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Welcome to the Case Folio


March '09
Regular Features
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Articles

The Marks & Spencer - Reliance Retail Joint Venture

HCL's Acquisition of Axon

From Frivolous to Frugal : Recessionary Trend Forcing Changes in Consumer Behavior?

Blendtec's "Will It Blend?" : A Viral Marketing Campaign

Starbucks : Back to Basics?

-- Sachin Govind and S S George

Starbucks is a major specialty coffee retailer, with a presence in over 40 countries around the world. The financial crisis in the United States and the consequent global economic problems, together with rapid expansion in the number of its outlets created serious problems for the giant coffee retailer. With the economy showing signs of a recession, more and more customers started to cut down on consumption of expensive coffee. In addition, the rapid growth in the 2000s had diluted the `Starbucks Experience' and the company's customers were complaining of falling service quality levels. Moreover, cannibalization of sales as new stores were opened too close to existing outlets also became a serious issue for the company. The case discusses the possible reasons for the significant drop in traffic and profits at Starbucks in 2008 and the transformational initiatives that Howard Schultz, the founder CEO of the company, implemented to revive the Starbucks brand and bring back customers to its stores.

Maturing Business Intelligence Provision at Volvo IT

-- Stijn Viaene

Volvo IT established a team in 2001 to consolidate Business Intelligence (BI) efforts across the Volvo Group. By 2005, despite some established success, the BI team was in a difficult position. The team had put in place an enterprise-class technological capability and structured approach to BI solution provision. However, it had trouble keeping some of its most important customers happy as they were asking for more flexible solutions, shorter lead times and lower costs.

Nokia's Chinese Operations

-- Indu P and Debapratim Purkayastha

The case discusses the operations of Finland-based telecom major, Nokia, in China. Nokia entered China in the 1990s and initially supplied network equipment to Chinese manufacturers. Nokia entered into joint ventures with local companies, which helped it understand the local market better. By the end of the 1990s, China emerged as Nokia's second largest market after the USA, but Motorola continued to be the market leader in China. By the early 2000s, the Chinese companies were making inroads into the market and Nokia's sales dropped drastically. The main reasons for the reduction in sales were the limited range of handsets and absence of clamshell models from Nokia, and limited distribution facilities, due to which the phones did not reach the rural areas where the demand was growing.

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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