Maharashtra HSC Board :
Organization Of Commerce And Management (51):
(Q.P. July 2023 with Solution)
Note: (i) All questions are compulsory.
(ii) Figures to the right indicate full marks for the questions.
(iii) Figures to the left indicate question numbers.
(iv) Answer to every question must be started on a new page.
Click Here to Download Questions Papers
Q. 1. (A) Select the correct options and rewrite the sentences: (5) [20]
(1) The functions of management end with _________.
(a) directing
(b) staffing
(c) controlling
(2) _________ is the idea of bringing urban residents to rural areas by empowering local community, both socially and economically.
(a) Agro tourism
(b) Medical tourism
(c) Entertainment
(3) Door to door service is provided by ________ transport.
(a) railway
(b) road
(c) air
(4) In online shopping customers put the product in the ________
( a) shopping mall
(b) shopping cart
(c) shopping bag
(5) _______ is celebrated as World Consumers Day.
(a) 24th December
(b) 26th January
(c) 15th March
(B) Match the correct pairs: (5)
|
Group 'A' |
Group 'B' |
|
(a)
Scientific management theory |
(1) Henry
Fayol |
|
(b)
Co-ordinating |
(2) Business
Process Outsourcing (BPO) |
|
(c)
Outsourcing |
(3) F.W.
Taylor |
|
(d) Business
ethics |
(4) Road
transport office (RTO) |
|
(e)
Registered brands |
(5) It is an
integration and synchronization of the efforts of group |
|
|
(6) To earn
profit |
|
|
(7) To manage
is to forecast and plan |
|
|
(8) Trademark |
|
|
(9) Branch of
social science |
|
|
(10) ISI |
Ans:
|
Group 'A' |
Group 'B' |
|
(a)
Scientific management theory |
(3) F.W. Taylor |
|
(b)
Co-ordinating |
(5) It is an integration and synchronization of the efforts of group |
|
(c)
Outsourcing |
(2) Business Process Outsourcing (BPO) |
|
(d) Business
ethics |
(9) Branch of social science |
|
(e)
Registered brands |
(8) Trademark |
(C) State whether the following statements are true or false:
(1) The principles of management are universal in nature.
Ans: True
(2) Every function of management is not based on planning.
Ans: False
(3) It is the responsibility of commercial organisation to maintain industrial peace.
Ans: True
(4) Consumer Protection Act is not required in India.
Ans: False
(5) Regulated market operates according to forces of demand and supply.
Ans: True
(D) Correct the underlined word and rewrite the statement:
(1) Security in job always affects adversely on efficiency of employees.
Ans: Insecurity in job always affects adversely on efficiency of employees.
(2) Staffing is concerned with machines.
Ans: Staffing is concerned with humans.
(3) Dishonest advertising can be appreciated by customers in the long run.
Ans: Honest advertising can be appreciated by customers in the long run.
(4) District Commission is also referred to as People's Court.
Ans: Lok Adalat is also referred to as People's Court.
(5) Grading helps in avoiding breakage, damage and destruction of the product.
Ans: Packaging helps in avoiding breakage, damage and destruction of the product.
Q. 2. Explain the following terms / concepts (Any FOUR):
(1) Fatigue Study
Generally long working hours without sufficient breaks, target pressure, heavy working tools, and poor working conditions result into physical and mental stress i.e. fatigue. It has an adverse effect on the health and efficiency of the employees. The study of fatigue and steps to reduce the level of fatigue is very important to maintain the operational efficiency of the employees.
(2) Planning
"Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it. Planning bridges the gap from where we are and where we want to go it makes possible things to occur which would not otherwise occur."
(3) Communication
Communication is an art of exchanging ideas, facts, information etc. from one person or entity to another. The process of passing any information from one person to another with the help of some medium is termed as communication .Communication is very simple process where message is being transferred from a sender to the receiver. The receiver after receiving the message understand it in the desired form and then act accordingly.
(4) Social Responsibility
'Social Responsibility is to pursue those policies to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society.
(5) Moral Values
Moral values are based on perceptions of right and wrong whereas social values may also include ideas about things being socially acceptable. Social values are often based on tradition, ego, honesty, integrity, fairness, hard work, cooperation, forgiveness, never hurt anyone etc.
(6) Right to consumer education
Every consumer has the right to know about consumer rights and solutions to their problems. This right creates consumer awareness. An aware consumer can make rational choice of goods and services and protect his rights and interests from the exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority con cern. It is necessary to give education and training regarding prevailing acts and legal process es. The government, media and NGOs play vital roles in this regard. E.g. 'Jago Grahak Jago' campaign.
Q.3. Study the following case / situation and express your opinion (Any TWO):
(1) Mr. Harshad is an entrepreneur and engaged in production of eco-friendly utensils. Both male and female workers are working in his factory. All male employees are directly working on machines whereas female employees are working in packaging department. Mr. Sharath is working as finance manager while Mrs. Naina is working as HR manager who is responsible for recruiting employees in the factory. On this basis:
(i) Which principle of management is involved in above case?
(ii) What is the designation of Mrs. Naina in this organisation?
(iii) Who is responsible for overall planning of the organisation?
2) Mr. Jagan is a salaried person. He wants to take policy for his two children which assures them protection as well as completes their financial needs once they become major by age.
(3) A vehicle manufacturing company has adopted the following practices:
(a) Only those components will be used by the company which are environment friendly.
(b) There will be discharge of harmful wastes only after their proper treatment.
(c) Pollution level of every vehicle will be maintained as per international standards.
(i) Above business organization follows social responsibility towards which interest group?
(ii) What kind of pollution should business organizations avoid?
(iii) What kind of message do they want to convey?
Click Here to Download Questions Papers
Q. 4. Distinguish between the following (Any THREE): [12]
(1) Organizing and Co-ordinating.
| Organizing | Coordinating |
1 Meaning | Organising is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them. | Coordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goal. |
2 Objective | To identify and bring together all required resources. | To ensure harmony of efforts of the employees for smooth functioning of organization. |
3. Area of function | It includes identification and grouping of activities, assigning the work and establishing the authority relationship. | It includes integration of efforts of top level, middle level and lower level. |
4. Factors | Internal and external factors are considered in arrangement of resources. | It is harmonization of human resources, so it is concerned with internal factors. |
5. Order | It is based on planning. | It is an important element of organizing which follows planning. |
6. Resources | All available resources i.e. men, money, material, machine and method are arranged in a systematic manner. | It is related to human resources. |
7. Nature | It takes place till the time all the resources are collected and arranged. | This is a continuous process related to all managerial levels. |
8. Level of Management | Top and middle level management s related with organizing the required resources. | It is related to all the levels of management to achieve the goal of organization. |
(2) Rail transport and Air transport.
(3) Fire insurance and Marine insurance.
|
|
Fire Insurance |
Marine Insurance |
|
1. Meaning |
A contract in
which insurer promises to pay compensation to insured if something happens to
the subject matter due to fire or related events. |
A contract
where by the insurance company undertakes to pay compensation to insured in
case of loss to him due to dangers (perils) of the sea. |
|
2. Policy
taken by |
It can be
taken by individual for their properties or by businessman. For their goods,
properties business liabilities. |
It can be
taken by exporters, importers and shipping companies etc. |
|
3. Subject
matter |
In Fire
insurance, the goods and assets or property of the insured is the subject
matter. |
In Marine
insurance, goods in ship, cargo and freight is the subject matter. |
|
4. Tenure |
It is
generally for a short period like one year. |
It is
generally for a short period and may range from one month to a year. Normally
it does not exceed one year. |
|
5.
Compensation |
It is paid
only if there is loss due to fire during the term of policy |
It is paid
only if there is loss causing event during the term of the policy. |
|
6. Principle
of Indemnity |
It is
applicable as insurance company compensates for the financial loss and the
insured is brought back to the same financial condition that he was before
the event. |
It is
applicable as insurance company compensates for the financial loss and the
insured is brought back to the same financial condition that he was before
the event. |
|
7. Number of
policies |
Generally
only one policy can be taken but double insurance is possible. However,
compensation does not exceed the actual loss. |
Generally,
only one policy can be taken. However, double insurance is possible. However,
compensation does not exceed the actual loss. |
|
8.
Beneficiary |
The
beneficiary is the insured who has insured the property or goods. |
The
beneficiary is the insured person or company. |
|
9.Surrender
of policy |
It cannot be
surrendered. |
It cannot be
surrendered. |
(4) District commission and National commission.
Q. 5. Answer in brief (Any TWO):
(1) Explain any four advantages of outsourcing.
1) Overall cost advantages-
It reduces the cost and also saves time and efforts on training cost.
2) Stimulates entrepreneurship, employment and exports-
Outsourcing stimulates entrepreneurship, employment and exports in the country.
3) Low manpower Cost-
The manpower cost is much lower than that of the host company.
4) Access to professional, expert and high Quality services-
Mostly the tasks are given to people who are skilled in that particular field. This provides us with a better level of service and fewer chances of errors.
5) Emphasis on core process rather than the supporting ones-
With its help companies can focus on their core areas which lead to better profits and increase the quality of their products.
6) Investment requirements are reduced -
The organization can save on investing in the latest technology, software and infrastructure and let the outsourcing partner handle the entire infrastructure.
7) Increased efficiency and productivity -
There is an increased efficiency end productivity in the non core areas of an organization.
8) Knowledge sharing -
Outsourcing enables the organization to share knowledge and best practices with each other, it helps develop both the companies and also boosts goodwill in the industry.
(2) State any four needs of consumer protection.
Generally, safeguarding the rights and interests of consumers is known as consumer protec tion. It includes all the measures aimed at protecting the rights and interests of consumers. In modem competitive market, consumer is regarded as the 'King of Market' hence consumer protection is re quired due to the following reasons:
1) Need of participation of consumers: '
It is noted that business organizations take decisions which affect the consumers' interest without consulting the consumer or their organizations. Only a strong consumer organization can pressurize business organizations to allow consumer participation in the decision making process.
2) Lack of information:
It is very difficult to establish direct contact between consumer and manufacturer because consumers live in a dynamic and complex world and they are widely scattered. Today's markets are full of domestic as well as imported products therefore it is very difficult to get correct and reliable information about product before they purchase.
3) Ignorance:
Ignorance of consumers is the main cause of exploitation by business. Consumers in India are mostly ignorant about their rights, market conditions, price levels and product details. A system is required to protect them from business malpractices.
4) Unorganized Consumers:
Consumers are widely scattered and are not organized, On the other hand sellers are in better position than consumers and they are powerful. Consumers are under the influence of businessman. An individual consumer cannot fight against these powerful sellers.
5) Spurious Goods:
There is increasing supply of duplicate products. It is not possible for an ordinary consumer to distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety standards.
6) Misleading Advertising:
Some businessmen give misleading information about quality, safe ty and utility of products. Consumers are misled by misleading advertisement and do not know the real quality of advertised goods. A mechanism is needed to prevent misleading advertisements.
7) Malpractices of Businessmen:
Fraudulent, unethical and monopolistic trade practices by businessmen lead to exploitation of consumers. Many times consumers get defective, inferior and substandard goods and services. Certain measures are required to protect the consumers against such malpractices.
8) Trusteeship:
According to Gandhian philosophy businessmen are trustees of the society's wealth. Therefore, they should use this wealth for the benefit of people.
(3) Explain any four functions of marketing.
Success of business is difficult without effective marketing. Marketing deals with exchange of goods and services to satisfy needs of consumers. Marketing functions help to study the needs of the consumers and facilitate to satisfy it. Following are some of the important functions of marketing :
1) Marketing Research:
Effective marketing is possible when business takes initiative to identify the needs and wants of the consumers in the market. To identify the needs of the consumers, there is a need to collect information from the consumers and analyses the same is known as Market Research. Analysis of the information helps in the assessment of the need in the market. It helps to find out what do consumers want to buy, when do consumers buy, in what quantity they want to buy and at what price. Marketing Research helps to take various decisions regarding successful marketing of products.
2) Buying and Assembling:
It involves collecting raw material from different sources at one place for production. This function is important as quality and price of raw material determine cost and quality of the final product.
3) Market Planning:
After assessing the need of the marketing, business needs to chalk out the marketing plan and strategies to achieve the desired objective. Market planning is the process of organizing and defining the marketing objectives of the business and creating strategies to achieve them. It is the comprehensive blueprint that will help to draw outline of business's overall marketing efforts.
4) Product Development :
Product development and design play an important role in the selling of the product. There is a need to develop the product that suits the needs of the consumer. Product design includes decision related to quality, standards, shape, design, packing, colour etc. of the product. Consumer always prefer better and attractively designed product. Good design of the product gives competitive advantage to the business. Product development is continuous process as the requirements of the customer change from time to time.
5) Standardization and Grading:
Standardisation means to determine standards related to process, size, quality, design, weight, colour etc. of the product. It helps in ensuring uniformity in the quality of the product. It helps in achieving customers' loyalty towards the product. Grading is the process of classification of products according to similar characteristics and/or quality. Grading is done on the basis of their features like size, shape quality etc. Generally grading is done in case of agricultural products like wheat, rice, potatoes etc.
6) Packaging and Labelling:
Package and Label creates the first impression on the consumer about the product. Attractive package and label can help to make product successful. Packaging means designing the package for the product. It helps to avoiding breakage, damage and destruction of the product. Packing material includes bottles, container, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam etc. Label is a slip which is found on the product and provides all the information regarding the product and its producer. The slip on which all this information is provided is called as label and its process is called as labeling. Packaging and labelling not only provide protection to the product but also act as an effective tool of marketing
7) Branding :
Every businessman wants to have special identity in the market for his product. Branding is a process of giving special identity to a product through unique brand name to differentiate it from competitor's products. In simple words giving of distinct name to one's product is called as branding. Registered brands are known as Trademarks. Trademarks can not be copied. Branding helps to get recognition among the consumers. It can help to get new business and increase brand awareness in the market.
8) Customer Support Service:
Customer is the king of the market hence business needs to take necessary steps for the satisfaction of the customer. Business needs to take every possible effort to provide support services to the customer. Timely support services help to gain customer's loyalty. The business can provide the support services like Pre-sales service, consumer helpline, after sales service, technical assistance, product demo etc. to the customers. These services help in getting, retaining and growing the customers.
9) Pricing of Product:
Pricing is one of the most important as well as challenging function of the marketing. Many times price of the product decides the success or failure of the product. Pricing plays an important role in the market where there is cut throat competition. While determining the price of the product businessman needs to consider factors like cost, desired profit, price of the competitor's product, demand for the product, market condition etc. Business needs to change prices as per the need of the market. If prices are too high, it might lose customers but if prices are too low, it might suffer losses. So deciding the right price needs extensive market research
10) Promotional Channels :
Promotion is the process of informing the consumers about the products, their features, uses, prices etc. and encouraging them to buy these products. Advertising, Personal selling, Publicity and Sales Promotion are some of the important tools of promotion. Business uses combination of all or some of these four methods for promotion as per the need of the business. Promotional activities help to increase brand awareness in the market.
11) Distribution:
Distribution is the set of activities which is concerned with efficient movement of finished goods from the place of production to the consumer. It includes transportation, warehousing, material handling, inventory control, order processing, market forecasting, packaging, plant and warehouse location and customer service. Distribution accounts for a major part of marketing budget of the business. Importance of physical distribution for a firm depends on the type of product and level of customer satisfaction desired.
12) Transportation:
Transportation means physical movement of goods from the place of production to the place of consumption. Transportation includes transportation of finished goods as well as of raw material. Production, sale and consumption-all the three activities need not be at one place hence there is a need of transportation. Place utility is created by transportation activity. Analysis of geographical boundaries, nature of product, cost, target market, speed, reliability, frequency, safety etc. help in deciding modes of transportation. Road, air, water, railways, pipelines are some of the important modes of transportation used by business.
13) Warehousing:
There is a time-lag between the purchase or production of goods and their sale. It is important to store the goods at a safe place during this time-lag. Any negligence during this period may damage the stock. Warehouse helps to maintain a smooth flow of goods. It also helps in stabilizing prices in the market. Function of warehousing is performed by retailers, wholesalers and manufacturers. Warehousing creates time utility.
Q. 6. Justify the following statements (Any TWO):
(1) Taylor emphasized on standardization of tools and equipment.
(2) An entrepreneur must be an innovator.
(3) Online transaction is done with the help of the internet.
(4) Consumers have many responsibilities.
Q. 7. Attempt the following (Any TWO):
(1) Explain the importance of controlling.
Meaning:
Controlling function is required in all types of organizations whether profit making or non- profit making. Similarly, it is performed at all levels i.e. top, middle and lower levels of management Controlling is indispensable function of management. The effectiveness of planning function can be determined with the function of controlling. Planning and controlling are major parts of the management cycle.
Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, Identifies the causes of deviation and suggests corrective measures. The process of controlling helps in formulation of future plans also.
Importance of Controlling:
Controlling is important in maintaining standards and to achieve desired goals effectively and efficiently. It is a function of checking the performances of employees at every stage of their work in process. The importance of controlling function in an organization is as follows:
1) Fulfilling Goals of Organization:
Controlling is the function of measuring the performances at every possible storage, finding out the deviations, if any, and taking corrective actions according to planned activities for the organization. Thus, it helps in fulfilling the organizational goals.
2) Making Efficient Utilization of Resources:
Various techniques are used by managers to reduce wastage of material and spoilage of other resources. Standards are set for every performance. Employees have to follow these standards.
As the effect of this, the resources are used by employees in the most efficient and effective manner so as to achieve organizational objectives.
3) Accuracy of Standards:
An efficient control system helps management in judging the accuracy of standards whether they are accurate or not. Controlling measures are flexible to some extent. So after reviewing them according to changing circumstances, they are revised from time to time which is beneficial for checking performances accurately.
4) Motivates Employee:
After setting standards of checking performance, they are communicated to employees in advance. Due to this, employees get an idea about what to do and how to do. Performances are evaluated and on that basis employees are rewarded in the form of increment, bonus, promotion etc. It motivates the employees to perform at their best level.
5) Ensures Order and Discipline:
Controlling is the function of order and maintaining discipline. It works for reducing unprofessional behavior of the employees. Discipline is maintained by continuous checking of performances by the superiors and preventive actions are taken to minimize the gap between actual and standards.
6) Facilitates Co-ordination:
Control is a function in which the roles and responsibilities of all departmental managers and the subordinates are designed clearly. Coordination between them helps to find out the deviations in their respective departments and to use remedial measure for desired results of the organization.
7) Psychological Pressure:
The performances are evaluated with the standard targets. The employees are very well aware that their performance will be evaluated and they will be rewarded accordingly. This psychological pressure works as a motivational factor for employees to give their best performance.
8) Ensures Organizational Efficiency and Effectiveness:
Factors of control include making managers responsible, motivating them for higher performance and achieving departmental coordination. It ensures about organizational efficiency and effectiveness.
9) Builds Good Corporate Image:
Controlling function helps to improve the overall performance of the organization. Minimum deviation in predetermined standards and actual performance results into the progress of business, It can be achieved with the help of proper control. This builds good corporate image and brings goodwill for the business.
10) Acts as a Guide:
Controlling function provides set of standard performance. Managers as well as subordinates- work according to it. Wherever necessary, they can take the help of these standards and can achieve desired results. Thus, controlling function acts as a guide for everyone. The steps taken for controlling an activity guide the management while planning the future activities.
(2) What are the functions of warehouses?
Meaning:
Warehousing refers to storage of goods and consists of all those activities which are connected with storage and preserving of goods. It is a means of storing the goods. Warehousing can be defined as a group of activities connected with the storing and preserving of stored goods from the time of production till the time of consumption.
Definition:
A warehouse is defined as "an establishment for the storage or accumulation of goods."
Functions of Warehouses:
1) Storage:
This is the basic function of warehousing. Surplus commodities which are not needed immedi- ately can be stored in warehouses. They can be supplied as and when needed by the customers.
2) Price Stabilization:
Warehouses play an important role in the process of price stabilization. It is achieved by the creation of time utility by warehousing. In warehouses, usually large stock of goods is kept. Whenever, there is shortage in the market, goods can be immediately supplied through ware- houses, which helps in price stabilization to avoid rise in price due to demand and supply difference.
3) Risk bearing:
When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, fire etc. Warehouses are constructed in such a way that they minimize these risks. A warehouse keeper has to take the reasonable care of the goods and safeguard them. against various risks. For any loss or damage sustained by goods, warehouse keeper shall be liable to the owner of the goods.
4) Financing:
Loans can be raised from the warehouse keeper or from financial institutions against the goods stored by the owner. Goods act as security for the warehouse keeper or for financial institu- tions. In this manner, warehousing acts as a source of finance for the businessmen for meeting business operations.
5) Grading and Packing:
Warehouses now-a-days provide the facilities of packing, processing and grading of goods. Goods can be packed in convenient sizes as per the instructions of the owner.
6) Transportation:
Warehouses can provide transportation facility to bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on the request of the owner.
7) Time and Place Utility:
Warehouses create time utility by preserving the goods till they are demanded. It also creates ploce utility by providing the goods at the place, where they are required.
8) Processing:
Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. e.g. Paddy is polished, fruits are ripened etc. Sometimes warehouses undertake such activities on behalf of the owners.
(3) Explain the classification of market on the basis of area covered and volume of transaction.
On the Basis of Area Covered
α) Local Market: The market for the commodities which are sold within local geographical limits of a region is known as a local market.
b) National Market: The market for the commodities which are sold within the country is known as national market.
c) International Market: The market for the commodities which are produced in one country and sold in other countries is known as international market.
Q. 8. Define Bank. Explain secondary functions of Bank.
Meaning:
A bank is a financial institution which deals with deposits and advances and other related services. Bank provides various services related to money or financial requirements of consumers.
As per The Indian Banking Regulation Act, 1949 banking company means "any company. which transacts the business of banking in India" and the word banking has been defined as "accepting for the purpose of lending or investment of deposits of money from public, repayable on demand or otherwise, and withdrawable by cheque, draft and order or otherwise, "
Secondary Functions:
Secondary functions of commercial banks are classified into two groups:
(A) Agency Functions (B) Utility Functions
A) Agency Functions:
A commercial bank acts as an agent or representative of its client and performs certain func- tions as follows:
1) Periodic Collections and Payments:
Commercial bank collects sourly, dividends, interests and any other income periodically as well as makes periodical payments such as taxes, bills, premiums, rent etc. on the standing instructions provided by customer. Commercial bank charges certain fixed amount quarterly or annually in the form of service charges from customer for providing such services.
2) Portfolio Management:
Large commercial banks undertake to purchase and to sell securities such as shares, bonds, debentures etc. on behalf of the clients. This handling of securities is known as portfolio management. Due to this facility more clients are opting for such services of commercial banks.
3) Fund Transfer:
Commercial banks provide facility of fund transfer from one branch to another branch or branch of another bank, Commercial banks come with various initiatives to make these trans- fer hassle free.
4) Dematerialization:
Banks provides dematerialization facilities to their clients to hold their securities in an electronic format. On behalf of clients, it undertakes the electronic transfer of shares in case of purchase or sale.
5) Forex Transactions:
Forex is an abbreviation for foreign exchange. A bank may purchase or sell foreign exchange on behalf of its clients. A bank purchases forex from its clients which the clients receive from foreign transactions and sell the forex when the clients need it for overseas transactions.
B) Utility Functions:
A commercial bank performs utility functions for the benefits of its clients. It provides certain facilities or products to its clients as follow:
1) Issue of Drafts and Cheques:
A draft/cheque is an order to pay money from one branch of bank to another branch of the same bank or other bank. A bank issues drafts to its account holders as well as non account holders whereas cheques are issued only to the account holders. Bank charges commission for issuing a bank draft.
2) Locker Facility:
This is common utility function of any commercial bank. The bank provides locker facility for the safe custody of valuables, documents, gold ornaments etc.
3) Project Reports:
A bank may prepare project reports and feasibility studies on behalf of the clients. Project reports enable the business firm to obtain funds from the market and to obtain clearance from government authorities.
Gift Cheques:
Banks issue gift cheques and gold coins to account holders as well as to non account holders
E-banking Service:
E-banking stands for electronic banking it is also called 'Virtual Banking'. E-banking is the result of the development in the field of electronics and computers. Under E-banking, the banking operations are computerized. Some of the elements of E-banking are as follows:
1) Automated Teller Machine:
The ATMs are electronic machines which are operated by the customer on his own to with- draw or deposit money. It can be used for other banking transactions also such as balance enquiry, transferring money, request for cheque book or bank statements etc. Nowadays, ATM also provides facility of cash deposits through CDM (cash deposit machines.)
2) Credit Cards:
A credit card is a payment card. It allows the cardholder to pay for different transactions he performs. The issuing bank creates a revolving account and grants a line of credit to the cus- tomer or user. Credit card offers convenience to customers as customer need not carry cash.
3) Debit cards
Most of the banks nowadays offer debit card as soon as account is opened by account holder. Through debit card payments, the amount gets deducted from account holder's account. Some banks offer personalized debit and credit cards as per the requirement of customer.
4) RTGS:
RTGS stands for Real Time Gross Settlement. RTGS is a fund transfer system where transfer of funds or money takes place from one bank to another bank on "real time" and on "gross basis". It is the fastest money transfer system through the banking channel.
Real Time Settlement means payment transaction is not subject to any waiting period. The transactions are settled as soon as they are processed. The receiving bank has to credit the account of the client within 2 hours of receiving the funds transfer message.
Gross Settlement means the transactions are settled on one to one basis without bunching with any other transactions. The minimum amount to be remitted through RTGS is Rs. Two lacs while there is no upper limit for transactions. However, amount changes from bank to bank.
5) NEFT:
NEFT stands for National Electronic Fund Transfer. Under this system, funds are transferred electronically from one branch to another branch or one bank to another bank in the country. The client has to give details of NEFT code of branch and account number of beneficiary to whom the money is to be transferred.
The NEFT settlements take place at particular time during working hours. For instance, settlements of fund transfer requests in NEFT system is done on half-hourly basis. There are 24 half- hourly settlement batches run from 8 am to 7 pm on all working days of week. The main difference between NEFT and RTGS is that in the case of RTGS, transfer is done on gross settlement basis while NEFT is on deferred net basis, where transactions are bundled together
6) Net Banking and Mobile Banking:
With the introduction of net banking, the client is able to transact banking operations with the help of computers, laptop and other gadgets. The internet banking services enable a client to check various transactions, facilitates payments of various things, transferring funds etc.. Mobile banking refers to the use of banking services with the help of mobile phones. The client registers with the bank for this facility and gets a unique code for transactions. The client can perform various transactions such as request for balances, transfer of funds, stop payment, issue of cheque book etc.
IMPS Facility:
IMPS stands for immediate payment services. This facility allows customers to instantly transfer funds to any other bank account.
OR
Explain the importance of marketing to the society and firm.
A) Importance of Marketing to the Society
1) Increase in Standard of Living:
The prime objective of marketing is to provide goods and services to the customers to satisfy their needs. Poul Mazur defined marketing as, "The delivery of standard of living to the soci- ety". Marketing helps to identify the needs of the customers and take an initiative to provide the quality goods at the cheaper prices. This will help to increase and maintain the standard of living of the customers. In the modern times, large scale production of goods and services reduced its prices due to which even the poorer sections of society con attain a reasonable level of living.
2) Provides Employment:
Modern marketing is a total system which covers almost all functions of organization such os buying, selling, financing, transport, warehousing, risk bearing, research and development etc. To run this system there is a need of people. Thus, marketing gives job opportunities to the people. In the modern era of automation, lesser employments are available in production function and the role of marketing has widened. It gives more opportunities of employment in marketing. Converse, Huegy and Mitchell have rightly pointed out that "In order to have continuous production, there must be continuous marketing, only then employment can be sustained and high level of business activity can be continued".
3) Decreases Distribution Costs:
Marketing activities help to provide cheap goods and services to the society. Effective utilization of channel of distribution can help in reducing the cost prices of the products and services. Reduction of cost will help to increase the potential consumers for the products or services. It also assures timely availability of the product.
4) Consumer Awareness:
Marketing helps the society by informing and educating consumers. The function of marketing is to fulfil the needs of the consumers. Marketing helps consumers to know about new product and service available in the market and its usefulness to the customer.
Marketing provides satisfaction to the society by supplying relevant information, goods, and services to the people of society according to their demand and taste. Marketing can also include more practical information to assist in making a purchase, such as addresses, phone numbers, product release dates, store hours and Web addresses.
5) Increase in National Income:
Every economy revolves around marketing, production and finance to the industry. The scientifically organized marketing activities help in the economic development of the country. Effective marketing of products and services result into industrialization, more job and makes the economy stronger and stable. Marketing can bring about rapid development of the country by integration of agriculture and industry..
6) Managing Consumer Expectations:
Marketing research helps the organizations to understand the needs of the consumers. It helps in developing the products which fulfills customer's expectations. Customers' review collected through different sources can help the organizations to make necessary changes in the products. Businesses use marketing to make consumers aware of major changes, such as mergers and transfers in ownership that affect product offerings or seek to improve quality. Government regulations prevent marketers from making false or misleading claims.
B) Importance of Marketing to the Firm Increases Awareness:
1) Marketing helps in creating awareness about the existing products, new arrivals as well as the company which sells a particular product in the market. This raises awareness among the potential consumers. It creates brand image among the consumers.
2) Increases Sales:
Once marketing creates awareness about the products or services among the consumers, it attracts them to purchase the same. Successful marketing campaign helps to increase the sales of the organization. Increase in sale generates profit for the organization. This income and profit are reinvested in the business to earn more profits in future. In modern business, survival of the organization depends on the effectiveness of the marketing function.
3) Creates Trust:
People want to buy from a business that has a trustworthy reputation. Creating trust among the customers is a time consuming process. Creating trust among the consumers helps the busi- ness to earn loyal customers. Once your business can establish this trust with your clients, it creates customer loyalty. Happy customers enhance the brand image in the market. Effective marketing plays an important role in building a relationship between the customers and the organization. Effective pricing policy and timely after sales services improve image of the organization. A majority of the activities of the marketers are directed towards building the brand equity of the business.
4) Basis for Making Decisions:
From inception of idea to delivering the final product to the customer, businessman has to take several decisions. Businessman has to look after many problems such as what, how, when. how much and for whom to produce? As the scale of operation increases, these decisions be- come more complex. Marketing helps to take right decision at right time.
5) Source of New Ideas:
Marketing helps business to understand the needs of the consumers. Feedbacks from the con- sumers help in the improvement of the existing products. There is rapid change in tastes and preference of people. Marketing helps in understanding these changes. It helps to understand new demand pattern emerged in the market. Research and Development department develop products accordingly. The 4p's of marketing mix i.e. product, price, place and promotion play a huge role in the product development. Inventions and innovations are taken place as per the need by the Research and Development team of the business.
6) Tackling the Competition
There is increasing competition in almost all sectors of the economy. It is difficult for any business to create monopoly for their products and services. The role of marketing is important to create brand image in the minds of potential customers. Marketing not only helps to communicate the products and services to the consumers but also motivates them to buy the same, Sound marketing strategies can portray better image of the business than the competitors.
Businesses can take use of modern technology for effective marketing.
0 Comments