Training Activity Coursework Example | Topics and Well Written Essays - 1000 words

Training Activity - Coursework Example The general staff needs to be trained to follow the policies and procedures of the new company, Massive Computers. Each organization has a different culture and the new company’s culture and way of doing things must be communicated across to the employees so that they may adjust to the new environment and feel a part of the group. Of course, the new management needs to filter out candidates who they feel are not going to be part of the new regime. These employees can be made redundant based on age, qualifications, work experience with the company and a number of other criteria including, but not limited to, ability to adapt to surroundings. The remaining ones should then be notified of their job security so that they will be motivated and be willing to co-operate and be a part of the new training program. Whatever the management has planned for the long-term future of the company should be communicated to the employees so as to avoid ambiguity, apprehensiveness and make them f eel a part of the group. Short-term operational planning decisions should also be communicated here. Employees can be trained by their supervisors and should be fully trained and motivated for work, preferably in under a month. Program 2 – Middle Management The middle management should be given training regarding the tactical side of things and be communicated the medium term objectives so that they may be able to handle their subordinates.... They should also be trained to keep employees motivated and aligned with the organizational goals so as to ensure that nobody falls off-track. Middle-level managers can be provided training in areas which were previously not under their control but would now be under the new management. The training division, in collaboration with the local HR department should provide this training to the middle-management and the entire process should be concluded in a matter of two weeks. Program 3 – Senior Management The senior management should be provided training pertaining to the strategic aspects of conducting business. The surviving members of the old management should be brought up to date with the methods being used by their American colleagues. Empowerment techniques should also be taught so as to help these members of the senior management feel comfortable when delegating authority and learning to trust their subordinates. Since most of the senior management comprises of American s, they should be trained to learn aspects of the Australian culture that are relevant to conducting business here so as to better understand their employees and the working environment. This program should be conducted in an informal, off-the-job setting such as at a hotel suite, where the new and old members can get to know each other in a relaxed atmosphere and exchange ideas. The local executives can teach their American counterparts about the Australian culture whereas the Americans can teach the locals about how they want things to work and what direction they expect the company to be heading in. The duration of the meeting should be kept short and must be concluded in under one week at best. Training Evaluation Evaluation is a

Humans versus Nature-- which selects better for human survival, from a Essay - 2

Humans versus Nature-- which selects better for human survival, from a biological point of view - Essay Example ground concepts of natural selection, gene inheritance and anomalies, and adaptation will be important in trying to understand some of the decisions human beings have made. The paper will also assess how the contemporary society has responded to health and adaptation challenges in the bio environment from the perspective of nature and genetics. Human adaptation to natural environment is under constant challenge, prompting a continuous process of biological evolution. Human being’s capability for adaptation shaped his life on a number of ways. Man evolved to an upright posture, enlarged of brain, ability to make and use tools, emergence of sophisticated mental and social behavior. Human beings later developed technology to change his environment and improve their health. Therefore, nature seems to be having great influence on human survival decisions (BBC 1). Natural selection as one of the biological factors for human survival was based on the fact that the environment selected the most adaptable organisms to pass on their genetic materials. Natural selection means that organisms that were best adapted survived the harsh conditions of the environment whereas those that were poorly adapted died. Organisms that survived were able to interbreed and therefore, pass on their good genetic traits to their young ones. As organisms that had survived interbred, the crossing over genetic materials ensured genetic variation and genetic inheritance. Resulting organisms were those ones that constantly evolved and adapted to the environment. This does not mean that environmentally acquired traits were inherited, but that the environment naturally selected organism that were best adapted. It is said that human evolution took the same process of natural selection where those with good traits survived the harsh environment while those that were poorly adapted died and did not pass their traits to offspring. Inheritance, adaptation and natural selection still matter in the

Habits Speech Essay Example for Free

Habits Speech Essay It is commonly accepted that a person’s bad habits are bad. Right? Wrong. Today I’ll be giving some examples of habits of mine that are actually in a way, beneficial to me. ANGER – Ever since I remember, I’ve had the habit of getting angry very easily, but it turns out that letting off a head of steam may bring physical benefits. Researchers have found that people who respond to high-stress situations with some righteous anger maintain lower blood pressure and secrete less cortisol, known as the stress hormone, than people who respond with fear or bottle up their feelings. VIDEO GAMES Despite being blamed for their part in the obesity epidemic, video games can actually help us get fit and lose weight. It turns out it actually boosts your metabolism! Whilst playing video games, a person’s heart rates speeds up; they used more energy and begin breathing faster. This could have a positive effect on health, provided theyre not substituted for real sport. SWEARING Did you know that swearing is actually good for you? Yes, scientists have proven that swearing eases pain and allows you to withstand pain for longer. Swearing is connected to our adrenaline and when people swear, they have an elevated heart rate, so it could be that swearing increases their aggression levels. Increased aggression has been shown to reduce peoples sensitivity to pain. LAZING ABOUT – This kind of behavior is believed to add years to your life. People who get up early and busy themselves all day long are heading for an early grave. Lazing about is the key to a long life and an antidote to personal stress. People who would rather take a midday nap instead of playing squash have a better chance of living into old age. If you don’t believe me. An example of this is the increased lifespan of zoo animals for instance lions in the Serengeti live only eight yea rs, but can live to an age of 20 in captivity. STRESS – Stress, while long periods of stress can leave your immune system depleted and prone to infection, researchers have found that a short stressful incident can boost your learning and memory. Acute stress increases transmission of glutamate, the substance that passes messages to and from the brain. This improves working memory. Stress hormones have both protective and damaging effects on the body. This is why we need stress to perform better, but dont want to be stressed out. LOUD MUSIC – Most people believe that listening to music very loud is damaging to your ears. This may be true; however it also stimulates part of the inner ear known as the sacculus, which responds to the beat of music. The sacculus, has no hearing function in humans, but is sensitive only to very loud volumes. It has a connection to the part of the brain responsible for drives such as hunger and sex. When these desires are satisfied, the brain is stimulated into releasing feel-good hormones that make us calm, happy and responsive. FIDGETING It may be irritating, but natural fidgets are doing themselves a favour by fighting obesity. Researchers have found that people who always seem to be on the go are more likely to be slim. The extra motion, whether it is tapping, twitching, stretching or yawning, accounts for an extra 350 calories a day. The amount of this low-grade activity is so large it could be the only thing keeping some from becoming obese. So the next time someone tells you to stop whatever habit it is you’re doing, because they don’t approve. Think twice, and ask yourself. Is it benefitting you!

Various stages in outsourcing

Various stages in outsourcing Various Stages in Outsourcing The companies have many processes that have to be integrated while manufacturing, selling, buying, customer sourcing etc.   It has to decide on what level it has to outsource so as to be a profitable organization. It has to identify analyze and maximize outsourcing opportunities. The stages for outsourcing can be different for different customers but the The outsourcing process can be put into three phases: (these stages have been put out after going through how many companies decide to outsource Analysis Stage perations stage Implementation stage model by author Analysis Stage(ch.2 pg 33. Decision to outsource book: black book of outsourcing) There are various decisions that the company has to make while thinking of outsourcing. One of the biggest questions that arises in the mind of the company is to make or buy the required service or product for the company. The company mostly uses cost benefit analysis with the help of the make or buy model to come to a conclusion whether to buy or make. The analysis stage acts as foundation stone where the company decides if it wants to outsource its function or not. The model helps us understand whether the company wants to make or buy. Its possible that they get into joint venture, subsidiaries or allied services could be obtained.   It depends on the cost analysis that the company decides mostly on what they want for their business. Comparative analysis of the make or buy decision is regarded the highest degree of analysis for taking such a step. The company has then to scan all the places where they could get service providers for their company for outsourcing. For example: If a company like S.Oliver in Germany wants to see where it can get the cheapest labour and manufacturers for their apparel the have many South Asian countries that they can depend on as their main concern for cost is labour and that is the cheapest in the countries down Asia. There are various political hassles that happen when the company wants to enter and obtain services from another country. The company would always like to enter a country that is politically stable and does not create any problems for them to setup and establish their roots. The make decision will involve the company to look at the economy of the countries that they want to outsource. The economy should be stable and should not be better than the companys own country or there is no point in outsourcing. The company would like to look at the cost and also if there are future potential to sell in the same country the products that they are making. The main infulncers in this category will be the GDP and the per capita income of the people. Operations Stage At the operations stage the company will identify and shortlist the service providers and negotiate the terms and conditions with them. The company will undergo this process with various service providers so that they can get the best deal out of the minimum problems. The company will then select some service providers that the company feels would be the most profitable. The company will negotiate the terms and conditions and keep the format clear on what they are looking for and what is the way the payments would be made the staff the operational strategies, raw materials, etc The most important thing that arises while coming to outsourcing is the communication or logistics channel that the company wishes to use for outsourcing. For e.g. S. Oliver has to ship back its apparel from India to Germany to get the apparel checked and branded if they are made as per the requirements. So for such process the cost of logistics and operations are also looked for if the it works out cheaper for the company to outsource its services to other countries. Implementation Stage This stage is the most important and the most difficult stage. The company have to send across managers and consultants to actually implement the business process and design how they actually want the production to go on. The company lays down the framework in place and puts the integration process right. Construction of the business is setup the communication lines are setup, the total integration of all the businesses together. This stage will determine the future flow of the business. The company can also run a simulated run so that they will come to what all flaws are there and they can improve it later. Advantages, Benefits and Opportunities There are various advantages of outsourcing; some of them are listed below: Outsourcing can save money Economies of scale can save money for the service providers can produce in large volumes because they get orders from multiple companies and the volumes are high. The pharmaceuticals industry can be used to illustrate economies of scale in relationships. Clinical trials of experimental drugs require just the right patients healthy in most all respects but the one indication being treated, and willing to submit themselves to experimentation. It takes a significant investment of time and money to develop relationships with the hospitals and clinicians (and the triage nurses in their emergency rooms) that supply patients for the trials. Clinical trials also require just the right medical investigators doctors and medical researchers who are well respected in their industries. Again, it takes size to attract the best investigators. The most sought-after investigators look for organizations that can supply them with interesting and publishable research projects and with support services (such as data collection and well-managed processes) that make their jobs easier and their results more reliable. And so a lucrative outsourcing industry has evolved to manage clinical trials of experimental drugs for pharmaceutical companies. [The author thanks Patricia Seymour, Covance Biotechnology Services, Research Triangle Park, North Carolina, for this case study.] Outsourcing allows concentration on core business The company has to also to concentrate on its back office activities by outsourcing such activities to other companies the company can avail benefits of concentrating on core business activities. For e.g. A company in has to look after large purchasing orders in a short span of time for its increase in volumes of production, it can outsource its purchasing process to some service provider and thus concentrate on its core business activities. Technology advantage at lower rates The company can avail http://www.enotes.com/management-encyclopedia/make-buy-decisions http://www.sourcingmag.com/content/c051011a.asp

The Lion and the Mouse who Returned a Kindness :: Aesop, Aesops Fables

  Ã‚  Ã‚  Ã‚  Ã‚  Aesop among many other prominant authors wrote tales of animals taking on human characteristics, but none is so prevelant as the reputation of the mighty lion. Known as the king of animals, the lion appears as an object of strength and nobility in countless aspects of life including history, literature, art, astronomy, movies, and dance.   Ã‚  Ã‚  Ã‚  Ã‚  Who is this amazing creature? According to the Encyclopedia Britannica, the lion (Panthera Leo) is a flesh-eating animal that live cheifly in sandy plains and rocky places where there are thorn thickets and tall grass. Male lions can reach a length of 2.50m (8ft), and a weight of 250kg (550lb). They can live for 15 years, but in captivity some have reached an age of up to 30 years. They mainly eat larger herbivores such as buffalo, zebra, and in cultivated areas an occasionally human. There strength is amazing, and both parents take great care in tending to their young, often referred to as cubs (168-69).   Ã‚  Ã‚  Ã‚  Ã‚  Much is to be said about the mannerisms and personalities of lions, and no one has summed this up as well as Aesop. There are four fables listed in our textbook dealing with the qualities humans believe to be true about lions. These assumptions may have begun with Aesop’s fables, but really knows.   Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  In the first fable, The Lioness and the Vixen, the saucy personality of the lioness is shown. When denounced for the birth of only one cub, the lioness quickly snaps back aat the vixen, â€Å"Only one, she said, but a lion†(Aesop 607). This answers the question of quality over quanity; and for most the lion is considered the best in quality the â€Å"cream of the crop† as some would say. Aesop iterprets here that the lion knows he is the best, and doesn’t mind sharing it with the rest of the animal kingdom.   Ã‚  Ã‚  Ã‚  Ã‚  Aesop again illustrates the lion as being king in The Lion, The Wolf, , and The Fox. Aesop clearly writes â€Å"all the animals came to pay respect to their king,† (Aesop 607). Even in the title of the fable Aesop lists the lion first before the wolf and fox. This could just be by mishap, or as seen in other fables the animals could be listed in order of appearance in the text. Regardless of the title Aesop gives the lion dominating powers of the other animals. He writes â€Å"the lion demanded to know at once what cure he had found,†(Aesop 608).

The problem of anti Americanism

Terrorism has always been a major issue in the world. Every country is trying to put some measures to stop the act of terrorism. There are some remedies that have been put in place to stop terrorism. The problem of anti Americanism is believed to be the cause of terrorism attacks. Introduction The problem of anti-Americanism is a very serious matter and it occurs because people try to be resistant or try to blame America for all its actions. People world over believe that every action Americans take is for the purpose of taking control of other countries for selfish gain and interests.The resistance takes place when non-Americans want to conserve their beliefs and national interests, and do not want to be influenced by the Americans. People put their blame on the Americans because they are jealous and do not want Americans to continue being prosperous (Hoffman, 1998). People should be accountable for inciting violence when they glorify violent acts against America but themselves do n ot engage in it in order to put a stop to terrorism.Such people invest a lot of money to destroy other people’s lives and in fact they should be more punished than the people who physically carry out the acts of terrorism. They are the people who do not want to stop terrorism. (Hoffman, 1998) There are various remedies that are available to the government to deal with schools, mosques, and charities that indirectly support terrorism while not actually engaging in it. There are some laws that have been enacted to counteract terrorism.The laws are divided into several categories like financial act laws, terrorism act laws, airport and transport act laws and the USA patriot act laws. The remedies should be death for those found guilty of terrorism including increased budgetary allocation to the Security budget that will help not only counter any acts of terror but gather intelligence that will help forestall any threat way before it happens (Hoffman 1998). Reference: Hoffman, Br uce (1998)†Inside Terrorism† Columbia University Press

Indian Automobile Industry Analysis Essay

Today the automobile sector in India contributes 5% to the nation’s GDP, making it a prominent player in the economy. It will contribute around 19% of the Tax collection for financial year 2009-10. Following have been the features of Auto industry in the past financial year. The following tables and charts consist of the performance of Auto industry in past few years. Industry Aggregate (Rs in million)| | AMJ 10 (E)| Net Sales| 363904. 38| Change (%)| 39%| EBITDA| 64665. 22| Change (%)| 94%| Depreciation| 7303. 60| Interest| 3348. 58| Other Income| 7118. 93| PBT| 61131. 97|. Tax| 16645. 21| Effective tax rate| 27%| Reported PAT| 44486. 77| Change % (Reported PAT)| 92%| Market Cap (Rs in bn)| 1647. 17| Source: BSE India; Cygnus Research| Note: The aggregate consists of the following companies- Bajaj Auto, Ashok Leyland, Tata Motors, TVS Motors, Force Motors, Hero Honda, Escorts Ltd. , Eicher Motors, Maruti Udyog Limited, Punjab Tractors Limited, Mahindra & Mahindra, and Hindustan motors Source: QPAC Indian Automobile industry Apr-Jun 2010 INDIAN AUTOMOBILE INDUSTRY AND TRENDS Overview The auto industry in India is the ninth largest in the world. After Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. The Indian automobile industry is going through a phase of rapid change and high growth. With new projects coming up on a regular basis, the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production. Yearly-Analysis Year on year as the Indian population grows the requirement for the transportation will also grow, so it is clear that the industry demand is directly proportional to the population. Presently in India there are 100 people per vehicle while the figure in china is 82. Indian automotive industry is strong and productive sector for the economy growth. It gives nearly 5% of the employment to the country’s population. Continue improving quality results in exports of automobile and ancillary industry is boosting out the demand in oversees business. The Indian auto-players are expanding their presence in oversees market. In the last 5 years the foreign investment in this sector nearly doubled. Production Trend: The Indian automotive industry face a tough time during FY08 and its production were almost stagnated. From the early FY09, the industry started showing marginal growth in terms of production and reached to 14. 04m units till FY10. Due to the huge insist in the domestic market company’s sale nearly 88% of their total production in the country and rest 12% vehicles they export. Domestic and Exports sales trend: In terms of domestic sales the industry is showing positive approach from the last 3-years. During FY10 the industry domestic sales reached to 12. 29m units. The Indian exports are increasing gradually form the past 5-years and reached to 1. 80m units in FY10. Earlier the industry depended on the foreign auto parts, but due to the increase of the global players in the country and establishing the plants ended painless move to the Indian auto-players. INDUSTRY PERFORMANCE (YEARLY) Indian Automobile Industry Performance (Apr-Mar)| | Production| Domestic Sales| Exports| | 2009| 2010| %| 2009| 2010| %| 2009| 2010| %| Passenger vehicles (PVs)|. Passenger Cars| 1516967| 1926484| 27| 1220475| 1526787| 25| 331535| 441710| 33| UVs| 219498| 272848| 24| 225621| 272733| 21| 3034| 2823| -7| MPVs| 102128| 151908| 49| 106607| 150256| 41| 1160| 1613| 39| Total PV| 1838593| 2351240| 28| 1552703| 1949776| 26| 335729| 446146| 33| Commercial vehicles (CVs)| M&HCVs| | | | | | | Passenger Carriers| 40995| 46026| 12| 34892| 43081| 24| 7456| 6069| -19| Goods Carriers| 151288| 204145| 35| 148603| 201977| 36| 9363| 14354| 53| Total M&HCVs| 192283| 250171| 30| 183495| 245058| 34| 16819| 20423| 21| LCVs| | | | | | |. Passenger Carriers| 28635| 34751| 21| 26952| 34421| 28| 5426| 2708| -50| Goods Carriers| 195952| 281686| 44| 173747| 251916| 45| 20380| 21876| 7| Total LCVs| 224587| 316437| 41| 200699| 286337| 43| 25806| 24584| -5| Total CVs| 416870| 566608| 36| 384194| 531395| 38| 42625| 45007| 6| 3-wheelers| Goods Carriers| 417434| 530203| 27| 268463| 349662| 30| 146914| 172505| 17| Total 3-Wheelers| 79586| 88890| 12| 81264| 90706| 12| 1152| 777| -33| Grand total| 497020| 619093| 25| 349727| 440368| 26| 148066| 173282| 17| 2-Wheelers|. Scooter| 1161276| 1494409| 29| 1148007| 1462507| 27| 25816| 30125| 17| Motorcycles| 6798118| 8444852| 24| 5831953| 7341139| 26| 971018| 1103104| 14| Mopeds| 436219| 571070| 31| 431214| 564584| 31| 7300| 6905| -5| Electric Two Wheel| 24179| 2558| -89| 26445| 3001| -89| 40| 50| -| Total 2-Wheelers| 8419792| 10512889| 25| 7437619| 9371231| 26| 1004174| 1140184| 14| Grand Total| 11172275| 14049830| 26| 9724243| 12292770| 26| 1530594| 1804619| 18| source: SIAM; Cygnus Research| Demand-supply mismatch: The new capacity addition till 2012, may anticipate a demand and supply mismatch in the short term. Demand is only expected to grow by 10-12% every year. In 2009-10 the domestic auto industry was utilizing 80-85% of its capacity, but this may drop to 65% by 2012. India may be in a similar position in 2012 as the global auto industry is in right now. The global capacity utilization in 2009-10 was around 65%, down from 80% in 2008-09. In the near future it is expected that the mismatch is going to see between Demand and Supply. Capacity addition: Accoding to Fitch Ratings, by 2012, the existing players in the market are expected to add 0. 9m units to the 2. 6m units’ capacity of the passenger vehicle segment and 0.6m units to the 0. 75m units’ capacity of the commercial vehicle segment. Meanwhile, global automakers who currently only assemble in India, are expected to set up production units, in order to be more competitive with local players. Quarterly-Analysis Production Trend During AMJ10, the segmental market size of 2-wheeler stood at 77%, followed by Passenger vehicles at 16% and then followed by 3-wheelers at 4%. In this quarter the total industry production increased by 33. 27 to 4. 09m units from 3. 06m units in the previous year same period. The commercial vehicle segment production has increased by 57. 11% to 0.16m units and recorded top among the segments. Sales and Exports Trend From the past two years the sale of the vehicles are increasing during this quarter due to the domestic demand made by the festive season and the exports are declining. In terms of sales commercial vehicles sales had increased by 55% during AMJ10 and stood in top against AMJ09. Passenger vehicle sales increased by 33% next to Commercial Vehicles and stood at 0. 55m units followed by 2 and 3-wheelers. The total Indian automobile exports during AMJ10 increased by 59. 30% to 0. 58m units against 0. 36m units. The 3-wheeler segment stood in top in- terms of exports by 150. 33% increase followed by C. V and P. V. SEGMENTAL ANALYSIS OF THE INDUSTRY (QUARTERLY) Automobile Sales Performance in AMJ (in terms of Volume)| I PASSENGER VEHICLES| | AMJ’09| AMJ’10| % change| A. Passenger Cars| 324,985| 433,641| 33%| B. UVs| 60,969| 76,432| 25%| C. MPVs| 31,965| 44,493| 39%| TOTAL (A+B+C)| 417,919| 554,566| 33%| II. COMMERCIAL VEHICLES (CVs)| M&HCVs| | | | A. Passenger Carriers| 7,482| 11,574| 55%| B. Goods Carriers| 31,408| 59,642| 90%| TOTAL (A+B)| 38,890| 71,216| 83%| LCVs| | | | A. Passenger Carriers| 9,601| 11,566| 20%| B. Goods Carriers| 48,376| 67,095| 39%| TOTAL (A+B)| 57,977| 78,661| 36%|. TOTAL COMMERCIAL VEHICLES (CVs)| 96,867| 149,877| 55%| III. THREE WHEELERS| A. passenger carrier| 72,339| 84,298| 17%| B. goods carrier| 18,963| 20,855| 10%| TOTAL (A+B)| 91,302| 105,153| 15%| IV TWO WHEELERS| A. scooters| 317,400| 470,323| 48%| B. motor cycles| 1,689,716| 2,097,415| 24%| C. mopeds| 128,738| 157,588| 22%| TOTAL (A+B+C+D)| 2,135,854| 2,725,326| 28%| Total volume (units)| 2,741,942| 3,534,922| 29%| Source: SIAM; Cygnus Research| SEGMENTAL PERFORMANCE Two-wheelers Note: Demand is expected on the base of country population bases and the base year is taken as 2000 for projections. The Indian 2-wheeler industry has reported a 26% (Y-o-Y) growth in FY10 with sales at 9. 37m units as against 7. 43m units sold in FY09. On the exports front, the 2-wheeler industry with 1. 14m shipments in FY10 posted a growth of 14% (Y-o-Y). Hero Honda Motors Ltd. (HHML), the world’s largest two wheeler manufacturer continued to dominate the total 2-wheeler industry with a market share of 48. 10%. In the motorcycle segment, the domestic sales grew 26% (Y-o-Y) to 7. 34m units while the exports grew 14% (Y-o-Y) to 1. 10m shipments in FY10. Hero Honda dominated the motorcycle space with a market share of 44% followed by Bajaj Auto (21%) and TVS Motors (15%). Market Penetration The two-wheeler industry is growing at a good phase in the country and expected a presence of 92 per every 1000 people at the end of 2010. The segment expects huge demand in the next 5 years. The industry is expected to sell nearly 26. 56m units till 2015. The segment is expected to face a tough time in 2011, due to the heavy compilation by the low cast cars and the alternative electronic vehicles. From 2012 the segment is expected to grow at the CAGR of 19% till 2015. Segment Boosters. New launches, coupled with low base and festive (marriage) season, helped the 2- wheeler industry post an impressive volumes growth for the month of May 2010. While the low base helped Bajaj Auto Ltd. (BAL) posts a growth of 62% (Y-o-Y) in total sales over the same month of the last fiscal. Three Wheelers The 3-wheeler industry posted an impressive growth of 26% (Y-o-Y) to 0. 44m units in FY10 as against 0. 34m units sold in the last fiscal. On the exports front, the 3-wheeler industry reported 17% (Y-o-Y) growth with 0. 17m units shipments in FY10. The passenger carrier segment reported higher growth in the domestic market at 0. 34m units 30% (Y-o-Y), while the goods carrier segment posted a 12% (Y-o-Y) growth for FY10. On the exports front, the passenger carrier segment posted a 17% (Y-o-Y) growth with 0. 17m unit shipments, while the goods segment posted a 33% (Y-o-Y) decline with exports of 777 units in FY10. Market share and players performance: Piaggio Vehicles continued to dominate the 3-wheeler industry with a market share of 41% followed by Bajaj Auto (35%) and Mahindra & Mahindra (11%). In this 3-wheeler segment 81% sub-segment is captured by Passenger carriers, which is primarily for the rural people moving long distances. The remaining 19% is covered by cargo or goods carriers; there are the versatile vehicles suitable for both intra and inter-city transport. Segment Boosters In suburban and rural areas 3-wheelers are primarily used as substitutes for buses. They thrive because of very poor public transport and on shorter trip distances. Some of the opportunities of this segment are; the inability of state government to provide the required number of buses, lack of political will to privatize public transport and free up fares. Increasing number of 3-wheelers on these routeswill bring download availability form 10-12% to 6-8%, people for 80% of the trips. PRINCIPLE APPLICATION OF 3-WHEELERS| Segments| Primary uses| Fuel used| Forecasted 3-yearsCAGR| In-city| Home-Office,Home-shopping,Schoolchildren, Home-Railways or Air port. | Petrol/LPG/CNG| 10%| Rural| Stage coach| Diesel| 11%| Cargo| Wholesaler to retailerRetailer to end user distribution| Diesel/CNG| -6%| Growth drivers and Indian in the world automobile industry (2010) Growth Drivers of Indian Auto Market| India in world production| ? Rising industrial and agricultural output? Rising per capita income? Favourable demographic distribution with rising working population and middle class? Urbanisation? Increasing disposable incomes in rural agri-sector? Availability of a variety of vehicle models meeting diverse needs and preferences? Greater affordability of vehicles? Easy finance schemes? Favourable government policies? Robust production| ? Well-developed, globally competitive auto ancillaryindustry? Established automobile testing and R&D centers? Among one of the lowest cost producers of steel in the world? World’ssecondlargestmanufactureroftwo wheeler? Fifthlargestmanufacturerofcommercial vehicles? Largest manufacturers of tractors in the world? Fourth largest passenger car market in Asia? India is the second largest two-wheeler market in the world.? 11th largest passenger car market in the world? Expectedtobetheseventhlargestauto industry by 2016| Inter- firm Comparison: Two – Wheelers Operational Performance The sales figure of Hero Honda is estimated to increase by 33. 73% in revenue terms from Rs3824. 40m in AMJ09 to Rs51116. 77m in AMJ10. Hero Honda scooter segment, pleasure sales have been growing at an average of 16000 units per month, it also crossed its land mark of 4. 5m unit sales for FY10. Bajaj Auto is estimated to show a sharp increase in sales figure by 33% from Rs 233384. 70m in AMJ09 to Rs31230. 88m in AMJ10, this has been led by its two game changing brands, Pulsar and Discover, with clocked robust volumes. TVS Motors is estimated to show an increase of 34% in sales from Rs9886. 97m in AMJ09 to Rs13254. 32m in AMJ10. Its scooter and motorcycle segment sales grew by 24% and 15% respectively; exports were increased by 22% to 20067 units during May. The newly launched TVS Jive and the TVS Wego have supported better volume growth for the month of March. Two-Wheeler Rs (m)| | AMJ 09 (A)| AMJ 10 (E)| Growth| Bajaj Auto| 23384. 70| 31230. 88| 33. 55| Hero Honda| 38224. 40| 51116. 77| 33. 73| TVS| 9886. 97| 13254. 32| 34. 06| Source: BSE India; Cygnus Research| Financial Performance The overall sale of all the companies is expected to rise. In case of TVS Motors OPM will improve mainly due to reduction in other expenses and raw material cost. The operational performance of Hero Honda has also improved and is directly reflected in its OPM and NPM growth which has increased by 837bps and 486bps respectively. Bajaj Autos OPM and NPM have been increased by 94bps and 170 bps points respectively. Overall in terms Hero Honda stood in top position in terms of operational and financial performance. | Bajaj Auto| Hero Honda| TVS| | AMJ 09 (A)| AMJ 10 (E)| AMJ 09 (A)| AMJ 10 (E)| AMJ 09 (A)| AMJ 10 (E)| Net sales| 23384. 70| 31230. 88| 38224. 40| 51116. 77| 9886. 97| 13254. 32| NPM (%)| 12. 55| 14. 25| 13. 08| 17. 95| 1. 84| 2. 85| OPM (%)| 18. 45| 19. 38| 17. 01| 25. 38| 6. 33| 6. 01| Source: BSE India; Cygnus Research| Cost Structure Analysis Cost Structure (as % of Net sales) AMJ09 Vs AMJ10| Company| Hero Honda| Bajaj Auto| TVS Motors| Industry| Year| 09| 10| 09| 10| 09| 10| 09| 10| (Increase)/Decrease in Stock| 0. 33| -2. 33| 2. 04| 1. 34| 3. 15| 4. 49| -0. 74| 0. 68| Consumption of raw materials| 67. 42| 62. 86| 60. 60| 64. 04| 67. 61| 60. 50| 65. 91| 62. 41| Purchase in stock in trade| 0. 00| 0. 00| 3. 51| 3. 67| 1. 62| 1. 88| 4. 44| 5. 55| Staff cost| 3. 62| 2. 76| 4. 83| 2. 98| 5. 29| 4. 87| 5. 34| 3. 86| Other expenditure| 11. 62| 11. 32| 10. 57| 8. 59| 15. 99| 22. 26| 12. 33| 9. 73| Depreciation| 1. 19| 0. 86| 1. 41| 0. 12| 2. 57| 1. 89| 2. 63| 2. 01| Interest & Financial Charges| -0. 14| -0. 10| 0. 26| 0. 00| 1. 73| 0. 91| 1. 25| 0. 92| Tax| 3. 99| 7. 69| 5. 22| 6. 11| 0. 19| 0. 76| 2. 62| 4. 57| Source: BSE India; Cygnus Research|. Raw material cost forms the major chunk of cost for two-wheeler companies followed by other expenditure, staff cost. In terms of raw material, staff cost and other expenses the performance of Bajaj is better compared to its peers. Overall, Bajaj auto is efficient from operational point of view. It has declined its overall cost structure by 159 bps to 86. 84% from 88. 44% as the percentage of sales during AMJ09. Porter Five Forces model Here is the analysis of Auto Industry with help of the porter’s five forced model. This is common for auto industry in India. Supply | Some amount of excess capacity.while India would be capable of producing 5. 4 m cars a year by 2014, domestic demand is likely to edge up to between 3. 5 and 4. 8 m units. | Demand | Largely cyclical in nature and dependent upon economic growth and per capita income. Seasonality is also a vital factor. | Barriers to entry | High capital costs, technology, distribution network, and availability of auto components. | Bargaining power of suppliers | Low, due to stiff competition. | Bargaining power of customers | Very high, due to availability of options. | Competition | High. Expected to increase even further. | Now if we make the five-force model for two wheelers: