Essays for Civil Services Exams

"Carefully selected  English Essays written in a logical manner, to help streamline thought process of the serious minded civil service aspirants."

ESSAY: ONE

On-line Retail

There has been a sudden spurt in on-line sales , thus sending  a shudder down the spine of the conventional retail businesses. The trend had been gradually picking up, but the festive season this year has nose dived sales across markets. On-line buying on portals like Amazon, Flipkart, Snapdeal etc., has picked up and caught the buyer’s attention. 

Heavy Discounts offered by these on-line companies have made competition cry foul. But  then with opening of the economy, ushering in of the reform processes and with the advent of internet, this was bound to happen. The  retail supply chain has been curtailed and costs cut. Prime space rentals are no longer a pre-requisite for the retail business to reach out to their global customers. The global reach has further transcended all geographical boundaries and opened up larger markets.

Increasing on-line access through cheap smart phones has given the consumer to buy at his finger tips.The inexorable progress in technology is bound to change the face of retailing in India .

The power of internet has leveled the playing field, giving equal opportunity to small and big players as well as to the rural and urban consumer to satiate their buying appetite.

The ease of payment coupled with alternative modes of payment has made the buying experience all the more exciting. The credit and debit cards galore along with tempting pay-back offers.

The wide range of goods and services  that are on offer is mind boggling. They range from cars, mobiles, furniture, watches, dresses to salon and matrimonial services . They provide you with door-step delivery from the comfort of your house. You can have your favorite pizza delivered steaming hot and your movie and flight tickets booked and received on-line.

However, the picture, is not all that rosy as it appears to be. The internet is yet to penetrate the mass consumer  base. It is prone to disruption, breakdown, slow speed, hacking and cyber-crimes. It also has a nuisance value and can be addicting.  Cyber-tracking may cause irritating pop-ups  that can be irksome.

Another aspect still impacting consumer behavior are the traditional practices. Families still prefer going shopping in groups. They would prefer to feel the goods and even try them on before paying for the same.  Such shopping experiences are eagerly awaited by the traditional families. Festive shopping assumes great significance.

A number of fake products have flooded the markets, thereby eroding the faith of consumers on on-line shopping. Failed deliveries, delays and damaged goods etc are some of the other irritants keeping the shoppers away.

From the Government’s concern is the issue of regulating and monitoring tax evasion. Some regulatory measures are soon expected tat may dampen the enthusiasm.

Never the less, No one can stop an idea whose time has come. On-line shopping is bound to be the next big thing. The businesses need to gear themselves up for the change from the brick and mortar mode to the click and click mode sooner or later and all other support systems will have to gear themselves up to fall in line with online experience. Smart cities, will further beef up the scenario in times to come.

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DO WE NEED FDI IN RETAIL?

                

Given the debate that’s raging over opening the retail sector to foreign direct investment, here are the arguments in favour and against it.

      FOR:

1.      Huge investments in the retail sector will see gainful employment opportunities in agro-processing, sorting, marketing, logistics management and front end retail.

2.      At least 10 million jobs will be created in the next three years in the retail sectors.

3.      FDI in retail will help farmers secure remunerative prices by eliminating exploitative middlemen.

4.      Foreign retail majors will ensure supply chain efficiencies.

5.      Policy mandates a minimum investment of $100 million with at least half the amount.

6.      This will have a salutary impact on food inflation from efficiencies in supply chain. This is also because food, which perishes due to inadequate infrastructure, will not be wasted.

7.      Sourcing of a minimum of 30% from Indian micro and small industry is mandatory. This will provide the scales to encourage domestic value addition and manufacturing, thereby creating a multiplier effect for employment, technology upgradation and income generation.

8.      A strong legal framework in the form of the Competition Commission is available to deal with any anti-competitive practices, including predatory pricing.

9.      There has been impressive growth in retail and wholesale trade after China approved 100% FDI in retail. Thailand has experienced tremendous growth in the agro-processing industry.

10.  In Indonesia, even after several years of emergence of supermarkets, 90% of fresh food and 70% of all food is still controlled by traditional retailers.

11.  In any case, organized retail through Indian corporates is permissible. Experience of the last decade shows small retailers have flourished in harmony with large outlet

AGAINST:

1.      Move will lead to large-scale job losses. International experience shows supermarkets invariably displace small retailers. Small retail has virtually been wiped out in developed markets like the US and in Europe. South East Asian countries had to impose stringent zoning and licensing regulations to restrict growth of supermarkets after small retailers were getting displaced. India has the highest shopping density in the world with 11 shops per 1,000 people. It has 1.2 crore shops employing over 4 crore people; 95% of these are small shops run by self-employed people.

2.      Global retail giants will resort to predatory pricing to create monopoly/oligopoly. This can result in essentials, including food supplies, being controlled by foreign organizations.

3.      Fragmented markets give larger options to consumers. Consolidated markets make the consumer captive. Allowing foreign players with deep pockets leads to consolidation. International retail does not create additional markets, it merely displaces existing markets.

4.      Jobs in the manufacturing sector will be lost because structured international retail makes purchases internationally and not from domestic sources. This has been the experience of most countries which have allowed FDI in retail.

5.      Argument that only foreign players can create the supply chain for farm produce is bogus. International retail players have no role in building roads or generating power. They are only required to create storage facilities and cold chains. This could be done by governments in India.

6.      Comparison between India and China is misplaced. China is predominantly a manufacturing economy. It’s the largest supplier to Wal-Mart and other international majors. It obviously cannot say no to these chains opening stores in China when it is global supplier to them. India in contrast will lose both manufacturing and services jobs.

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IIFT ASPIRANTS-Note!!

      ADVANTAGES OF AN

 INTERNATIONAL CAREER

1.     Generous expatriate package

2.     Bonus plans and share options

3.     Employment ‘insurance policy’

4.     Global tax and financial coaching support

5.     Excellent medical care and support

6.     Strong expatriate network

7.     Educational assistance for children

8.     Rest and relaxation travel funds

9.     Strong communication links via internal newsletters and international job adverts

10.                        Management development courses

11.                        Cultural briefings

12.                        Family support

13.                        Strong succession planning for the top 300 managers

14.                        Career counseling and management

15.                        Special courses at Cable & Wireless College

16.                        HR support from six months before the assignment ends

17.                        Redeployment ‘grace period’ of 12 weeks

18.                        HR contact throughout redeployment

19.                        Availability of external counselors.

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IIFT ASPIRANTS-CHECK OUT!!

ATTRIBUTES REQUIRED OF AN
INTERNATIONAL MANAGER

SENSITIVITY TO DIFFERENT CULTURES:

1.      Open approach to other cultures

2.      Cultural awareness and sensitivity

3.      Interest in international business

ADAPTABILITY TO NEW SITUATIONS:

1.      Ability to cope with unstructured and ambiguous situations

2.      Flexibility in thinking

3.      Communication and relationship skills

4.      Language skills and aptitude for learning new languages

PEOPLE ORIENTATION:

1.      Empathic behavior

2.      Interpersonal sensitivity and listening skills

3.      Assertiveness

4.      Ability to work in international teams

5.      Negotiation skills

6.      Leadership style

STRESS RESISTANCE:

1.      Self-confidence

2.      Effective coping style

SELF-RELIANCE

1.      Ability to make decisions and to operate independently.

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INDUSTRY POLICY UPDATES – NOVEMBER 2011

              A performance update  of different industrial sectors in India and expectations. Keep a watch on the winter Parliamentary sessions, to know more!!

1.   AVIATION

POLICY: Allow foreign airlines to pick up stakes in India’s airlines.(Industry expectation)

STATUS: The industry ministry has proposed allowing foreign airlines to own up to 26% in domestic airlines but aviation ministry wants foreign ownership to be capped at 24%. A cabinet note was circulated for inter-ministerial consultations in the second week of November.

2.    BANKING

POLICY: Legislate the Banking Laws (Amendment) bill to empower the Reserve Bank of India to supersede banks’ boards and align the voting rights of foreign shareholders in banks to their equity holdings.(Industry Expectation)

STATUS: The government introduced the bill in the Lok Sabha in March 2011, but the standing committee on finance is yet to submit report.

3.    DIRECT TAXATION

POLICY: Introduce the direct taxes code to overhaul archaic income tax laws, which among other things will alter slabs, remove exemptions. (Expectations)

STATUS: Bill introduced in Lok Sabha in 2010; Standing Committee on finance yet to submit report.

4.    INDIRECT TAXATION

POLICY: Introduce a uniform goods and services tax that will dramatically alter the indirect tax structure to make it more efficient. (Expectations)

STATUS: Constitution Amendment Bill introduced in Lok Sabha in March 2011; Standing Committee on finance yet to submit report, consensus eludes state governments.

5.    INSURANCE

POLICY: Raise the limit for foreign direct investment in the insurance sector to 49% from 26%.(Expectation)

STATUS: The government introduced the amendment bill in the Rajya Sabha in 2008, but the standing committee on finance is yet to submit its report.

6.    LAND ACQUISITION

POLICY: Unveil a clearly defined policy on land acquisition. (Expectation)

STATUS: The government has unveiled a draft bill for public debate and is expected to introduce it in Parliament in the winter session.

7.    PENSION FUNDS

POLICY: Legislate the Pension Fund Regulatory and Development Authority bill to pave the way for giving millions of people social security by investing long-term household savings.

STATUS: The government introduced the bill in the Lok Sabha in March.The standing committee on finance has submitted its report to Parliament and the cabinet has recently approved  some of its recommendations, such as 26% foreign direct investment. The government is to introduce the amended bill in Parliament’s winter session.

8.    RETAIL

POLICY: Allow foreign direct investment in multi-brand retail outlets. (A development that is being closely watched by International players in Retail)

STATUS: The industry ministry and secretaries’ panel have proposed allowing foreign firms to hold up to 51% in multi-brand retail, with conditions. The cabinet note was circulated for inter-ministerial consultations in the second week of November.

9.    EMPLOYMENT

POLICY: Unveil a comprehensive national manufacturing policy with the hope of creating 100 million jobs over the next 15 years.

STATUS: Last month, the cabinet approved the policy, which sets the ground for the creating of mega-industrial cities. The first seven of these cities will come up along the proposed 1483-km long Delhi-Mumbai Industrial Corridor.

10.           TELECOM

POLICY: Draft a wide-ranging national telecom policy.( Expectation)

STATUS: Last month, the telecom ministry unveiled the draft policy, which proposes to do away with roaming charges, treat the entire nation as one telecom zone, set the ground for a market-oriented regime for scandal-hit spectrum allocation and provisions for telecom firms to exist.

11.           MINING

POLICY: Legislate a Mines and Minerals (Development and Regulation) bill defining the obligations of mining companies for displaced people. (Expectation)

STATUS: In September, the cabinet approved this bill, which says how much profit and royalty companies must share with project-affected people. The government is expected to introduce the bill in Parliament in the winter session.

12.           CORPORATE TAKEOVERS

POLICY: Introduce a new takeover code aimed at overhauling India’s corporate acquisition regime. (Expectation)

STATUS: In July, the Securities and Exchange Board of India announced a new takeover code, increasing the threshold for an open offer to 25% from 15% and the mandatory offer requirement to 26% from 2011

13.           MICRO FINANCE

POLICY: Set up a regulatory regime for micro-finance institutions in the wake of a spate of suicides linked to alleged coercive methods adopted by certain firms to recover loans. (Expectation)

STATUS: In July, the government unveiled a draft Microfinance Institutions Bill that recommends granting the Reserve Bank of India sweeping powers to regulate these firms. The government is expected to introduce the bill in Parliament in the winter session.

14.           FUEL

POLICY: Free the pricing of petroleum products from political and bureaucratic interference. (Expected)

STATUS: In June last year, the government allowed oil companies the freedom to fix retail prices of petrol based on crude oil prices movements. But the government still controls the prices of diesel, kerosene and LPG.

15.           BANKING

POLICY:  Grant licenses to new private sector banks. (Expected)

STATUS:  In August, the Reserve Bank of India unveiled draft license guidelines for new private banks, including that they must have a minimum net worth of Rs. 500 crore.

16.           INTEREST RATES

POLICY: Deregulate the savings bank rate and raise the rates on government administered savings scheme. (Expected)

SAVINGS: Last month, the Reserve Bank of India allowed banks to fix their savings interest rates. Some banks have already raised this rate to 6% from the earlier central bank-determined rate of 4%. Last week, the government raised interest rates on a range of popular post-office saving schemes, including the public provident fund and national savings certificates.

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Times of India, August 30, 2005

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Writing Winning Essays, Indian Express Nov 21, 2007

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