Case Study Union and Auto Parts Essay Example

Case Study Union and Auto Parts Essay The purpose of this problem is to familiarize students with the negotiation of a labor contract. The problem is strictly a hypothetical one and does not pertain to any actually management or union. It is designed to test in a practical way the student’s understanding of the issues of collective bargaining studied during the semester and the strategy of the bargaining process. The following constitutes the case on which demands will be based and which provides the framework for the negotiations. Read it very carefully to size up the situation. Base your demands only on the facts given here. Representatives of the Auto Products Corporation of Indianapolis, Indiana, and Local 5000, United Metal Workers of America, are in the process of negotiating their collective bargaining contract. The negotiation covers the Indianapolis plant. * Auto Products also owns a plant in Little Rock, Arkansas, but the southern plant is not organized and is not a part of the current negotiations. The current contract, which covers only the Indianapolis plant, was negotiated for a 3-year period. The time of the negotiation is the present, and, accordingly, the parties are conditioned by current economic trends, patterns of collective bargaining, and labor relations law. The Indianapolis plant has been in business for 60 years and has steadily expanded. At present, 1,409 production and maintenance employees are in the bargaining unit of the plan. The financial structure of the firm has been relatively good. Here are some financial data from the Indianapolis plant for the fiscal year preceding these negotiations: Net Sales $200,825,900 Material Costs 79,250,000 We will write a custom essay sample on Case Study Union and Auto Parts specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Case Study Union and Auto Parts specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Case Study Union and Auto Parts specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Direct Labor Costs (includes fringe benefits, payroll taxes, and reflects layoffs in previous fiscal year) 72,635,000 Other Variable Costs 13,265,000 Fixed Costs 5,500,000 Total Expenses 170,650,000 Income Before Taxes 30,175,000 Net Income After Taxes (Federal, State, County, Municipal) 14,200,000 In the past, the practice has been to distribute about 65 percent of net profits in dividends and to hold 35 percent as retained earnings. Last year the company borrowed $6. 3 million from Hoosier National Bank. The rate of interest on the loan was 6. 9 percent. The proceeds of the loans were used to expand the Little Rock plant. The loan is scheduled for liquidation in 10 years. The company manufactures a variety of auto accessories. These include auto heaters, oil pumps, fan belts, rear-view mirrors, and piston rings, and in the last year the company has also started production of auto air conditioners. About 65 percent of its sales are to the basic auto companies (General Motors, Ford, Toyota and Honda), 25 percent to auto-repair facilities, and the rest to government agencies. The plant operates on a two-shift basis. A $. 25 per hour premium is paid to employees who work the second shift. The employees of the company were unionized in 1949. In August of that year, the union was victorious in an NLRB election. As a result of the election, certification was awarded, on August 17, 1949, to Local 5000, since which time Local 5000 represented the production and maintenance workers of the company. The first collective bargaining agreement between the company and Local 5000 was signed on November 14, 1949. Only one contract strike has taken place since the union came into the picture. It occurred in 1959; the issues were the union’s demands for a union shop, increased wages, and six paid holidays. The strike lasted 6 weeks. When it terminated, the union had obtained for its members a $. 04 hourly wage increase (the union had demanded $. 07) retroactive to the day of the strike, and four paid holidays. The union failed in its attempt to obtain any arrangement requiring membership in the union as a condition of employment. Also, the current contract does not include a check off. At the time of these negotiations, all except 100 workers in the bargaining unit are in the union. The average hourly earnings for the production workers in the Indianapolis plant are $15. 09. Of the 1,409 bargaining unit employees, there are 175 skilled maintenance employees (electricians, plumbers, carpenters, mechanics, and tool and die makers), and their average hourly earnings are $16. 05. The existing contract contains an escalator (COLA) clause providing for the adjustment of wages in accordance with changes in the consumer price index. There is no â€Å"cap† on the amount of the increase. It provides for a $. 03 increase in wages for each 0. -point increase in the CPI. The escalator arrangement is reviewed on a semiannual basis. The current hourly rates include the increases generated from the escalator clause and the annual improvement factor. During the term of the 3-year contract, workers received a $. 75 increase in wages including a $. 40 from the operation of the escalator clause and $. 30 from the operation of the annual improvement factor (a $. 15 increase o n the anniversary date of the contract in each of the past 2 years). The Little Rock plant was built 5 years ago. It started with a modest-sized labor force, but during the past 3 years the southern plant has expanded sharply, and it now employs about 1,500 production and maintenance workers. Efforts to organize the southern plant have so far been unsuccessful. The union lost an NLRB election last year by 300 votes. Of the 1,500 employees, 1,300 cast ballots, with 800 voting against the union and 500 voting for it. The average wage in the Little Rock plant is $10. 80 per hour. Currently, 450 employees in the Indianapolis plant are on layoff. It is no secret that one reason for this has been the increase of output in the Little Rock plant. Another reason was the decrease in sales at the Indianapolis plant. In Little Rock, essentially the same products are made as in Indianapolis. Of the 450 on layoff, reduction in sales caused by the state of the automobile industry accounts for 300, and the remainder is attributable to the southern situation. There is talk in the plant that some laid-off employees will never be recalled to work. Of the 450 laid-off employees, 75 have exhausted their benefits under the Indiana Unemployment Compensation Act. The present contract does not provide for a supplementary unemployment benefit program. In general, the relations between the management and the union have been satisfactory. There have, of course, been the usual disagreements, but all in all, relations have been quite harmonious. However, last month there was a wildcat strike, the first one since the union came into the picture. It occurred in the Oil Pump Department, and the alleged cause was the discharge of the steward of the department on the grounds that he shoved a supervisor while he was discussing a grievance with him. The union disclaimed all responsibility for the strike, and its officers stated that they did all they could to get workers back to work. However, the employees in the Oil Pump Department picketed the plant, and the incident, which lasted 2 days, shut down all production in the plant for those 2 days. There is a nostrike clause in the contract that states: There will be no strikes, slowdowns, or other interruptions of production because of labor disputes during the contract period. Employees who engage in such prohibited activity are subject to discharge. The company threatened to sue the union for damages under the Taft-Hartley law, but management finally decided not go to court after the employees returned to work. No employee was disciplined because of the strike; however, at present, the steward remains discharged, and the union has demanded that he be returned to his job. Under the contract, the company has the right to discharge for â€Å"just cause. † The steward is 68 years old and was one of the leading union figures back in the 1970s. He is known affectionately by his fellow workers as â€Å"Old Joe. The existing contract contains a standard grievance procedure and provides for arbitration for all disputes arising under the contract, except production standards, which management has the unilateral right to establish. During the last contractual period (3 years), 75 written grievances were filed by employees protesting â€Å"unreasonably† high production standards. As required by the contract, the company negot iated the production standard grievances, but the union did not have the right to appeal to arbitration or to strike over them. In three cases sparked by the production standard grievances, the company reduced the standards. In all other cases, the company denied the grievances. The management rights clause states in effect that the company retains all right except as limited by express provisions of the labor agreement. Provided in the contract are a series of benefits: eight paid holidays; a pension plan similar to the one negotiated in the basic automobile industry; and a paid vacation program wherein employees receive 1 week’s vacation for 1 year of service, 2 weeks for 5 years, and 3 weeks for 20 or more years of service. A medical insurance program covers the entire bargaining unit. However, the program does not cover employees laid off more than 30 consecutive days. Of the 450 employees on layoff, 80 percent have been laid off for more than 30 consecutive days. This program does cover physician and hospital services, including emergency room treatment. It provides â€Å"first dollar coverage†Ã¢â‚¬â€no deductions are assessed against the employee before insurance kicks in. Reflecting national trends, the costs of the medical insurance program have been mounting: $2,261 per employee in 1992 and $4,899 per employee at the present time. The company pays the entire cost of the plan. It is well known that the company wants relief from the burden of the medical insurance program. Rumors are that the company intends to demand from the union that workers pay a stiff deductible before an insurance plan kicks in. Also, there is reason to believe that the company will demand that treatment in the hospital’s emergency room be eliminated from the insurance program. Another rumor is that the company will demand that employees be enrolled in a health maintenance organization to save money. The union has indicated that it will not permit any change whatsoever in the medical insurance program. Under the corporate pension program, employees with 20 or more years of service may retire at age 65 and receive full benefits, though retirement is not required of anyone. The average age of the employees in the plant is 39. About 8 percent are over 65 years of age and have more than 20 years of service. The average pension for the last fiscal year was $478 per month. The total cost of the pension program for the last fiscal year amounted to $7. 23 per hour. The current seniority clause provides for promotions based on length of service and ability. That is, seniority governs when the senior employee has qualifications reasonably equal to those of junior employees who bid on the job. During the contract period, 21 grievances were filed by employees who protested against the company’s filling jobs with junior service employees. The company’s position in these grievances was that the junior employees had far more ability than the senior employees. Five of these grievances went to arbitration, the company winning four and the union winning only one. Promotions are bid for on a departmental basis. The seniority area of the existing contract provides for plant wide application of seniority credits for layoffs and recalls, provided that the senior employee has the necessary qualifications to perform the available work. During the recent period in which layoffs occurred, the company, as required by the contract, laid off many junior employees rather than senior employees because of the plant wide system. Supervisors have complained to management that, in many cases, the junior employees who had been laid off were more efficient than the senior employees who had to be retained because of the plant wide system. Also, the current contract provides that an employee whose job goes down, or who job is preempted by a more senior employee, may bump any junior employee in the plant, provided that the preempting employee has the qualifications to fill the job. During layoff periods, the company became aware that this situation caused a great deal of expense because of an unreasonable amount of job displacement. Also, the current contract does not contain a temporary layoff clause. This means that displaced employees may exercise their bumping rights on the basis of their plant wide seniority regardless of the length of the layoff. Supervisors have complained to the management that employees should be laid off without regard to seniority when the layoff is for a short period of time. The existing contract provides for super seniority for stewards and other union officials. This provision protects the stewards and union officials only from layoffs. There are 45 stewards in the plant. Last year, stewards spent, on average, about 10 hours each week on grievance work, for which they were paid by the company. There are no limitations on stewards for grievance work. Supervisors have complained that some stewards are â€Å"goofing off,† using â€Å"union business† as a pretext not to work. All the stewards deny this. In fact, the stewards claim that it is the unreasonable attitude of supervisors that provokes grievances and complaints. Also, the stewards claim that there cannot be a true measure of their time on the basis of the number of written grievances (a total of 450 grievances, including the production of standard complaints, were filed during the last 3 years), since a good share of their time is spent discussing grievances with employees and supervisors before a written grievance is filed. There is no record to show how many of these oral discussions ended problems without written grievances being filed. Last year, because of an unexpected order from the government, the plant worked Saturday and Sunday overtime for a period of two weekends. Under the existing contract, the company has the right to require overtime. About 200 employees did not want to work overtime but did so only because the company threatened to fire them if they refused. These 200 employees have been raising a lot of trouble in the union about this overtime affair. Also, the company has the right to select the employees to work overtime. Some employees have claimed that supervisors are not fair, giving their friends the opportunity to earn the extra money and discriminating against the older employees. For many years, by custom, each skilled tradesperson has worked only within his or her trade. Five months ago, the company required a mechanic to do a job normally performed by a plumber. The employee and union filed a grievance, and the case went all the way to arbitration. The arbitrator sustained the position of the union on the basis of the â€Å"past practice† principle. Some maintenance people have been affected by the current layoff, with 25 laid off. They charge that the company has been subcontracting out skilled work that could be done by them. Last year, for example, the company subcontracted out electrical work while three electricians were on layoff. The subcontract job lasted 6 days. Under the current contract, there is no restriction on the company’s right to subcontract. The present contract, as stated, was negotiated for a 3-year period. Both sides have indicated that in the future they may want to move away from this long-term arrangement for a variety of reasons. However, there is no assurance of whether this attitude indicates the parties’ sincere position or is merely an expression of a possible bargaining position. Technological change has been a problem in the company for several years. About 250 workers have been permanently separated because of it. Union and management meetings to deal with the problem during the past several years have proved fruitless. Previous discussions have centered on the rate of change, the problem of income for the displaced employees, and the training of employees for the jobs created by the new technology. All indications are that the next wave of automation will cost about 390 bargaining unit jobs. The 250 employees who have been permanently separated are in addition to the 450 employees who are currently on layoff because of the southern situation and the drop in sales. There has been considerable controversy over the problem of temporary transfers. Under the existing contract, the company many not transfer an employee to a job not in his or her job classification. There are also problems regarding other working rules. These now include a 15-minute rest period every 4 hours; a stipulation that no supervisor may perform bargaining unit work regardless of circumstances; paid lunch periods of 20-minute duration; and paid â€Å"wash-up† time for 10 minutes before quitting time. The company contends that these â€Å"working rules† are costing it a lot of money. Whenever this issue has been brought up in the past, the union has refused any change. Company records show that 60 percent of the workers have seniority up to 10 years; 30 percent, between 10 and 20 years; and 10 percent, more than 20 years. About 20 percent of the bargaining unit are women, and 15 percent are blacks. Some black employees have complained that they have not been given equal opportunity to get better jobs. Of the 175 skilled employees in the skilled trades, only eight are black. They have threatened to file complaints against both the company and the union under Title VII of the Civil Rights Act and Taft-Hartley. They have retained an attorney for this purpose. Two final issues appear to be involved in the current bargaining. First, a number of employees have told the union leadership that it is high time that at least one union representative was offered a seat on the nine-person company board of directors. These workers, who are particularly vocal ones as it happens, feel that his matter deserves considerable priority. Second, the company’s president tends to favor the imposition of a two-tier wage system, whereby all workers hired after the new labor agreement is signed would receive pay rates well below those of the current employees. He has publicly declared that â€Å"two-tiering could well be the salvation of this company. †

Isopod Behavior Lab Report Essay Example

Isopod Behavior Lab Report Essay Example Isopod Behavior Lab Report Paper Isopod Behavior Lab Report Paper While the same animal my not wanting to eat something that is not sugary or sweet like peas. Every organism acts different, especially when a stimulus is affecting them. While other times the organism can do something for no reason, well at least to our knowledge. Relationships also can be a factor on how organisms act, most likely being aggressive or submissive. For example, male crocodiles will fight each other for a mate; this is showing their aggressive side. After one of the cross has won the fight, the female crop will be submissive towards him to show dominance. This shows how they can act because of a relationship. Another example is people and the weather, which is a stimulus. People who like mild to hot temperatures will most likely go outside to do things. While people who dont like the cold temperatures will do things inside, just so they dont go outside. This shows how a stimulus can affect an organisms behavior and what they do. Hypothesis: For my hypothesis I wrote, If the pill bugs are in the Petri dish with the other chemicals then they will go to the filter paper where the sugar is more so then the other filter paper that has chemicals on it. I choose this hypothesis for many reasons. First off, I know that most organisms, bugs, insects, etc Eke sweet and sugary tasting things. I know this because I always see ants in my kitchen trying to get to the sugar rather then anything else. I know the pill bugs will not like the vinegar because most bugs will not go for vinegar. This goes the same with salt. I also thought about the water, this would be my second choice for my hypothesis. As I was writing my hypothesis, I also tried to tie it to me as well. I personally favor sugar over the others, next would be water, then salt, and last but not least vinegar. Using my personal taste, I was better able to make my decision on my hypothesis. Materials: 4 pill Bugs Petri Dish Pieces of Filter Paper Pen or pencil Dropper Clock Water Salt Solution Sugar Solution Vinegar Notebook (egg. Data-table) Scissors Something sturdy to cover the Petri dish Teacher You Procedures: Procedure 1: 1 Petri dish was placed on top of table. A dry piece of filter paper was centered into Petri dish. Four pill bugs were placed into the Petri dish; the Petri dish was covered with an index card then a stack of post-it notes was placed on top of the index cards. The pill bugs behavior was observed for 5 minutes, data was gathered and written on the paper. No human influence had any affect on the pill bugs behavior. Procedure 2: One piece of circular filter paper was taken and cut into 4 equal sections. The 4 sections of filter paper were then assigned and labeled with a letter from A D. The chemicals were collected, which were water, salt solution, sugar solution and vinegar. Using a dropper, 5 10 drops of each solution were placed on a separate piece of filter paper. Then the filter paper with the solutions on it was placed in the Petri dish, 4 pill bugs were then added into the Petri dish. The pill bugs behavior was observed and recorded over the course of 5 minutes by recording how many pill bugs would go n each piece of filter paper in 30-second intervals. After that the pill bugs were returned to their home, the filter paper and the lab station were cleaned. Data / Observations: TIME A = WATER B = SUGAR c = SALT D = VINEGAR IN BETWEEN ALTERS Start O Seconds 4 30 2 1 Minute Minutes 3 Minutes 4 Minutes 5 Minutes Total For Each Solution 11 15 10 8 Over the course of our lab, our group collected lots of data from the pill bugs behavior. At the beginning of our lab we had placed the pill bugs in the Petri dish with dry filter paper and we observed their behavior. The pill bugs were going round the inside rim of Petri in circles following each other, almost as if it were a game of tag. The pill bugs never seemed to stop moving, flipping over and were constantly climbing. Some of the pill bugs even tried to escape from the Petri dish, but our group was quick to make that didnt happen. As our lab went on, we placed the 4 different pieces of filter paper with solutions on them and then added 4 pill bugs to it. We collected lots of information during this procedure. This table represents how many pill bugs were on each slice of filter paper, that had a different solution on each of them, over 30 second intervals lasting 5 minutes. This is what were recorded our data on for this part of the lab. Conclusions: The purpose of our experiment was to observe the behavior of the pill bugs. We were trying to find exactly whether the pill bugs would be attracted or repelled by the chemicals. The chemicals used were vinegar, water, salt solution and a sugar solution. By placing strips of filter paper with the solutions on it into a Petri dish and then adding the pill bugs did attract and repel the pill bugs. This experiment would show whether the pill bugs would be attracted to one or some of the 4 chemicals in Petri dish. This experiment was relevant to the topic because the pill bugs would show some kind of different behavior, which is what the topic was related to because the topic was that some animals behave in different ways, especially to a stimulus. From the experiment I learned that the pill bugs behavior did change when the chemicals were added to the Petri dish. From the data that we recorded in the chart it showed that the pill bugs like to go to the sugar solution the most. This does not surprise me because I thought the pill bugs would be most likely to go to the sugar solution. I thought this because most animals would chose meeting that is sugary and sweet, so tied this into the experiment and this is also how I formed my hypothesis. Next came the water solution that the pill bugs liked. Then, came the salt solution. Then, came the in between filter. Finally, came the vinegar solution. This does not surprise me that the pill bugs like the vinegar solution because I know ants dont like vinegar, so I thought the pill bugs would be the same. These results fully support my hypothesis about the experiment. Through this experiment my hypothesis was proven correct. My original hypothesis was, If the pill bugs are introduced to the chemicals, then the pill USGS will most likely go to the sugar solution rather then go to the others. I then looked at the results of my experiment and it showed that the pill bugs liked the sugar solution the most. This alone proves that my hypothesis is correct. I believe the accuracy and precision in my results is 100% correct. I believe this to be valid because I ensured there were no errors made during the experiment. Even though there was a lot of room for error I made sure that it didnt happen. This experiment could have been revised, as there should have been a bigger Petri dish or something larger to hold the pill bugs in. This way more solutions could eave been used like the same 4 chemicals just more slides of them. This would show more accurately that they really did like the sugar; this would eliminate any one saying that it was a fluke, that the pill bugs liked the sugar. I also think more pill bugs should have been added. I think that this would allow for more room for accuracy and precision in the experiment. From the experiment I learned that pill bugs are very interesting organisms. I had a lot of fun doing the experiment. I learned that out of a sugar solution, a salt solution, vinegar and water, that the pill bugs will choose the sugar solution the most. I also learned from this experiment that an experiment can always be redone and that it will show more accurate results. Before this experiment I always thought that one experiment could be good enough for 100% accuracy. Then, I thought about this experiment and I realized that this experiment could be better done. I also learned that pill bugs also like to climb on top of each other. This was interesting to me because I never thought they would do that because, you dont see people or elephants climbing top of each other. These are some facts that I learned from the lab. In conclusion, the experiment showed the behavior of the pill bugs when Heimlich were introduced.

Art in post- modernity Essay Example | Topics and Well Written Essays - 1750 words

Art in post- modernity - Essay Example The practice is founded on urban â€Å"operational space,† as depicted in â€Å"practice of place† as illustrated by Certeau and not the abstract space of urban planning, geometry, or the virtual space of the screen. This is a space produced by a lived experience, characterized by individuals mapping their personal movements and every day relationships to seeming centers of power through the neighborhoods, the streets and transit networks of the city. Street art offers an instinctive break from the hastened â€Å"aesthetics of disappearance†. Hence, it is an indicator cut off in an exceedingly mass-arbitrated environment, which is dominated by a regime of screen visibility that always has absence of material objects. The placement of works requires a place, demarcating locations with awareness, which is against the increasing urban â€Å"non-places† of anonymous commerce and transit. Street artists use walls as mural space, which is their useful differenti ator . In the early 1990s, the street arts had effectively used walls in Los Angeles and New York, which boasted of different graffiti styles. The Berlin Wall had miles of mural art and graffiti, which created visually striking images during the fall of wall in 1989. As a city mural art, street art spread across Europe and to South America, throughout the 1990s. There has been a gradual evolution from simple graffiti as slogan writing or name to a focused practice entailing many types of graphic and image techniques. These techniques involve hybrid genres and mixed methods., which are produced and executed both on and off the street. Figure 1 Pop, as anticipated by Dada and Duchamp, launched a new conceptual space, which introduced new arguments regarding on what art could be. Street art acquired these arguments; thus, becoming a transformative logic of Pop. Consequently, it became a redirected work of transubstantiation, which changed the unrefined and non-art-differentiated space of public streets into novel territories of visual engagement. This anti-art performative works eventually resulted in a new art category. Street art deaestheticizes â€Å"high art† as one of the various forms of source material; and on the other hand, aestheticizing sectors, which were formerly outside culturally acknowledged art space. The â€Å"extramural† sectors of non-art space and the judgment of the art container are currently turned inside out. The walls of the city reflect what was banned on the walls of art institutions, such as,

Sam 386 unit 6 Assignment Example | Topics and Well Written Essays - 250 words

Sam 386 unit 6 - Assignment Example There is a special set rules that apply to the prosecution of defamation of public figures. In order for a private citizen such a neighbor or a friend to prove defamation against an individual, they only must prove that the individual acted negligently. The concept of negligence means that a â€Å"reasonable person† would not have made or published the defamatory statement. For a public figure, it is much harder to prove defamation since the accused must show â€Å"actual malice† in their statement. The plaintiff must prove that the accused published the statements with knowledge that the statements are untrue or in restless disregard of the truth. This makes the prosecution of defamation of a public figures much harder to proof for the plaintiff in a court of law. For a public figure it is important to recognize these differences in the treatment of defamation cases. Although it may not seem fair for public individuals to be treated differently under the law, a public figure by definition has agreed to have their private lifes scrutinized under the public lens as part of their responsibilities as a public

Business and Society Research Paper Example | Topics and Well Written Essays - 1000 words

Business and Society - Research Paper Example From then on, strategies should be developed in order to incorporate their participation in forming a coalition which can divine special assistance to the company in its entirety. Stakeholder analysis is particularly important because of the increasing interconnectivity nature of the world. Not one corporation is fully in monopoly of one particular business because there are many other entities involved, all with their own interests and motives. In order to be successful as CEO, it is imperative to be able to identify the key stakeholders and take advantage of the scenario. Stakeholders have varying interests which are dependent on their roles and relationship to the company. In identifying these roles, only then can a better understanding be founded on how to best manage them. There are two kinds of stakeholders; the primary and the secondary stakeholders. By definition, the primary stakeholders, also known as the market stakeholders, are the ones directly benefitting and/or affected by the performance of the corporation or a particular business activity (Akpinar, p. 52). These may include customers, employees, stockholders, creditors, suppliers, and basically anyone with financial and functional interest to the operation or business situation. The secondary stakeholders, who are also referred as non-market stakeholders, are individuals or groups which are not directly affected by the results or consequences of the company but still hold interest to the corporation. Such as these are the money-lending institutions, government agencies, the media, competitors, or even the general public. Secondary stakeholders are also important not only since they can also be primary stakeholders, too, but also because they influence the empowerment or the limitation of the capacity of the operations of the corporation. Like dominos, many individuals, groups, and other organizations are affected and involved with the actions of a company. Problems facing the

Impact of Marketing Collateral in Banks

Impact of Marketing Collateral in Banks INTRODUCTION About HDFC Bank: HDFC Bank was incorporated in August 1994, and, currently has a nationwide network of 2000 Branches and 5,471 ATMs in 996 Indian towns and cities. Differentiate to lead: Trust is a bankers greatest currency and a great banking and financial services brand can be built only on a strong foundation of trust. That pretty much has been HDFC banks story as it emerged from the image of a state owned housing finance corporation to a slick new age universal bank. Incorporated in 1994, the banks contribution to the bustle of post liberalization has been incredible. The banks service offerings include a spectrum of innovative products in retail banking, wholesale banking, the capital markets and many more areas growing consistently at 25-30 percent for over a decade. This has been driven by HDFC banks decision to adopt technology as its backbone. Not only did the technological revolution cut down costs but most significantly it enhanced the customer experience. The experience fostered trust and confidence among customers and the virtuous feedback loop catapulted HDFC bank into the league of elite private sector banks in the country. HDFC banks biggest differentiator from others is its robust set of policies that they worked on backed by quality service. Clear de-risking policies in a high risk Indian market have paid rich dividends to a brand run with great vision and strategy. When others concentrated on numbers, HDFC bank concentrated on quality. That made them an extremely respected bank to deal with. Power Creation: With the vision of being one-stop financial superstore in mind, the bank operates in three segments: Personal Banking, Wholesale Banking, and NRI Services. The Personal Banking segments provides various deposit products, exclusive banking for high net-worth individuals including Wealth Advisory, Private banking and Personal loans such as auto, personal, home, gold, business loans and more. This segment also is the distribution point for third party financial products, such as Mutual Funds and Insurance. In the space of Personal Banking, HDFC banks credit Cards are also enormously trusted. Here as well some well-crafted strategies of the past have yielded brilliant results for the bank. One of the key success factors for HDFC bank is clear de-risked business strategies that not only ensure the right revenue inflow but a loyal customer base. The Wholesale Banking segment provides loan and transaction services to large corporate organizations, emerging corporate organizations, small and medium enterprises and institutional customers. It also offers deposit and transaction banking products, working capital and term finance, foreign exchange products and the like. Other services include trade services, cash management, money market, custodial, tax collection and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks and regional rural banks and investment services for non-resident Indians. Communication Strategy: The positioning strategy in recent years has been to position the bank as a one-stop financial supermarket. The objective of the communication has not just been acquisition of new customers, but also creating product awareness, enhancing usage and providing value-adds to customers. The campaigns from HDFC bank have always focused on that and their tagline ‘We Understand Your World only carries the legacy forward. Advertisement campaigns are aimed at highlighting how a product fulfils an identified customer need. The communication showcases the customer benefit first showcasing the banks commitment towards excellence in customer service facilitated through various means, especially technology. The bank also compliments its visual media presence with below the line activities including innovative programmes such as the Merits Scholarship plan which received high acclamation. Magical factors: As a brand, HDFC bank remains committed to India and enhancing the financial service space for everyone in the country. HDFC bank plans to bring financial viability in the next five years to 10 million families at the bottom of the pyramid through supporting microfinance programmes which can be driven by the bank through self help groups rather than just relying on microfinance institutions. The relentless pursuit of efficiency through technology also makes the bank a customer favourite. Their latest innovation is the ‘My Favourite features at ATMs which help customers reduce the time they spend at the ATM. The feature enables the consumer to customize his most often used withdrawal amount thereby speeding up the process by about 40%. It is the focus on little things also that has made HDFC bank such a customer centric bank and is the heart and soul of the brand. Brand Ethos: HDFC bank has always been about making customers comfortable thereby earning their trust. Whether it is through offering transparent products with no hidden fine print or through technological enhancements, HDFC bank has always paid attention to understand customer needs, reinforcing the trust it holds among customers. Its current tagline â€Å"We Understand Your World† is only apt in the sense that if theres one word youd like to associate with HDFC bank it has to be ‘understanding. What is a Brand? The word brand is derived from the Old Norse â€Å"brandr† meaning to burn. It refers to the practice of producers burning their mark (or brand) onto their products. When the technique of branding first started, it was meant to make identifying and differentiating a product easier. Over time, brands came to embrace a performance or benefit promise, for the product, certainly, but eventually also for the company behind the brand. Today, brand plays a much bigger role. Brands have been co-opted as powerful symbols in larger debates about economics, social issues, and politics. The power of brands to communicate a complex message quickly, with emotional impact and the ability of brands to attract media attention makes them an ideal tool in the hands of activists. Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and relates to key constituencies i.e. customers, staff, partners, investors etc. Brand identity and image Brand identity is the outward expression of a brand, including its name, trademark, communications and visual appearance. Because the identity is assembled by the brand owner, it reflects how the owner wants the consumer to perceive the brand and by extension the branded company, organization, product or service. This is in contrast to the brand image, which is a customers mental picture of a brand. The brand owner will seek to bridge the gap between the brand image and the brand identity Brand awareness Brand awareness refers to customers ability to recall and recognize the brand under different conditions and link to the brand name, logo and jingles etc., to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products. Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it. Brand Tracking The role of brand tracking methodologies is to monitor the health and the value of your brands. These are the business equivalent of taking your temperature or reading your pulse they can tell you quite reliably (within statistically-dictated tolerances) whether you are ill or well, and even how ill or how well. They can also point to certain symptoms. However, if you want to know how to get better, you may have to go to see a doctor (or, in this case, a consultant/marketing research agency using sophisticated diagnostic and prognostic techniques) Effective brand management relies on getting timely and accurate information from the target audiences. Brand tracking involves designing a program of measurement that is completed on a regular schedule to allow for trend analysis and comparison. Some of the key metrics that are involved in tracking a brand include: Brand awareness and familiarity Brand perceptions Brand positioning Delivery on brand promise Perceptions of competitive brands What are marketing collaterals? Marketing collaterals consists of printed materials that describe a business and its products and services. Marketing collateral includes brochures, posters, banners, standees and other printed materials produced by or for an organization. Types of the marketing collaterals used in HDFC bank are displayed as follows: MARKETING COLLATERALS WINDOW GLAZINGTENT CARDS LCD TVSTANDEE BANNERLEAFLETS POSTERNOTICE BOARD DESCRIPTION OF THE PROJECT Impact of marketing collaterals in branches: Every bank has several branches spread wide all over. As we enter a branch we witness many informative items such as banners, posters, standees, leaflets, window glazing, etc. These are known as marketing collaterals. These collaterals are put up with the intention of being read and used by every individual, customer or non-customer, whosoever enters the branch for whatever purpose. They carry information regarding new offers, schemes, rates, changes in banking operations, RBI implications, list of services provided, etc. These are meant to grab customer attention and to probe them into enquiring about the information displayed. It not only helps in improving sales opportunities but also helps in spreading information about the bank and its services. By observing and studying how effective these collaterals actually are, we could do a cost-benefit analysis and also provide recommendations on improving the effectiveness and usefulness of these collaterals by making desired modifications. The project involves observing visitors and also using questionnaires to identify the effective usage of marketing collaterals in the branches of HDFC bank spread over Mumbai city. Brand tracking of HDFC bank in semi-urban regions of India: A brand is defined as a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors. It is very difficult to understand the perception that people have about a particular brand. The role of brand tracking is to monitor the health and the value of a particular brand. It can tell you quite reliably how are the brand performing and what is the image of the brand, as perceived by the people. Brand tracking can point out the reasons why a brand is not performing well and can also recommend suggestions on improving the brand image. In this project, I will be using questionnaires to interview already existing customers as well as non-customers in semi-urban areas of selected cities of India about how they feel about HDFC bank and its services. Interviews would be done face-to-face or door-to-door. Analysis will be made from the data obtained and the current brand image in the minds of people can be formed. Accordingly, suggestions can be provided on how the brand image can be improvised. OBJECTIVES OF THE PROJECT Impact of marketing collaterals in branches: HDFC bank has 1780 branches and 5231 ATMs in 833 Indian towns and cities. Every branch has several marketing collaterals placed with the intention of spreading awareness about the bank and for improving sales. HDFC bank incurs expenses to put up these marketing collaterals. If the collaterals do not help the bank up to the desired extent at which the bank requires then it is considered that the bank is making losses on these marketing collaterals. The core objective of this project is to study the usefulness of marketing collaterals and to identify the obstacles that are faced by the customer/visitor in utilizing these collaterals. Thus, changes can be suggested in order to improve the utility of these marketing collaterals. Brand tracking of HDFC bank in semi-urban regions of India: A brand plays a very vital role in the sales of any company. The image that people have about a certain brand influences them to make decision regarding whether to use a certain product or service of that particular brand. Thus, in order to improve sales, it is very important to improve the brands image in the minds of people. Brand tracking is a methodology which helps in tracking and identifying the brands image i.e. what people perceive about the particular company. Identifying the brands image is very helpful in placing marketing strategies. The objective of this project is to track the image of HDFC bank in the minds of its customers as well as non-customers in semi-urban markets of India and identifying the banks brand position as compared to its competitors. BENEFITS TO THE ORGANIZATION With the help of this survey, HDFC Bank can identify how much impact its each marketing collaterals has on the customers and which are the collaterals which are not helpful or fail to induce enquiries from the customers. Also the reason behind the collaterals not being attractive are found out and accordingly modifications are suggested. Thus, the effectiveness of the marketing collaterals at various branches of Mumbai city can be increased. The brand tracking survey would help HDFC Bank to identify what people in semi-urban regions perceive about it. Also it can know where it stands as compared to its competitors and what people understand about HDFC Banks local taglines. The brand awareness, visibility, likability and its recall value is calculated. Future marketing strategies can be designed using this information. Apart from these core objectives, HDFC Bank can also use the database collected by the survey for generating leads and other such purposes. LIMITATIONS OF THE STUDY As the method of communication used for the survey is face-to-face or door-to-door, the limitations include limited geographical flexibility, high cost and difficulty in call back or follow-up. The entire surveys, research, analysis and decisions are based on the primary data collected by interviewing people from different cities. So the project is highly reliable on the perceptions, thoughts and ideas of people, which are ever changing. Also measuring the cognitive, affective and behavioural components of an attitude is a limitation. The project on brand tracking is limited to the semi-urban regions of India and does not include the urban cities. RESEARCH PROCESS ADOPTED Both the projects that have been selected are research based projects. To study the impact of marketing collaterals in the branches of HDFC bank in Mumbai city as well as for tracking the image of HDFC bank in semi-urban regions, a research had to be made which followed a process that is divided in 7 steps which are as follows: The entire research process has been designed keeping these 7 steps in mind. Accordingly, a schedule was formed and the stipulated time frame was decided to complete the tasks of the schedule. This helped complete the projects in a smooth and systematically planned manner. THE SCHEDULE OF TASKS IS AS FOLLOWS METHODOLGY USED The methodology adopted for researching on both the projects is by collecting primary data through questionnaire method. Customers as well as non-customers are interviewed using questionnaires on face-to-face basis by visiting different semi-urban regions of a few cities where HDFC bank has its branches located at. Data collected from questionnaires will be used in percentage form as the primary data for making analysis. It is a stringent research methodology based on a perception based survey which would include parameters like brand awareness, brand image/perception, brand recall value, brand performance and brand association. The process for preparing the questionnaires for the brand tracking survey is by interviewing 100 people (random sampling) on what they feel are important attributes or features that they look for while selecting a bank for opening a CASA account. The next step is to select the features that have been desired by maximum number of people asked. These features are to be included in the questionnaire along with the other questions for tracking the brand image of HDFC bank. By multiplying the rank given by interviewees to the importance level of the attribute, a clear idea can be drawn as to where HDFC bank stands as compared to its competitors and in which areas the bank need to work upon. Also, the local taglines of HDFC Bank in different cities for example, Gujarati in Surat, Marathi in Aurangabad and so on has been included in the questionnaire for indentifying the understanding that people, of that particular region, have about the local tagline. In order to prepare the questionnaire to study the impact of marketing collaterals in branches, the most common marketing collaterals have been identified and included. The questionnaires are prepared with the aim of identifying the importance and effectiveness of each marketing collateral and the problems faced by the visitors in using these collaterals. For providing more clarity, both the questionnaires prepared are attached with this report. The entire data derived from the questionnaires regarding both the projects, is coded and saved in EXCEL sheets so that it can be included in the banks MIS and can be used by the bank in future whenever required. CITIES AND BRANCHES VISITED TILL DATE Lists of cities that have been visited for Brand Tracking of HDFC Bank is as follows: 1) Aurangabad People outside the branches of HDFC banks competitors i.e. ICICI bank, SBI and AXIS bank were interviewed using questionnaires that were prepared. 2) Surat Semi-urban regions near Surat city were visited i.e. Bardoli and Amroli. 3) Madhya Pradesh Semi-urban regions of M.P were visited i.e. Khandwa and Harda. 4) Rajkot Semi-urban regions of Rajkot were visited i.e. Wankaner, Metoda and Una. A list of branches of HDFC Bank in Mumbai that were visited to conduct the study on impact of marketing collaterals in branches is as follows: Hughes Road branch Sandoz house branch Khar Road branch Borivali branch Vashi branch Andheri branch Sanpada branch Zaveri branch APMC 2 branch Kandivili branch EXCEL sheets containing the entire information of the cities and branches visited along with the data collected is attached with this report. DATA FINDINGS OF MARKETING COLLATERALS SURVEY List of branches visited: Hughes Road branch Sandoz house branch Khar Road branch Borivali branch Vashi branch Andheri branch Sanpada branch Zaveri branch APMC 2 branch Kandivili branch Total number of people interviewed: 200 Data collected is as follows: 1) How often do you visit the branch? a) Very often 48% b) Less often 28% c) Rarely 24% 2) How much time do you spend in the branch at every visit? a) 5 to 10 minutes 17.5% b) 10 to 15 minutes 34% c) 15 to 20 minutes 20.5% d) Above 20 minutes 28% 3) Which of the following collaterals attract your attention the most? 4) Do you often spend time reading these collaterals? a) Yes 67.5% b) No 32.5% 5) Do you find it easy to read them? a) Yes 94% b) No 6% 6) If yes, does it induce you to inquire about it? a) Yes 75.5% b) No 24.5% 7) If no, what are the obstacles that prevent you from reading it? a) Location of the collateral 2.5% b) Font size/colour 2% c) Too much text matter 12% d) Language 0.5% e) Other issues 6% f) No issues 77% DATA FINDINGS ON BRAND TRACKING Cities Visited: Aurangabad, Surat (Bardoli and Amroli), Madhya Pradesh (Khandwa and Harda) and Rajkot (Una, Wankaner and Metoda) Total Number of peopleinterviewed: 200 Data collected is as follows: (The data provided is divided into three sections i.e. in terms of all the data collected, data collected from customers and data collected from non-customers) 1) Banks that the people were aware about are as follows: All data: HDFC bank 26.3% ICICI bank 21.8% State Bank of India 18% Axis bank 15% Other 18.8% Customers: HDFC bank 28.57% ICICI bank 19.72% State Bank of India 16.32% Axis bank 12.92% Other 22.44% Non-customers: HDFC bank 25.60% ICICI bank 22.51% State Bank of India 18.54% Axis bank 15.67% Other 17.66% 2) Public opinion about each bank with regards to the attributes mentioned as follows: a) Trust All data Customers Non-Customers b) Customer friendly staff All data Customers Non-customers c) Speed of services All data Customers Ranks ICICI HDFC SBI AXIS Impact of Marketing Collateral in Banks Impact of Marketing Collateral in Banks INTRODUCTION About HDFC Bank: HDFC Bank was incorporated in August 1994, and, currently has a nationwide network of 2000 Branches and 5,471 ATMs in 996 Indian towns and cities. Differentiate to lead: Trust is a bankers greatest currency and a great banking and financial services brand can be built only on a strong foundation of trust. That pretty much has been HDFC banks story as it emerged from the image of a state owned housing finance corporation to a slick new age universal bank. Incorporated in 1994, the banks contribution to the bustle of post liberalization has been incredible. The banks service offerings include a spectrum of innovative products in retail banking, wholesale banking, the capital markets and many more areas growing consistently at 25-30 percent for over a decade. This has been driven by HDFC banks decision to adopt technology as its backbone. Not only did the technological revolution cut down costs but most significantly it enhanced the customer experience. The experience fostered trust and confidence among customers and the virtuous feedback loop catapulted HDFC bank into the league of elite private sector banks in the country. HDFC banks biggest differentiator from others is its robust set of policies that they worked on backed by quality service. Clear de-risking policies in a high risk Indian market have paid rich dividends to a brand run with great vision and strategy. When others concentrated on numbers, HDFC bank concentrated on quality. That made them an extremely respected bank to deal with. Power Creation: With the vision of being one-stop financial superstore in mind, the bank operates in three segments: Personal Banking, Wholesale Banking, and NRI Services. The Personal Banking segments provides various deposit products, exclusive banking for high net-worth individuals including Wealth Advisory, Private banking and Personal loans such as auto, personal, home, gold, business loans and more. This segment also is the distribution point for third party financial products, such as Mutual Funds and Insurance. In the space of Personal Banking, HDFC banks credit Cards are also enormously trusted. Here as well some well-crafted strategies of the past have yielded brilliant results for the bank. One of the key success factors for HDFC bank is clear de-risked business strategies that not only ensure the right revenue inflow but a loyal customer base. The Wholesale Banking segment provides loan and transaction services to large corporate organizations, emerging corporate organizations, small and medium enterprises and institutional customers. It also offers deposit and transaction banking products, working capital and term finance, foreign exchange products and the like. Other services include trade services, cash management, money market, custodial, tax collection and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks and regional rural banks and investment services for non-resident Indians. Communication Strategy: The positioning strategy in recent years has been to position the bank as a one-stop financial supermarket. The objective of the communication has not just been acquisition of new customers, but also creating product awareness, enhancing usage and providing value-adds to customers. The campaigns from HDFC bank have always focused on that and their tagline ‘We Understand Your World only carries the legacy forward. Advertisement campaigns are aimed at highlighting how a product fulfils an identified customer need. The communication showcases the customer benefit first showcasing the banks commitment towards excellence in customer service facilitated through various means, especially technology. The bank also compliments its visual media presence with below the line activities including innovative programmes such as the Merits Scholarship plan which received high acclamation. Magical factors: As a brand, HDFC bank remains committed to India and enhancing the financial service space for everyone in the country. HDFC bank plans to bring financial viability in the next five years to 10 million families at the bottom of the pyramid through supporting microfinance programmes which can be driven by the bank through self help groups rather than just relying on microfinance institutions. The relentless pursuit of efficiency through technology also makes the bank a customer favourite. Their latest innovation is the ‘My Favourite features at ATMs which help customers reduce the time they spend at the ATM. The feature enables the consumer to customize his most often used withdrawal amount thereby speeding up the process by about 40%. It is the focus on little things also that has made HDFC bank such a customer centric bank and is the heart and soul of the brand. Brand Ethos: HDFC bank has always been about making customers comfortable thereby earning their trust. Whether it is through offering transparent products with no hidden fine print or through technological enhancements, HDFC bank has always paid attention to understand customer needs, reinforcing the trust it holds among customers. Its current tagline â€Å"We Understand Your World† is only apt in the sense that if theres one word youd like to associate with HDFC bank it has to be ‘understanding. What is a Brand? The word brand is derived from the Old Norse â€Å"brandr† meaning to burn. It refers to the practice of producers burning their mark (or brand) onto their products. When the technique of branding first started, it was meant to make identifying and differentiating a product easier. Over time, brands came to embrace a performance or benefit promise, for the product, certainly, but eventually also for the company behind the brand. Today, brand plays a much bigger role. Brands have been co-opted as powerful symbols in larger debates about economics, social issues, and politics. The power of brands to communicate a complex message quickly, with emotional impact and the ability of brands to attract media attention makes them an ideal tool in the hands of activists. Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and relates to key constituencies i.e. customers, staff, partners, investors etc. Brand identity and image Brand identity is the outward expression of a brand, including its name, trademark, communications and visual appearance. Because the identity is assembled by the brand owner, it reflects how the owner wants the consumer to perceive the brand and by extension the branded company, organization, product or service. This is in contrast to the brand image, which is a customers mental picture of a brand. The brand owner will seek to bridge the gap between the brand image and the brand identity Brand awareness Brand awareness refers to customers ability to recall and recognize the brand under different conditions and link to the brand name, logo and jingles etc., to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products. Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it. Brand Tracking The role of brand tracking methodologies is to monitor the health and the value of your brands. These are the business equivalent of taking your temperature or reading your pulse they can tell you quite reliably (within statistically-dictated tolerances) whether you are ill or well, and even how ill or how well. They can also point to certain symptoms. However, if you want to know how to get better, you may have to go to see a doctor (or, in this case, a consultant/marketing research agency using sophisticated diagnostic and prognostic techniques) Effective brand management relies on getting timely and accurate information from the target audiences. Brand tracking involves designing a program of measurement that is completed on a regular schedule to allow for trend analysis and comparison. Some of the key metrics that are involved in tracking a brand include: Brand awareness and familiarity Brand perceptions Brand positioning Delivery on brand promise Perceptions of competitive brands What are marketing collaterals? Marketing collaterals consists of printed materials that describe a business and its products and services. Marketing collateral includes brochures, posters, banners, standees and other printed materials produced by or for an organization. Types of the marketing collaterals used in HDFC bank are displayed as follows: MARKETING COLLATERALS WINDOW GLAZINGTENT CARDS LCD TVSTANDEE BANNERLEAFLETS POSTERNOTICE BOARD DESCRIPTION OF THE PROJECT Impact of marketing collaterals in branches: Every bank has several branches spread wide all over. As we enter a branch we witness many informative items such as banners, posters, standees, leaflets, window glazing, etc. These are known as marketing collaterals. These collaterals are put up with the intention of being read and used by every individual, customer or non-customer, whosoever enters the branch for whatever purpose. They carry information regarding new offers, schemes, rates, changes in banking operations, RBI implications, list of services provided, etc. These are meant to grab customer attention and to probe them into enquiring about the information displayed. It not only helps in improving sales opportunities but also helps in spreading information about the bank and its services. By observing and studying how effective these collaterals actually are, we could do a cost-benefit analysis and also provide recommendations on improving the effectiveness and usefulness of these collaterals by making desired modifications. The project involves observing visitors and also using questionnaires to identify the effective usage of marketing collaterals in the branches of HDFC bank spread over Mumbai city. Brand tracking of HDFC bank in semi-urban regions of India: A brand is defined as a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors. It is very difficult to understand the perception that people have about a particular brand. The role of brand tracking is to monitor the health and the value of a particular brand. It can tell you quite reliably how are the brand performing and what is the image of the brand, as perceived by the people. Brand tracking can point out the reasons why a brand is not performing well and can also recommend suggestions on improving the brand image. In this project, I will be using questionnaires to interview already existing customers as well as non-customers in semi-urban areas of selected cities of India about how they feel about HDFC bank and its services. Interviews would be done face-to-face or door-to-door. Analysis will be made from the data obtained and the current brand image in the minds of people can be formed. Accordingly, suggestions can be provided on how the brand image can be improvised. OBJECTIVES OF THE PROJECT Impact of marketing collaterals in branches: HDFC bank has 1780 branches and 5231 ATMs in 833 Indian towns and cities. Every branch has several marketing collaterals placed with the intention of spreading awareness about the bank and for improving sales. HDFC bank incurs expenses to put up these marketing collaterals. If the collaterals do not help the bank up to the desired extent at which the bank requires then it is considered that the bank is making losses on these marketing collaterals. The core objective of this project is to study the usefulness of marketing collaterals and to identify the obstacles that are faced by the customer/visitor in utilizing these collaterals. Thus, changes can be suggested in order to improve the utility of these marketing collaterals. Brand tracking of HDFC bank in semi-urban regions of India: A brand plays a very vital role in the sales of any company. The image that people have about a certain brand influences them to make decision regarding whether to use a certain product or service of that particular brand. Thus, in order to improve sales, it is very important to improve the brands image in the minds of people. Brand tracking is a methodology which helps in tracking and identifying the brands image i.e. what people perceive about the particular company. Identifying the brands image is very helpful in placing marketing strategies. The objective of this project is to track the image of HDFC bank in the minds of its customers as well as non-customers in semi-urban markets of India and identifying the banks brand position as compared to its competitors. BENEFITS TO THE ORGANIZATION With the help of this survey, HDFC Bank can identify how much impact its each marketing collaterals has on the customers and which are the collaterals which are not helpful or fail to induce enquiries from the customers. Also the reason behind the collaterals not being attractive are found out and accordingly modifications are suggested. Thus, the effectiveness of the marketing collaterals at various branches of Mumbai city can be increased. The brand tracking survey would help HDFC Bank to identify what people in semi-urban regions perceive about it. Also it can know where it stands as compared to its competitors and what people understand about HDFC Banks local taglines. The brand awareness, visibility, likability and its recall value is calculated. Future marketing strategies can be designed using this information. Apart from these core objectives, HDFC Bank can also use the database collected by the survey for generating leads and other such purposes. LIMITATIONS OF THE STUDY As the method of communication used for the survey is face-to-face or door-to-door, the limitations include limited geographical flexibility, high cost and difficulty in call back or follow-up. The entire surveys, research, analysis and decisions are based on the primary data collected by interviewing people from different cities. So the project is highly reliable on the perceptions, thoughts and ideas of people, which are ever changing. Also measuring the cognitive, affective and behavioural components of an attitude is a limitation. The project on brand tracking is limited to the semi-urban regions of India and does not include the urban cities. RESEARCH PROCESS ADOPTED Both the projects that have been selected are research based projects. To study the impact of marketing collaterals in the branches of HDFC bank in Mumbai city as well as for tracking the image of HDFC bank in semi-urban regions, a research had to be made which followed a process that is divided in 7 steps which are as follows: The entire research process has been designed keeping these 7 steps in mind. Accordingly, a schedule was formed and the stipulated time frame was decided to complete the tasks of the schedule. This helped complete the projects in a smooth and systematically planned manner. THE SCHEDULE OF TASKS IS AS FOLLOWS METHODOLGY USED The methodology adopted for researching on both the projects is by collecting primary data through questionnaire method. Customers as well as non-customers are interviewed using questionnaires on face-to-face basis by visiting different semi-urban regions of a few cities where HDFC bank has its branches located at. Data collected from questionnaires will be used in percentage form as the primary data for making analysis. It is a stringent research methodology based on a perception based survey which would include parameters like brand awareness, brand image/perception, brand recall value, brand performance and brand association. The process for preparing the questionnaires for the brand tracking survey is by interviewing 100 people (random sampling) on what they feel are important attributes or features that they look for while selecting a bank for opening a CASA account. The next step is to select the features that have been desired by maximum number of people asked. These features are to be included in the questionnaire along with the other questions for tracking the brand image of HDFC bank. By multiplying the rank given by interviewees to the importance level of the attribute, a clear idea can be drawn as to where HDFC bank stands as compared to its competitors and in which areas the bank need to work upon. Also, the local taglines of HDFC Bank in different cities for example, Gujarati in Surat, Marathi in Aurangabad and so on has been included in the questionnaire for indentifying the understanding that people, of that particular region, have about the local tagline. In order to prepare the questionnaire to study the impact of marketing collaterals in branches, the most common marketing collaterals have been identified and included. The questionnaires are prepared with the aim of identifying the importance and effectiveness of each marketing collateral and the problems faced by the visitors in using these collaterals. For providing more clarity, both the questionnaires prepared are attached with this report. The entire data derived from the questionnaires regarding both the projects, is coded and saved in EXCEL sheets so that it can be included in the banks MIS and can be used by the bank in future whenever required. CITIES AND BRANCHES VISITED TILL DATE Lists of cities that have been visited for Brand Tracking of HDFC Bank is as follows: 1) Aurangabad People outside the branches of HDFC banks competitors i.e. ICICI bank, SBI and AXIS bank were interviewed using questionnaires that were prepared. 2) Surat Semi-urban regions near Surat city were visited i.e. Bardoli and Amroli. 3) Madhya Pradesh Semi-urban regions of M.P were visited i.e. Khandwa and Harda. 4) Rajkot Semi-urban regions of Rajkot were visited i.e. Wankaner, Metoda and Una. A list of branches of HDFC Bank in Mumbai that were visited to conduct the study on impact of marketing collaterals in branches is as follows: Hughes Road branch Sandoz house branch Khar Road branch Borivali branch Vashi branch Andheri branch Sanpada branch Zaveri branch APMC 2 branch Kandivili branch EXCEL sheets containing the entire information of the cities and branches visited along with the data collected is attached with this report. DATA FINDINGS OF MARKETING COLLATERALS SURVEY List of branches visited: Hughes Road branch Sandoz house branch Khar Road branch Borivali branch Vashi branch Andheri branch Sanpada branch Zaveri branch APMC 2 branch Kandivili branch Total number of people interviewed: 200 Data collected is as follows: 1) How often do you visit the branch? a) Very often 48% b) Less often 28% c) Rarely 24% 2) How much time do you spend in the branch at every visit? a) 5 to 10 minutes 17.5% b) 10 to 15 minutes 34% c) 15 to 20 minutes 20.5% d) Above 20 minutes 28% 3) Which of the following collaterals attract your attention the most? 4) Do you often spend time reading these collaterals? a) Yes 67.5% b) No 32.5% 5) Do you find it easy to read them? a) Yes 94% b) No 6% 6) If yes, does it induce you to inquire about it? a) Yes 75.5% b) No 24.5% 7) If no, what are the obstacles that prevent you from reading it? a) Location of the collateral 2.5% b) Font size/colour 2% c) Too much text matter 12% d) Language 0.5% e) Other issues 6% f) No issues 77% DATA FINDINGS ON BRAND TRACKING Cities Visited: Aurangabad, Surat (Bardoli and Amroli), Madhya Pradesh (Khandwa and Harda) and Rajkot (Una, Wankaner and Metoda) Total Number of peopleinterviewed: 200 Data collected is as follows: (The data provided is divided into three sections i.e. in terms of all the data collected, data collected from customers and data collected from non-customers) 1) Banks that the people were aware about are as follows: All data: HDFC bank 26.3% ICICI bank 21.8% State Bank of India 18% Axis bank 15% Other 18.8% Customers: HDFC bank 28.57% ICICI bank 19.72% State Bank of India 16.32% Axis bank 12.92% Other 22.44% Non-customers: HDFC bank 25.60% ICICI bank 22.51% State Bank of India 18.54% Axis bank 15.67% Other 17.66% 2) Public opinion about each bank with regards to the attributes mentioned as follows: a) Trust All data Customers Non-Customers b) Customer friendly staff All data Customers Non-customers c) Speed of services All data Customers Ranks ICICI HDFC SBI AXIS

Brand Awareness Essay

Extent to which a brand is recognized by potential customers, and is correctly associated with a particular product Expressed usually as a percentage of target market, brand awareness is the primary goal of advertising in the early months or years of a product’s introduction.( Noel. K, Francoise. R. 1995), Brand awareness, In general, means the extent to which a brand associated with a particular product is documented by potential and existing customers either positively or negatively. Creation of brand awareness is the primary goal of advertising at the beginning of any product’s life cycle in target markets. In fact, brand awareness has influence on buying behavior of a buyer. (Noel. K, Francoise. R. 1995), Brand awareness can be measured by showing a consumer the brand and asking whether or not they knew of it beforehand. However, in common market research practice a variety of recognition and recall measures of brand awareness are employed all of which test the brand name’s association to a product category cue, this came about because most market research in the 20th Century was conducted by post or telephone, actually showing the brand to consumers usually required more expensive face-to-face interviews (until web-based interviews became possible). (Noel. K, Francoise. R. 1995), this has led many textbooks to conceptualize brand awareness simply as its measures, that is, knowledge that the brand is a member of a particular product category, e.g. soft-drinks. Examples of such measures include: Brand recognition – Either the brand name or both the brand name and category name are presented to respondents. Brand recall – the product category name is given to respondents who are asked to recall as many brands as possible that are members of the category. ï‚ §Top of mind awareness – as above, but only the first brand recalled is recorded (also known as spontaneous brand recall). There has been discussion in industry and practice about the meaning and value of various brand awareness metrics. Recently, an empirical study appeared to put this debate to rest by suggesting that all awareness metrics were systematically related, simply reflecting their difficulty, in the same way that certain questions are more difficult in academic exams (Robert W. P. 1971), Brand recall Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or service class, as distinct from brand recognition. Common market research usage is that pure brand recall requires â€Å"unaided recall†. For example a respondent may be asked to recall the names of any cars he may know, or any whisky brands he may know. Some researchers divide recall into both â€Å"unaided† and â€Å"aided† recall. â€Å"Aided recall† measures the extent to which a brand name is remembered when the actual brand name is prompted. An example of such a question is â€Å"Do you know of the â€Å"Honda† brand?† In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their competitors. The first recalled brand name (often called â€Å"top of mind†) has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase. (Jonathan, 1982) Brand Recognition Brand Recognition is the extent to which a brand is recognized for stated brand attributes or communications In some cases brand recognition is defined as aided recall – and as a subset of brand recall. In the case, brand recognition is the extent to which a brand name is recognized when prompted with the actual name. A broader view of brand recognition is the extent to which a brand is recognized within a product class for certain attributes. Logo and tagline testing can be seen as a form of brand recognition testing. For example, if a product name can be associated with a certain tagline, logo or attribute (safety and Volvo; â€Å"Just do it† – Nike) a certain level of brand recognition is present. (Jonathan, 1982) What Does Brand Awareness Mean? The likelihood that consumers recognize the existence and availability of a company’s product or service Creating brand awareness is one of the key steps in promoting a product. Investopedia explains Brand Awareness Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. For example, in the soft drink industry, very little separates a generic soda from a brand-name soda, in terms of taste. However, consumers are very aware of the brands Pepsi and Coca Cola, in terms of their images and names. This higher rate of brand awareness equates to higher sales and also serves as an economic moat that prevents competitors from gaining more market share. Definition: A gauge of marketing effectiveness measured by the ability of a customer to recognize and/or recall a name, image or other mark associated with a particular brand. Examples: In today’s most competitive atmosphere, it is critical for retailers to maintain and build on their brand awareness, as well as reinforce the value proposition of their market. (Barnard. N, 1997) 7 Ways to Build Brand Awareness To some, branding might not feel like a tangible aspect of running a business. It can’t be seen like a product on the shelf, or counted like a cash drawer at the end of the night. But, branding is the reason people pay three times more for a product at one store over another. (Houston 1992), Good branding is the product of a clear vision, and nobody knows more about vision than small business owners. But, with limited resources, creating a brand identity can be tricky. Fortunately, building brand awareness on the Internet doesn’t need to take a lot of money or resources. Here are seven strategies to build your business brand: Define the vision. Before moving ahead with the web site, create a brand positioning statement. â€Å"This isn’t just, ‘What kind of web site do we want to be?’ This is ‘Who are we?’† says Harley Manning, vice president at Forrester Research in Cambridge, Mass., a technology and market research firm that advises on the effects technology has on consumers and businesses. Good brand statements typically include the company’s mission, vision and values. â€Å"It’s succinct. It’s typically something that will fit on a page easily,† he says. Build a brand worth believing in. â€Å"Do you so believe in what you’re creating that you would trademark it?† says Andrea Fitch, (president and CEO of Red Carpet Creations, Inc., and national president of the Society for Marketing Professional Services, both based out of Alexandria), Va. Really consider what kind of brand could represent the business through the next d ecade. â€Å"Don’t have a logo that in five years you’re going to be tired of and discard for another,† she says. Remember, the web site is the brand. â€Å"A web site is not just a communication medium,† Manning says. â€Å"It is actually a channel that must deliver on the promise.† Essentially, a web site should embody the promise that it makes to customers. If, for instance, a business claims to be innovative, the web site should look fresh and modern. Create a cohesive experience between all mediums. Before she launched her company’s new web site, Fitch made sure it would be an event that her potential clients would never forget. Red Carpet Creations mailed 4,000 silver tubes containing scrolls that looked like rolled-up carpet. Inside the scrolls was an announcement about the web site’s launch. Once online, the web site was an extension of the invitations because it followed through on the themes of red carpet imagery and references to visitors being treated like a VIP. Customers should easily be able to recognize the company’s brand, whether it is print, online or some other form of media, Manning says. Don’t sacrifice creativity. Once the brand’s guidelines are established, creative choices must bring those attributes to life, Manning says. Don’t let the company’s brand become so dominating that there is no room for new thoughts and ideas. Brand should be the jumping-off point for interesting ideas, not the place where every new idea dead-ends. Fitch stresses that a sense of fun and whimsy will only enhance the likelihood that people will take an interest in the web site. Don’t communicate brand at the expense of delivering. While a web site can be a significant tool for building brand awareness, clarity and functionality are paramount. â€Å"Just be careful not to let the communication about your brand get in the way of delivering your message,† Manning says. People should be able to understand how to navigate the site without knowing a thing about the company’s catch phrases. â€Å"You can’t frustrate and annoy people into liking your brand (Houston, 1992), Listen to the customers: They determine a brand’s true value. Pay attention to customer feedback about the site because, ultimately, it’s the customers’ opinion that counts. When it comes to building a brand, a company can incorporate everything from signature colors to catch phrases, but at the end of the day, it’s the consumer who decides what a brand is really worth. â€Å"It’s not what you say [about] yourself, it’s what others say of you, How do consumers make decisions? This question is at the core of much of marketing examination over the past 60 or 70 years. As marketers manipulate the various principles of marketing, so do the consumers they seek to reach-choosing which products and services to buy, and which not to buy, choosing which brands to use, and which brands to ignore. The focus of this paper is to examine the major decision-making mo dels, strategies, and theories that underlie the decision processes used by consumers and to provide some clarity for marketing executives attempting to find the right mix of variables for their products and services. Three Decision-Making Models Early economists, led by Nicholas Bernoulli, John von Neumann, and Oskar Morgenstern, puzzled over this question. Beginning about 300 years ago, Bernoulli developed the first formal explanation of consumer decision making. It was later extended by von Neumann and Morgenstern and called the Utility Theory. This theory proposed that consumers make decisions based on the expected outcomes of their decisions. In this model consumers were viewed as rational actors who were able to estimate the probabilistic outcomes of uncertain decisions and select the outcome which maximized their well-being. However, as one might expect, consumers are typically not completely rational, or consistent, or even aware of the various elements that enter into their decision making. In addition, though consumers are good at estimating relative frequencies of events, they typically have difficulty translating these frequencies into probabilities. This Utility model, even though it had been viewed as the domina nt decision-making paradigm, had serious shortcomings that could not be explained by the model. (Herbert S, 1950) proposed an alternative, simpler model. This model was called Satisficing, in which consumers got approximately where they wanted to go and then stopped the decision-making process. An example of this would be in the search for a new apartment. Under the Utility theory, consumers would evaluate every apartment in a market, form a linear equation based on all the pertinent variables, and then select the apartment that had the highest overall utility score. With Satisficing, however, consumers might just evaluate apartments within a certain distance to their desired location, stopping when they found one that was â€Å"good enough.† This theory, though robust enough to encompass many of the shortcomings of Utility Theory, still left significant room for improvement in the area of prediction. After all, if a marketing executive can’t predict consumer behavior, then what use is a decision-making paradigm? Simon and others have extended this area in the investigation of the field of bounded rationality. Following Simon, additional efforts were made to develop better understandings of consumer decision making, extending beyond the mathematical optimization of Utility Theory and the somewhat unsatisfying Satisficing Theory. In the late 1970s, two leading psychologists, Daniel. K and Amos. T, developed Prospect Theory, which expanded upon both Utility Theory and Satisficing Theory to develop a new theory that encompassed the best aspects of each, while solving many of the problems that each presented. Two major elements that were added by Kahneman and Tversky were the concepts of value (replacing the utility found in Utility Theory) and endowment, in which an item is more precious if one owns it than if someone else, owns it. Value provided a reference point and evaluated both gains and losses from that reference point. Additionally, gains and losses have a marginally decreasing increase from the reference point. For example, there is a much greater value for the first incremental gain from the reference point than for subsequent gains.

Parliamentary Ombudsman Essay

The Ombudsman deals with issues that had resulted in questions in Parliament. The Ombudsman is the custodian of the Code of Practice on Access to Government Information. Schedule 2 of the Parliamentary Commissioner Act 1967, requires of certain institutions to assist the Ombudsman in disclosing information on request. However there are fifteen exemptions that regulate the release of the information under this Code (Ministerial Accountability And Parliamentary Questions).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Ombudsman investigates complaints from Members of Parliament that certain information that had been withheld as per the requirements of the Code, was to be revealed. The office of the Ombudsman has to deal with important papers and take decisions by exercising proper judgment. The office of the Ombudsman attempts to resolve complaints before any official action is initiated with regard to them, as such the work of the Ombudsman is informal or unofficial. There are certain restrictions that prevent the active participation of the Ombudsman. In 2005, it was declared that the Information Commissioner was to be bound by the provision of the Freedom of Information Act 2000 and should act within the scope of those provisions. Another drawback is that several departments do not cooperate with the office of the Ombudsman and depict reluctance to accept its recommendations. There was an absence of cooperation between the office of the Ombudsman and other departments in resolving complaints. Furthermore, changes in the activities and role of the Ombudsman are subject to legislation (Ministerial Accountability And Parliamentary Questions).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Parliamentary Commissioner Act 1967 sets out the job description, powers and responsibilities of the Commissioner. The institution of the Ombudsman is autonomous and   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  neither reports to the government nor is it a public servant. The Queen on the endorsement of Letters Patent appoints the Ombudsman. The Ombudsman’s responsibility is to inquire into complaints referred by members of the public in the event of their having sustained loss or injustice due to maladministration by the government departments or other public agencies. These complaints have to be forwarded by a Member of Parliament. The complainants have to   first lodge their complaints with the concerned department and facilitate the concerned officials to act on the complaint before its transmission to some other agency. Not all matters are dealt with by the Ombudsman, because certain complaints are more appropriately redressed by an appeal to a tribunal or by filing a case in a court of law. Many departments can decide on the basis of their discretionary powers. For instance the Legal Aid Board and the Planning Inspectorate are empowered to take independent decisions. If it can be established that a discretionary decision entailed maladministration, then the Ombudsman can intervene and question such acts of maladministration. The Ombudsman can also investigate administrative decisions taken on behalf of courts and tribunals but not the decisions taken directly by courts and tribunals (Parry, 2004).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The rulings of the Ombudsman are subject to judicial review as in the case of ministerial decisions. In 1994, a court affirmed this important fact in a case. Under the judicial review, it is ascertained if the application of the legislative provisions had been done correctly, while taking a decision. However, the decisions of the Parliamentary Commissioner are rarely subjected to the judicial review process. In April 2004, the High Court rejected a judicial review petition of the representatives of the Equitable Members Action Group, who were contesting the decision taken by the Ombudsman with regard to the regulation of Equitable Life (Parry, 2004). The Ombudsman does not act as courts or tribunals. The Ombudsman’s duty is not to mediate or negotiate as in the case of alternative dispute resolutions. Although the Ombudsman is a distinctive platform for taking important decisions, it is not an alternative in the process of decision making. In R v Secretary of State for Pensions, on behalf of Bradley and others, judicial review was sought due to the refusal of the authorities to provide information relating to pension schemes. In that case, Justice Bean opined that the Ombudsman exercises very wide discretion under which the Ombudsman can permit a public adversarial hearing in order to educe facts. However such discretionary power of the Parliamentary Ombudsman or the Local Government Ombudsman is subject to Parliament discretion (R v Secretary of State for Pensions, on behalf of Bradley and others, 2007).   In the event of the occurrence of maladministration or failure to provide service the Ombudsman intervenes and decides the further course of action to be undertaken for effecting redressal. Despite the fact that the decisions of the Ombudsman are final, the courts can initiate a judicial review on these decisions (Principles of Good Administration).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Ombudsman comes to the rescue of individuals in order to provide redressal of their complaints against the activities of the government agencies’ activities and other entities. Several types of Ombudsmen are established by legislation. The foremost amongst them is the Parliamentary Commissioner.   There are other authorities who act as ombudsmen such as the Health Service Commissioners who deal with complaints lodged against the Health Service and the Local Commissioners or Local Government Ombudsmen who investigate complaints against local authorities. They resolve complaints by making the necessary recommendations to the departments against whom the complaints had been lodged. They can make public recommendations but they do not possess the power to enforce such recommendations. The Parliamentary Commissioner inquires only into complaints, which are lodged by a Member of Parliament. The general public can approach the Local Government Ombudsmen directly or through a local representative. Individuals are initially required to bring their complaints to a Councillor or an MP. Subsequently, if no action is initiated or if the action initiated is unsatisfactory then the complaint is forwarded to the Ombudsman (Ombudsman, 2004).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It is the responsibility of the Members of Parliament to ensure that the general public has access to relevant authorities, in order to secure redress for maladministration or poor service. However, if they fail to get satisfactory redress or action from those mechanisms then they can approach the Ombudsmen (The Ombudsman – who are her customers?).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Ombudsmen can resolve most of the complaints received by them. Efforts have been undertaken in the United Kingdom to attain a general cooperation among several Ombudsmen. There are certain barriers to this laudable objective. Some Ombudsmen are affiliated to the outdated legislative framework, their actions are subject to legislation and there is no direct access. The MPs have to forward complaints to the Ombudsmen if problems arise with public servants. Hence, the citizens need to have direct access to the office of Ombudsmen. There are a number of problems in reforming institutional aspects, in the context of the devolution and decentralization of powers. In the present scenario of multi agency service provision, a coherent complaint handling procedure is urgently needed (The Ombudsman – who are her customers?).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In order to eliminate potential restraints, there should be a Cabinet Office review of the activities and responsibilities of public sector ombudsmen. There should be institutional reform and the legislative framework should be modified to suit modern day challenges with regard to the operational scope of the Ombudsman (The Ombudsman – who are her customers?).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The House of Commons Public Administration Select Committee or the PACS had acrimoniously criticised several departments for maladministration and inefficiency. Some of these departments were the Immigration and Nationality Directorate, the Child Support Agency and the Legal Services Commission. In its report, based on the findings of the Parliamentary Ombudsman, the PACS pointed out a number of shortcomings in government bodies. The report criticised the obsolete IT systems of these departments, their failure and unanticipated delays in responding to questions relating to the Hinduja brothers’ case and the queries raised by the Member of Parliament, Peter Mandelson (Public Administration Select Committee).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The PACS pointed out the failures of administration, departmental apathy and the negative influence of political parties on the administrative process. It also exhorted the Government to respond to the report and initiate immediate action (Public Administration Select Committee).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Home Office was also criticised for its reluctant and indifferent behaviour towards the Code on Access to Government Information. The Home Office had failed to carry out a decision of the Ombudsman when the latter ruled that the former had to reveal information regarding the number of times Ministers had declared their interests. This was the first time that a government department had refused to comply with the Ombudsman’s ruling. The PACS considered this to be a dangerous development. The Committee criticised the then Cabinet Secretary for failing to disclose the information on the specious claim that it was beyond the purview of the Ombudsman (Public Administration Select Committee).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Home Office was further criticised for its indifferent response to the Ombudsman’s inquiries and his request for papers that relate to the case of the Hinduja brothers and Peter Mandelson MP. There were several repeated failures to reply to the Ombudsman’s letters coupled with extraordinary delays and the supply of incorrect and unrelated files to the Ombudsman Office. As such, it could be construed as a conspiracy to withhold the called for information and constituted an administrative failure in the Home Office. The PACS had recommended to the Government that it should immediately initiate action to correct such maladministration and to reform the entire Ombudsman system (Public Administration Select Committee).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The number of complaints with regard to tax credits, to the Parliamentary Ombudsman is gradually increasing. Nearly twenty – six percent of the total complaints pertain to tax credits. They fall under three categories, namely, the design of the system, mishandling and failures in handling complaints and unjust recovery of overpayments (Ombudsman says that HMRC is in danger of Getting it Wrong on Tax Credits, 2007).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The designing part of the system is a process which Parliament and the government have to consider. The principles of the annualised system are difficult to comprehend by the individuals. Under the present system, overpayments and underpayments are inevitable and take place despite the best possible administration. This leads to the dissatisfaction among individuals and gives rise to several complaints. Such dissatisfaction and distress are often experienced by the low income group families, who are required to return the debts unexpectedly. In some cases, they may be required to repay the debt after a long period of time had elapsed (Ombudsman says that HMRC is in danger of Getting it Wrong on Tax Credits, 2007).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The British Constitution had provided an important position to the Parliamentary Ombudsman. The fundamental role of the Ombudsman is to provide efficient and productive redress to the complainants against acts of maladministration by the government bodies. In achieving this efficient alternative redress provider status, the Parliamentary Ombudsman requires mutual cooperation between several departments and the office of the Ombudsman. However, the reality is otherwise and resistance and apathy are exhibited by several governments department, while responding to the inquiries of the office of the Ombudsman. For instance, during the period 2005 to 2006 the Parliamentary Ombudsman was compelled to submit a special report when the findings of the Ombudsmen were rejected by several government departments (Kirkhamn, Sep2006).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Parliamentary Ombudsman submitted a special report with regard to the investigation in to the proceedings of the ex gratia schemes for the British groups engaged by the Japanese during the World War II. The Special Report was submitted to the Parliament under section 10(3) of the Parliamentary Commissioner Act 1967. This report discussed the Parliamentary Ombudsman’s powers and their legal aspects in quite some detail. It also discussed the functions of the ombudsman and its powers in interpreting the inquiry process. It also focussed on the power of ombudsman to investigate acts of maladministration by government bodies. In one particular instance, the Ministry of Defence had challenged the authority of the ombudsman in investigating claims of maladministration against it and held that this constitute trespass into its authority. This Ministry contended that such a prerogative was solely the province of the courts and not that of the ombudsman (Kirkhamn, Sep2006).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This Special Report clearly established the authority of the government bodies and public authorities and the extent to which the ombudsman could conduct investigations into their alleged acts of maladministration. The conclusion to be reached from these developments is that the parliamentary ombudsman has become more or less redundant and does not serve any useful purpose. Moreover, this body cannot compel any government department to comply with its decisions (Kirkhamn, Sep2006). Another drawback with the ombudsman system is that the person, who lodges a complaint, has to wait for a considerable period of time, prior to any decision being taken with regard to the complaint. A number of cases were observed to have been abandoned by the complainants due to this inordinate delay. In comparison, the judicial process is much faster. Moreover, the ombudsman system cannot compel the government bodies to accept its decision. On an average, the time taken to take a decision by the ombudsman, in respect of a complaint, was around two years (Caplan, 2006. P. 203). References Caplan, R. (2006. P. 203). International Governance of War – Torn Territories: Rule and Reconstruction. Oxford University Press. Kirkhamn, R. (Sep2006). Challenging the Authority of the Ombudsman: The Parliamentary Ombudsman’s Special Report onWartime Detainees. Modern Law Review , Vol. 69 Issue 5, p792-818, 27p; DOI: 10.1111/j.1468-2230.2006.00610.x; (AN 21979909). Ministerial Accountability And Parliamentary Questions. (n.d.). Retrieved November 25, 2007, from http://www.publications.parliament.uk/pa/cm200102/cmselect/cmpubadm/1086/108603.htm Ombudsman. (2004). Retrieved November 25, 2007, from In Dictionary of Politics and Government: http://www.credoreference.com/entry/6505736 Ombudsman says that HMRC is in danger of Getting it Wrong on Tax Credits. (2007, June). Retrieved November 25, 2007, from Press release: http://www.ombudsman.org.uk/news/press_releases/pr2007_06.html Parry, K. (2004, June 8). Ombudsman decisions: right of appeal. Retrieved November 25, 2007, from Parliament & Constitution Centre Standard Note: SN/PC/3079: http://www.parliament.uk/commons/lib/research/notes/snpc-03079.pdf Principles of Good Administration. (n.d.). Retrieved November 24, 2007, from http://www.ombudsman.org.uk/pdfs/pga.pdf Public Administration Select Committee. (n.d.). Pasc Attacks â€Å"Disturbing† Evidence Of Government Administrative Failure. Retrieved November 25, 2007, from Session 2002-03. Press Notice No.8: http://www.parliament.uk/parliamentary_committees/public_administration_select_committee/pasc_pn_8.cfm R v Secretary of State for Pensions, on behalf of Bradley and others, (2007) EWHC 242 Admin (2007). The Ombudsman – who are her customers? (n.d.). Retrieved November 25, 2007, from http://www.bioa.org.uk/otherinfo/AnnAbraham-LakemanLecture.pdf