Product Life Cycle

Product Life Cycle (PLC) The idea of the Product Life Cycle was first developed in 1965 by Theodore Levitt in an article entitled “Exploit the Product Life Cycle” published in the Harvard Business Review on 1 November 1965. For a business, having a growing and sustainable revenue stream from product sales is important for the stability and success of its operations. The Product Life Cycle model can be used by consultants and managers to analyse the maturity stage of products and industries. Understanding which stage a product is in provides information about expected future sales growth, and the kinds of strategies that should be implemented.

Product Life Cycle model: The “Product Life Cycle” is the name given to the stages through which a product passes over time. The classic Product Life Cycle has four stages: 1} Market introduction stage. 2} Growth stage. 3} Mature stage. 4} Saturation and decline stage

1 Market introduction stage At the market introduction stage the size of the market, sales volumes and sales growth are small. A product will also normally be subject to little or no competition. The primary goal in the introduction stage is to establish a market and build consumer demand for the product. There may be substantial research and development costs incurred in getting a product to the market introduction stage, for example, thinking of the product idea, developing the technology, determining the product features and quality level, establishing sufficient manufacturing capacity, preparing the product branding, ensuring trade mark protection, etc. Marketing costs may be high in order to test the market, launch and promote the product, develop a market for the product, and set up distribution channels. The market introduction stage is likely to be a period of low or negative profits. As such, it is important that products are carefully monitored to ensure that sales volumes start to grow. If a product fails to become profitable it may need to be abandoned.

Some of the considerations in the introduction stage include:

Product development: research and development of the basic technology and product concept, determining the product features and quality level.

Pricing: should penetration pricing or a skimming price strategy be used? A skimming price strategy might be appropriate where there are very few competitors.

Distribution: distribution might be quite selective until consumer acceptance of the product can be achieved.

Promotion: marketing efforts are aimed at early adopters, and seek to build product awareness and to educate potential consumers about the product.

Features: - 1. Costs are high 2. Slow sales volumes to start 3. Little or no competition - competitive manufacturers watch for acceptance/segment growth losses 4. Demand has to be created 5. Customers have to be prompted to try the product 6. Makes no money at this stage

2 Growth Stage If the public gains awareness of a product and consumers come to understand the benefits of the product and accept it then a company can expect a period of rapid sales growth, enter the “Growth Stage”. In the Growth Stage, a company will try to build brand loyalty and increase market share. Profits are driven by increased sales volume (due to growth in market share as well as an increase in the size of the overall market). Profits might also be driven by cost reductions gained from economies of scale, and perhaps more favourable market prices. Competition in the Growth Stage remains low, although new competitors are expected to enter the market. When competitors enter the market a company might be subject to price competition and increase its marketing expenditure.

Some of the considerations in the Growth Stage include:

Product improvement: product quality might be improved, additional features and support services added, and packaging updated.

Pricing: if consumer demand is high the price might be maintained at a high level.

Distribution: distribution channels might be added as consumer demand increases.

Promotion: promotion is aimed at a broader audience. A company might spend a lot of resources on promotion during the Growth Stage to build brand loyalty.

Features: - 1. Costs reduced due to economies of scale 2. Sales volume increases significantly 3. Profitability begins to rise 4. Public awareness increases 5. Competition begins to increase with a few new players in establishing market 6. Increased competition leads to price decreases

3 Maturity Stage When a product reaches maturity, sales growth slows and sales volume eventually peaks and stabilises. This is the stage during which the market as a whole makes the most profit. A company’s primary objective at this point is to defend market share while maximising profit. In this stage, prices tend to drop due to increased competition. A company’s fixed costs are low because it is has well established production and distribution. Since brand awareness is strong, marketing expenditure might be reduced, although increased marketing expenditure might be needed to retain market share and fight increasing competition. Expenditure on research and development is likely to be restricted to product modification and improvement, and perhaps research into improved production efficiency and product quality.

Some considerations for the mature product market include:

Product differentiation: increased competition in the mature product market means that a company must find ways to differentiate its product from that of competitors. Strong branding is one way to do this.

Pricing: prices may be reduced because of increased competition. Firms in the market should be careful not to start a price war.

Distribution: distribution intensifies and incentives may be offered to encourage preference to be given over competing products.

Promotion: promotion will focus on emphasising product differences and creating/maintaining a strong brand.

Features: - 1. Costs are lowered as a result of production volumes increasing and experience curve effects 2. Sales volume peaks and market saturation is reached 3. Increase in competitors entering the market 4. Prices tend to drop due to the proliferation of competing products 5. Brand differentiation and feature diversification is emphasized to maintain or increase market share 6. Industrial profits go down

4 Saturation and decline stage A product enters into decline when sales and profits start to fall. The market for that product shrinks which reduces the amount of profit available to the firms in the industry. A decline might occur because the market has become saturated, the product has become obsolete, or customer tastes have changed. A company might try to stimulate growth by changing their pricing strategy, but ultimately the product will have to be re-designed, or replaced. High-cost and low market share firms will be forced to exit the industry.

As sales decline, a company has three strategy options: · Hold: maintain production and add new features and find new uses for the product. Reduce the cost of manufacturing (e.g. move manufacturing to a low cost jurisdiction). Consider whether there are new markets in which the product might be sold. · Harvest: continue to offer the product, reduce marketing expenditure, and sell possibly to a loyal niche segment of the market. · Divest: Discontinue production, and liquidate the remaining inventory or sell the product to another firm.

Some considerations for a declining market include:

Product consolidation: the number of products may be reduced, and surviving products rejuvenated.

Price: prices may be lowered to liquidate inventory, or maintained for continued products.

Distribution: distribution becomes more selective. Channels that are no longer profitable are asked out.

Promotion: Expenditure on promotion is reduced for products subject to the Harvest and Divest strategies.

Features: - 1. Costs become counter-optimal 2. Sales volume decline or stabilize 3. Prices, profitability diminish 4. Profit becomes more a challenge of production/distribution efficiency than increased sales.

It is claimed that every product has a life cycle. It is launched; it grows, and at some point, may die. A fair comment is that - at least in the short term - not all products or services die. Jeans may die, but clothes probably will not. Legal services or medical services may die, but depending on the social and political climate, probably will not. Even though its validity is questionable, it can offer a useful 'model' for managers to keep at the back of their mind. Indeed, if their products are in the introductory or growth phases, or in that of decline, it perhaps should be at the front of their mind; for the predominant features of these phases may be those revolving around such life and death. Between these two extremes, it is salutary for them to have that vision of mortality in front of them. However, the most important aspect of product life-cycles is that, even under normal conditions, to all practical intents and purposes they often do not exist (hence, there needs to be more emphasis on model/reality mappings). In most markets the majority of the major brands have held their position for at least two decades. The dominant product life-cycle, that of the brand leaders which almost monopolize many markets, is therefore one of continuity. In the criticism of the product life cycle, Dhalla & Yuspeh state: ...clearly, the PLC is a dependent variable which is determined by market actions; it is not an independent variable to which companies should adapt their marketing programs. Marketing management itself can alter the shape and duration of a brand's life cycle. Thus, the life cycle may be useful as a description, but not as a predictor; and usually should be firmly under the control of the marketer. The important point is that in many markets the product or brand life cycle is significantly longer than the planning cycle of the organisations involved. Thus, it offers little practical value for most marketers.

Cash Flow and Fund Flow

Cash flow simply means a factual presentation of cash inflows and outflows. This will give a clear picture of cash and cash equivalents movement during a period of time. Cash flow statement shows the actual cash flow of a company. This summaries the data of cash or cash related activities only. On the other side fund flow is broader term which never confine to cash movements only but this will show the sources & application of funds and its movements over a period of time. The major key aspect of fund flow is its working capital presentation. Business operations can easily be analysed through pointing out the movements of working capital. The key decisions of management which affect capital structure can be planned by utilising data presented in fund flow statement through making a comparison of working and fixed capital which will enable progressive growth in prospective environment. Funds flow statements shows that where the funds have been generated & where they have been utilised. Thus a fund means current assets & currents liabilities of company. If current assets are more that current liabilities that working capital of a company will be increased & if current liabilities are more that current Assets it will be decrease. Thus fund flow shows the reason of change in working capital. This is a statement of sources & uses of application of funds. The sources are funds from operation, sale of fixed assets, issue of share capital & debenture, on operating receipts.

Management information system

Definition: {1} “An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities those were planned and executed.”

{2} “ It is a computer system designed to help managers plan and direct business and organizational operations.

{3} “ MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.

When information systems are designed to provide information needed for effective decision making by managers, they are called management information systems. MIS is a formal system for providing management with accurate and timely information necessary for decision making. The system provides information on the past, present and project future and on relevant events inside and outside the organization. It may be defined as a planned and integrated system for gathering relevant data, converting it in to right information and supplying the same to the concerned executives. The main purpose of MIS is to provide the right information to the right people at the right time. The Concept of management information systems originated in the 1960s and become the byword of almost all attempts to relate computer technology and systems to data processing in business. During the early 1960s, it became evident that the computer was being applied to the solution of business problem in a piecemeal fashion, focusing almost entirely on the computerization of clerical and record – keeping tasks. The concepts of management information system were developed to counteract such in efficient development and in effective use of the computer.

The MIS concept is vital to efficient and effective computer use in business of two major reasons:

[1] It serves as a systems framework for organizing business computer applications. Business applications of computers should be viewed as interrelated and integrated computer – based information systems and not as independent data processing job.

[2] In emphasizes the management orientation of electronics information processing in business. The primary goal of computer based information systems should be the processing of data generated by business operations.

An MIS provides the following advantages.

1. It Facilitates planning: MIS improves the quality of plants by providing relevant information for sound decision – making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.

2. In Minimizes information overload: MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.

3. MIS Encourages Decentralization: Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.

4. It brings Co ordination: MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organisation.

5. It makes control easier: MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost.

6. MIS assembles, process, stores, Retrieves, evaluates and disseminates the information.

Types of Information Management Systems

Document management system (DMS) The DMS is focused primarily on the storage and retrieval of self-contained electronic data resources in the document form. Generally, The DMS is designed to help the organizations to manage the creation and flow of documents through the provision of a centralized repository. The workflow of the DMS encapsulates business rules and metadata.

Content management system (CMS) The CMS assist in the creation, distribution, publishing, and management of the enterprise information. These systems are generally applicable on the online content which is dynamically managed as a website on the internet or intranet. The CMS system can also be called as ‘web content management’ (WCM).

Library management system (LMS) Library management systems facilitate the library technical functions and services that include tracking of the library assets, managing CDs and books inventory and lending, supporting the daily administrative activities of the library and the record keeping.

Records management system (RMS) The RMS are the recordkeeping systems which capture, maintain and provide access to the records including paper as well as electronic documents, efficiently and timely.

Digital imaging system (DIS) The DIS assists in automation of the creation of electronic versions of the paper documents such as PDFs or Tiffs. So created Electronic documents are used as an input to the records management systems.

Learning management system (LMS) Learning management systems are generally used to automate the e-learning process which includes the administrative process like registering students, managing training resources, creating courseware, recording results etc.

Geographic information system (GIS) The GIS are special purpose, computer-based systems that facilitate the capture, storage, retrieval, display and analysis of the spatial data.

Intrapreneurship

What is Intrapreneurship?

Intrapreneurship is the practice of entrepreneurship by employees within an organization.

Difference between an entrepreneur and an intrapreneur:

An entrepreneur takes substantial risk in being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur is an individual employed by an organization for remuneration, which is based on the financial success of the unit he is responsible for. Intrapreneurs share the same traits as entrepreneurs such as conviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it will reveal the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up his own business.

Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $3 billion.

Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take risk and creativity. An entrepreneur will be able to look at things in novel ways. He will have the capacity to take calculated risk and to accept failure as a learning point. An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the organization. Intrapreneurship is a novel way of making organizations more profitable where imaginative employees entertain entrepreneurial thoughts. It is in the interest of an organization to encourage intrapreneurs. Intrapreneurship is a significant method for companies to reinvent themselves and improve performance. In a recent study, researchers compared the elements related to entrepreneurial and intrapreneurial activity. The study found that among the 32,000 subjects who participated in it, five percent were engaged in the initial stages of a business start-up, either on their own or within an organization. The study also found that human capital such as education and experience is connected more with entrepreneurship than with intrapreneurship. Another observation was that intrapreneurial startups were inclined to concentrate more on business-to-business products while entrepreneurial startups were inclined towards consumer sales. Another important factor that led to the choice between entrepreneurship and intrapreneurship was age. The study found that people who launched their own companies were in their 30s and 40s. People from older and younger age groups were risk averse or felt they have no opportunities, which makes them the ideal candidates if an organization is on the look out for employees with new ideas that can be pursued.

Entrepreneurship appeals to people who possess natural traits that find start ups arousing their interest. Intrapreneurs appear to be those who generally would not like to get entangled in start ups but are tempted to do so for a number of reasons. Managers would do well to take employees who do not appear entrepreneurial but can turn out to be good intrapreneurial choices.

Organisation

What is An Organisation???

When a group of people work together to achieve specific target, the context in which they work is referred to as an Organisation. Organisations can be small, involving only a few people in one location or they can involve thousands of people scattered through out the world. They can be very simple in structure, or they can be extremely complex. What separates organizations from other activities is that organizations usually operate within a defined structure and have a socialization process that is determined by the people who control them. Organizations can also be defined in terms of the products and services they offer to consumers. For example, corporations such as Ford Motors and the American Ex-press Corporation provide us with both products and services. General Motors builds and sells cars while American Express provides us with credit cards and financial ad-vice. Each is an organization but they are vastly different in what they do. Another way to define an organization is by the particular roles individuals playing them. This type of definition implies that understanding what an organization is depends on knowing how and where individuals fit into the organization.

Definition of Organisation:

An organization is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment. The word itself is derived from the Greek word Organon meaning tool. It’s a “Social unit of people systematically arranged and managed to meet a need or to pursue collective goals on a continuing basis.” All organizations have a management structure that determines relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks. Organizations are open systems in that they affect and are affected by the environment beyond their boundaries.

An organization is defined by the elements that are part of it, its communication, its autonomy and its rules of action compared to outside events. In sociology "organization" is understood as planned, coordinated and purposeful action of human beings to construct or compile a common tangible or intangible product. Sociology distinguishes the term organization into planned formal and unplanned informal (i.e. spontaneously formed) organizations. By coordinated and planned cooperation of the elements, the organization is able to solve tasks that lie beyond the abilities of the single elements. The price paid by the elements is the limitation of the degrees of freedom of the elements. Advantages of organizations are enhancement, addition and extension. Disadvantages can be inertness and loss of interaction.

Role of organisation:

Most of us don’t realize the importance that organizations play in our lives, but they continually affect us, as you will see. Although there are many people who work alone, most of us work with others. We are usually conceived in the most basic of all organizations — the family. Our birth usually takes place in another organizational environment — the hospital. We are certainly affected throughout our lives by a large organizational structure called “government” that passes laws to keep us organized and collects taxes to pay for services. And, during our lifetimes, a majority of us spend our time studying, working, and playing in organizations. For example, most of our formal learning takes place in an educational organization, such as the University of Kolkata; we may work for organizations like Microsoft, KPMG, Proctor and Gamble Corporation, or the US Bank; and we play in organizations such as the YMCA, the tennis club, or the local softball league. Obviously, it is impossible to list all of the ways in which organizations affect us. It is important, however, for you to realize that organizations play a dominant role in our lives. If we were to ask, what single activity fills most people’s time more than anything else? The answer besides sleep for most is the dreaded four-letter word: WORK.

Organizational context, an idea:

The organizational context refers to the scope of an entity, such as

} parent organization (organization owning one or more entities)

} enterprise (an entire organization)

} division or department (a sub-organization within the overall organization)

} work unit (a sub-sub-organization)

} Work role (one person’s job or part of a job).

Management Strategy

How do we define the management strategy? The most common definition of management strategy can be: “Management strategy is a future oriented conception in which the relationship between the industry and the environment is described and it forms the guiding principles for the people in the industry for decision making.” It is obvious that the state of affairs with regard to the management strategy like the number of years for which the strategy has been planned, how minutely it has been described and for what level of people it forms the guiding principles etc., varies from industry to industry. However, it plays a fixed role towards the behaviour of each industry.

The problem of management strategy cannot be divided into formulation of strategy and the implementation of strategy. In the present day industry, particularly in the large industry, the formulation of strategy is no more the job of the strategy making staff only. As the diversification of jobs progresses and the operations also becomes more complicated. It can be considered that the formulation of strategy takes birth from the cooperative and joint working of all the members which constitute the organization in the industry.

The concept of management strategy The concept of management strategy is being used at least with two meanings. One is the strategy which results from the concrete behaviour. It points out to the chain of behaviours which are actually implemented. The people outside the organization can normally understand the strategy of this type. Another type of strategy is the conception for the future. This concern the broader plan related to the future of the industry as well as its operations.These two types of strategies may not necessarily always match. However, it is also true that the two types of strategies are mutually linked to each other. There is always some sort of conception in the background of any behavioural action. Further, various unforeseen matters and the new ideas also come into existence in natural manner and are linked to the behavoiur.The worthiness of management strategy is ultimately evaluated on the basis of result of a chain of actions. Therefore, it may, probably not be proper to evaluate the conceptual strategy on the face of it alone. However, the conceptual strategy plays a very important role in the organization. The concept provides a chance to guide the behaviour. Because of the existence of the concept, the behaviours change or new behaviours come into existence. Further, when all the people in an organization believe in the common concept, the behaviour as decided by different departments and the behaviour as decided at the time of any difference of opinion has a multiplying effect. In fact, it may be appreciated that the conceptual strategy is basically responsible for introducing, coordinating and synchronising the behaviour in the organization. The term management strategy can refer to the conceptual strategy.

In today’s society, various organisations like industry, hospitals and Government offices etc. are performing the activities with specific purposes. One has to adapt to the surrounding environment for the continuous sustenance of the organisational set up. However, the change in the present day social environment is very severe and is full of uncertainly.The long existence of the organisation itself as well as their further expansion cannot be accomplished just through the daily routine type decision making. In fact, it has become important to detect the opportunities and the threats from the changes and develop the capability to handle these opportunities and threats. Management strategy forms the key for such capabilities.Management strategy is applicable not only to the industry. It has become equally important for the Government offices, hospitals and schools. However, most of the study which has been carried out with regard to the management strategy deals with analysis of industry. Industry has to face very severe competition on day-to-day basis and the standards regarding the evaluation of its results are also very clearly defined.

Contents of Management Strategy The management strategy deals with relationship between industry and the environment. What types of decisions are required to decide this relationship? It is necessary to decide regarding the 4 areas mentioned below in order to determine the management strategy: [1] Definition of Domain[2] Operation Portfolio [3] Resource Development[4] Competitive Strategy

Definition of the Domain : First of all it is very important to decide what importance the future operations of an enterprise in order to decide the relationship between industry and environment. This also amount to drawing the long term composition of how the industry shall adapt itself to the environment. This is the definition of domain. Zone of survival as the definition of domain is the base for deciding the other definitions.It is said that the failure of Railways Industry in America was because of mistaken definition of domain. The American Railways Industry can be called as pilot representative of large industry. However, the Railway Industry thought that its work is only that of the railway operation rather that the transportation works. As a result, it failed to match the rapidly increasingly demand from the transportation sector.

Domain specifies the work area in which the operational activities of an enterprise are carried out or it is expressed as a concept covering all such operations. On the other hand, the definition of domain for the American industry relatively market oriented and it includes many elements which are close to the successful factors in the market. “IBM means Services” can be called as domain of IBM (the IBM operation is not to sell the machines but to sell the functions of the products).

Operation Portfolio : The operation portfolio is a table of operations or the overall structure while carrying out the operational activity in the industry. Normally, it is necessary to decide about the following two selections to determine the operation portfolio.[1] Which fields are to be included in the portfolio (deciding the composition of the portfolio).[2] How to handle the patterns given by the multiple numbers of operations (deciding the structure of portfolio).While deciding the operation portfolio, the attention of individual operation fields are important, but it is more important to consider how much total effect can generated through all the combinations of various operations.

Resource Development : Once the operation fields, which constitute the domain, have been decided, next it becomes important to decide about the necessary accumulation and distribution of resources required to meet the composition in each field. This composition is the resource development strategy.The management resource can be divided into substantive resources (human beings, articles, money) and the informative resources (technology, know-how, and brand image). In the case of substantive resources, it is the distribution which is more important than the accumulation of resources. A proper distribution matching the discriminate preferential order for every operational field is the key factor. On the other hand, it is the accumulation rather than the distribution which is more important in the case of information resources and its key factor is the organizational learning.

Competitive Strategy : Competitive strategy is the decision for establishing the competitive preferential order in each operational field. The basic topics in this connection are to understand the actual state of competition in the industry and market segment and the segment position of one’s own company as well as to come into competitive preferential order through the combination of management resources through this understanding. The competitive strategy is basically of three types, viz. cost leadership, discrimination and concentration.The above discussed four aspects are closely related to each other. Therefore, the coordination of four decisions becomes an important topic management strategy.

SWOT Analysis

The SWOT Analysis is one of several strategic planning tools that are utilized by businesses and other organizations to ensure that there is a clear objective defined for the project or venture, and that all factors related to the effort, both positive and negative, are identified and addressed. In order to accomplish this task, the process of SWOT involves four areas of consideration: strengths, weaknesses, opportunities, and threats. It should be noted that when identifying and classifying relevant factors, the focus is not just on internal matters, but also external components that could impact the success of the project.

A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

} Strengths: attributes of the person or company those are helpful to achieving the objective. } Weaknesses: attributes of the person or company those are harmful to achieving the objective. } Opportunities: external conditions those are helpful to achieving the objective. } Threats: external conditions which could do damage to the business's performance.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

If, on the other hand, the objective seems attainable, the SWOTs are used as inputs to the creative generation of possible strategies, by asking and answering each of the following four questions, many times:

} How can we Use and Capitalize on each Strength? } How can we Improve each Weakness? } How can we Exploit and Benefit from each Opportunity? } How can we Mitigate each Threat?

Ideally a cross-functional team or a task force that represents a broad range of perspectives should carry out the SWOT analysis.

Tourism and its link with other economic sector

The distinctiveness of tourism in global trade is that it ‘moves people to the product rather than transporting the product of the people,’ Tourism is also linked to other areas of the economy: agriculture, land and labour. Tourism not only creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is known as the multiplier effect which in its simplest form is how many times money spent by a tourist circulates through a country's economy. Money spent in a hotel helps to create jobs directly in the hotel, but it also creates jobs indirectly elsewhere in the economy. The hotel, for example, has to buy food from local farmers, who may spend some of this money on fertilizer or clothes. The demand for local products increases as tourists often buy souvenirs, which increases secondary employment. The multiplier effect continues until the money eventually 'leaks' from the economy through imports - the purchase of goods from other countries.

Tourism has a variety of economic impacts. Tourists contribute to sales, profits, jobs, tax revenues, and income in an area. The most direct effects occur within the primary tourism sectors --lodging, restaurants, transportation, amusements, and retail trade. Through secondary effects, tourism affects most sectors of the economy.

A simple tourism impact scenario illustrates. Let’s say a region attracts an additional 100 tourists, each spending Rs.100 per day. That’s Rs.10, 000 in new spending per day in the area. If sustained over a 100 day season, the region would accumulate a million rupees in new sales. The million rupees in spending would be distributed to lodging, restaurant, amusement and retail trade sectors in proportion to how the visitor spends the Rs.100. Perhaps 30% of the million rupees would leak out of the region immediately to cover the costs of goods purchased by tourists that are not made in the local area. The remaining Rs.700, 000 in direct sales might yield Rs.350, 000 in income within tourism industries and support 20 direct tourism jobs. Tourism industries are labor and income intensive, translating a high proportion of sales into income and corresponding jobs. The tourism industry, in turn, buys goods and services from other businesses in the area, and pays out most of the Rs.350, 000 in income as wages and salaries to its employees. This creates secondary economic effects in the region.

While hypothetical, the numbers used here are fairly typical of what one might find in a tourism economic impact study. A more complete study might identify which sectors receive the direct and secondary effects.

There are several other categories of economic impacts. For example:

1} Changes in prices -- tourism can sometimes inflate the cost of housing and retail prices in the area, frequently on a seasonal basis.

2} Changes in the quality and quantity of goods and services – tourism may lead to a wider array of goods and services available in an area (of either higher or lower quality than without tourism).

3} Changes in property and other taxes – taxes to cover the cost of local services may be higher or lower in the presence of tourism activity. In some cases, taxes collected directly or indirectly from tourists may yield reduced local taxes for schools, roads, etc. In other cases, locals may be taxed more heavily to cover the added infrastructure and service costs.

4} Economic dimensions of “social” and “environmental” impacts - There are also economic consequences of most social and environmental impacts that are not usually addressed in an economic impact analysis. These can be positive or negative. For example, traffic congestion will increase costs of moving around for both households and businesses. Improved amenities that attract tourists may also encourage retirees or other kinds of businesses to locate in the area.

A standard economic impact analysis traces flows of money from tourism spending, first to businesses and government agencies where tourists spend their money and then to:

1} other businesses -- supplying goods and services to tourist businesses,

2} households – earning income by working in tourism or supporting industries, and

3} government -- through various taxes and charges on tourists, businesses and households.

Ethnic Tourism

Ethnic tourism is "travel motivated by search for the first hand, authentic and sometimes intimate contact with people whose ethnic and /or cultural background is different from the tourists". Ethnic tourists are driven by the desire to see something different where curiosity is the ultimate factor. The travelers choose to experience first hand the practices of another culture, and may involve performances, presentations and attractions portraying or presented by indigenous communities. In a broader perspective, it includes cultural, heritage, anthropological, tribal, village and similar forms of tourism. Ethnic tourism, if properly planned and managed, can be promoted as sustainable form of tourism and can be utilized as a tool for the preservation and conservation of culture and heritage as well as poverty alleviation. India, rich with its cultural diversity, grand heritage and inimitable history, is a world famous cultural tourism destination. The focal point of India's attractiveness as a destination is it's diverse ethnicity.

Pilgrimage Tourism in India

India is a vast country, peopled with diverse and ancient civilizations, and its religious geography is highly complex. Over 80% of India's population practices Hinduism, the ancient indigenous religion of India which has a wide variety of forms and expressions. Muslims, concentrated mainly in north India, constitute about 10% of the Indian population. Other significant religious groups in India include Sikhs, Jains, and Christians. Buddhism is almost extinct in the land of its birth, but many exiled Tibetan Buddhists now make their home in India, including His Holiness the Dalai Lama. India's famed spirituality has made it a popular destination for spiritually-inclined travelers. The process of racial and cultural mixture that began in India 5000-10,000 years ago has been continuous into historical times. Although isolated from the rest of Asia by oceans on three sides and impassable mountain ranges to the north, India has experienced a near-constant influx of differing cultural influences, coming by way of the northwest and the southeast. India in the third millennium BC was inhabited in the tropical south by a people called the Dravidians, in the central and northeastern regions by aboriginal hill and forest tribes, and in the northwest by the highly advanced Indus Valley civilization known as the Harappan culture. The Harappan culture possessed a sophisticated religion called Vedism, which worshipped powerful gods such as Indra, the god of rain; Agni, the god of fire; and Surya, the sun god. During the millennia of the Harappan culture the religion of Vedism developed an increasingly complex form with esoteric rituals and magical chants, and these were later codified in the sacred Hindu texts known as the Vedas. The religion identified as Hinduism did not actually appear until the centuries preceding the Christian era. Hinduism is an aggregation of the religious beliefs and practices deriving from the Vedism. Adding to and further enriching this mix were the concurrently developing religions of Jainism and Buddhism. Indian culture has thus developed a fascinating collection of religious beliefs and customs.

The practice of pilgrimage in India is so deeply embedded in the cultural psyche and the number of pilgrimage sites is so large that the entire subcontinent may actually be regarded as one grand and continuous sacred space. Following the Vedic period the practice of pilgrimage seems to have become quite common, as is evident from sections of the great epic, the Mahabharata (350 BC), which mentions more than 300 sacred sites spanning the sub-continent. Hindus call the sacred places to which they travel tirthas, and the action of going on a pilgrimage tirtha-yatra. The Sanskrit word tirtha means river ford, steps to a river, or place of pilgrimage. In India all temples are considered sacred places and thus religious visitors to the temples may be described as pilgrims. For the purpose of our discussion, however, for a temple to be considered a true pilgrimage shrine it must have a long-term history of attracting pilgrims from a geographic area beyond its immediate region. Given this condition, the number of pilgrimage sites in India is still extremely large.

The primary intention of a pilgrim's visit to a holy site is to receive the darshan of the deity resident in the temple's inner sanctum or open-air shrine. The word darshan, difficult to translate into English, generally means the pilgrim having a sight and/or experience of the deity.

Some Religious sites of India:

Dwarka; Krishna temple of Dwarkadhish

Somnath; Shiva Jyotir linga temple

Ujjain; Mahakaleswar Jyotir linga Shiva temple

Sanchi; Buddhist stupa

Ajanta caves; 29 Buddhist, Hindu, Jain sacred caves

Ellora; Buddhist, Hindu, Jain caves and Grineshwar Jyotir linga

Mt. Abu; Jain temples

Pushkar; Brahma temple,

Ajmer; Shrine of Mu’in al-din Chishti

Amritsar; Hari Mandir

Govindval; Sikh temple

Anandpur Sahib Sikh temple

Vaishno Devi; cave of Kali, Lakshmi and Saraswati

Amarnath; Shiva cave

Leh; Buddhist monasteries

Kurukshetra; Brahma Sarovara

Devprayag; Raghunath Vishnu temple

Rishikesh; Laksman Jhula, Neela Kantha Mahadeva temple

Haridwar; Hari-ki-Pairi Ghat, numerous temples

Joshimath; Vasudeva temple

Badrinath; Badrinath temple and nearby five Badri temples

Kedarnath; Jyotir Linga Shiva temple

Yamnotri; source of holy Yamuna river

Gangotri; Goddess Ganga temple

Vrindavan; numerous beautiful Krishna temples

Allahabad; Sangam Bath river site

Varanasi / Banaras; numerous temples, ghats and pilgrimage circuits

Saranath; Buddhist holy place

Kushinagar; Holy site where Buddha passed away

Gaya; Vishnupada temple

Bodh Gaya; Site where Buddha attained enlightenment

Rajagriha / Rajgir; Vulture Peak Buddhist site

Parsanath; Jain temple

Baidyanath; Shiva Jyotir linga

Tarakeswar; Tarakanath temple

Navadip; Dhameswara Shri Chaitanya temple

Tarapith; Shakti Pitha temple

Calcutta; Kalighat temple and Dakshineshwar

Gauhati; Kamakhya Shakti temple

Puri; Jaganath temple

Tirupati; Govindaraja and Padmavathi temples

Tiruvanamalai; Mt. Arunachala and Tiruvanamalai temple

Swamimalai temple (near Kumbakonam)

Rameshvaram; Sri Ramananthaswami temple

Madurai area; temples of Minakshi

Kanya Kumari; Kumari Amman goddess temple

Trivandrum; Sri Padmanabhaswami Vishnu temple

Sravanabelagola; Gomateswara Jain shrine

Mysore; shrine of Baba Qalander Shah

Gokarna; Mahaballeswara Shiva temple and Ganapati Ganesh temple

Pandharpur; Vitthala Krishna temple

Bhimshankar; Shiva Jyotir linga

New Delhi; Islamic shrines of Kwaja Nizamuddin Aulia

Khajuraho; Jain and Hindu temples

Udipi; Krishna temple

Amarkantak; hill top temples and source of Narmada river

Gangasagarar / Sagar Island; Kapil Muni temple

Some suggestions to attract foreign tourists in India

1} Overseas publicity – Department of tourism and ITDC now participating in various tourism festivals in different countries allover the world to promote different tourism detonations in India. Simultaneously different states are also participating in these festivals in domestic and regional level to promote their states tourism.

2} Production of tourist literature – Different literatures should be published to advertise any particular destination. Different guide books, tour brochures, posters, folders need to be distributed to inform tourists about the countries reach tourism destinations.

3} Guide Training – Proper training programmes to be arranged for the guides and service providers to meet the need of foreign tourist. Guides should know different languages which will allow them to provide good service to the foreign tourists.

4} Collection of tourist statistics – Collection of tourist statistics and research of those statistics will help to find out the problems of foreign tourists and the ways to solve those problems.

5} Service under one roof – Coordination with air and train services with a view to facilitate both air and train journey and to make it comfortable in India. Such coordination will definitely help the tourists to get the best of the service. Such coordination is available in Europe which helps the tourist a lot.

6} Star Accommodations – India need more star category hotels in different destinations in the country. Presently one will find good accommodation mainly in cities but it also needs to be in the heart of the tourist destinations also.

7} Liaison with Govt. departments and private companies – There must be proper liaison between different Govt. departments responsible for providing facilities required by the tourists including informations in regard to commercial matters. Also there should be communications between the Govt. departments and travel agencies which would necessarily remain responsible for the detailed arrangements of tourists.

Steps taken by Govt. to promote tourism in India.

Tourism is the biggest industry in the world from the point of view of turnover. The capital investment in this industry is now even more than oil-industry. Many countries in Europe and Asia now completely depend on the income coming from tourism. Again being labour oriented industry, tourism generates maximum number of employment directly or indirectly.

In India, tourism is a late started industry. After the independence, the Govt. started taking plans to organize and develop the tourism destinations scattered all over the country. Now tourism in India is in such a position which is desirable countries economy. From the civil aviation to hotel industry, everywhere the infrastructural development is remarkable. After the reformation of Indian economy in 1990 with the open policy taken by the then Finance Minister Dr. Manmohan Singh, the Foreign Direct Investment (FDI) is now increasing gradually.

The steps taken by Govt. – 1} Plans for regional development with the help of tourism where other industries are not in their best.

2} Started one – window policy to boost the direct and as well as indirect investment in tourism.

3} Plans preservation of cultural, heritage and environment at tourist destinations to attract more tourists.

4} Development of infrastructure to meet the present and future needs of tourist.

5} Started different types of luxurious trains like Palace on Wheels, Royal Orient or Deccan Queens.

6} Developing basic infrastructure.

7} Started overseas offices at different countries to promote India as a tourism destination.

8} Proper coordination between the states and central tourism departments been ordered to develop the destinations.

9} Started different packages to attract for those destinations attracting more tourists.

10} Developed different Tourism Circuits like Golden Triangle or Buddhist Circuit to attract more tourists.

11} ITDC is now taking part in different tourism fairs all over the world.

12} Trying to provide best of the services in Air India and in Indian Rail.

13} Building accommodation in Govt. level and encouraging the private companies to invest in accommodation sector by giving them different tax benefits.

Travel brochure

By designing and creating a unique travel publication like brochure or guide book by any reputed graphic design agency based in the UK, the USA or India you can advertise your services and reach out to your clients in a more positive way. A travel publication includes general information related to the selected destination along with useful information about places to stay, prices, places to visit with plenty of appealing images. The first impression is usually the most lasting impression. And if your travel brochure makes a mark at the first glance, you stand a good chance of converting your visitor into your customer.

Guide Book: A guide book is a book for tourists or travelers that provide details about a geographic location, tourist destination, or itinerary. It is the written equivalent of a tour guide. It will usually include details, such as phone numbers, addresses, prices, and reviews of hotels and other lodgings, restaurants, and activities. Maps of varying detail are often included. Sometimes historical and cultural information is also provided. Different guide books may focus on different aspects of travel, from adventure travel to relaxation, or be aimed at travellers with larger or smaller travel budgets, or focus on the particular interests and concerns of certain groups, such as lesbian and gay singles or couples. Guide books are generally intended to be used in conjunction with actual travel, although simply enjoying a guide book with no intention of visiting may be referred to as "armchair tourism".

Brochure: A brochure or pamphlet is a leaflet advertisement. Brochures may advertise locations, events, hotels, products, services, etc. They are usually succinct in language and eye-catching in design. Direct mail and trade shows are common ways to distribute brochures to introduce a product or service. In hotels and other places that tourists frequent, brochure racks or stands may suggest visits to amusement parks and other points of interest. The two most common brochure styles are single sheet and booklet forms.

Features of Travel Brochures: The brochure plays a crucial role in attracting new customers, maintaining current ones and helping a business grow. Printed material represents the professional image of your company and relays a message that motivates a potential client to contact the business for more information. Most tourism related businesses are interested in having travel brochures to attract more customers. A well planned, well designed travel brochure can increase clientele. Travel brochures are an effective way to reach a target audience, so it is vital that the travel brochure is carefully designed and printed. A poorly designed travel brochure can drive away potential clients. Travel brochures are important because they help travelers locate and book exciting and exotic vacations. They provide travelers with the names and information on hotels, guesthouses and private rentals that make memorable vacation experiences. A well designed travel brochure will “sell” potential visitors their ideal vacation by highlighting a country’s best features. Such features include climate, recreational facilities, shopping, landmarks, historical features and distinct geographical locations. By using brief, descriptive summaries and pictures, ideal travel brochure can be designed. Some of the important features in a travel brochure are:

History: The area’s first known inhabitants, explorations and invasions, when the area was settled, achieved independence, the influence of wars, and cultural information are included under this heading.

Physical features: The main regions, major features, description of cities, any mountains or bodies of water.

Political features: Population density per square mile, the capital city and a list of the largest cities and their respective populations are main political features. Include the flag of the country, its coat of arms, the currency used and a list of the basic monetary units. The ancestry and ethnic diversity of the country are good points to include.

Language(s): Include the national language, other languages widely spoken, local dialects and a few helpful phrases.

Travel and Communication: Popular modes of transportation, the names of well known roads and highways should be listed. Popular radio and television stations can be listed along with a listing of popular shows.

Accommodations: Describe the types of accommodations available in the area. Include international chains, local favorites, discount hotels, private rentals, guesthouses, bed and breakfasts and hostels.

Culture: Culture is one of the most important aspects of a location and is widely overlooked. The area’s architecture, visual and performing arts, general information about religions, traditional clothing and what to wear when visiting certain areas are all very important facts to include in a brochure.

Recreation List: Popular sports and pastimes enjoyed in the area. Include all public and private recreational and entertainment facilities. Mention historical sites, sporting events, plays, festivals, parades and other celebrations.

Food List: the typical foods and beverages available, as well as the local delicacies and traditional foods. Be sure to include a section on where to find international and continental cuisine as well as chain restaurants.

Places of interest: It is important to mention major tourist attractions and places of interest. Include anything from museums to mountains in a collection of well known places worth visiting, and some little known places of interest.

Climate: The climate includes the high and low temperatures, average annual rainfall and the best and worst time to visit for particular weather.

Hotel Classification : The STAR Categories

Introduction : Historically, hotel classification systems were developed to ensure safe and reliable lodging and food for travellers at a time when very few such trustworthy establishments existed. With the unprecedented growth of international tourism in the past fifty years, during which hospitality has reach the status of a mature industry, the focus has moved from consumer protection (generally guaranteed by national regulations and legislation) to consumer information. Today, standardization and competitive marketing of hotel services to foreign customers and tourist professionals have emerged as driving forces for instituting a local or national hotel classification system.

Standards of hotel classification : Many countries allow various classification systems for hotels in accordance to chain name and type of hotel, however, there is no international classification which has been adopted. There have been attempts at unifying the classification system so that it becomes an internationally recognized and reliable standard but large differences exist in the quality of the accommodation and the size and design of the accommodation. Food services, entertainment, view, room variations such as size and additional amenities, spas and fitness centers and location are also vital in establishing a standard. As a rough guide:

A 1-Star hotel provides a limited range of amenities and services, but adheres to a high standard of facility-wide cleanliness.

A 2-Star hotel provides good accommodation and better equipped bedrooms, each with a telephone and attached private bathroom.

A 3-Star hotel has more spacious rooms and adds high-class decorations and furnishings and color TV. It also offers one or more bars or lounges.

A 4-Star hotel is much more comfortable and larger, and provides excellent cuisine (table d'hote and a la carte), room service, and other amenities.

A 5-Star hotel offers most luxurious premises, widest range of guest services, as well as swimming pool and sport and exercise facilities.

The Official Hotel Guide (published in the US, and followed world wide) has its own classification scheme that ranks hotels in nine categories as (1) Moderate Tourist Class, (2) Tourist Class, (3) Superior Tourist Class, (4) Moderate First Class, (5) Limited Service First Class, (6) First Class, (7) Moderate Deluxe, (8) Deluxe, and (9) Superior Deluxe

In INDIA : In May 2003, after much deliberation the Department of Tourism (DoT) renewed the 1955 initiated Guideline for the Classification of Hotels. This move was aimed at ensuring that hotels in India meet international standards in services and facilities. Although the five-star and four-star hotels in India have been able to meet international standards, some of them do not figure anywhere on the global map. On the other hand, hotels in the UK and the US that have been accredited as four-star and five-star are globally recognised.

With the dramatic development of domestic and international travel in the past fifty years, various public and private-sector interests periodically raise the question of how hotel ratings compare across the world. There is no real international hotel ratings system. Therefore, variations between countries' standards naturally exist. For example, in France the government conducts a star rating system ranging from one-star for simple accommodation to four-star for a deluxe hotel. Hotels in Germany and some Scandinavian countries have a one- to five-star rating, which the government reviews every three years, while in Britain the Automobile Association, Royal Automobile Club and English Tourist Board have agreed to a standardised hotel rating system. In South America, hotels are typically granted a star ranking from the government tourism ministry at the date of the hotel's opening, which may not be modified as the property ages.

The star classifications of the hotels are a function of the services provided by them. But, the present star category classification norms in India have been so haphazard that hotels claim to be six-star or seven-star, when the global norm classifies hotels as one star at the lower end and five-star deluxe at the luxury end. The reason for differences between the global and the Indian norms is in the standard of services being offered by the hotels in India. As seen in the past few years, most of the luxury chains have started renovating their property, as also upgrading existing services to match the new benchmarks (services offered by international entrants such as Radisson, Hyatt and Intercontinental). With the entry of the foreign hotels, these norms in India would have to be reset to reflect the new services offered by foreign chains, which follow a standard set of service offerings across its property. But at the same time the hotels need to upgrade their services with changing scenario.

One-Star Hotels: Hotels in this classification are likely to be small and independently owned, with a family atmosphere. Services may be provided by the owner and family on an informal basis. There may be a limited range of facilities and meals may be fairly simple. Lunch, for example, may not be served. Some bedrooms may not have an en suite bath/shower rooms. Maintenance, cleanliness and comfort should, however, always be of an acceptable standard.

Two-Star Hotels: In this classification hotels will typically be small to medium sized and offer more extensive facilities than at the one-star level. Some business hotels come into the two-star classification and guests can expect comfortable, well equipped, overnight accommodation, usually with an en-suite bath/shower room. Reception and other staff will aim for a more professional presentation that at the one-star level, and offer a wider range of straightforward services, including food and drink.

Three-Star Hotels: At this level, hotels are usually of a size to support higher staffing levels, and a significantly greater quality and range of facilities than at the lower star classifications. Reception and the other public rooms will be more spacious and the restaurant will normally also cater to non-residents. All bedrooms will have an en suite bath and shower rooms and offer a good standard of comfort and equipment, such as a hair dryer, direct dial telephone and toiletries in the bathroom. Besides room service, some provisions for business travellers can be expected.

Four-Star Hotels: Expectations at this level include a degree of luxury as well as quality in the furnishings, decor and equipment, in every area of the hotel. Bedrooms will also usually offer more space than at the lower star levels, and well designed, coordinated furnishings and decor. The en-suite bathrooms will have both bath and fixed shower. There will be a high enough ratio of staff to guests to provide services like porterage, 24-hour room service, laundry and dry-cleaning. The restaurant will demonstrate a serious approach to its cuisine.

Five-Star Hotels: Here you should find spacious and luxurious accommodation throughout the hotel, matching the best international standards. Interior design should impress with its quality and attention to detail, comfort and elegance. Furnishings should be immaculate. Services should be formal, well supervised and flawless in attention to guests' needs, without being intrusive. The restaurant will demonstrate a high level of technical skill, F&B production to the highest international standards. Staff will be knowledgeable, helpful, well versed in all aspects of customer care and combining efficiency with courtesy.

Luxury Trains

Palace On Wheels : This is a tourist train operated by IR. It covers the route Delhi - Jaipur - Chittorgarh/Udaipur - Sawai Madhopur - Jaisalmer - Jodhpur - Bharatpur/Agra - Delhi, including visits to historical sites, palaces, wildlife sanctuaries, etc. along the way, taking about 8 days in all. Fares range from $425 per person per day for single occupancy, going down with double ($300) or triple occupancy ($250). The Palace On Wheels initially ran on MG, with coaches dating back to 1917. After the original rake was deemed unsuitable for passenger service, a new MG rake was brought into use, with an unusual all-white (or ivory) livery. When the Palace on Wheels was converted to a broad-gauge train in 1992, this rake was repainted blue and used for the Royal Orient.

Royal Orient : The Royal Orient was started as a joint effort between the state of Gujarat and WR some time in 1994-95. The itinerary is Chittorgarh - Udaipur - Palitana - Somnath - Diu - Ahmedpur - Mandvi - Sasangir National Park - Junagarh - Ahmedabad - Jaipur - Delhi, taking 7 days. Fares range from $350 per person per day going down with double occupancy ($200) and triple occupancy ($175). The rake used was the replacement rake for the ageing Palace on Wheels rolling stock (which ran the POW service from 1992 to about 1994, when the BG rake for POW was introduced). This new ICF-built replacement rake was rendered useless until Gujarat Tourism and WR decided to run it as the Royal Orient. The livery was changed to a blue scheme. It originates from Delhi Cantt MG station and traverses a fair part of Rajasthan and Gujarat. The Royal Orient rake is maintained at the WR workshops at Ajmer.

Darjeeling Himalayan Railway

The Darjeeling railway was conceived by Franklin Prestage, the Agent or General Manager of the Eastern Bengal State Railway. Tea estates had opened in the Darjeeling area in the 1870s, and the newly opened Calcutta-Siliguri line saw considerable traffic. Prestage proposed in 1878 to build a 2' NG railway line on the Hill Cart Road. The original line of the DHR was constructed between 1879 and 1885 and was originally named the Darjeeling Steam Tramway Co. The DHR was actually opened to traffic in 1881, when it became the Darjeeling Himalayan Railway Co. The ruling gradient is 1:16, and the sharpest curve is of radius 18m. There are five zig-zags (switchbacks) and four full loops, of which two are double spirals. Services are operated today with several ancient steam locos kept alive by the Tindharia Works. The working locos date from as far back as 1899 and 1904; the newest ones are from 1925. A couple of narrow-gauge diesel locos have been pressed into service on the DHR in recent years.

The crew for the trains in the old days generally consisted of a driver, a fireman, a coal breaker, a coal passer, and two sanders who stood at the front of the engine. Cargo hauled included rice and tea, other mixed freight, and passengers from Siliguri (500' altitude) to Ghum (7407'), and finally to Darjeeling (7000') over 51 miles (82km). The DHR locos typically racked up 1200 to 1300 miles in each month of service.

Originally, the DHR had two branches. The Kishanganj branch, running west-south-west of Siliguri, was 107km long and was converted to MG and connected to the NER system at Barsoi during the construction of the Assam Rail Link in 1948. The Kishanganj branch used 'A' class Pacifics, none of which survive today. The other branch was the Kalimpong Road (Gelkhola) branch, following the Teesta valley, 36km long, which was closed in 1950 following floods that swept away the trackbeds.

Currently, it operates three routes

Kurseong - Darjeeling - Kurseong (daily)

New Jalpaiguri - Darjeeling - New Jalpaiguri (daily)

New Jalpaiguri - Silliguri Jn. - New Jalpaiguri

Shorter excursions between Ghum and Darjeeling are run often, known as the 'Joy Train' services and intended for tourists. These are always steam-hauled, while the other services are sometimes steam-hauled and sometimes diesel-hauled these days.

Indian Railway Zones

Indian Railways is divided for administrative convenience into several regional railways. Until recently there were 9 zones, and this structure had not changed much for four decades. Recently, 7 new zones have been created, giving a total of 16.

The nine older railway zones and their headquarters are:

1} Northern Railway (NR) Delhi 2} North Eastern Railway (NER) Gorakhpur 3} Northeast Frontier Railway (NFR, sometimes NEFR) Guwahati 4} Western Railway (WR) Mumbai 5} Southern Railway (SR) Chennai 6} South Central Railway (SCR) Secunderabad 7} South Eastern Railway (SER) Kolkata 8} Eastern Railway (ER) Kolkata 9} Central Railway (CR) Mumbai

The 7 new zones and their headquarters are:

10} South Western Railway (SWR) Hubli 11} North Western Railway (NWR) Jaipur 12} West Central Railway (WCR) Jabalpur 13} North Central Railway (NCR) Allahabad 14} South East Central Railway (SECR) Bilaspur 15} East Coast Railway (ECoR) Bhubaneshwar 16} East Central Railway (ECR) Hajipur

Indian Rail: The History

The novel plan for the introduction of a rail system, transformed the whole history of India. This innovative plan was first proposed in 1832; however no auxiliary actions were taken for over a decade. In the year 1844, private entrepreneurs were allowed to launch a rail system by Lord Hardinge, the Governor-General of India. By the year 1845, two companies were formed and the East India Company was requested to support them in the matter. On 22nd Dec' 1851, the first train came on the track to carry the construction material at Roorkee in India. With a passage of one and a half years, the first passenger train service was introduced between Bori Bunder, Bombay and Thane on the providential date 16th Apr' 1853. This rail track covered a distance of 34 kms (21 miles). Ever since its origin, the rail service in India never turned back. In 1880, the rail network acquired a route mileage of about 14,500 km (9,000 miles), mostly working through Bombay, Madras and Calcutta (three major port cities). By 1895, India had started manufacturing its own locomotives. In no time, different kingdoms assembled their independent rail systems and the network extended to the regions including Assam, Rajasthan and Andhra Pradesh. In 1901, a Railway Board was formed though the administrative power was reserved for the Viceroy, Lord Curzon. In 1907, most of the rail companies were came under the government control. Subsequently, the first electric locomotive emerged in the next year. In 1920, the Government captured the administration of the Railways. On the occasion of India's Independence in 1947, 42 independent railway systems with 32 lines were merged in a single unit and were acknowledged as Indian Railways and 6 zones were formed in 1952. With 1985, the diesel and electric locomotives took the place of steam locomotives. In 1995, the whole railway reservation system was rationalized with computerization.

Classification of markets

A market is a place where buyers and sellers interact. A market is simply a combination of buyers and sellers. These two groups can meet in a physical place (a shop, for example) or can meet across miles, aided by telecommunications (increasingly, the internet). They meet to buy and sell goods or services. The term “Market” is simply a short hand for “any place or situation where two or more people meet to exchange goods or services”. Basically there are four types of markets whose classification is based on the use of the products that these markets offer, the different types of which are listed and explained below:

(1) Consumer markets (2) Business-to-business markets (3) Institutional markets (4) Reseller markets

Consumer markets are those markets where general consumers buy products and services for personal or household use. For example pens, jeans, jewellery, pizza etc. As for business-to-business markets, these markets sell products and services to businesses for running their operations. For instance, office supplies or furniture for office use etc. The third type that is the institutional market includes a wide array of profit and non-profit organizations – these institutional markets provide goods and services for the benefit of the society. Such as markets offering medicines for hospitals or computers for universities could be classified as institutional market. The last type of market is the reseller market that is also called an intermediary. These markets consist of the members of the channels of distribution such as wholesalers, retailers, dealers etc, which are mutually called resellers and operate the reselling markets. Market has been classified on the basis of differences among them.

Markets on the basis of area covered are classified into:

(a) Local markets: The local market is a place for the purchase and sale of different goods within the city. The buyers and sellers of one city assemble to buy and sell. (b) Regional markets: It consists of many cities and districts of a particular area. The buyers and sellers of different villages, cities and districts assemble to buy and sell the different commodities. (c) National markets: It consists of the whole area of country. The buyers and sellers from all over the country take part in buying and selling.d) International markets: It consists of the whole world. The buyers and sellers from the whole world meet and exchange their foods and services. The commodities can be bought and sold at different places in the world.

Keeping in mind the positions of sellers in the market, the markets are categorized as:

(1) Primary market: It is the market where in the farm products are sold by the primary producers to the wholesalers or their agents. (2) Secondary market: It is the market where wholesalers sell goods to the retailers for further selling it to the consumers. (3) Terminal market: It is the market where the purchase is finalized by the consumers from the retailers.

On the basis of volume of business transacted, the markets are classified into:

(1) Wholesale market: As the name indicates it is the market wherein the goods are sold in bulk to the dealers. (2) Retail market: In case of retail market, the goods are sold in a small quantity directly to the consumers.

On the basis of nature of transactions, the market is classified as:

(1) Spot market: The spot market is the cash market. (2) Future market: In this market the purchase or sale of the commodity calls for delivery some months in the future. Actual delivery of goods is rarely made.

Human Resource Development

What is the Definition of Human Resources? William R. Tracey, in The Human Resources Glossary defines Human Resources as: “The people that staff and operate an organization … as contrasted with the financial and material resources of an organization.” Human Resources is also the organizational function that deals with the people and issues related to people such as compensation, hiring, performance management, and training. A Human Resource is a single person or employee within your organization.

What Is Human Resource Development (HRD)? Human Resource Development is the frameworks for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, succession planning, key employee identification, tuition assistance, and organization development. A definition of HRD is "organized learning activities arranged within an organization in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organization". HRD includes the areas of training and development, career development, and organization development. This is related to Human Resource Management -- a field which includes HR research and information systems, union/labor relations, employee assistance, compensation/benefits, selection and staffing, performance management systems, HR planning, and organization/job design. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.

What Is the Human Resource Department? Departments are the entities organizations form to organize people, reporting relationships, and work in a way that best supports the accomplishment of the organization's goals. Departments are usually organized by functions such as human resources, marketing, administration, and sales. But, a department can be organized in any way that makes sense for the customer. Departments can also be organized by customer, by product, or by region. The forward thinking human resource department is devoted to providing effective policies, procedures, and people-friendly guidelines and support within companies. Additionally, the human resource function serves to make sure that the company mission, vision, values or guiding principles, the company metrics, and the factors that keep the company guided toward success are optimized.

What Is Human Resource Management? Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.