ETHICAL AND LEAGL ISSUES STANDARD:

Corporate concern about ethics has grown in prominence in recent times as business
entities strive to incorporate moral values and principles into their operations. Companies no
longer focus singly on profit maximisation and expansion of their businesses, but they also
explore ways of treating the consumers, employees, and the environment in a morally
praiseworthy manner.
It is a common practise in the contemporary organisations to find special departments that
are exclusively established to cater for the ethical needs of the organisations. As a matter of
fact, various independent bodies evaluate the extent to which organisations employ ethical
management and practise with the view of recognising their efforts and influencing
improved services.
Companies are also realising the connection between their ethical practices and
management, on the one hand, and the profit margins they register each financial period,
on the other hand (Shaw, 2011). This paper seeks to discuss the ethics concept in business
by specifically analysing PepsiCo’s practise in the same area.
Environmental management
PepsiCo has an established elaborate policy on the environment, health, as well as safety
management. The policy seeks to ensure that the company caters for its immediate
business environment effectively. The policy comprises of eight critical points that include
ownership culture, business integration, regulation compliance, as well as resource
allocation (PEPSICO, n.d.).
It additionally entails the aspects of performance measurement, continual improvement,
together with stakeholder collaboration and annual review.
In terms of ownership culture, for instance, the company’s policy identifies the need to build
and sustain a proactive culture through driving environmental ownership, individuals’ health
and safety, and managing the overall environmental aspect at the organisational level. The
company engages, consults, as well as trains its people to influence active participation to
enable these plans achieve realistic goals.
Another important aspect of the environmental management programme is the issue of
stakeholder collaboration. PepsiCo works in collaboration with its business partners, such
as the contractors, suppliers, licensed bottlers, along with the local communities and
customers to limit the health, environmental, and safety outcome related to its daily
operations.
Ethical Consumer Treatment
PepsiCo also strives to ensure that it treats its customers in morally acceptable ways
without allowing inhumane practices to penetrate through its corporate human resource
practises. The beverage and food company definitely deals with a large number of
consumers that may prove too tricky to handle or manage effectively because it is a large
multinational firm with a presence in almost all the continents in the world.
The firm has established a global code of conduct that generally identifies the main
objective of conducting business in the right way as a part of its corporate mechanism
aimed at ensuring that customers of the firm are treated in a moral way (PEPSICO, n.d.).
Employees are expected to adhere to these codes of conduct and embrace the underlying
principles as a way of ensuring that the company achieves and sustains its objectives for
long (PEPSICO, n.d.).
The code includes a requirement to show total respect at the workplace, an obligation to
always act with integrity within the marketplace, as well as the expectation that all workers
ensure ethics in the business activities that they undertake.
Additionally, and more importantly, workers are required to perform their respective tasks in
more responsible ways for the purpose of fulfilling the shareholders’ expectations effectively
(PEPSICO, n.d.). The company revises its acceptable practises more often to incorporate
changing laws that may, in one way or the other, affect on its corporate operations as a way
of making the corporate code of conduct more effective.
Moral Action towards Employees
PepsiCo fully supports and expresses a commitment to its entire workforce. The company
encourages a diverse corporate culture where any qualified individual from whatever race,
tribe, nationality, or gender can apply for job positions in the firm and be considered for
employment without any discrimination.

Environmental Management
Given its wide array of products, PepsiCo also uses a lot of packaging materials that end up
impacting negatively on the general environment (Wilburn & Wilburn, 2013). The company
should consider addressing this area by devising alternative packaging materials that will
not pose environmental hazards to the communities at large.
Customers
A great portion of food products manufactured and marketed by PepsiCo are junks. These
foods are responsible for the increasing dangerous health conditions, such as obesity and
high blood pressure. The company should not only regard the high profits that it rakes from
the sale of these foods, but it should also consider introducing healthier foods (Hall, 2007).
Employees
There are instances of deserving workers being omitted from planned promotions and other
employee benefits because of a large workforce that is evident at PepsiCo. The company’s
human resource management must ensure that it utilises effective computerised systems to
eliminate these unfortunate incidences.
Critical Review of PepsiCo’s Ethical Policies:
PepsiCo identifies six critical guiding principles that form the basis of its ethical policies and
management. They include care for customers, the sale of products that attract pride,
speaking the truth, and balancing the short-term plans with the long-term ones (PEPSICO,
n.d.). Additionally, the firm emphasizes diversity and inclusion, while highlighting the need to
respect others as a way of achieving success as a whole.
The company has divided these six critical guiding principles to address all its significant
areas of business. In particular, the principles address issues about customers, products,
verbal communication with the shareholders, and overall future ethical plan of the
organisation (PEPSICO, n.d.).
It also addresses the issue of employment with regard to a diverse workforce and the
employee conduct and behaviour not only towards the customers, but also towards the
employees (PEPSICO, n.d.).

Conclusion
PepsiCo, which is a leading global manufacturer of assorted products like foods and
beverages, has incorporated numerous ethical practices in its business strategy as a means
of achieving greater acceptability. Its ethical practises benefit the local communities,
 employees, as well as its customers. A code of conduct has been established to direct the
actions and activities of its employees.
This code of conduct has been designed in a way that ensures workers serve customers in
the most morally acceptable ways. On the other hand, the firm also observes an elaborate
plan that ensures its workforce is handled in the most morally satisfying ways.
This enhances their motivation and has the potential of influencing the attainment of more
profits and revenues. However, the company ought to consider the environmental impact
that its packaging causes. A large percentage of its food products are also mainly junks,
putting the health conditions of many of its consumers at risk.

 There is only 1 major difference in R and R studio. As R is an programming

language while R studio is an platform to use R. “Moreover, an important thing is
that its necessary to download both R and R studio. They are dependent to each
other.
R is a programming language for statistical calculation. And RStudio is an
Integrated Development Environment (IDE) that helps you develop programs in R.

R is a programming language and software environment for statistical analysis,

graphics representation and reporting. R is freely available under the GNU General
Public License, and pre-compiled binary versions are provided for various
operating systems like Linux, Windows and Mac. This programming language was
named R, based on the first letter of first name of the two R authors (Robert
Gentleman and Ross Ihaka), and partly a play on the name of the Bell Labs
Language S.

Feature

R is a programming language and software environment for statistical analysis,

graphics representation and reporting. The following are the important features of
R:

 R is a well-developed, simple and effective programming language which

includes conditionals, loops, user defined recursive functions and input and
output facilities.
 R has an effective data handling and storage facility
 R provides a suite of operators for calculations on arrays, lists, vectors and
matrices.
 R provides a large, coherent and integrated collection of tools for data
analysis.
 R provides graphical facilities for data analysis and display either directly at
the computer or printing at the papers.
  Provide staff with more flexibility

Flexible working hours, part-time work, alternate working hours and even working
from home, have been shown to considerably increase job satisfaction,
productivity and lead to higher motivation.

Offering more flexible work arrangements to employees can also lead to reduced

staff turnover, increased staff retention and can cut absenteeism.

 Support family time:

Understanding employee family commitments is an essential piece of the work-life

balance puzzle.

Making your employees aware of local childcare facilities or being flexible when
employees need to leave the office a little earlier to collect their children from
school or childcare, can go a long way towards improving relations and
performance in the workplace.

Encourage managers to focus on productivity, rather than hours

Rather than count the hours employees work, encourage managers to focus on the
completion of a particular task. Some days employees may need to put in long
hours to complete a task, but this is offset by the days when they don’t need to do a
full eight-hour day.

Not only can it help to increase employee retention, it can also boost your
company’s reputation as a respected employer.
 Support employees with technology:

Employers can support a better work-life balance for employees by providing

appropriate technology to aid with day-to-day tasks.

By choosing the right technology tools, staff can become more organised and
productive. Collaborative tools can also help staff feel less overwhelmed.

It provides a graphic representation for an organization to examine different

businesses in it’s portfolio on the basis of their related market share and industry
growth rates. According to this matrix, business could be classified as high or low
according to their industry growth rate and relative market share.
Relative Market Share = SBU Sales this year leading competitors sales this year.
Market Growth Rate = Industry sales this year - Industry Sales last year.

The nine cells of the GE matrix are grouped on the basis of low to high industry
attractiveness, and weak to strong business strength. Three zones of three cells each
are made, indicating different combinations represented by green, yellow and red
colors. So it is also called ‘Stoplight Strategy Matrix’, similar to the traffic signal.
ETOP analysis (environmental threat and opportunity profile) is the process of
gathering information about events and their relationships within an organization’s
internal and external environments. The basic purpose of environmental
scanning is to help management determine the future direction of the organization.
 Structuring of environmental issues is necessary to make them meaning full for
strategy formulation.

Robert Blake and Jane Mouton have developed the Managerial Grid, also called as
a leadership grid. According to them, the leadership styles can be identified on the
basis of manager’s concern for people and production.

Here, concern for people means the degree to which an individual is committed
towards the goal achievement, maintaining self-esteem to workers and satisfying
interpersonal relationships. Whereas, the concern for production means an attitude
of superiors towards the quality of procedures and policies, creativeness of
research, effectiveness of staff, work efficiency and volume of output.

1. Impoverished Management (1,1): The managers with this leadership style

exert minimum effort to get the work done by the subordinates. They have minimal
concern for both the people and production, and they function merely to preserve
their jobs and seniority. Therefore, the disharmony, dissatisfaction, disorganization
arises within the organization.
2. Task Management (9,1): Here, the leader is more concerned with the
production and lay less emphasis on the personal needs of his subordinates. This
leadership style is also called as a dictatorial or perish style, where the subordinates
are required to perform the task as directed by the superiors. In this leadership
style, the output in the short run may increase drastically, but due to stringent rules
and procedures, there could be a high labor turnover.
3. Middle of the Road (5,5): The manager with this style tries to keep a
balance between the organizational goals and the personal needs of his
subordinates. Here, the leader focuses on an adequate performance through a
balance between the work requirements and satisfactory morale. Both the people
 and production needs are not completely met, and thus the organization land up to
an average performance.
4. Country Club (1,9): Here, the leader lays more emphasis on the personal
needs of the subordinates and give less attention to the output. The manager adopts
this style of leadership with the intent to have a friendly and comfortable working
environment for the subordinates, who gets self-motivated and work harder on
their own. But however, less attention to the production can adversely affect the
work goals and may lead to the unsatisfactory results.
5. Team Management (9,9): According to Blake and Mouton, it is the most
effective leadership style wherein the leader takes both people and production hand
in hand. This style is based on McGregor’s Theory Y, where the employees are
believed to be committed towards the goal achievement and need not require
manager’s intervention at every step.The leader with this style feels that
empowerment, trust, respect, commitment helps in nurturing the team
relationships, which ultimately results in the increased employee satisfaction and
overall production of the organization.

Thus, the managerial grid is a graphical representation of different leadership

styles that manager adopts while dealing in the industrial settings.
Ignoring external trends: A failure to pay attention to short term external trends –
for instance, not properly tracking customer needs and understanding competitor
moves/motives – will trip up even the best strategies.

Overconfidence based on existing success: Even in difficult and challenging

markets, companies can overestimate the value of their business model, customer
base and ways of doing things.

Failure to respond to structural changes in the market: Refusing to

acknowledge that structural changes are real can also lead to flawed strategic
responses. When something new comes along, the answer is usually to move early,
no matter how painful it might be.

1. Environmental Scanning- Environmental scanning refers to a process of

collecting, scrutinizing and providing information for strategic purposes. It
helps in analyzing the internal and external factors influencing an
organization. After executing the environmental analysis process,
management should evaluate it on a continuous basis and strive to improve
it.
2. Strategy Formulation- Strategy formulation is the process of deciding best
course of action for accomplishing organizational objectives and hence
achieving organizational purpose. After conducting environment scanning,
managers formulate corporate, business and functional strategies.
3. Strategy Implementation- Strategy implementation implies making the
strategy work as intended or putting the organization’s chosen strategy into
action. Strategy implementation includes designing the organization’s
 structure, distributing resources, developing decision making process, and
managing human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy
management process. The key strategy evaluation activities are: appraising
internal and external factors that are the root of present strategies, measuring
performance, and taking remedial / corrective actions. Evaluation makes
sure that the organizational strategy as well as it’s implementation meets the
organizational objectives.

What Are Core Competencies?

Core competencies are the resources and capabilities that comprise the strategic
advantages of a business. A modern management theory argues that a business
must define, cultivate, and exploit its core competencies in order to succeed against
the competition.

Consumer behavior is the actions and the decision processes of people who
purchase goods and services for personal consumption” – according to Engel,
Blackwell, and Mansard,
 Improve Customer Service
Consumers require different levels of customer service, and understanding the
differences within your customer base will help you provide the most appropriate
service for individual needs.

. Competition:
One of the most important reasons to study consumer behavior is to find out
answers to some of the questions:
 Is the customer buying from your competitor?
 Why is a consumer buying from your competitor?
 What features attracts a consumer to your competitor products?
 What gaps are your consumers identifying in your products when compared
to your competitors? 

 Predicting Market Trend:

Consumer behavior analysis will be the first to indicate a shift in market trend.

Consumer Differentiation:
In marketing, consumer differentiation is a way to distinguish a consumer from
several other consumers. This helps to make a target group of consumers with the
same or similar behavior.

Talent acquisition is a strategy that focuses on finding, attracting, hiring, growing

and retaining top talents to get growth and be competitive.
 1. Not Radically Changing What You’re Doing. Stagnation is never a good
thing, but it’s especially bad in the recruiting...

2. Treating Every Req the Same. In other words: Most recruiters fill reqs
according to when they were opened, not...

3. Starting Each Job Search With a Job Posting. When a hiring manager comes
to you and says, “Becky just quit, we need...

4. Lack of Skills Required to Hire Top Talent. This is more of a mistake made

by the organization or...

5. Incomplete or Antiquated Job Descriptions

Not Following Through with Background Checks

Pre-Purchase Behavior:

When a consumer realizes the needs, he goes for an information search. He does
the same, so that he can make the right decision. He gathers the information about
the following −

 Product Brands

 Products Variations

 Product Quality

 Product Alternatives.

The consumer can gather information about a product depending on his age,
gender, education and product’s price, risk and acceptance.

1. Economic Factor
The most important and first on this list is the Economic Factor.The need of a
product also doesn’t play a role here, but the most important thing is affordability.

2. Functional Factor

The factor is totally about needs, backed by a logic that what makes sense and also
fits in the best interest of the customer. This one factor also plays a very important
role in the buying decision.

3. Marketing Mix Factors

There are 4 components in the marketing mix, i.e. product, pricing, promotion and
place of distribution. The consumers consider various things like the characteristics
of the product, price charged, availability of the product at the required location
and much more.

4. Personal Factors

The personal factors include age, occupation, lifestyle, social and economic status
and the gender of the consumer. These factors can individually or collectively
affect the buying decisions of the consumers.
Factors That Influence The Buying Decision, Contact Discovery, Influencing
Customers Buying Decisions, iSN, iSN Global Solutions, Sales Support Services,
Account Profilling

5. Psychological Factor

When it comes to the psychological factors there are 4 important things affecting
the consumer buying behaviour, i.e. perception, motivation, learning, beliefs and
attitudes.

6. Social Factors

Social factors include reference groups, family, and social status. These factors too
affect the buying behaviour of the consumer. These factors in turn reflect an
endless and vigorous inflow through which people learn different values of
consumption.

7. Cultural Factors
Cultural factors have a subtle influence on a consumer’s purchasing decision
process. Since each individual lives in a complex social and cultural environment,
the kinds of products or services they intend to use can be directly or indirectly be
influenced by the overall cultural context in which they live and grow. These
Cultural factors include race and religion, tradition, caste and moral values.

Consumer behaviour can indicates different things like how individuals or groups
choose to buy, use and dispose goods or services, to satisfy their needs and desires.
Hence it is important to understand that the consum

Neglecting to Check References

Brillio, a global digital consulting and technology services company, is focused on

implementing digital technologies for the world’s leading companies. Brillio uses
proprietary methodologies to help customers re-imagine their businesses and
competitive advantages and then rapidly develop and deploy disruptive industrial-
grade digital solutions using UX design, digital applications, big data analytics,
cloud, security, and digital engineering.

Brillio has invested in several proprietary tools that speed up implementation of

digital for its customers, and maintains its edge in innovation by investing in
advanced technologies, like machine learning and deep learning/Artificial
Intelligence. The 2,600-strong Brillio team is based in ten offices across three
continents and considers world-class customer satisfaction as its true north.

1.Coding Contest: Over 5,000 tech specialists have engaged with Brillio in coding
contests. These contests provide our team an opportunity to interact with the
brightest minds in the country and identify talent for niche areas that can otherwise
be difficult to fill.

2. Talent Attraction: Compelling Job Descriptions (JDs), that educate and inspire
candidates about the business unit they will work with at Brillio, are the first
important step. The recruitment team works closely with Practice and Business
Heads to create JDs, incorporating all the competencies and cultural requirements
in order to attract the right profiles.

3. The Hire, Train and Deploy Model: Their team now identifies core skilled
candidates in the market through their partners. Selected candidates are trained on
the required skills and deployed on projects. This model has been used for
“difficult to hire” skills.

4. Selection Process: Brillio’s recruitment framework outlines competencies and

behavioral traits required for every role. These help the Talent Acquisition team
work with the “Hire Right” mantra and bring in culturally fit candidates.

a. Technical Assessments (TA): Customized technical assessments and tools have

brought in the right talent and reduced recruitment cycle times. Using TA to save
USD 50 per candidate by filtering out the unqualified ones.

b. Behavioral Assessments (BA): Brillio has developed competency based

behavior assessments. The BA consists of two steps: A tool-based test and a
cultural fitment assessment done in person by trained interviewers. The culture
discussions are driven by senior HR and business leaders certified in the STAR
(Situation, Task, Action, Result) interview method.

5. Case Study Approach: Management graduates are selected using a case study-
based selection process. The candidates are incubated within their Consulting and
Advisory Group at Brillio and are required to interpret problems, ideate,
conceptualize and present solutions.

6. The team undergoes rigorous training on consultative selling, social recruiting,

using tools for talent attraction, video-based interviewing techniques and other
contemporary and emerging methodologies.

Search products or services have attributes customers can readily evaluate before
they purchase. A hotel room price, an airline schedule, television reception, and the
quality of a home entertainment system can all be evaluated before a purchase is
made.
Experience products or services can be evaluated only after purchase, such as
dinner in a new restaurant, a concert or theater performance, a new movie, or a
hairstyle. The customer cannot pass judgment on value until after he or she has
experienced the service. These types of products tend to be more differentiated
than search products, and buyers tend to be less price sensitive, especially if it is
their first purchase of said product.

Credence products or services have attributes buyers cannot confidently

evaluate, even after one or more purchases. Thus, buyers tend to rely on the
reputation of the brand name, testimonials from someone they know or respect,
service quality, and price. Credence products and services include health care;
legal, accounting, advertising, consulting, and IT services; baldness cures; pension,
financial, and funeral services etc

Information search and decision making.  Consumers engage in

both internal and external information search. 

Internal search involves the consumer identifying alternatives from his or her

memory.  For certain low involvement products, it is very important that marketing
programs achieve “top of mind” awareness.  For example, few people will search
the Yellow Pages for fast food restaurants; thus, the consumer must be able to
retrieve one’s restaurant from memory before it will be considered.  For high
involvement products, consumers are more likely to use an external search.  Before
buying a car, for example, the consumer may ask friends’ opinions, read reviews
in Consumer Reports, consult several web sites, and visit several dealerships. 
Thus, firms that make products that are selected predominantly through external
search must invest in having information available to the consumer in need—e.g.,
through brochures, web sites, or news coverage.
Dabur:

Dabur India Ltd is one of the leading FMCG Companies in India. The company is
also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic
products. They operate in key consumer products categories like Hair Care Oral
Care Health Care Skin Care Home Care and Foods.

The company operates through three business units namely consumer care division
(CCD) international business division (IBD) and consumer health division (CHD):
  Their CCD business is divided into four key portfolios: healthcare personal
care home care and foods.
 Their CHD business offers a range of healthcare products.
 Their IBD business includes brands such as Dabur Amla and Vatika.

Dabur India has always been a firm believer in technology. To some extent, the
vast use of information technology by Dabur has helped them to spread their
distribution system across India and all over the world. It has also helped them to
cut down on cost and increase profitability. Some of the major IT initiatives of
Dabur are-

Dabur implemented SAP ERP system from April 2006 for all its business units, a
more advanced ERP system than the earlier Baan and Mfg ERP system.

 Installed a country wide WAN infrastructure for running centralized ERP

system.

 They opened up their new data centre at KCO head office.

 Extension of reach system to distributors for capturing secondary sales data.

 Some of the future plans for Dabur are mainly focused on SAP ERP system.

 Integration with distributors and stockists using SAP

 Backward integration of SAP with suppliers.

  Implementation of SAP HR and pay roll.

The information technology services industry’s scope includes product support

services such as software and hardware maintenance and professional services
such as IT consulting and integration services. The increasing global demand for
systems, software, and services, as well as IT spending by governments, and
banking and financial sectors are likely to spur the growth of the information
technology services industry.

In 2001, Dabur decided to tackle its extended supply chain of over 30 factories, six
key warehouses, and 52 stocking points distributing over 1,000 SKUs to 10,000
stockists countrywide. The company needed a system to accurately control
distribution and sales forecasting to reduce inventory in the pipeline. Dabur went
ahead and built a system using Visual Basic and ASP with SQL Server 2000 as the
database. It decided not to use a packaged SCM solution due to the high cost and
relative lack of complications in its supply chain.

However, a few factors are expected to influence the growth of the information
technology services industry. These factors include:
 Planning and risk management: To stay efficient and effective across the
information technology services industry, timely assessments are needed. These
modifications are in response to changes in the market including global sourcing,
new product launches, credit availability and the requirement to protect intellectual
 property. Moreover, these risks must be identified and quantified to control and
mitigate.
 Supplier relationship management: It is essential to create, comprehend
and follow mutually agreed upon standards to better understand the current
performance and opportunities for improvement. Moreover, having two different
methods for communicating and measuring performance results in a waste of time
and effort.
Many such factors are compelling information technology services industry firms
to leverage the use of supply chain management solutions.

Supply chain management is the management of the flow of goods and

services and includes all processes that transform raw materials into final
products. It involves the active streamlining of a business's supply-side activities to
maximize customer value and gain a competitive advantage in the marketplace.

Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and

developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was
renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961.Pepsi is
manufactured by PepsiCo, which also owns well-known brands such as Walker’s
crisps, Dorito, Tropicana , 7UP, Mountain Dew etc.
exploratory factor analysis (EFA) is a statistical method used to uncover the
underlying structure of a relatively large set of variables. EFA is a technique
within factor analysis whose overarching goal is to identify the underlying
relationships between measured variables.It is commonly used by researchers
when developing a scale (a scale is a collection of questions used to measure a
particular research topic) and serves to identify a set of latent constructs underlying
a battery of measured variables.

Performing Factor Analysis

As a data analyst, the goal of a factor analysis is to reduce the number of variables
to explain and to interpret the results. This can be accomplished in two steps:

1. factor extraction
2. factor rotation
Factor extraction involves making a choice about the type of model as well the
number of factors to extract. Factor rotation comes after the factors are extracted,
with the goal of achieving simple structure in order to improve interpretability.

Multicollinearity occurs when independent variables in a regression model are

correlated. This correlation is a problem because independent variables should
be independent. If the degree of correlation between variables is high enough, it
can cause problems when you fit the model and interpret the results.

1Click the Analyze menu, point to Regression, and then click Curve
Estimation. The Curve Estimation dialog box opens.

2Transfer the weight variable to the Dependent(s) box and the age variable to
the Independent Variable box.
 Note: The dependent variable weight is predicted using the independent
variable age.
3Deselect the Plot models check box.
4Select the Display ANOVA table check box.
5 Deselect the Linear check box and select the Cubic check box under
Models.
6 Click the OK button.
 click Analyze > Regression > Linear... on the main menu, 
 You will be presented with the Linear Regression dialogue box below:
 Transfer the dependent variable into the box of Dependent and the

independent variables, into the  box of independent , using the   buttons,

as shown below (all other boxes can be ignored)
 Click on the Statistic button. You will be presented with the Linear
Regression: Statistics dialogue box, as shown
 In addition to the options that are selected by default, select Confidence
intervals in the Regression Coefficients– area leaving the Level(%): option
at "95". You will end up with the screen

 Click on the Continue button. You will be returned to the Linear

Regression dialogue box.

 Click on the Ok button. This will generate the output.


1. Go to the Analysis, then select Dimension Reduction, and then Factor as
shown in the graphic below.
2. To identify which items you want to use in the analysis, highlight the name
of each item from the list on the lefthand side and use the button to move it
across to the variables box
3. When you click on Extraction a new window will appear. This allows you to
decide on how the factors are to be extracted and how many factors to retain.
4. Select
5. Method (Maximum likelihood)
6. Display (Unrotated factor solution and Scree plot)
7. Extract
8. Maximum likelihood allows the test of a solution using a chi-square statistic.
9. Extract - you can either use a statistical criterion by allowing factors with
eigenvalues greater than 1 to be retained (this is the default option and this
option is used in the current example), or you can use previous research and
theory to guide your decision on how many factors there are.
10.Now you want to specify whether the factors that are extracted are correlated
(oblique solution) or uncorrelated (orthogonal). This is done using the
Rotation button.
11.If correlated , If not correlated, In Display
12.Click Continue
13.Click on the Descriptives
14.Select: Univariate descriptives, Initial solution, Coefficients and
Significance levels (which will provide you with the matrix of correlation
15.Continue
 16.Options button allows you to tell SPSS how to deal with missing values and
also how to structure the output

Extraction – determination of the appropriate number of factors. Concerned with

parsimonious solutions. The number of factors to be retained can be based on
eigenvalues and/or the inspection of a scree-plot.

Extract - you can either use a statistical criterion by allowing factors with
eigenvalues greater than 1 to be retained (this is the default option and this option
is used in the current example), or you can use previous research and theory to
guide your decision on how many factors there are. For example, if you were
factoring the EPQ you would click the Number of factors circle and specify 3 (or 4
if the Lie Scale is included)

rotation methods are either orthogonal or oblique.

SPSS offers five rotation methods: varimax, direct oblimin, quartimax, equamax,
and promax, in that order. Three of those are orthogonal (varimax, quartimax, &
equimax), and two are oblique (direct oblimin & promax).

 the best way to decide between orthogonal and oblique rotation is to request
oblique rotation [e.g., direct oblimin or promax from SPSS] with the desired
number of factors [see Brown, 2009b] and look at the correlations among factors . .
. if factor correlations are not driven by the data, the solution remains nearly
orthogonal.
A critical assumption of the EFA is that it is only appropriate for sets of non-
nominal items which theoretically belong to reflective
latent factors. Categorical/nominal variables (e.g., marital status, gender) should
not be included. 

Used to test the null hypothesis that a model has perfect model fit. It should be

applied to models with an increasing number of factors until the result is
nonsignificant, indicating that the model is not rejected as good model fit of the
population. This statistic should be used with a large sample size and normally
distributed data. 

one of the particular values of a certain parameter for which

a differential equation or matrix equation has an eigenfunction.
In wave mechanics an eigenvalue is equivalent to the energy of a quantum state of
a system

We call λ an eigenvalue.

In linear algebra, an eigenvector or characteristic vector of a linear

transformation is a nonzero vector that changes by a scalar factor when that linear
transformation is applied to it. The corresponding eigenvalue, often denoted by λ is
the factor by which the eigenvector is scaled.
 Manufacture

Manufacture

1. Explicit Expectations
Explicit expectations are mental targets for product performance, such as well-
identified performance standards.

2. Implicit Expectations
Implicit expectations reflect established norms of performance. Implicit
expectations are established by business in general, other companies, industries,
and even cultures.

3. Static Performance Expectations

Static performance expectations are the visible part of the iceberg; they are the
performance we see and—often erroneously—are assumed to be the only
dimensions of performance that exist.

4. Dynamic Performance Expectations

Dynamic performance expectations may help to produce “static” performance
expectations as new uses, integrations, or system requirements develop and
become more stable.

5. Technological Expectations
Technological customer expectations focus on the evolving state of the product
category. For example, mobile phones are continually evolving, leading to higher
expectations of new features.

6. Interpersonal Expectations
Interpersonal customer expectations reflect the relationship between the customer
and the product or service provider.Person to person relationships are increasingly
important, especially where products require support for proper use and
functioning.
7. Situational Expectations
In building a customer satisfaction survey, it is also helpful to evaluate why pre-
purchase expectations or post-purchase satisfaction may or may not be fulfilled or
even measurable.

1 Determine Your Ideal Salesperson Criteria.

What skills, habits, strengths, and motivations do you need? What do top
salespeople who sell to your ideal customers actually do?

2 Attract Top Salespeople.

The major online job sites are a good place to start. Write an ad that describes the
top salesperson, their experiences and their accomplishments; you want top
salespeople to say “that’s me”.

3 Assess All Candidates.

Consider letting a well validated and predictive assessment perform your first
screen. A good assessment not only saves time, but also delivers more qualified
candidates.

4 Qualify.

Conduct your first interview by phone if possible, make it a brief, tough, interview

to further qualify your sales rep candidates.
5 Full Interview.

This longer, recommended, in-person interview needs to challenge each candidate

to confirm that they are truly qualified and a fit for your company. Have at least
two people participate in this step to minimize your personal bias. Make sure these
people have the necessary skills to interview effectively.

6 Persuade.

After you have made the decision they are the candidate you want to hire, now is
your opportunity to sell your candidate on their very important role, their potential
rewards, sell them on the organization, and on the organizations’ leadership.

7 Onboarding.

Walmart began with the goal to provide customers with the goods they wanted,
whenever and wherever they wanted them. The company then focused on
developing cost structures that allowed it to offer everyday low pricing. Next,
Walmart concentrated on developing a more highly structured and advanced
supply chain management strategy to exploit and enhance this competitive
advantage and assume market leadership position.

Fewer links in the supply chain

Under a Walmart’s supply chain initiative – called Vendor Managed

Inventory (VMI) – manufacturers became responsible for managing their products
in Walmart’s warehouses. As a result, Walmart was able to expect close to 100%
order fulfillment on merchandise.

The company’s supply chain has only become more effective since then.

Walmart inventory innovation: Strategic vendor partnerships

Walmart has long practiced strategic sourcing to find products at the best price
from suppliers who are in a position to ensure they can meet demand. The
company then establishes strategic partnerships with most of their vendors,
offering them the potential for long-term and high volume purchases in exchange
for the lowest possible prices.

Furthermore, Walmart streamlined supply chain management by constructing

communication and relationship networks with suppliers to improve material flow
with lower inventories. The network of global suppliers, warehouses, and retail
stores has been described as behaving almost like a single firm.

Investing in advanced inventory technology

Technology plays a key role in Walmart’s supply chain, serving as the foundation
of their supply chain strategy. Walmart has the largest information technology
infrastructure of any private company in the world, and it is this state-of-the-art
technology and network design that allows Walmart to accurately forecast demand,
track and predict inventory level create highly efficient transportation routes,
manage customer relationships, and service response logistics.
Design products (and set prices) for rural consumers

Years ago, HUL pioneered the use of low-cost, single-use packets to make its
products affordable for lower-income consumers who often shop daily for
necessities (think of a ketchup packet, but filled with soap). 

Tap women to power sales

With its Shakti initiative, Hindustan Unilever Limited (HUL) pioneered the concept
of training local women as rural sales agents who sell Unilever products door to
door in their communities. 

Offer services rural consumers need

The blue star on the sign outside a shop in a Thai village was more than a
decoration. It signaled to customers that they would be entering a “store with star
quality.” That means they’d not only find attractive displays and a wide assortment
of Unilever products, but extra services such as community washing machines and
“food corners” for breakfast or snacks.

Its products include foods, beverages, cleaning agents, personal care products, etc.

BPO : Business Process Outsourcing is a subset of outsourcing that involves the
contracting of the operations and responsibilities of a specific business process to a
third party service provider. Originally this was associated with ,manufacturing
firm such as soft drinks (coca cola) that outsource large segment of its supply
chain.
Attrition has had far reaching adverse effects on the BPO Industry. High attrition
considerably increases
the operational costs of the organization. The organizations also have to deal
with disruptionsin work
due to unplanned exits. Higher the attrition, higher the drain on the
company’s resources like
recruitment expenses, training and orientation resources and the time. The
high attrition rate also
affects the productivity of the organization.
Attrition has had far reaching adverse effects on the BPO Industry. High attrition
considerably increases
the operational costs of the organization. The organizations also have to deal
with disruptionsin work
due to unplanned exits. Higher the attrition, higher the drain on the
company’s resources like
recruitment expenses, training and orientation resources and the time. The
high attrition rate also
affects the productivity of the organization.
Employee Retention : It refers to the various policies and practices which let the
employees stick to an organisation or company for a longer period of time.The
company is completely at loss when their employees leave the job due to low
salary, lack of growth prospects and due to dissatisfaction.
Employee retention has become a major concern for corporates in the current
scenario. This is responsibilities of the line managers as well as the management to
ensure that the employees are satisfied or not with their roles and responsibilities
etc.
Employee attrition: Employee attrition is a gradual but deliberate reduction in the
number of employees in a company or business organization. Employees will at
some point in time look to change their job places for a number of reasons. It might
be for professional or personal reasons but it does happen.
To define attrition in simple terms, it is when there is a diminishing in the number
of the workforce due to several factors that are very avoidable. Some of the reasons
for employee attrition are a lack of confidence in the leadership and market value
of the company, a work environment that is not conducive, absence of professional
growth, etc.

 It becomes all the more necessary for BPO industry to explore into the reasons for
this high attrition rate.

The reasons which have led to the employee rettrition in BPO Industry are: -

1. Improper Work Timings

2. Family Pressure
 3. Health problems due to imbalance in work-life pattern

4. Peer Pressure

5. Lack of growth options within the company

6. Other Career options like pursuing further education, joining other sectors.

7. Salary (at lower levels)

Similarly retention of quality talent has always been a pain area in indian BPO
industry and there are few ways to arrest the problem of retention of quality talent
in BPO industry:

 Create flexible environment : Firstly company can create and provide

flexible working environment to their employees which can help to keep them
engaged and efficient.Company can also try to provide flexible working hours for
employees and even they can also try to allow them to work from home.

 Offers performance incentives : Company should creating a incentives for

employees and this is going to make them more motivated and boost their morale.
  Shift rotation - It is said that "Permanent night birds fly away faster". To
retain them, suitable day-shift opportunities should be provided from time to time
 Offer fun activities : They should provide and invest in the fun activities
such as events , parties, cafeteria and provide trendy interior etc. Through these
activities employees are going to enjoy their time and more likely stay in the
company if they find the company culture to be fun.
 Provide opportunities for career growth : One way they can encourage
career growth and professional skills development of employees by provide
valuable work advice.

 Understand their employees demands and needs : It leads to the

companies's success in the markets where they are in. If company can understand
their demands and needs then employees chooses to stay with the company and it
lead to gain drastic cost saving.

 Place right employee at right job : Company should provide right job to
the employee according to their talent and skills they have.

 Providing employee benefits : The other way is if company will provide

other benefits to employees such as proper salary ,health insurance , security
insurance , free food etc . This will increased productivity ,boost morale of the
employees.

 Motivation : If the company will motivate their employees and trust their
abilities and try to treat employees right then employees will stay with the
company for longer period of time.

So these are the fews ways to retain the quality talent in BPO industry.
 An R function is created by using the keyword function.

The different parts of a function are:

 Function Name: This is the actual name of the function. It is stored in R

environment as an object with this name.

 Arguments: An argument is a placeholder. When a function is invoked, you pass a

value to the argument. Arguments are optional; that is, a function may contain no
arguments. Also arguments can have default values.
 Function Body: The function body contains a collection of statements that defines
what the function does.
 Return Value: The return value of a function is the last expression in the function
body to be evaluated.

R has many in-built functions which can be directly called in the program without
defining them first. We can also create and use our own functions referred as user
defined functions.

 You can download the Windows installer version of R from R-3.2.2 for

Windows (32/64 bit) and save it in a local directory.

 As it is a Windows installer (.exe) with a name "R-version-win.exe".

 You can just double click and run the installer accepting the default
settings. If your Windows is 32-bit version, it installs the 32-bit version.
 But if your windows is 64-bit, then it installs both the 32-bit and 64-bit
versions.

After installation you can locate the icon to run the Program in a directory
structure "R\R3.2.2\bin\i386\Rgui.exe" under the Windows Program Files.
Clicking this icon brings up the R-GUI which is the R console to do R
Programming.

 There are some packages as foreign which allow to perform this operation.

The package foreign is already present in the base distribution of R system
and you just need to activate it using the function library().
 When you activated the package, you can open your file if you know where
it’s located the simpler method to locate a file is to send the instruction.
 The system will open a window for the file access; you can look for your file
in the folder where you have earlier archived it. R return the path to file.
 Now, you can read the SPSS file using foreign, specifying the path to file.
.

Descriptive statistics is often the first step and an important part in any statistical
analysis. It allows to check the quality of the data and it helps to “understand” the
data by having a clear overview of it. If well presented, descriptive statistics is
already a good starting point for further analyses.
 A descriptive statistics report normally comprises of two components, measures of
central tendency and the variability of data.  It’s crucial that your understanding of
each of these parameters is solid because it serves as a foundation to advanced data
analytics.

1. Mean: It is obtained by averaging all the numerical observations in a dataset.

2. Median – It is the midpoint that separates the data evenly into two halves.
The median, unlike the mean, is not sensitive to extreme values and outliers.
3. Mode – It tells which observation occurs most frequently in the dataset.
Notice that the last two measures only apply to numerical data whereas mode can
be taken for nominal data as well.
4. Range– It’s the difference between the extremes of your data.
5. Standard Deviation– It estimates the variation in numerical observations.
6. Variance– It measures how spread out or scattered values are from the
mean. Standard deviation squared is essentially the variance.
7. Skewness– It speaks about how symmetric your data is around the average.
Depending on where the extreme values lie, your data may have a positive or
negative skew.
8. Kurtosis– It is a visual estimate of the variance of a data. Your normal
distribution curve may be peaked or flat, kurtosis estimates this property of your
data.
9. Interquartile Range– It divides the data into percentiles. Interquartile range
is often a more interesting statistic, it is the central 50% of the data.

 We’ll first start with loading the dataset into R.

 The summary function in R is one of the most widely used functions for
descriptive statistical analysis. It gives you information such as range, mean,
median and interpercentile ranges.
 R also allows you to obtain this information individually if you want to keep
the coding concise. For instance, the “mean()” function can be used to get
the average of your data. However, you need to enter a list in such functions
instead of a data frame as could be used with “summary()”.

 This tells you the average breaks that happen during weaving. You can
calculate median(), range(), length(), min() and max() in a similar manner. 
However, in order to obtain measures of variability you need to install
additional packages. The skew, for instance, can’t be calculated directly
using an in-built function of R. The “moments” package gives you some
very convenient methods of doing this. Your code to individually calculate
skewness and kurtosis should look like this.
  Open Source: R is an open-source programming language. This means that
anyone can work with R without any need for a license or a fee.
Furthermore, you can contribute towards the development of R
by customizing its packages, developing new ones and resolving issues.

 Quality Plotting and Graphing: R facilitates quality plotting and graphing.

The popular libraries like ggplot2 and plotly advocate for aesthetic and
visually appealing graphs that set R apart from other programming
languages.

 Highly Compatible: R is highly compatible and can be paired with many

other programming languages like C, C++, Java, and Python. It can also be
integrated with technologies like Hadoop and various other database
management systems as well.

 Platform Independent: R is a platform-independent language. It is a cross-

platform programming language, meaning that it can be run quite easily on
Windows, Linux, and Mac.

Export data from R to Excel:

Export data from R to Excel is trivial for Windows users and trickier for Mac OS
user. Both users will use the library xlsx to create an Excel file. The slight
difference comes from the installation of the library. Indeed, the library xlsx uses
Java to create the file. Java needs to be installed if not present in your machine for
Data R export to Excel.
Windows users:

 If you are a Windows user, you can install the library directly with conda to
export dataframe to excel R.

 Once the library installed, you can use the function write.xlsx(). A new
Excel workbook is created in the working directory for R export to Excel
data.

Dabur India Ltd was incorporated on September 16, 1975 for manufacture of high-grade
edible & industrial guargum powder and its sophisticated derivatives. In the year 1978, the
company launched Hajmola tablet, an Ayurvedic medicine used as a digestive aid. In the
year 1979, they set Dabur Research Foundation.
Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of over Rs 7,680
Crore & Market Capitalisation of over Rs 48,800 Crore. Building on a legacy of quality and
experience of over 133 years, Dabur is today India’s Most Trusted Name and the World’s
Largest Ayurvedic and Natural Health Care Company.
  Dr. S. K. Burman of making health care products in 1884, has over the past 130 years
turned into the World's Largest Ayurveda company . Check out this section and read about
the road embarked upon by our founders and leaders to help Dabur achieve this milestone.
Originating nearly 5,000 years ago, Ayurvedic texts were researched by Dabur in its quest
for natural remedies. Today, its application in modern life has been renewed through the
scientific research and validation undertaken at Dabur. Explore this section to know more
about how our products are inspired by the Purity of Ayurveda.
Few facts about the company :
1. Leading consumer goods company in India with a turnover of Rs. 5,283 Crore
(FY12).
2. 2 major strategic business units (SBU) - Consumer Care Business and International
Business
3. Division (IBD)
4. 2 Subsidiary Group companies - Dabur International and NewU and several step
down
5. subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian
Consumer Care
6. (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care
(Nigeria),Naturelle
7. LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA)
8. 17 ultra-modern manufacturing units spread around the globe.
9. Products marketed in over 60 countries.
10. Wide and deep market penetration with 50 C&F agents, more than 5000 distributors
and
11. over 3.4 million retail outlets all over India.
DABUR SUPPLY CHAIN MANAGEMENT:
Dabur the leading personal and healthcare company among the four FMCG giants in India
is managing the Oldest Supply Chain in India. Dabur is over 125 years old and deals with
the diversified product range in ‘Natural and Herbal’ which leads to the EBITDA –quarter
growth of 27.8% and consolidated Q1 net Profit up 19.6% at `127.74 Cr with Revenue
surges 31.6% to `1216.24 Cr, for the Q1 2011-12. Building on a legacy
of Quality and Experience, Dabur is at present India’s trusted name and world’s largest
Ayurvedic and Natural Helath Care Company having distinct brand identities such as Dabur
master brand for the natural health care product, Vatika for premium personal care, Hajmola
for digestives, Real for fruit juices and beverages & Fem for fairness bleaches and skin care
products.

Dabur procures raw materials worth around `500 Cr from a wide base of vendors. The
Company has wide and integrated distribution network for its around 600 SKU delivering to
around 2100 stockiest, further connecting to the thousands of retail outlets covering every
small and remote part to organized stores of India. Dabur has improved distribution system
through its unique Retails Excellence program, “DARE” (Driving Achievement of Retail
Excellence). the Program covers a major objective as a channel focus, activating key
customer, improving rural focus, rewarding distribution efficiency, maximizing brand impact
and building information capabilities.

Dabur has used Direct Shipment Strategy which was implemented in order to bypass
warehouses and distribution centers. Thus Dabur delivers products directly to the
retailers/consumer through the Institutions & Modern Trade System. Advantages of
implementing strategy are –
·         The retailer avoids the expense of operating a distribution center
·         Reducing lead time

Thus, Dabur has achieved cost reduction in the transportation process which overall adds to
the reduction in price of the product. By this strategy Dabur has reduced the lead time,
bringing Dabur and other elements in the Supply Chain closer which improves overall
efficiency of the supply chain as shown in following figure. Reduction in lead time has added
in reduction in Bullwhip Effect of the Supply Chain. Dabur has managed to minimize the
Inventory-Transportation cost Trade-off. By elimination of the warehouse in supply chain,
the company has reduced the inventory carrying cost and Implementing ‘Milk run’ system by
the small truck loads Dabur has managed the increased transportation cost in the chain.
Overall efficient tactics in the supply chain has made Dabur to succeed and sustain in the
supply chain network and has increased the entry barriers in the FMCG industry. Thus,
Dabur having strong distribution network will have to cope up when organized distribution
network plays a major role.
MANAGING GLOBALLY SUPPLY CHAIN
OF DABUR :
Worldwide expansion can be the defining achievement for a business – but such success
doesn’t come easily.
Conquering each corner of the globe presents major challenges for every key stakeholder in
a company, and those in the procurement division know better what it takes to ensure
efficiency in very different markets.
Technology is a major help for supply chain leaders. Recent innovations have led to most
procurement operations becoming obsolete only after a few years. With businesses in the
midst of confronting the inevitability of the ‘Fourth Industrial Revolution’, technology such as
artificial intelligence (AI) is now mission-critical for the compatibility of a supply chain.
As Global Procurement Head for Dabur International, the global expansion arm of Dabur
Group India, Raman Singh is overseeing a technology-driven transformation of the
company’s procurement strategy. Yet, while he is in no doubt about the impact AI has and
will continue to have on his team’s work, Singh also values a different type of intelligence
when it comes to taking the business and its suppliers to new shores.
“Emotional intelligence is also becoming very important,” explains Singh in an exclusive
interview. “A person working in Egypt will have a very different work culture than a person
working in India, a person working in Europe or a person in the United States.
“When you are operating on a global scale, each country, each culture is different to
another and they have to be respected in the same way. You have to build confidence with
them, within your team, and with your supply partners.

Globalisation is one of those politically charged words that often implies more than it
actually means. From the relatively benign “the world is flat” philosophy that suggests
offshore factories help stimulate U.S. imports, to the “offshoring costs American jobs” idea
that everything can and should be made in the United States, everybody in manufacturing
has an opinion on whether globalization is good or bad for their companies and/or their
fellow citizens.
Some might suggest, in fact, that globalization is a fait accompli. As Daniel Akerson,
chairman and CEO of General Motors Co. (IW 500/4) pointed out at a news conference in
2011, seven out of 10 of all GM vehicles are made outside the United States, and the trend
shows no signs of stopping.
There’s nothing very new about globalization, though, a concept that basically refers to the
practice of sourcing, manufacturing, transporting and distributing products outside of your
native country. Its modern application predates the rise of the Internet by a good 40 years,
beginning in the early 1950s when container shipping was introduced, making it possible to
quickly, efficiently and economically move entire container loads onto ocean vessels at
ports of call throughout the world.

As the world has gotten flatter and supply chains have gotten longer, the need for companies to
follow best practices in global supply chain management has intensified. Gary Miller has a deep
familiarity with such a role, having spent 40 years as vice president, global supply chain and
chief procurement officer with $23 billion tire manufacturer Goodyear Tire and Rubber Co. (IW
500/54) before taking on the same role in 2008 at A. Schulman Inc. (IW 500/343), a $2.5 billion
plastics manufacturer. As Miller explains it, he’s responsible for Schulman’s supply chain and
procurement activities to better leverage its worldwide purchasing power, reduce materials
inventories, eliminate waste and improve efficiency. The company has 35 facilities globally,
with nearly 70% of its revenues derived out of the European market.
“We have global customers that we service around the world,” he says. “Europe is a very large
region for us, so we have deep relationships with our customers there. As those customers
expand around the world, they’re also looking for us to come with them.”
For instance, Schulman has some large customers in the German automotive market who are
opening facilities in China. Consequently, Schulman is following its customers into China to
manufacture and supply the same plastics products that are being used in Germany. “Now we
can continue to supply them our products from Germany if we want to, but the advantage is that
if they’re in China and we have manufacturing in China, then we can transfer our manufacturing
technology to China and provide those parts on a local basis. It’s much better for our customers
because they get our products with a much shorter supply chain. It’s much better for us because
we can get our products to the customer with a shorter supply chain as well.”
A FORMULA FOR SUCCESS
Earlier this year, a factory explosion at an Evonik Industries plant in Germany dramatically
reduced the amount of nylon supply available to its customers, one of those customers
being A. Schulman. This could have led to a supply chain disaster, had it not been for a
risk-management best practice Schulman and other plastics manufacturers follow: shifting
to alternate materials and in some cases, alternate formulations.
“In some cases, we are single sourced with a raw material,” Miller says, “but we look very
specifically at those products and determine how we can develop other formulations or find
other materials, which can be utilized in place of that. This nylon situation is a good
example. The industry was going to be extremely short of nylon based on what happened to
Evonik. Fortunately, we have an active program underway with another nylon producer of a
substitute material, and it gave us the ability to help the industry find an alternative that was
suitable for use.”
As Miller sees it, procurement is a particularly fertile area for synergy because of the
opportunities to arbitrage currency, import duties or export duties. One of the key elements
of managing the procurement process, he says, is having a global communication system
so that they understand what they’re buying in every region. “In regions like Asia, for
instance, it helps us to identify, develop, evaluate and commercialize new sources of supply
for materials that will give us a performance advantage, a cost advantage or a security of
supply advantage. Those are the types of things that we’re looking for as we look at trying
to find new sources of supply.”

Expansion into New Markets

When Mike Dennison, president of the High Velocity Solutions business group at $29 billion
electronics contract manufacturer Flextronics International (IW 1000/141), hears the word
globalization, the first thing he thinks about is speed and execution. Usually it’s tied to what
his customers need relative to globalization, which could mean launching a product globally
on three different continents in a six-week timeframe. “From my perspective, globalization is
about speed of getting customer demands and needs met on a global basis.”
Dennison cites the example of a company with a manufacturing facility in China that wanted
to expand production into Brazil. “The first thing you have to understand is that
manufacturing in China is massively different from manufacturing in Brazil, in a number of
ways: in how we set up our factories, in how we work with the government, in how we get
product into the factories and then out of the factories as finished goods and into the hands
of the consumer. And in this particular case, we needed to build a factory, fill a factory and
hire a labor force in about 120 days.”
"Globilization is about speed of getting customer demands and needs met on a global
basis."-Mike Dennison, president, Flextronics High Velocity Solutions
“It gets to be a very complicated endeavor which, frankly, is where we start to add real value
because helping a company expand into a new market is not easy to do,” Dennison
observes. “You’re not going to get Brazil right unless you have the background of knowing
what you’re doing in China, in this particular case.”
Though Flextronics is traditionally considered a contract manufacturer, or a provider of
electronics manufacturing services, Dennison points out that these days many of their
customers, especially emerging companies not typically in the hardware business, rely on
Flextronics more for design services and new product introduction support.
“There’s a whole new world of companies entering into the electronics market that need a
vastly different capability than the likes of HP, Dell and Cisco Systems,” he notes. “The only
thing this new customer base cares about is having a product that no one else has ever
seen, heard of or even thought of, like the wearable technology products that Nike is doing.
We see a lot more of that type of business now than customers asking us to build 5 million
cellphones that look just like a competitor’s products.”

Ensuring Reliability of Supply

In a poll of C-suite supply chain executives, analyst firm Aberdeen Group found that the
growing complexity of global operations is the biggest challenge these executives face.
“Supply chains that were once purely domestic have now gone international as an
increasing number of shipments flow across borders and supply and demand imbalances
increase,” points out Bob Heaney, senior research analyst at Aberdeen Group. But what
many of these companies are discovering, he says, is that “many of the benefits derived
from their finely tuned/optimized domestic supply chains are being cancelled out by their
poorly performing global supply chain.”
Technology, Heaney points out, has become a key enabler in the transformation from
domestic to global supply chains, particularly to gain visibility to all supply chain partners.
Mike Owen, vice president, global supply chain, with $6 billion specialty chemical company
The Lubrizol Corp., a Berkshire Hathaway company, would certainly concur that the right
solution can provide a competitive advantage, particularly as the company executes on its
growth strategy in some sizable regions – Asia-Pacific, Latin America, India – where
Lubrizol has not had a large supply chain employee base.

Finally, Lubrizol measures its performance using roughly 10 operational standard metrics,
which are updated on a monthly basis, which include such things as: Did we ship as we
promised? How long did it take us to respond and confirm the shipping date after we
received the order? How accurate was our invoice? “It all gets back,” Owen stresses, “to the
cornerstone that reliability of supply is key to whatever decisions Lubrizol makes.”
five things for managing a global supply
chain:
1. Work With People That Can Oversee
The Supply Chain
If you want your supply chain to run like a well-oiled machine, you’re either going to need to
hire someone with the right knowledge and skills, or partner up with an expert or a
consultant that can offer relevant advice, or even oversee the entire process.
Ideally, you need to find someone that has expertise with different localities. For example, if
you’re transferring product from China to the US, you’ll want to make sure you’re working
with sometime things familiar how things woks in china
This is a rudimentary example, since you might be transferring products from one location
to another, and then selling them in another region. However, the overall sentiment
remains; work with an expert that knows what they’re doing.

2. Manage Your Ecommerce Sales

Forecasting
With a global supply chain, products are going to be moving from one location to another.
Not only is timing critical, so is sales forecasting.
Buying too much inventory could mean losing money and having to hold on to
product for longer than expected.
This could result in additional overhead in the form of warehousing. Plus, it always takes
longer to ship product on an international scale , so you better have a pretty good idea of
how much product you actually need.

3. Have a Plan B
Even the best laid plans can sometimes go awry. If you don’t have any backup plans, you
might end up losing sales and frustrating your customers.
When you’re dealing with international suppliers, things can easily get lost in translation.
Furthermore, some distributors might end up flaking on you.
Once you’re dealing in business globally, remember to have a solid plan B. This is the only
way to ensure that things don’t fall apart at the last minute.

4. Utilize Supply Chain Software

Companies today have access to a myriad of tools to help them manage their supply
chains. To not take advantage of the technology available would be to shoot yourself in the
foot.
You can use modern software tools to track and manage inventory, order processing,
supplier management, and more.
The right software can help you gain a big-picture view of how things are progressing with
your supply chain, and that’s a huge advantage in monitoring the vitals of your business.
5. Stay Up-To-Date
Best practices, laws, and regulations shouldn’t be ignored.

You need to stay on top of relevant concerns, and make sure your suppliers can ensure product
compliance on an ongoing basis. 

Conclusion
Increased security and improved resilience are required to mitigate these risks. Regular testing
of infrastructures using simulated disruptions can provide a better understanding of potential
issues and possible deficiencies. Organisations that are dependent upon SCM must develop
appropriate criteria for the appraisal of supply chain performance, and continuously measure
this performance. 

By implementing a SAP ERP system, Dabur India has helped itself in retaining the position as a
growing leader in the fast moving consumer goods section (FMCG). Its move to disable the baan
and Mfg ERP was seen as a highly innovative move. This has also enabled them for better sales
forecasting and improvement in their sales after the implementation of SAP raised several eye
brows. The move to make this system available for all the employees starting from the top
management to the bottom strata has what made Dabur distinguish itself from the other
companies in the FMCG sector. With the implementation of MYSAP, Dabur has been able to
make some very important strategic decisions and thus increasing its productivity.

As mentioned above, implementation of ERP has helped Dabur to increase its productivity; it
means that there is obvious, rise in profitability too as both is directly proportional. One may
say that the ultimate strength of Dabur is they are keeping themselves with latest happenings
across the IT field. They even plan to integrate distributors and stake holders using SAP. The
most challenging part from Dabur would be link HR with SAP. They are planning to implement
a SAP HR and pay roll pattern.

All the above mentioned initiatives would enable Dabur grow even bigger as what it is now and
become a global leader in the FMCG sector.