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Management

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September '10
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Articles

A Loan Sanction Dilemma

Leadership Training and Development at P&G

-- Namratha V Prasad and Vivek Gupta

The case examines the measures taken by the US-based multinational consumer products company, P&G to nurture leadership at the company. It discusses in length the efforts of A G Lafley, the former CEO of P&G, to develop a company-wide leadership development process, encompassing areas like selection, training and individual assessment. The case also presents the "build-from-within" policy of the company and its efforts to combat the insularity that was thought to result from the policy. In addition, the case explains the succession planning process at P&G and the "Talent Portfolio" that contained the list of the upcoming leaders at the company.

Customer Service at L.L.Bean

-- Monjori Samanta and Debapratim Purkayastha

The case discusses the customer service initiatives of L.L.Bean, Inc. (L.L.Bean), a US-based multichannel retailer. L.L.Bean had evolved from being a mail order company selling hunting boots into a leading international retailer selling apparels, home furnishings, and outdoor equipment. Its endeavor was to deliver quality products at reasonable prices and offer excellent customer service to customers. In its 98-year-long history, the company had preserved the customer-centric tradition set by the founder and had, over the years, molded its operational policies to provide superior purchasing experience to customers. The company believed that a satisfied customer helped build customer loyalty and encouraged repeat purchases, which were essential to achieve success in the retail business.

The case discusses in detail the customer-friendly policies of L.L.Bean and the customer service practices that had resulted in its being recognized as a customer service champion by consumers and industry observers. This also helped the company to perform better than its rivals during the global economic recession of 2007-09. Experts felt that the company's superior customer service provided it with a competitive edge during this period.

PVR's Aborted Acquisition of DLF's DT Cinemas

-- Besta Shankar and Ramalingam Meenakshisundaram

In India, multiplexes gained popularity in the first decade of the 21st century. By November 2009, there were half a dozen big operators in this segment, with each operator having more than 50 screens. Competitive pressures and the need for scaling up also prompted some operators to evaluate other strategic options such as acquisitions and strategic alliances. The case discusses PVR's deal to acquire the DLF Group's DT Cinemas in November 2009, which was viewed as one such strategic move. However, the deal was cancelled in February 2010. Notwithstanding this cancellation, competition was expected to intensify in the multiplex industry in India with the entry of foreign players, the expansion and consolidation plans of Indian companies, and innovations in the cinema exhibition business in terms of miniplexes and megaplexes.

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

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

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

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

Indian Scenario

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

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