system in middle-America would be prohibitive. The U.S. consumer in that region has too umpteen alternatives that have 24 hour operations and are within a short drive.The difficulty of duplicating the Japan supply chain structure in the United States follows primarily from the much lower density of U.S. Seven-Eleven stores. This is compounded by the fact that Seven-Eleven stores are getting both direct store deliveries as well as wholesaler deliveries to its stores. Setting up its own DCs does not allow Seven-Eleven to get the same level of transportation aggregation as it gets in Japan. Its own distribution system would help more if all wholesaler deliveries and direct store deliveries were stopped and routed through the DC. Even then, having its own distribution system would add much less value than in Japan giv en the lower density of stores and larger distance between stores. Perhaps a hybrid system can be applied in select markets to test the systems efficacy in the U.S.7. The United States has food service distributors that also replenish convenience stores. What are the pros and cons to having a distributor replenish convenience stores versus a company like Seven-Eleven managing its own distribution function?The advantage of someone else replenishing stores is primarily cost less transportation, material handling, and labour costs for your own system. Depending on how supply and reordering operations are designed, it might be possible for the distributors to perform the aggregation/demand smoothing function with minimal intervention by the case-by-case Seven-Eleven franchise. One can contend that a distributor brings much more value to the table in the United States relative to Japan. Given the lower density of stores, a distributor is able to aggregate deliveries across many a(preno minal) competing stores.This allows a distributor to reach levels of aggregation that cannot be achieved by a single chain such as Seven-Eleven. The disadvantage of the outsourced replenishment service is an overall loss of control, an increasednumber of deliveries to each store, and the difficulty of integrating information flows across disparate systems. Also, Seven-Eleven is unable to exploit having a large number of stores. In fact, it may be argued that going through the distributor has Seven-Eleven subsidize deliveries to competing smaller chains that may also be using the same distributor
American strike In the exposure American Beauty there is a list of interpersonal conflicts. Lester and Carolyn Burnham atomic number 18 a evidently ordinary couple in an anonymous suburban neighborhood, whose spousal and lives be slowly unraveling. They some(prenominal) have become so distant save remain together to keep up appearances. This relationship shows all the factors that Daniel Dana considers being a conflict. Two people are independent they each lease something from the other, some(prenominal) parties blame the other or find fault with them for causing the problem, one or more of the parties is angry or emotionally upset, the parties behaviors are affecting their relationship with each other and/or their relationships with others. (Dana, 2000) In the movie there are many conflicts simply the interpersonal conflict that stands come in is that between Lester and Carolyn. The conflict between Lester and Carolyn is hard to ignore. They have stopped communicating effectively to one another. Lester is a middle aged man, whom sees no gladness in his look anymore.Carolyn is a middle aged woman, whom only shows her satisfaction, but it is a mask to make it seem that she is happy. Lester, at first, seems to have a hands-off communication style, compared to Carolyns aggressive communication style. In the yarn from Lester in the beginning of the film he seems to be tired of his life and how it is going. They live in a big white house with a red door and a white picket fence reinforcement the American dream. Unfortunately it is anything but. They have a daughter Jane who Lester believes he has failed. unmatchable night, Lester and Carolyn go to one of her work functions.Almost immediately they go their own slipway at the function. Carolyn is being entertained by the King of real estate, drinking. objet dart Lester has found himself forthside with the new neighbor boy Ricky Fitts, green goddess the extracurricular drug marijuana. When they go home and are in bed, their problems come to fruition. At this flower the blame game comes into the picture with much negativity. They fight fundament and forth sarcastically, saying hurtful things, until Carolyn jumps up out of bed and bursts out This isnt a marriage. because Lester finally speaks up and tells her what he has been feeling for years.One factor is the lack of sex between them. Also, he states that he has been her puppet for years since she received her realtors license, and finally that he has been extremely unhappy. past he continues saying that the only reason she is mad and saying anything is because he is finally fighting back. His dramatic and angry speech makes Carolyn silent. At this point in the film, I am more aware that they havent had effective communication to resolve their conflicts, for many years now. This situation escalated from their beginning cause of both of them becoming withdrawn, and not solvent their conflicts. When conflict erupts, em otions are involved, and the relationship can be threatened if the conflict is not determined amicably. (Sole, 2011) I think what started their downfall, years ago, is that they avoided conflict. This can be destructive in any relationship and/or marriage. If you dont have the skills of resolving conflict you run the risk of ruining your marriage, separate friendships, and shatter your family. Since both parties did not obtain the skills necessary to resolve their conflicts, it resulted in Carolyn stepping out of their marriage to have an affair with her real-estate rival, Buddy Kane the King, of real-estate.Also, resulting in Lester acting out, quitting his job, smoking marijuana, buying a 1970 Pontiac Firebird, and working out to impress a 17 year old girl what some may call a mid-life crisis. Amazingly enough, this could have all been resolved, as long as they both are willing with positive emotions during their conflicts. Research has shown that interjecting positive emotions, along with prejudicial emotions, during discussions result in happier marriages.I think that is Lester and Carolyn would have used some staple elements like humor, light-hearted fun, or some playfulness during their conversations, their marriage could have remained happy. Then if they could know and understand one anothers communication style, they would be better at resolving conflicts between them. Lester started out having a passive communication style, and then it quickly moved to a passive-aggressive communication style. I believed this happened because he was fed up with how his life was going and started to display resentment.With nix feelings, this indirectly sabotaged his life. If Carolyn held an assertive communication style, rather than an aggressive communication style, I believe they would have been able to eventually resolve their conflicts. All in all, if they had effective interpersonal communication, they would have continued to go down the path, to be a happily m arried couple. References Sole, K. ,Making Connections Understanding Interpersonal Communication,(2011),BridgePoint Education Inc. Retrieved From https//content. ashford. edu/books
Tuesday, February 26, 2019
What would a support be without sunshine or moonlight, without the sound of the wind rushing through the trees, the smell of crisp dusk air, or without the feel of dewy grass brushing our feet? Our environment gives us a source of peace, happiness and relaxation. But what about a life filled with ringing cell phones, angry bosses, tight deadlines and traffic jams? animated with these aggravations causes us stress, anger and chaos, but what argon the benefits? Oh, but of course How could I forget about money People will go to every lengths for prosperity, even as far as destroying our precious environment. Shinichi Hoshi demonstrates this mania in his short story He-y, Come on Ou-t.Upon the discovery of the infinite hole, we are first introduced to mans willingness to sacrifice the Earths well- beingness. A concessionaire claims the hole with a profitable plot in bear in mind and launches a vigorous campaign. Weve got a fabulously deep hole Scientists place its at least five tho usand meters deep undefiled for the disposal of such things as waste from nuclear reactors (154), he chanted. Since its not environmentally safe to dispose of nuclear waste higher up ground, it must be perfectly harmless to put it in ground, secure? Id hoped that the villagers would object to this ridiculous arrangement, and they did. They balked at the idea until it was explained that at that place would be absolutely no above-ground contamination for several thousand historic period and that they would share in the profits.Into the bargain, a magnificent lane was built from the urban center to the village (154). I am sadly disappointed in you, villagers. You are all in the mindset of Oh, it wont affect us for awhile, plus were getting money and a new road What could be wrong with that? Has it not occurred to you that even though you are benefiting from this proposal, that it office be causing harm elsewhere, in serious areas such as the environment? Of course not As human beings we dislike sentiment about the eventual consequences (155) and are extremely ambitious, therefore being a great deal too absent-minded with our thoughts of success and growth.Our society has become so preoccupied with visions of wealth and expansion that weve failed to notice the state of our weakening environment. We are concentrating only on producing one thing after another (155), no payoffthe price the Earth is forced to pay. I have a impregnable time to believe that such an intelligent species could be so awful ignorant about such a matter. Although some are cognisant of the way we are wrecking havoc against our planet, so little being done to protect our earth. We all need to realize that all of our egoistical and inconsiderate deeds that we are pressing upon our planet will be back to haunt us. We are sitting in the drivers seat, chattering away on our cell phones, too engrossed to space the danger. In the blink of an eye we see the impending collision, but i ts too late. We are all so absorbed with dollar signs that we undersurfacet appreciate Mother Earths true value. The man, however, was gazing in idle reverie at the citys skyline emergence ever more beautiful, and he failed to notice (155).
CONSUMER PREFERENCE AND satisfaction TOWARDS several(a) CELLPHONE SERVICE PROVIDES CHAPTER-I INTRODUCTION CONSUMER A consumer is an unmarried who purchase or has the capacity to purchase goods and work offered for sale by foodstuff federal agencying institutions in order to replete person-to-person or household learns,wants or desires. gibe to a statement made by Mahatma Gandhi, consumer refers to the following, A consumer isthe nigh definitive visitor on our premises. He is not dependent on us. We be dependent on him. He is not an awaysider to our byplay.He is part of it. We atomic number 18 not doing him a favour by serving him. He is doing us a favour by giving us an opport social unity to do so. Soconsumerislikethebloodofour moving inand as well asa satisfed node is a word of mouth advertisement of a produce / work. The consumer is the oneness who pays to consume the goods and operate produced. As such(prenominal), consumers play a vital division in the econ omic transcription of a nation. In the absence of effective consumer occupy, producers would lack one of the key motivations to produce to sell to consumers.Typic in ally, whenbusiness mint and economists talk ofconsumers, they are talking to the highest degreethe person as consumer, an sleep withcommodity item with littleindividuality let on than that expressed in the closing to buy or not to buy. However, in that location is a dis stupefy in martplaceingto individualize the concept. Instead of gene military rank broaddemographic profilesandpsycho-graphic profilesof commercialize segments, foodstuffers pauperism started to deal in personalized selling,permission merchandising, andmass customization. there is change magnitude backlash from the public over use of the label consumer rather than node, with me very(prenominal) finding it offensive and derogatory. Consumer choiceis a theory ofmicroeconomicsthat relates preferencesfor inhalation goodsand serve to cons umption expenditures and ultimately to consumer demand curls. The link between personal preferences, consumption, and the demand curveis one of the closely closely studied dealings in economics. Consumer choice theory is a bureau of analyzing how consumers may accomplishequilibrium between preferences and expenditures by maximizingutilityas payoff to consumer budget constraints.Preferences are the desires by each individual for the consumption of goods and aid that translate into choices mingyd on income or wealthfor purchases of goods and services to be combined with the consumers clip to intend consumption activities. Consumption is separated from production, logi rallyy, because dickens opposite consumers are involved. In the low gear case consumption is by the primary individual in the second case, a producer cleverness ca-ca something that he would not consume himself. t peachherfore, different motivations and abilities are involved.Themodels that rush up consum er theory are apply torepresentprospectively observable demand patterns for an individual buyer on thehypothesisof constrained optimization. Prominent variables used to explain the rate at which the good is purchased (demanded) are the price per unit of that good, prices of related goods, and wealth of the consumer. The fundamental theorem of demand states that the rate of consumption falls as the price of the good rises. This is cal take thesubstitution effect.Clearly if one does not fool enough money to pay the price then they clearnot buy all of that item. As prices rise, consumers leave substitute away from higher priced goods and services, choosing less pricey alternatives. Subsequently, as the wealth of the individual rises, demand increases, shifting the demand curve higher at all rates of consumption. This is called theincome effect. As wealth rises, consumers will substitute away from less personifyly inferior goods and services, choosing higher priced alternatives. CONSUMER SATISFACTIONEvery gay being is a consumer of different produces. If at that place is no consumer, in that respectisnobusiness. Therefore,consumer enjoymentis very important to every business person. According to Philip Kotler consumer triumph is delimit on, personal feeling of pleasure resulting from comparing a products pursued consummation in relation to his /her expectations. Consumer attitude measurementments are taken on either potential buries orexisting lymph glands buries in orderto identify their characteristics. Why should the competent market engineer conduct consumer research?Consumers surverys give the gate provide the tec with a wealth of information, important of the marketing funchion. Detailed information regarding the guest in a market will provide thebasic program for all marketing decisions. merchandise decision maker call for descriptive information about the total potential unit and dollar gross sales in each segment. Perhaps the well-n igh important one is that a seller need to be sensible of the relevant objective and needof consumer andhow their objectivesmight better reserved by the products.Customer gratification, a precondition frequently used inmarketing, is a measure of how products and services supplied by a community meet or surpass node expectation. Customer expiation is defined as the progeny of customers, or percentage of total customers, whose account experience with a firm, its products, or its services (ratings) haps specified satisfaction goals. In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses.It is seen as a key performance indicator within business and is oft part of a equilibrise scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of bus iness strategy. in spite of appearance organizations, customer satisfaction ratings can fill powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. . . These metrics quantify an important dynamic. When a give away has loyal customers, it gains electropositive word-of-mouth marketing, which is both free and highly effective. Therefore, it is necessity for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction. In researching satisfaction, firms loosely ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor place satisfaction.When customers have high expectations and the reality falls short, they will be spoil and will likely rate their experience as less than satisfying. For this reason, a lux ury resort, for example, might receive a lower satisfaction rating than a budget motel even though its facilities and service would be deemed super in absolute experimental conditions. The importance of customer satisfaction diminishes when a firm has change magnitudebargaining power. For example, carrel phoneplan providers, such as ATTandVerizon, participate in an industry that is anoligopoly , where only a hardly a(prenominal) suppliers of a certain product or service exist.As such, some cell phone plan contracts have a lot offine brand with provisions that they would never get away if there were, say, a degree Celsius cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a reform contract offer. There is a square body of empirical literary productions that establishes the benefits of customer satisfaction for firms. PURPOSE Customer satisfaction provides a starring(p) indicator of co nsumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is two fold. 1. Within organizations, the collection, abridgment and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the link upions goods and services. 2. Although sales or market share can demonstrate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firms customers will make make headway purchases in the future.Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly completed at the extremes. On a five-point scale, individuals who rate their satisfaction level as 5 are likely to become return customers and might even evangelize for the firm. (A second important metric related to satisfaction is willingness to inspire. This metric is defined as The percentage of surveyed customers who indicate that they would pep up a brand to friends. When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing gain. ) Individuals who rate their satisfaction level as 1, by contrast, are unlikely to return. Further, they can scathe the firm by making negative comments about it to prospective customers. Willingness to recommend is a key metric relating to customer satisfaction. MARKET The term market is derived from Latin Word Mercatus, which mode totrade that is purchasing and change of goods.It also means merchandise truthic place of business. According to Pyle, Market includes both place and theatrical role in whichbuyers and sellers or in free disputation with one some otherwise. Amarketis one of some varieties ofsystems,institutions,procedures,socia l relationsandinfrastructures whereby parties engage in counterchange. While parties may exchange goods and services bybarter, most markets rely on sellers offering their goods or services (including labor) in exchange formoneyfrom buyers. It can be said that a market is the transition by which the prices of goods and services are established.For a market to be competitive, there must be more than a single buyer or seller. It has been suggested that two raft may trade, but it takes at least iii persons to have a market, so that there is competition on at least one of its two sides. However,competitivemarkets, as understood in pro forma economic theory, rely on much larger numbers of both buyers and sellers. A market with single seller and multiple buyers is amonopoly. A market with a single buyer and multiple sellers is amonopsony. These are the extremes of progressive competition.MARKETING marketing includes all the impacts involved in the exchange butt on of transferringt he bullheadednessandownershipofgoodsorservicesfrom theproducer to the ultimate consumers. sellingis the process of chatthe cherish of a product or service tocustomers. Marketing might sometimes be interpreted as the art of selling products, but selling is only a small fraction of marketing. As the term Marketing may replace Advertising it is the overall strategy and function of promoting a product or service to the customer.The American Marketing Association defines marketing as the activity ,set of institutions,and processes for creating, communication, delivering,and exchanging offerings that have value for customers,clients,partners,and order of magnitude at large. From a societal point of view, marketing is the link between a societys material requirements and its economicpatterns of response. Marketing satisfies these of necessity and wants through exchange processes and building long term relationships. The process of communicating the value of a product or service throug h office to customers.Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that benefit the organization and itsshareholders. Marketing is the science of choosingtarget marketsthrough market analysis andmarket segmentation, as well as understanding consumer buy sort and providing superior customer value. MARKETING FORMULA A)The foremost step is business aims at profit. B)For profit making he can sell the products. C)For selling the product he should create customers.D)Forcreating thecustomers,customers takeofpreferencestobeidentified and satisfied. E). To satisfy the customers sweet product to be produced. Marketing is trying to learn, * Who buy the products or services? * How do they buy? * When do they buy? * Where do they buy? * Why do they buy? * How often they buy? Itisotherwisecalledunderstandandpredicthumanactionsintheir buy role. A marke ter is act as consumers season them purchasing any goods/services, and try to market that product to an ultimate consumer. So, marketingis starts with consumer and ends with consumer. So, todays market is called on consumer market.It can be defined on,All the individuals and households who buy goods and services for personal consumption. SKILLS OF MARKETERS Marketers have 4 main skill sets that they bring to an endeavour 1)Opportunity Identification Marketing begins before there is a product to sell. galore(postnominal) people cogitate marketing is just selling whatever comes out of the manufacturingplant. Its the job of marketing to decide WHAT comes out of the manufacturingplant in the first place. Before a business can make money there must be opportunities for money to be made and its marketings job to define what those opportunities are.Marketers analyze markets, market gaps, trends, products,competition, and distribution channels to comeup with opportunities to make money. 2)Competitive strategy/positioning Markets consist of groups of competitorscompeting for a customers business. The job ofmarketing is to decide how to create a defensible sustainable competitive advantage against competitors. Marketers conceive strategies, tactics, and business models to make it hard if not impossible for competition to take away customers from their business. 3)Demand generation/management Its the job of marketing to create and sustain demand for a companys products.Marketers manage demand for a companys products by influencing the probability and frequency of their customers purchase behavior. 4)Sales The ultimate goal of marketing is to make money for a business. In most companys sales is a different discip take in and department from marketing. But in order forsales people to have any long term success in a company they must be led by marketing. The better job a company does of identifying opportunities, creating a first derivative sustainable competitive adva ntage, and generating demand for their products the easier it will be for sales people to make sales.MARKET SHARE OF PUBLIC AND PRIVATE perseverance The fixed song and wide awake segments serve the basic needs of local calls, long outstrip callsand the international calls, with the provision of broadband services in the fixed line segment and GPRS in the peregrine theatre. Traditional resounds have been replaced by the codeless and the wireless instruments. Mobile phone providers have also come up with GPRS-enabled multimedia system messaging, Internet surfing, and mobile-commerce. The much-awaited 3G mobile technology is soon going to enter the Indian telecommunication market. TheGSM,CDMA,WLLserviceprovidersareallupgradingthemtoprovide3Gmobileservices.Alongwith improvement in telecom services, there is also an improvement in manufacturing. In thebeginning, there were only the Siemens handsets in India but now a livelong series of newhandsets, such as Nokias latest N-seri es, Sony Ericssons W-series, Motorolas PDA phones,etc. have come up. Touch screen and advanced technological handsets are gaining popularity. Radio services have also been incorporated in the mobile handsets, along with other applications like high storage memory, multimedia applications, multimedia games, MP3 Players, video generators,Cameras, etc.The value added services provided by the mobile service operators contribute more than 10% of the total revenue. THE GLOBAL CELLULAR MOBILE INDUSTRY Global telecom sector Earnings visibility Earnings yieldisbeing dictatedbyimprovingpricingconditions, stabilizingoperating trends, aggressive cost cutting initiatives, a positive regulatory environment, strong wireless growth, andnew marketopportunities. This hastranslated intogreater visibilityofforward earnings as certify by young increased analyst upgrades within the sector. Merger synergiesGiven the substantial amount of excess capital available in the sector and in private equity we ex pect to see extra merger and encyclopedism activity, albeit at a slower pace than freshly witnessed. GlobaltelecomMA dealsoverthepasttwo course of studyshavereflectedmarket expansion but have also had a positive effect on the buyers balance sheets. Partnering companies havebegunrealizing theirsynergies through cost reductions andeconomies ofscale. In the US, the largest three companies now account for over 70% of the sector market cap this compares to 34% in 1990.Trends in bundled services are also paving the way foradditional MAactivity. Sector integrating willfurtherincreasethe importanceof stockselection. METHODS TO CUSTOMER SATISFACTION Companies use the following methods to measurecustomer satisfaction. 1 ) Complaints and suggestion system Companies obtaining complaints through theircustomer service centres, and further suggestions were given by customers to satisfy theirdesires. 2) Customer satisfaction surveys Responsivecompaniesobtainadirectmeasureofcustomersatisfactionb yperiodic surveys.They send questionnaires to random prototype of their customers to find out how they feelaboutvariousaspects ofthe companys performance and alsosolicit viewson their competitors performance. It is useful to measure the customers willingness to recommend the company and brand to other persons. 3 )Lost Customer Analysis Companies should contact customers who have stopped buying or who have switched to another supplier to learn why this happened. 4 )Consumer Behavior VsConsumption BehaviorConsumer behavior refers to the manner in which an individual reaches decision related to the selection, purchases and use of goods and services. Walters and Paul says that,consumer behavior is the process where by the individuals decides what, when, how and from whom to purchase goods services. Consumerbehaviorrelatestoanindividualperson(Microbehavior)whereasconsumption behavior relates to and to the mass or aggregate of individuals. (Macrobehaviour) consumers behavior asa interpr etfocusesonthedecisionprocessofthe individual consumer or consuming unit such as thefamily.In contrast the consumption behavior as a champaign is to do with the explanation of thebehavior of the aggregate of consumers or the consuming unit. Consumer is a pivot,around which the finished system of marketing revolves. The scan of buyer behavior is one of the most important keys to successful mark. 1. 2. IMPORTANCE OF CONSUMER SATISFACTION The needs to satisfy customer for success in any commercial enterprise is very obvious. The income of all commercial enterprise is derived from thepayments received for the products and services supplied to its customers.Ifthere is no customer there is no income and there is no business. Then the coreactivity of any company is to attract and retain customers. It is therefore no surprise that Peter Drucker the illustrious management Guru, has said to satisfy the customers is the mission and purpose of every business. Satisfaction of customer is ess ential for retention of customers and for sustained sales of the products and services of the company to customers. Thisestablishesthe needa for and the importance of customer satisfaction. Thesatisfactionofconsumersisdifferentfromonto another.Became,each consumer has the different behaviour in their life. So, the marketer satisfy the consumer, he must very well know the behaviour of consumer. 1. 4. CONSUMER BEHAVIOUR Thetermconsumerbehaviourmaybedefinedasthebehaviour that consumer displays in searching for purchasing, using, evaluating, producing,services and ideas which they expect will satisfy their needs. In other words, It is a study of physiological, social, physical, behaviours of all potential customeras they become aware of evaluation, purchase and consumption and ell otherabout products and services 1. 5. OBJECTIVES OF THE STUDY * To study the evaluation of cell phones with particular reference to India. * To ascertain the attributer which influenced the customers in selec ting aparticular cell phone services provider. * To studythe consumers satisfaction towards different cellphone serviceproviders. * To appraise the problems faced by the cell phone users in services. * To offer valuable suggestions to improve the services of cell phones in each companies. INRODUCTION TO TELECOM INDUSTRY The Indian Telecommunications network with 110. 1 meg connections is the fifth largest in the mankind and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the realism and represents unique opportunities for U. S. companies in the stagnant global scenario. The total proofreader base, which has full-grown by 40% in 2005,is expected to reach 250 million in 2007. According to Broadband Policy 2004, presidential term of India aims at 9 million broadband connections and 18 million internet connections by2007. The wireless subscriber base has jumped from 33. 69 million in 2004 to 62. 57 million in FY2004- 2005.In the ratiocination 3 categorys, two out of every three new phone subscribers were wirelesssubscribers. Consequently, wirelessnow accounts for54. 6% ofthe totaltelephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected tobypass 2. 5 million new subscribers per month by 2007. The wireless technologies currently in use are Global remains for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country. . 6. take up OF THE STUDY Exchange of information becomes the necessity of life to a rough-cut man. In the modern world an individual tends to happen anything to everything right from the place where he/she stands. Even while riding vehicle he / she wants communicate within afraction of second at quick zip with clearvoice,without any disturbance. Like line crossing, out of order, etc. most of which lack in the connection given by the department of tele-communictions. carrellphones emerges as a boon quench such a thirst, the by providing facilities,which a common man cannot imagine.Though cell phone industry has its originin the recent past and the growth has been excellent sidereal day by day many new competitors enter the market with new attractive schemes,provide additional facilities, add newfeatures to existing ones, reduce the charges her incoming and outgoing calls, insert varieties of handsets,modelsahealthycompetitionthatbenefitsthesubscribers. Henceinthis context, it is important to study the functioning of cellular phone services and the utilization of their services by the telephonesation. 1. 8. STATEMENT OF PROBLEMIn our country the growth of service marketing specially mobile phone industry is still in its infancy stage, as compared to the industrially advanced countries. It is for the fact that the economy of our country has been in the develop ing stage. There are various mobile phones services providers in ourcountry and they are playing an essential role in fulfilling the needs of the customers. Now-a-days, the customers are more dynamic. Their taste, needs andpreference can the changing as per current scenario. Hence the development ofcellular industry mainly depends on the customer satisfaction.However the following questions may arise regarding customer satisfaction. CHAPTER II refresh OF LITERATURE India is the worlds fastest growing industry in the world in terms of number of wireless connections after China, with 811. 59 million mobile phone subscribers. According to the world telecommunications industry, India will have 1. 200 billion mobile subscribers by 2013. Furthermore, projections by several conduct global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2013.In 1850 experimental electric telegraph started for first time in India b etweenCalcutta (Kolkata) and rhombus Harbor (southern suburbs of Kolkata, on the banks of the Hooghly River). In 1851, it was opened for the use of the British eastmost India Company. Subsequently construction of telegraph started through out India. A separate department was opened to the public in 1854. Dr. William OShaughnessy, who pioneered the telegraph and telephone in India, belonged to the Public Works Department, and worked towards the development of telecom.Calcutta or the-then Kolkata was chosen as it was the capital of British India. In early1881, Oriental Telephone Company check of England opened telephone exchanges at Calcutta (Kolkata), Bombay (Mumbai), Madras (Chennai) and Ahmedabad. On the 28th January 1882 the first pro forma telephone service was established with a total of 93 subscribers. From the year 1902 India drastically changes from cable telegraph to wireless telegraph, radio telegraph, radio telephone, clay telephone dialing. Trunk dialing used in Indi a for more than a decade, were system allowed subscribers to dial calls with operator assistance. afterward moved to digital microwave, optical fiber, satellite earth station. During British period all major cities and towns in India were linked with telephones. In the year 1975 Department of Telecom ( dosage) was responsible for telecom services in replete(p) country after separation from Indian Post Telecommunication. Decade after Mahanagar Telephone Nigam Limited (MTNL) was chipped out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment.In1995 TRAI (Telecom Regulatory Authority of India) was setup. This reduced the interference of Government in deciding tariffs and policy making. The Government of India corporatized the operations wing of DoT in 2000 and renamed Department of Telecom as Bharat Sanchar Nigam Limited (BSNL). In put up 10 years many private operators especially foreign investor s successfully entered the high potential Indian telecom market. globally acclaimed operators like Telenor, NTT Docomo, Vodafone, Sistema, SingTel, Maxis, Etisalat invested in India mobile operators. Wireless CommunicationPager go Pager communication successful launched in India in the year 1995. Pagers were looked upon as devices that offered the much necessitate mobility in communication, especially for businesses. Motorola was a major player with nearly 80 per cent of the market share. The other companies included Mobilink, Pagelink, BPL, Usha Martin telecom and Easy call. Pagers were generally worn on the belt or carried in the pocket. The business attain in 1998 with the subscriber base reaching nearly 2 million. However, the number dropped to less than 500,000 in 2002.The pager companies in India were soon struggling to keep abreast their business. While 2-way pagers could have buffered the fall, the pager companies were not in a position to upgrade their infrastructure to improve the ailing market. The Indian Paging Services Association was unable to support the industry. Pager companies in India also offered their services in regional languages also. However, the end had begun already. By 2002, Motorola stops making or servicing pagers. When mobile phones were commercially launched in India, the pager had many advantages to boast.Pagers were smaller, had a longer battery life and were considerably cheaper. However, the mobile phones got better with time and continuously upgraded themselves. Mobile Communication First mobile telephone service on non-commercial basis started in India on 48th Independence Day at countrys capital Delhi. The first cellular call was made in India on July 31st, 1995 overModi Telstras MobileNet GSM network of Kolkata. Later mobile telephone services are divided into multiple zones cognise as circles. Competition has caused prices to drop and calls across India are one of the cheapest in the world.Most of operator follows GSM mobile system operate under 900MHz bandwidth few recent players started operating under 1800MHz bandwidth. CDMA operators operate under 800Mhz band, they are first to adduce EVDO establish high stimulate wireless data services via USB dongle. In spite of this huge growth Indian telecom sector is hit by severe spectrum crunch, corruption by India Govt. officials and financial troubles. In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by Government possess MTNL and BSNL. Later from November 2010 private operators started to launch their services.Broadband communication subsequently US, Japan, India stands in third largest Internet users of which 40% of Internet used via mobile phones. India ranks one of the lowest provider of broadband speed as compared countries such as Japan, India and Norway. Minimum broadband speed of 256kbit/s but speed above 2Mbits is still in a nascent stage. Year 2007 had been tell as Year of Broadband in Indi a. Telcos based on ADSL/VDSL in India generally have speeds up to 24Mbit max while those based on newer Optical Fiber technology offer up to 100Mbits in some plans Fiber-optic communication (FTTx).Broadband growth has been plagued by many problems. Complicated tariff structure, metered billing, High charges for right of way, Lack of domestic content, non execution of instrument of Local-loop unbundling have all resulted in hindrance to the growth of broadband. Many experts think future of broadband is on the hands of wireless factor. BWA auction winners are expected to roll out LTE and WiMAX in India in 2012. Next extension Network (NGN) Next Generation Networks, multiple find networks can connect customers to a core network based on IP technology. These access