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Management

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May' 07
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The Bharti - Wal-Mart Retail Joint Venture
-- Rika Sengupta, Rajiv Fernando

Body Shop Launched in India
-- Debapratim Purkayastha, Rajiv Fernando

MySpace Sued for Copyright Infringement
-- Hadiya Faheem, Rajiv Fernando

The case examines the business ethics and governance issues relating to the pretexting controversy that engulfed US-based HP during the second half of 2006. When the Board of Directors at HP found that highly confidential information, was being reported in detail in the press, an investigation was initiated. The investigation was carried out by a team constituted by Patricia Dunn, the then Chairperson of the Board. During the probe, it was found that one of the directors was responsible for the information leaks. The matter was reported to the Board, and one of the directors, Tom Perkins, resigned from the Board to express his displeasure about the way the investigation was carried out. He asked the HP Board to disclose the details of the investigation process.

Aldi: A Low-cost Retail Giant's Distinctive Business Practices
-- Shirisha Regani, S S George

Aldi was one of the pioneers of the hard discount style of retailing in Germany. The Aldi Group (which comprised of two companies—Aldi Nord and Aldi Sud), was known for its low prices and no-frills business model. The case describes the various elements of Aldi's business model, and how they allowed the company to adhere to its low price philosophy. It also talks about Aldi's international expansion, and discusses some of the changes Aldi had to adopt in its overseas markets. The case concludes with a discussion of Aldi's future prospects in light of the saturating German market and intensifying competition from Lidl, as well as the possible effect of the trend in the international retail sector of investing heavily in improving in-store experience on Aldi's no-frills philosophy.

Innovative Marketing Strategies of Lush Fresh Handmade Cosmetics
--Debapratim Purkayastha, Rajiv Fernando

This case is about the innovative marketing strategies and product development approach adopted by Lush Fresh Handmade Cosmetics (Lush), a UK-based producer and marketer of ethical beauty products. Lush was co-Founded by Mark Constantine (Constantine) in 1995. The company had a flat management structure with the directors, including Constantine himself, actively involved in the operations of the firm, right from new product development to personally training the employees. The company also did not have a traditional marketing department and relied more on unconventional products, wacky product names, in-store advertising, word-of-mouth advocacy, and public relations. Constantine was also one of the pioneers who championed the cause against animal testing in the cosmetics and beauty care industry.

The High Performance Entrepreneur : Golden Rules for Success in Today's World
--Author: Subroto Bagchi Reviewed by Rajiv Fernando

In The High Performance Entrepreneur, the author uses anecdotes and examples from his personal experience to guide entrepreneurs on issues they are likely to face from ideation to the IPO stage.

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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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