operational strategies to counter recession

7/30/2019 Operational Strategies to Counter Recession

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Dei Faculty of Social Sciences,Department Of Management

A PROJECT REPORT ON

OPERATIONAL STRATEGIESTO COUNTER

ECONOMIC RECESSION


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ACKNOWLEDGEMENTS

I wish to place on record my sincere gratitude to Dr.Sanjay Bhushan, under

whose guidance this study has been undertaken. I have immensely benefited

from his advice on all aspects of this study and I am grateful to him for devoting

his precious time for giving me valuable suggestions. His enthusiasm and

encouragement for the study was infectious and extremely heartening.

My grateful thanks are also due to Dr. K.Shanti Swarup and Dr. Shalini

Nigam, who have not only been a source of constant encouragement to me, but

have been ever willing to contribute in academic pursuits. They gave very useful

insights in the subject of my study, for which I am extremely grateful.

I would also like to place on record my sincere thanks for Mr.Ankur

Kashyap, Mr.Prakhar Mehra, Mr.D.Sumir Rao, Mrs.Aarti Gupta Satsangi,

Mr.Manish Dua, and Mr.Asheesh Mathur for the help they gave by making useful

and relevant data available to me and for spending their precious time for

extensive discussions.

I am grateful to numerous other colleagues and friends who have

contributed information and ideas, although, there are too many of them to

mention individually.

SAMRATH KASHYAP(BBM Ist SEMESTER)4TH Oct., 2009

PREFACE


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Food, clothes and shelter are the fundamental requirements of all human

beings. From pre-historic times to the present day Modern societies,

Governments are constantly engaged in efforts to meet these basic needs of its

citizens. Economies have evolved from Food Gathering, to Basic Village

Economies, to National economies to Regional economies, and finally to a

Globally Networked Economic System.

With the development of technologically advanced communication and

transportation systems and the policies of Liberalization and Globalization being

followed, the world has shrunk into a Global village. Due to this any

development, now, whether positive or negative, has immediate cascading impact

on the entire Global Economic system.

Through this brief Project Report a modest attempt is being made to

understand:

The concept and meaning of Recession.

The impact of Recession on the Indian Economic System

analysed through Statistical Information pertaining to major

Economic Indicators.

Collect sample data of some companies through the

Questionnaire Method; to understand whether Recession has

made any impact on them and if so, then what are the strategies

adopted by the companies to combat Recession.

Needless, to say, Recession is one of the major challenges not only for

India, but for the entire Global Economic System. It has a direct impact on the

lives of all citizens. It not only affects the GDP, per capita income etc., but it also

results in substantial unemployment. An understanding of this malaise and the

methods to remedy it, therefore, are extremely relevant and topical today.

SAMRATH KASHYAP(BBM Ist SEMESTER)4TH Oct., 2009

CONTENTS


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SN TOPIC PAGENO.

A Acknowledgement 2

B Preface 3

C Contents 4

I ECONOMIC RECESSION: CONCEPTSTRUCTURING

5-7

II MACRO VIEW OF RECESSION IN INDIASCONTEXT: HIGHLIGHTS FROM ECONOMICSURVEY REPORT 2008-09

8-13

Iii ANALYSIS OF DATA COLLECTED THROUGH

QUESTIONNAIRES14-19

iv IN CONCLUSION 20-21

V BIBLIOGRAPHY 22

vi ANNEXURES I (Sample of Questionnaire) 23-27

VII ANNEXURES II (Responses to Questionnaire) 28-46

I. ECONOMIC RECESSION: CONCEPT STRUCTURING


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Economic recession is defined as a significant decline in

economic activity across a country, lasting longer than a few

months. Normally, recession is visible in real GDP growth,

industrial production, wholesale-retail trade, real personal

income, and employment.

Broadly speaking, it is a period of slow or negative

economic growth, usually accompanied by rising

unemployment. Economists often view recession in two ways:

The first, which can be hard to prove, is when an

economy is growing at less than its long-term trend

rate of growth and has spare capacity.

The second is two consecutive quarters of falling

GDP.

For countries round the world, to experience mild

Recession, is actually more common than we might realize.

Recession (or contraction) is a natural result of the economic

cycle and it adjusts to changes in consumer spending and

consumption; or increasing and decreasing prices of goods and

labour. However, experiencing a multitude of these negative

factors simultaneously, can lead to a deep recession or even

long economic depression.

An economic recession is primarily attributed to the

actions taken to control the money supply in an economy. The


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Reserve Bank of India is the agency responsible for

maintaining the delicate balance between money supply,

interest rates, and inflation. When this delicate balance is

tipped, the economy is forced to correct itself.

The Reserve Bank sometimes deals with these situations

by dumping huge amounts of money supply into the money

market. This helps to keep interest rates low, even as inflation

rises. Inflation is the rise in the prices of goods and services

over a period of time. So, if inflation is increasing, it means that

goods and services are costing more now than they did before.

The higher the level of inflation, the smaller the percentage of

goods and services is which can be bought with a certain

amount of money. There can be many contributing factors for

inflation, which include but are not limited to increased costs of

production, higher costs of energy, and/or the national debt.

In an environment where inflation is prevalent, peopletend to cut out things like leisure spending. They also budget

more, spend less on things they usually indulge in, and start

saving more money than they did. As people and businesses

start finding ways to cut costs and derail unneeded

expenditures, the GDP begins to decline. Then, unemployment

rates will rise because companies start laying off workers to cut

more costs, because consumers are not spending like they

were. It is these combined factors that manage to drive theeconomy into a state of recession.

This set of circumstances, coupled with the ability of

people to get access to greater amounts of loan money due to

extremely lax loan practices, creates a cycle of unsustainable


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economic activity that will eventually grind an economy to a

near halted existence.

Effects of economic recession

Generally, an economic recession can be spotted before

it actually happens. There are ways to spot it before it actually

hits by observing the changing economic landscapes in

quarters that come before the actual onset. You will still see

GDP growth, but it will be coupled with signs like high

unemployment levels, housing price declines, stock market

losses, and the absence of business expansion. When aneconomy sees more extended periods of economic recession,

it goes beyond a recession and is declared that the economy is

in a state of depression.

The only real benefit of an economic recession is that it

will help to cure inflation. In fact, the delicate balancing act that

the Government struggles to pursue is to slow the growth of theeconomy enough so that inflation will not occur, but also so that

a recession will not be triggered in the process.

II MACRO-VIEW OF RECESSION IN INDIASCONTEXT: HIGHLIGHTS FROM ECONOMICSURVEY REPORT 2008-09


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Before, we proceed ahead, it is important to

understand the scope and extent of the impact of

Recession in India. Statistical information compiled by

the Statistical Organisation of India and analysed andreproduced in the Economic Survey of India 2008-09, is

used below to provide an overview of the Indian

Economic Scenario. Some important statistical

highlights of the Economic Survey Report are

reproduced as under:

According to the Economic Survey 2008-09, Economic Growth

decelerated in 2008-09 to 6.7%, which represented a decline

of 2.1% from the average growth rate of 8.8% in the previous 5

years.

The growth of GDP at factor cost (at constant 1999-2000

prices) at 6.7% in 2008-09 nevertheless represents a

deceleration from high growth of 9.0% and 9.7% in 2007-08

and 2006-07 respectively.

Per capita GDP growth (which actually reflects the per capita

income) grew only by an estimated 4.6% in 2008-09. This

represents a substantial slowdown from the average growth of

7.3% per annum during the previous 5 years.

Though growth of the industrial sector started to slowdown in

the first half of 2007-08, the overall growth during that year

remained as high as 8.5%.


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The performance of six core industries comprising crude oil,

petroleum refinery products, coal, electricity, cement and

finished steel (carbon) grew at 2.7% as compared to 5.9% in

2007-08.

The growth in index for crude oil turned negative 1.8% as

compared to positive 0.4% in 2007-08.

Economic survey rings alarm bells about the on-going effects

of the global slowdown on employment and has pressed upon

the government the urgency of a major response, especially in

the unorganised sector.

Economic survey also cites a sample survey, conducted by the

Commerce Ministry, which indicates 1,09,513 people lost

their jobs between August and October 2008, in export

related companies in several sectors, primarily textiles,

leather, engineering, gems and jewellery, handicrafts, food

and food processing.

Economic survey 2008-09 forecasts a growth rate of 6.25 -

7.75% for the Indian economy during the current financial year

(2009-10).

INDIAN ECONOMYS PROFILE


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ECONOMY (% GROWTH) 2006-07 2007-08 2008-09

GDP at factor cost 9.70 9.00 6.70IIP 11.60 8.50 2.60

Manufacturing 12.50 9.00 2.30Electricity 7.30 6.30 2.70Food grains production (Mn. Tonnes) 217.30 230.80 229.90Wholesale price index inflation (52 weeks) 5.40 4.70 8.40Consumer price index industrial workers 6.70 6.20 9.10Growth of money supply (M3) (in percentage) 21.30 21.20 18.40Savings (as % GDP) 35.70 37.70 N.AInvestment (as % of GDP) 36.90 39.10 N.AFiscal deficit (as % GDP) 3.50 2.70 6.20Revenue deficit (as % GDP) 1.90 1.10 4.60Primary deficit (as % GDP) -0.20 -0.90 2.60

Direct tax revenue (as % GDP) 5.30 6.30 6.90Indirect tax revenue (as % GDP) 5.80 5.90 6.00

Subsidies (as % GDP) 1.30 1.40 1.30Average cost of government borrowing (in %) 8.40 8.50 8.40

EXTERNAL SECTOR 2006-07 2007-08 2008-09

Export in $ (% growth) 22.60 28.90 3.6Imports in $ (% growth) 21.40 35.20 14.4Exchange rate (Rates per $) 25.28 40.26 45.99Export as % of GDP 14.10 14.10 14.41Imports as % of GDP 20.90 21.90 24.53Current account balance as % of GDP -1.10 -1.50 -2.57Short term debt to foreign currency assets (in %) 13.70 ----- -----Foreign direct investment in $ mn 7693 15401 27807Foreign industrial investment in $mn. 7060 29556 -13855Forex reserves in $bn. 191.92 299.23 241.42Import cover in months 12.50 14.40 9.80

INFRASTRUCTURE 2006-07 2007-08 2008-09

Electricity production in bn kWh 663.00 704.00 724.00Crude throughout in million tonnes 146.60 116.10 ------Finished steel in million tonnes 50.20 53.30 53.50Coal in million tonnes 462.10 491.10 N.A.Cement in million tonnes 154.70 167.60 181.40


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Railways traffic carried in million tonnes Km. 480.99 521.30 538.20Cargo handled at AAI airports in 000 tonnes 656.74 723.46 515.37Passengers handled at AAI airports in lakhs 511.14 637.05 449.35Cargo handled at major ports in million tonnes 463.80 519.30 530.40

RATE OF GROWTH IN VARIOUS SECTORSAT FACTOR COST AT 1999-2000 PRICES (PER CENT)

SECTORS 2004 2005 2006 2007 2008 2009

Agriculture, forestry and fishing 10.0 0.0 5.8 4.0 4.9 1.6

Mining & quarrying 3.1 8.2 4.9 8.8 3.3 3.6

Manufacturing 6.6 8.7 9.1 11.8 8.2 2.4

Electricity, gas and water supply 4.8 7.9 5.1 5.3 5.3 3.4

Construction 12.0 16.1 16.2 11.8 10.1 7.2

Trade, hotels and restaurants 10.1 7.7 10.3 10.4 10.1 *

Transport, storage and communication 15.3 15.6 14.9 16.3 15.5 *

Financing, insurance, real estate andbusiness services

5.6 8.7 11.4 13.8 11.7 7.8

Community, social and personal services 5.4 6.8 7.1 5.7 6.8 13.1

Total GDP at factor cost 8.4 7.5 9.5 9.7 9.0 6.7

Source: Central Statistical Organisation (as given in the Economic Survey Report 2008-09)

* Trade, hotels and restaurants, transport and communication (together) grew at 9% in 2008-09.

INDUSTRIAL SECTORS AND CORE INDUSTRIES


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EMPLOYMENT SCENE

-1

0

1

2

3

4

5

6

APR-SEP 08-09 OCT-MAR 08-09 APR-MAR 08-09

INDUSTRIAL GROWTH

5.02

-0.04%

2.56%


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III ANALYSIS OF DATA COLLECTED THROUGHQUESTIONNAIRES:

A Questionnaire was designed to collect sample datafrom some Companies / Organisations, to understand as to

1.53

0.44

1.2

-0.54

0.92

0.12

-1

-0.5

0

0.5

1

1.5

2

PUBLIC SECTOR PRIVATE SECTOR TOTAL ORGANISED

1983-1994

1994-2006

Rate of growth of Employment inor anised sectors

(% per annum)


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whether Recession has affected them. If yes, then how are theycombating the challenges posed by Recession? Copy of theQuestionnaire is placed asAnnexure I.

While the Questionnaire was sent to 08 Companies,

responses have been received from 6 companies. TheCompanies which have responded are as under:

Core Competency Training & Services Pvt. Ltd., NewDelhi.

Honda Motorcycles & Scooters, India, Pvt. Ltd., ManesarGurgaon.

Evalueserve Pvt. Ltd., Gurgaon HDFC Bank Ltd., Chandigarh G-Cube Webwide Software Pvt., Ltd., Noida Seam Products Co. Ltd., New York.

Responses received from the above companies areplaced together, asAnnexure II. Brief highlights of the analysisof data are given below:

1. TYPE OF ORGANISATIONS

Manufacturing Services Others Total

2 3 1 6

2. MANPOWER INFORMATION


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Did notdisclose

information(stating to be

confidential)

Only partialinformation given

Full informationgiven

1

HDFC

2

HONDA CORE

COMPETENCY

3

G.CUBE SEAM PRODUCTS EVALUESERVE

ANALYSIS OF MANPOWER INFORMATION:

In Seam Products, New York, man power reduction has beenmade from 425 (in 2007) to 360 (in 2009) i.e. a reduction of15.29%.

In Evalueserve also number of employees have been reducedfrom 2750 (in 2006) to 2000 (in 2009), i.e. a reduction of27.27%.

In G.Cube Webwide from the year 2005 to 2009 there hasbeen a progressive increase in manpower from 26 to 96respectively i.e an increase of 72.91%.

3. FINANCIAL TURNOVER


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ANALYSIS OF FINANCIAL TURNOVER

In Evalueserve Gurgaon (India), while the manpower hasreduced from 2006 to 2009 by 750 employees (i.e. by27.27%), its financial performance has increased from $45million in 2006 to $75 million in 2009 (i.e. an increase of 40%).

In seam Products, New York USA, though the number ofemployees were reduced from 425 in 2007 to 375 in 2008 (i.e.a reduction of 11.76%) still the financial turnover went downfrom $26 million in 2007 to $18 million in 2008 (i.e. a reductionby 30.76% in the financial turnover).

It is important to note that this company operates in USA (NewYork) and it reflects the general crisis of Recession there. Onaccount of slowing down of Business, the Company had toshed its Manpower; still it could not increase the Financial

Turnover.4. HAS RECESSION AFFECTED THE COMPANIES

AFFECTED BYRECESSION

NOT AFFECTED BYRECESSION

2 Seam Products

4 HDFC

Did not disclose(stating to be confidential)

Full informationgiven

4

HDFC Honda G-Cube Core Competency

2

Seam Products Evalueserve


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Evalueserve Honda G-Cube Core Competency

From the above Table, it is seen that only two companies have

been affected by Recession and the rest four companies havenot been directly affected.

5. STRATEGIES ADOPTED TO COMBAT RECESSION

SN STRATEGEYTWO

COMPANIESAFFECTED BYRECESSION

FOURCOMPANIES

NOTAFFECTED BYRECESSION

1 Business reduced 2 02 Customers reduced 2 03 Repeat business reduced 2 04 Selling Price reduced 2 15 Cut in Overhead expenditure 2 06 Payments received late 2 17 Freeze on recruitments 2 08 Retrenchments 2 09 Outsourcing 0 1

10 Multi-skilling / Multitasking 2 211 Austerity drive 2 312 Salary cut 1 013 Cut in Daily Allowance 1 014 Cut in Transportation entitlements 2 215 Cut in Air Travel entitlements 1 316 Cut in Hotel entitlements 1 117 Cut in company paid Holidays 1 018 Cut in Foreign Travels 1 2

6. OTHER STEPS TAKEN BY COMPANIES TO COUNTERRECESSION

A. COMPANIES AFFECTED BY RECESSION:

1. Evalueserve Pvt. Ltd.


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Laid down Higher sales targets. Initiated Aggressive sales campaigns. Cross-selling and up-selling.

2. Seam Products Co. Ltd.

Low mark up selling strategies implemented. Cut Expensive advertising.

B. COMPANIES NOT AFFECTED BY RECESSION:

1. Core Competency Training & Services Pvt. Ltd.

Retained the existing clients with increased efforts, at

lesser revenue from the clients. Basicallyunderstanding the situation and clients limitations inthe recessionary period. Worked on credit. Did work atlesser cost to retain clients.

Marketing to attract more work and or bringing inclients was halted; with total focus on consolidationand retention.

Capital investments in the open market luckily werewithdrawn without suffering much loses.

Projects in negotiation with the clients were put on hold

for better times, instead of totally cancelling them. Even in good times the treatment and strategies if

remain focused on bad times would enable anyorganisation not to oversell or over hire. This is whatwe follow as a standard policy. That is, steadyconsistent growth and focus on client retention andmaintaining reputation and reliability.

2. Honda Motorcycles & Scooters, India, Pvt. Ltd.

More Focus given to reduce wastes in differentactivities like Production etc.

More focus given to maintain Quality of product.


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Improvement Activities were further increased toreduce cost and improve productivity.

3. HDFC Bank Ltd.

Redeployment of staff from verticals (which wereaffected) to verticals which were generating revenue(where more manpower was needed). Communicationwas the key in making this possible and create buy inamongst employees.

More focus on productivity and adherence to themanpower budgets.

Priority to Absorption of all pool staff and internalrelocation to hiring.

4. G-Cube Webwide Software Pvt., Ltd.

Increased focus on India and Middle East markets fornew customers compared to US and UK.

We ensured cost effective services to our customers

and helped them cut cost during recession. Compensation increase was very nominal and

competitive.

IV. IN CONCLUSIONMajor conclusions which can be drawn from this Project

Report are as under:


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1. Out of 6 Companies studied, 2 have stated thatRecession has had a Substantial impact on them.

2. These 2 Companies have resorted to reduction inManpower. One of these Companies showed a Profit

after shedding Manpower; while the US basedCompany incurred losses even after Manpowerreduction.

3. These Companies have also resorted to austeritymeasures to control expenditure.

4. Even though 4 Companies have stated that they arenot directly hit by Recession, still they have takenseveral steps to enforce economic discipline andausterity. They have also modified their Businessstrategies to counter Recessionary effects. Some ofthe strategies adopted by them are:

Shifting focus of Business from USA andEurope, to India and Asia.

Tailored Services to device cost cuttingsoftware / consultancy to customers (duringRecession).

Reduction in Selling Price. Stopped expansion of Business, concentrated

on consolidation of existing Business. Did work on Credit for reliable customers. Redeployment of staff from less productive to

more productive areas. Low mark up selling strategies implemented. Cross selling and up selling. Aggressive sales campaigns.

5. It is, therefore, seen that nearly all Companies havehad to respond to Recessionary pressures. Costcutting and austerity measures have been taken up in


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right earnest, besides other measures enumeratedabove.

6. Before I conclude, I must confess that the efforts put inby me in this Project have not only given me immense

satisfaction, but I also find myself considerablyenriched in my understanding of this important subject.

V. BIBLIOGRAPHY


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SN REFERENCE

1 Prasanna Chandra, Financial Management Theory andPractice, Tata Mcgraw-Hill Publishing Co. Ltd.

2 E.H. McGrath, S.J., Basic Managerial Skills for all, Prentice-Hall of India, Pvt. Ltd.

3 Pratiyogita Darpan, June 2009

4 Pratiyogita Darpan, August 2009

5 http://www.buzzle.com/articles/economic-recession-and-depression-definition-and-difference.html

6 http://www.make-money-stock-value-investing.com/economic-recession.html

7 http://recession.org/definition

8 http://en.wikipedia.org/wiki/Recession#Identifying

9 http://recession.org/definition

10 http://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.html
http://www.buzzle.com/articles/economic-recession-and-depression-definition-and-difference.htmlhttp://www.buzzle.com/articles/economic-recession-and-depression-definition-and-difference.htmlhttp://www.make-money-stock-value-investing.com/economic-recession.htmlhttp://www.make-money-stock-value-investing.com/economic-recession.htmlhttp://recession.org/definitionhttp://en.wikipedia.org/wiki/Recession#Identifyinghttp://recession.org/definitionhttp://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.htmlhttp://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.htmlhttp://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.htmlhttp://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.htmlhttp://recession.org/definitionhttp://en.wikipedia.org/wiki/Recession#Identifyinghttp://recession.org/definitionhttp://www.make-money-stock-value-investing.com/economic-recession.htmlhttp://www.make-money-stock-value-investing.com/economic-recession.htmlhttp://www.buzzle.com/articles/economic-recession-and-depression-definition-and-difference.htmlhttp://www.buzzle.com/articles/economic-recession-and-depression-definition-and-difference.html


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ANNEXURE - I

ANNEXUREI

Dear Sir,


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Sub: Filling in of a Questionnaire.

I am a student of the first semester of the BBM (Bachelor of BusinessManagement) course of Dayalbagh Educational Institute, (a Deemed University),Dayalbagh, Agra.

As part of the requirement of our curriculum, all students are required to prepareand present a brief Project Report on a topic allocated to us, out of a wide range ofacademically stimulating topics; which not only provide considerable learning value, butalso expose us to the realities of business and corporate working.

The topic allocated to me is:

OPERATIONAL STRATEGIES TO COUNTER ECONOMIC

RECESSION.

I have designed a small Questionnaire for the purpose of collecting someinformation, which I am enclosing herewith. I have tried to keep the questionnaire briefand simple, to facilitate its filling up.

I would be extremely grateful if you could take some time out and fill up theQuestionnaire. In case you do not have all the information available, you may send mewhatever information is readily available.

I would be grateful if you could fill in the questionnaire and email it to me byevening of 1

stOctober, 2009, certain, on the following email address:

[email protected]

Your cooperation and help will go a long way in my learning and academicpursuit. Thanking you in advance,

Yours Sincerely,

-sd-

(Samrath Kashyap)Mobile No: 91-9634022494

21, Adan Bagh,

Dayalbagh, Agra

QUESTIONNAIRE

A.ORGANISATIONAL INFORMATION
mailto:[email protected]:[email protected]:[email protected]


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1. Name & Location of the Organisation/Company

__________________________________________________________________

2. Nature of business (Manufacturing/Production/Services/others). If Others, pl.

specify.

__________________________________________________________________

B.MAN POWER INFORMATION

3. Total number of employees as on the following dates:

CATEGORY 1.1.2009 1.1.2008 1.1.2007 1.1.2006 1.1.2005

TECHNICAL

OFFICERS

NON-

TECHNICAL

OFFICERS

TECHNICAL

EMPLOYEES

NON-

TECHNICAL

EMPLOYEES

C.FINANCIAL TURN-OVER INFORMATION:

4. Total Turn-over during the following years:

2009 2008 2007 2006 2005

TURN-

OVER

D.EFFECT OF RECESSION:

5. Whether recession has affected your company: YES / NO.


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6. If yes, then how has it affected:

a. Has the Business: Reduced / Increased / No

change

b. Number of customers have: Reduced / Increased / No

changec. Repeat business has: Reduced / Increased / No

change

d. Your selling price/rates have had to be: Reduced / Increased / No

change

e. Overhead expenditure has: Reduced / Increased / No

change

f. Payments from customers are received: On time / Late

E.STRATEGIES TO DEAL WITH RECESSION

7. From the following, please tick the steps which your Organisation / Company hastaken to deal with Recession:

a. Freeze on Recruitments YES / NO.

b. Retrenchments YES / NO.

c. Outsourcing YES / NO.

d. Multi-skilling / Multi-tasking YES / NO.

e. Austerity drive to reduce overhead Expenditure YES / NO.f. Has the cost price of your Product/Services been reduced: YES / NO.

g. Salary cuts YES / NO.

h. Cut in privileges/perks like

i. Daily Allowance / per diem rates YES / NO.

ii. Taxi / transportation entitlements YES / NO.

iii. Air travel YES / NO.

iv. Hotel entitlements YES / NO.

v. Company Paid holidays YES / NO.

vi. Foreign travel YES / NO.


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F. Any other steps taken to counter Economic Recession. (Kindly enumerate in

points)

a. ______________________________________________________________

b. ______________________________________________________________

c. ______________________________________________________________

d. ______________________________________________________________

e. ______________________________________________________________


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ANNEXURE II

QUESTIONNAIRE




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EVALUESERVE PVT. LTD., GURGAON


specify.

KPO (ITES industry)



CATEGORY 1.1.2009 1.1.2008 1.1.2007 1.1.2006 1.1.2005

TECHNICAL

OFFICERS300 350 320 290 270

NON-

TECHNICAL

OFFICERS 50 60 55 50 40

TECHNICAL

EMPLOYEES

1200 1300 1250 1980 1975

NON-

TECHNICAL

EMPLOYEES 450 500 475 430 410



YEAR 2009 2008 2007 2006 2005

TURN-

OVER

$75m $65m $55m $45m $40m





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a. Has the Business: Reduced / Increased / No change

b. Number of customers have: Reduced / Increased / No change

c. Repeat business has: Reduced / Increased / No change

d. Your selling price/rates have had to be: Reduced / Increased / No change

e. Overhead expenditure has: Reduced / Increased / No changef. Payments from customers are received: On time / Late







e. Austerity drive to reduce overhead Expenditure YES / NO.

f. Has the cost price of your Product/Services been reduced: YES / NO.



i. Daily Allowance / per diem rates YES / NO.ii. Taxi / transportation entitlements YES / NO.






points)

a. Higher sales targets


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b. Aggressive sales campaignc. Cross-selling and up-selling

QUESTIONNAIRE



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Seam Products Co. Ltd.


specify.

Manufacturing



CATEGORY 1.1.2009 1.1.2008 1.1.2007 1.1.2006 1.1.2005

TECHNICALOFFICERS

60 75 75 75 75

NON-

TECHNICAL

OFFICERS

25 25 25 25 25

TECHNICAL

EMPLOYEES

250 250 300 300 300

NON-

TECHNICAL

EMPLOYEES

25 25 25 18 16



2009 2008 2007 2006 2005

TURN-

OVER

$18 Million $ 26 Million $27 Million $25 Million





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a. Has the Business: Reduced / Increased / No changeb. Number of customers have: Reduced / Increased / No changec. Repeat business has: Reduced / Increased / No changed. Your selling price/rates have had to be: Reduced / Increased / No changee. Overhead expenditure has: Reduced / Increased / No changef. Payments from customers are received: on time / Late


















points)

a. Low mark up selling strategies implemented


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b. Cut Expensive advertising

QUESTIONNAIRE




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Honda Motorcycle & Scooter India Pvt. Ltd.

Manesar, Gurgaon, Haryana


specify.

Manufacturing Two Wheelers



CATEGORY 1.1.2009 1.1.2008 1.1.2007 1.1.2006 1.1.2005

TECHNICAL

OFFICERS

Approx.

300

NON-

TECHNICAL

OFFICERS

Approx.200

TECHNICAL

EMPLOYEES

Approx.4700

NON-

TECHNICAL

EMPLOYEES

Approx.300



2009 2008 2007 2006 2005

TURN-

OVER





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e. Overhead expenditure has: Reduced / Increased / No change












i. Daily Allowance / per diem rates YES / NO.ii. Taxi / transportation entitlements YES / NO.






points)


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37

a. More Focus given to reduce wastes in different activities like Production etc

b. More focus given to maintain Quality of product.

c. Improvement Activities have further increased to reduce cost & Improve

productivity.

QUESTIONNAIRE


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38



HDFC Bank Ltd - Chandigarh


specify.

Financial Services



Not to be disclosed



Refer to Balance Sheet on www.hdfcbank.com


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39

D. EFFECT OF RECESSION:

5. Whether recession has affected your company: NO.


a. Has the Business: Increased

b. Number of customers have: Increased

c. Repeat business has: Increased

d. Your selling price/rates have had to be: No change

e. Overhead expenditure has: Reduced

f. Payments from customers are received: On time








f. Has the cost price of your Product/Services been reduced: YES / NO.g. Salary cuts YES / NO.









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40


points)

a. Redeployment of staff from verticals (which were affected) to verticals

which were generating revenue (where more manpower was needed).

Communication was the key in making this possible and create buy in

amongst employees

b. More focus on productivity and adherence to the manpower budgets

c. Priority to Absorption of all pool staff and internal relocation to hiring.


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41

QUESTIONNAIRE



Core Competency Training & services Pvt. Ltd

located at New Delhi


specify.

E-learning development, Software development, Pre press publishing & Videoproduction



CATEGORY 1.1.2009 1.1.2008 1.1.2007 1.1.2006 1.1.2005

TECHNICAL

OFFICERS

NON-

TECHNICALOFFICERS

TECHNICAL

EMPLOYEES

20 16 8 6 6

NON-

TECHNICAL

EMPLOYEES

5 4 2 1 1



2009 2008 2007 2006 2005

Turn over

( Confidential Information cannot be disclosed)There has however been a consistent increase in revenue since 2005with a very minor dip in 2008-2209, almost un consequential.


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5. Whether recession has affected your company: PARTIALLY


a. Has the Business: No change

b. Number of customers have: No change

c. Repeat business has: No change

d. Your selling price/rates have had to be: Marginally Reduced

e. Overhead expenditure has: No change

f. Payments from customers are received: Late



a. Freeze on Recruitments NO.

b. Retrenchments NO.

c. Outsourcing NO.

d. Multi-skilling / Multi-tasking YES

e. Austerity drive to reduce overhead Expenditure NO.

f. Has the cost price of your Product/Services been reduced: SLIGHTLY

g. Salary cuts NO.


i. Daily Allowance / per diem rates NO.

ii. Taxi / transportation entitlements NO.

iii. Air travel REDUCED

iv. Hotel entitlements NO

v. Company Paid holidays NO.

vi. Foreign travel REDUCED


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points)

In anticipation of the recession efforts were made to:

1. Retain the existing clients with increased efforts at lesser revenue from the

clients. Basically understanding the situation and clients limitations in the

recessionary period and given them credits and or done work at lesser cost to

retain the clients.

2. Marketing to attract more work and or bringing in clients was halted with total

focus on consolidation and retention.

3. Capital investments in the open market luckily were withdrawn without

suffering much loses.

4. Projects in negotiation with the clients were put on hold for better times

instead of totally cancelling them.

5. Even in good times the treatment and strategies if remain focused on bad

times would enable any organisation not to oversell or over hire. This is what

we follow as a standard policy. IE Steady consistent growth and focus on

client retention and maintaining reputation and reliability.


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QUESTIONNAIRE



G-Cube Webwide Software Pvt. Ltd., Noida, UP


specify.

Services



CATEGORY 1.1.2009 1.1.2008 1.1.2007 1.1.2006 1.1.2005

TECHNICAL

OFFICERS

9 8 4 4 3

NON-

TECHNICAL

OFFICERS

8 7 4 3 3

TECHNICALEMPLOYEES 72 62 45 25 18

NON-

TECHNICAL

EMPLOYEES

7 6 4 3 2

TOTAL 96 83 57 35 26



2009 2008 2007 2006 2005

TURN-

OVER

Confidentialinformation


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6. If yes, then how has it affected: N/A





e. Overhead expenditure has: Reduced / Increased / No change







d. Multi-skilling / Multi-tasking YES / NO.e. Austerity drive to reduce overhead Expenditure YES / NO.








v. Company Paid holidays YES / NO.vi. Foreign travel YES / NO.


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points)

a. Increased focus on India and Middle East market for new customers

compared to US and UK

b. We ensured cost effective services to our customers and helped them cut

cost during recession

c. Compensation increase was very nominal and competitive

operational strategies to counter recession

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