Fairever Fruit Fairness Cream

Fairever Fruit Fairness Cream Date: April 18th, 2008 (Submitted in partial fulfillment of the II semester course Requirements of MBA 2008-2010 batch) Submitted by Group NO:10 K. ASWINI NAIR (CBBUP2MBA08043) NANDAGOPAL N (CBBUP2MBA08059) SINDHUJA DURGA R (CBBUP2MBA08099) SOORYA SOMAN (CBBUP2MBA08101) SOUMIA S (CBBUP2MBA08103) SREEDEVI AJITKUMAR (CBBUP2MBA08105) 1 CERTIFICATE This is to certify that we, the students of Amrita School of Business, are submitting the following document as part of the partial fulfillment of the Marketing Management course requirements of second semester MBA for the batch of 2008-10.

The report stands genuine to the best of our knowledge and a tool to be used, only with the objective of academic reference. Any deviation from the above stated, is liable to be termed unethical malpractice and subject to forfeiture of the acknowledgement of the efforts of the students responsible. The following work has been carried on under the able guidance of our Professor Dr. Deepak Gupta. Date: April 18th, 2008 Students, Amrita School of Business Attested by (Signature) Prof. Dr. Deepak Gupta Professor (Marketing) Amrita School of Business 2

ACK OWLEDGME T We have a great pleasure in thanking Prof. Deepak Gupta for giving us an opportunity to do a project on Market Research. We would also thank our mentor, Mr. Karthikeyan for his sustained and adequate guidance. We would like to thank staff members for their support. We thank them for their readiness to cooperate and helping us avail the material resources without any obstacles. We would also take this opportunity to express our immense gratitude towards all the customers, shop owners and other public who helped us in carrying out our survey.

We would thank all our colleagues for their warm and sincere support, in helping us complete the case analysis. Above all, we would like to thank the Almighty without whose grace our endeavor might not have become possible. Students, Amrita School of Business 3 Executive summary One of the issues that surround the concept of beauty in India is the color of the skin. There are many people who believe that fair skinned people are more beautiful than dark skinned people. In India, fair skin is associated with beauty and class.

We have seen in the olden times that every woman used to take special care of their skin and hair using traditional methods. Nowadays people face more challenges in life with technology, population, pollution and various other kinds. Hence they took less care of their skin. Later a variety of creams were introduced in the market which claimed to give protection to the skin and maintain its fairness. We started our research design with exploratory research to understand the research problem. Discussions and focus group interview were conducted to get an insight into the problem.

This exploratory research was followed by descriptive research methodologies where respondents were asked to fill questionnaires to get an idea about their perception, opinion, awareness and brand loyalty. Our research is done on Fairever Fruit Fairness Cream. The research is done to gain an insight on how to improve the sales of the cream in the market, and to see how well the product has penetrated in the market. After formulating the management decision problem the marketing research problem was found out this was then divided into specific components.

The research questions were framed which was further broken down into specific questions to derive at the questionnaire. Data was collected and analyzed for each component. Our survey leads to some important results. A major part of the respondents were not fairness cream users. They had a strong opinion that most of the fairness cream advertisements have a concept which is against the corporate social responsibility. The remaining few fairness cream users preferred Fair and Lovely above other products available in the market.

In spite of our limitations we have tried to conduct a fair analysis of the current situation regarding Fairever Fruit Fairness Cream and its competitors in the skin care products market. 4 TABLE OF CO TE TS 1. 0 I TRODUCTIO TO THE PROJECT …………………………………………………………. 8 1. 1 BACKGROU D OTE- Literature review………………………………………………… 9 1. 2 Limitations of the research……………………………………………………………………….. 10 1. Structure of the report……………………………………………………………………………… 11 2. 0 Research design …………………………………………………………………………………………… 13 2. 1 Management Decision Problem: ……………………………………………………………….. 13 2. 2 Market Research Problem: ………………………………………………………………………. 13 2. 3 APPROACH TO THE PROBLEM…………………………………………………………… 4 2. 4 RESEARCH QUESTIO S A D HYPOTHESIS………………………………………. 15 2. 5 EXPLORATORY RESEARCH ……………………………………………………………….. 17 2. 5. 1 Secondary data analysis……………………………………………………………………… 17 2. 5. 2 Focus-group ………………………………………………………………………………………. 17 2. 5. 3 Depth Interview …………………………………………………………………………………. 18 2. . 4 Projective Technique ……………………………………………………………………………. 18 Completion technique ………………………………………………………………………………… 18 Association technique…………………………………………………………………………………. 18 2. 6 DESCRIPTIVE RESEARCH ……………………………………………………………….. 19 2. 7 PRETEST A D QUESTIO AIRE DESIG ………………………………………….. 19 2. 7. Learning from the pretest…………………………………………………………………… 20 2. 8 SAMPLI G PROCESS……………………………………………………………………………. 20 2. 9 DATA COLLECTIO & CLEA I G……………………………………………………… 21 2. 10 DATA A ALYSIS PLA ………………………………………………………………………. 22 3. 0 EXPLORATORY RESEARCH RESULTS ………………………………………………….. 24 3. 1 I TRODUCTIO ……………………………………………………………………………………. 4 3. 3 Major findings of the depth interview……………………………………………………….. 25 3. 4 Influence on research design …………………………………………………………………….. 25 4. 0 DESCRIPTIVE RESEARCH RESULT ……………………………………………………….. 27 4. 1 Introduction …………………………………………………………………………………………….. 27 4. 2 Description of the descriptive research process …………………………………………. 27 5 5. OBSERVATIO AL A ALYSIS………………………………………………………………….. 30 5. 1 Introduction …………………………………………………………………………………………….. 30 6. 0 Analysis of Data…………………………………………………………………………………………… 34 7. 0 Conclusion and discussions ………………………………………………………………………….. 77 Appendix 1. 0 …………………………………………………………………………………………………. 79 Appendix 2. Questionnaire …………………………………………………………………………… 82 Appendix 3. 0 ………………………………………………………………………………………………….. 91 References ………………………………………………………………………………………………………… 92 6 SECTION 1 INTRODUCTION TO PROJECT 7 1. 0 I TRODUCTIO TO THE PROJECT Fairness creams have become a vital product for the Indian FMCG companies in increasing their overall sales due to the importance given by Indian consumers towards fairness.

As India is a country known for its diversity different consumers from different parts of the country prefer different brands. Hence, our project aims to identify the brand preference of consumers towards fairness creams. This project also examines the factors influencing consumers in preferring various brands of fairness creams. The research helped us to gain valuable insights into consumer’s behavior, attitude, feelings etc. The market size for fairness cream in India was estimated to be Rs. 800 crore. The market growth rate ranges between 15 – 20% on a year-to-year basis.

The leading players in the market includes HUL’s ‘Fair & Lovely’ with 76 percent of the market share and Cavin Kare’s ‘Fairever’ with 15 percent of the market share. Other important players like Godrej’s ‘Fairglow’, Emami’s ‘Fair and Handsome’, Vicco and Himalaya share the rest of the market share. It has been estimated that males constitute 20 percent of the total sales for fairness creams in India. The existing players are focusing upon improving the quality and ingredients and new players are also invading the Indian market.

Our project is based on the research done on the following points: The market for the new brand Fairever Fruit Fairness Cream Competition that Fairever faces from Fair and Lovely and other brands The general perception about fairness creams The ways through which people think they can improve their complexion The perception people carry about fruits in relation to fairness. 8 1. 1 BACKGROU D OTE- Literature review . In an Indian context fairness creams are of great importance because the perception about fairness In Indian society is different from others. In a typical Indian household a girl child‘s skin color influences her future.

The more fair a girl is the more her chance of getting married to a good family. So here we can see a lot of untapped market. This space Is being grabbed by the major players in the industry. In 1998, CavinKare launched Fairever fairness cream. The company took care to stick to the herbal platform that its consumers had come to associate with all CavinKare products. Fairever seemed to be an instant success. Fairever’s market share jumped from 1. 23% in 1998 to 8. 13% in 1999. The brand was expected to grow from Rs 160 million 1999 to Rs 560 million in 2000.

Its success attracted many players, including Godrej (FairGlow) and Paras Chemicals (Freshia). Existing products like Emami Naturally Fair and F were promoted with renewed vigor. MAJOR PLAYERS I THE FAIR ESS PRODUCTS MARKET Company HLL Emami CavinKare Paras Godrej Ponds Lakme Brand Fair & Lovely Naturally Fair Fairever Freshia FairGlow Ponds fairness cream, Ponds cold cream Lakme Sunscreen lotion, Lakme Sunscreen cream Product Category Cream, Soap Cream Cream Cream Soap, Cream Cream, Lotion Cream, Lotion In December 1999, Godrej launched FairGlow fairness soap and created a new product category.

The soap claimed to remove blemishes to give the user a smooth and glowing complexion. FairGlow was positioned as a twin advantage soap – a clean fresh bath and the added benefit of fairness. In early 2000, Godrej Soaps launched Nikhar, which was 9 based on the ancient Indian formula of milk, besan and turmeric. Though Nikhar and FairGlow were positioned differently – Nikhar targeted fairness and FairGlow claimed to protect skin naturally – the objective of both was the same, get more of a stagnating market. In April 2000, HLL introduced Lux Skincare soap, positioned on the sunscreen platform.

Priced at Rs. 14 for a 75gm cake, it was able to garner only a 0. 5% share by 2000 end. In comparison, the mother brand Lux had a share of 14%. Retailers claimed that sales for the Lux variant were poor as it promised only protection from ultraviolet rays. While this soap prevented one from growing darker, it did not promise to enhance the complexion. By 2000 end, F cream seemed to be losing ground not only to other creams but also to FairGlow soap. The switch from cream to soap was largely because soaps were perceived to be less harmful to the skin than cream. HLL id not have a product in its soap portfolio for this segment, and this was where Godrej seemed to have gained. However, in 2001, HLL followed Godrej’s footsteps and launched Fair & Lovely Fairness Soap. This intensified the competition. F&L’s extension into soaps was in tune with HLL’s strategy to develop and grow the premium segment of the market. From this background of information given, the new Fairever Fruit Fairness Cream has a lot of opportunity to gain the lost market share. People now are moving towards herbal products as they are now convinced of bad effects of some chemicals which are generally used in fairness creams. . 2 Limitations of the research • At times people were not interested in filling the questionnaires. And many did not follow the instructions. • Even though the sample size was 200, it was tough to get people who have used fairness creams. 10 1. 3 Structure of the report The report covers the basics of the management decision problem and marketing decision problem. Then it deals with an introduction to research design after which an approach to the problem was developed. Then we proceeded to designing the questionnaire with a set pattern.

The questionnaire was tested and checked for its specificity, clarity and reliability. After making the rest of the changes it was used to conduct a survey on the sample selected from the target customer’s. The results were analyzed using SPSS. These results along with the opinion gathered through interviews and discussions were used to reach a conclusion. This study reflects the perception, opinion and brand loyalty of the public towards fairness creams. Fairever has great opportunity to grow because there is a huge difference in its market share when compared with Fair and Lovely to which Fairever is a direct competitor.

It gives an idea about the changes that should be brought about in its promotion to increase its market share. Introduction Background of Study – Literature Review Exploratory Research Research Design Descriptive Research Result Recommendations 11 SECTION 2 RESEARCH METHODOLOGY 12 2. 0 Research design 2. 1 Management Decision Problem: How can Fairever increase its sales and market share in India? Fairever being the flagship brand of CavinKare has a current market share of 15% in the Rs 800 crore fairness cream markets. The different variants of Fairever cream have not been able to increase the sales and market share.

In order to compete with the market leader HUL’s Fair and Lovely; CavinKare has launched its latest variant, Fairever Fruit Cream which promises to have Fruit extracts. The management dilemma is: • • The management has to identify the marketing strategy. The management has to also see how to capture the customer’s attention. 2. 2 Market Research Problem: • To gain an insight into the customer’s awareness, expectations, perceptions, buying preferences and behavior relating to the use of fairness creams • To study the feasibility and chances of success of the new variant of Fairever cream.

Components of Marketing Research Problem • Identifying the scope for the new Fairever Fruit Fairness Cream. • To analyze the perception that people have on this cream. (Do people accept that fruit extracts are effective in giving fairness) • To analyze the acceptance and purchase intention for the new Fairever fruit cream. • Behavior of customers in using such products. • To analyze the reason behind Fair and Lovely dominating the market. • To identify other related insights among customers. • To identify the criteria’s on which consumes make their purchase. . 13 2. 3 APPROACH TO THE PROBLEM

After defining the management decision problem and marketing research problem an appropriate approach was developed. In this research problem we are trying to understand the customer preferences for a particular product. It also includes what are the purchase decisions, who are taking the purchase decisions and whether they are influence by their friends, relatives etc. If the customer is using a fairness cream and is the present fairness cream giving them satisfaction. The main problem is to see that if the new fruit fairness cream will give them the real fruit effect. Awareness Perception Loyalty Action

Awareness: Awareness does not mean just knowing the name of the brand but also what products are offered by the brand and what the brand stands for. how many people in the target segment are aware of the product. Perception: Whether the customer is knows the new product introduced in the market.. 14 Loyalty: How much the customer trust and believe the brand. And whether the customer is confidence about quality. Action: How many customers actually go to buy the product? This factor strongly influences other factors. This factor defines if the product is successful or not 2. 4 RESEARCH QUESTIO S A D HYPOTHESIS . RQ : Are the respondents willing to buy the new Fairever Fruit Fairness Cream? H : The respondents are willing to buy the new Fairever Fruit Fairness Cream. 2. RQ: Are the existing fairness cream consumers willing to shift to the new brand? H : The existing fairness cream consumers are willing to shift to the new brand. 3. RQ: Are people today more conscious about having a fair skin? H : Consumers are more conscious about their complexion. 4. RQ: Are the current Fairever customers willing to shift to the new variant? . H : The present Fairever consumers are willing to shift to the new variant. . RQ: Are the customers using the fairness cream to acquire fair skin? H : The customers are using the fairness cream to get fair skin. 6. RQ: Are the customers using the product twice a day? H : The customers are using the product twice a day. 7. RQ: Do they use it as a face and neck cream? H : The consumers use it as a face and neck cream. 8. RQ: Do people perceive that Fair and Lovely to be more effective than other creams? 15 H : People perceive that Fair and Lovely is better than any other cream. 9. RQ: Do consumers buy Fair and Lovely because the advertisements are convincing?

H : The consumers buy Fair and Lovely because the advertisements are convincing. 10. RQ : Do consumers purchase fairness creams because the packaging is good? H : No the consumers do not buy the cream because of packaging. 11. RQ: Do consumers make their purchase on the basis of skin safety? H : They make their purchase on the basis of skin safety. 12. RQ: Do consumers make their purchase on the basis of the ingredients present? H : The consumers buy the products on the basis of the ingredients. 13. RQ: Do consumers make their purchase on the basis of price? H : They purchase the product on the basis of price . 16 2. 5 EXPLORATORY RESEARCH

The research would involve qualitative research methods as primary data has to be collected directly from the end-users. Exploratory research uses secondary data which helps in gaining valuable insight through searching through the problem. The use of fairness creams among both men and women is increasing today, so in order to get the real perception, attitude, beliefs, buying behavior and also some hidden thoughts exploratory research inevitable. 2. 5. 1 Secondary data analysis Secondary data which is needed in this research pertains to the company history, its path of progress and the environment in which the company operates. t relates to the information regarding the product mix, marketing strategies adopted etc. Data from different websites and retailer audits has to be collected so as to get a base for the research. In our secondary data we spoke to the customer’s and to the store owners about their opinion about the product. After speaking to the store owners we got an idea on how many people ask for fairness creams and how many ask for particular brands. 2. 5. 2 Focus-group The research will include focus groups which will consist of young girls. This technique will lead us to make unexpected discoveries and valuable insights from the customer’s mind.

A homogenous group will be invited and a moderator will be present to lead the discussion. The target group will be given freedom to express their views, opinions, beliefs about the creams they use and the creams they are aware of. Topics of interest to the researcher will be put to discussion and the key points are recorded. Characteristics of the focus group • • • • Group size: 5 ( 5 girls) Group composition: homogenous college going Physical setting: classroom Time duration: 1 hour 17 2. 5. 3 Depth Interview This is another qualitative technique which is unstructured and a direct way of obtaining information.

The one-to-one interview was done by going to houses where girls and boys use creams. When they are at their residence consumers are at ease and they will be more open and willing to give a true picture of what they actually perceive. It helps us to probe into issues and to know the consumer’s motivations, beliefs and feelings. The technique of Laddering helped us to tap into consumer’s network of meanings. The line of questions proceeds from creams and trickles down to Fairever Fruit Fairness Cream. Depth interviews were conducted in Trichur and Coimbatore cities. 2. 5. Projective Technique Projective technique helped our research in terms of understanding and interpreting the behavior of others rather than describing their own behavior. The respondents while interpreting the behavior of others, they indirectly project their own motivations, beliefs, attitudes or feelings into the situation. This gave us a valuable insight into the consumers mind, because it projected the buying behavior of the cream users and also their interpretation of other cream users. Various techniques were used in this research to project issues. Completion technique

Respondents will be given a sentence which is incomplete and they will be asked to complete that sentence. For example “A person who uses fairness creams……………. ”. This will help to know the inner feelings of the consumer about the product. Association technique In this research our respondents are presented with a stimulus and are asked the response with the first thing that comes to their mind. For example words like skin care, fairness cream etc. are given and the respondents are made to associate each word and time taken 18 to respond is recorded. This will aid the research in finding out the underlying feelings on the topic of interest. . 6 DESCRIPTIVE RESEARCH The survey we used were limited to personal methods like • • Personal In-Home Interviews and Mall Intercept Personal Interviews Through this method we were able to get a direct feed back 2. 7 PRETEST A D QUESTIO AIRE DESIG After obtaining the required information through the exploratory research techniques, the next step in our project was to design a questionnaire and to pretest it before our actual research. The questionnaire design was based mainly on the insights drawn from the findings of the exploratory research and also on logical understanding of the project.

The process of pretesting refers to the testing of questionnaire on a small sample of the respondents to identify and eliminate potential problems in the questionnaire. The sample size for our pretesting process was 25. It was done in Trisshur (Kerala). We carried out this process only on women in the age group of around 15-35, as they constituted most part of our target population. To know which would be the prospective problematic areas in our questionnaire, one of us used to be with the respondents, assisting them when they needed guidance so that we can easily figure out the weaknesses of the questionnaire.

The next step was to analyze these questionnaires. Objectives behind this analysis was : • • • • To know if the respondents were easily able to comprehend the questions To identify the parts of the questionnaire that respondents found to be confusing To identify if we were getting the information that we really wanted to obtain To identify if interpretation of data was possible with the collected information 19 2. 7. 1 Learning from the pretest

The pretesting process was an extremely useful process in our project as it enabled us to identify areas in which areas we were going in the wrong direction and helped us to modify it before the actual research. Major findings of this process were: • The questionnaire was too lengthy and respondents were impatient to fill in the entire questionnaire. After the analysis, we were able to eliminate few questions that were not really relevant to our research. • Initially, we had restricted the options to few brands and after the analysis, it was found that respondents were filling in more answers in the “others(please specify)” option.

Thus, we added few more familiar brands in the applicable questions. • Respondents were reluctant to give personal information and so we removed fields that were not essential to the research process. • Most of the respondents found our critical questions to be simple to answer, which suggested that it was a feasible questionnaire. 2. 8 SAMPLI G PROCESS Target population: The target population of consumers will be those people who use fairness creams, preferably young girls. One third of the sample will be boys. Sampling frame: The sampling frame would include young girls, working women and households in the cities of Coimbatore and Thrichur. 0 Sampling technique: Sampling techniques for this research would include: • Judgmental sampling, based on the intuition and judgmental reasoning from experience of the researchers. • Convenience Sampling, based on convenience and location of the researchers. The best technique would be a mix of both, where the researchers talk to persons at their convenience and who they think will fall in the target market for fairness creams. Sample size: To understand and comprehend the behavior, perception, needs, attitudes, beliefs, feelings etc of the target customer a sample size of 200 were selected. 2. 9 DATA COLLECTIO & CLEA I G

Data collection: We collected both primary and secondary data for our research. Primary data was collected through questionnaires, focus group interviews and discussions with fairness cream users. Large part of our primary data was obtained from the responses to the questionnaires. The survey was conducted in Coimbatore city and Trishur. The survey techniques used were mall intercept interviews, in-home survey and street intercept . The secondary data was obtained from the internet, magazines, television commercials and news papers. Data cleaning: Data cleaning was done before transferring the data from individual questionnaires onto SPSS. 1 Consistency checks: Consistency checks identified those values those were not logically related to their previous responses. For example, some of the respondents who said they don’t use fairness creams had responded to questions related to the purchase and use of fairness creams. Missing responses: Certain values of a variable were unknown since they were not answered by the respondents. Based on the responses of other questions, the answer of a missing response was imputed or a respondent. 2. 10 DATA A ALYSIS PLA Data analysis was a major section of our project since it helps us to perform hypothesis testing.

Data analysis was carried out using the data obtained from survey. The basic framework followed for this analysis was as follows: • Identified the questions in our questionnaire which would answer our research questions. • • • • • • • Identified if there were more than one question which could answer the Research question and if those questions are related. Decided how we would analyze the questionnaire questions, (through Frequency charts, crosstabs etc. ) Selected the method of analysis and then conducted the analysis Used the results obtained to reject or accept the hypothesis.

Note down any additional information gathered from analysis of the data. 22 SECTION 3 EXPLORATORY RESEARCH 23 3. 0 EXPLORATORY RESEARCH RESULTS 3. 1 I TRODUCTIO The research would involve qualitative research methods as primary data has to be collected directly from the end-users. Exploratory research helps in gaining valuable insight through searching through the problem. The use of fairness creams among both men and women is increasing today, so in order to get the real perception, attitude, beliefs, buying behavior and also some hidden thoughts exploratory research inevitable. . 2 Methodology followed Exploratory research being an unstructured way of doing research helped us to free ourselves and to really go into the minds of consumers directly. As a part of this, firstly we conducted the focus group getting young girls from Amrita Institute of Engineering College . We did our secondary data analysis by visiting different websites, this helped us to get relevant data regarding the background of the company and industry as whole. We also try to get some insight by using projective techniques like completion of a sentence and association.

Depth interview was conducted in the house of Mr. Raghuvaran and his family who is residing in Trichur city. We interviewed his daughter, Sindu who is a fairness cream user. We are happy that our exploration by the above methods did give us fruitful information. W e, express our thanks to the focus group members and Mr. Raghuvaran and family. 24 3. 3 Major findings of the depth interview • Consumers give more importance to skin safety . they resort to traditional and safe methods to enhance their fairness. • The basic and most dominating reason behind using fairness creams is the feeling that one has become dark. Price is not the main criteria for purchase, as long as the cream is giving the solution to the problem the consumer is facing. • • The consumers are less willing to shift to a new brand as they are brand loyal. Consumers believe that fairness creams are just a sort of psychological comfort even if it does not increase the fairness. 3. 4 Influence on research design The revelations from our exploratory research had a great influence on our research design. Our questionnaire includes questions relating to the findings of the depth interviews, focus group and projective techniques.

Some inferences from the findings we got helped us to refine our research design. The insights helped us to progress from exploratory research to the most important descriptive research. Focus group moderator brief and major findings- refer Appendices. 25 SECTION 4 DESCRIPTIVE RESEARCH 26 4. 0 DESCRIPTIVE RESEARCH RESULT 4. 1 Introduction In order to describe the characteristics of our target group, salespeople, and to determine the perception of the product we conducted a survey using the questionnaire provided in Appendix….. A pretest was conducted and the required changes were made before the survey was undertaken.

The survey was carried out both individually and as teams. A sample survey was carried out to make inference about the whole group from which the sample was drawn. We took care to ensure that the sample is a representative of the population who use skincare product and fall under the age category of 16- 40 years. The survey data consist of information about each person in the sample selected from the relevant target population. 4. 2 Description of the descriptive research process Survey Methods Personal Interviewing In-Home Mall Intercept Street Intercept 27

The survey methods used were personal in-home interviews; mall-intercept personal interviews and street intercept personal interviews. The survey was carried out in the city of Coimbatore and Thrisur. The survey was done using the questionnaire provided in the Appendix 2. 0. A total of 200 responses were obtained and the data and results are given in the following section. The respondents were selected based on the personal judgment of the person conducting the survey. The ideal candidates for our survey were those who gave us an impression of being careful about the way they looked.

A certain portion of the survey was carried out in various beauty parlors, shopping malls, cosmetic stores and boutiques in Thrisur. The remaining part of the survey was done in colleges and supermarkets in Coimbatore. The over all response to the survey was positive except for a few respondents who were not ready to respond to the questions. Mall intercept interviewing was selected so that we could choose those respondents who are in the process of buying a skincare product. We could also understand how they responded to the skincare product displayed on the shelves.

By observing we could also get a rough idea about the amount that person is ready to spend on a particular skincare product. Street intercept method was chosen to find the opinion of those people who spend a considerable amount of time out in the sun and their concept of skincare. Before doing the in-home interview, we informed the households well ahead of time that they will be contacted by an interviewer. Some of the questionnaires were given to households and parlors and were collected after an interval of few days. 28 SECTION 5 OBSERVATIONAL RESEARCH 29 5. 0 OBSERVATIO AL A ALYSIS 5. 1 Introduction

This type of descriptive research involves recording the behavioral patterns of people, objects, and events in a systematic manner to obtain information about the phenomenon of interest. This methodology usually does not involve any direct communication with the people being observed. Observational methods may be classified into personal observation, mechanical observation, audit, content analysis and trace analysis. The methodology that we used in our project was personal observation. In this method, the observer does not try to control or manipulate the phenomenon being observed, but just merely records what takes place.

Our objectives in performing observational analysis were to obtain inputs regarding the following phenomena: • Visibility, availability and provision of shelf space to Fairever in stores in comparison to its competitors. • Customer buying behavior and preferences with respect to fairness creams. Our analysis is based on the observations made in the following stores: Nilgiris, Departmental stores – Avinashi Road, Coimbatore Good Look Palace, Cosmetic stores – Gandhipuram, Coimbatore Gharonda Super market – Padma Rao Nagar, Hyderabad Big Bazar – Trishur 5. Some of the major observations that were made during this process were: 1. In all the departmental stores mentioned above, Fairever and its major competitor Fair & Lovely were placed in the same or parallel shelf. 2. All variants of Fair & Lovely were available in abundance whereas Fairever was available in relatively lower quantities. 30 3. Very little or no point of purchase promotion was done for Fairever. 4. Good Look Palace, an exclusive cosmetic store, which is known for the quality of products it sells, does not sell Fairever. 5. Mot of the customers read the information on the pack before making the purchase. . 3 Based on the above observations, the following findings were made: 1. From the surveys and focus group conducted, it is obvious that visibility of the product is one of the key criterions in deciding the purchase of fairness creams. Both products, Fair & Lovely (market leader in this category) and Fairever have the same visibility. This is one sign of a good marketing practice being followed by CavinKare. 2. Availability is as important a criterion as that as visibility. Though Fairever has good visibility, it lags behind in availability when compared to its major competitor.

CavinKare has to concentrate on this factor too to increase sales of Fairever. 3. One of the findings of the research was that purchase decision of cosmetics was partly influenced by the suggestions of sales-personnel involved and also by the P-o-P advertisements. Though Fairever has a pretty good P-o-P advertising strategy, it does not seem to have paid attention to the part played by the sales-personnel. If Fairever improves on this point, more stores will be encouraging their sales-personnel to recommend Fairever, which in turn will result in increasing sales of the product. 31 4.

Though Fairever is available in almost all stores, right from the small “kirana walas” to the big retail outlets like Big Bazar, it seems to have ignored opportunities that would arise from exclusive cosmetic stores. Most of the beauty parlors buy their products from such outlets and by not entering into these stores, Fairever is missing the opportunity of more sales arising from the customers of beauty parlors, who buy products recommended by their beauticians. 5. Since ingredients are one of the determinants in making the choice of fairness crams, it is essential that the product provides complete, comprehensible information on its pack.

Fairever provides such information, thereby showcasing a good marketing practice being followed. 32 SECTION 6 SURVEY ANALYSIS 33 6. 0 Analysis of Data Research Question (RQ 1) : Are the consumers willing to buy the new fruit fairness cream? : The consumers are willing to buy the new fruit fairness cream. : Q11, Q12, Q14 : Frequency Hypothesis Questionnaire Reference Method Used “Fruits can give you fairness”? Cumulative Frequency Valid strongly disagree Disagree neither agree nor disagree Agree strongly agree Total Missing 9. 00 System Total Total 2 10 24 102 59 197 2 1 3 200 Percent 1. 0 5. 0 12. 51. 0 29. 5 98. 5 1. 0 . 5 1. 5 100. 0 Valid Percent 1. 0 5. 1 12. 2 51. 8 29. 9 100. 0 Percent 1. 0 6. 1 18. 3 70. 1 100. 0 34 Analysis : From the above analsysis,we can see that more than 50% of the sample agree that fruits can give fairness and 30% strongly agree with the same. This is a positive sign as it indicates people view of fruits giving fairness is valid. consumers consider fruits as natural way of getting fairness than applying creams of chemical content. You think apple has fairness enhancing properties? Cumulative Frequency Valid no yes Total Missing System 167 32 199 1 200 Percent 83. 16. 0 99. 5 . 5 100. 0 Valid Percent 83. 9 16. 1 100. 0 Percent 83. 9 100. 0 Total 35 You think papaya has fairness enhancing properties? Cumulative Frequency Valid no yes Total Missing System 46 153 199 1 200 Percent 23. 0 76. 5 99. 5 . 5 100. 0 Valid Percent 23. 1 76. 9 100. 0 Percent 23. 1 100. 0 Total 36 You think guava has fairness enhancing properties? Cumulative Frequency Valid no yes Total Missing System 190 9 199 1 200 Percent 95. 0 4. 5 99. 5 . 5 100. 0 Valid Percent 95. 5 4. 5 100. 0 Percent 95. 5 100. 0 Total 37 You think lemon has fairness enhancing properties?

Cumulative Frequency Valid no yes Total Missing System 92 107 199 1 200 Percent 46. 0 53. 5 99. 5 . 5 100. 0 Valid Percent 46. 2 53. 8 100. 0 Percent 46. 2 100. 0 Total 38 You think strawberry has fairness enhancing properties? Cumulative Frequency Valid no yes Total Missing System 149 50 199 1 200 Percent 74. 5 25. 0 99. 5 . 5 100. 0 Valid Percent 74. 9 25. 1 100. 0 Percent 74. 9 100. 0 Total 39 You think grapes have fairness enhancing properties? Cumulative Frequency Valid no yes Total Missing System 178 21 199 1 200 Percent 89. 0 10. 5 99. 5 . 5 100. 0 Valid Percent 89. 4 10. 6 100. 0 Percent 89. 100. 0 Total 40 You think banana has fairness enhancing properties? Cumulative Frequency Valid no yes Total Missing System 174 25 199 1 200 Percent 87. 0 12. 5 99. 5 . 5 100. 0 Valid Percent 87. 4 12. 6 100. 0 Percent 87. 4 100. 0 Total 41 You think orange has fairness enhancing properties? Cumulative Frequency Valid no yes Total Missing System 102 97 199 1 200 Percent 51. 0 48. 5 99. 5 . 5 100. 0 Valid Percent 51. 3 48. 7 100. 0 Percent 51. 3 100. 0 Total 42 Analysis: As we can see in the above analysis only 16% of the respondents think that apple is having fairness enhancing properties.

As apple is one of ingredients in the new Fairever cream, it is a negative sign and strawberry too about 75% of the people say that it is not having fairness enhancing properties. But papaya’s perception is different as more than 75% of people think that papaya is an effective fruit for enhancing fairness. Two out of three ingredients of the new cream has got a negative response. But as a whole people are positive about fruit extracts, so we can infer that people have a good probability of buying fruit fairness cream. 43 Research Question (RQ 2) : Are the existing fairness cream consumers willing to shift to a new brand? The consumers are willing to shift to a new brand. : Q24, Q15 : Crosstabs Hypothesis Questionnaire Reference Method Used Do you use fairness cream? * You think adding fruit extracts will increase effectiveness of cream? You think adding fruit extracts will increase effectiveness of cream? Yes Do you use fairness cream? no yes Total 76 39 115 No 14 8 22 Don’t Know 42 17 59 Total 132 64 196 44 Analysis : In the above analysis we can find that out of 64 people who use fairness creams 39 think that adding fruit extracts to their present fairness cream will increase the effectiveness of their cream.

This is a good sign, and we can conclude that the existing consumers are willing to shift their brand if fruit extracts are added. Research Question (RQ 3) : Are people today more conscious about having a fair skin? : The consumers are more conscious about their complexion. : Q1, Q2 : Frequency Hypothesis Questionnaire Reference Method Used Fair complexion needed to be beautiful? Frequency Percent Valid Percent Cumulative Percent Valid strongly disagree Disagree neither agree nor disagree Agree strongly agree Total Missing 9. 00 Total 11 41 48 82 15 197 3 200 5. 5 20. 5 24. 0 41. 0 7. 5 98. 5 1. 5 100. 0 5. 6 20. 8 24. 4 41. 6 7. 6 100. 5. 6 26. 4 50. 8 92. 4 100. 0 45 Good features needed to be beautiful? Cumulative Frequency Valid strongly disagree Disagree neither agree nor disagree Agree strongly agree Total Missing Total 9. 00 12 4 13 125 43 197 3 200 Percent 6. 0 2. 0 6. 5 62. 5 21. 5 98. 5 1. 5 100. 0 Valid Percent 6. 1 2. 0 6. 6 63. 5 21. 8 100. 0 Percent 6. 1 8. 1 14. 7 78. 2 100. 0 46 Healthy skin needed to be beautiful? Cumulative Frequency Valid strongly disagree Disagree neither agree nor disagree Agree strongly agree Total Missing Total 9. 00 2 8 8 106 74 198 2 200 Percent 1. 0 4. 0 4. 0 53. 0 37. 0 99. 0 1. 0 100. 0 Valid Percent 1. 0 4. 0 4. 0 53. 37. 4 100. 0 Percent 1. 0 5. 1 9. 1 62. 6 100. 0 47 Clear skin needed to be beautiful? Cumulative Frequency Valid strongly disagree Disagree neither agree nor disagree Agree strongly agree Total Missing Total 9. 00 2 3 35 95 59 194 6 200 Percent 1. 0 1. 5 17. 5 47. 5 29. 5 97. 0 3. 0 100. 0 Valid Percent 1. 0 1. 5 18. 0 49. 0 30. 4 100. 0 Percent 1. 0 2. 6 20. 6 69. 6 100. 0 48 Do you use moisturizer? Cumulative Frequency Valid no yes Total 68 132 200 Percent 34. 0 66. 0 100. 0 Valid Percent 34. 0 66. 0 100. 0 Percent 34. 0 100. 0 49 Do you use sunscreen lotion/cream? Cumulative Frequency Valid no yes Total 103 97 200 Percent 51. 48. 5 100. 0 Valid Percent 51. 5 48. 5 100. 0 Percent 51. 5 100. 0 50 Do you use fairness cream? Cumulative Frequency Valid no yes Total 136 64 200 Percent 68. 0 32. 0 100. 0 Valid Percent 68. 0 32. 0 100. 0 Percent 68. 0 100. 0 51 Do you use skin vitalizing/nourishing cream? Cumulative Frequency Valid no yes Total 148 52 200 Percent 74. 0 26. 0 100. 0 Valid Percent 74. 0 26. 0 100. 0 Percent 74. 0 100. 0 52 Analysis: More than 50% of the people feel that fair complexion is an essential part of beauty. More than 80% of people feel that healthy skin is necessity for being beautiful.

More than 80% feel that clear skin is necessary. All these suggest one thing that people consider skin color as very important criteria for beauty. Research Question (RQ 4) : Are the current Fairever customers willing to shift to the new variant. : The present Fairever consumers are willing to shift to the new variant. : Q24, Q25, Q15 : Crosstabs Hypothesis Questionnaire Reference Method Used 53 Have you used Fairever? * Are you satisfied with using Fairever? Count Are you satisfied with using Fairever? yes Have you used Fairever? yes no Total 25 0 25 no 15 0 15 I don’t know 12 86 98 Total 52 86 138 Have you used Fairever? You think adding fruit extracts will increase effectiveness of cream? Count You think adding fruit extracts will increase effectiveness of cream? Yes Have you used Fairever? yes no 29 86 No 6 16 Don’t Know 17 42 Total 52 144 54 Have you used Fairever? * You think adding fruit extracts will increase effectiveness of cream? Count You think adding fruit extracts will increase effectiveness of cream? Yes Have you used Fairever? yes no Total 29 86 115 No 6 16 22 Don’t Know 17 42 59 Total 52 144 196 Analysis: We can see that 52 respondents have used Fairever out of the 200 sample. In that almost 50% of people are satisfied with Fairever.

And also out of the Fairever users more than 50% think that fruit extracts is necessary. So we can infer that the consumers will definitely accept the new variant. 55 Research Question (RQ 5) : Are the customers using the fairness cream to acquire fair skin? : The customers are using the fairness cream to get fair skin. : Q2, Q21 : Crosstabs Hypothesis Questionnaire Reference Method Used Do you use fairness cream? * Do you expect freshness as an additional benefit from a fairness cream? Do you expect freshness as an additional benefit from a fairness cream? no Do you use fairness cream? no yes Total 43 30 73 yes 90 34 124 Total 133 64 197 6 Do you use fairness cream? * Do you expect sun protection as an additional benefit from a fairness cream? Do you expect sun protection as an additional benefit from a fairness cream? no Do you use fairness cream? no yes Total 55 26 81 yes 78 38 116 Total 133 64 197 57 Do you use fairness cream? * Do you expect glowing skin as an additional benefit from a fairness cream? Do you expect glowing skin as an additional benefit from a fairness cream? no Do you use fairness cream? no yes Total 74 28 102 yes 59 36 95 Total 133 64 197 58 Do you use fairness cream? * Do you expect moisturizing as an additional benefit from a fairness cream?

Do you expect moisturizing as an additional benefit from a fairness cream? no Do you use fairness cream? no yes Total 50 39 89 yes 83 25 108 Total 133 64 197 Analysis: Out of 64 respondents who use fairness creams 30 wants freshness as additional benefit . More than 50% wants sun protection, glowing skin. More than 40% feel that they want moisturizing effect. From this we infer that people not only look for fairness enhancing properties but also these additional benefits. 59 Research Question (RQ 6) Hypothesis Questionnaire Reference Method Used : Are the customers using the product twice a day? The customers are using the product twice a day. : Q15 : Frequency How frequently do you use creams? Cumulative Frequency Valid once a day twice a day thrice a day whenever I go out whenever I come back from outside others Total Missing Total 9. 00 5 185 15 200 2. 5 92. 5 7. 5 100. 0 2. 7 100. 0 100. 0 99 28 8 43 2 Percent 49. 5 14. 0 4. 0 21. 5 1. 0 Valid Percent 53. 5 15. 1 4. 3 23. 2 1. 1 Percent 53. 5 68. 6 73. 0 96. 2 97. 3 60 Analysis: More than 60% of respondents use creams only once a day and then next majority uses whenever they go out. So the inference goes against our hypothesis of people using creams twice a day.

Research Question (RQ 7) Hypothesis Questionnaire Reference Method Used : Do they use it as a face and neck cream? : The consumers use it as a face and neck cream. : Q17 : Frequency In which form do you prefer the product? Cumulative Frequency Valid face n neck cream full body cream face n neck lotion full body lotion Total Missing 9. 00 System Total Total 100 12 26 57 195 4 1 5 200 Percent 50. 0 6. 0 13. 0 28. 5 97. 5 2. 0 . 5 2. 5 100. 0 Valid Percent 51. 3 6. 2 13. 3 29. 2 100. 0 Percent 51. 3 57. 4 70. 8 100. 0 61 Analysis: Most of them prefer the cream as face and neck cream.

This shows that the visible part of the body is given importance. Research Question (RQ 8) : Do people perceive that Fair and Lovely effective than Fairever? : People perceive that Fair and Lovely is better than Fairever? : Do consumers buy Fair and Lovely because the advertisements are convincing? : Consumers buy Fair and Lovely because the ads are convincing. : Q27 : Frequency Hypothesis Research Question (RQ 9) Hypothesis Questionnaire Reference Method Used 62 Fairness Enhancing : Fair and Lovely Cumulative Frequency Valid very bad bad average good very good Total Missing Total 9. 00 24 4 18 20 16 82 118 200 Percent 12. 2. 0 9. 0 10. 0 8. 0 41. 0 59. 0 100. 0 Valid Percent 29. 3 4. 9 22. 0 24. 4 19. 5 100. 0 Percent 29. 3 34. 1 56. 1 80. 5 100. 0 Fairness Enhancing : Fairever Cumulative Frequency Valid very bad bad average good very good Total Missing Total 9. 00 7 8 22 18 9 64 136 200 Percent 3. 5 4. 0 11. 0 9. 0 4. 5 32. 0 68. 0 100. 0 Valid Percent 10. 9 12. 5 34. 4 28. 1 14. 1 100. 0 Percent 10. 9 23. 4 57. 8 85. 9 100. 0 63 64 Suitability : Fair and Lovely Cumulative Frequency Valid very bad bad average good very good Total Missing Total 9. 00 5 17 15 29 11 77 123 200 Percent 2. 5 8. 5 7. 5 14. 5 5. 5 38. 5 61. 5 100. Valid Percent 6. 5 22. 1 19. 5 37. 7 14. 3 100. 0 Percent 6. 5 28. 6 48. 1 85. 7 100. 0 65 Suitability : Fairever Cumulative Frequency Valid very bad bad average good very good Total Missing Total 9. 00 11 9 16 12 5 53 147 200 Percent 5. 5 4. 5 8. 0 6. 0 2. 5 26. 5 73. 5 100. 0 Valid Percent 20. 8 17. 0 30. 2 22. 6 9. 4 100. 0 Percent 20. 8 37. 7 67. 9 90. 6 100. 0 66 comparative analysis of Fair and Lovely and Fairever Cumulative Frequency Valid very bad bad average good very good Total Missing Total 9. 00 20 9 10 18 15 72 128 200 Percent 10. 0 4. 5 5. 0 9. 0 7. 5 36. 0 64. 0 100. 0 Valid Percent 27. 8 12. 13. 9 25. 0 20. 8 100. 0 Percent 27. 8 40. 3 54. 2 79. 2 100. 0 67 comparative analysis of Fair and Lovely and Fairever Cumulative Frequency Valid very bad bad average good very good Total Missing Total 9. 00 16 19 6 6 11 58 142 200 Percent 8. 0 9. 5 3. 0 3. 0 5. 5 29. 0 71. 0 100. 0 Valid Percent 27. 6 32. 8 10. 3 10. 3 19. 0 100. 0 Percent 27. 6 60. 3 70. 7 81. 0 100. 0 68 Analysis: Almost half of the respondents feel that Fair and Lovely lacks fairness enhancing properties. This is the same case with the Fairever. Research Question (RQ 10) : Is packaging an important criteria while purchasing creams? Packaging is an important criteria while purchasing creams. : Q8 : Frequency Hypothesis Questionnaire Reference Method Used 69 Importance of packaging in fairness cream selection? Cumulative Frequency Valid Least important important2 important3 important4 Most important Total Missing Total 9. 00 20 31 65 42 23 181 19 200 Percent 10. 0 15. 5 32. 5 21. 0 11. 5 90. 5 9. 5 100. 0 Valid Percent 11. 0 17. 1 35. 9 23. 2 12. 7 100. 0 Percent 11. 0 28. 2 64. 1 87. 3 100. 0 Analysis: Out of the respondents majority is indifferent on the packaging style. This shows that the purchase criteria is not very well depended on the packaging 0 Research Question (RQ 11) : Do consumers make their purchase based on skin safety? : Consumers make their purchase based on skin safety. : Q8, Q10 : Cross tab Hypothesis Questionnaire Reference Method Used Importance of skin safety in fairness cream selection? * Do you read info on pack? Do you read info on pack? yes Importance of skin safety in fairness cream selection? Least important important2 important3 important4 Most important Total 3 2 3 9 124 141 no 0 1 0 4 4 9 at times 0 0 2 5 27 34 Total 3 3 5 18 155 184 71 Analysis: Out of 184 respondents 155 feel that skin safety is very important.

Out of these more than 80% read the information given on the pack. This shows the care the consumers give for their skin. Research Question (RQ 12) : Do consumers purchase product based on the ingredients? : Consumers make their purchase based on ingredients. : Q8, Q10 : Cross tab Hypothesis Questionnaire Reference Method Used Importance of ingredients in fairness cream selection? * Do you read info on pack? Do you read info on pack? yes Importance of ingredients in fairness cream selection? Least important important2 important3 important4 Most important Total 1 11 20 32 78 142 no 0 1 0 5 3 9 at times 0 0 11 16 7 34 Total 1 12 31 53 88 185 2 Analysis: Out of 185 respondents 88 feel that ingredients are very important . Out of these 88 almost 98% read the information give on the packet. This shows that ingredients plays a major role in the selection of a fairness cream. 73 Research Question (RQ 13) Hypothesis Questionnaire Reference Method Used : Do consumers make their purchase based on price? : Consumers make their purchase based on price. : Q8, Q13, Q31 : Cross tab Importance of price in fairness cream selection? * How much do you spend on skin care monthly? How much do you spend on skin care monthly? 1000 14 0 0 0 0 14 Total 38 12 67 23 37 177 4 Which annual income group do you come under? * How much do you spend on skin care monthly? How much do you spend on skin care monthly? 1000 0 0 8 2 10 Total 14 18 21 134 187 Analysis: Out of the 67 respondents who feel that that price is neither important nor unimportant More than 70% spends less than Rs. 150 per month for skincare. From this we infer that price is not a strong factor in determining the purchase 75 SECTION 7 CONCLUSION AND DISCUSSION 76 7. 0 Conclusion and discussions The focus group interview conducted helped us to gather different opinion regarding skin care products and their usage.

The survey conducted helped us to understand that majority of the people did not use fairness creams as they believed it does not improve their skin complexion and it was harmful for the skin. Many people believed that once they start using the fairness cream they have to continue applying other wise it would darken their skin. Mainly we had targeted women between the age group of 16 to 40. the sample consisted of 200 respondents. Even though almost every one was aware of the brand called Fairever, very few had actually used Fairever fairness cream.

Fair and Lovely is still the major player in the fairness cream market. Many people strongly advocate natural skincare remedies. Therefore we conclude that the new brand of Fairever according to us will be a success as our analysis strongly supports the concept of fruit extracts. 77 APPENDIX 78 Appendix 1. 0 Focus group The research will include focus groups which will consist of young girls. This technique will lead us to make unexpected discoveries and valuable insights from the customer’s mind. A homogenous group will be invited and a moderator will be present to lead the discussion.

The target group will be given freedom to express their views, opinions, beliefs about the creams they use and the creams they are aware of. Topics of interest to the researcher will be put to discussion and the key points are recorded. Characteristics of the focus group • • • • Group size: 5 girls Group composition: homogenous college going Physical setting: classroom Time duration: 1 hour The focus group was conducted to know the deep insights of customers relating to fairness creams in general. The customers could reveal their experiences of using creams.

So many negative as well as positive aspects were brought in by the respondents. As our target consumers were young girls, the representative lot comprised of engineering, journalism students. Description The moderator started with a general discussion about perception of beauty. Most of the respondents replied that beauty is related to personality. That is inner beauty is more important. Then the moderator asked whether they believe in good skin and whether fairness cream will provide them with good skin. Most of the respondents said that good skin is very important but fairness cream does not give them satisfaction.

One of the respondents did not use creams because she believes in home remedies like rice flour, curd, turmeric, atta, potato juice etc. Among the five respondents only one used fairness cream (Fair and Lovely). Later she discontinued it because it gave rise to many pimples. Other 79 respondents had used Nivea, Himalaya packs etc. Because they felt that it provided them freshness and nourishment. And it also contained fewer chemicals which would harm the skin When the respondents were asked to compare about fairness cream advertisements, almost all the respondents felt that fairness ads are actually not effective.

Many felt that these ads are discourteous to women as a whole and same concepts are portrayed in all advertisements thus making it superficial. When the moderator asked how the respondent felt about the ingredients in the products. Most of them said that they could not connect about how saffron can be used on face as this ingredient is mainly consumed internally. Most of the respondents felt that not only fairness creams are bad for skin they also believed that parlor treatments are also dangerous for the skin. As these treatments had only temporary effect and parlors promoted only a particular brand which may not suit every skin.

When asked about how they prefer the packaging of the creams the respondents replied that they prefer in lamitubes because they felt that sachets are messy . none of the respondents were aware of the new sachet which is available in tube form. When asked about which was the first product visible to them among the fairness creams they had replied that Garnier, Nivea were more visible. And the respondents felt that the packaging of both Fairever and Fair and Lovely were similar. Later the discussion focused on whether fruits extracts would enhances fairness and the response was favorable.

But when asked if a fairness cream with fruit extracts were introduced in the market was they ready to shift form the existing brand none was ready because of various reasons such as Negative experience using fairness creams 80 Major findings • Most people were happy with their existing products and were not ready to shift to the new product. • Many have had negative experience after using skin care products. So they wait until someone has tried out the product to make sure there are no side effects. • Many were of the opinion that the advertisement theme needed a change as it was discourteous to women in general. • Many preferred natural skin care practices. Some respondents were highly loyal towards particular products like Himalaya, L’Oreal etc. • They were ready to try out various other skin care products except fairness creams. Conclusion Most of the respondents were loyal towards other brands and they were not ready to use the new products in the market as they are satisfied with the existing products. They believed that fairness creams would darken their skin. They were skeptical about trying out a new product due to the fear of any ill effects.

And most of them said that it would be better to use natural products to bring back the fairness of the skin 81 Appendix 2. 0 Questionnaire QUESTIO Dear sir/madam, AIRE We request you to take a few minutes to fill in the following questionnaire as a part of our survey on skin care product market in India. 1) Listed below are characteristics a male or female would need to be considered beautiful. Please indicate how strongly you agree or disagree with each by using the following scale: 1 = Strongly Disagree 2 = Disagree 3 = neither Agree nor Disagree 4 = Agree 5 = Strongly Agree a) Good features b) Healthy skin c) Fair complexion d) Clear skin ________ _________ _________ _________ 82 2) What kind of skin care products do you use? (Please tick all options which are Applicable to you) a) Moisturizers b) Sunscreen lotions/creams c) Fairness creams d) Skin vitalizing/nourishing creams e) Others (please specify)_________ 3) What comes to your mind when you think of Fairness creams? 4) Which fairness creams among the following had you used or is using now? (Please tick all options which are applicable to you) a) Garnier Light c) Vicco e) Fairever g) I don’t use fairness creams b) Fair and Lovely d) Shahnaz Hussain’s Fairone f) Ponds h) Others (please specify)_______________ ) What are your reasons for using a cream? Or when do you feel the need for using creams? ____________________________________________________________ ____________ ____________________________________________________________ ____________ 83 6) Rank the following fairness creams according to your preference. Ignore those creams you are not aware of. (Rank the choices from 1 to 6: 1 being the least preferred and 6 being the most preferred) a) Garnier Light b) Fair and Lovely c) Vicco d) Shahnaz Hussain’s Fairone e) Fairever f) Ponds g) Any other (please specify) _________ __________ __________ __________ __________ __________ __________ 7) Why do you prefer the brand you gave the first rank? ____________________________________________________________ ____________ ____________________________________________________________ ____________ 8) Please rate the importance of the following factors in your selection of Fairness Cream? (Circle the number of your importance in each factor. ) Not at all Important Very Important a) Price b) Brand Image c) Packaging d) Ingredients e) Fragrance f) Skin Safety g) Fruit Extracts 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5 i) The factors don’t matter to me 84 9) From where do you buy fairness cream? (Tick all options that are applicable to you) a) Super markets b) Beauty parlors c) Medical shops d) Cosmetic stores e) Others (please specify) ______________________________ 10) Do you read the information given on the pack? a) Yes b) No c) At times 11) “Fruits can give you fairness”. ? (Please tick your choice) 1 = Strongly Disagree 2 = Disagree 3 = neither Agree nor Disagree 4 = Agree 5 = Strongly Agree 12) Have you used any fruit on your face? If yes, which fruits? 3) On an average how much do you spend on Skin Care in a month? Please tick ( choice ) your ( a ) < Rs. 150 ( b ) Rs. 151 – Rs. 500 ( c ) Rs. 501 – Rs. 1000 ( d ) > Rs. 1000 85 14) Which of the following fruits do you think have fairness enhancing properties? (Tick all options that are applicable to you). Apple Papaya Guava Lemon Strawberry Grapes Banana Orange 15) Would you think that adding fruit extracts to your present fairness cream would increase the effectiveness of the product? a)Yes b)No c)Don’t know 14)) Do you use fairness cream regularly or seasonally?

If seasonally in which season? ____________________________________________________________ _________ 15) How frequently do you use creams? (a) Once a day (b) Twice a day (c) Thrice a day (d) Whenever I go out (e)Whenever I come back from outside Others (Please Specify) ___________________________________________________ 86 16) What is the nature of your skin? (Please tick your choice) (a) Dry (b) Oily (c) Normal (d) Combination 17) In which form do you prefer the skin care product? (Please tick your choice) (a) Face and neck cream (b) Full body cream (c) Face and neck lotion (d) Full body lotion 8) After how much time do you see the effect of the fairness cream? (a) Less than 1 week (b) Within 1 or 2 weeks (c) Within 4 weeks (d) Don’t know 19) What comes to your mind when you think of a fairness cream advertisement? 20) What color do you associate to a Fairness cream? ____________________________________________________________ ____________ 21. ) What additional benefits do you expect from a fairness cream? (Tick all options that are applicable to you) a) Freshness b) Protection from sun c) Glowing skin d) Moisturizing 87 22. ) What are your sources of information about fairness creams? Tick all options that are applicable to you) a) Friends b) Relatives c) Television ads d) Newspapers e) Magazines f) Beauty parlors g) Others (please specify)__________________ 23) Are you aware of the brand “Fairever”? a) Yes b)No 24) Have you used “Fairever”? a) Yes b)No 25) Are you satisfied with using Fairever cream? a) Yes b) No c)I don’t 26) If, No why? _________________________________________________________

Ongc Budgeting

INTRODUCTION “Not only had India…. set up his own machinery for oil exploration and exploitation…. an efficient oil commission had been build where a large number of bright young men and women had been trained and they were doing good work. ” -Pandit Janwarlal Nehru to Lord Mountbatten, on ONGC (1959)

ONGC Group of Companies comprising of ONGC Limited, and its subsidiaries ONGC Videsh Limited (OVL), ONGC Nile Ganga BV (ONGBV) and Mangalore Refinery and Petrochemicals Limited (MRPL) organize Import/International Sale of Crude Oil, Export of Petroleum Products and Petrochemical Products through Tendering Procedure for all the Group Companies of ONGC. ONGC Group presents a lot of business opportunities to prospective Business Partners in the area of international sale/import of Crude Oil and Export of Petroleum Products and Petrochemical Products.

ONGC Group is one of the fast growing groups in the world and its parent company ONGC is the only fully-integrated petroleum company in India, operating along the entire hydrocarbon value chain. It is not only the largest E&P Company in India but also one of the most valuable companies in India. Moody’s has assigned ONGC Baa1-highest ever credit rating to any Indian corporate. Highest ever profit company in India since last many years, it produces value added products like Naphtha from its own plants, which are available for export. ONGC Videsh Limited (OVL) is an overseas arm of ONGC, engaged in Exploration & Production Activities.

It trans-nationally operates E Business in various countries across the globe. OVL has so far, acquired several properties in more than 12 countries across the globe, and striving to reach out further OVL’s projects are spread out in Vietnam, Russia, Sudan, Iraq, Iran, Lybia, Syria, Myanmar, Australia, Brazil, Cuba and Ivory Coast. It is further pursuing Oil and gas exploration blocks in Algeria, Australia, Indonesia, Nepal, Iran, Russia, UAE and Venezuela. Nile Blend Crude Oil from its Sudan Project and SOKOL Crude Oil from its Sakhalin 1 Project in Russia are available for sale in International Market.

Mangalore Refinery and Petrochemicals Limited (MRPL), located in a beautiful hilly terrain north of Mangalore city on west coast of India, have a State of Art Grass root Refinery at Mangalore and is a subsidiary of ONGC. The Refinery has got a versatile design with high flexibility to process Crude oils of various API and with high degree of Automation. MRPL has a design capacity to process 9. 69 million metric tones per annum and is the only Refinery in India to have 2 Hydro crackers producing Premium Diesel (High Cetane).

It is also the only Refinery in India to have 2 CCRs producing Unleaded Petrol of High Octane. Lately it is venturing into production of Petrochemicals Products (Mixed Xylene, Para Xylene, Propylene, Benzene) LOBS and Petroleum Coke, which are in addition to its production of the whole range of Petroleum Products ( Naphtha, Jet Kero, HSD/Gas Oil, FO, Reformat, etc. ). In future, it has plans to expand its capacity. Currently all type of Petroleum Products viz. Naphtha, Jet Kero, HSD/Gas Oil, FO, Reformat, VGO and Mixed Xylene under Petrochemical Products are available for export.

ONGC is an organization which has joint ventures domestic as well International like:- a. Domestic Joint Venture: – ONGC Tripura Power Company (P) Ltd. (OTPC) Petronet LNG Limited Petronet MHB Limited Pawan Hans Helicopters Limited b. Overseas Joint Venture: – ONGC – Mittal Energy Ltd. (OMEL) ONGC – Mittal Energy Services Ltd. (OMSEL) THE COMPANY COMPANY HISTORY 1947 – 1960 During the pre-independence period, the Assam Oil Company in the northeastern and Attock Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input.

The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources. After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity. Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and the Oil India Ltd. a 50% joint venture between Government of India and Burma Oil Company) was engaged in developing two newly discovered large fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture between Government of India and Standard Vacuum Oil Company of USA) was engaged in exploration work. The vast sedimentary tract in other parts of India and adjoining offshore remained largely unexplored. In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development.

With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological survey of India. A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural Resources, visited several European countries to study the status of oil industry in those countries and to facilitate the training of Indian professionals for exploring potential oil and gas reserves.

Foreign experts from USA, West Germany, Romania and erstwhile U. S. S. R visited India and helped the government with their expertise. Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61). In April 1956, the Government of India adopted the Industrial Policy Resolution, which placed mineral oil industry among the schedule ‘A’ industries, the future development of which was to be the sole and exclusive responsibility of the state.

Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further.

The main functions of the Oil and Natural Gas Commission subject to the provisions of the Act, were “to plan, promote, organize and implement programmes for development of Petroleum Resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as the Central Government may, from time to time, assign to it “. The act further outlined the activities and steps to be taken by ONGC in fulfilling its mandate. 1961 – 1990

Since its inception, ONGC has been instrumental in transforming the country’s limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories. In the inland areas, ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both inland and offshore). ONGC went offshore in early 70’s and discovered a giant oil field in the form of Bombay High, now known as Mumbai High.

This discovery, along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. Subsequently, over 5 billion tones of hydrocarbons, which were present in the country, were discovered. After 1990 The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. As a consequence thereof, ONGC was re-organized as a limited Company under the Company’s Act, 1956 in February 1994.

After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2 per cent of its shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering shares to its employees. During March 1999, ONGC, Indian Oil Corporation (IOC) – a downstream giant and Gas Authority of India Limited (GAIL) – the only gas marketing company, agreed to have cross holding in each other’s stock.

This paved the way for long-term strategic alliances both for the domestic and overseas business opportunities in the energy value chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2. 5 per cent to GAIL. With this, the Government holding in ONGC came down to 84. 11 per cent. In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified into the downstream sector. ONGC will soon be entering into the retailing business. ONGC has also entered the global field through its subsidiary, ONGC Videsh Ltd. OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam. MISSION & VISION “To be a world-class Oil and Gas Company integrated in energy business with dominant Indian leadership and global presence. ” World Class •Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people. •Imbibe high standards of business ethics and organizational values. •Abiding commitment to safety, health and environment to enrich quality of community life. Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people. •Strive for customer delight through quality products and services. Integrated In Energy Business •Focus on domestic and international oil and gas exploration and production business opportunities. •Provide value linkages in other sectors of energy business. •Create growth opportunities and maximize shareholder value. •Dominant Indian Leadership •Retain dominant position in Indian petroleum sector and enhance India’s energy availability. MANAGEMENT STRUCTURE CRC(CORPORATE REJUVENATION CAMPAIGN) STRUCTURE pic] ORGANISATION STRUCTURE IN AHMEDABAD ASSET Organization Chart of Finance Department Ahmedabad Asset GEOGRAPHICAL SPREAD OF FACILITIES • Assets / Plants o Mumbai High Asset, Mumbai o Neelam & Heera Asset Mumbai o Basin & Satellite Asset, Mumbai o Uran Plant, Uran o Hazira Plant, Hazira o Ahmedabad Asset, Ahmedabad o Ankleshwar Asset, Ankleshwar o Mehsana Asset, Mehsana o Rajamundry Asset, Rajamundry o Karaikal Asset, Karaikal o Assam Asset, Assam o Tripura Asset, Agartala • Basins o Western Offshore Basin, Mumbai o Western Onshore Basin, Baroda o K G Basin, Rajamundry o Cauvery Basin, Chennai Assam & Assam Arakan Basin, Jorhat o CBM – BPM Basin, Kolkata o Frontier Basin, Dehradun • Regions o Mumbai Region, Mumbai o Western Region, Baroda o Eastern Region, Nazira o Southern Region, Chennai o Central Region, Kolkata • Institutes o Keshava Deva Malaviya Institute of Petroleum Exploration, Dehradun o Institute of Drilling Technology, Dehradun o Institute of Reservoir Studies, Ahmedabad o Institute of Oil & Gas Production Technology, Navi Mumbai o Institute of Engineering & Ocean Technology, Navi Mumbai o Geo-data Processing & Interpretation Centre, Dehradun o Institute of Management Development, Dehradun Institute of Petroleum Safety, Health & Environment Management, Goa • Services o Drilling Services, Mumbai o Well Services, Mumbai o Geo-Physical Services, Dehradun o Logging Services, Baroda o Engineering Services, Mumbai FUNCTIONAL AREAS Production/Operation ONGC has mainly production of various Oil, Petroleum products, and Gas from raw material called crude. It is obtained from onshore and offshore wells. There are mainly two types of wells, (a) Exploratory Wells (b) Development Wells Exploratory Well is a well that is not a development well, a service well or a stratigraphic test well i. . a well drilled in an unproved area for the purpose of finding and producing Oil or Gas. Development Well is a well drilled within the proved area of an Oil & Gas reservoir to the depth of a horizon known to be productive. The price of indigenous Offshore and Onshore crude oil payable to ONGC is inclusive of Royalty, Cess, NCCD(Natural Calamity Contingency Duty) and Sales Tax. The royalty rate on crude is dependent on well head value and is calculated on dispatched quantity and is paid to the state government, Cess is Rs. 1800/MT of sold quantity and is paid to Central Government, NCCD is Rs. 0/MT of sold quantity and is paid to the Central Govt. , and rate of sales tax is 4% of the sales value. Sales tax is paid to State govt. The price payable to ONGC on the quantity to be sold to the customer (IOCL) is received by the regional office. Supply Chain and Logistic The crude produced from wells is supplied through the below shown process, Crude Form Water Elimination Process Heating Treatment: Water Elimination, Removal of Salts & Basic Sediments. (Dispatched Quantity) Elimination of Salts & Sediments The crude is extracted from the field & sent to GGS (Group Gathering Station) through pipelines. • In GGS, water elimination process takes place. Thereafter, the crude is sent to CTF (Central Tank Farms), where it is given heating treatment to remove water, and basic sediments. From CTF, Crude is sent to Desalter Plant for removal of salts and basic sediments. • From Desalter Plant, Crude is finally sent through pipeline to Koyali Refinery Plant Situated near Baroda. Here the final refining takes place where crude is separated into oil, petrol and other value added products like ethane, propane, natural gas & LPG. Regional Office Baroda makes the billing for crude and receives revenue. Crude has closing stock. The pricing of Crude is done monthly and the billing is done weekly Pricing As per the instructions of MOP&NG, vide letter no. L-12015/5/97-GP (Pt. ) dated 09 November 2000, to continue with the existing gas pricing system, the following Consumer and Producer price of natural gas supplied by ONGC/OIL have been fixed on provisional basis for the month of May’07: (A)For supplies in states other than North East Consumer Price for natural gas supplied by GAIL with a

Calorific value of 10000 K. Cal. /M3: Rs. 2850/MCM Producer price (Payable to ONGC/OIL) for natural gas Supplies with calorific value of 10000 K. Cal. /M3: Rs. 2384/MCM (B)For supplies in North East Consumer Price for natural gas supplied by GAIL with a Calorific value of 10000 K. Cal. /M3: Rs. 1700/MCM Producer price (Payable to ONGC/OIL) for natural gas Supplies with calorific value of 10000 K. Cal. /M3: Rs. 1700/MCM The above prices would be subject to adjustment as per final decision of the Government on the gas price levels. Note: – Prices are proportionally adjusted based on NCV.

LEVIES Levies are paid only on gas supplies and not on gas flared or internally consumed except for Royalty on colony consumption. Approx 95% of the gas supply goes to GAIL while to the direct consumers. Levies include 10% royalty for GAIL and other customers. It is charged only on the total quantity of gas supplied but not on gas flared or internally consumed. Bills receivable from private consumer include 10% royalty, 20% sales tax(in Gujarat). Billing Procedure Billing is done every fortnightly. The first fortnight bill includes data from 1st to 15th of the month.

The second fortnight bill includes the data for the whole month (i. e. , from 1st to 30th/31st of the month. ) Thereafter, the initial bill is deducted from the later to get the amount for the second bill. The invoice is prepared and sent to the parties. The other procedure is undertaken in respect of MGO claim i. e. , Maximum Guaranteed Off-take. Under this, a minimum guaranteed supply quantity is fixed. The customer has to make payment on the basis of the basic rate. If the quantity lifted is more than the guaranteed qty. , payment shall be made for full quantity.

But if the quantity taken is less than the minimum guaranteed, first the payment will be made for the actual lifted amount and then for the balance (i. e. , the difference between actual lifted qty. and maximum guaranteed qty. ). This difference in the qty. is known as Short lifted Gas. Maximum Guaranteed Off-take is 80% of Maximum Contracted Quantity. Human Resource Management – AHMEDABAD The smooth functioning of any organization is dependent on the convergence between the objectives set by the company and its day to day functioning towards achieving these goals .

The onus in this regard, equally lies on the HR which plays a pivotal role in the working of the organization. The measure of any organization’s success is its HR practices. Policies, concepts, processes, techniques, and even technology can be adopted and benchmarked from other organizations. HR – GENERAL ADMINISTRATION The work of the Administration in an organization as large as ONGC in particular and Ahmedabad Asset in general, has its own challenges as it involves dealing with complex administrative affairs and maintaining cordial relationship among the employees as well as with other interfaces of the company.

The various functions of General Administration are as under – a) Allotment and vacating orders for colony accommodation. b) Maintenance of Asset Estate. c) Requisition of new office or housing accommodation. d) Hospitality which includes arrangements for official parties, meetings, seminars, hotel bookings, air / train ticket bookings, and smooth functioning of transit accommodation. e) Preparation of Indent for new articles, machinery, office / residential accommodation, Kits & Liveries, job contracts etc along with the support of MM, Finance, and concerned department. ) Monitoring of house keeping, garbage disposal, and horticulture contractual workers. FINANCE AND ACCOUNTS FINANCE DEPARTMENT OF ONGC ONGC consists of many departments i. e, “Production department, HR department, Finance deparment, Marketing department”. Finance department have its own importance in the organization. All the activities related to the salary of the employees,or allocation of cost, posting the entries of daily transactions, all the data’s related to the Sales of product etc. Hence finance has its vital importance in the functioning of the organization. ORGANOGRAM

Finance & Accounts Department, Ahmadabad asset General Manager Chief Manager Incharge Incharge Incharge Incharge Incharge Incharge Incharge Incharge Central Asset Costing/Wells Cash/Bank Pre-audit Budget EDP PCS Acc. Acc. Unit The above is the organogram of finance department of ONGC. It shows the hierarchy of the finance department. The different Incharge of various sections are described. All the different sections have its different functions. All the activities are interrelated without any of the section the work cannot be completed.

The main function of Finance section is to reduce the cost of the organization. The first work is done by the Incharge of budget because firstly the budget has to be prepared on that basis only the target can be decided and exploration or production can be done by the Onshore or Offshore Employees. And after the production had been done then after that the selling of the product is done. As ONGC deals with the selling of two products only Oil & Gas. Sales accounts are prepared on the basis of sold quantities. The PCS(Personal Claim Section) department deals with the earnings of employees like Salary, Loan,Advances etc.

Costing section deals with the allocation of costs, when the production work is done the cost of each activity is allocated to the cost center. Ahmedabad finance has developed in house website (www 10. 205. 67. 54) which gives useful information regarding PCS claims, circulars etc. As every Asset prepares its financial report and send it to the main Head quarter Dehradun and the consolidated balancesheet is prepared after compiling all the different asset’s financial balancesheet is prepared and it is shown in the annual report as ONGC’s financial status. Finance & Controlling

Finance & Controlling module of SAP is divided into two main sections- (1) Financial Accounting (2) Controlling. The financial accounting module handles the financial transactions for the organization. Balance Sheets are traditionally produced from this module in SAP, as this is where the legal entity is registered. The controlling module handles the cost and profitability accounting for the organization. It specifically caters to internal management reporting requirements on areas of cost analysis and control, evaluating profitability of business segments, variance analysis and budgeting.

DIFERENT FINACIAL SECTION IN ONGC 1. General Ledger 2. Cash & Bank 3. Costing – Material & Asset 4. Sale Accounting & Receivable Management 5. Pre-Audit Section 6. Asset Accounting 7. Budget 8. PCS I) GENERAL LEDGER:- General ledger is the centralized, up-to-date reference for rendering of the accounts. In SAP actual individual transactions can be checked at any time in real-time processing by displaying the original documents, line items and monthly debits and credits at various levels such as: Accounts Journals Summary of monthly debits and credits balances

Balance sheet/profit & loss evaluations The SAP FI General Ledger has the following features: 1) Free choice of level: corporate group or company 2) Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger accounts (known as ‘reconciliation accounts’ in SAP) Real-time evaluation of and reporting on current accounting data, in the form of account displays, financial statements with different balance sheet versions and additional analysis. Document Types: <> <> <> |Posting Keys | | |Dr. |Cr. |Normal |40 |50 | |Vendor |29 |39 | |Costing |91 |101 | |Sales a/c |01 |15 | |Pre-audit |21 |31 | Document Process:- Accounts Heads:- Charts of Accounts ? 01-FA ? 03-Depreciation ? 05-Capital WIP ? 07-Producing Property ? 09-Inventory ? 10-Advances ? 12-IUT ? 14-DRE ? 16-P&L A/c ? 19-Liability ? 20-Expenses ? 21-Workrelated 22-Depreciation for the year ? 23-Revenue Company Codes in IUT:- ? 120112-For all Cross Company Codes ? 120102-Receivables ? 120103-Payables ? 120115-IUT for transfer for other projects. Park document Menu: (T Code F-65): Accounting > FinancialAccounting > GL >Documen Entry > Park 1. All documents involving a bank or cash transaction have to be initially parked. 2. All documents involving Inter Unit Transaction(IUT) have to be initially parked. 3. Once a normal document has been parked ? Note the Document number ? Display the line items of the document Take a print of the document, attach supporting documents and forward the document to relevant officer for approval on paper and release/posting in the system. (Normal Documents: SA,BP,BR,CP,CR and KS). 4. Once an Inter Unit Transaction (IUT) document has been been parked. ? Note the document number ? Display the line items of the document take a print of the document, attach supporting documents and forward the document to relevant IUT Manager for approval on paper and posting in the system. Role of Asset Accounting in ONGC The functions of ONGC Ltd. Being an E&P co. have spread over big area and have great significance in context of fixed assets as major portion of its investments blocked in fixed assets. Hence, the role of asset accounting is very vital. The maintenance of accounts for all these fixed assets, spread over various work centers, involves great efforts and proper understanding of the system. Various functions of Asset Accounting in ONGC: – Pricing and Processing of GRV (Good Receipt Voucher). 1. Processing of issue vouchers. 2. Processing of vouchers pertaining to ‘In-Transit’ items. 3. Processing of condemnation vouchers. . Processing of vouchers pertaining to inter-indenter transfers. 5. Calculation of depreciation and allocation to cost activities. 6. Maintenance of records pertaining to fixed assets. 7. Generation of various reports. 8. Furnishing various types of information’s to services from time to time. 9. To provide information to meet statutory requirements as regards to payment of tax under Income Tax Act and Wealth Tax Act. Objectives of Asset Accounting in ONGC: – • To account for all items of expenditure and associated costs that goes to create fixed asset. To calculate depreciation as per the provision of schedule of Companies Act, 1956. • To track the location of an asset and its movement thereof. Asset Accounting Process Map GRV Capital in Stock Verified Indent Job Completion Note Issue e. g. , Fabrication jobs CWIP Job completion note e. g. , building GGS Assets Accounting include various steps in processes:- 1. Asset Master: Asset master is needed for entering the asset related transactions.

Normal Asset master record will be created by using the transaction code AS01. Asset Master Maintenance:- Maintenance of asset master includes creation of asset master for item procured. Asset master contains following details: • Asset description • Source of purchase i. e. Indigenenous or Imported • Date of purchase & capitalization • GRV/ I. V. number • Vendor name • Depreciation • Indenter code & cost center • Location and other details 2. Acquisition and capitalization of the asset acquired from external and internal Sources: – Asset acquisition through MM capitalization process . Retirement of asset after its useful life and posting of loss from the scraping of asset: – • Process of condemnation of asset will start with identification of asset, to be condemned, by the indenter. • The indenter will take the approval for condemnation of asset from the competent authority. • The indenter will prepare Asset condemnation note (A C N) & return the asset to store department . The copy of A C N will be sent to finance for writing off the asset from books. • Discarded asset will be uploaded as scrap material in MM for tracking. 4.

Calculation of depreciation and posting it to relevant accounts. • Depreciation is charged on each asset on monthly basis by executing a program. • The rate at which the depreciation is to be charged on particular asset is decided by the system on the basis of depreciation key attached to the asset. • The accounting entries are automatically generated once the depreciation runs program is executed. Asset Master stores the following information about an asset: • General information (description, quantity, etc. ) • Account assignment information. • Posting information (e. . capitalization date, date of completion of capital works, date on which depreciation started) • Time-dependent assignments (e. g. cost center) • Information for financial asset management • Real estate information • Leasing conditions • Investment support measures • Information on the origin of the asset • Physical inventory data • Insurance data Mode of payments:- Payments are done to both employees and vendor through different modes. For employee the payments could be made by cash if its below Rs. 5000 and if it is above Rs. 5000 the payment is done through cheque.

But for the vendors the payment is done only by cheque and dispatch through registered post. Process of Payments:- The payment is done on the basis of duly authorized invoices/vouchers received from pre audit section after verification of the credentials like correct payee name, amount etc. the payment is released. It is done through different modes. 1. Automatic Payment Programme 2. Manual outgoing payment through workflow. 3. Through bank payment document in cash section for Earnest Money Deposit (EMD) release In Automatic payment programme the transaction code is 110. Receipts:- Earnest money/Security Deposit/Tender:- Bank receipt voucher is prepared in cash section. Pay in slip is generated in duplicate and submitted to bank and instrument is deposited in bank. In this bank a/c is debited and the venders a/c with special indicators. • Receipt of gas sales, scrap sales is prepared through bank receipts, vouchers and BPR is prepared at Pre-audit. • Receipts from employees against advance and adjustment. • Foreign currency receipt against international tenders. Types of cash credit account with SBI:- 1. Main account – 91501 2. Clearing account – 90502 3.

Clearing Forex receipts – 91503 Incase of cheque issued 91502 a/c is credited while cheque for cheque deposited 91501 a/c is debited. Bank credits our a/c with them for cheque deposited and debit our a/c for cheque issued. Therefore in bank account with bank there is net debit only. On daily basis, the bank transfers the balance to its Head Quarters to make the balance nil. PCS SYSTEM (Personnel Claims Section) PCS Mission: • To maintain centralized record of claims, advances and loans disbursed to facilitate monitoring of recovery/settlement and approvals for subsequent loans/advances applications. To ensure that Claims/Entitlements are allowed as per rules and regulations, withholdings, and tax calculations. PCS are broadly divided into three categories: 1. Loans/Advances • Interest bearing (HBA, Car loan, Two Wheeler Loan, etc. ) • Non-interest bearing (TA Advance, Salary Advance, etc. ) 2. Official Claims • Travel Claims, Training etc. 3. Entitlement Claims • LFA, Leave Encashment, Medical, Holiday Home, etc. The PCS system consists of an ‘Employee Master’, which is known as ‘Vendor Master’ in SAP. The function of Vendor Master is to: Maintain Employee-wise Loan/Advance details on the basis of Loan/Advance type. • Keep the Employee Sub-Ledger Accounts Always reconciled with the corresponding G/L reconciliation Account. STAGES STAGES The preparation of Revised Budget Estimates and Budget estimates has to be accomplished in three stages. The followings are the recommended stages in preparation of Revised Budget Estimate for the Year 2009-10, Budget Estimate for the Year 2010-11 and Commitment Budget FY 2011-12 and beyond. The time schedule for various stages of completion of budget exercise is given as under:- STAGE |ACTIVITY |DESCRIPTION OF ACTIVITY |TIME SCHEDULE | |Stage 1 |Determination of physical targets. |Determination of physical targets |30th June | |Stage 2 |Formulation of activity wise indicative |Formulation of activity wise indicative financial |31st July | | |financial outlays corresponding to |outlays. | | | |approved physical targets. | | | | |Examination of activity outlays by CBC and |14th August | | | |communication of indicative financial outlays to | | | | |virtual corporate. | | |Stage 3 |Determination of financial outlays based |Determination of financial outlays based on |10th Sept. | |on approved indicative financial outlays |approved indicative financial outlays. | | | | |Presentation of draft budget proposals by CBC to |30th Sept. | | | |the EC. | | | | |Submission of budget proposals by virtual |15th Oct. | | | |corporate based on EC’s approval. | | | |Submission of budget agenda by CBC for |30th Oct. | | | |consideration of FMC and BoD | | It is emphasised that scheduled date of submission of budget data should be strictly adhered, else any delay will result in corresponding delay in budget approval process. STAGE 1: DETERMINATION OF PHYSICAL TARGETS:-

The targets for RE 2007-08 and BE 2008-09 shall be framed by the Assets/Basins in consultation with the concerned Heads of Services (with reference to resource availability) keeping in view the overall Corporate Objective, The targets shall be considered and approved by the Virtual Corporate’ in their meeting where location managers of the services will also be present Thereafter the Physical targets shall be got approved by the Virtual Corporate from the concerned Directors and submitted to Corporate Budget by 15th June’2007 in the formats It may be emphasized that the physical programmed shall form the basis both for Budget and Annual Plan to be submitted to Planning Commission. Hence, the physical programmed compiled in the Annexure above should be maintained for Corporate Planning requirement also. Major deviations in RE 2007-08 and BE 2008-09 targets Vis a vis BE 2007-08 targets are also to be explained in the separate explanatory note. STAGE 2: FORMULATION OF ACTIVITY-WISE INDICATIVE FINANCIAL OUTLAYS CORRESPONDING TO APPROVED PHYSICAL TARGETS:-

Virtual Corporate will work out Activity wise Financial Outlays corresponding to approved Physical targets based on the per unit cost of the inputs required to be used in accomplishing the activities of Survey, Exploratory drilling, Development drilling and Operating cost. Actual cost as per finalized accounts for F. Y, 2008-09 will form the basis for working out financial outlays for RE 2009-10 and BE 2010-11. However, in case of uncontrollable exigencies like increase in charter hire rates as per Contracts already finalized, etc, higher increase may be considered with detailed reasons to be furnished for While allocation of additional resources. Working out activity wise financial outlays, cost of services provided by services/expenditure incurred by other locations also need to be considered and the same will form the basis of resource allocation to services.

Accordingly, it is suggested, that service cost considered in activity wise financial outlays be arrived at after due deliberations between the service providers and service users and approved by respective Asset/Basin Managers. Virtual Corporate will also work out total financial outlays for funds allocations after adjusting for inter unit transfers. The information is required for allocation of financial outlays to Virtual Corporate for expenditure sanction and availability control. Activity wise financial outlays for funds allocation and details of Opex were submitted by Virtual Corporate to Corporate Budget Cell latest by 15th June’ 2009. Examination of Activity wise Financial Outlays by Corporate Budget:

Activity wise Financial Outlays submitted by Virtual Corporate will be examined by Corporate Budget Cell considering approved physical work programmed, cost of activities, availability of resources, etc. Based on above parameters, Corporate Budget Cell will communicate level of indicative financial outlays to Virtual Corporate after obtaining approval from Director (Finance). Item wise Financial Outlays: Virtual Corporate will work out item wise budget requirements under Natural heads within the limits of recommended activity wise financial outlays. Line item wise budget proposals under natural head will be converted into activity wise budget outlays and per unit budgeted cost of activities by allocation of common costs to the activities through the budget software.

Line item wise budget requirements will be iteratively reviewed and moderated at the work centres so that budgeted cost of activities fall within the acceptable level of last year’s actual costs and also that natural head budget remains within the limits of recommended activity wise financial outlays. It is reiterated here that for working out budgeted cost of activities, consumption of stores and spares during the financial year is to be considered and inventory variation will be reflected as working capital changes. Similarly, in case of Contractual services spreading beyond one financial year, actual utilization of services during the budget period will be considered while working out the budgeted cost of activities.

Accordingly, phasing of expenditure should be carried out to RE 09-10, BE 10-11 and CBE 11-12 and beyond so that budget outlays and budgeted activity costs are kept at realistic levels. After review and moderations, final budget proposals will be approved by respective Asset Managers/Basin Managers/ Heads of Institutes/chief of Services. After approval by Virtual Corporate, item wise financial budgets under natural heads, corresponding activity outlays and budgeted cost of activities will be submitted to Corporate Budget Cell. STAGE 3: DETERMINATION OF FINANCIAL OUTLAYS BASED ON APPROVED INDICATIVE FINANCIAL OUTLAYS:- Corporate Budget Cell will present the draft budget proposals to the Executive Committee.

Assets/Basin Managers and Service Chiefs need to justify their budget requirements in detail in case of variation over the previous years actual along with procurement status of cases processed. Work centers will revise the budget proposals in accordance with the decisions of EC and submit the same to the Corporate Budget Cell latest by 31. 8. 2009. Corporate Budget Cell will then finalize the budget agenda for obtaining approval of PAC and Board. 2. 2 DEFINA TION OF BUDGET According to Shubin, “A budget is a comprehensive overall plan in which management on the basis of estimated sales volumes and receipts establishes cost and expense allowances for future operations. In this way effectively integrating and directing activities towards carefully determined goals”.

According to Cost and Management Accountants, England “A budget is a financial and/ or quantitative statement, prepared and approved prior to a defined period of time, of the policy to be pursued during that period for the pll1pose of attaining objectives. It may include income, expenditure and employment of capitl”. INTRODUCTION: A budget is a valuable tool to help plan for upcoming year. It provides a structure to forecast and measure the activities of the organization. Once a budget is approved and implemented, it becomes a standard with which to measure the chapter’s performance on a monthly, quarterly or yearly basis. In addition, a budget can provide an early warning if adjustments in spending or revenue collection are necessary. Budget means the future plan or estimation.

Budget covers action m the whole of the organization for a definite period of time, being a sum total of all assets, Basins, Services, Institutes and Regional offices put together in case of ONGC. The earlier approach i. e. the traditional or incremental approach:- In the traditional approach, the budget was prepared on the basis of previous year’s figures. The past spending was extrapolated every year. This carried forward the inefficiencies of previous year to current year. This was functionally oriented (by division and department) and accounting oriented (Primary focus was on how-much) the justification was required only for the incremental programmers’.

Because the price rises, increment for inflation was given only on demand by the departments. This approach rarely made an attempt to reconcile or rationalize the budget to long range strategies and objectives. The burden of proof was placed on top management to decide how much should be spent for what and why. The new approach i. e. The Zero Based Budgeting (ZBB) approach:- ZBB is an operating planning and budgeting process which requires each manager to justify his entire budget request in detail from scratch (zero) and decide why he should he spent any money at all. It is a method of budgeting whereby all activities are re-evaluated each time a budget is set.

It is essentially a planning and budgeting mechanism employing cost benefit evaluation of projects and activities to enhance the allocation of resources within the organization into high priority efforts. It is a system whereby each budget item, regardless of whether it is a new or existing, must be justified in its entirety each tie a new budget is prepared. Advantages of Zero-Based Budgeting Efficient allocation of resources, as it is based on needs and benefits. Drives managers to find cost effective ways to improve operations. Detects inflated budgets. Municipal planning departments are exempt from this budgeting practice. Useful for service departments where the output is difficult to identify.

Increases staff motivation by providing greater initiative and responsibility in decision-making. Increases communication and coordination within the organization. Identifies and eliminates wasteful and obsolete operations. Identifies opportunities for outsourcing. Forces cost centres to identify their mission and their relationship to overall goals. Major processes:- The development and implementation of the ZBB requires managers and others in the organization to engage in following major planning, analytic and decision making process:- 1. Definition of the mission and goals of the workll1g unit. 2. Identification of the decision package. 3.

Analysis of each decision package. 4. Ranking of decision packages. 5. Acceptance of three decision packages for allocation of resources. 6. Budget preparation. 7. Monitoring and Evaluation. BUDGET PROCESS IN ONGC ONGC prepared the budgets are as follows: Revised budget estimate (Current year) Budget estimate (Next year) Commitment budget (Next to next year) Broad overview of budget formulation process: In the context of ONGC Ltd. , the Budget can best be defined as a statement of targets both physical and financial, intended to be achieved, in terms of exploration, drilling, production and other allied activities as also connected expenditure vis-a-vis revenue.

Considering the dynamic and complex nature of the organization, budgeting can be identified as the principal tool available to the management for Planning and control of physical operations and financial resources. A vital feature of Budget is the mutual enrichment of function between management and accounting. Projections of Physical targets intended to be achieved during the budget period and decision as to their exact shape and content is the purgative of the management after, of course, careful and in depth consideration of all relevant factors. The Accountant is like a Chief navigator. He provides the log of past recorded fact, allows for variations and gives the answers, in terms finance, about the results of taking specified course of action. He helps the management by converting the Physical Plan into financial figures i. e. the budget.

It has, however, to be noted that Budget is only an aid and not a substitute for managerial judgment. The process of budget formulation, in ONCC is a detailed, exhaustive and voluminous exercise; the exercise normally starts after completion of Annual Accounts in order to have actual utilization of budget and actual cost of various activities. It is envisaged to have the Board approval for the Budget Outlays of RE of the current period and BE for the next Financial Year by the end of September/ October of every year. The budget is prepared initially based on the resources requirements under natural heads and correspondingly financial outlays under various activities are prepared using the budget software.

Financial Outlays corresponding to the approved Physical Targets are prepared based on per unit cost of the inputs required to be used in accomplishing the activities. The budget activities consist of (i) Survey; (ii) Exploratory Drilling; (iii) Development Drilling; (iv) Capital; (v) R and (vi) JV’s. The Asset/Basin level activities are converted into financial outlays taking the unit cost as per rate of contracts or realistic unit cost of the activity. Virtual Corporate Boards (VCB) reviews and approves item-wise budget requirement prepared by respective units under natural heads (Capital, stores, spares, contractual, Manpower and other charges) for submission to CBG within the limits of approved indicative Financial Outlays.

Activity wise financial outlays submitted by Virtual Corporate Boards (VCB) are examined/ reviewed by Corporate Budget Group considering physical work program approved by concerned Director and reasonable cost of activities, availability of resources, etc. Corporate budget Cell (CBC) presents the draft budget proposal to the EC. EC moderates the company wide total financial outlay based on the total internal resources likely to be available during the budget period at global level. The moderation is done without reviewing the unit wise physical activities proposed to be taken up and completed in the budget period. Corporate Budget Cell requests an the units to moderate the budget as per the directives of EC.

CBC then finalizes the budget agenda for obtaining approval of Fi’vlC and Board. After approval of the Board, the approved budget is communicated to all units so that the budget is uploaded in EXPLANATION THROUGH FLOW D1AGRAM:- SERVICEWISE / ASSETWISE SUBMITTED TO LBC (LINK WITH ACTIVITY WISE) SUBMITTED TO VC (BUDGET IS AGAIN PREPARED WITH INDICATIVE OUTLAY) SUBMITTED TO CBC SUBMITTED TO EC GIVEN TO CBC GIVEN LBC UPLODED IN SAP TYPES OF ACTIVITIES PERFORMED BY ONGC: l. Survey 2. Development drilling 3. Exploratory drilling 4. Capital/project/scheme 5. OPEX(Operating Expenditure) 6. Joint Ventures 7. R TYPES OF BUDGET [pic] [pic] LINE ITEM-WISE BUDGET |SR NO. DESCRIPTION |QUANTITY |EXPENDITURE UPTO |REVISED BUDGET ESTIMATE 2009-10 | | | | |Cementing Services |Cementing Hours, Cementing Jobs | |Mud Services |Drilling Rig Days/Work over Rig Days | |Work over Services |Rig Days | |WSS Services |Jobs, Weights | |Well Completion Services Wells Completed | |Logging Services |Logging Hours | |Engineering Services |Weights, Man hours | |Logistic Services |Flying Hours, MSV Days, Tonnage Carried Vehicle Days, etc,. | |Project Overheads |Budget outlays of various activities | |Regional/Hqr. OH |Budget outlays of various activities | Note: Wherever, these parameters are not applicable, users may feed their own parameters in unit/weight column. Final Activities: Survey |Line Kilometres(LK) | |Exploratory Drilling |Metres | |Development Drilling |Metres | |Operating Expenditure |MMT(Oil + OEG) | To avoid cyclical iterations, Logistics Services, Engineering Services and Project Overheads cannot be allocated inter-se but only to the other intermediate and final activities viz, Drilling, Work over, Geophysical, Survey, Exploratory Drilling, Development Drilling, Production, etc. However, in case of Mumbai, various offshore services have been created as separate locations in the budget software.

As these offshore services do not have any final activity of their own and software restricts retransfer of the cost JUTs to other locations, Offshore Logistics and Offshore E groups will allocate the expenditure directly to the Assets / Basins considering the composite weights of support provided by Offshore logistics / E to other offshore services and utilization of offshore services by Assets/Basins for their final activities. No allocation will be given by Offshore Logistics and Offshore E to other Offshore Services in Mumbai region. In the top side of the screen, in the amount available for allocation fields, the final amount available after stage 1 and stage 2 for Logistics and Engineering Services will be available. After allocation of stage 3, the balance available under Logistics Services, Engineering Services and Project Overheads will be nil.

Stage-4: Allocation of other Intermediate Activities to Final activities: This stage provides for allocation of all other intermediate activities to the final activities. The features available on the screen are the same as available in screen of Stage 3. Activity parameters may be Rig Days for Drilling, Work Over Rigs, Logging Hours for Logging Services, etc. In case direct activity parameters are not available, allocations can be carried out on the basis of the weights considering last year actual allocations in accounts change in activity levels, technical weights, etc. Regional & Headquarter Overheads will be charged to P Alc as per applicable accounting guidelines.

To avoid cyclical iterations, at this stage, intermediate activities can be allocated only to final activities and not to the other intermediate activities. In the top side of the screen, in the amount available for allocation fields, the final amount available after allocations at Stage 2 and Stage 3 for all intermediated activities of the locations will be displayed. After allocation of Stage 4, the balance available under all intermediate services will be NIL. Stage-5: Incorporation of allocations received from other locations and change of activity codes if required: In order to facilitate for the running of allocations cycles for different locations independently, the software has been designed to allow the inter location allocations only to the final activities.

Accordingly, while making cost allocations to other locations at Stage 2, 3 and 4 the software allows the allocations only to the final activities and not to the intermediate activities. Stage 5 – Allows the budget coordinator of the transferee location to view the allocations received from other locations on the screen and if required to change the allocation from one final activity to another. However, the software does not allow him to change the total amount of the allocations received from the other locations, and if required, the budget coordinator of the transferee location will interact with the budget co-ordinator of the transferor location for re allocation of the amounts.

In case, transferor location had earlier sent some allocation to a particular transferee location, and it subsequently decides that no allocations are to be sent to that transferee location, the transferee location budget coordinator will delete the earlier received allocations received from that location by running “delete JUT received” option in the “Utilities” Menu. (This has already been explained above under ‘Utilities’) Step I Execute ‘stage 5’ of the costing cycle for Incorporation of allocations received from other locations. Step II A pop up message will ask for restoring the allocations received from other locations before running Stage 5 of the costing Allocations. Execute Ok if the restoration has been done. Otherwise Restore the Allocations and then again come to Stage 5. Stage III Fill all the fields and Save the data.

Allocation is Complete. Stage-6: Physical targets for final activities to work out cost of activities: This stage provides a screen to feed the Physical Targets for final activities Survey, Exploratory Drilling, Development Drilling, Production, Finding Cost, etc and for Intermediate services like Drilling Services, Work over services, etc. for RE and BE. Accordingly, the physical targets data will be used by the system to work out the budgeted per unit cost of activities. COST CENTER: “XXX_XX_XX_XXX”(10 digit) Where, XXX Company Code XXAsset/Basin/Service XXClassification of Service XXXRunning sr. no The following are the different cost centers at ONGC:

Level 1 (Company Code) AMD – Ahmedabad |Level 2 |Level 3 |Level 4 | |(Asset/ Service / Basin) |(Service Details) |(Running sr. no) | |AMD_DS= Drilling Services |AMD_DS_SP= Support |AMD_DS_SP_901= Sr. no | | |AMD_DS= Drilling Services |AMD_DS_CM= Cement |AMD_DS_SP_902= Sr.

No | |AMD_DS= Drilling Services |AMD_DS_MD= Mud |AMD_DS_SP_903= Sr. no | FUND CENTER : ? Fund centre is a group of cost centre. ? Fund centre is formed at service level and each such fund centre includes several cost centre. ? Fund centre is a centre through which any expenditure is funded. The hierarchy of cost distribution is as follow Fund centre is in the following format: “XXX_X_XX_XX” (8 digit) Where, XXXCompany Code XAsset/ Basin/ Service XXClassification of Service XXDepartment The following are the different fund centres at ONGC: Level 1 (Company Code)

AMD – Ahmedabad |Level 2 |Level 3 |Level 4 | |(Asset / Service / Basin) |(Service Details) |(Department Details) | |AMD_A =Asset |AMD_A_ST= Surface Team |AMD_A_ST_AM= Area Manager | |AMD_S = Service Services |AMD_S_DS= Drilling Services |AMD_S_DS_MD= Mud | |AMD_S = Service Serv. AMD_S_DS= Drilling Services |AMD_S_DS_CM= Cementing | |AMD_S = Service |AMD_S_EC= Engineering Serve |AMD_S_EC_WK= Workshop | |AMD_S = Service Stimulation Services |AMD_S_WS= Well Services |AMD_S_WS_WSS= Well | |AMD_S = Service Over |AMD_S_WS= Well Services |AMD_S_WS_WO = Workover | BUDGET UPLOAD IN SAP INTRODUCTION OF SAP SAP stands for “Systemanalyse and Programmentwicklug” – in other words, Systems, Applications and Product in Data processing – a little company started back in 1972, in Mannheim, Germany by three engineers. SAP’s headquarters is in Waldorf, Germany. Their idea was to produce and market standard software for integrated business solutions. It is the need of present and future.

It is something, which will take care of all your future needs to integrated business solutions. SAP has been dedicated to provide SAP users with a better return on information. Over the course of time, SAP evolved from small software to the world’s market leader in business application software. Through its own subsidiaries, branches, or representatives’ offices, it is now present in virtually world’s almost all industrialized markets. More than 6000 leading companies in 50 countries have chosen SAP client/ server business application to manage sophisticated financial, manufacturing, sales & distribution, & human resources functions vital to their livelihood.

SAP offers products for two fundamentally different architectures; R/2 for mainframes & R/3 for client server configurations. The “R” in the names of both systems stands for “real-time processing”. The company launched the R/2 system for mainframe computers. Its client/server R/3 system was launched in 1992. After the approval of RE and BE, the budget needs to be uploaded in the SAP. Since new system called Budgetary Control System (BCS) has been implemented from 1 st Apr’09. The guidelines for uploading budget in SAP (BCS module) are explained below : ? There is a single Tcode “FMBB” for loading budget in BCS. This Tcode can be used for fiscal years 2009 and beyond. It replaces the old Tcodes FR50, FR52, FR53 and FR58.

For changing budget values in fiscal years 2008 and before, old Tcodes FR50, FR52, FR53 and FR58 are to be used. HOW BUDGET IS UPLOADED STEPS Step 1: – Execute T Code FMBB. One can change FM area from dropdown menu, for this one have to goto “extra;change FM area” or press “ctrl+F8” for this step. Step 2a: To load BE Choose process = “Enter”, Budget Category = ‘Payment”, Document Type = “O( Budget entry)” , Fiscal Year = as required.. Say 2009, Budget Type = “BE”, Version = “0”, Document Date = As required .. say current date, Period = All. Then enter Fund centre + Commitment Item + Amount. This information can be paste from an xL worksheet also. Simulate the document (Hot key F7) and then save.

The effect of this us the same as for FR50 transaction available up to fiscal year 2008. Step 2b: To post a return Go to FMBB screen and select the header data in SAP software wingow. The effect of this is the same as for FR53 transaction available upto fiscal year 2008. Step 2c : To post a supplement: Go to FMBB screen and select the header data. The effect of this is the same as for FR52 transaction available upto fiscal year 2008. Step 2d : To post a budget re-appropriation Go to FMBB screen and select the header data as shown below. The effect of this is the same as for FR58 transaction available upto fiscal year 2008. ANNUAL BUDGET ESTIMATES TO HAVE MONTHLY TARGETS To be an effective budgetary control system, we need to provide monthly targets of all the physical plans and the corresponding financial outlays. At the stage of annual budget formulation- at RE and BE, monthly targets would be fixed considering the expected scale and speed of operations, availability of resources (both owned and hired), availability of funds etc. The purpose is two folds- (a) efficient resource planning since monthly breakdown is available which calls for drawing up the daily resource deployment schedule including funds planning also; and (b) Variation analysis while comparing the budgeted activity with actual completed activity and comparison of cost.

This process will trigger the need for timely corrective action to (i) complete the physical activities in time; (ii) initiation/speeding up of cases of procurement of material and services to complete planned activity in time; (iii) Re-appropriation/surrender of budget so that the earmarked resources and funds can be deployed for alterative uses; and (iv) to reduce the cost of activity if the budgeted cost has exceeded. ? Presently, as long as the actual expenditure remains within approved budget the SAP allows funds earmarking/release or creation of liability. With monthly budget utilization and review processes, an authorization process will be defined in SAP where in case the unit cost of activity increases even though the total monthly expenditure is within approved monthly budget, the approval would be required at corporate level. This is desirable to contain the cost of activities so that the budgeted physical activities are performed within the limits of budgeted/agreed unit cost of doing the activity. The monthly utilization would be generated budget activity wise so that budget targets are compared with actual performance. For this purpose, monthly closing of financial accounts would be done at all the locations including closure of all service entry sheets and running of cost cycles. This will also facilitate updating of unit cost. The present system of generating the report of budget utilization on cash basis would be done way and to be replaced by the expenditure on accrual basis. Since the accounts would be closed on monthly basis and location wise accounts consolidated at Corporate accounts level, the budget utilization received from various locations would be reconciled by Corporate Budget from Consol file of CA. Budget utilization for non procurement items like manpower costs and other charges has to be done with the accrual principle in SAP i. e. budget is utilized at the time of incurring expenditure and liability is provided in accounts even though actual payment may not have been made. Accordingly, budget provisions for such items are made commensurate to the expenses which are likely to be incurred in the respective FY. ? During the budget review process, the open PRs and PO would be reviewed in detail and if required the PR/PO not longer required would be closed so that the funds are available for other activities. Budget for Throw Forward Items

Cases of RE where supply orders have been placed advance purchase action has already been initiated during previous year, such cases should be covered through re-appropriation from overall budget of BE. However, re-appropriation may be made between Plan to Plan and Non-Plan to Non-Plan only. The throw forward cases, for which budget has been revalidated through re-appropriation from the budget of BE are to be shown under throw forward column of the budget software. As per process requirement in ICE, all open POs wherein delivery was falling due in current year but could not materialize will automatically be carried forward through central process in the 4th week of April of next year.

All such carry forward of POs will automatically consume the free budget of BE. However, in some of the commitment items where sufficient free budget (unassigned budget) is not available in BE, the available budget in such cases will become negative and system will stop all further processing of cases in respect of such commitment items with negative available budget. Accordingly, all work centers will be required to review such cases and make funds available through transfer from other commitment items wherever funds are available. ? As per system designed in ICE, budget utilization for procurement of materials and services takes place at the stage of LIV/ Down Payment. Unless

LIV is carried out or Do

4g Communication

4G WIRELESS COMMUNICATIONS Anto vinoth. M, Punith Maharishi. Y. R antovinoth. [email protected] com [email protected] com Abstract— Mobile communication is continuously one of the hottest areas that are developing at a booming speed, with advanced techniques emerging in all the fields of mobile and wireless communications. With this rapid development it is expected that fourth generation mobile systems will be launched within decades. 4G mobile systems focus on seamlessly integrating the existing wireless technologies. This contrasts with 3G, which merely focuses on developing new standards and hardware. G systems will support comprehensive and personalized services, providing stable system performance and quality service. “4G” doesn’t just define a standard; it describes an environment where radio access methods will be able to interoperate to provide communications sessions that can seamlessly “hand-off” between them. More than any other technology, 4G will have a profound impact on the entire wireless landscape and the total value chain. This paper focuses on the vision of 4G and briefly explains the technologies and features of 4G.

Introduction: Mobile communications and wireless networks are developing at an astounding speed. The approaching 4G (fourth generation) mobile communication systems are projected to solve still-remaining problems of 3G (third generation) systems and to provide a wide variety of new services, from high-quality voice to high-definition video to high-data-rate wireless channel. 4G can be defined as MAGIC—Mobile multimedia, anytime anywhere, Global mobility support, integrated wireless solution, and customized personal service. G is used broadly to include several types of broadband wireless access communication systems along with cellular telephone systems. The 4G systems not only will support the next generation of mobile service, but also will support the fixed wireless networks. The 4G systems will interoperate with 2G and 3G systems, as well as with digital (broadband) broadcasting systems and IP-based one. The 4G infrastructure consists of a set of various networks using IP (Internet protocol) as a common protocol so that users are in control because they will be able to choose every application and environment. G mobile data transmission rates are planned to be up to 20 megabits per second. Evaluation: • Traditionally, wireless systems were considered as an auxiliary approach that was used in regions where it was difficult to build a connection by wire line. • 1G was based on analogy technique and deployed in the 1980s. It built the basic structure of mobile communications and solved many fundamental problems, e. g. cellular architecture adopting, multiplexing frequency band, roaming across domain, non-interrupted communication in mobile circumstances, etc.

Speech chat was the only service of 1G. • 2G was based on digital signal processing techniques and regarded as a revolution from analogy to digital technology, which has gained tremendous success • during 1990s with GSM as the representative. The utilization of SIM (Subscriber Identity Module) cards and • support capabilities for a large number of users were 2G’s main contributions • 2. 5G extended the 2G with data service and packet switching methods, and it was regarded as 3G services for 2G networks. Under the same networks with 2G, 2. G brought the Internet into mobile personal communications. This was a revolutionary concept leading to hybrid communications. • 3G is deploying a new system offer multimedia transmission, global roaming across a cellular or other single type of wireless network, and bit rates ranging from 384 Kbps to several Mbps. Based on intelligent DSP techniques, various multimedia data communications services are transmitted by convergent 3G networks. 3G still leaves some unsolved problems that it does not concern or concerns only partly. The limitations and difficulties of 3G include: Difficulty in continuously increasing bandwidth and high data rate to meet multimedia services requirements, together with the coexistence of different services needing different QOS (Quality of service) and bandwidth. • Limitation of spectrum and its allocation. • Difficult to roam across distinct service environment in different frequency bands. • Lack of end-to-end seamless transport mechanism spanning a mobile sub-network and a fixed one. However, the demand for higher access speed multimedia communication in today’s society and the limitations of 3G communication service wave the path for 4G mobile communication.

Architecture of 4G: One of the most challenging problems facing deployment of 4G technology is how to access several different mobile and wireless networks. There are three possible architectures for 4G. • Multimode devices • Overlay network • Common access protocol. Multimode devices: This architecture uses a single physical terminal with multiple interfaces to access services on different wireless networks. It may improve call completion and expand effective coverage area. It should also provide reliable wireless coverage in case of network, link, or switch failure. The user, device, or network can initiate handoff between networks.

The device itself incorporates most of the additional complexity without requiring wireless network modification or employing interworking devices. Each network can deploy a database that keeps track of user location, device capabilities, network conditions, and user preferences. The handling of quality-of-service (QOS) issues remains an open research question. Overlay network: In this architecture, a user accesses an overlay network consisting of several universal access points. These UAPs in turn select a wireless network based on availability, QOS (Quality of Service) specifications, and user defined choices.

A UAP performs protocol and frequency translation, content adaptation, and QOS negotiation-renegotiation on behalf of users. The overlay network, rather than the user or device, performs handoffs as the user moves from one UAP to another. A UAP stores user, network, and device information, capabilities, and preferences. Because UAPs can keep track of the various resources a caller uses, this architecture supports single billing and subscription. Common access protocol: This protocol becomes viable if wireless networks can support one or two standard access protocols.

One possible solution, which will require inter working between different networks, uses wireless asynchronous transfer mode. To implement wireless ATM, every wireless network must allow transmission of ATM cells with additional headers or wireless ATM cells requiring changes in the wireless networks. One or more types of satellite-based networks might use one protocol while one or more terrestrial wireless networks use another protocol. 4G mobile technologies: a) Open Wireless Architecture (OWA) b) Spectrum-efficient High-speed wireless mobile transmission a) Open Wireless Architecture (OWA):

A single system architecture characterized by a horizontal communication model providing common platform to complement different access technologies in an optimum way for different service requirements and radio environments is called the converged broadband wireless platform or open wireless architecture (OWA). OWA will be the next storm in wireless communications, fueled by many emerging technologies including digital signal processing, software- definable radio, intelligent antennas, superconductor devices, as well as digital transceivers. The open wireless platform requires: Area and power-efficient broadband signal processing for wideband wireless applications • Highest industry channel density (MOPS pooling) in flexible new BTS signal processing architectures • BTS solutions scalable to higher clock rates and higher network capacity • Waveform-specific processors provides new architecture for platform reuse in terminals for multiservice capability • Terminal solutions achieve highest computational efficiency for application with high flexibility • Powerful layered software architecture using virtual machine programming concept.

Depending on the requirements following Open Wireless Platform Architectures are developed. Adaptive Modulation and Coding (AMC): The principle of AMC is to change the modulation and coding format (transport format) in accordance with instantaneous variations in the channel conditions, subject to system restrictions . AMC extends the systems ability to adapt to good channel conditions. Channel conditions should be estimated based on feedback from the receiver .

For a system with AMC, users close to the cell site are typically assigned higher order modulation with higher code rates. On the other hand, users close to the cell boundary are assigned lower order modulation with lower code rates. AMC allows different data rates to be assigned to different users depending on their channel conditions. Adaptive Hybrid ARQ: A successful broadband wireless system must have an efficient co-designed medium access control (MAC) layer for reliable link performance over the lossy wireless channel.

The corresponding MAC is designed so that the TCP/IP layer sees a high quality link that it expects. This is achieved by an automatic retransmission and fragmentation mechanism (ARQ), wherein the transmitter breaks up packets received from higher layers into smaller sub-packets, which are transmitted sequentially. If a sub-packet is received incorrectly, the transmitter is requested to retransmit it. ARQ can be seen as a mechanism for introducing time-diversity into the system due to its capability to recover from noise, interference, and fades.

Hybrid ARQ self-optimizes and adjusts automatically to channel conditions without requiring frequent or highly accurate C/I measurements: 1) adds redundancy only when needed; 2) receiver saves failed transmission attempts to help future decoding; 3) every transmission helps to increase the packet success probability. . Space-Time Coding and MIMO (Multiple-Input-Multiple-Output): Increasing demand for high performance 4G broadband wireless mobile calls for use of multiple antennas at both base station and subscriber ends.

Multiple antenna technologies enable high capacities suited for Internet and multimedia services and also dramatically increase range and reliability. The challenge for wireless broadband access lies in providing a comparable quality of service for similar cost as competing wireline technologies. The target frequency band for this system is 2 to 5 GHz due to favorable propagation characteristics and low radio-frequency (RF) equipment cost. The broadband channel is typically non-LOS channel and includes impairments such as time-selective fading and frequency-selective fading.

Advantages: ( Spatial diversity and coding gains for large link budget gains (>10 dB). ( It Increases data rates due to multiple transmit and receive antennas. ( It Increases base station-to-user capacity. ( Cost is scalable with performance. Disadvantage: Multiple antennas at the transmitter and receiver provide diversity in a fading environment. By employing multiple antennas, multiple spatial channels are created and it is unlikely all the channels will fade simultaneously. OFDM (Orthogonal Frequency Division Multiplexing):

OFDM is chosen over a single carrier solution due to lower complexity of equalizers for high delay spread channels or high data rates. A broadband signal is broken down into multiple narrowband carriers (tones), where each carrier is more robust to multi path. In order to maintain orthogonality amongst tones, a cyclic prefix is added which has length greater than the expected delay spread. With proper coding and interleaving across frequencies, multi path turns into an OFDM system advantage by yielding frequency diversity.

OFDM can be implemented efficiently by using FFT’s at the transmitter and receiver. At the receiver, FFT reduces the channel response into a multiplicative constant on a tone-by-tone basis. Advantage: ( Frequency selectivity caused by multipath improves the rank distribution of the channel matrices across frequency tones, thereby increasing capacity. Open Backbone Network Access Platform: In recent years, access aggregation technologies have been developed that allow a common access and transport network to bear the traffic of subscribers from multiple service providers.

Separating access and transport from service accomplishes two points: • It eliminates the burden of building out an access network, reducing the barrier to entry for new service providers and improving the growth potential for existing service providers. • It promotes technical and business efficiencies for access and transport enterprises due to economies of scale and the ability to resell that access infrastructure to multiple service providers. New systems provide end-to-end direct IP connections for users by extending access aggregation architectures to mobile broadband access.

Network and service providers can leverage existing equipment, tool and content bases to support mobile broadband end users, while the end users experience the best of the wireless and wired worlds. Wireless mobile Internet: Will be the key application of converged broadband wireless system. The terminal will be very smart instead of dumb, compatible with mobile and access services including wireless multicasting as well as wireless trunking. This new wireless terminal will have the following features: • 90 percent of traffic will be data. • The security function will be enhanced (e. g. fingerprint chip embedded). • A voice recognition function will be enhanced; keypad or keyboard attachment will be an option, as will wireless ness. • The terminal will support single and multiple users with various service options. • The terminal will be fully adaptive and software- reconfigurable. b) Spectrum-efficient High-speed wireless mobile transmission: Wide-area wireless broadband systems spectral efficiency can yield a system capacity that allows that experience to be delivered simultaneously to many users in a cell, reducing the cost of service delivery for this mass-market broadband service.

These systems are optimized to exploit the full potential of adaptive antenna signal processing, thereby providing robust, high-speed connections for mobile users with a minimum of radio infrastructure The spectral efficiency of a radio system ( the quantity of billable services that can be delivered in a unit of spectrum ( directly impacts network economics and service quality.

Spectrally efficient systems have the following characteristics: • Reduced spectrum requirements, minimizing up-front capital expenses related to spectrum • Reduced infrastructure requirements, minimizing capital and operating costs associated with base station sites, translating into reduced costs per subscriber and per covered population element • High capacity, maximizing the system throughput and end-user experience even under load The acquisition of spectrum is a key component of the cost structure of wireless systems, and two key features of spectrum have great impact on that cost ( the spectral efficiency of the wireless system and the type of spectrum required to implement the system. A fully capable and commercially viable mobile broadband system can operate in as little as 5 MHz of unpaired spectrum with a total of 20 Mbps throughput per cell in that amount of spectrum. Spectral efficiency measures the ability of a wireless system to deliver information, “billable services,” with a given amount of radio spectrum. In cellular radio systems, spectral efficiency is measured in bits/second/Hertz/cell (bps/Hz/cell).

Factors contribute to the spectral efficiency of a system: • Modulation formats • Air interface overhead (signaling information other than user data) • Multiple access method • Usage model. The quantities just mentioned all contribute to the bits/second/Hertz dimensions of the unit. The appearance of a “per cell” dimension may seem surprising, but the throughput of a particular cell’s base station in a cellular network is almost always substantially less than that of a single cell in isolation. The reason is self-interference generated in the network, requiring the operator to allocate frequencies in blocks that are separated in space by one or more cells.

Open Distributed Ad-Hoc Wireless Networks: Low-powered, ad-hoc mesh architect networks offer spectrally efficient high performance solutions. In such peer-to-peer networks, end-user wireless handsets act as both end terminals and secure wireless routers that are part of the overall network infrastructure. Upstream and downstream transmission “hop” through subscriber handsets and fixed wireless routers to reach network access points or other end terminals. Routing infrastructure, including handsets, utilize intelligent routing capabilities to determine “best path” for each transmission. Routing for “best path” must be defined for “least power”.

That is, network nodes must be able to calculate and update routing tables to send data packets through the paths with minimal power requirements. Therefore, subscriber terminals do not “shout” at a centralized base station, but rather whisper to a near-by terminal that routes the transmission to its destination. Therefore subscriber terminals cooperate, instead of compete for spectrum. Spectrum reuse increases dramatically, while overall battery consumption and RF output within a community of subscribers is reduced. Thus, while the cellular handset can only maintain a 144kbs (for example) link to the base station, the ad hoc mesh device can maintain a multi-megabit link without undue interference. Gbps Packet Transmission: In 4G data networks are packets switched networks and achieved 1Gbps real-time packet transmission in the downlink at the moving speed of about 20km/h in a field experiment on fourth-generation (4G) radio access. The 1Gbps real-time packet transmission was realized through Variable Spreading Factor-Spread Orthogonal Frequency Division Multiplexing (VSF-Spread OFDM) radio access and 4-by-4 Multiple-Input-Multiple-Output (MIMO) multiplexing using “adaptive selection of surviving symbol replica candidate” (ASESS) based on Maximum Likelihood Detection with QR decomposition and the M-algorithm (QRM-MLD), which was developed by DoCoMo.

Frequency spectrum efficiency, which is expressed as information bits per second per Hertz, is 10 bits per second per Hertz, about 20 times that of 3G radio networks’ spectrum efficiency. 4G Features: • High usability: anytime, anywhere, and with any technology. 4G networks are all-IP based heterogeneous networks that allow users to use any system at any time and anywhere. • Support for multimedia services at low transmission cost. To support multimedia services, • High-data-rate services with good system reliability will be provided. At the same time, a • Low per-bit transmission cost will be maintained • Personalization • Integrated services • Entirely packet switched networks. • All network elements are digital. • Higher bandwidth Tight network security. • Providing a technological response to accelerated growth in demand for broadband • Wireless connectivity • Ensuring seamless services provisioning across a multitude of wireless systems and • Networks, from private to public, from indoor to wide area. • Providing optimum delivery of the user’s wanted service via the most appropriate • Network available • Coping with the expected growth in Internet based communications • Opening new spectrum frontiers • 4G networks expected to support real-time multimedia services that are highly time- sensitive Future of 4G: “The future of wireless is not just wireless; it is a part of life. The future offers faster speeds and larger bandwidth. It is suggested that 4G technologies will allow 3D virtual reality and interactive video / hologram images. The technology could also increase interaction between compatible technologies, so that the smart card in the handset could automatically pay for goods in passing a linked payment kiosk (i-mode can already boast this capability) or will tell your car to warm up in the morning, because your phone has noted you have left the house or have set the alarm. 4G is expected to provide high-resolution images (better quality than TV images) and video-links (all of these will require a band width of about 100MHz).

It is likely that the forecasts of the next ‘Killer Apps’ for 4G technology will change as customer demand develops over time. Conclusion: Low cost high speed data will drive forward the fourth generation (4G) as short-range communication emerges. Service and application ubiquity, with a high degree of personalization and synchronization between various user appliances, will be another driver. It is probable that the radio access network will evolve from a centralized architecture to a distributed one. . 4G is likely to enable the download of full length songs or music pieces which may change the market response dramatically. We hope that future generations of wireless networks will provide virtually unlimited opportunities to the global, connected community.

Innovations in network technology Will provide an environment in which virtually anything is available, anywhere, at any time, via any connected device. REFERENCES • T. Zahariadis, and D. Kazakos, “(R)Evolution Toward 4G Mobile Communication Systems,” IEEE Wireless Communications, Volume 10, Issue 4, August 2003. • E. Gustafsson and A. Jonsson, “Always Best Connected,” IEEE Wireless Communications, pp. 49-55, Feb. 2003. • J. Ibrahim, “4G Features,” Bechtel Telecommunications Technical Journal, Volume 1, No. 1, pp. 11-14, Dec. 2002. • W. W. Lu, R. Berezdivin, (Guest Editors) “Technologies on Fourth Generation Mobile Communications,”IEEE Wireless Communications, vol. 9, no. 2, pp. 8-71, Apr. 2002. A Walk in the Clouds Cloud Computing Saiprasad. R.

Bejgam Nitin Kumar Shinde Dept of Computer science, Sir MVIT, Bangalore, India [email protected] com [email protected] com Abstract Cloud computing promises to increase the velocity with which applications are deployed, increase innovation, and lower costs, all while increasing business agility. The inclusive view of cloud computing that allows it to support every facet, including the server, storage, network, and virtualization technology that drives cloud computing environments to the software that runs in virtual appliances that can be used to assemble applications in minimal time. This white paper discusses how cloud computing ransforms the way we design, build, and deliver applications, and the architectural considerations that enterprises must make when adopting and using cloud computing technology. Keywords- API- Application programming Interface, FTP-File transfer protocol, GPS- Global Positioning Service, Virtualization. Introduction Everyone has an opinion on what is cloud computing. It can be the ability to rent a server or a thousand servers and run a geophysical modeling application on the most powerful systems available anywhere. It can be the ability to rent a virtual server, load software on it, turn it on and off at will, or clone it ten times to meet a sudden workload demand. It can be storing and securing immense amounts of data that is accessible only by authorized applications and users.

It can be supported by a cloud provider that sets up a platform that includes the OS, with the ability to scale automatically in response to changing workloads. Cloud computing can be the ability to use applications on the Internet that store and protect data while providing a service — anything including email, sales force automation and tax preparation. It can be using a storage cloud to hold application, business, and personal data. And it can be the ability to use a handful of Web services to integrate photos, maps, and GPS information to create a mash up in customer Web browsers. There is an inclusive view that there are many different types of clouds, and many different applications that can be built using them.

To the extent that cloud computing helps to increase the velocity at which applications are deployed, helping to increase the pace of innovation, cloud computing may yet take forms that we still cannot imagine today. As we know about the phrase “The Network is the Computer,” we believe that cloud computing is the next generation of network computing. What distinguishes cloud computing from previous models? Boiled down to a phrase, it’s using information technology as a service over the network. We define it as services that are encapsulated, have an API, and are available over the network. This definition encompasses using both compute and storage resources as services.

Cloud computing is based on the principle of efficiency above all — efficiency that produces high-level tools for handling 80% of use cases so that applications can be created and deployed at an astonishing rate. Cloud computing can be provided using an enterprise datacenter’s own servers, or it can be provided by a cloud provider that takes all of the capital risk of owning the infrastructure. The illusion is that resources are infinite. While the field is in its infancy, the model is taking the information technology (IT) world by storm. The predominant model for cloud computing today is called infrastructure as a service, or IaaS, and because of its prominence, the IaaS model is the focus of this paper.

This paper discusses the nature of cloud computing and how it builds on established trends while transforming the way that enterprises everywhere to build and deploy applications. It proceeds to discuss the architectural considerations that cloud architects must make when designing cloud-based applications The Nature of Cloud Computing Building on established trends Cloud computing builds on established trends for driving the cost out of the delivery of services while increasing the speed and agility with which services are deployed. It shortens the time from sketching out application architecture to actual deployment. Cloud computing incorporates virtualization, on-demand deployment, Internet delivery of services, and open source software.

From one perspective, cloud computing is nothing new because it uses approaches, concepts, and best practices that have already been established. From another perspective, everything is new because cloud computing changes how we invent, develop, deploy, scale, update, maintain, and pay for applications and the infrastructure on which they run. Virtual machines as the standard deployment object Over the last several years, virtual machines have become a standard deployment object. Virtualization further enhances flexibility because it abstracts the hardware to the point where software stacks can be deployed and redeployed without being tied to a specific physical server.

Virtualization enables a dynamic datacenter where servers provide a pool of resources that are harnessed as needed, and where the relationship of applications to compute, storage, and network resources changes dynamically in order to meet both workload and business demands. With application deployment decoupled from server deployment, applications can be deployed and scaled rapidly, without having to first procure physical servers. Virtual machines have become the prevalent abstraction — and unit of deployment — because they are the least-common denominator interface between service providers and developers. Using virtual machines as deployment objects is sufficient for 80 percent of usage, and it helps to satisfy the need to rapidly deploy and scale applications.

Virtual appliances, virtual machines that include software that is partially or fully configured to perform a specific task such as a Web or database server, further enhance the ability to create and deploy applications rapidly. The combination of virtual machines and appliances as standard deployment objects is one of the key features of cloud computing. Compute clouds are usually complemented by storage clouds that provide virtualized storage through APIs that facilitate storing virtual machine images, source files for components such as Web servers, application state data, and general business data. The on-demand, self-service, pay-by-use model The on-demand, self-service, pay-by-use nature of cloud computing is also an extension of established trends.

From an enterprise perspective, the on-demand nature of cloud computing helps to support the performance and capacity aspects of service-level objectives. The self-service nature of cloud computing allows organizations to create elastic environments that expand and contract based on the workload and target performance parameters. And the pay-by-use nature of cloud computing may take the form of equipment leases that guarantee a minimum level of service from a cloud provider. Virtualization is a key feature of this model. IT organizations have understood for years that virtualization allows them to quickly and easily create copies of existing environments —sometimes involving multiple virtual machines — to support test, development, and staging activities.

The cost of these environments is minimal because they can coexist on the same servers as production environments because they use few resources. Likewise, new applications can be developed and deployed in new virtual machines on existing servers, opened up for use on the Internet, and scaled if the application is successful in the marketplace. This lightweight deployment model has already led to a “Darwinist” approach to business development where beta versions of software are made public and the market decides which applications deserve to be scaled and developed further or quietly retired. Cloud computing extends this trend through automation.

Instead of negotiating with an IT organization for resources on which to deploy an application, a compute cloud is a self-service proposition where a credit card can purchase compute cycles, and a Web interface or API is used to create virtual machines and establish network relationships between them. Instead of requiring a long-term contract for services with an IT organization or a service provider, clouds work on a pay-by-use, or pay by- the-sip model where an application may exist to run a job for a few minutes or hours, or it may exist to provide services to customers on a long-term basis. Compute clouds are built as if applications are temporary, and billing is based on resource consumption: CPU hours used, volumes of data moved, or gigabytes of data stored.

The ability to use and pay for only the resources used shifts the risk of how much infrastructure to purchase from the organization developing the application to the cloud provider. It also shifts the responsibility for architectural decisions from application architects to developers. This shift can increase risk, risk that must be managed by enterprises that have processes in place for a reason, and of system, network, and storage architects that needs to factor in to cloud computing designs. Consider this analogy: historically, developer writing software using the Java programming language determines when it’s appropriate to create new threads to allow multiple activities to progress in parallel.

Today, a developer can discover and attach to a service with the same ease, allowing them to scale an application to the point where it might engage thousands of virtual machines in order to accommodate a huge spike in demand. The ability to program application architecture dynamically puts enormous power in the hands of developers with a commensurate amount of responsibility. To use cloud computing most effectively, a developer must also be an architect, and that architect needs to be able to create a self-monitoring and self-expanding application. The developer/architect needs to understand when it’s appropriate to create a new thread versus create a new virtual machine, along with the architectural patterns for how they are interconnected. When this power is well understood and harnessed, the results can be spectacular.

Even large corporations can use cloud computing in ways that solve significant problems in less time and at a lower cost than with traditional enterprise computing. Services are delivered over the network It almost goes without saying that cloud computing extends the existing trend of making services available over the network. Virtually every business organization has recognized the value of Web-based interfaces to their applications, whether they are made available to customers over the Internet, or whether they are internal applications that are made available to authorized employees, partners, suppliers, and consultants. The beauty of Internet-based service delivery, of course, is that applications can be made available anywhere, and at any time.

While enterprises are well aware of the ability to secure communications using Secure Socket Layer (SSL) encryption along with strong authentication, bootstrapping trust in a cloud computing environment requires carefully considering the differences between enterprise computing and cloud computing. When properly architected, Internet service delivery can provide the flexibility and security required by enterprises of all sizes. Cloud computing infrastructure models There are many considerations for cloud computing architects to make when moving from a standard enterprise application deployment model to one based on cloud computing. There are public and private clouds that offer complementary benefits, there are three basic service models to consider, and there is the value of open APIs versus proprietary ones. Public, private, and hybrid clouds

IT organizations can choose to deploy applications on public, private, or hybrid clouds, each of which has its trade-offs. The terms public, private, and hybrid do not dictate location. While public clouds are typically “out there” on the Internet and private clouds are typically located on premises, a private cloud might be hosted at a collocation facility as well. Companies may make a number of considerations with regard to which cloud computing model they choose to employ, and they might use more than one model to solve different problems. An application needed on a temporary basis might be best suited for deployment in a public cloud because it helps to avoid the need to purchase additional equipment to solve a temporary need.

Likewise, a permanent application, or one that has specific requirements on quality of service or location of data, might best be deployed in a private or hybrid cloud. Architectural layers of cloud computing Software as a service (SaaS) Software as a service features a complete application offered as a service on demand. A single instance of the software runs on the cloud and services multiple end users or client organizations. The most widely known example of SaaS is salesforce. com, though many other examples have come to market, including the Google Apps offering of basic business services including email and word processing. Platform as a service (PaaS)

Platform as a service encapsulates a layer of software and provides it as a service that can be used to build higher-level services. There are at least two perspectives on PaaS depending on the perspective of the producer or consumer of the services: • Someone producing PaaS might produce a platform by integrating an OS, middleware, application software, and even a development environment that is then provided to a customer as a service. • Someone using PaaS would see an encapsulated service that is presented to them through an API. The customer interacts with the platform through the API, and the platform does what is necessary to manage and scale itself to provide a given level of service. Virtual appliances can be classified as instances of PaaS.

A content switch appliance, for example, would have all of its component software hidden from the customer, and only an API or GUI for configuring and deploying the service provided to them. Infrastructure as a service (IaaS) Infrastructure as a service delivers basic storage and compute capabilities as standardized services over the network. Servers, storage systems, switches, routers, and other systems are pooled and made available to handle workloads that range from application components to high-performance computing applications. Commercial examples of IaaS include Joyent, whose main product is a line of virtualized servers that provide a highly available on-demand infrastructure. Cloud application programming interfaces

One of the key characteristics that distinguish cloud computing from standard enterprise computing is that the infrastructure itself is programmable. Instead of physically deploying servers, storage, and network resources to support applications, developers specify how the same virtual components are configured and interconnected, including how virtual machine images and application data are stored and retrieved from a storage cloud. They specify how and when components are deployed through an API that is specified by the cloud provider. An analogy is the way in which File Transfer Protocol (FTP) works: FTP servers maintain a control connection with the client that is kept open for the duration of the session.

When files are to be transferred, the control connection is used to provide a source or destination file name to the server, and to negotiate a source and destination port for the file transfer itself. In a sense, a cloud computing API is like an FTP control channel: it is open for the duration of the cloud’s use, and it controls how the cloud is harnessed to provide the end services envisioned by the developer. The use of APIs to control how cloud infrastructure is harnessed has a pitfall: unlike the FTP protocol, cloud APIs are not yet standardized, so each cloud provider has its own specific APIs for managing its services. This is the typical state of an industry in its infancy, where each vendor has its own proprietary technology that tends to lock in customers to their services ecause proprietary APIs make it difficult to change providers. Look for providers that use standard APIs wherever possible. Standard APIs can be used today for access to storage; APIs for deploying and scaling applications are likely to be standardized over time. Also look for cloud providers that understand their own market and provide, for example, ways to archive and deploy libraries of virtual machine images and preconfigured appliances. Cloud computing benefits In order to benefit the most from cloud computing, developers must be able to refactor their applications so that they can best use the architectural and deployment paradigms that cloud computing supports.

The benefits of deploying applications using cloud computing include reducing run time and response time, minimizing the risk of deploying physical infrastructure, lowering the cost of entry, and increasing the pace of innovation. Reduce run time and response time For applications that use the cloud essentially for running batch jobs, cloud computing makes it straightforward to use 1000 servers to accomplish a task in 1/1000 the time that a single server would require. For applications that need to offer good response time to their customers, refactoring applications so that any CPU-intensive tasks are farmed out to ‘worker’ virtual machines can help to optimize response time while scaling on demand to meet customer demands.

The Animoto application is a good example of how the cloud can be used to scale applications and maintain quality of service levels. Minimize infrastructure risk IT organizations can use the cloud to reduce the risk inherent in purchasing physical servers. Will a new application be successful? If so, how many servers are needed and can they be deployed as quickly as the workload increases? If not, will a large investment in servers go to waste? If the application’s success is short-lived, will the IT organization invest in a large amount of infrastructure that is idle most of the time? When pushing an application out to the cloud, scalability and the risk of purchasing too much or too little infrastructure becomes the cloud provider’s issue.

In a growing number of cases, the cloud provider has such a massive amount of infrastructure that it can absorb the growth and workload spikes of individual customers, reducing the financial risk they face. Another way in which cloud computing minimizes infrastructure risk is by enabling surge computing, where an enterprise datacenter (perhaps one that implements a private cloud) augments its ability to handle workload spikes by a design that allows it to send overflow work to a public cloud. Application lifecycle management can be handled better in an environment where resources are no longer scarce, and where resources can be better matched to immediate needs, and at lower cost. Lower cost of entry

There are a number of attributes of cloud computing that help to reduce the cost to enter new markets: • Because infrastructure is rented, not purchased, the cost is controlled, and the capital investment can be zero. In addition to the lower costs of purchasing compute cycles and storage “by the sip,” the massive scale of cloud providers helps to minimize cost, helping to further reduce the cost of entry. • Applications are developed more by assembly than programming. This rapid application development is the norm, helping to reduce the time to market, potentially giving organizations deploying applications in a cloud environment a head start against the competition. Increased pace of innovation

Cloud computing can help to increase the pace of innovation. The low cost of entry to new markets helps to level the playing field, allowing start-up companies to deploy new products quickly and at low cost. This allows small companies to compete more effectively with traditional organizations whose deployment process in enterprise datacenters can be significantly longer. Increased competition helps to increase the pace of innovation — and with many innovations being realized through the use of open source software, the entire industry serves to benefit from the increased pace of innovation that cloud computing promotes. The Future of Cloud Computing

The future for cloud computing is bright. The big names in computers are throwing lots of resources into this. Dell sees a huge market for cloud computing in the future years. HP, Intel and more are throwing resources into this, and it looks like cloud computing might be the next big thing after UMPCs. Networks aren’t ready for mass roll out yet, and connection speeds aren’t yet up to handling this much data. But even Amazon sees a bright future in cloud computing. They have recently released a beta program called Amazon Web Services. The whole idea behind it is resizable computing power. When you need the power, it’s there, but when you don’t, you can scale back.

The bang for the buck with the Amazon program is the highest; it is almost a pay-as-you-go plan for computing cycles. Conclusion Cloud computing is the next big wave in computing. It has many benefits, such as better hardware management, since all the computers are the same and run the same hardware. It also provides for better and easier management of data security, since all the data is located on a central server, so administrators can control who has and doesn’t have access to the files. There are some down sides as well to cloud computing. Peripherals such as printers or scanners might have issues dealing with the fact that there is no hard drive attached to the physical, local machine.

If there are machines a user uses at work that aren’t their own for any reason, that require access to particular drivers or programs, it is still a struggle to get this application to know that it should be available to the user. If you’re looking to implement this, you have two options. You can host it all within your network, or you can use a device from a company that provides the server storage. I hope you have learned a lot about cloud computing and the bright future it has in the coming years. References 1] http://en. wikipedia. org/wiki/Cloud_computing 2] http://aws. amazon. com/ec2/ 3] http://www. smallbusinesscomputing. com/biztools/article. php/3809726 4] http://www. pcworld. om/businesscenter/article/149892/google_apps_admins_jittery_about_gmail_hopeful_about_future. html ARTIFICIAL INTELLIGENCE RAVI KR. SINHA RUPSHI [email protected] com [email protected] com Abstract Artificial intelligence research has foundered on the issue of representation. When intelligence is approached in an incremental manner, with strict reliance on interfacing to the real world through perception and action, reliance on representation disappears. In this paper we outline our approach to incrementally building complete intelligent Creatures. The fundamental decomposition of the intelligent system is not into independent information processing units which must interface with each other via representations.

Instead, the intelligent system is decomposed into independent and parallel activity producers which all interface directly to the world through perception and action, rather than interface to each other particularly much. The notions of central and peripheral systems evaporate everything is both central and peripheral. Based on these principles we have built a very successful series of mobile robots which operate without supervision as Creatures instandard office environments. INTRODUCTION Artificial Intelligence is concerned with the design of intelligence in an artificial device. The term was coined by McCarthy in 1956. There are two ideas in the definition. 1. Intelligence 2. artificial device What is intelligence?

Is it that which characterize humans? Or is there an absolute standard of judgement? Accordingly there are two possibilities: – A system with intelligence is expected to behave as intelligently as a human – A system with intelligence is expected to behave in the best possible manner – Secondly what type of behavior are we talking about? – Are we looking at the thought process or reasoning ability of the system? – Or are we only interested in the final manifestations of the system in terms of its actions? Given this scenario different interpretations have been used by different researchers as defining the scope and view of Artificial Intelligence. 1.

One view is that artificial intelligence is about designing systems that are as intelligent as humans. This view involves trying to understand human thought and an effort to build machines that emulate the human thought process. This view is the cognitive science approach to AI. 2. The second approach is best embodied by the concept of the Turing Test. Turing held that in future computers can be programmed to acquire abilities rivaling human intelligence. As part of his argument Turing put forward the idea of an ‘imitation game’, in which a human being and a computer would be interrogated under conditions where the interrogator would not know which was which, the communication being entirely by textual messages.

Turing argued that if the interrogator could not distinguish them by questioning, then it would be unreasonable not to call the computer intelligent. Turing’s ‘imitation game’ is now usually called ‘the Turing test’ for intelligence. Turing Test Consider the following setting. There are two rooms, A and B. One of the rooms contains a computer. The other contains a human. The interrogator is outside and does not know which one is a computer. He can ask questions through a teletype and receives answers from both A and B. The interrogator needs to identify whether A or B are humans. To pass the Turing test, the machine has to fool the interrogator into believing that it is human. For more details on the Turing test visit the site http://cogsci. ucsd. edu/~asaygin/tt/ttest. html 3.

Logic and laws of thought deals with studies of ideal or rational thought process and inference. The emphasis in this case is on the inferencing mechanism, and its properties. That is how the system arrives at a conclusion, or the reasoning behind its selection of actions is very important in this point of view. The soundness and completeness of the inference mechanisms are important here. 4. The fourth view of AI is that it is the study of rational agents. This view deals with building machines that act rationally. The focus is on how the system acts and performs, and not so much on the reasoning process. A rational agent is one that acts rationally, that is, is in the best possible manner. Typical AI problems

While studying the typical range of tasks that we might expect an “intelligent entity” to perform, we need to consider both “common-place” tasks as well as expert tasks. Examples of common-place tasks include – Recognizing people, objects. – Communicating (through natural language). – Navigating around obstacles on the streets These tasks are done matter of factly and routinely by people and some other animals. Expert tasks include: • Medical diagnosis. • Mathematical problem solving • Playing games like chess These tasks cannot be done by all people, and can only be performed by skilled specialists. Now, which of these tasks are easy and which ones are hard?

Clearly tasks of the first type are easy for humans to perform, and almost all are able to master them. The second range of tasks requires skill development and/or intelligence and only some specialists can perform them well. However, when we look at what computer systems have been able to achieve to date, we see that their achievements include performing sophisticated tasks like medical diagnosis, performing symbolic integration, proving theorems and playing chess. On the other hand it has proved to be very hard to make computer systems perform many routine tasks that all humans and a lot of animals can do. Examples of such tasks include navigating our way without running into things, catching prey and avoiding predators.

Humans and animals are also capable of interpreting complex sensory information. We are able to recognize objects and people from the visual image that we receive. We are also able to perform complex social functions. Approaches to AI Strong AI aims to build machines that can truly reason and solve problems. These machines should be self aware and their overall intellectual ability needs to be indistinguishable from that of a human being. Excessive optimism in the 1950s and 1960s concerning strong AI has given way to an appreciation of the extreme difficulty of the problem. Strong AI maintains that suitably programmed machines are capable of cognitive mental states.

Weak AI: deals with the creation of some form of computer-based artificial intelligence that cannot truly reason and solve problems, but can act as if it were intelligent. Weak AI holds that suitably programmed machines can simulate human cognition. Applied AI: aims to produce commercially viable “smart” systems such as, for example, a security system that is able to recognise the faces of people who are permitted to enter a particular building. Applied AI has already enjoyed considerable success. Cognitive AI: computers are used to test theories about how the human mind works–for example, theories about how we recognise faces and other objects, or about how we solve abstract problems. Limits of AI Today

Today’s successful AI systems operate in well-defined domains and employ narrow, specialized knowledge. Common sense knowledge is needed to function in complex, open-ended worlds. Such a system also needs to understand unconstrained natural language. However these capabilities are not yet fully present in today’s intelligent systems. What can AI systems do Today’s AI systems have been able to achieve limited success in some of these tasks. • In Computer vision, the systems are capable of face recognition • In Robotics, we have been able to make vehicles that are mostly autonomous. • In Natural language processing, we have systems that are capable of simple machine translation. Today’s Expert systems can carry out medical diagnosis in a narrow domain • Speech understanding systems are capable of recognizing several thousand words continuous speech • Planning and scheduling systems had been employed in scheduling experiments with the Hubble Telescope. • The Learning systems are capable of doing text categorization into about a 1000 topics • In Games, AI systems can play at the Grand Master level in chess (world champion), checkers, etc. Intelligent behaviour This discussion brings us back to the question of what constitutes intelligent behaviour. Some of these tasks and applications are: • Perception involving image recognition and computer vision • Reasoning • Learning Understanding language involving natural language processing, speech processing • Solving problems • Robotics Practical Impact of AI AI components are embedded in numerous devices e. g. in copy machines for automatic correction of operation for copy quality improvement. AI systems are in everyday use for identifying credit card fraud, for advising doctors, for recognizing speech and in helping complex planning tasks. Then there are intelligent tutoring systems that provide students with personalized attention. Thus AI has increased understanding of the nature of intelligence and found many applications. It has helped in the understanding of human reasoning, and of the nature of intelligence.

It has also helped us understand the complexity of modeling human reasoning. We will now look at a few famous AI system. 1. ALVINN: Autonomous Land Vehicle In a Neural Network In 1989, Dean Pomerleau at CMU created ALVINN. This is a system which learns to control vehicles by watching a person drive. It contains a neural network whose input is a 30×32 unit two dimensional camera image. The output layer is a representation of the direction the vehicle should travel. The system drove a car from the East Coast of USA to the west coast, a total of about 2850 miles. Out of this about 50 miles were driven by a human, and the rest solely by the system. 2. Deep Blue

In 1997, the Deep Blue chess program created by IBM, beat the current world chess champion, Gary Kasparov. 3. Machine translation A system capable of translations between people speaking different languages will be a remarkable achievement of enormous economic and cultural benefit. Machine translation is one of the important fields of endeavour in AI. While some translating systems have been developed, there is a lot of scope for improvement in translation quality. 4. Autonomous agents In space exploration, robotic space probes autonomously monitor their surroundings, make decisions and act to achieve their goals. NASA’s Mars rovers successfully completed their primary three-month missions in April, 2004.

The Spirit rover had been exploring a range of Martian hills that took two months to reach. It is finding curiously eroded rocks that may be new pieces to the puzzle of the region’s past. Spirit’s twin, Opportunity, had been examining exposed rock layers inside a crater. 5. Internet agents The explosive growth of the internet has also led to growing interest in internet agents to monitor users’ tasks, seek needed information, and to learn which information is most useful What can AI systems NOT do yet? • Understand natural language robustly (e. g. , read and understand articles in a newspaper) • Surf the web • Interpret an arbitrary visual scene Learn a natural language • Construct plans in dynamic real-time domains • Exhibit true autonomy and intelligence AI History Intellectual roots of AI date back to the early studies of the nature of knowledge and reasoning. The dream of making a computer imitate humans also has a very early history. The concept of intelligent machines is found in Greek mythology. There is a story in the 8th century A. D about Pygmalion Olio, the legendary king of Cyprus. He fell in love with an ivory statue he made to represent his ideal woman. The king prayed to the goddess Aphrodite, and the goddess miraculously brought the statue to life. Other myths involve human-like artifacts.

As a present from Zeus to Europa, Hephaestus created Talos, a huge robot. Talos was made of bronze and his duty was to patrol the beaches of Crete. Aristotle (384-322 BC) developed an informal system of syllogistic logic, which is the basis of the first formal deductive reasoning system. Early in the 17th century, Descartes proposed that bodies of animals are nothing more than complex machines. Pascal in 1642 made the first mechanical digital calculating machine. In the 19th century, George Boole developed a binary algebra representing (some) “laws of thought. ” Charles Babbage & Ada Byron worked on programmable mechanical calculating machines.

In the late 19th century and early 20th century, mathematical philosophers like Gottlob Frege, Bertram Russell, Alfred North Whitehead, and Kurt Godel built on Boole’s initial logic concepts to develop mathematical representations of logic problems. The advent of electronic computers provided a revolutionary advance in the ability to study intelligence. In 1943 McCulloch & Pitts developed a Boolean circuit model of brain. They wrote the paper “A Logical Calculus of Ideas Immanent in Nervous Activity”, which explained how it is possible for neural networks to compute. The 1990’s saw major advances in all areas of AI including the following: • machine learning, data mining • intelligent tutoring, • case-based reasoning, • multi-agent planning, scheduling, • uncertain reasoning, • natural language understanding and translation, • vision, virtual reality, games, and other topics.

References Artificial Intelligence A Modern Approach – — Stuart Russell and Peter Norvig Principles of Artificial Intelligence — N J Nilsson An Architecture for Exporting Environment Awareness to Mobile Computing Applications soumyashreev. v & vijayalakshmi. g Abstract In mobile computing, factors such as add-on hardware components and heterogeneous networks result in an environment of changing resource constraints. An application in such a constrained environment must adapt to these changes so that available resources are properly utilized. We propose an architecture for exporting awareness of the mobile computing environment to an application.

In this architecture, a change in the environment is modeled as an asynchronous event that includes information related to the change. Events are typed and are organized as an extensible class hierarchy so that they can be handled at different levels of abstraction according to the requirement of each application. We also compare two approaches to structure an adaptive application. One addresses the problem of incorporating adaptiveness into legacy applications, while the other considers the design of an application with adaptiveness in mind. Index Terms—Mobile computing, resource constraints, environment awareness, adaptive application architectures, event delivery framework. 1 INTRODUCTION MOBILE computing is associated with an environment of constrained resources.

Although these constraints are becoming less noticeable, the portability of a mobile computer will always induce constraints, when compared to nonmobile computers. For instance, battery powered mobile computers will always face power constraints relative to their fixed counterparts. Since current technology [1] also allows hardware components to be added or removed while a mobile computer is still powered on, an element of dynamicity is introduced to the constrained mobile computing environment. In such an environment, the system must adapt to appropriately utilize available resources. A mobile computing system must also deal with dynamic network connectivity caused by heterogeneous network technologies.

For example, fast connectivity of wired networks or wireless networks such as WaveLAN [2] may be available indoors, while slower cellular or CDPD [3] connectivity may be available outdoors. Although network and transport protocols for mobile hosts [4], [5] can transparently maintain network connectivity across these technologies, they are mostly tuned to adapt and recover from transient changes in network conditions. These protocols are inadequate to handle the long-term changes in network parameters that characterize connections to a mobile host. A robust mobile computing system must complement these protocols by adapting to long-term network changes and periods of temporary disconnection. In current systems, resources are managed almost exclusively by the underlying operating system.

This is justified because resources are shared among competing applications belonging to different users. Since changes in resource availability are uncommon, system resource management is usually a simple call-admission process. After acquiring a resource, an application assumes its availability until the resource is no longer required. Any spurious unavailability of the resource is exported to the application as a failure, similar to that caused by a failed call-admission. Furthermore, an acquired resource is never explicitly revoked by the operating system. The application therefore requires little built-in adaptation, being effectively unaware of changes to resource availability.

A mobile computer, however, is typically dedicated to a single user, who owns all applications in the system. The user of such a computer usually focuses on a few applications, implicitly defining a priority amongst them. Although resource allocation can be left to the operating system, we believe that better utilization is possible if mobile computing applications participate. An application can contribute to system resource allocation by conservatively utilizing resources according to both, their availability, and the implicit priority of the application as defined by the user. For instance, on a low-on-battery condition, an application can disable a graphical user interface, preferring a text based one.

This change of user interface may consume less processing power, allowing the processor to operate in a low-power mode. The application has implicitly contributed towards power allocation in the system. Another application could buffer outgoing mail messages during periods of intermittent network connectivity, flushing the mail send queue when a network with sufficient bandwidth is detected. This application has contributed to the conservative utilization of network resources during periods of scarce network bandwidth. Still another application can use the iconized state of its display window as a hint to inhibit network activity. No scheduling of network activity by the operating system can perform better than such voluntary restraint.

In general, a mobile computing application must dynamically upgrade its quality of service when a resource becomes available, and gracefully degrade when the quality of a resource deteriorates or a resource becomes unavailable. In order to do so, the application must be: 1)_ sufficiently general so that alternate resource availability situations can be handled, 2)_ aware of current resource availability, and 3)_ structured so that functionality and resource usage is altered according to application requirement and current resource availability The mobile computing system must, therefore, export awareness of the resource environment to an application. Important components of the mobile computing environment that must be considered include the battery, memory, disk, network, and the CPU. Although current operating systems are capable of ecognizing changes in resource availability, we believe the abstractions for informing an application of the induced changes are inadequate for mobile computing. In order to address this inadequacy, we propose a new approach to make an application aware of environmental changes. The architecture is based on an event delivery mechanism over which typed events can be delivered to mobile computing applications. Event types can

The Modern Shrew

UNIVERSITY OF TARTU DEPARTMENT OF ENGLISH LANGUAGE AND LITERATURE THE CONTEMPORARY SHREW: AN ANALYSIS OF TWO MODERNISED FILM APPROPRIATIONS OF SHAKESPEARE’S THE TAMING OF THE SHREW BA thesis LIIS KAASIK SUPERVISOR: LECT. RAILI POLDSAAR TARTU 2008 ABSTRACT The aim of the thesis is to analyse how the contemporary context and genre conventions have affected the representation of different characters and the plot in two modernized film versions of The Taming of the Shrew, ShakespeaRe-Told Taming of the Shrew (2005), directed by David Richards, and 10 Things I Hate About You (1999), directed by Gil Junger.

The thesis is divided into four sections: Introduction, Historical and Theoretical Background, Analysis of the Modernised Film Appropriations of Shakespeare’s The Taming of the Shrew and the Conclusion. The Introduction states the aim of the thesis, explains the importance of Shakespeare’s work in contemporary world and introduces the films discussed in the thesis.

The second section of the thesis, Historical and Theoretical Background, firstly defines the terms adaptation and appropriation, discusses the different methods of adaptation and appropriation literature, theatre and film, with special attention to the advantages film has over the other means of reinterpretation. The section also gives an overview of Kenneth Rothwell’s classification of Shakespeare, in particular recontextualisation. Finally it gives examples of different film versions of The Taming of The Shrew.

The Analysis of the Modernised Film Appropriations of Shakespeare’s The Taming of The Shrew gives a short overview of the films analysed discusses the influences the chosen genre has on the mode of reinterpretation. Then the representation of the main characters – Katherina, Petruchio, Bianca, Baptista, Hortensio, Gremio, Lucentio or their counterparts – will be discussed along with the relations inside the Minola family, the relations between Bianca and her suitors and the relationship of Katherina and Petruchio. The Conclusion summarises all the sections of the thesis and discusses the main differences between the films analysed.

TABLE OF CONTENTS 1. Abstract…………………………………………………………………………………… 2 2. Introduction………………………………………………………………………………4 3. Historical and Theoretical Background………………………………………….. ………7 4. Analysis of the Modernised Film Appropriations of Shakespeare’s The Taming of The Shrew…………………………………………………………………………………. ……16 5. Conculsion………………………………………………………………………………32 6. References………………………………………………………………………………34 7. Resumee…………………………………………………………………………… ……35 INTRODUCTION Besides the tales which are told and then forgotten, there are some which are retold by each new generation throughout history.

These stories survive because they touch the themes which are everlasting and remain topical regardless of the time which has passed since the creation of the original story. Still, although human nature remains the same, people, life and culture change and so do the stories – each retelling reinterprets the tale in order to retain the significance of the story for the people of that particular time. The retelling of stories means that they are adapted and altered so that they would fit the current culture. However reinterpretations work as reinterpretations only when the audience is familiar with the theme and the plot.

That is the reason why well known stories – myths and legends, but also classical literary pieces – are chosen for reinterpretations as they are recongniseable for the majority. Shakespeare is one of the writers whose stories are retold and reinterpreted constantly because, as Jackson Russell (2007: 321) has said, “Shakespeare is the space where the past meets our uncertain future. ” In other words the themes Shakespeare wrote about hundreds of years ago – love, vengeance, ambitions, justice – have not lost their significance.

The issues he dealt with in his plays are still present in the modern world and so his works matter to the contemporary audience. Another reason for Shakespeare’s popularity is that his works are very varied and therefore it is not surprising that there are many people who want to create their own versions of the stories told be him. Reinterpretations themselves may occur in many forms, but in the contemporary world one of the most important ways of retelling is film, as it is a method with very distinct creative recources and reaches a very broad audience.

The popularity of Shakespeare adaptations can be seen in the fact that his works have been used as a source for film productions from the era of silent films to today. This thesis is going to focus on the screen adaptations of Shakespeare’s work, in particular two reinterpretations of The Taming of the Shrew. The choice of the play is based on the fact that of all plays written by Shakespeare, some are filmed more often than others. Besides the four famous tragedies (Hamlet, Macbeth, King Lear and Othello) there is a comedy that has also been reinterpreted more often than others – The Taming of the Shrew.

There are almost 20 film versions based on the play. One reason for it is certainly that the story is about the everlasting power-struggle between men and women, which, although gender roles have changed a lot, is still topical. The genre of comedy makes it possible to deal with the topic with humour and therefore more openly than other genres would allow it (Henderson 2003: 120). The films analysed here are ShakespeaRe-Told: The Taming of the Shrew (2005) directed by David Richards and 10 Things I Hate About You (1999) directed by Gil Junger.

Both of them have brought Shakespeare’s play into the modern world and created reinterpretations which make the story relevant to contemporary audiences. At the same time the two films are very different from each other as, although they take place in contemporary world, they depict two very different worlds using different genres– the British political circles in the form of a farce and an American high-school in the form of a teen-comedy.

This means that the directors have made very different choices in their reinterpretations and therefore the story and the characters have been altered in different ways. The aim of the thesis is to analyse how using the contemporary context has affected the representation of different characters in the two modernised film versions of The Taming of the Shrew. For that purpose the concepts of adaptation and appropriation in general will be discussed with focus on appropriations and recontextualisations of Shakespeare.

The thesis also covers gender roles during the 16th century and in the contemporary world to explain why The Taming of the Shrew needs to be adapted to retain its relevance to today’s viewers. The main part of the thesis is going to analyse the two films, ShakespeaRe-Told: The Taming of the Shrew (2005) and 10 Things I Hate About You (1999). The discussion concentrates on the representation of the main characters and the relations between them in the context of the chosen mode of recontextualisaton. HISTORICAL AND THEORETICAL BACKGROUND Reinterpretations can be divided into adaptations and appropriations.

Julie Sanders (2006: 19) states that adaptations are often “specific process[es] involving the transition from one genre to another” and “reinterpretations of established texts”. The difference between adaptation and appropriation is that adaptations stay closer to the original and are recognisable as adaptations of certain works, while appropriations tend to move “away from the informing source into a wholly new cultural product and domain” (Sanders 2006: 26) making more alterations than adaptations and sometimes even creating a new story.

For example the musical My Fair Lady based on George Bernard Shaw’s Pygmalion is an adaptation as the musical stays quite close to the original plot, while Graham Swift’s novel Last Orders is an appropriation of William Faulkner’s As I Lay Dying as there are many overlaps between the two novels, but the stories are different because they take place in different contexts and have a different focus (Sanders 2006: 32-33).

As the possibilities of adaptation and appropriation are very wide, it is not surprising that the world of Shakespeare adaptations and appropriations is extremely diverse as he wrote numerous plays on different themes, which in turn can be retold in various manners. One possibility is to create a play which uses the same plot as Shakespeare but gives a new angle to it. A good example of this is Tom Stoppard’s Rozencrantz and Guildernstern Are Dead, which is an interpretation of Hamlet from the perspective of two minor characters – Rozencrantz and Guildernstern.

Also there have been literary works which retell a play form a different angle, such as Jane Smiley’s novel A Thousand Acres which is based on King Lear but is told from the perspective of his eldest daughter and Margaret Atwood’s short story titled Gertrude Talks Back, which gives the reader the perspective of Hamlet’s mother, who in the play does not have much say (Sanders 2006: 49). Another widely used possibility of adapting and appropriating plays by Shakespeare is film, which is a mode of reinterpretation very different from literature and theatre.

Literature gives the reader more possibilities of interpretation and leaves more room for imagination than film or theatre, in which the impressions are determined by the directors choice of actors and settings. Theatre and film are more similar to each other as both involve actors performing a written script and can influence the viewer with music and lighting in addition to words. But there are also significant differences as film usually looks more like “real” life as the acting in film is more “natural” than in theatre where emotions have to reach the last rows.

On film the camera can get close to the actors and capture even the smallest facial expressions. Also, in theatre one sees the play from one position but film, by using skilful camera-work, allows the audience to see more angles. Film also enables the director to use various settings while in theatre the action takes place on the same stage throughout the play and although the decorations can be changed for different scenes, the possibilities are still not as wide as in film. Although all films based on the plays by Shakespeare are adapted or ppropriated in some way as all directors alter the play in some respects, there are many films which attempt to create a more “authentic” production. These films construct a setting which would look historical, either bearing in mind the content of the play or the time when Shakespeare wrote it, and keep the original text and language. Often these films look like theatrical productions, although it must be said that they still use the advantages film has when compared to theatre.

Hamlet (1948), directed by Laurence Olivier, is an example of such adaptations because in it the original text is used and the costumes and settings create the illusion of being historical, even if they do not represent medieval Denmark, which would be the true context of the play. There are also films which derive from Shakespeare, but abandon the original play in some ways. These productions move away from the text of Shakespeare by giving it a new context, new angles or new subplots while being based on some element, for example the general plot, of the original.

Kenneth Rothwell (1999:218-219) has divided these derivations into seven categories : recontextualisatons, mirror movies, music/dance films, revues, parasitical films, animations and documentaries or educational films. Recontextualisatons move the play to a new era and/or place and do not use the exact words of Shakespeare, but maintain the plot. There are many examples, such as Joe Macbeth (1955) directed by Ken Huges, which puts the story of Macbeth into Chicago gangland or Romanoff and Juliet (1961) directed by Peter Ustinoff which tells the timeless story of the star-crossed lovers in the context of the Cold War.

But there are also recontextualisatons which do not change the language, such as Hamlet (2000) directed by Michael Almeyrada, in which the plot of the play is taken to New York and into the year 2000 (Rothwell 1999: 219; 220-221). Mirror movies involve two plots: the one of a play by Shakespeare and the other about the life of the actors performing the play. Usually the life of the actors begins to reflect the plot of the play. One of the most popular play by Shakespeare used for this type of derivation is Othello, used for films such as Carnival (1921) directed by Harley Knoles and Men Are Not Gods 1936) directed by Walter Reisch, which both involve actors who are performing Othello with the events of the play developing parallels with their personal life. Other plays which have been turned into mirror movies include Hamlet in In the Bleak Midwinter/A Midwinter’s Tale (1995) directed by Kenneth Branagh which tells the story of actors who are staging Hamlet in an abandoned church, and Richard III in the Goodbye Girl (1977) directed by Herbert Ross, which is the story of an actor who plays Richard III in an off-off Broadway production (Rothwell 1999: 219; 222-225). Music and dance films turn the plays of Shakespeare into musicals.

Usually these films are based on theatrical productions and not directly on Shakespeare. A well known Shakespeare musical is West Side Story (1961) directed by Jerome Robbins and Robert Wise, which retells the story of Romeo and Juliet in the context of New York gang wars. Other examples include The Boys from Syracuse (1940) directed by A. Edward Sutherland, which takes it plot from the Comedy of Errors and Kiss Me Kate (1953) directed by George Sydney, which is based on The Taming of the Shrew (Rothwell 1999: 219; 225-226). Revues use the concept of biography, documentary or even horror shows to perform some scenes from Shakespeare’s plays.

Films of this type include Prince of Players (1954) directed by Philip Dunne, where Richard Burton plays an actor who performs various scenes from different plays by Shakespeare, such as Hamlet and Richard III. Theatre of Blood (1973) directed by Douglas Hickox also falls into this category as the film tells the story about an actor who decides to kill the critics who had destroyed his career using methods of murder applied in Shakespeare’s plays such as Julius Caesar, Richard III and Titus Andronicus (Rothwell 1999: 219; 226-227). Parasitical films borrow some short verbal or visual quotations from Shakespeare’s plays.

One of the most often quoted plays of Shakespeare is Hamlet and the “To be or not to be” soliloquy in particular, which for example occurs in My Darling Clementine (1964) directed by John Ford and Morning Glory (1933) directed by Lowell Sherman. Even the cult TV-series Star Trek quotes Hamlet in the episode The Conscience of the King (1966). Other plays used in parasitical films include The Midsummer Night’s Dream, used in The Dead Poet’s Society (1989) directed by Peter Weir and Romeo and Juliet which is used in for example The Hollywood Revue of 1929 (Rothwell 1999: 219;227).

Animations, as the name suggests, put Shakespeare into the form of cartoons. The first animation based on Shakespeare was Othello by Anson Dryer in 1920. In 1959 Jiri Trnka made an animation of The Midsummer Night’s Dream and during 1992-1994 a set of 18 plays called Shakespeare: The Animated Tales, including Romeo and Juliet, Julius Caesar and As You Like It, was released. One of the most popular animated derivations of Shakespeare is certainly Lion King (1994) directed by Roger Alles and Rob Minkoff, which turns Hamlet into a power struggle inside a pride of lions in Africa (Rothwell 1999: 219; 227-228).

Documentaries and educational films are pedagogical productions, which may overlap with other categories. For example Shakespeare: The Animated Tales mentioned above was meant for introducing Shakespeare to schoolchildren. Other examples include Discovering Hamlet (1990) directed by Mark Olshaker which focuses on the development of a theatre production of Hamlet and the Playing Shakespeare series (1984) in which John Barton teaches the viewers, with the help of other actors, how to perform Shakespeare (Rothwell 1999: 219; 228).

Some films clearly belong to certain category, such as Joe Macbeth (1955) which is a pure recontextualisaton. However there are also some production which can be fitted into more than one category, such as Kiss Me Kate (1953) which is a musical and a mirror movie at the same time as the plot also involves the lives of the actors, or West Side Story (1961) which is again a music and dance film, but also a recontextualisation. Therefore it can be said that the classification offered by Rothwell is not absolute as it is not possible to fit all films into specific categories.

Still, this typology gives us the chance to make the versatile world of Shakespeare on film somewhat more organised. All types of derivations of Shakespeare have their own strengths. Recontextualisations bring the audience closer to the play when it is moved to a contemporary context or just give new angles to the events and characters. Mirror movies give the audience a chance to see some of the original play and at the same time create a new story around it. Music and dance films move the stories into a completely new genre.

Revues build a new plot around Shakespeare’s plays so that the audience recognizes some parts of the film. Parasitical films use some quotations from the plays and give the audience the pleasure of recognition. Animations make it easier for children to relate to and understand Shakespeare. Documentaries and educational films give information and have pedagogical importance. There can be many different appropriations, falling into various categories, which are based on one play. As mentioned in the introduction The Taming of the Shrew has been the basis for about 20 films.

The first film production of the play, directed by D. W Griffith,was released in 1908, According to this version of the play Petruchio tames Katherine by mirroring her behaviour and making her realise that she is too vicious with others, an interpretation also used in later productions. The first sound production from 1929, directed by Sam Taylor, carried a secondary message for the contemporary people as it starred the super-star couple Mary Pickford and Douglas Fairbanks and their personal relationship offered a parallel to that between the main characters of the film.

The representation of Katherine in this film were strongly affected by the choice of the actor – as Pickford (1955: 311) herself notes: “Instead of being a forceful tiger-cat, I was a spitting little kitten”. This the demand of the director who wanted her to keep her soft image and not be too strong and intense (Henderson 2003: 120-134). The two films discussed above are adaptations, but there have also been appropriations which fall into the categories of derivations proposed by Rothwell.

For example the music and dance film Kiss Me Kate, which also can be classified as a mirror movie as the two main characters portray actors performing the roles of Katherine and Petruchio, both on the stage and in their own lives. There are also recontextualisations, such as the TV-series Moonlighting, in which the original play is only slightly reflected in the theme of the series which focuses on the continuous battle between the male and female lead. The Taming of the Shrew has also been animated as it was included in the Shakespeare: The Animated Tales series, intended for educating schoolchildren.

Already this fact is a sign of the importance of The Taming of the Shrew among the works of Shakespeare (Henderson 2003: 120-134; Rothwell 1999: 225-226). The two reinterpretations of The Taming of the Shrew analysed in the thesis are set in the contemporary world and can be classified as recontextualisatons. ShakespeaRe-Told: The Taming of the Shrew (2005) is put into the context of contemporary British political circles and takes the form of a farce while the 10 Things I Hate About You (1999) is Shakespeare in the form of a teen-comedy set in an American high-school.

Both films have created a new text so that the language of Shakespeare is lost, although the directors use the general plot which has been altered to some extent. The reason why The Taming of The Shrew cannot be modernised without alterations in the plot is that society has changed extensively since the time when the play was written, especially when it comes to gender relations. The central theme of the play is the battle of the sexes. The original play emphasises that the key to marital happiness is that men should be in control of women and that wives should obey their husbands unconditionally – the shrews have to be tamed.

The contemporary social norms are different as the role of women has changes and women have become more equal with men and this the final conclusion may seem anachronistic to contemporary audiences. Therefore the modernisation of the play has to include alterations in the outcome and the general attitude of the play to retain its relevance. During the 16th century, when Shakespeare wrote the play, women’s main “job” was to marry and bear children. A good wife had to be humble and obedient to her husband and obstinate women were frowned upon. Although the head of the country was a woman– Elizabeth I – women in general did not have a voice as hey were always legally represented by the head of the household, that is their father or their husband. This meant that the fathers were also in control of the choice of a husband for their daughters. Thus it can be concluded that The Taming of the Shrew represents the reality of the time when it shows Baptista’s worry about the marriageability of, the dowry negotiations and the praise of obedient wives. Although there must have been exceptions, unruly women like Katherina, the social norms of the time approved the male domination and Katherine of the end of the play is a representation of the ideal wife of the time (Palliser 1992: 70-79).

The role of women has changed to a great extent from the time of Shakespeare. Contemporary norms and laws state that men and women should be treated as equals and have the same rights, such as the right to vote and work. Modern women have careers outside the home and other concerns in addition to marriage and children. It is possible for a woman to be successful at, for example, politics or science, both of which were considered to be male fields in the past. Men are no longer obliged to take care of the women as the latter are considered to be self-sufficient.

However, there are still people who believe that women are inferior to men and/or the wife should only focus on home and the family while the husband works. This means that the discussion over gender-roles continues and is still a topical issue (Rowbotham 1997: 581-591). These cultural changes mean that if a production of The Taming of the Shrew would carry the original meaning, it would not fit the general norms of today’s society. Therefore the play has to be altered so that it would be in greater harmony with contemporary understandings of the role of women.

This suggests that the portrayal of the characters and the relationships between them has to be modernised. At the same time, the plot and the genre of the original play can still be used for making humorous statements about the roles of contemporary women and men. The following parts of the thesis are going to focus on the alterations made in the portrayal of the main characters and the relations between them in ShakespeaRe-Told: The Taming of the Shrew (2005) and 10 Things I Hate About You (1999) and discuss how the choices made by the screenwriters and directors have affected the message of he play. ANALYSIS OF THE MODERNISED FILM APPROPRIATIONS OF SHAKESPEARE’S THE TAMING OF THE SHREW The discussion below concentrates on the ways in which the characters created by Shakespeare have been represented in today’s context and what changes have been made in the plot and the relationships between the characters. The analysis begins with a short overview of the film, focussing on events relevant for the thesis, and a discussion of the general influences the genre of the film has had on the adapted plot.

Then the representation of the main characters – Katherina, Petruchio, Bianca, Baptista, Hortensio, Gremio, Lucentio or their counterparts – will be discussed along with the relations inside the Minola family, the relations between Bianca and her suitors and the relationship of Katherine and Petruchio. As the latter is central in the film and the play, it will be covered in greater detail than the other elements. ShakespeaRe-Told: The Taming of the Shrew(2005)

The film begins with introducing Katherine Minola, a bad-tempered single woman in her thirties making a career in the British parliament by running for the position of the leader of the opposition. She is advised to get married to benefit her campaign, but due to her temper there are no willing suitors. Meanwhile her younger sister – a famous super-model – Bianca rejects her manager Harry’s (Hortensio) proposal of marriage by stating that she will marry only when Katherine does.

When Harry’s friend, an eccentric and financially broke British aristocrat Petruchio, the 16th Earl of Charlbury, arrives in London, after having been deported from Australia, to find a rich wife. Harry instantly thinks of Katherine as it would also solve his problem. He introduces Katherine and Petruchio and the latter instantly proposes to her. When she finds out that Petruchio has a title she accepts.

The wedding is a disaster as Petruchio is late and shows up dressed as a woman, after which Katherine is so venomous towards Petruchio that he decides to tame his wife during the honeymoon in Italy, by depriving her of food, sleep, clean clothes and sex until she “will be nice to him”. He succeeds and they find a balance in their relationship. Back in the UK Katherine becomes the leader of the opposition. The wedding of Bianca and Lucentio, a young Italian, is cancelled when Lucentio refuses to sign a prenuptial agreement, as his goal was to get rich through marriage.

The mother of Katherine and Bianca, Baptista Minola supports Bianca in this question, but the happily married Katherine states that a woman should respect and obey her husband, the same way a husband should respect his wife. The film finishes with Katherine telling Petruchio that she is pregnant with triplets and that Petruchio has to stay home with them as she will continue her career. This production moves the play into the world of British politics and turns it into a farce, which means that the situations and the actions of the characters are extremely exaggerated, even ridiculous.

Therefore it is possible to use the original plot, including its treatment of women, as the viewers recognize the farcical nature of the film and do not take it as a serious social commentary. Also all the characters in this production represent recognizable stereotypical figures whose personalities have not been fleshed out due to which the viewers perceive them not as real people, but more as parodies of stereotypes. Still the makers of the film have made some significant changes in the portrayal of the characters and in the plot, which reflect contemporary world and practices.

The first time the audience sees Katherine Minola she is yelling at her secretary and throwing things at him because he had given her insufficient information. She is presented as a true shrew – ridiculously violent, bad-tempered, rude and with no self control. The reason why the audience accepts making a successful woman into a laughing stock is the choice of the context – Katherine is a politician and people generally mock political figures.

Also all her negative characteristics are reinforced in a way which clearly indicates that the film is a farce and therefore Katherine is not supposed to be a realistic portrait – no politician could get away such behaviour. However while in the play Katherine was violent and rude but had no power over others as her fate was still controlled by her father and later by her husband, in the film she seemingly has much influence as she is politician, although in a way she is controlled by her voters and her party which is why she has to get married. Shakespeare’s Petruchio was boisterous and daring but still a realistic person, but the Petruchio of ShakespeaRe-Told: The Taming of the Shrew is similarly to Katherine, turned into a farcical figure. His character is based on the stereotype of eccentric and broke British aristocrats. This is emphasised by making him a cross-dresser but also letting him quote Shakespeare and exhibit excessive self-confidence.

He is described by his best friend Harry as “just an unstable, unbalanced exhibitionist who needs someone to think the world of him. ” This portrayal of Petruchio makes it possible to include the taming process itself in an almost unchanged manner, because his eccentricity explains his methods. As in the original play Bianca is very different from her older sister, but while Shakespeare’s Bianca was a sweet-tempered and passive girl, the Bianca of this production is a woman who knows exactly what she wants and how to get it.

The two sisters are similar in that they both have successful careers, but while Katherine strives to break through in a male-dominated sphere, Bianca’s career is very feminine. She is represented as a typical rich and successful super-model who is adored by the public and used to getting whatever she wants, including men as in the film she is the one who pursues Lucentio not vice versa. When compared to the play, Bianca has been given much more power to control her own life, reflecting the changed position of women in today’s world.

At the beginning of the film Lucentio, the young Italian fortune-hunter, remains very mysterious as he is seen seldom and does not say much, but in the end his true nature is revealed when it comes out that he is marrying Bianca to become wealthy so that he would not have to worry about his education or career. Therefore he is probably the character who has been altered the most, because in the play Lucentio was the embodiment of pure romantic love, whereas in the film his intentions are purely rational. As he wishes to live off Bianca’s riches, it implies that he would become financially dependent on his wife – a “kept man”.

This is a significant alteration as traditionally this behaviour is more associated with women and at Shakespeare’s time it was the husband who made money and the wife depended on him. Harry, the counterpart of Bianca’s suitor Hortensio, is a well-known type, the stereotypical middle-aged manager who has dedicated his life to his client, who does not value his efforts. He also represents the typical sensitive man who does not have luck with women as he complains to Petruchio “I can see their inner beauty, but they never see mine. This development clearly is an sign of modernisation as in the film Harry is a soft and emotional man, therefore his portrayal is somewhat feminine. In the 16th century these qualities would have not been generally acceptable in a man as then gender-roles were more clear-cut and men were expected to be masculine. Another character who has been altered to a great extent is Baptista Minola, the father of Katherine and Bianca, who in this film has been turned into their mother – a rich widow whose main interest is spending money. She does not have control over her daughters and is more of an observer.

This speaks of how the role of parents has changed since the 16th century, as then it was common that the parents made the important decisions for their children, especially daughters, but adult daughters are shown as being responsible for their own lives in today’s context. Another significant alteration involves ,Baptista being made into a woman. In the play the mother of Bianca and Katherine existed but was not spoken of, indicating the typically powerless role of women in that time while in the film the audience knows that there must have been a father, but he is never mentioned and it is the mother who takes centre stage.

Similarly to Shakespeare’s Baptista, she is closer with Bianca than with Katherine. The difference lies in the type of relationship Bianca and Baptista have as in the play it was the relationship between a loving father and the daughter he is trying to protect and care for, but in the film Bianca and Baptista are more like friends who go to beauty parlours together and chat about men. Baptista is distant from Katherine because Katherine’s political career and aspirations are not interesting to her and she does not pprove of Katherine having neglected the world of feminine activities that Baptista and Bianca share. For example in the scene where the family meets for lunch it is obvious that Katherine feels left out of the “female community”. She does not understand the world of her mother and sister and they do not understand her as they tactlessly joke about her potential marriage. Also, as the life of Bapista and Bianca revolves around glamour and reputation they are ashamed of Katherine’s bad-tempered behaviour and lack of fashion sense which increases the gap between them.

The relations between the two sisters in the play are complicated because Katherine is envious of Bianca’s popularity and her relationship with Baptista. This tension has been kept in the film. The difference lies in the way how this conflict is represented. In the play Katherine expressed her resentment directly by constantly fighting with Binca and even by inflicting physical violence. The modern context makes the use of violence impossible as a successful politician beating her super-model sister would be too improbable even for a farce.

Therefore Katherine expresses her feelings by attacking either Bianca’s fans or friends, for example during the scene in the restaurant she goes into a fit of rage because some people want Bianca’s autograph and at Bianca’s farewell party she smashes a guitar over the head of a friend of Bianca’s because she thinks he was making fun of her. However the relationship changes by the end of the film, because after her marriage Katherine starts to feel superior to her sister and no longer is jealous of her life.

At the beginning of the film Katherine to envies Bianca as there is no-one who would like to be “shackled to a gorgon like you [Katherine]”, as Bianca puts it, but Bianca is surrounded by male-admirers. Bianca’s relations with men are controlled by herself and not by Baptista or the men, which is a remarkable alteration as in the play the suitors had to pay as much attention to negotiations with the father as to wooing Bianca. In the film this aspect of Bianca’s relationships with men is completely omitted as the mother does not participate in any decision-making.

Another difference in Bianca’s relations with men is that in the play Bianca is a passive character whose fate is controlled by her father and the will of her suitors as she lets herself to be wooed but does not take any action. In the film she is the active side as she introduces herself to Lucentio, asks him to teach her Italian and finally seduces him. The only independent action taken by Lucentio is using the opportunity to marry a rich woman.

This change shows the influence of the modern context where it is common for women to play active roles in relationships. In the film, as in the play, the reason why Petruchio is interested in Katherine is money, but in this case it is Katherine herself who is wealthy and not her father, another example of the influence of the changed social context as in Shakespeare’s times it was generally impossible for women to own property and wealth belonged either to the father, the husband or other male relatives.

Also, in the film Petruchio is not the only one to benefit from the marriage. Katherine agrees to marry him because of his title as a marriage to an aristocrat is beneficial to her party leadership campaign, but the only advantage of marriage to Shakespeare’s Katherine was that she would not end up as a spinster. The relationship between Katherine and Petruchio in the film centres on the process of taming and this has not been altered much when compared to the play and includes the same key events – the wedding, the honeymoon and Katherine’s final speech.

The wedding is as strange in the film as it was the play – Petruchio arrives late, drunk and wearing women’s clothes, but manages to persuade Katherine that not going through with the wedding would be even worse for her reputation than marrying him. The difference is that in the film the public humiliation implied by the episode has a bigger effect on Katherine as she is a public figure and the wedding was intended to benefit her career.

Petruchio’s intention here was to show her that she has to keep her private life separate from work as everything she does should not only revolve around her political career, but in the play he just wanted to show that a husband can do anything and the wife has no right to object. During the honeymoon in Italy Petruchio deprives Katherine of food, clean clothes, sleep and sex. Shakespeare’s Petruccio used the same methods, but the difference is in the reasoning behind the actions.

In the play Petruccio argued that the food, the bed and the clothes were not good enough for his beautiful wife and by that he robbed Katherine of the reason to object but in the film Petruchio does not hide behind any reasoning but simply states that he will not end this torment unless Katherine changes her attitude. This change is probably not caused by the context but by the farcical nature of the production.

The taming results in changes in Katherine’s principles and behaviour which are reflected in her speech, which she delivers while arguing with her sister and mother about whether prenuptial agreements are reasonable and necessary or not. As she says: I think that your husband is your lord and your life and your keeper. He is the boss. Day in and day out he emits his body to painful labour and all we do is sit at home in front of the telly all day eating chocolates. I know I do when I’m not running the country. I have been like you – argumentative, obnoxious, bad tempered.

And what good did it do me? Eh? I think you should do whatever he tells you to to, whenever he tells you to do it. I mean, good lord, how could we ever be equal to them – big, noisy and opinionated. And we are little and noisy and opinionated. /… / I think you should be prepared to place your hands below your husbands feet in token of your duty to him. /… / I would if he’d ask me to, but he won’t ask me to, because he feels exactly the same way about me and he wouldn’t expect anything from me what I wouldn’t expect from him.

The speech clearly shows how the taming has changed Katherine – she has learned that she has to keep her career and her family-life apart and that although she is running the country and has political power she should not enforce her will over her husband. Still, unlike the Katherine in the play, in the speech she does not say that a woman should be completely subordinate to her husband but, in accordance with modern views, she states that women and men should be equal – they should expect the same things from the other what they are willing to do themselves.

This is an important change in the speech, because the original only emphasised that the husband is the lord and called for a total submission from the wife. The original play concluded with Katherine and Petruchio going to bed, but the film shows us subsequent events and how their marriage worked out – Katherine gives birth to triplets, but does not give up her career and eventually becomes the Prime Minister, which can be concluded from the photograph of Katherine and Petruchio standing in front of 10 Downing Street. Petruchio stays at home and takes care of the children, but does not lose any of his eccentricity or childishness.

This ending, is also a marker of the modernisation of the play – although Katherine learns to accept the need to surrender some of her independence to her husband, in the end it is the husband whose role is changed more dramatically as he has to assume the domestic role while Katherine continues her public career. 10 Things I Hate About You (1999) The film begins with introducing Katarina Stratford (Katherina Minola), a teen rebel who objects to all norms of high-school popularity and is perceived by others as a “heinous bitch”.

Then a new student, Cameron (Lucentio), enters Padua High School and on his first day falls in love with Bianca Stratford, Katarina’s sister. In order to get her attention he becomes her French tutor as Bianca and Katarina are not allowed to date boys. During the first tutoring session Bianca tells him that their father, Walter Stratford (Baptista Minola), has changed the rules and Bianca can date when Katarina does. Therefore Cameron, with the help of a friend, devises a plan.

They trick a rich model Joey Donner, (Hortensio/Gremio) who is also interested in Bianca, into paying off the strangest boy in the whole school – Patrick Verona (Petruchio) – so that he would date Katherine. Patrick’s first attempts to ask Kat on a date fail, but finally he succeeds in winning her attention. This is followed by a series of conflicts between the couple. Meanwhile Bianca at first uses her freedom to date Joey Donner, but as she gets to known him better, loses her interest and begins to date Cameron. As the prom is the centre of American teen -life, all major plot-lines culminate during the events surrounding it.

Firstly, as Katarina has decided not to go, and therefore Bianca cannot go either, they have a fight which results in a heart-to-heart conversation during which Kat explains the motives of her behaviour. Secondly, at the prom, as Kat finally decides to go, Patrick reveals his true past to her and she also finds out that Patrick had dated her for money. Thirdly, the negative character of the film – Joey – is attacked by Bianca and becomes the object of humiliation. The prom is followed by Katarina’s final speech which is in the form of her reading a poem in the English class, where she confesses her true feelings for Patrick.

The film ends with the two sisters finally getting along, the father admitting that he cannot control her daughters and Katarina forgiving Patrick. 10 Things I Hate About You is a teen-comedy set in an American high-school, and therefore it uses the typical concepts and solutions of the genre while interlacing them with elements from Shakespeare’s play. This has resulted in some significant changes in the plot as, firstly, marriage has been substituted with dating, secondly, the taming-process is much milder and, thirdly, the prom, as a traditional centre of teen -life, is included as a culmination of events, as customary in teen-comedies.

Also the characters of the play are portrayed as typical teen-flick characters – Cameron is the nice and a bit nerdy boy, Bianca the beautiful and selfish girl striving towards popularity, Walter the overprotective father, Katarina the intelligent rebel, Patrick the mysterious bad -boy and Joey the popular, egoistic and self-indulgent character whom the audience hates. As mentioned above, Katarina is a typical feminist teen-rebel who objects to everything that has to do with popularity and norms.

She expresses her views by ripping off prom posters, listening to indie-rock girl-bands, speaking her mind whenever she can and sometimes even by pure violence. For example on one occasion she causes serious injuries to a schoolmate who offended her. She is also intelligent and witty, having excellent verbal skills, as did Shakespeare’s Katherine. Consequently, most of the students at Padua High are afraid of her, but still the film’s Katarina is a milder and more likeable character than Katherine in the play.

In the film people do not laugh at her, but at her jokes. The audience does not perceive her as a mad shrew, but rather she is admired for her independence, intelligence, courage and sharp language. She is portrayed in a way that the viewers can relate to her as a real person, which is very different from the way how for example the Katherine of the ShakespeaRe-Told: The Taming of the Shrew is presented.

Petruchio, the gentleman from Verona who is looking for a rich wife is transformed into Patrick Verona, an Australian boy with a mysterious past, feared my most people at the school due to the his strange behaviour, such as playing with fire, and the rumours which revolve around him, for example that he has been in prison and once ate a live duck. At the same time he is not foolish or unintelligent as he is a verbal equal to Katarina and his reason for behaving strangely is to experiment with people and their reactions.

However, in the course of the film he decides to lose his image of a bad -boy and changes his behaviour, therefore it can be said that in a way, in this film he is also the shrew who is tamed. This shows the contemporariness of the film as in Shakespeare’s time the presentation of a woman taming a man would have been unthinkable. Bianca Stratford is represented as the typical beautiful and superficial girl who strives for popularity and is therefore the opposite of her sister, similarly to Shakespeare’s Bianca.

The contrast between the sisters is also emphasised by their speech and conversation topics. When we first see Bianca, she is having a discussion with her best friend on the difference between “like” and “love”, arguing that there is a distinction because “I like my Sketchers, but I love my Prada backpack”, while Katherine talks about Silvia Plath and the “oppressive patriarchal values that dictate our education”. The play does not create such an intellectual contrast between the sisters, probably because the intellectuality of women was not emphasised in the society at the time when it was written.

This portrayal of Bianca is interesting, because it makes her a somewhat negative character, but as she is influenced by her sister and Cameron, her nature changes and she loses her egoism. Therefore it can be said that she is another shrew who is tamed. Lucentio’s equivalent, Cameron, is the cute but a bit nerdy boy often seen in teen-flicks probably because many of the target viewers can relate to such characters. Similarly to the play he is portrayed as the opposite of Patrick – in the play Lucentio is a romantic lover and Petruchio a rational-minded gold-digger and in the film Patrick is the bad -boy and Cameron is the typical sweet guy.

The difference is that in the film they work together – Cameron is the one who helps Patrick to win Katarina’s heart and Patrick encourages Cameron not to give up on Bianca while in the play there is no direct connection between the actions of the two characters. This change is caused by other alterations made in the plot as in order to make it possible for Patrick to employ the “taming methods” he uses, it is necessary for him to have an ally who would get him information about Katarina.

Another reason for the co-operation is that the film has also omitted the communication between the suitors and Baptista. In the film Cameron’s plan to woo Bianca does not include pretending to be a teacher while his servant is pretending to be him to negotiate with the father, so without him being involved in the taming of Katarina and devising the plan to get the father to let Bianca date, his role would be too empty and insignificant.

It is difficult to determine whether Joey Donner is the counterpart of Hortensio or Gremio as he is not the direct equivalent of either. While Hortensio and Gremio where rivals of Lucentio, they remained neutral, but Joey is presented as a purely negative character. In the film he is the common enemy as he is the cause of Katarina’s behaviour, the rival of Cameron, the cause of the fight between Patrick and Katarina at the prom and has interest in Bianca only to prove that “no-one is out of reach” for him.

This development is not connected with the modernisation of the play, but with the recontextualisaton and the genre as he is the popular, rich, selfish and excessively confident character, who is typically seen in teen-comedies as the foe of the protagonist. In this film Baptista Minola is transformed into Walter Stratford – a typical middle-aged single father who tries to protect his daughters and believes that he knows everything about the world of teenagers and how out of control it is.

He is a gynaecologist who on daily basis has to deal with teenage girls having children and this has made him paranoid as he believes that all parties lead to orgies and that any contact with boys is dangerous. When compared to Baptista, it is clear that his intentions are very different. Baptista’s goal in allowing Bianca to be married only after Katherine is to insure that someone would marry both of his daughters and Katherine would not become a spinster, but Walter’s aim is to make sure that neither of them date to avoid unwanted pregnancy and too early marriage.

This reflects the contemporary ways of life as today the issue of teen pregnancies worries many parents and most of them prefer that their children stay away from the opposite sex for as long as possible as early marriage is seen as seriously damaging a girl’s chances of getting an education and having a professional career, both of which are considered to be essential in having a satisfactory life. The relations inside the Stratford family generally reflect those of the Minola family, but the difference lies in the reasoning behind the behaviour of the family-members.

In the play the father has better relations with Bianca than with Katarina because as Bianca is the sweet-tempered sister, the father sees her as an ideal daughter, but he can not understand Katherine’s behaviour and thinks of her as a shrew who should be married off as soon as possible. In the film, the father explains the reasons why he seems to favour Bianca as “Fathers don’t like to admit it when their daughters are capable of running their own lives, it means we’ve become spectators.

Bianca still lets me play a few innings – you’ve had me on the bench for years. ” This explanation makes the film more realistic in today’s circumstances and is used because of the genre as teen-flicks have to appear recognisable to the audiences. This also explains the relationship between Bianca and Katarina In the film they constantly fight as they did in the play, but physical violence has been omitted, probably because it would make Katarina a more negative character than the film-makes have desired.

In the play the reason behind Katherine’s behaviour is her envy for Bianca because of the latter’s admirers and the attention she gets from their father. But in the film Katarina’s motive, on the one hand is her rejection of the norms of high-school popularity towards which Bianca strives and, on the other hand, she is trying to prevent her sister from making the mistakes she once made as she also was involved with Joey Donner who used her sexually. After the prom, when Bianca has realised that Katarina was right about Joey, they develop a friendly relationship of trust, which never happens in the play.

Cameron’s friend Michael describes Bianca as “a snotty little princess, wearing a strategically planned sundress to make guys like us realise that we can never touch her, and guys like Joey realise that they want to. ” It can be seen from the quotation that in this production Bianca is not the mild and modest girl as in the play, but a rather manipulative young woman who knows how to gain attention and uses it do increase her popularity. Therefore at first Joey seems to be a good choice for her, because he is the most popular boy of the school and a relationship with him would benefit Bianca’s status.

Unpopular Cameron interests her only because he can help Bianca to find a boyfriend for Katarina. As Bianca develops in the course of the film her attitude changes as she realises that Joey is just a self-centred narcissist and that Cameron truly cares about her. This reasoning behind her choice is different from the play, where the contrast between Hortensio and Lucento is that the latter is younger and more attractive to Bianca, but not that the former is unpleasant and abhorrent.

Also, while in the play the decision maker is the father, in the film he can decide whether Bianca can have a boyfriend but not who the boyfriend should be. This is a sign of contemporariness as in today’s western -culture the control of parents over who their children interact with is much weaker than it was in the time of Shakespeare when the children where completely under the control of the father. Patrick’s interest in Katarina is initially triggered by money, as in the play, but in this case the money comes from Joey and not from Baptista.

Also, Patrick is not looking for a rich girl to date, but just seizes the opportunity for some easy money and fun. The difference also lies in the fact that Patrick sees Katarina as something more than a source of money – at first he is intrigued by her because she is not afraid of him as most people are and then at the concert of Katarina’s favourite band, where he goes in order to make Katarina think that they have the same interests, he realizes that there could be more in Katarina than the “heinous bitch” everyone sees.

The process of taming is the most significant alteration in the plot of the play as the goals and methods used by Patrick are very different from Petruchio’s. Although he refers to the process as “taming the wild beast”, his intention is to make Katarina accept and trust him. Patrick tries to be interesting, pretends to have the same interests, quits smoking, is caring and understanding and accepts Katarina for who she is, instead of tormenting her in order to make her submit to his will or change her nature.

It can even be said that Katarina has a bigger effect on Patrick than he has on her as Katarina’s behaviour does not change much during the course of the film – she opens up to Patrick and learns to trust him, but is still the same rebellious teen girl as in the beginning of the film. Patrick on the other hand develops from the bad-boy into a sweet and caring boyfriend who is willing to lose his reputation for the girl he loves. This is seen, for example, in the scene where he performs a love song to Katarina at the school stadium and by that reveals that he is not as tough as he seems to be.

Also, during the prom he uncovers his past and loses the mystery surrounding it and by that his reputation within the school. The taming concludes with Katarina’s speech, as it does in the play. In the film it is presented in the form of a recitation of an English assignment, writing a new version of Shakespeare’s Sonnet 141 The content of the poem Katarina composed reveals that she has feelings for Patrick, but does not contain anything on the theme of gender-roles or the battle of the sexes because of the differences in the taming process discussed above.

The change in Katarina can be explained by looking at the context. The recitation takes place at school, which has been the centre of the whole film, and in front of Katarina’s classmates, including Patrick and in particular Joey, to whom Katarina has always wanted to seem strong and tough, but now she openly discusses her feelings and shows her weakness by crying and then running out of the classroom. This demonstrates that Patrick has made Katarina realise that she should not always try to present herself as being tough and hide her feelings from others, but this shift does not indicate that she is therwise tamed. Rather, in the film it is all other characters who change and are, in a way, tamed. However the development of the characters does not emphasise gender roles but rather just becoming more independent and caring for people around them. The same norm is applied to both male and female characters of the film, suggesting more egalitarian gender norms. CONCLUSION Reinterpretations of well-known stories work as reinterpretations only when the story is known to the audience.

Therefore Shakespeare’s plays, as some of the best known texts in world literature, are a good source for retelling as many people know the characters and the plot. Shakespeare writes about everlasting themes which have remained relevant to this day. His play The Taming of the Shrew deals with the theme of the battle of the sexes, which is as topical in contemporary society as it was in the 16th century. Still,as gender -roles have changed extensively since the time when the play was written, alterations have to be made both in the portrayal of the characters and in the plot.

Adaptation and appropriation are two ways which enable transformation of, for example, literature into film. While adaptations stay close to the original, appropriations introduce more extensive extensive alterations in the text and genre. Today, film has become the most prevalent medium for appropriations of classical text. As Shakespeare’s plays are well known and cover a wide variety of themes, his work is a popular basis for very different films. The present thesis focuses on one type of reinterpretation of Shakespeare’s work recontextualisation.

Recontextualisations give new angles to the familiar plots to make it easier for the contemporary audience to relate to the characters and the theme. The films analysed in the thesis – ShakespeaRe-Told: The Taming of the Shrew and 10 Things I Hate About You – both fall into the category of recontextualisations and more specifically can be classified as modernisations. Although both films take place in contemporary world, the two contexts are very different.

In ShakespeaRe-Told: The Taming of the Shrew the play is relocated into British political circles. Also, as it is a farce, the film-makers could make the character behave ridiculously and unrealistically, including Petruchio taming Katherine by tormenting her. 10 Things I Hate About You, on the other hand, is a teen-comedy and in order to be in accordance with the genre, the behaviour of the characters has to look realistic and so the taming process is made much softer.

Also the outcomes of the two films are very different: in ShakespeaRe-Told: The Taming of the Shrew the only character who undergoes notable development is Katherine, but in 10 Things I Hate About You, basically all the main characters change their behaviour in one way or the other. The analysis of these films showed that in order to modernise The Taming of the Shrew significant alterations have to be made in the portrayal of the characters. It was also demonstrated that the changes depend on the genre of the film as a farce makes it possible to use more of the original plot than the teen-comedy, which requires a more realistic approach.

The different approaches result in significant differences between the two films and their outcomes: ShakespeaRe-Told: The Taming of the Shrew finishes with a statement about the changed gender-roles when Petruchio stays at home with children while Katherine continues her career, but 10 Things I Hate About You does not focus so much on specific gender roles as on general development of the characters as human beings. All in all, it can be said that appropriating Shakespeare can be seen as a culturally enriching practice.

One hand, it revives the old classics in ways which are more understandable to the contemporary audience. On the other hand, all new appropriations, even the reinterpretations of the same play, are different from others and create new ways of understanding and appreciating the plays. REFERENCES Primary Sources Hood, R. C. (ed) 1975. The Macmillan Shakespeare: The Taming of The Shrew. London and Basingstoke: Macmillan Education Junger, Gil (Director). 1999. 10 Things I Hate About You [Motion picture].

United States: Touchstone Pictures Richards, David (Director). 2005. ShakespeaRe-Told: The Taming of The Shrew [Television programme]. United Kingdom: BBC Secondary Sources Henderson, Diane E. 2003. A Shrew For The Times Revisited. In Burt, Richard and Lynda E. Boose (eds). Shakespeare The Movie II. London and New York: Routledge Palliser, D. M. 1992. The Age of Elizabeth. England Under the Later Tudors 1547-1603. 2nd ed. London and New York: Longman Pickford, Mary. 1955. Sunshine and Shadow, An Autobiography.

New York: Doubleday & Co. Inc. Rothwell, Kenneth. 2001. A History of Shakespeare on Screen : A Century of Film and Television. Cambridge: Cambridge University Press Rowbotham, Sheila. 1997. A Century of Women. The History of Women in Britain and The United States in the Twentieth Century. New York. Penguin Book Russell, Jackson (ed. ) 2007. The Cambridge Companion to Shakespeare on Film. Cambridge: Cambridge University Press Sanders, Julie. 2006. Adaptation and Appropriation. London and New York: Routledge

Sample Training Report

UNIVERSITY OF PUNE SINHGAD COLLEGE OF ENGINEERING DEPARTMENT OF __________ ICS 399, SUMMER TRAINING REPORT STUDENT TRAINING PLACE NAME : ADDRESS : TRAINING DATE: Starting …… /….. /….. Completion: ….. /…. /…. PHONE NO: WEB ADDRESS: ……. …………………………….. TABLE OF CONTENTS INTRODUCTION AIM & ESTABLISHMENT OF THE COMPANY • Establishment of the company • Location of the company • Types of services/products given/produced • Mission statement and aim of the company

POLICY OF THE COMPANY • Policies concerning customer services, personnel (motivation, how staff are expected to behave etc. ) • Production, advertising/promotion, environment etc. Example: o The customer is always right o Do not harm the environment o Staff must wear uniform DEPARTMENTS OF THE COMPANY • Organizational chart of the company PERSONNEL OF THE COMPANY • Number of staff (general and in each department) • Age groups • Education level • Experience Behavior, dress and grooming WORK EXPERIENCE For each project week, describe • The name of the project • The department you worked in • Layout of the office • Job description • Machines used • Computer programs used • People whom you dealt with • What did you do? • What did you learn? • How will this experience help you in the future • Limitations o Problems faced o What was missing/lacking? o How could you have done your work better? o How could you have gained more experience a. Week 1 … b. Week 2 …… …… …… c. Week 8 CONCLUSION and RECOMMENDATIONS Summary Your thoughts, views and comments in general about the company and your work experience. • What courses did you heavily use • What courses do you thing the department should introduce. APPENDICIES • Program Code • ER diagrams Note: • The above guidelines are the minimum requirements your project should include. • You can come with a better title page than the one I have suggested. • Your report should be around 20 pages.

Krispy Kreme Doughnuts, Inc

; ,. : ) j I 1 ‘ 7 I I I l-*–*** I I ___i Krispy Kreme Doughnuts,Inc. As the millennium began, the future for Krispy Kreme Doughnuts,Inc. , smelled sweet. Not only could the company boast iconic statusand a nearly cultlike following. it had quickly become a darling of Wali Street. Less than a year after its initial public offering, in April 2000, Krispy Kreme shareswere selling for 62 times earnings and, by 2003, Fortune magazinehad dubbed the company “the hottestbrand in America. ” With ambitiousplans to open 500 doughnutshopsover the frrst half of the decade,the company’sdistinctivegreen-and-red “Hot vintage logo and unmistakable Dor. ghnr-rts Now” neon sign had becomeubiquitous. At the end of 2004, however,the sweet story had begun to sour as the company made severalaccountingrevelations,after which its stock price sank. Frcm its peal. in August 2003, Krispy Kreme’s stock price plummeted more than 807c in the next l6 months. Investorsand analystsbegan asking probing questions aboLitthe con-ipany’s fundamentals, even by the beginningof 2005, many of those questions but remainedunanswered. Exhibits 1 and 2 provide Krispy Kreme’sfinancialstatements for fiscal-years 2000 throLrgh 2004. Was this a healthy company? What had happened to the companythat some had thought oLrldbecomethe next Starbucks? almost If everyone loved the doughnuts. why were so many investorsfleeing the popLrlar doughnutmaker? Company Background Krispy Kreme beganas a single doughnutshop in Winston-Salem, North Carolina, rn 1937, when Vernon Rudolph, who had acquired the company’sspecialdoughnut recipe from a French chef in New Orleans, started making anciselling doughnuts wholesaleto supermarkets. Within a short time, Rudolph’s productsbecame so popular that he cut a hole in his factory’s wall to sell directly to customersthus was born the central Krispy Kreme retail concept: the factory store.

By the late 1950s,Krispy Kreme had 29 shopsin 12 states,many of which were operated by franchisees. This casewas preparedby SeanCarr (MBA ‘03,1. under the direction of Robert F. Bruner of the Darden GraduateSchool of Business Administration. It was written as a basisfor classdiscussion ratherthan to illustrate effective ineffective or handlingof an administrative situation. CopyrightCI 2005 by the University Virginia of Darden School Foundation,Charlottesviiie, VA. All rights reserved. To order copies,sencl e-ntail to an [email protected] com. No part o. ,f publication ntay be reprociucec! this storedina retrieval system,usec! itt a spreac[slteet, transnitted irt antJbnn or b| any means-electrottic, ntechctnical, or photocopt,ittg,recording,or othemvise-withottt the pennission of the DarclenScltool Fotutdation. f, =;. B… 10i 102 Part Two FinanciaiAnnlysis and Forecasting After Rudolph’sdeath,in 1973, BeatriceFoods bought the companyand quickly expandedit to more than 100 locations. Beatrice introducedother products,such as of soups ancl sandwiches. and cllt costs by changing the appearance the Storesand mixture. The businesslanguished’ in substitutingcheaperin-gredients the dou-9hnut however,and by the early 1980s.

Beatrice put the company up for sale. led A group of franchisees by JosephMcAleer, who had beenthe frrst Krispy Kreme tranchisee,completeda leveragedbuyout of the company for $24 million in 1982′ formula and the company’straditionallogo’ McAleer broLrght back the original dou-9hnut It was also around this time that the company introducedthe “Hot DottghnutsNow” were coming off the line’ Tht’ when fresh dor-rghnuts neon sign, which told cr-rstomers company still stmggled for a while, bLrtby 1989, Ktitpy Kreme had becornedebtfree and had slowly begr-rn expand. The company focusedon its signaturedoughto nuts and addedbrandedcoffee in 1996.

Scott Livengood, who becameCEO in 1998 and chair the following year. took the companypublic in April 2000 in what was one of the largesrinitial p. iUti. offerings (IPO) in recentyears;one day after the offering. Krispy Kreme’s share price was $40. 63. giving the firm a market capitalizationof n e a rl y$ 5 0 0 mi l l i on. Krispy Kreme’s Business to strategy expanil an After the compi1ny’s IPO, Krispy Kleme announcecl aggressive over the next fi. re years. In addition’ the conrthe number of storesf1om i44 to 500 with 32 locationsplannedfor Canadaand more pany plannedto -qrowinternationally, for the United Kin,edorn,Mexico, and Australia.

Exhibit 3 providesan overview of the company’sstoreopenin-es. four primary sources: Krispy Kreme Doughnuts generatedrevenuesthrourgh for (accor-rnting 27Vo of rev’ on-premises retail sales at company-owned stores stores(40Vo);manufacturenLres): off-premisessales to grocery and convenience royalties in-9and. distribution of product mix and machinery(29? o);and franchisee retail locations,the company and fees GVo). In a,Jditionto the traditional dcmestic growth through smaller “satellite concepts,”which relied on factory stores sor-rght of to provide dou-ghnuts reheating,as well as the development the international for market. to On-premisessales; Each factory store allowedconsumers seethe productionof creareas doughnuts:Krispy Kreme’s cltstom machineryand doughnut-viewing In atedwhat the companycaiied a “doughnui theater. ” that way, Krispy Kreme 4I1 attemptedto differentiateitself from its competitionby offering cttstomers €r”rperiencerather than simply a product. Each factory storecollld producebetween doughnlrtsa day, which were sold both on- and 4,000-dozenand 10. 000-dozen off-premises. . both saleswere to grocerystores, Off-prernises About 60Voof off-premises sctles: The remainderwere sold to convenience in stand-alone casesand on storeshelves. ere also sold as privatelabel). The companymninstores(a small percentage sales. taineda fleet of delivery trucks for off-premises Case 7 lnc Krispy Kreme f)or-rgirnLrts, . and clisrributiort: Mlctntjacturing Krispy Kreme’s Manufacturingand Distribution (KKM&D) divisionprovidedthe proprietary doughnr-rt mixesand dou-efnutmakingeqllipmentto every company-owned and franchised factory store. This v e rti c a li n te g ra ti o n l ow edthe companyto mai ntai nqual i tycontroland prodal Llctconsistency throughoutthe system.

The companymaintained own menLrits facturingfacilitiesfor its mixes and machines, and it providedquarterlyservice units. All franchisees for all systen’r were requiredto buy mix and eqLripment from Krispy Kreme. KKM also includedthe company’scoffee-roastins which sLrpplied operation. brandeddrip coftee to both company-owned and tranchised stores. FranchiserovaltiesanclJees. ‘ exchange an initial franchise and annLral In for f-ee royalties, franchisees received assistance tiom Krispy Kreme witl’roperations. advertising marketing. nd accor-rnting. other information-management and systenrs. Franchisees had relationships that with the companybetorethe IPO in 2000 were calledAssociates, they typically had locationsin heritage and narkets in the southeastern United States. Associates were not responsible openingnew stores. for New franchisees werecalledArea Developers, they lvereresponsible defor and velopin,t nervsitesandbuildin-e markets in with high potentiai. Area Developers typicallypaid $20. 000 $50. 000in initial franchise to 4. 5% anc! feesanclbetween 67ain royalries.

Franchisees contribr-rted of their annui-ri also lVc to totll sales the corporate advertisine flrnd. ‘ Rour-ehly at 607c of satles a klispy Kreme store were derivedflom the cornpan)-‘s prodr-rct. glr. zed signature the dor-r-9hnut. differedfrorn Dunkin’Donut. s. comThis the pany’s largest competitor, which the majority of saiescame from coftee. for Holes in the Krispy Kreme Story On May 7,2004, for the first tirne in its history as a public ccmpan,v, Krispy Kreme announced adverseresults. The company told investorsto expecteainin-9s be 10% to lower than anticipated. laiming that the recent low-carbohydrare diet trend in the United Stateshad hurt wholesaleand retail sales. The company also said it planned to divest Montana Mills, a chain of 28 bakery cafds acqr-rired January2003 for $40 in million in stock, and would take a char-ee $35 million to $40 million in the first cf quarter. In addition, Krispy Kreme indicatcd that its new Hot Doughnut and Coffee Shops were falling short of expectations and that it had plans to close three of then-r (resulting a charge $7 million to $8 miliion). Klispy Kreme’sshares in of closeddown 3 0 Vo a t $ 2 2 . 1a s h a re . , Then, on May 25, the lVall Srreet Journa[published story describin-e a a-e-gressive accounting treatment franchise for acqr-risitions made by Krispy Kleme. ‘Accordingto ‘lvlark l v l a r e m o n t a n c l i c k B r o o k s . ” K r i s p y K l e r l e F u r u c h i s e u l , b a c k s v { a y p L r r N e u , C o n c e r n s . “u i l R B W f S StreetJourrtal,25 May 2004. Part Two FinancialAnalysis and Forecastiug the article. in 2003, Ktispy Kreme had begun ne-qotiating purchase to a struggling seven-store Michigan franchise. The franchisee owed the ompanysevetalmillion dollars for equipment,in-eredients, franchisefees and. as part the and of deal, Krispy Kreme askedthe franchiseeto close two underperlormingstoresand to pay Krispy Kreme the accruedintereston past-dlleloans. In return for those moves, Krispy Kreme promised to raise its purchaseprice on the franchise. According to the Jottrnal, Krispy Kreme recorded the interestpaid by the franchiseeas interestincome and, thns, as immediateprofit; however, theiompany booked the purchasecost of the franchiseas an intangible asset, under reacquired franchise rights, which the company did not amortize.

Krispy Kreme also allowed the Michigan franchise’stop executive remain employedat the company to after the deai,but shortly after the deal was completed, that executiveleft. In accordance with a severance agreement. this forced Ifuispy Kreme to pay the executive an additional $5 million, an expensethe company also rolled into the unamortized-asset categoryas reacquired franchiserights. The company denied any wron-gdoingwith this practice, maintainingit had a c c o u n te dfo r i ts franchi se acqui si ti onsi n accordance w i th general l yaccept ed accountin-e principles (GAAP).

On July 29, however,the company disclosed that th e U ‘ S’ S e c u ri t i esand E xchan-9e ommi ssi on(S E C ) C had l aunchedan i nfor m al i n v e s ti g a ti o n l a ted to ” franchi se reacqui si ti ons re and the company’ sprevi o usly announced reductionin earnin-qs guidance. “Observers remainedskeptical. “Krispy Kre me ‘ s a c c o u n t i ngfor franchi se acqui si ti onsi s the most a-ggressi ve e have w tound,” said one analyst at the time. “We surveyed l8 publicly tradedcompanies with tranchiseoperations,four of which had rerrcquired franchises, and they haci amortizedthem- That clearly seemslike the right thin-e to do. 2 Over the previous three years, Krispy Kreme had recorded$ 174. 5 million as intangibieassets (reacquired franchiserights), which the company was not requiredto amortize. On the date of the SEC announcement, Krispy Kr. -. ‘, sharesfeil anoth l5vo, clcsing at er $ 1 5 . 7 1a s h a r e . Analysts’ Reactions Since the heady days of 2001, when 80vo of the equity analysrsfollowing Krispy Kreme were making buy recommendations the company’s for shares, conventional the wisdom about the company had changed. By the time the Wall

Street Journal published the article about Krispy K-reme’sfranchise-reacquisition accountin-q practices in Ma;’ 2004, only 25vo of the anaiysts foliowing Krispy Kreme were recommending the company as a buy; another 50% had. do*ngr-adedthe stcck to a hold. Exhibits 4 and 5 provide tablesof aggregate analysts’recommendations and EpS (earningsper share)estimates. Krispy Kreme’s troublesmounted As during the secondhalf of 2004, anaiystsbecameincreasinglypessimisticabout the stock: a’Dtd s”*. one Say Doughnuts? yes. he sEC. ” New york Times,3OJutv 2004. Cese 7 Krispy Kreme Doughnurs,Iirc. 105 Analyst John lvankoe, J. P. Morgan Inc. Securities, Comment ln additionto the possibility an earningsrestatement, believemany of we problems persist,exclusive any “low-carb” fundamental of impact. Declining new-store volumesare indicative a worseninginvestment of model,and we believerestructured store-development contracts, a srnaller storeformat,and reducedfees chargedfor equipmentand ingredients are sold to franchises necessary.

We believethat the challenges KKD faces,includingmargincompression, lowerreturns,an SEC investigation, productsaturation, and currently positive outweigh company’s the drivers. addition,sharesof KKD are ln tradingat 16. 6x CY05 earningsversusits 15% growthrate. As such, we rate KKD shares HOLD. KrispyKreme’sbalancesheetbecamebloatedover the past two yearsby goodwillthat will likelyneed to be writtendown. As a result, acquisition KKD’sreturnon invested capitalhas plungedto about 107oversus ‘18% two yearsago priorto these acquisitions.

We’d view a balance portionof the sheetwrite-down, including eliminating significant a franchiserights,” a first step in the as $170+ millionin “reacquired rightdirection. In our opinion, management not focused operations way it was on the shouldhave been. As a result,too many unitswere openedin poor locations the companytripledits unit base since 2000. Additionally, as we believethat franchisees were not trainedproperlyas to how best to run their off-premises business. a result,we believemany unitsare As losingmoneyoff-premises, franchisees not motivated grow and are to thatbusiness. lso appears us that basicblocking lt to and tackling, execuiion, and cost discipline were seriously lackingin both the company and franchise svstems,resultinq inefficiencies. in Date July 29, 2004 JonathanM. Waite, KeyBancCapital Markets John S. Glass, CIBCWorld Markets Oct. 12, 2004 Nov. 8, 2004 GlennM. Guard, LeggMason 2004 Nov. 23, As the headlines about the SEC investigation and Krispy Kreme’s other management issues continued (e. g. , Ktispy Kreme’s chief operating officer stepped down on August 16,2004), observeis looked more critically at the fundamentals of kirpy Kreme’s business.

In September, the Wall Street Journal published an article that focused atterrtion on the company’s growth: The biggest problem for Krispy Kreme may be that the company grew too quickly and diluted its cult statusby selling its doughnutsin too many outlets,while trying to impress Wall Street. The number of Krispy Kreme shops has nearly tripled since early 2000, with 427 storesin 45 states and four foreign countriss. Some 20,000 supermarkets, convenience stores,truck stops. and other outsidelocationsalso sell the company’sdoughnuts.

Another issueis that Krispy Kreme has relied for a significantchunk of profitson high prcfit-margin equipmentthat it requiresfranchiseesto buy for each new store. its profits have also beentied to growth in the number of franchisedstores, because the upfront fee of each must pa,,,. 3 Jountc;L3 September “‘sticky Situation,”lVali Streer 2C04. Part Two FinancialAnalysis and Forecasting In September 2004, Krispy Kreme annollncedthat it would reduceits number of new storesfor the year to abor-rt from the previously announced120. 60 f Restatement

Announced On January4,2005, Krispy Kreme’s board of directorsannoLlnced the company’s that previously issuedfinancial statements for the fiscal year ended February 1,2004 (FY2004) would be restated “colrect certain errors. “The board determined to that the adjustments, which principally relatedto the company’s”accountingfor the acquisitions of certain franchisees,” would reduce pretax income for Ft’2004 by between$6. 2 million and $8. t million. The company also expectedto restateits financial statements for the first and secondquartersof FY2005.

Krispy Kreme also said it would delay the filing of its financial reports until the SEC’s investigation had been resolvedand the company’sown internalinquiry was complete. However,the failure of the company to provide its lenderswith financial statements January14,2005, could constitutea defaultunder the company’s by $150-million credit facility. In the event of such a default,Krispy Kreme’s bankshad the ri-ehtto terminate the facility and to demand immediate payment for any outstandingarnounts. Ktispy Kreme’s failure to file timely reportsalso placedthe company at risk of having its stock delistedfrom the New York Stock Exchan_9e (NYSE).

By the end of the next day, Krispy Kreme’s shareswere trading at less than $10 a share. Iv{ostanalysts felt thet Krispy Kreme’s lenderswoLrldgrant the corrrpany waiveia on its credit-facility default. and few felt the company was truly at risk of being delisted from the NYSE. The board’s announcement, however,servedonly to raise more qr. restions about the company. Since August 2003, the companyhad lost nearl;l $2. 5 billion in its market value of equity. Exhibit 6 illLrstrates stock-pricepatterns the for Krispy Kreme relative to the S&P 500 Composite Index. Were the revelations about the company’sfranchiseaccountingpracticessuffi. ient drive that mirch value to out of the stock? Were there deeperissuesat Krispy Kreme that deservedscrutiny? Exhibits 7, 8, and 9 provide analyticalfinancial ratios for Krispy’Kreme and a group of comparablecompanies the franchisefood-serviceindustry. in EXHIBIT t Statements I Income ($US thousands, except per-share amounts ) Three Months Ended May 5, 2003 148,660 112,480 8,902 4,1 1 0 (525) May 2, 2004 184,356 141,383 10,664 6,1 0 3 Three Months Ended Jan. 30, 2000 220,243 190,003 14,856 4,546 Jan. 28, 2001 300,715 250,690 20,061 6,457 Feb. 3, 2002 394,354 316,946 27,562 7,959 Feb. , 2003 491,549 3 8 1, 4 8 9 28,897 12,271 9,075 Feb. 1, 2004 665,592 507,396 36,912 19,723 (525) lncome Statement Total revenues expenses Operating Generaland administrative expenses and Depreciation expenses amortization award Arbitration Provision restructuring for charges and lmpairment closingcosts Incomefrom operations ihcome Interest Interest expense Equityloss in joint ventures Minorityinterest Otherexpense,nef lncomebeforeincometaxes for Provision incometaxes Discontinued operationsl Net income per earnings share Diluted Shareprice (fiscalyear close) Numberof shares (milliong) outstanding

Aug. 3, 2003 159,176 120,573 9,060 4,536 Aug. 1, 2004 177448 , 145,633 11,845 6,328 ‘l0,B3B 293 (1,525) 23,507 2,325 (607) (706) (716) (20) 23,783 9,058 14,725 o. 27 16. 22 41,887 2,980 (337) (602) (1,147) (235) 42,546 16,168 26,378 0. 45 39. 85 58. 6 59,817 1,966 ( 1, 7 8 1 ) (2,008) (2,287) (es4) 54,773 2 1, 2 9 5 33,478 0. 56 30. 41 6()R 102,086 921 (4,409) (1,836) (2,072) (13) 94,677 37,590 57,087 0,92 35. 64 62. 1 23,702 227 (866) (6e4) (616) (25) 21,728 8,588 13,140 7,543 ‘18,636 176 (1,433) (575) (126) (156) 16,522 6,675 34. 85 (24,438 (0. 38) 1,802 25,00;7 205 (ee7) (802) (616) (343) 22,454 9,014 439 13,001 11,840 226 (1,366) (3ee) 267 114 10,682 4,438 480 5,764 0. 09 9,606 3,650 5,956 0. 15 o. 22 o. 21 39. 7 54. 5 60. 7 63. 6 62. 1 63. 4 lRgsulting of from divestiture MontanaMills. (SEC). Commission and Exchange Sourceof data:Companyfilingswith the Securities { Part Two FinancialAnalysis and Forecasting EXHIBIT 2 | BalanceSheets FiscalYear Ended ThreerlVlonths Ended Feb. 1, 2004 M a Y2 , 2004 Aug. 1, 2004 in thousands) ASSETS Current Assets: Cash and cash equivalents Short-terminvestments Accountsreceivable Accountsreceivable, affiliates Other receivables Notes receivable, affiliates Inventories Prepaidexpenses Incometaxes refundable Deferredincometaxes Assets held for sale Total current assets Property and equipment, net Deferredincometaxes Long-terminvestments Long-term notesreceivable. affiliates Investments unconsolidated in jointventures Reacquiredranchise f rights, goodwill, otherintangibles Other assets Total assets Jan. 30, 2000 Jan. 28, 2001 Feb. 3, 2002 Feb. 2, 2003 3,183 0 17,965 ‘1,608 794 00 9,979 3,148 861 3,500 4 1. 3 S 60,584 i,398 0 00 7, 0 2 6 18,103 19,855 2,599 2,279 12,031 1,909 3,809 67. 61 1 21,904 15,292 26,894 9,017 2,771 UU 16,159 2,591 2,534 4,607 32,203 22,976 34,373 11,062 884 24,365 3,478 1,963 9,824 20,300 45,283 2A,482 2,363 458 28,573 5,399 7, 9 4 6 6,453 36,856 13,715 47,434 20,740 3,169 4,404 32,974 4,675 7, 4 4 9 13,280 3,374 19,309 44,329 19,933 4,868 5,440 33,076 6,749 8,139 20,005 3,325 1 0 1 7 6 9 1 4 1, 1 2 E . 78,340 112,577 202,558 0000 12,700 4,314 17,877 0 ) R27 151 214 165. 173 . 174. 1 3 1 281,103 301,160 297,154 0 7,609 12,426 175,957 9,456 660,664 2,988 10,728 176,078 12,315 654,483 2,925 9,921 176,045 10,390 661,608 ,000 6,87. 1 49,354 5,232 410,487 3,400 16,621 8,309 255,376 00 1,938 104,958 4,838 171,493 Case 7 Krispy Krerne Doughnuts,Inc. 109 EXHIBIT 2 | BalanceSheets (continued) FiscalYear Ended Jan. 30, 2000 Jan. 28, 2001 Feb. 3, 2OO2 Feb. 2, 2003 Feb. 1, 2004 Three Months/ Ended M a y2 , 2004 Aug. 1, 20A4 (in thousands) LIABILITIES AND SHAREHOLDERS’ EQUITY Gurrent Liabilities: p Accounts ayable 13,106 8,211 B o o ko v e r d r a f t 0 5,147 ‘14,080 Accruedexpenses 21,243 Arbitrationaward 0 0 Revolving of credit line 0 3,526 Currentmaturities of long-term debt 2,400 0 Short-termdebt 0 0 fncometaxes payable 41 0 Total current liabilities 29. 86 inccme Deferred taxes 0 (unpaid) Compensation deferred 990 Revolving linesof credit 0 Long-term debt,net of current portion 20502 Accruedrestructuring expenses 4,259 Otherlong-term obligations 1,866 Total long-term liabilities M i n o r i t yn t e r e s t i SHAREHOLDERS’ EQUITY: Commonstock,no par value, 300,000sharesauthorized; issuedand outstanding Commonstock,10 par valuq 1,000sharesauthorized; issuedand outstanding Paid-in capital Unearned compensation Notesreceivable, employees Nonqualified employee benefit plan assets Nonqualified employee benefit plan liability Accurnulated other comprehensive income(loss) Retained earnings 27,617 38. 168 579 1,106 0 0 3,109 1,735 6,529 1, 1 1 7 12,095 9,107 26,729 0 3,871 731 0 0 52. 533 3,930 0 0 2 3,91 0 4,843 12,685 2,491 ‘14,055 11,375 20,981 9,075 0 3,301 900 0 59. 687 9,849 0 7,288 49,900 0 5,218 72,255 5. 193 18,784 8,123 23,744 0 0 2,842 0 0 53. 493 6,374 0 87,000 48,056 0 1’1 1 ,21 152,641 2,323 18,866 12,670 27,107 18,817 13,107 32,249 4,663 5,566 63. 306 16,468 72,000 58,469 10,774 157,711 2,815 69. 739 25,564 62,000 50,135 12,078 149,777 2,593 85,060 121,052 173,112 294,477 296,812 299,865 ,670 10,805 (2,547) (188) (2,349) (126) 126 609 42,547 125,579 171,493 (186) (2,580) (138) 138 456 68,925 187,667 255,376 (119) (558) (33e) 339 (1,486) 1A2,403 273,352 410,487 (62) (383) (369) 369 (1,315) 159,490 452,207 660,664 (47) (383) (264) 261 (783) 135,052 430,651 654,483 (31) (383) (264) 264 (76e) 140,816 439,499 661,608 34,827 Total sharehoiders’ equity 47,755 Total liabilities and shareholders’equity 104,958 Source clata: of (SEC)i Companyfilingswith the Securities and Exchange Commission 1. 10 Part Two FinancialAnalysis and Forecastins EXHTBIT 3 Store growth Total company factory stores Beginning period of Storesopenings Storeclosings Storesacquiredfrom franchisees End of period Net change 7″ year-over-yeargrowth Total franchised factory stores Beginning period of Unitopenings Unit closings Storestransferred company to End of period Net change yea ? 6 r-over-year growth Total factory stores Beginning period of Storeopenings Storeclosings End of period Net change 7″ year-over-year growth % of total stores Company-owned Franchised Source of data: Company reports,case writefs Jan. 30, 2000 Jan. 28, 2001 Feb. 3, 2002 Feb. 2, 2003 F e b . 1 , 2004 61 z 5B o oo ‘7 I (5) 0 58 (3) (3) 0 63 5 9% 86 28 (3) 0 11 1 25 29″r'” 144 36 (6) 174 30 21% 36. 2% 63. 8% (2) ‘7 12 19% 111 41 (2) (7) 143 32 29% 174 48 (4) 218 44 25% 34. 4% 65. 6% 75 14 (3) 13 99 24 32% 143 49 (2) ( 13 ) 177 34 a . t o/ z. -f /o 99 28 (2) 16 141 42 42″,/o 177 58 (3) (16) 216 39 aao. z. z o 70 19 (3) 0 B6 ‘131 1l 218 63 27e 8e (8) .IAA la- (s) 276 58 27% 35. 9% 64. 1Yo (sl 357 81 29,”a 39. 5% 60. 5% 13 40. % 59. 7″/” analvsis. Case 7 Krispy Kreme Doughnuru,Inc EXI{I8lT 4 | Analysts’Recommendations Percentage Flecommending: Period 14-Jun-01 19-Jul-01 16-Aug-01 20-Sep-01 18-Oct-01 15-Nov-O1 20-Dec-01 17-Jan-02 14-Feb-02 14-Mar-02 1B-Apr-02 16-May-02 20-Jun-02 1B-Jul-O2 15-Aug-02 19-Sep-02 17-Qct-02 14-Nov-02 ’19-Dec-O2 16-Jan-03 20-Feb-03 2O-t’;! ar-03 17-Apr-03 15-tvlay-O3 19-Jun-03 17-Jul-03 14-Aug-03 18-Sep-03 16-Oct-03 20-Nov-03 18-Dec-03 15-Jan-04 19-Feb{4 1B-Mar-04 15-Apr-04 20-May-04 17-Jun-M 15-Jul-04 19-Aug-04 16-Sep-04 14-Oct-04 ‘lB-Nov-04 16-Dec-04 20-Jan-05 Buy 80. 0% 80. 0% 80. 0% 80. 0% 80. 0% 80. 0% 80. 0% 66. 7% 57. 1% 71. 4″/” 66. “/” 66. 7% 71. 4″/” 71. 4% 71. 4% 66. 7% 57. 1% 57]% 50. 0% 50. 0% 625% 62. 5% 62. 5% 55. 6% 66. 7% 80. 0% 83. 3% 66. 7″/” 66. 7% 66. 7% 42. 9″/o 42. 9% 28. 6% 28. 6″/” 375% 25. 0% 25. 0% 33. 3ol” 28. 6″/” 25. O% 14. 3y” 14. 3% 14. 3″/” 14. 3″/” Sell 24. 00/” 20. o% 20. 0″/” 20. 0% 20. 0% 20. 0% 20. 0/” 33. 3% 28. 60/” 28. 6% 3s. 3% 33. 3% 28. 6% 28. 6% 28. 6% 33. 39′. 28″6% 28. 6% 125% 12. 5% 12. 5% 12. 5. L 12. 5% 11. 1% 0. 0% 0. 0% 0. 0% 16. 7″k 16-7″/” 16. 7″/” 14. 3/” 14. 3/” 14. 3k 14. 3% 25. O% 25. Ok 25. 4/” 11. 10/” 28. 6k 37. 5% 42. 9% 42. 9″/o 57. 1% 57. 1″/. Hold 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 14. 3% 0. 0% O. 0% 0. % 0. 0% 0. 0% 0. 0% 0. A% 14. 3% 14. 3/” 37. 5% 37. 5’/L 25. O% 25. 0% 25. 0% 33. 3% 33. 3% 20. a% 16. 7″k 16. 7% 16. 7% 16. 7% 42. 9″/o 42. 9% 57. 1% 57. 1% 37. 5% 50. 0% 50. 0% 55. 6% 42. 9% 37. 5% 42. 9″/” 42. 9% 28. 6% 28. 6% Sourceof data:liBlE/S(Thomson Financial/First Call). tL2 Part Two FinencialAnalysis and Forecasting EXH|BIT 5 | Consensus EPSEstimates Estimate (Mean) $ 0. s8 $ 0. 43 $ 0. 41 $ 0. 44 $ 0. 43 $ 0. 62 $ 0. 63 $ 0. 63 $ 0. 63 $ o. oa $ 0. 64 $ 0. 63 $ 0. 66 s u. 05 $ 0. 66 $ 0. 87 $ 0. 8e $ 0. 90 $ 0. 90 $ 0. 9i $ 0. 91 $ 0. 92 $ 1. 17 $ 1. 00 $ 0. 9e $ 0. 98 $ 0. 92 $ 0. 59 $ 0. 69 $ 0. 65 $ 0. 58 $ 0. 45 EstimateDate -Jul-01 24-Aug-01 25-Oct-01 16-Nov-01 21-Dec-O1 8-Mar-02 24-May-02 3-Jun-02 1-Jul-02 29-Aug-02 3-Sep-02 B-Oct-02 22-Nov-02 10-Jan-03 14-Feb-03 20-Mar-03 29-May-03 30-Jul-03 21-Aug-03 15-Sep-03 17-Dec-03 27-Jan-04 10-Mar-04 7-May-Q 26-May-04 24-iun-O4 16-Aug-04 27-Aug-Q 10-Sep-04 13-Sep-04 3-Nov-04 23-Nov-04 Source o{ data |/B/E/S(ThomsonFinancial/First Call). Case 7 IncKrispy Kreme Dor-rghnuts, 113 EXHIBIT 6 6. 00 5. 00 o | Stock-Price PatternsRelative the S 500 Compositelndex to q 4. 00 ll o o lo sf 3. 00 2. 00 1. 00 0. 00 x o E u,%i1″$. . $of o$”$’$. $. $’ … $”$of Source of data: Datastream. +r EXHIBIT 7 Financial Ratiosfor KrispyKreme | Analytical Fiscal Year Ended Jan. 30, 2000 Jan. 28, 2001 Feb. 3, 2002 Feb. 2, 2003 Feb. 1, 2OO4 Ratio definitions

Liquidityratlos ratio Quick{acid-test} ratio Curr€nt Leverage ratios D€bt-to equily(book) D€bt-to-capital Times inlerest earned Asset6 equity to Aclivity ratios Receivablss turnover lnventory turnover Assetturnover Cashturnover Profltablllty ratlob Return assets on Relurn equity on profitmargin Operating Netprofitmargin 1. 05 1. 39 47. 96o/. 32. 417. 7. 11 2. 20 10. 81 19,04 2,lO 69. 19 5. 676/” I 12,47″/” 4. 92″/” 2. 70o/” 1. 46 1,’77 0. 00% 0. 00v. 38. 73 L36 12. 16 20. a4 1. 75 42. 80 8. 59″/” 11. 72″/” 7. A2″/” 4. 9o% 1. 63 1. 94 2. 47″/” 2. 41″/” 124. 29 1. 36 10. 19 19. 61 1. 54 18. 00 10. 33% 14. 06% 10. 62V” 6. 69% 1. 96 2. 36 19. 46% 16. 29% 33. 59 1. 50 10. 61 15. 66 1. 20 15. 26 8. 16% 12. 25% 12. 17o/” 6. 81% 2. 72 3. 25 11. 26/. 10. 12% 23. 15 1. 46 9. 70 17. 76 1. 01 32. 79 A. 64/” 12. 62/o 15. 34″/” 8. 58’/. (current liab. assets-inventories)/curr current assetycurr. liab.

LTdebt/shareholders’ equity equity LTdebt/(shareholders’ + debt) EB|T/interest expense totalassewshareholders’ equity sales/accounts receivables costof goodssold/inventory sales’/total assets sal€6’/cash cashequivalents and netincome/asset$ equity netincome/shareholders’ sales operating income/net net income/sales (SEC) Sburceof data:Companyfilingswith the Securities and Exchange Commission EXHIBIT I Financial Ratios:Quick-Service Restaurants End of FY2003 at I Analytical Checkers $ 19 0 0. 96 1. 42 CKE $ 1, 4 1 3 Domino’s $1,333 0. 60 0. 99 Jack in the Box $2,058 0. 23 0. 63 6 1. 8 2 38. 20 5. 44 2. 50 71. 22 52. 83 1. 8 4 147. 12 Krispy Kreme $666 2. 72 3. 25 McDonald’s $17,141 0. 49 0. 76 Panera Bread $356 1. 34 1. 58 Papa Johns $e17 0. 33 o. 77 Sonic $447 0. 77 0. 92 CompanyName (millions) Sales-net Llquidity ratios Quick ratio Current ratio

Leverage ratios (%) LT debVequity Long-term debVtotal capital(%) Interest coverage beforetax Total assets/total equity Activity ratios Receivables turrtover lurnover Inventory Tctal assetturnover Cash turnover Profitabilityratios Returnon assets(%) Returnon equity(%) EBIT margin(%) Net profitmargin(%) nmf = not a meaningful figure. Yum Starbucks Wendy’s Brands $4,076 0. 76 1. 52 $3,149 0. 61 0. 88 $8,380 0. 26 0. 55 183. 57 64. 74 5. 79 5. 02 49. 73 91. 32 1. 52 46. 04 o. 47 Ll. /o 33. S7 25. 36 6. 99 1. 76 262. 97 (131. 07) 421. 90 72. 45 (0. 0e) 2. 05 (0. 62) 5. 2e 20. 63 46. 88 3. 16 40. 90 1 1. 2 6 10. 12 2 3 . 15 1. 46 9. 70 17. 76 1. 0 1 32. 79 77. 97 43. 81 6. 3 2j3 21. 56 89. 84 0. 69 41. 64 0. 00 0. 00 1,014. 10 1. 26 38. 30 62. 53 1 26. 98 38. 1 8. 93 14. 09 2. ‘,18 1. 83 50. 29 27. 49 44. 87 111. 24 2. F7 1. 00 11 0 . 7 3 4 0 . 3 1 0. 21 o. 21 nmf 1. 31 38. 44 ‘t 0. 58 1. 62 10. 84 39. 39 28. 26 9. 25 1. 80 65. 08 133. 39 ‘1. 50 12. 00 35. 15 59. 30 1. 75 38. 83 (5. e2) (31. 30) 3. 49 (3. 24) 32. 42 38. 75 1. 64 8. 74 28. 42 79. 58 1. 0 8 17. 12 12. 23 21. 55 8. 24 8. 32 I66 nml 13. 20 2. e1 6. 26 15. 65 6. 94 3. 58 8. 64 12. 62 15. 34 8. 58 5,91 12. 59 19. 62 8. 80 12. 46 15. 64 14. 02 8. 61 9. 79 2 1. 3 3 6. 38 3. 70 10. 75 13. 69 23. 42 11. 70 9. 83 12. 89 9. 48 6. 58 7. 46 13. 42 ‘f3. 35 7. 49 1 . 0 0 55. 18 12. 77 7. 37 Sourceof data: Standard& Poor’s Researchlnsight. (rl EXHTBIT I (continued| | Firms Descriptions Comparable of Papa John’s International,Inc. : Papa John’sis the #3 pizzachain,with 3,000pizzemarkets. PapaJohn’sowns and rias acrossthe UnitedStatesand in 17 international operates about20% of its locertions. drive-ins the UnitedStates,Sonic in Sonic Corp. : The largestchainof quick-service operatesabout 535 restaurantsand franchisesmore than 2,325 locationsin 30 states. operates retailer, and Starbucks Corp. : The world’s#1 specialty-coffee Starbucks licenses In Starmore than 8,500coffeeshopsin more than 30 countries. ddition, its bucksmarketsits coffeethroughgrocerystores,and licenses brandfor other food and beverageproducts. Wendy’s International,Inc. : Wendy’sis the #3 hambur[erchainby sales. There worldwide; about787″ of them are franchised. are almost6,700Wendy’sfestaurants in franchisers the YUM! Brands, Inc. : ‘/UM! Brandsis one of the largestfast-food in the world,trailing only McDonald’s overallsales. lt outnumbers burgergiant,how(The ever,in storelocations, with more than 33,000unitsin about 100 countries. mostof companyowns and operates almosta quarterof its storesand franchises the others. ) The company’s flagshipbrandsincludeKFC,PizzaHut, and Taco Bell. Food Restaurants Yum! also owns A&W All-American and LongJohn Silve/s. ts long-term multibranding strategy(offering more than one of its brandsat one site) has provensuccessful. is of Checkers Drive-in Restaurants,Inc. : Checkers the #1 operator drive-through restauranls, with more than 780 ownedand franchised locations. Nearly fast-food 30″/”oI its locationsare company-owned. operalorof quick-service food chains, CKE Restaurants,Inc. : CKE is a leading CKE owns and operates with about3,100locations. more than a thirdof its restaurants;the rest are operatedby franchisees. Domino’s Pizza,Inc. : Domino’s the world’s#2 pizzachain,with more than 7,750 is locaDomino’s storesare principally delivery in locations more than 50 countries. tionsand generally not have any dine-inseating. o over 2,000of its Jack in the Box Inc-: Jack in the Box opdrates and franchises are outletsin 17 states. Morethan 1,550localions companyflagship hamburger owned,whilethe rest are franchised. is companyby sales,with McDonald’sCorp. : McDonald’s the world’s#1 fast-food more than 31,000flagshiprestaurants servingburgersand friesin more than 100 Almost30% of its locations company-owned; othersare run by the countries. are franchisees. restaurant PaneraBread Company: PaneraBreadis a leaderin the quick-casual 70″/” business,with more than 740 bakerycaf6s in about 35 states. Approximalely of its locationsare operatedby franchisees. Inc. Sourceof data: Hoover’s. Case 7 Krispy Kreme Doughnuts,Inc. 117

EXHTB|T I Common-Sized s Restaurant Financial Statements: Limited-Service Averagesand Krispy Kreme (KKD) 2001 Balance Sheet: Assets (%) Cash & equivalents Trade receivables(net) Inventory All other current Totalcurrent Fixedassets(net) (net) Intangibles All other noncurrent Totalassets Balance Sheet: Liabilities & Equity (%) Notes payable,short-term Currentmaturity, long-term debt Tradepayables lncometaxespayable All othercurrent Totalcurrent Long-term debt Deferredtaxes All other non-current Shareholders’ equity Totalliabilities equity & Income Statement (%) Net safes Operating expenses Operaiingprofit (net) All otherexpenses Profitbeforetaxes 100. 56. 3 4. 0 t. J 2002 12. 4 0. 9 2. 6 19. 2 57. 0 14. 2 9. 6 100. 0 2003 13. 7 1. 4 3. 8 22. 4 Iz. o KKD2003 12. 8 1. 6 4. 0 z. o 21. 0 tr. ^ -7 | . 1.. ) J. l 10. 4 4. 3 8. 6 26. 4 42. 5 26. 6 a. J 11. 0 100. 0 10. 0 100. 0 4tr, 100. 0 4. 7 o. l 5. 6 6. 0 1A 5. 8 6. 8 9. 3 0. 3 14. 0 36. 4 4’1. 9 0. 1 8. 7 12. 9 100. 0 0. 0 0. 4 2. 8 0. 0 4. 8 8. 1 7. 3 1. 0 14. 9 68. 4 100. 0 9. 2 0. 2 13. 9 .)+. I 0. 2 16. 9 oo. I 40. 2 u. l 45. 6 0. 2 8. 3 9. 9 100. 0 4. 7 20. 9 100. 0 100. 0 55. 6 4. 7 1. 6 3. 0 100. 0 58. 1 4. 0 IA 100. 0 76. 2 15. 3 1. 1 14. 2 2. 7 2. 5 Sourceof data: Annual Statement Studr’es: 2004-2005,The Risk ManagementAssociation.

Arrow of God – Paper

Afrika Focus, Vol. 5, Nr. 3-4, 1989, pp. 153-165 CONFLICT AND ITS MANIFESTATIONS IN ACHEBE’S “ARROW OF GOD” Owen G. MORDAUNT English Department University of Nebraska at Omaha Omaga, Nebraska 68182-0175 USA SUMMARY Mordaunt describes how the Nigerian author Chinua Achebe deals with the problem ofpersonal conflict in his novel “Arrow of God”. The main character in this novel is Ezeulu, who is chiefpriest of the god Ulu, of the village of Umuaro. Ezeulu comes into conflict with himself in a quest to hold on to power despite his high age and the break-through of the British colonial administrators.

Ezeulu wants to control both his people and the British administrators. Ezeulu believes the clan will silently follow him and the British will respect him. Hereto he sends his son to the white man’s missionary school where the boy adopts the new religion and sacrileges his own. Ezeulu will not punish him despite the wishes of the clan. Achebe’s novel shows that men cannot fight societies’ will and that the latter can bring a man to insanity. KEYWORDS: English literature, Literature, Nigeria, Psychology.

As a foremost African novelist, Achebe has been of interest to several African literary critics, thus the plethora of works of criticism on his four novels, Things Fall Apart. Arrow of God. No longer at Ease, and A Man of the People. Among the best known critics are Obiechina, Bemth Lindfors, Abiola Irele, David Carrol, David Cook, G. D. Killam, G-C. M. Mutiso, Peter Nazareth, 153 Emmanuel Ngara, Benedict Chiaka Njoku, Eustace Palmer, and Shatto Gakwandi. Critics have looked at setting, style, conflict and characterization in terms of cultural, political and religious considerations.

The internal conflict of central characters, one of Achebe’s achievements, lies in his skill at the externalizing the conflict of his characters. To measure the quality of Achebe’s accomplishments, I will examine his second novel Arrow of God in some detail with reference to the central character. Arrow of God is not so much concerned with the society as with Ezeulu himself. He is established in a closely-knit society, and it is in his relationship with this community and also with other elements or factors in this setting that we are able to comprehend the problem that he is faced with. Ezeulu and his culture are one.

There exists a genuine struggle between Ezeulu and his rivals in his own tribe, the British administrators and Christian missionaries. But the struggle does not get down to the root of the matter: Arrow of God is not so much concerned with inter-tribal conflict, but with the chief priest of Ulu who is in conflict with himself. Whatever external forces are brought to bear upon his life are there only as objectifications of what actually goes on inside him. The story is set in an Igbo village in Nigeria during a time when colonial influence-British colonial rule and the inroads of missionary activity- is beginning to be felt.

This is the milieu in which we find the main character, Ezeulu, the chief priest of Ulu, the most powerful god of his Umuaro people, and, therefore, he is designated a special status in the society. He is part and parcel of this society, and it is difficult to study him apart from it. With such a rich and complex story, it is easy for the non-African reader to get lost in the forest of cultural verbiage and miss the focus of the story, thus interpreting it as a story whose main focus is village life as sugessted by the Times Literary Supplement (26).

True, there does seem to be a preponderance of village life, but this is the setting in which the central figure expresses his character, it is in this role, that of interpreting to Umuaro the will of the god and performing the two most significant rituals in the life of the people-the festivals of the Pumpkin Leaves and the New Yam. Ezeulu, the intermediary, is half black and half white, thus bridging the spirit and the human world (151). The novel opens with Ezeulu brooding over his eyesight “and that someday he would have to rely on someone else’s eyes as his grandfather had done 154 hen his sight failed” (1). Such a feeling is not unnatural; many people think about future incapacitations, but this scene establishes the tone for the novel and unveils Ezeulu’s internal conflict. The allusion here is that this impending blindness is a threat, for it will interfere with his ordering of religious festivals, and will even mean that his tribal influence will cease to be felt among his people if he fails to observe the progression of the moon. If his religious responsibility will be challenged, his political responsibility will be in danger.

He endeavors to console himself by imagining that he is as fit “as any young man, or better because young men were no longer what they used to be” (1). This gesture is indicative of his desire to maintain a perpetual authority over his tribe; he realizes that old age is beginning to tell him, but this he repudiates. In spite of all the tremendous power in his hands, he knows he depends on the supernatural forces whose ways nobody can understand; this perception renders him somewhat helpless. Even the choice of his successor is in the power of Ulu; therefore, his dependence on the deity is a threat to his authority.

Ezeulu’s authority can be asserted only when co-operation with the supernatural powers is established. Any thought which seeks to undermine his authority has grave psychological implications. Throughout the novel, we see him writing in anguish over his authority, haunted by fear that his power is in danger of being challenged. It is no wonder since he wields immense power over the year, the crops, and over the people, but “he named the day” and did not “choose” it, except for the feast of the pumpkin Leaves and for the New Yam feast.

He regards himself merely as a “watchman”: His power was no more than the power of a child over a goat that was said to be his. As long as the goat was alive it was his; he would find it food and take care of it. But the day it was slaughtered he would know who the real owner was. No! the Chief Priest of Ulu was more than that. If he should refuse to name the day there would be no festival-no planting and no reaping. But could he refuse? No Chief Priest had ever refused. So it could not be done. He would not dare. 3) Ezeulu is disconcerted by his thoughts “as though his enemy had spoken” (4). But then, toying with the word dare. , he convinces himself that no person in Umuaro can face him and tell him that he, Ezeulu, “dare not”. Obviously, Ezeulu is the type of character who will not give up the quest for solving his problem of authority; he will continue to probe, endeavoring to grapple with the situation. 155 His mind still persisted in trying to look closely at the nature of his power. What was it if everybody knew that it would never be used?

Better to say that it was not there, that it was no more than the power in the anus of the proud dog who tried to put out a furnace with his puny fart. (4) According to Cook (18), the novel “searches into the limits of individual power in a system controlled by tradition,” a situation that any traditionalist would be aware of, but Ezeulu refuses, in his mind, to be a mere puppet leader, who must execute his duties according to the dictates of his position. He has a conflict which he must deal with.

That is why, later in the text, he loses his equanimity: he no longer is content to see himself as ” merely a watchman” (3). He has of course assessed his situation in light of influences and changes brought to bear on his society. He, no doubt, is intrigued by the power of the white man, particularly the latter’s use of the firearm to quell the civil war between Umuaro and Okperi. In his dilemma, Ezeulu sends his son Oduche to the white man’s region on the assumption that the white man has come ” with great power and conquest, it was necessary that some people should learn the ways of his own deity… but] He also wanted to learn the white man’s wisdom… ” (47). Ezeulu has an ulterior motive for sending his son to the mission school; it is really for personal gain, not for the good of the society of which he is a part. What motivates him is the deep-seated fear of what he lacks: power. He indirectly exercises his shrewdness in this particular instance. He is at this point not aware of or does not even foresee any repercussion in making a decision contrary to the sanction of his people. In this way, he puts one foot in the new culture.

His people are of course vehemently opposed to this deliberate step because he is operating outside the collective solidarity of people who share common customs and beliefs and world view. This act brings him into conflict with his friend and confidant, Akuebue, but Ezeulu puts self-interest before the traditional group and its interests, thus Akuebue’s warning: “But if you send your son to join strangers in desecrating the land you will be alone. You may go and mark it on the wall to remind you that I said so”. (151) 156 These are strong words, but Ezeulu will not heed even the admonition of a close and wise friend. Who is to say when the land of Umuaro has been desecrated, you or I? ” Ezeulu’s mouth was shaped with haughty indifference. “As for being alone, do you think that it should be as familiar to me now as are dead bodies to the earth? My friend, don’t make me laugh. ” (151) Cook (18) notes that “Ezeulu’s isolation, whether we see it ordained or self-appointed, is particular to himself and sets him apart. ” His stubborness sets him apart as an individualist in a communal structure. Ezeulu encourages his son to attend the church school even though he himself is apprehensive about it.

He is indeed a person who is perceptive about what is going on around him; therefore, he tells Oduche that the world is changing, a phenomenon that intensifies his conflict, thus the purpose for sending his son to join the missionaries to be his “eye” there. If there is “nothing in it” , Oduche will return; if on the other hand , there is “something there”, Oduche will ” bring home his [Ezeulu’s] share”. (50, 51). At the back of Ezeulu’s mind is the thought that not befriending the white man may bring regret in the future instead of paying dividents.

Achebe, obviously, has created a character who is struggling to have it both ways-he has the perceptions and heart of an intelligent risk-taker in ideas. Oduche’s mother’s displeasure at her husband’s sacrificing of her son to the white man’s religion meets with utter defiance on his part, however persistently she endeavours to reason with him. He has the last word, believing that his decision is right. “How does it concern you what I do with my sons? You say you do not want Oduche to follow strange ways. Do you not know that in a great man’s household there must be people who follow all kinds of strange ways?

There must be good people and bad people, honest workers and thieves, peace-makers and destroyers; that is the mark of a great obi. In such a place whatever music you beat on your drum there is somebody who can dance to it”. (51) Achebe is indicating here that Ezeulu has become marginal in propounding ideas completely at variance with his culture’s norms, necessitated by the predicament in which he finds himself. As people belonging to a traditional society, Oduce’s mother and other members of his family, no doubt, have a clear understanding of what societal expectations are for different members 157 f the clan. Ezeulu’s family does not share the secrets of his worship or when he is in consultation with his god, but they know what should constitute the behavior expected of people in high places, particularly that of a chief priest, a religious leader, who is the official mediator between the people and the deity. Ezeulu’s family is both concerned and embarrassed, but they are powerless to deter the almost demented head of the family from turning a deaf ear to them and to society. His recalcitrance inevitably alienates him from the closest to him, his family.

A complication in the plot develops when Ezeulu’s plan backfires; this is when Oduche, in the eye’s of the community, commits sacrilege: the imprisoning of the sacred python. Oduche at this point has become a zealous convert to the new religion. His father is intensely disturbed, as this confirms the potency of the white man’s religion since it enters the boy’s head and heart. The vehement struggle of the sacred python in the box prison could be interpreted as symbolizing the internal turmoil that Ezeulu is experiencing.

Ezeulu’s desire is to maintain his authority and to assert it- an attempt to escape reality. What Achebe has accomplished here is the delineation of a character whose apparent craftiness has relegated him to a situation where he is living an inauthentic life, in alienation with himself, and, therefore, estranged to the community to which he belongs, and even to the god whose will he pretends to know. He is living in a constant state of anxiety over his waning control, but he does not fully realize the extent of his condition.

The odds are against him so that he is impotent to direct the conduct of the people of Umuaro. The apex of his conflict is reached when he refuses to eat the holy yams, thus bringing his vengeance upon all his people; even the innocent, those who are helpless, have to suffer. The cultural clash, the domestic contention, and other problems and forces serve to externalize the conflict which is gnawing at the chief priest’s innermost being. His household is divided; his sons no longer show the traditional respect due to a father, and his wives are at loggerheads with one another.

Oduche has become the source of division, as well as Nwafu, the favorite son whom Ezeulu assumes will be Ulu’s choice successor to the priesthood. Ezeulu’s impotence at restoring order to his own household suggests an inability at unifying the people of Umuaro and Okperi? He fails at unification but refuses to admit defeat. At the meeting of the elders concerning the Umuaro-Okperi land dispute, what he says is futile. He has 158 lost all support; the people side with Nwaka whose harangue of Ezeulu’s speech meets with their approval.

Nwaka inevitably becomes the voice of the tribe since the chief priest’s words no longer carry any weight. The long uproar that followed was largely of appropriation. Nwaka had totally destroyed Ezeulu’s speech… Speaker after speaker rose and spoke to the assembly until it was clear that all six villages stood behind Nwaka. (18,19) Nwaka is a rival of Ezeulu’s and of course a personal enemy, a man of high standing in the community and a friend of Ezidmili, the chief priest of Edemili, the oldest deity whose conflict with Ulu is chronic.

This aspect of the story includes an aspect of the conflict in the story which involves the deities. According to Palmer (88) … the religious conflict intensifies the conflict within the traditional society itself… The conflict is really a struggle for authority within the clan, starting as a struggle for supremacy between the chief priests of two deities, Ezidmili, the chief priest of Edemili, and Ezeulu, the chief priest of Ulu, the main clan deity. Since Ezidemili dares not openly, he hides behind Nwaka the most powerful and wealthiest layman, one of the three surviving members who have taken all the titles of the clan.

Nwaka comes from the largest village, Umunneora, and therefore naturally thinks that the leadership of the clan ought to be his. Hence a struggle for political battle, with Nwaka and Ezeulu as protagonists. Ulu cannot stand a chance in the face of such circumstances. But it is Ezeulu himself who defies Ulu by his unscrupulous actions. His suspected dealings with the white man add to Ezidemili’s fury when Oduche, the son of the ‘sell-out’, imprisons the sacred python. It is in connection with the clash between Okperi and Umuaro that Nwaka makes his voice heard.

The chief priest of Ulu was himself embroiled in this acute affair and sided with the white man in favor of Okperi. All these cultural collisions are brought to light in the conflict between Ezeulu and Nwaka; they accumulate with such momentum that Ezeulu resorts to self- isolation, refusing any advice or assistance. We have seen how he has refused to heed his friend Akuebue’s advice. Later on, village elders make representations to Ezeulu in a bid to persuade him to put the interests of the clan first. Some elders endeavor to remind him of his responsibility to the “Ezeulu,” said Anichebe Udeozo. 59 ” We know that such a thing has never been done before but never before has the white man taken the Chief Priest away. These are not the times we used to know and we must meet them as they come or he rolled in the dust. I want you to look round this room and tell me what you see. Do you think there is another Umuaro outside this hut now? ” “No, you are Umuaro,” said Ezeulu. “Yes, we are Umuaro. Therefore listen to what I am going to say. Umuaro is now asking you to go and eat those remaining yams today and name the day of the harvest Do you hear me well?

I said go and eat those yams today, not tomorrow; and if Ulu says we have committed an abomination let it be on the heads of the ten of us here. You will be free because we have set you to it, and the person who sets a child to catch a shrew should also find him water to wash the odor from his hand. We shall find you the water. Umuaro, have I spoken well? ” “You have said everything, we shall take the punishment. ” “Leaders of Umuaro do not say that I am treating your words with contempt; it is not my wish to do so. But you cannot say: do what is not done and we will take the blame.

I am the Chief Priest of Ulu and what I have told you is his will not mine… But this is not my doing. The gods sometimes use us as a whip. ” (237-238) Ezeulu is requested by the elders to go back to Ulu to ask him how they might appease him. The chief priest consults the deity but actually does not hear what the god is saying. Instead, he is so consumed by introspection that he is distracted by the ringing of the bell of Oduche’s mission school. This is serious indeed; whatever Ezeulu feels or does affects the clan. The confusion he is in is not only personal but social as well.

His refusal to eat the yams because he believes he is the only one enlightened by the deity and the only one who is in power to make decisions on behalf of the people is partly a pretext to wreak vengeance on the people. The reader is aware of the fact that, on account of the white man’s interference in traditional African affairs, disorder has set in; the imprisonment of Ezeulu means that he is not able to execute his traditional responsibilities according to schedule. The tragedy of Umuaro is hence reflected in the tragedy of Ezeulu. What he experiences is also Umuaro’s experience-his personal sufferings, and o on, as the representative of the wider community for which he is responsible. When we see him as a 160 demented high priest at the end of the novel, it is clear that the society itself is in confusion; the former traditional solidarity has been broken. Obiechina (85) makes some salient comments relevant to the functioning of the traditional set up: Social and political institutions of the traditional society have perfected the art of exacting conformity from the individual and discouraging deviations and subversion of the common will.

In all their workings, these institutions emphasize the primacy of the group over the individuals who compose it. The careers of important characters like Okwonkwo (Things Fall Apart). Ezeulu (Arrow of god), and Araba (Panda) illustrate this primacy of the society over the individual. All of them are shown to be powerful, in their communities, the primacy of the latter is soon established. In the cases of Ezeulu and Araba, it is shown that the individual cannot find fulfillment outside the protective wing of his community. Ostracism is the dreaded, because it is the most effective, of all penal sanctions of the traditional society.

It is at the most critical period that the missionaries, the chief priest’s religious rivals, step in to exploit the situation. To them the disastrous condition of Umuaro is the work of Yahweh, and consequently they take every advantage of a situation which has already deteriorated. Ezeulu’s pride has precipitated destruction, not only to himself and the people but also to their religion and culture. The song of extermination which he referred to earlier in the novel has been fulfilled: “It is saying: Leave your yam, leave your cocoyam and come to church. That is what Udoche says. ” “Yes,” said Ezeulu thoughtfully. It tells them to leave their yam and their cocoyam, does it? The it is the song of extermination. ” (47) … the news spread that anyone who did not want to wait and see all his harvest ruined could take his offering to the god of the Christians who claimed to have power to protect such a person from the anger Ulu… there was no more laughter left in the people. (246) In his extremity many an Umuaro man had sent his son with a yam or two to offer to the new religion and bring back the promised immunity [i. e. protection from Ulu’s wrath] Thereafter, any yam that was harvested in the man’s field was harvested in the name of the son. 262) 161 “Paradoxically,” as Palmer (98) aptly puts it, “Ezeulu, who should have been the champion of his people’s faith, becomes the agent of destruction. ” The part played by the colonial officers in the struggle for Ezeulu’s authority is not that of rivals. How could they want to appoint him paramount chief if they were his rivals? The decision to appoint him paramount chief is consistent with the plan of the Britishto develop a system of indirect rule based on native institutions. Ezeulu is virtually the most likely candidate fortius position.

The white man has no regard for the traditional culture of Umuaro, and this signified by Ezeulu’s rejection of a warrant chieftaincy. Obviously, Winterbottom has chosen Ezeulu because he believes that the latter has supported the colonial government over the Umuaro-Okperi land problem. Winterbottom does not care to investigate the chief priest’s real motives for befriending him. Even Ezeulu’s position as chief priest does not make that much difference to the British. They are not interested in his authority, for they are concerned with the execution of their colonial duties for colonial ends.

The solidarity of the people of the villages means nothing to them as long as the natives do not fight among themselves and thus endanger the interests of the colonial authorities in England. The inroads of the white man is inevitable, but they do help the reader to see the intensity of Ezeulu’s conflict; they are as ineluctable as the manifestations of old age gradually creeping into the chief priest’s life. The lengthy detention of Ezeulu by a British officer gives Ezeulu time to contemplate his revenge on his people because they have accused him of befriending the white man and betraying them (181).

When he returns home, he receives a hero’s welcome, and this calms him, but when his god visits him, “his thoughts of reconciliation are blunted” (Palmer 75). Besides his lack of security, self-interest, and so on, what else can Ezeulu’s action be attributed to? Obviously the hand of fate has inflicted him with a touch of insanity, and there is enough evidence in the text to support this. According to Palmer (94), the theme of madness pervades the novel, thus reinforcing the idea that the insanity, which becomes more intense as a result of Obika’s death, is the climax of a progression.

Without this realization on the part of the reader, Ezeulu’s inflexibility in his decision to free his people from the bondage of starvation would seem strange. 162 “Perhaps Akuebue was the only man in Umuaro who knew that Ezeulu was not deliberately punishing the six villages as some people thought. He knew that the Chief Priest was helpless; that a thing greater than nje. had been caught in ntels. trap” (250). During Akuebue’s earlier encounter with Ezeulu, we are informed that what Ezeulu said “made him afraid and uneasy like one who encounters a madman laughing on a solitary path” (148).

Akuebue suspects Ezeulu’s madness. Interestingly enough, his mother was mad; Obika, Ezeulu’s pampered son, is alluded to as mad, and Moses Unachukwa refers to madness in the family. Moreover, Nwaka maintains that Ezeulu’s madness is inherited from his mother (198). Palmer (95) notes that “Achebe must have strewn so many references to madness in the text because he wanted us to believe that this is at least partly the cause of Ezeulu’s otherwise inexplicable course of conduct. ” But can Ezeulu’s tragedy be attributable only to insanity?

It is strange that in the end he is destroyed by the god whose directions he claims he accepts without any doubt. Akuebue believes that Ezeulu, even though proud and recalcitrant, would not falsify the decision of the god, but Ogbuefi Ofoka, on the other hand, is convinced that ” a priest like Ezeulu leads a god to ruin himself. ” Akuebue responds by saying that “perhaps a god like Ulu leads a priest to ruin himself (243). When Obika is killed, Ezeulu feels that Ulu has forsaken him. However, instead of blaming Ulu, we have to look closely at Ezeulu’s own actions, which are responsible for his tragedy.

Clearly, during his imprisonment, which occurred some time prior to his divining the will of Ulu, Ezeulu made up his mind never to look for the new moon. When he does hear Ulu’s voice, “his plan of revenge, a purely personal one caused largely by private pique, is already formed” (Palmer 98) . Ezeulu is so bound up by his own thoughts that he does not hear what Ulu is saying. What he says he hears is from his own cloudy mind. No wonder he assumes that he is merely “an arrow in the bow of his god” (219).

To him everything that happens is attributable to Ulu: Oduche’s imprisonment of the python-the boy could be an arrow in the god’s hand; the white man and his religion-agents of the god (219,220). Ezeulu, nevertheless, pays for stepping beyond the parameters set for him by the deity. It is a heavy price: the death of Obika. As far as the villagers were concerned, Ulu was their creation at a time when they formed a union as a protection against slave raids. Ulu replaced older village deities. To these people, the clan takes precedence over everything 163 lse; however, as Wren (94) points out, “the chief priest’s divination of the will of the god has set a course that could only lead to the destruction of the clan-but for the intervention of the church. ” Ulu belongs to the people, communally, and is responsible for them. Therefore, all Ezeulu’s actions are seen by the people as being sanctioned by the deity, actions that defy the clan. There evolves a definite conflict, and Ezeulu pays dearly for over-stepping the boundaries set for him by Ulu. He is driven to madness. Wren (95) notes: “ulu’s choice was between the clan and the priest…

Ulu chose the clan, as it was his nature to do. ” In the end the people of Umuaro see the outcome of all that has transpired. 164 WORKS CITED Achebe, Chinua. , Arrow of god. New York: Anchor Books, 1969. Carrol, David. , Chinua Achebe. London: Macmillan, 1980. Cook, David. , African Literature. A Critical View. Bristol: Longman, 1977. Gakwandi, Shatto Arthur. , The novel and Contemporary Experience in Africa. New York: Africana Publishing Company, 1980. Irele, Abiola. , “Chinua Achebe: the tragic conflict in his novels. ” Introduction to African Literature. Ed.

Ulli Beier. London: Longman, 1979. Killam, G. D. , The novels of Chinua Achebe. New York: Africana Publishing Corporation, 1969. Lindfors, Bemth. , “The palm oil with which Achebe’s words are eaten. ” African Literature Today. N e w York: Heinemann, 1972. Mutiso, G-C. M. , Socio- political Thought in African Literature: Weusi? New York: Barnes and Noble, 1974. Nazareth, Peter. An African View of Literature. Evanston, Dl: Northwestern Univ. Press, 1974. Ngara, Emmanuel. Stylistic Criticism and the African Novel. London: Heinemann, 1982. Njoku, Benedict Chiaka.

The four Novels of Chinua Achebe: A Critical Study. N e w York: Peter Lang, 1984. Obiechina, Emmanuel. Culture. Tradition and Society in the West African Novel. Cambridge: Cambridge Univ. Press, 1975. Palmer, Eustache. The Growth of the African Novel. London: Heinemann, 1979. Times Literary Supplement (26 March 1964) : 249. 165 Afrika Focus, Vol. 5, Nr. 3-4, 1989, pp. 166-174 COMMENTS ON MORD AUNT’S ARTICLE; ARROW OF GOD REVIEWED. 1. Chinua Achebe; an introducton Achebe was born on the 16th of November 1930 at Ogidi, a town east of Onitsha. He was the son of a Church Missionary Society catechist.

At the age of fourteen he was one of the few to be elected at the Government College at Umuahia. After graduating there he started to study medicine at University College at Ibadan. After a while he changed topics and started to devote himself to the study of English literature. He stayed in Ibadan from 1948 till 1953 and in this period he published his first writings in the local university paper, the “University Herald” (parts of them were reprinted in 1973 in “Girls at War and other Stories”). After his university education he tought for one year and then embarked on a 12 year carriere at the Nigerian Broadcasting Corporation.

During that time, in 1958 to be precise, he published his first novel “Things Fall Apart”. This was not only the beginning of his literary life but also the first step towards international recognition of the West-African novel in the English language. Achebe’s role in the development of the African novel in the English language is quite significant. Not only was he one of the first writers to make his appearance on the literary scene but he influenced quite a number of young writers of the next generation. How was this about to happen?

The development of a literary tradition within the Igbo region of Nigeria can be attributed to four intrinsic and historical elements. Namely: slavery, the colonial era, the mission and educational system and internal elements characteristic to the Igbo society which all together formed the background of the development of the literature (for an elaborate discussion of these elements see Bogers 1987). The first signs of written literature are to be found within the missionary educational system. These examples from their oral tradition were used for 166 educational purposes.

Apart from these there were the inevitable Bible translations used for missionary as well as educational purposes. A second important stimulans towards the creation of a literature was the rise of the Onitsha Market literature. The Second World War and its aftermath gave rise to the development of a pamphlet kind of literature in the city of Onitsha. First there were several popular newspapers and “they provided a platform fornew writers who would not have had the confidence nor the opportunity to be published in the previous decades. ” (Obiechina 1973: 7).

These newspapers gave rise to an increased distribution of “Indian and Victorian pulpstore pulp magazine fiction which became a model for the pamphlet literature. ” (Obiechina 1973: 4). From there it was a small step towards the development of an autochtone version of this kind of literature. Popular and African in content but certainly European in form. Several writers started their career in publishing these pamphlets and later turned to writing novels. The most famous one among these is Cyprian Ekwensi who made his debut with “When Love Whispers” in 1947.

The reading audience consisted mainly of grammar and elementary school boys and girls, lowerlevel office workers and journalists, primary school teachers traders, mechanics, taxi-drivers, farmers and the new literates who attend adult education and evening schools. University graduates and people with post-grammar-school education tend to ignore this literature in favour of the more sophisticated novels, drama and poetry. (Obiechina 1973: 10) In a latter stage, say the 1950ies, we see the rise of the novel in south-east Nigeria and with it were connected two names each representing a different branch within this kind of literature.

The urban type, as I would like to call it, with as its main representative Cyprian Ekwensi and the rural type with Chinua Achebe. Ekwensi finds his inspiration within his direct urban environment; movies, daily city life, dedective stories, etc.. Achebe on the other hand returns to the tradition, the history of his people, colonisation and the oral history. His first 167 novel “Things Fall Apart” gives us the story of a people torn apart by the invasion of colonial rulers. But there is more, Achebe never forgets, in all his works, to point out that change and development were not the sole privileges of the whites.

In tradional societies (as far as this word is meaningful in this context) there are changes. There is no such thing as an inert society. People are constantly in a process of adapting and changing themselves to the adjusting questions of organisation and coherence of society. A perfect example of this theme we find back in “Arrows of God”, which I will discuss later. Both writers had more and less succesful adepts, who started writing along the literary paths they had created. To the urban type of writing one could include Egbuna with his “The Minister’s Daughter” and Ekwuru with his “Going to Storm” and “Songs of Steel”.

The rural type know people like Elechi Amadi with “The Great Ponds”, “The Slave” and “The Concubine”, Buchi Emecheta with “The Slave Girl” and Ulasi with “Many Things You No Understand” and “Many Things Begin for Change”. Now let us focus on the work of Chinua Achebe and more specifically on his “Arrow of Gods” (1964, page references are to the 1980 edition). In this part it is not my aim to criticise Ardounts article but rather to enlighten certain elements which are, as far as I am concerned important to understand the structure and meaning of the novel. 2.

Arrow of God “Arrow of God” is Achebe’s third novel after “Things Fall Apart” and “No Longer at Ease” (1960). In this novel Achebe returns to the setting of his first novel, cross- references are made throughout the story, namely; a rural village in Igbo country. The story is set after the arrival of the British and the establishment of a mission. The basic theme of the book is, in my opinion, the mental and physical “decollage” of the town in which Ezeulu serves as a high priest. It is not as much the conflict between religions or the clash between two forms of government, although these are present on several levels.

There is also the 168 conflict between Ezeulu’s religious power and the earthly powers of society represented by its members and furthermore there is the internal religious conflict within Ezeulu himself. Last but not least there is the conflict within the colonial camp. The white administrator Winterbottom is constantly frustrated by the colonial administration who pretends to know more about the situation. The great tragedy of British colonial administration was that the man on the spot knew his African and knew what he was talking about, found himself constantly being overruled by starred-eyed fellows at headquarters. AoG:56) The refusal of Ezeulu to represent his people and act as a spokesman for his people brings him into conflict with the colonial administration. This administration refuses to accept that there is no centralised power within the Igbo community. Winterbottom is aware of this problem but bound hands and feet by his administration uses the only and last solution which is available to him, he imprisons Ezeulu. Thus creating a religious problem: the naming of the Yam festival. This brings us to the second level of conflict. Ezeulu has no earthly powers, he is a priest and chosen by the people.

His priestly powers are given and taken by the people. Their god had taken sides with them against their headstrong and ambitious priest and thus upheld the wisdom of their ancestors – that no man however great was greater than his people; that no one even won judgement against his clan. (AoG: 230) In sending his son to the missionaries he is coming into conflict with his role within society. As Mordaunt shows clearly that within Ezeulu’s lust to send his son to go and if there is something in the white man’s religion and lifestyle to get, there is a breach of norms.

Ezeulu’s first and only responsability is the mental/religious well-being of his people. All his other needs 169 would be the problem of the community, they were responsable for his physical needs and demands. It is only when Ezeulu chooses and acts accordingly to his own will, that he steps out of the boundaries laid there by his society and of which he is a member. This is the basic conflict, all other conflicts merely set the scene where the action is going on. The “traditional” norms and values have, up till then, adapted themselves to the altering situations.

This is mainly so because the villages have as a whole decided as one voice what to do in order to face the changing situations. In this point I have to disagree with Mordaunt. It is not as much as an internal conflict which brings Ezeulu to his final ordeal but rather his refusal to accept the voice of the people. The conflict Ezeulu faces lies between his own greed and the function he has to perform within society. The role society has bestowed upon him gives him no chance to undertake individual journeys. This, at the end, becomes his destiny, chasing his own thoughts in the world of madness.

There and there alone is there space for his own will and actions, society will not take any notice. He is forgotten, ostracised and doomed in the eyes of society. Ezeulu is compelled to defend his unique position of priest of Ulu, the most powerful of the village deities against, on the one hand, reactionary forces within the tribe and, on the other, against European culture and religion. The former theme is centered in the rivalry between Ezeulu and Nwaka, a wealthy chief and principal supporter of Ezidemili, the chief priest of the god Idemili, one of the deities displaced by Ulu.

This rivalry promotes internal division in the tribe. (Killam 1977:61) It is rather society which dictates the behavior of it’s high priest then Ezeulu himself. He is subjected to society’s behavior and when he does not pay attention to her signals and codes he is set aside. Taken at a whole Ezeulu’s role within society is very limited, he can take action but only within a very specified range within the social context. This becomes very clear at the point where Ezeulu refuses to determine the day of the Yams festival. The society tells him: 170 “No, you are Umuaro,” said Ezeulu. “Yes, we are Umuaro. herefore listen to what I am going to say. Umuaro is now asking you to go and eat those remaining yams today and name the day of the harvest. Do you hear me well? I said go and eat those yams today, not tomorrow; and if Ulu says we have committed an abomination let it be on the heads of the en of us here. ” (AoG:208) But there is more to the actions Ezeulu undertakes. The sending of his son to the missionaries gives also rise to rumours that Ezeulu is actually planning his succession as a high priest by his son. Again it is not for Ezeulu to plan such a thing. “But Ulu does not ask if a man’s mind is in something or not.

If he wants you he will get you. Even the one who has gone to the new religion, if Ulu wants him he will take him. ” (AoG:126) One must realise that the process of “decollage” of the society is not due to arrival of the colonial powers. The initial elements of the breakdown lie much deeper within society itself. The quarrel between Ezeulu’s deity and other older deities is not something new. Gods have to earn their right of existence within the community, otherwise they are discarded . An example of this attitude is found within the relationship between Ezeulu and his half-brother.

Okeke Onenyi always said that the reason for the coolness between him and the present Ezeulu, his half-brother, was the latter’s resentment to dividing power between themselves. “He forgets,” says Okeke Onenyi, “that the knowledge of herbs and anwansi is something inscribed in the lines of a man’s palm. He thinks that our father deliberately took it from him and gave it to me. (AoG:147) On the other hand there is the imprisonment of Ezeulu and his subsequent absence the village which gives him a certain opportunity to get even with his enemies by not naming the right day for the yams harvest.

It is through 171 the conflict with the colonial forces that Ezeulu clashes with his society but that conflict was already existing, even dormant, before these events. As long as he was in exile it was easy for Ezeulu to think of Umuaro as one hostile entity. But back in his hut he could no longer see the matter as simply as that. All these people who had left what they were doing or where they were going to say welcome to him could not be called enemies. Some of them – like Anosi – might be people of little consequence, ineffectual, perhaps fond of gossip and sometimes given to malice; but they were ifferent from the enemy he had seen in his dreams at Okperi. (AoG: 187) Ezeulu’s plan to get even with Umuaro for their lack of support in his fight with the colonial administration does not arise as the result of an inner conflict between his spiritual and earthly side. This plan is the simple result of imprisonment and the lack of support he expierences by his kinsman, drive him towards this action. After a long period of silent preparation Ezeulu finally revealed that he intended to hit Umuaro at its most vulnerable point – the Feast of the New Yam. AoG: 201) The madness of Ezeulu is the last stage in the process of “decollage” put into the novel by Achebe. It is the inner breaking up of mental and psychological boundaries caused by external forces. Here we witness the ultimate destruction of the principal character. So in the end only Umuaro and its leaders saw the final outcome. To them the issue was simple. Their god had taken sides with them against his stubborn and ambitious priest and thus upheld the wisdom of their ancestors – that no man however great was greater than his people; that no one ever won judgement against his clan. AoG: 230) The fate of Ezeulu is a tragic one. Tragic in this sense that he is not permitted to live his life according to his own liking. His life is set out by the community and it is the community who determines the behavior of Ulu. 172 Whether he likes it are not it was the society who created the god and power is given to the people to get rid of their god again. Once Ezeulu forgets this he is destined to face a tragic end. Koen Bogers Plantin en Moretuslei 121 2200 Antwerpen 173 Bibliography Achebe, Ch. 1964 (ed. 1980). Arrow of God. London: Heineman Bogers, K. 1985.

Ideologie en de Nigeriaanse Engelstalige roman, in: Tijdschrift voor Sociale Wetenschappen, Gent 3:232-239. Bogers, K. 1985b. Achebe’s Sacrifice to the Gods. in: Leids Tijdschrift voor Literatuur en Literatuurwetenschap, Leiden 1(1):4-12. Bogers, K. 1987. Thematische aspekten van de Engelstalige Igbo roman. Brussel: ASDOC. Chinweizu, J. Onwuchekwa & I. Madubuike. 1983. Towards the Decolonization of African Literature. Vol. I. Washington: Howard University Press. Gates, H. L. Jr. (ed. ). 1984. Black Literature & Literary Theory. New York: Methuen. Ikenga-Metuh, E. 1985.

Religious Symbolisms in Igbo Life Crisis Rituals, in: Africana Marburgensia 18(2):59-80. Killam, G. D. 1977. The Writings of Chinua Achebe. London: Heinemann. Nwoga, D. I. 1981. The Igbo World of Achebe’s “Arrow of God”. Research in African Literatures 12(l):14-42. Obiechina, Em. 1973. An African Popular Literature: A Study of Onitsha Market Pamphlets. Cambridge: Cambridge University Press. Wymeersch, P. 1986. Afrikaanse socio-culturele systemen. Traditie en verandering. Brussel: Algemeen Bestuur van de Ontwikkelingssamenwerking. Dienst “Werving – Opleiding Volontariaat” (D. 86). 174

Titanium Dioxide

The duPont Titanium. D;oX~ e Case °d .L. In April of 1978, E. I. duPont de Nemours and Company was charged with violation of section 2 of the Sherman Act and l section 5 of the FTC act. The complaint charged duPont with attempting to monopolize the production of titanium dioxide pigment. The pigment is used in paper and paint to increase There’ are no close substitutes for the degree of whiteness. the product, although fillers can be used in some applications to decrease the amount used. In August of 1979, Administrative Law Judge Brown found duPont did not violate the antitrust statutes and that they had achieved th. eir market position as “‘the result of business fore sight, intelligent planning • ,. , [and] the taking of economic risk. ,,3 The Federal Trade Commission upheld the ALJ’s decision on November 20, 1980. The commission relied primarily on the rationale stated in the Alcoa case that a monopolist may have had monopoly “‘thrust upon it:'” “persons may unwittingly find themselves in possession of a monopoly, automatically so to say. , .. hey may become monopolists by force of accident, A single producer may be the survivor out of a group of active competitors, merely by virtue of his superior skill, foresight and industry. In such cases a strong argument can be made that, although the result may expose lIn re E. I, duPont de Nemours and Company, Dkt. No. 9l08, F. T. C:, 4/10/78. 2Ibid . , ALJ Decision. 3 Ibid . the public to the evils of monopoly, the Act does not mean to condemn the resultant of those very farces which it is its prime object to foster. “4 (emphasis added) The geographic ~arke;l in this case is the nation. From 1972 to 1977 DuPont “s market share increased from 30% to 42%. , DuPont projects a 55% market share by 1985. 6 DuPont has a distinct technological advantage over its competitors, There are three processes that can be used to The least efficient is the sulfate manufacture Ti02. process: Since 1960, this process has been replaced by a DuPont, however, has developed Prior to 1970, the costs of technique that uses rutile ore. a technique using ilmenite ore. manufacturing Ti02using the last two processes. were roughly equal. In 1970, soaring rutile. ore prices gave DuPont a substantial cost advantage C16? lh. for duPont versus 2l? /lb. :, DuPont i. s the only company with the technological capability to use the ilmenite process. 7 Complaint counsel did not charge duPont with anyone specific practice. Rather, they charged that duPont’s action for its competitors}, 4 . U. S. v. Aluminum Co. of America 148 F. 2d 415 (CA2 1945). 5 In F. T. C. , duPont de Nemours and Com an , Dkt. No. 9108, . .c ommission decision. – 2 – i t its entirety violated antitrust law. In Four specific v practices were charged, each one in itself legal, that combined were meant to show an attempt to monopolize: 1.

Expansion of capacity was premature and designed to exclude competitors from expansion. 2. The expansion was designed to capture all the projected growth in demand, foreclosing any opportunities for competitors. 3. Exploitation of its cost advantage to keep prices low so competitors 4. couldn~t expand. ~ Refusal to license its technol? gy, By relying on the overall effects of duPont’s actions, Complaint Counsel was attempting to expand the circumstances in which an attempt to’monopolize charge will be successful. In Bergans Farms 8 an attempt to monopolize was found from an overall course of conduct.

However, Bergan’s employed many clearly illegal tactics including price discrimination and Other cases lacking such clear-cut evidence have not been successful. 9 8Bergans Farms Dairy Co. v. Sanitary Milk Producers, 241 F. supp. 476 (E. D. Mo. 1965) ,affFd 360 F. 2d 679 (8th Cir. 1966). 9See Hiland Dairy, Inc. V. Kroger Co” 402 F. 2d 968 (8th Cir. 1968), cert. denied, 395 U. S. 961 (1969); Buffalo Courier Express, Inc. V. Buffalo Evening News_,. ‘, Inc .. ; 601 F: 2d. 48 (2d’Cir. 1979); Structure Prape, . Inc, V. Franklin:lnst:itute, 450 F. Supp. 272, 1288 (E . D.. Pa. 1978),’aff’d memo 595 F. 2d·.. · 12l4 (g,d Cir. 1979). – 3 – price-fixing. DuPont admits that they attempted to capture all increases in future demand. However, duPont claims to have based their decision not as an attempt to monopolize but because: a) the economy was recovering from the 1972 recession; b) a tariff on imports; c) !. scale economies attributable to increased capacity; qnd d) a decrease in capacity on the part of the industry using the sulfate and rutile processes. DuPont further contends that the allega, – ,

Consumer Protection Act 1986

CONTENTS THE CONSUMER PROTECTION ACT, 1986 CHAPTER – I PRELIMINARY 1. Short title, extent, commencement and application 2. Definitions 3. Act not in derogation of any other law CHAPTER – II CONSUMER PROTECTION COUNCILS 4. The Central Consumer Protection Council 5. Procedure for meetings of the Central Council 6. Objects of the Central Council 7. The State Consumer Protection Councils 8. Objects of the State Council 8A. The District Consumer Protection Council CHAPTER – III CONSUMER DISPUTES REDRESSAL AGENCIES 9. Establishment of Consumer Disputes Redressal Agencies 10.

Composition of the District Forum 11. Jurisdiction of the District Forum 12. Manner in which complaint shall be made 13. Procedure on admission of complaint 14. Finding of the District Forum 15. Appeal 16. Composition of the State Commission 17. Jurisdiction of the State Commission 17A. Transfer of cases 17B. Circuit Benches 18. Procedure applicable to State Commissions 19. Appeals 19A. Hearing of Appeal 20. Composition of the National Commission 21. Jurisdiction of the National Commission 22. Power of and procedure applicable to the National Commission 22A. Power to set aside ex parte orders 2B. Transfer of cases 22C. Circuit Benches 22D. Vacancy in the Office of the President 23. Appeal 24. Finality of orders 24A. Limitation period 24B. Administrative Control 25. Enforcement of orders of the District Forum, the State Commission or the National Commission 26. Dismissal of frivolous or vexatious complaints 27. Penalties 27A. Appeal against order passed under section 27 CHAPTER – IV MISCELLANEOUS 28. Protection of action taken in good faith 28A. Service of notice, etc. 29. Power to remove difficulties 29A. Vacancies or defects in appointment not to invalidate orders 0. Power to make rules 30A. Power of the National Commission to make regulations 31. Rules and regulations to be laid before each House of Parliament (After including the amendments made vide the Consumer Protection (Amendment) Act, 2002 [62 of 2002] which was passed by Rajya Sabha on 11. 4. 2002, Lok Sabha on 30. 7. 2002{with some amendments} and again by Rajya Sabha on 22. 11. 2002 and the President of India gave assent on 17. 12. 2002 and the notification was issue on 18. 12. 2002. The provisions of the Act are being brought into force w. e. f. 15. . 2003. Amendments are shown in bold & italic form The Consumer Protection Act, 1986 (68 of 1986) 24th December; 1986 An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consum¬ers’ disputes and for matters connected therewith. BE it enacted by Parliament in the Thirty-seventh Year of the Republic of India as follows:— PRELIMINARY CONSUMER PROTECTION COUNCILS CONSUMER DISPUTES REDRESSAL AGENCIES MISCELLANEOUS

CHAPTER I PRELIMINARY 1. Short title, extent, commencement and application. —(1 ) This Act may be called the Consumer Protection Act, 1986. (2)It extends to the whole of India except the State of Jammu and Kashmir. (3)It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different States and for different provisions of this Act. (4)Save as otherwise expressly provided by the Central Government by notification, this Act shall apply to all goods and services. 2. Definitions. (1) In this Act, unless the context otherwise requires,— (a)”appropriate laboratory” means a laboratory or organisation— (i)recognised by the Central Government; (ii)recognised by a State Government, subject to such guide¬lines as may be prescribed by the Central Government in this behalf; or (iii)any such laboratory or organisation established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect; (aa)”branch office” means— i)any establishment described as a branch by the opposite party; or (ii)any establishment carrying on either the same or substan¬tially the same activity as that carried on by the head office of the establishment; (b)”complainant” means— (i)a consumer; or (ii)any voluntary consumer association registered under the Companies Act, 1956 (1of 1956)or under any other law for the time being in force; or (iii)the Central Government or any State Government, iv)one or more consumers, where there are numerous consum¬ers having the same interest; (v)in case of death of a consumer, his legal heir or representative; who or which makes a complaint; (c)”complaint” means any allegation in writing made by a complain¬ant that— (i)an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider; (ii)the goods bought by him or agreed to be bought by him; suffer from one or more defects; (iii)the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect; (iv)a trader or service provider, as the case may be, has charged for the goods or for the service mentioned in the com¬plaint a price in excess of the price – (a)fixed by or under any law for the time being in force b)displayed on the goods or any package containing such goods ; (c)displayed on the price list exhibited by him by or under any law for the time being in force; (d)agreed between the parties; (v)goods which will be hazardous to life and safety when used or being offered for sale to the public,– (A)in contravention of any standards relating to safety of such goods as required to be complied with, by or under any law for the time being in force; (B)if the trader could have known with due diligence that the goods so offered are unsafe to the public; (vi)services which are hazardous or likely to be hazardous to life and safety of the public when used, are being offered by the service provider which such person could have known with due diligence to be injurious to life and safety;”; (d)”consumer” means any person who— i)buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or (ii)hires or avails of any services for a consideration which has been paid or promised or partly paid and partly prom¬ised, or under any system of deferred payment and includes any beneficiary of such services other than the person who ‘hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purposes; Explanation. For the purposes of this clause, “commercial purpose” does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment; (e)”consumer dispute” means a dispute where the person against whom a complaint has been made, denies or disputes the allega¬tions contained in the complaint. (f)”defect” means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods; (g)”deficiency” means any fault, imperfection, shortcoming or inade¬quacy in the quality, nature and manner of performance which is equired to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service; (h)”District Forum” means a Consumer Disputes Redressal Forum established under clause (a) of section 9; (i)”goods” means goods as defined in the Sale of Goods Act, 1930 (3 of 1930); (j)“manufacturer” means a person who— (i)makes or manufactures any goods or part thereof; or (ii)does not make or manufacture any goods but assembles parts thereof made or manufactured by others; or (iii) puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer; Explanation. Where a manufacturer dispatches any goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be the manufacturer even though the parts so dispatched to it are assembled at such branch office and are sold or distributed from such branch office; (jj)”member” includes the President and a member of the National Commission or a State Commission or a District Forum, as the case may be; (k)”National Commission” means the National Consumer Disputes Redressal Commission established under clause (c) of section 9; (l)”notification” means a notification published in the Official Gazette; (m)”person” includes,— (i)a firm whether registered or not; (ii)a Hindu undivided family; (iii)a co-operative society; iv)every other association of persons whether registered under the Societies Registration Act, 1860 (21 of 1860) or not; (n)”prescribed” means prescribed by rules made by the State Gov¬ernment, or as the case may be, by the Central Government under this Act; (nn)“regulation” means the regulations made by the National Commission under this Act; (nnn)“restrictive trade practice” means a trade practice which tends to bring about manipulation of price or conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include— (a)delay beyond the period agreed to by a rader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price; (b)any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent to buying, hiring or availing of other goods or services; (o)”service” means service of any description which is made avail¬able to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service; (oo)“spurious goods and services” mean such goods and services which are claimed to be genuine but they are actually not so; (p)”State Commission” means a Consumer Disputes Redressal Commission established in a State under clause (b) of section 9; (q)”trader” in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof, and where such goods are sold or distributed in package form, includes the packer thereof; (r)”unfair trade practice” means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely;— (1)the practice of making any statement, whether orally or in writing or by visible representation which,— (i)falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model; (ii)falsely represents that the services are of a particular standard, quality or grade; (iii)falsely represents any re-built, second-hand, reno¬vated, reconditioned or old goods as new goods; (iv)represents that the goods or services have sponsor¬ship, approval, performance, characteristics, accesso¬ries, uses or benefits which such goods or services do not have; (v)represents that the seller or the supplier has a spon¬sorship or approval or affiliation which such seller or supplier does not have; (vi)makes a false or misleading representation concern¬ing the need for, or the usefulness of, any goods or services; (vii)gives to the public any warranty or guarantee of the performance, fficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof; Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence; (viii)makes to the public a representation in a form that purports to be— (i)a warranty or guarantee of a product or of any goods or services; or (ii)a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result, if such purported warranty or guarantee or prom¬ise is materially misleading or if there is no reasonable prospect that such warranty, guaran¬tee or promise will be carried out; (ix)materially misleads the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made; (x)gives false or misleading facts disparaging the goods, services or trade of another person. Explanation. For the purposes of clause (1), a statement that is— (a)expressed on an article offered or displayed for sale, or on its wrapper or container; or (b)expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale; or (c)contained in or on anything that is sold, sent, delivered, transmit¬ted or in any other manner whatsoever made available to a member of the public, shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be so expressed, made or contained; (2) permits the publication of any advertisement whether in any news¬paper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement. Explanation . —For the purpose of clause 2), “bargaining price” means— (a)a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or (b)a price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold; (3)permits— (a)the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole; (b)the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest; (3A) withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final results of the scheme. Explanation. For the purposes of this sub-clause, the participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable time, published, prominently in the same newspapers in which the scheme was originally advertised; (4)permits the sale or supply of goods intended to be used, or are of a kind likely to be used, by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by competent authority relating to performance, composition, contents, design, constructions, fin¬ishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods; (5)permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services. (6)manufacture of spurious goods or offering such goods for sale or adopts deceptive practices in the provision of services. 2)Any reference in this Act to any other Act or provision thereof which is not in force in any area to which this Act applies shall be construed to have a reference to the corresponding Act or provision thereof in force in such area. 3. Act not in derogation of any other law. —The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force. CHAPTER II CONSUMER PROTECTION COUNCILS 4. The Central Consumer Protection Council. —(1) The Central Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council). 2)The Central Council shall consist of the following members, namely:— (a)the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and (b)such number of other official or non-official members represent¬ing such interests as may be prescribed. 5. Procedure for meetings of the Central Council. —(1) The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year. (2)The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed. 6. Objects of the Central Council. The objects of the Central Council shall be to promote and protect the rights of the consumers such as,— (a)the right to be protected against the marketing of goods and services which are hazardous to life and property; (b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices; (c)the right to be assured, wherever possible, access to a variety of goods and services at competitive prices; (d)the right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate forums; (e)the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of con¬sumers; and (f)the right to consumer education. 7. The State Consumer Protection Councils. (1) The State Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council for………………… (hereinafter referred to as the State Council). (2)The State Council shall consist of the following members, namely:— (a)the Minister incharge of consumer affairs in the State Government who shall be its Chairman; (b)such number of other official or non-official members representing such interests as may be prescribed by the State Government. (c)such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government. 3)The State Council shall meet as and when necessary but not less than two meetings shall be held every year. (4)The State Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government. 8. Objects of the State Council. — The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in clauses (a) to (f) of section 6. 8A. (1)The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification. 2)The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the following members, namely:— (a)the Collector of the district (by whatever name called), who shall be its Chairman; and (b)such number of other official and non-official members representing such interests as may be prescribed by the State Government. (3)The District Council shall meet as and when necessary but not less than two meetings shall be held every year. (4)The District Council shall meet at such time and place within the district as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government. 8B. The objects of every District Council shall be to promote and protect within the district the rights of the consumers laid down in clauses (a) to (f) of section 6. CHAPTER III CONSUMER DISPUTES REDRESSAL AGENCIES 9. Establishment of Consumer Disputes Redressal Agencies. There shall be established for the purposes of this Act, the following agencies, namely:— (a)a Consumer Disputes Redressal Forum to be known as the “District Forum” established by the State Government in each district of the State by notification: Provided that the State Government may, if it deems fit, establish more than one District Forum in a district. (b)a Consumer Disputes Redressal Commission to be known as the “State Commission” established by the State Government in the State by notification; and (c)a National Consumer Disputes Redressal Commission established by the Central Government by notification. 10. Composition of the District Forum. (1) Each District Forum shall consist of,— (a)a person who is, or has been, or is qualified to be a District Judge, who shall be its President; (b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely:— (i)be not less than thirty-five years of age, (ii)possess a bachelor’s degree from a recognised university, (iii)be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration: Provided that a person shall be disqualified for appointment as a member if he— (a)has been convicted and sentenced to imprisonment for an offence which, in the opinion of the state Government involves moral turpitude; or (b)is an undischarged insolvent; or c)is of unsound mind and stands so declared by a competent court; or (d)has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e)has, in the opinion of the state Government, such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f)has such other disqualifications as may be prescribed by the State Government; (1A) Every appointment under sub-section (I) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely:— (i) the President of the State Commission—Chairman. (ii) Secretary, Law Department of the State—Member. (iii) Secretary incharge of the Department dealing with consumer affairs in the State—Member. Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the High Court for nominating a sitting Judge of that High Court to act as Chairman. 2)Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five years, whichever is earlier: Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of sixty-five years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is also made on the basis of the recommendation of the Selection Committee: Provided further that a member may resign his office in writing under his hand addressed to the State Government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the person who has resigned: Provided also that a person appointed as the President or as a member, before the commencement of the Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as President or member, as the case may be, till the completion of his term. 3) The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the District Forum shall be such as may be prescribed by the State Government. Provided that the appointment of a member on whole-time basis shall be made by the State Government on the recommendation of the President of the State Commission taking into consideration such factors as may be prescribed including the work load of the District Forum. 11. Jurisdiction of the District Forum. —(1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed ”does not exceed rupees twenty lakhs. (2)A omplaint shall be instituted in a District Forum within the local limits of whose jurisdiction,— (a)the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain, or (b)any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or (c)the cause of action, wholly or in part, arises. 12. Manner in which complaint shall be made. (1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by – (a)the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided; (b)any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not; (c)one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or (d)the Central Government or the State Government, as the case may be, either in its individual capacity or as a representative of interests of the consumers in general. (2)Every complaint filed under sub-section (1) shall be accompanied with such amount of fee and payable in such manner as may be prescribed. 3)On receipt of a complaint made under sub-section (1), the District Forum may, by order, allow the complaint to be proceeded with or rejected: Provided that a complaint shall not be rejected under this section unless an opportunity of being heard has been given to the complainant: Provided further that the admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint was received. (4)Where a complaint is allowed to be proceeded with under sub-section (3), the District Forum may proceed with the complaint in the manner provided under this Act: Provided that where a complaint has been admitted by the District Forum, it shall not be transferred to any other court or tribunal or any authority set up by or under any other law for the time being in force. Explanation. – For the purpose of this section “recognised consumer association” means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force”. 13. Procedure on admission of complaint. (1) The District Forum shall, on admission of a complaint, if it relates to any goods,— (a)refer a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute in the manner specified in clauses (c) to (g); (c)where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, the District Forum shall obtain a sample of the goods from the complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test, whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the District Forum within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by the District Forum; (d)before any sample of the goods is referred to any appropriate laboratory under clause (c), the District Forum may require the complainant to deposit to the credit of the Forum such fees as may be specified, for payment to the appropriate laboratory for carry¬ing out the necessary analysis or test in relation to the goods in question; (e)the District Forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on eceipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks as the District Forum may feel appropriate to the opposite party; (f)if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the correctness of the meth¬ods of analysis or test adopted by the appropriate laboratory, the District Forum shall require the opposite party or the complain¬ant to submit in writing his objections in regard to the report made by the appropriate laboratory; (g)the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness or otherwise of the report made by the appro¬priate laboratory and also as to the objection made in relation thereto under clause (/) and issue an appropriate order under section 14. 2)the District Forum shall, if the complaint admitted by it under section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services,— (a)refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b)where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute,— (i)on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint, or (ii)ex parte on the basis of evidence brought to its notice by the complainant where the opposite party omits or fails to take any action to represent his case within the time given by the Forum. (c)where the complainant fails to appear on the date of hearing before the District Forum, the District Forum may either dismiss the complaint for default or decide it on merits. (3)No proceedings complying with the procedure laid down in sub¬sections [1] and [2] shall be called in question in any court on the ground that the principles of natural justice have not been complied with. (3A) Every complaint shall be heard as expeditiously as possible and endeavour shall be made to decide the complaint within a period f three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities: Provided that no adjournment shall be ordinarily granted by the District Forum unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by the Forum: Provided further that the District Forum shall make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this Act. Provided also that in the event of a complaint being disposed of after the period so specified, the District Forum shall record in writing, the reasons for the same at the time of disposing of the said complaint. (3B) Where during the pendency of any proceeding before the District Forum, it appears to it necessary, it may pass such interim order as is just and proper in the facts and circumstances of the case. 4)For the purposes of this section, the District Forum shall have the same powers as are vested in a civil court under Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:— (i)the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath; (ii)the discovery and production of any document or other material object producible as evidence; (iii)the reception of evidence on affidavits; (iv)the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source; (v)issuing of any commission for the examination of any witness, and (vi)any other matter which may be prescribed. (5)Every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Code (45 of 1860), and the District Forum shall be deemed to be a civil court for the purposes of section 195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 6)Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of section 2, the provisions of rule 8 of Order I of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the District Forum thereon. (7)In the event of death of a complainant who is a consumer or of the opposite party against whom the complaint has been filed, the provisions of Order XXII of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference therein to the plaintiff and the defendant shall be construed as reference to a complainant or the opposite party, as the case may be. 14. Finding of the District Forum. (1) If, after the proceeding conducted under section 13, the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things, namely:— (a)to remove the defect pointed out by the appropriate laboratory from the goods in question; (b)to replace the goods with new goods of similar description which shall be free from any defect; (c)to return to the complainant the price, or, as the case may be, the charges paid by the complainant; (d)to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party. Provided that the District Forum shall have the power to grant punitive damages in such circumstances as it deems fit; (e)to remove the defects in goods or deficiencies in the services in question; (f)to discontinue the unfair trade practice or the restrictive trade practice or not to repeat it; (g)not to offer the hazardous goods for sale; h)to withdraw the hazardous goods from being offered for sale; (ha)to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature; (hb)to pay such sum as may be determined by it if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently: Provided that the minimum amount of sum so payable shall not be less than five per cent. of the value of such defective goods sold or service provided, as the case may be, to such consumers: Provided further that the amount so obtained shall be credited in favour of such person and utilized in such manner as may be prescribed; (hc)to issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement; (i)to provide for adequate costs to parties. 2)Every proceeding referred to in sub-section (1) shall be conducted by the President of the District Forum and at least one member thereof sitting together: Provided that where a member, for any reason, is unable to conduct a proceeding till it is completed, the President and the other member shall continue the proceeding from the stage at which it was last heard by the previous member. (2A) Every order made by the District Forum under sub-section (1) shall be signed by its President and the member or members who conducted the proceeding: Provided that where the proceeding is conducted by the President and one member and they differ on any point or points, they shall state the point or points on which they differ and refer the same to the other member for hearing on such point or points and the opinion of the majority shall be the order of the District Forum. 3)Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the District Forum, its sittings and other matters shall be such as may be prescribed by the State Government. 15. Appeal. — Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed: Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not finding it within that period.

Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the District Forum, shall be entertained by the State Commission unless the appellant has deposited in the prescribed manner fifty per cent. of that amount or twenty-five thousand rupees, whichever is less: 16. Composition of the State Commission. — (1) Each State Com¬mission shall consist of— (a)a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President: Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court; (b)not less than two, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the following qualifications, namely:— (i)be not less than thirty-five years of age; ii)possess a bachelor’s degree from a recognised university; and (iii)be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration: Provided that not more than fifty per cent. of the members shall be from amongst persons having a judicial background. Explanation. — For the purposes of this clause, the expression “persons having judicial background” shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level: Provided further that a person shall be disqualified for appointment as a member if he— (a)has been convicted and sentenced to imprisonment for an offence which, in the opinion of the State Government, involves moral turpitude; or (b)is an undischarged insolvent; or c)is of unsound mind and stands so declared by a competent court; or (d)has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e)has, in the opinion of the State Government, such financial or other interest, as is likely to affect prejudicially the discharge by him of his functions as a member; or (f)has such other disqualifications as may be prescribed by the State Government. (1A)Every appointment under sub-section (1) shall be made by the State Government on the recommendation of a Selection Committee consisting of the following members, namely:— (i) President of the State Commission–Chairman; ii) Secretary of the Law Department of the State–Member; (iii) Secretary incharge of the Department dealing with Consumer Affairs in the State–Member: Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the High Court for nominating a sitting Judge of that High Court to act as Chairman. (1B)(i)The jurisdiction, powers and authority of the State Commission may be exercised by Benches thereof. (ii)A Bench may be constituted by the President with one or more members as the President may deem fit. iii)If the members of a Bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and make a reference to the President who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more or the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case, including those who first heard it. (2)The salary or honorarium and other allowances payable to, and the other terms and conditions of service of, the members of the State Commission shall be such as may be prescribed by the State Government. Provided that the appointment of a member on whole-time basis shall be made by the State Government on the recommendation of the President of the State Commission taking into consideration such factors as may be prescribed including the work load of the State Commission. 3)Every member of the State Commission shall hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier: Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of sixty-seven years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is made on the basis of the recommendation of the Selection Committee: Provided further that a person appointed as a President of the State Commission shall also be eligible for re-appointment in the manner provided in clause (a) of sub-section (1) of this section: Provided also that a member may resign his office in writing under his hand addressed to the State Government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the person who has resigned. (4)Notwithstanding anything contained in sub-section (3), a person appointed as the President or as a member, before the commencement of the Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as President or member, as the case may be, till the completion of his term. 17. Jurisdiction of the State Commission. — (1) Subject to the other provisions of this Act, the State Commission shall have jurisdiction— (a)to entertain— i)complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore; and (ii)appeals against the orders of any District Forum within the State; and (b)to call for the records and pass appropriate orders in any con¬sumer dispute which is pending before or has been decided by any District Forum within the State, where it appears to the State Commission that such District Forum has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity. 2) A complaint shall be instituted in a State Commission within the limits of whose jurisdiction,— (a)the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain; or (b)any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office or personally works for gain, provided that in such case either the permission of the State Commission is given or the opposite parties who do not reside or carry on business or have a branch office or personally work for gain, as the case may be, acquiesce in such institution; or (c)the cause of action, wholly or in part, arises. 17A. Transfer of cases. On the application of the complainant or of its own motion, the State Commission may, at any stage of the proceeding, transfer any complaint pending before the District Forum to another District Forum within the State if the interest of justice so requires. 17B. Circuit Benches. -The State Commission shall ordinarily function in the State Capital but may perform its functions at such other place as the State Government may, in consultation with the State Commission, notify in the Official Gazette, from time to time. 18. Procedure applicable to State Commissions. —The provisions of Sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the District Forum shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the State Commission. ( 18A. Omitted ) l9. Appeals. Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 17 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed: Provided that the National Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited in the prescribed manner fifty per cent. of the amount or rupees thirty-five thousand, whichever is less: 19A.

Hearing of Appeal – An appeal filed before the State Commission or the National Commission shall be heard as expeditiously as possible and an endeavour shall be made to finally dispose of the appeal within a period of ninety days from the date of its admission: Provided that no adjournment shall be ordinarily granted by the State Commission or the National Commission, as the case may be, unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by such Commission: Provided further that the State Commission or the National Commission, as the case may be, shall make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this Act.

Provided also that in the event of an appeal being disposed of after the period so specified, the State Commission or, the National Commission, as the case may be, shall record in writing the reasons for the same at the time of disposing of the said appeal. 20. Composition of the National Commission. —(1) The National Commission shall consist of— (a)a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President; Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India; (b)not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the following qualifications, namely:— (i)be not less than thirty-five years of age; ii)possess a bachelor’s degree from a recognised university; and (iii)be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration: Provided that not more than fifty per cent. of the members shall be from amongst the persons having a judicial background. Explanation. — For the purposes of this clause, the expression “persons having judicial background” shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level: Provided further that a person shall be disqualified for appointment if he— (a)has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or (b)is an undischarged insolvent; or c)is of unsound mind and stands so declared by a competent court; or (d)has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e)has in the opinion of the Central Government such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f)has such other disqualifications as may be prescribed by the Central Government : Provided also that every appointment under this clause shall be made by the Central Government on the recommendation of a selection committee consisting of the following, namely:— (a)a person who is a Judge of the Supreme Court,—Chairman; to be nominated by the Chief Justice of India (b)the Secretary in the Department of Legal Affairs—Member; in the Government of India (c)Secretary of the Department dealing with consumer—Member. ; affairs in the Government of India (1A)(i)The jurisdiction, powers and authority of the National Commission may be exercised by Benches thereof. (ii)A Bench may be constituted by the President with one or more members as the President may deem fit. iii)if the Members of a Bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the President who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more or the other Members and such point or points shall be decided according to the opinion of the majority of the Members who have heard the case, including those who first heard it. (2)The salary or honorarium and other allowances payable to and the other terms and conditions of service of the members of the National Commission shall be such as may be prescribed by the Central Government. 3)Every member of the National Commission shall hold office for a term of five years or up to the age of seventy years, whichever is earlier: Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of seventy years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is made on the basis of the recommendation of the Selection Committee: Provided further that a person appointed as a President of the National Commission shall also be eligible for re-appointment in the manner provided in clause (a) of sub-section (1) : Provided also that a member may resign his office in writing under his hand addressed to the Central Government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the person who has resigned. (4)Notwithstanding anything contained in sub-section (3), a person appointed as a President or as a member before the commencement of the Consumer Protection (Amendment) Act, 2002 shall continue to hold such office as President or member, as the case may be, till the completion of his term. 21. Jurisdiction of the National Commission. — Subject to the other provisions of this Act, the National Commission shall have jurisdiction— (a)to entertain— i)complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore; and (ii)appeals against the orders of any State Commission; and (b)to call for the records and pass appropriate orders in any con¬sumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity. 22. Power of and procedure applicable to the National Commission. (1) The provisions of sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the District Forum shall, with such modifications as may be considered necessary by the Commission, be applicable to the disposal of disputes by the National Commission. (2)Without prejudice to the provisions contained in sub-section (1), the National Commission shall have the power to review any order made by it, when there is an error apparent on the face of record. 22A. Power to set aside ex parte orders. – Where an order is passed by the National Commission ex parte against the opposite party or a complainant, as the case may be, the aggrieved party may apply to the Commission to set aside the said order in the interest of justice. 22B.

Transfer of cases – On the application of the complainant or of its own motion, the National Commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending before the District Forum of one State to a District Forum of another State or before one State Commission to another State Commission. 22C. Circuit Benches – The National Commission shall ordinarily function at New Delhi and perform its functions at such other place as the Central Government may, in consultation with the National Commission, notify in the Official Gazette, from time to time. 22D. Vacancy in the Office of the President – When the office of President of a District Forum, State Commission, or of the National Commission, as the case may be, is vacant or a person occupying such office is, by reason of absence or otherwise, unable o perform the duties of his office, these shall be performed by the senior-most member of the District Forum, the State Commission or of the National Commission, as the case may be: Provided that where a retired Judge of a High Court is a member of the National Commission, such member or where the number of such members is more than one, the senior-most person among such members, shall preside over the National Commission in the absence of President of that Commission. 23. Appeal. — Any person, aggrieved by an order made by the National Commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 21, may prefer an appeal against such order of the Supreme Court within a period of thirty days from the date of the order: Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

Provided further that no appeal by a person who is required to pay any amount in terms of an order of the National Commission shall be entertained by the Supreme Court unless that person has deposited in the prescribed manner fifty per cent. of that amount or rupees fifty thousand, whichever is less. 24. Finality of orders. — Every order of a District Forum, the State Commission or the National Commission shall, if no appeal has been preferred against such order under the provisions of this Act, be final. 24A. Limitation period. – (l) The District Forum, the State Commis¬sion or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. 2)Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the period specified in sub-section (l), if the complainant satisfies the District Forum, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period: Provided that no such complaint shall be entertained unless the National Commission, the State Commission or the District Forum, as the case may be, records its reasons for condoning such delay. 24B. Administrative Control. —(1) The National Commission shall have administrative control over all the State Commissions in the following matters, namely:— (i)calling for periodical return regarding the institution, disposal pendency of cases; (ii)issuance of instructions regarding adoption of uniform pro¬cedure in the hearing of matters, prior service of copies of documents produced by one arty to the opposite parties, furnishing of English translation of judgments written in any language, speedy grant of copies of documents; (iii)generally overseeing the functioning of the State Commis¬sions or the District Fora to ensure that the objects and purposes of the Act are best served without in any way interfering with their quasi-judicial freedom. (2)The State Commission shall have administrative control over all the District Fora within its jurisdiction in all matters referred to in sub-section (1). 25. Enforcement of orders of the District Forum, the State Commission or the National Commission. — (1) Where an interim order made under this Act, is not complied with the District Forum or the State Commission or the National Commission, as the case may be, may order the property of the person, not complying with such order to be attached. 2)No attachment made under sub-section (1) shall remain in force for more than three months at the end of which, if the non-compliance continues, the property attached may be sold and out of the proceeds thereof, the District Forum or the State Commission or the National Commission may award such damages as it thinks fit to the complainant and shall pay the balance, if any, to the party entitled thereto. (3)Where any amount is due from any person under an order made by a District Forum, State Commission or the National Commission, as the case may be, the person entitled to the amount may make an application to the District Forum, the State Commission or the National Commission, as the case may be, and such District Forum or the State Commission or the National Commission may issue a certificate for the said amount to the Collector of the district (by whatever name called) and the Collector shall proceed to recover the amount in the same manner as arrears of land revenue. 26.

Dismissal of frivolous or vexatious complaints. — Where a complaint instituted before the District Forum, the State Commission or as the case may be, the National Commission, is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order 27. Penalties. — (1) Where a trader or a person against whom a complaint is made or the complainant fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, as the case may be, such trader or person or omplainant shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousands rupees but which may extend to ten thousand rupees, or with both: (2)Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974), the District Forum or the State Commission or the National Commission, as the case may be, shall have the power of a Judicial Magistrate of the first class for the trial of offences under this Act, and on such conferment of powers, the District Forum or the State Commission or the National Commission, as the case may be, on whom the powers are so conferred, shall be deemed to be a Judicial Magistrate of the first class for the purpose of the Code of Criminal Procedure, 1973 (2 of 1974). (3)All offences under this Act may be tried summarily by the District Forum or the State Commission or the National Commission, as the case may be. 27A. Appeal against order passed under section 27 – (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an appeal under section 27, both on facts and on law, shall lie from – (a)the order made by the District Forum to the State Commission ; (b)the order made by the State Commission to the National Commission; and (c)the order made by the National Commission to the Supreme Court. 2)Except as aforesaid, no appeal shall lie to any court from any order of a District Forum or a State Commission or the National Commission. (3)Every appeal under this section shall be preferred within a period of thirty days from the date of an order of a District Forum or a State Commission or, as the case may be, the National Commissio

Operation Analysis of Iga Supermarket

EXECUTIVE SUMMARY This essay aims to conduct an operational analysis on IGA (Independent Grocers Alliance) which is one of the top five retail stores in Australia. This study examines the relationships between productivity, administrative effectiveness, customer satisfaction, and employee attitudes over time. This essay will evaluate the effectiveness by reviewing the performance analysis. This essay also offers a detailed and comprehensive operational analysis of IGA’s strategies and executions and focuses on providing a qualitative review of the company’s operating environment and business outlook.

This study starts by explaining the concept of service quality and employee performance. The findings indicate some reasons for service quality decline among employees which is followed by explaining the strategies on how to develop employee performance which can yeild good results in business. TABLE OF CONTENTS 1) Introduction 2) Service Quality 3) Employee Performance 4) Reasons for Employee Performance Declination 5) Service Quality Measurement 6) Measures to Improve Service Quality 7) Service Quality Dimensions 8) Total Quality Management (TQM) 9) Competition in Supermarket Industry 0) Strategies to make Operations More Effective 10. 1) Employee Involvement 10. 2) Ensure service leadership 10. 3) Excellent Customer service 10. 4) Reward System 10. 5) Performance measurement strategies 10. 6) Customer satisfaction and loyalty 11) Conclusion Introduction: Supermarket shopping is often categorised as a self-service retail environment. For supermarket retailers wanting to build relationships with their customers, being able to track their levels of ‘satisfaction’ with the key elements of the supermarket environment is extremely important.

Service quality and customer satisfaction are increasingly becoming important for supermarket industry to stay in the business. This essay about the operational analysis of IGA supermarkets on employee performance, service quality and customer satisfaction. As a branch manager of IGA, I ‘am responsible for conducting the operational analysis to improve business and surviving in the competitive market. As a branch manager of IGA, I identified a problem in the analysis that in one of the branch employee performance is declined which in turn effected service quality and employee satisfaction.

In this study we will discuss the reasons for performance declination and give the possible strategies in order to make operations effective. This essay starts by explaining the general concept of service quality, its meaning and service quality at IGA supermarkets. Service quality has been seen as critical for service firms to position themselves strongly in a competitive environment (Parasuraman, et al. , 1985, Shemwell et al. , 1998; Mehta et al. , 2000) and it also indicates its business performance (Hurley & Estelami, 1998).

Superior service quality can help firms become more profitable and help them sustain a competitive advantage in their served markets. It also identifies the strength and weakness of the service which is currently being delivered. This is followed by the reasons of performance declination. Secondly, it discusses many possible strategies which make IGA branch operations effective. Thirdly, it provides the implementation process of all these strategies. Finally conclusions are drawn from all the above analysis and possible recommendations were given.

Service Quality: Service quality is the delivery of excellent or superior service related to customer expectations” and occurs for most services during the interaction between a customer and a service provide. Most of the service quality definitions fall within the “features of products which meet customers’ needs and thereby provide customer satisfaction” category (Juran,1999). Feinburg & de Ruyter (1995) pointed the importance of adapting the definition of service quality in different cultures.

Ueltschy & Krampf (2001) contended that differences in culture affect measure of quality in a service sector. They encapsulated service quality measures as “culturally sensitive” and “may not perform properly or comparatively in a culturally diverse group domestically or abroad”. Cultural factors are said to have greater influence on people’s evaluation of services than on their evaluations of physical goods due to involvement of customer contact and interaction with employees while a service is delivered (Mattila, 1999).

Other researchers look at perceived service quality as an attitude. As perceived service quality portrays a general, overall appraisal of service i. e. a global value judgment on the superiority of the overall service, it is viewed as similar to attitude. Researchers have often emphasised the subjective aspect of the concept of service quality; “The only criteria that count in evaluating service quality are defined by customers. Only customers can judge quality: all other judgements are essentially irrelevant” (Zeithaml et al. , 1990, p. 16).

In order for a company to control service quality, it is vital to focus on the specific attributes that are valued as important to the target customers and to deliver the correct type of service with respect to these attributes. Regardless of how service quality has been formed – the result of the customer’s own comparisons of expectations and outcome, or simply experience-based perceptions – most researchers strive to find out and understand what attributes, resources and activities that we need to include when evaluating service quality.

There exists a plethora of definitions within this research area: quality dimensions, quality determinants, quality indicators, quality aspects, quality criteria and quality factors. Employee Performance: Performance management is the process of management that contributes to the effective management of individuals and teams to achieve high levels of organizational performance. Some see performance management as performance related pay schemes and others as the performance appraisal systems.

In simple terms, performance management provides the means for people to improve their performance or apply their abilities more constructively. An appraisal is the business tool used at a regular basis to measure an employee’s performance. It is an opportunity to take an overview of a specified period keeping a record of what has been achieved. Appraisals are followed by ratification of objectives for the next period. They are also sometimes used as motivational tools. This process determines the measurement of performance and helps in the development of employees.

The main objective in this process is to improve the performance of individuals to ultimately improve the efficiency and productivity of the company. Appraisals subjectively assist post holders to understand the accountabilities and performance standards of a company. The process provides the opportunity into looking at what the company has achieved and what it can achieve. The tool helps set objectives for the next period in hopes of achieving a higher sales target for example. Performance appraisals benefit post holders as they reveal the good and bad aspects of a given job.

They improve the relationships and moral within the organization. For an organization performance appraisals acquire information about employees, information for development and assists human resource needs more accurately for example, promotions, bonuses, perks, individual payment schemes, etc. Reasons for Employee Performance Declination: IGA has been operating very effectively from many years in Australia. It excels in excellent products and services. If one of the staff member of IGA seem to be declining in their personal performance will effect the quality of service. The reasons for this declination can be due to many reasons.

Some of them are like brand image problems, improper customer service, management problems; personal problems among staff, reward systems, complex situations, etc. there are many strategies which can increase the performance and customer satisfaction of the company in order to develop customer-staff relationship in terms of service there should be and interaction between customers and the staff,. Pleasurable interaction refers to cognitive assessment of an individual’s exchange with an employee and personal connection is an expression of customer’s acuity of bond between two parties in a dyad (DeWitt & Brady (2003).

Some of the factors that which increase the satisfaction levels amongst consumers are; Staff, Products and services, Point of sales and activation and network. Employee performance is considered as ineffective when productivity is below than the considerable standard which is acceptable at a given time. Performance declination of employees at IGA may be due to the job, the manager or the company. Two approaches have been taken in order to find the key factors in which the management can focus to improve IGA overall customer satisfaction.

The first is gap analysis which measures the gap between customer’s expectations and perceptions of the service as an indication of service quality. The second approach is linear regression to determine the relative importance service attributes in driving overall customer satisfaction (Peter J. Danaher, Rodger W. Gallagher, 1997). Service Quality Measurement: It is difficult to measure service quality as compared to good’s quality. The difficulty to measure is due to fewer tangible cues available when consumers purchase services (Parasuraman et al. 1985), fewer search properties, but higher in experience and credence properties (Zeithaml, 1981 in Parasuraman 1985), as compared to goods. It also requires higher consumer involvement in the consumption process (Gronroos, 1984). Gronroos (1984) found that “service quality” comprises of three global dimensions. The first dimension is the technical quality. This dimension refers to the outcome or what is delivered or what the customer gets from the service. For a retail store, technical quality may include the range of products offered and the availability of parking space.

The next dimension is the functional quality which refers to the manner in which the service is delivered or how it is delivered. Customers of a retail store will measure whether the salespeople are friendly or whether products are easily returnable. Finally, the last dimension is the corporate image. The store’s image is built by mainly both technical and functional quality and to some extent other factors like the traditional marketing activities. The most popular service quality model in the 1990s is the model by Parasuraman et al. , (1985).

Their model supported Gronroos’ findings on as the models are based on these three underlying themes: 1) Service quality is more difficult for the consumer to evaluate than goods quality; 2) Service quality perceptions result from a comparison of consumer expectations with actual service performance; 3) Quality expectations are not made solely on the outcome of the service; they also involve evaluations of the process of the service (Parasuraman et al. ,1985, p. 42). Measures to Improve Service Quality: Some of the steps to improve service quality are as follows: We must realize that there is no way around this first.

We must make the investment in mapping out the existing processes within the store. Once you realize that you have a problem and you need to take action, how will you approach it? It starts right at the top: The first step is to acquire executive sponsorship, such as a VP or a CEO, to sponsor the project and commit the necessary resources to make these changes. A few words of caution about this mapping process is that we shouldn’t try to comprise all details in this map. Establish what is important and critical for our business and include only that on the diagram.

Step 2) Have a standard process: Standard processes start by making sure that all the departments in your company are well aligned in pursuit of the businesses’ goals. It ensures that the sales team doesn’t make promises our company can’t deliver on, that it delivers the data that operations or finance need and that all departments agree on common objectives for the business. Although it sounds simple enough, most companies fail on this basic level of communication and why so many of them have difficulties managing growth.

Step 3) Quality Assess (QA) the Process: Once we’ve established a business process diagram, we need to distribute it to all stakeholders of that process. If not, the quality of your services will continue to suffer which may result in customers abandoning us and our investment will be wasted. QA is a high priority initiative: it must be embraced by the entire organization, as this can damage your brand and the way your customers perceive you. All these problems can be avoided if you have an appropriate QA process, and your management takes it seriously.

Step 4) Automate Process with High Return on Investment (ROI) It is the staff responsibility to handle numerous manual processes as the business changes and evolves. The staff should identify the most critical processes that should and can be automated, document them, and then create a project plan to address them quickly. Although sometimes it is difficult to measure the return but it is a good practice to calculate the ROI on each process automation initiative to ensure its payback is in line with company expectations or standard practices.

Automation has another important goal: consistency. Automation can ensure best practices are consistently followed, service error rates are reduced, and customer satisfaction scores are consistently higher. Step 5) Be Preventive, Not Reactive Many organisations tend to address performance and availability issues reactively. Unfortunately many of these issues cause service degradation resulting in a loss of customer goodwill. A better approach is to anticipate problems and deal with them before they have impact on service quality.

With a predictive approach, you can analyse events and trends, assess both their short-term and long-term impact on service quality, and deal with problematic events before they have an impact on service quality. Step 6) Identify and Rectify the Problem faster: The final step sounds as simple as it is; the best teacher is the customer. Make sure that they have a very easy way to provide you with feedback. This will complement the quality processes and will enable our company to react to a problem that has not been anticipated faster.

We can simplify and speed up the problem diagnosis process by splitting up big systems in smaller ones with clear interfaces and checkpoints, so that senior level manager is not required to diagnose the issue. Service Quality Dimensions: The scale that has high construct reliability and validity in measuring service quality in department stores include: Physical aspects – Service is said to be distinguished from goods due to its intangibility. The tangibility aspects of a service have a significant effect on perceived service quality .

The importance of physical environment in a service setting is due to its ability to influence consumer attitudes (Koernig, 2003), behaviour intention (Keillor, et al. , 2004) and behaviour (Bitner, 1992; Koernig, 2003). As customers are involved in the production and consumption process of a service conducted within a physical environment, the physical environment will have a deep impact on customers’ perception of service experiences (Bitner, 1992). Reliability – The reliability dimension comprise of “promises” and “doing it right” sub dimensions (Dabholkar et al. 1996). Besides fulfilling promise and performing the right service as part of reliability, the researchers added the availability of merchandise as part of the “doing it right” sub dimension. Problem solving – This dimension incorporated store’s willingness to handle returns and exchanges, shows a sincere interest in solving customers’ problems, and also store personnel’s ability to handle customer complaints directly and immediately. They highlighted the need to have problem solving as a dimension by itself because of the importance of “service recovery” in providing good service.

Policy – Store policy influences various aspects of service quality (Dabholkar et a. l, 1996). They elaborated store policy to include high quality merchandise, parking facilities, convenient operating hours, acceptance of major credit cards, and store’s own credit card. {draw:rect} {draw:rect} Figure 1: Conceptual Framework for Retail Service Quality Total Quality Management (TQM): Another part of TQM is to empower all employees to seek out quality problems and correct them. With the old concept of quality, employees were afraid to identify problems for fear that they would be reprimanded.

Often poor quality was passed on to someone else, in order to make it someone else’s problem. The new concept of quality, TQM, provides incentives for employees to identify quality problems. Employees are rewarded for uncovering quality problems, not punished. Workers are empowered to make decisions relative to quality in the production process. They are considered a vital element of the effort to achieve high quality. Their contributions are highly valued, and their suggestions are implemented. In order to perform this function, employees are given continual and extensive training in quality measurement tools.

Competition in Supermarket Industry: Strategies to make Operations More Effective: 10. 1) Employee Involvement: Generally for any company to improve the customer satisfaction they generally start by considering more things that they can do for their customers. A smart company would first emphasize at how they treat their employees. Over the years it has been proven that satisfied employees produce satisfied customers. The development of staff might be expected to increase both profitability and the retention of contented high-performing service agents using a combination of technology and service staff in their ustomer-service processes. At an early stage, managers should carefully consider an appropriate balance between the two. For the achievement of excellent service quality it is very important to understand the interrelationship between various service quality attributes and their dimensions. IGA should put more effort to understand their customer well through relationships concepts such as length, nature and quality of customer’s experience with service organizations especially in the context of highly competitive market.

A very crucial factor to IGA is to understand how services can be used to differentiate and enhance business-to-business relationships. 10. 2) Ensure service leadership: Good intentions in developing a quality service strategy will be lost if the fundamentals of an effective service organization are not present. It is recognized that there is no single generic service culture that is always successful, but all effective cultures place a strong emphasis on the crucial and developing roles of customer-service staff.

Attributes that contribute to service leadership include: professionalism within customer service, builds trust through dependability, respect, empathy, and diplomacy; inclusiveness in service processes encourages co-operative teamwork and mutual support and understanding; communication allows expression for the individual and empowerment in the employees; knowledge is shared at all levels and learning encouraged; and Technology is incorporated confidently and appropriately into the service processes.

These attributes should ensure that the service organization is responsive, proactive, adaptable to customer needs, and opportunistic (Colin Armistead, Julia Kiely, 2003). Employees look for clarity of direction, simple messages and consistent behavior. Team performance is managed to consistently meet the organization’s quality and delivery standards. Leadership, supervision, coaching and mentoring assist colleagues to overcome difficulty in meeting customer service standards. 10. 3) Excellent Customer service:

Service quality research, have reported that excellent service is a profitable strategy because it results in attracting more new customers, more business with existing customers, fewer lost customers, more insulation from price competition, and fewer mistakes requiring the re-performance of services. In today’s competitive environment the pursuit of service quality is now considered an essential strategy. Competitive advantage results either from neither implementing a value-creating strategy nor simultaneously being implemented by any current or potential competitors or through superior execution of the same strategy as competitors. 0. 4) Reward System: IGA can improve its branch personal performance through creating incentives and reward systems. These will enable employees to find new opportunities within an organization. If possible IGA can also implement the strategy which include employee involving in company decision-making processes. Lack of motivation, rewards and incentives sometimes result in performance declination among employees. This may be one of the reasons for decrease in performance declination at IGA. There should be a balance in Compensation costs at a level that both ensure organizational competitiveness.

Employees should be rewarded for their knowledge, skills, abilities and performance accomplishments. Some other strategies also include empowering employees by giving them the opportunity to work on diverse, limited-term assignments, rather than in one department or function. 10. 5) Performance measurement strategies: As a branch of IGA is suffering from the problem of employee performance declination, empowerment would be an appropriate strategy to overcome it. Empowerment can increase employee’s performance levels.

This is explained in terms of allowing employees greater freedom, autonomy and self-control over their work, and responsibility for decision-making. Empowerment takes a variety of forms and managers frequently have different intentions and organizations differ in the degree of discretion with which they can empower employees and its popularity has been driven by the need to respond quickly to customer needs, to develop cross-functional links to take advantage of opportunities that are too local or too fleeting to be determined centrally.

Successful empowerment will require feedback on performance from a variety of sources, rewards with some group component, an environment tolerant to mistakes and a widely distributed information system. 10. 6) Customer satisfaction and loyalty: As in any retail environment, customer loyalty is paramount. Customer needs must replace operational challenges (Retail Week, 2003). Financial performance of supermarket industries relies on the generation high levels of customer satisfaction and loyalty. At IGA customer satisfaction is a critical performance indicator along with measures of unit productivity and administrative effectiveness.

Employees has an attitude dimension which is highly related to measures of customer satisfaction was personal responsibility, which included such items as “Commitment to helping my business unit succeed” and “I protect the company’s property and business information as if it were my own”. Another dimension is effective communication. which included items such as “my work group is told about upcoming changes in time to prepare for them” and “I get enough information about how well my work group is meeting its goals” (Dennis J. Adsit, Manuel London, Steven Crom, Dana Jones,1996).

Conclusion: Supermarkets like IGA must enhance their quality to remain competitive in an increasingly aggressive and global industry. It is established empirically that customers overall cognitive or effective evaluation is based basically on the service quality, but the customers perception of the performance of the service quality encountered is compared with some cognitive or affective standards like a person’s expected quality, perceived quality or value quality. This study brings out the service quality framework and best strategies that are used to increase the performance of employees and IGA operations.

The customer service will be improved purely based on mentioned strategies as they are proved by researchers that they are the best. Quality service can be achieved through broader conception of the satisfaction process. Thus, finally it can be concluded that employee performance, quality service and customer satisfaction are inter related to each other. If any one of this factor decline simultaneously it will affect the other two. References: Bellenger, D. N. , Steinberg, E. , and Stanton, W. W. (1976), The congruence of store image and self image.

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