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		'Article' => array(
			'id' => '522',
			'article_category_id' => '42',
			'title' => 'Flat In Festival (Nepal Stock Market Review For 25 September To 25 October, 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="232" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram.jpg" style="width: 188px; height: 232px;margin:10px;padding:10px;" vspace="5" width="188" />The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session. The benchmark Nepse index plummeted 3.59 points or 1.09% to close at 327.99. The highest point during review period was on 12 October with 334.49 while the lowest was on 23 October with 326.42. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Normally, the festival season causes outflow of money from the stock market. However, this year it was not so. Many companies have already declared their earnings and announced the dividend rates while others are preparing to do so. The book closing days are also coming around for the AGMs. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">All these are making the investors to heed the market movement more closely. Investors are dismayed at the delay in the operation of CDS and Clearing Ltd. the Commission for the Investigation of Abuse of Authority (CIAA) has started investigation on the suspicion that there has been abuse of authority in employee recruitments and in some expense of this company. Regulations of CDS and Clearing Ltd are also pending approval from the Securities Board of Nepal (SEBON). One positive development of the period is the appointment of SEBON Chairperson. Newly appointed Chairperson Babu Ram Shrestha has already taken over the responsibility and it is hoped that the CDS Company will get its regulations approved soon. During the month, a number of financial institutions made some definite progress towards their plan of merger. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a result, the stock exchange has halted trading in the stocks of those companies. That has subdued the trading volume. Hence it can be said that the market will show sideways movement for few coming sessions. Performance by Sector Banking sector that has been dominating the volume of trade in the Kathmandu exchange lost 8.65 points or 3.09% to close at 279.69 during the review period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Insurance sub-index plummeted 5.53 points or 1.39% to 398.14. Finance sector receded 4.54 points or 1.66% to rest at 272.88. Hotel sector descended 3.59 points along with 3.10 points decline in development bank sector to 379.01 and 278.90 respectively. The others sector shed 1.17 points or 0.24% to settle at 26.94. However hydropower sector registered a heavy growth of 44 points or 7.23% to reach 608.67. <img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/1(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Trading sector gained 4.63 points or 1.85% to close at 250.71. Sensitive index that measures the performance of 117 blue chips descended 1.78 points or 2.22% to 80.02 while the float index calculated on the basis of real transaction skid 0.34 points to 26.94. Total of Rs. 474010954 was realized during the review period from 3000729 units of share traded via 18846 transactions. <img alt="stocktaking" border="1" height="295" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/2(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="519" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The accompanying figure illustrates the sector-wise distribution based on total amount of trade. As usual, the banking sector accounted for 49.62% of total trade. Likewise, hydropower sector accounted for 22.95% while development bank covered 11.07%. Finance sector accounted for 7.39% and remaining sectors made up for the rest. Technically, Simple Moving Average (SMA) is dominating the market as 200 days SMA is far from the index while 30 days SMA is moving together with the index indicating further possibility of sideways movement for few more sessions. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em>(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</em></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em><img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/3(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</em></span></p>',
			'published' => true,
			'created' => '2011-11-17',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session.',
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			'id' => '521',
			'article_category_id' => '57',
			'title' => 'Brand Endorsement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sajag karki(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal. Keeping in mind the economic and financial state of the nation, using brand ambassadors by business and companies as a means of branding is highly commendable. Companies are attracted to this sort of communication because celebrities have huge fan following and popularity which cuts across all demographics helping companies to build goodwill and boost sales figures. The use of celebrities in advertisements has been there in Nepal but endorsements are a recent phenomenon and are starting to give fruitful results for the investing companies. However, a very prudent decision must be made while choosing the right personality to suit a brand for a perfect match. One such popular brand ambassador in Nepal is Rajesh Hamal for Jagadamba Steels whereas he can also be seen in numerous other advertisements. It is a logical match as Hamal’s macho personality suits the endorsement of a robust product such as steel. Hamal’s public image has been exploited to give maximum mileage to the brand with positive feedback from the customers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Such big celebrity endorsers get a handsome remuneration package for the endorsements as well. One such high profile endorsement is that of Manisha Koirala for Home TV. Since the company has merged with Dish TV, Manisha and MaHa Jodi combinely promote Dish Home TV. MaHa Jodi’s comic approach along with Manisha’s aura has suited well with an entertainment related product. The MaHa duo is also the face of NLIC life insurance and Ambe Steels. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Their ever popular image has certainly helped awareness regarding the aforementioned companies but it seems a mismatch between the type of product and the personalities that the comedy celebrity duo presents forth. Apparently, life insurance and steel related product need serious approaches and use of comedy actors does not seem to do justice to the personality of the brand. Another comic actor Deepak Raj Giri is the face of Sikhar Shoes while Rekha Thapa is the brand ambassador for United Telecom Ltd (UTL). The actors seem to have done wonders for the respective companies as their popularity and likability has leveraged their endorsements. Similarly, youth icon Nima Rumba is the face of several brands in Nepal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Hence, the significance of using brand ambassadors has been felt recently in marketing products and services. Talking about celebrity brand ambassadors for multinational companies like Nike, Adidas, Coke, Pepsi etc, there has been a lot of buzz surrounding them as well. Michael Jordan’s endorsement of Nike is one of the most successful till date. He has also endorsed other successful brands such as Coke, Chevrolet, McDonald’s etc. In India, Coke has used Amir Khan and Aishwarya Rai in its endorsements whereas Pepsi being a young brand has stars like Ranbir Kapoor and Katrina Kaif to communicate the brand’s personality. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Shahrukh Khan is one of the celebrities with the most number of endorsements with numerous big brands under his belt. Not to forget, Amitabh Bachchan and the Bachchan family who combinedly endorse more than two dozen popular brands. As celebrities too are human beings who make mistakes, the negative effect of their personalities may have adverse affect on the brands they endorse. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is why companies are highly sensitive while choosing their endorsers. An alternative to celebrity endorsement is a character or mascot that represents a brand. Brand characters help grab attention as they are often colourful and promote eye candy factor. It also breaks the clutter in the marketplace and communicates key product benefits. Some popular examples are Pillsbury’s Poppin’ Fresh Doughboy and Eveready’s drumming pink bunny for their Energizer battery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Brand endorsement is not a cheap option, it's an expensive affair yet companies all over the world are attracted towards this form of marketing as it helps build their brands in the long run. With the rate at which Nepal is progressing in the advertising field, some interesting and innovative marketing approaches can be expected in the days ahead. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><em><span style="font-size: 14px;">(Karki is associated with JWT (Thompson Nepal Pvt Ltd). The article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com)</span></em></strong></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-11-01',
			'keywords' => '',
			'description' => 'Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal.',
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			'id' => '520',
			'article_category_id' => '41',
			'title' => 'The Changing Beer Market Dynamics',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;">From premium and international beer brands to locally brewed Nepali strong beer brands Nepal's beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices and price factor are among the overriding reasons for this shift. Consumers are spoilt for choices in today's market scenario and hence, they have started to prefer indigenous beer brands, asserts K P Rizal, Deputy General Manager at Sungold Brewery (Nepal) Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">This change in consumption trend has ensured that Gorkha Brewery Pvt Ltd, the market leader, has turned out to be the biggest loser in the bargain. It enjoyed an absolute monopoly in the market with over 80 per cent market share not too long ago with established and popular brands namely Carlsberg, Tuborg and San Miguel ruling the marketplace. Over the last couple of years, however, the brewery has seen a turnaround in fortunes primarily due to the change in consumers tastes and sense of pride attached with local brands. A market estimate suggests that Gorkha Brewery has seen its market share plummet sharply during this period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"The market has shifted to lesser priced brands and it has led to the leading brewery losing market share considerably," confirms Kishor Bhattarai Chief of Sales &amp; Marketing at Himalayan Brewery Ltd. Experts allege that international brands took the market for granted and hence, created room for local brands to find a stronger foothold in the market. More consumers are increasingly opting for strong beer brands that cost less as well as promise faster intoxication. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The price of a beer is what is truly driving the market at this point of time. "The mindset of the consumers is to buy a beer with high alcohol content at cheap price," agrees Thomas Schlau Technical Director and Master Brewer at Sthapit &amp; Schlau Pvt Ltd. He says people must enjoy beer and there is a need for a culture to develop around beer drinking. Sensing the shift from the premium and international beer brands to indigenous Nepali brands, market leader Gorkha Brewery has indulged in severe price slashing in a bid to regain lost territory, reiterate competitors. So much so that its flagship brand Gorkha is now the cheapest beer brand available in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Though, of course, the brewery continues to be the market leader due to its strong show in the premium segment which it monopolises with no competition in sight by a long way. Sthapit &amp; Schlau that began production in May 2010 by using the production facility at United Breweries Nepal Pvt Ltd in Hetauda Industrial district, started with a modest 2,500 cases a month. Within a year-and-a-half, it has registered a 100 per cent growth, claims Schlau, and produces 5,000 cases a month during the 'beer season' between March and October. We have been promoting both our brands Coblenzer Pilsener and Coblenzer Marzen as natural beer and it took us some convincing to sell initially but our hard work is beginning to pay off, he says. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It started off with distributing in cities such as Kathmandu, Dharan and Biratnagar and has moved on to cover Pokhara, Narayanghat and Gorkha under its distribution network this year. The brewery, buoyed by overwhelming response from several sections of the market, plans to aggressively expand its network in the coming years. Sungold Brewery that uses up, on an average, 60-70 per cent of its 140,000 cases-a-month-capacity brewery at Damkauli in Nawalparasi is currently growing at 25 per cent per annum. About two years ago, we were growing at 100 per cent annually but due to the declining growth of the industry, our growth too has been affected to an extent,” admits Rizal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The brewery currently enjoys 20 per cent market share, he claims. It is now focusing mainly on two brands Nepal Ice (started in 2007) and Real Gold (started in 2008). While Rizal concedes that a brand name is something to reckon when it comes to international brands, he is confident that his brands will hold their own in the market as time progresses. The brewery has a strong distribution mechanism in place with 200 distributors across Nepal. He elaborates, "Distribution and market expansion is a continuous process and market growth and access dictate our distribution strategy." Not content with its impressive domestic show, it is also in the process of developing Nepal Ice as an international brand by exporting it to destinations far and wide such as Japan, USA, UK, Hong Kong, Korea and Dubai. Himalayan Brewery, which is going through a transition phase currently with a new management having taken over operations about a year ago, is already doing decently with about 9 percent of the market share, claims Bhattarai. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"It was immensely satisfying for us to discover that our flagship brand Iceberg enjoys incredible brand recall in the market and it makes our job that much easier," Bhattarai states excitedly. With its brewery at Godavari in Lalitpur, it has around 100 distributors across Nepal and counting. Iceberg also awaits a brand line extension few months down the line. "We are looking at extending the brand to premium segment. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">There is every reason for a domestic beer to provide quality at par with international brands and compete on equal terms," reveals Bhattarai. Brewers rue the fact that advertising wise, they don't have the option of gaining mileage through the electronic media as promotion of alcoholic beverages is banned on this medium in Nepal as per a government directive. "From a marketer's perspective, it is sad indeed that we cannot avail the benefit of advertising through the electronic media," says Rizal. He is, therefore, limited to mainly use BTL (below the line) activities which includes branding of glasses, openers and signage etc, consumer sampling, sponsoring sporting events and musical concerts and, of course, print advertising. Schlau, while choosing 'Coblenzer' (the name is based on Schlau's hometown Coblenz in Germany) as a brand name, hoped that it will go down well with the consumers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">However, as he says, "My calculation was wrong that a foreign (read German) name will get us immense mileage, it took me a little time to realise that people here have an affinity towards Nepali-ism." He too primarily depends on print advertising to promote his beers and occasionally supports events. At Moksh Bar last month, he celebrated 'Oktoberfest', modeled after the famous German beer festival in Munich. On the other hand, Himalayan Brewery, after beginning to function under a new management, started its branding exercise from scratch including developing POP (point of purchase) displays like posters and danglers, says Dhiraj Tuladhar, Brand &amp; Business Development Officer at the Brewery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It has made an attempt to relate Kathmandu beer with cultural heritage by promoting occasions such as Nhu Dan (Newari New Year). "We are trying to cash in on the culture aspect and hope it works for us," adds Tuladhar. While it may appear that Nepali breweries make huge profit margins, they have a different story to tell altogether. Brewers allege that heavily levied taxes including excise duties and VAT are so high that beer drinking in Nepal has become a very expensive proposition for the end consumer. A case (12 bottles of 650 ml each) of Coblenzer Beer invites an excise duty of Rs 624 which translates to Rs 52 per bottle. It is extremely high. Can you imagine that a bottle of beer actually costs more than a full meal at a reasonable eatery? asks Schlau. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He elaborates, While a plate of daal-bhaat may cost you Rs 150 at a regular food joint, you will have to pay Rs 162 and Rs 167 respectively for a bottle of Coblenzer Pilsener and Coblenzer Marzen. Even though the beer industry in Nepal hasn't suffered as much as some of the other sectors in the economy, there has been a considerable decline in its annual growth rate. Enjoying a 40 per cent growth per annum about two years ago, it is now growing at a modest 12-13 per cent annually. Brewers blame this on the economic downturn the country has been facing over the last few years. Rizal blames it on poor financial activity, a result of the economy being on the slow side.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He says, "The real estate business was booming a couple of years ago. Today, restaurant visits have minimised and people are gradually shifting towards strong beer brands due to economic reasons." The slowdown in the economy has taken its toll and impacted the industry to a certain extent with restaurants and pubs registering less than expected footfall in recent times. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">A lot of people for whom spending lavishly weren't a problem at all; income disposal has begun to matter a great deal. A 500,000 cases a month market, the annual revenue of the beer industry hovers around Rs 10 billion mark presently. Beer professionals believe that the industry holds great potential and in the future, with signs of recovery in the economy, it can look forward to better days ahead.<br />
	<br />
	<br />
	</span></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'From premium and international beer brands to locally brewed Nepali strong beer brands Nepal’s beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices',
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			'id' => '519',
			'article_category_id' => '41',
			'title' => 'Do Nepali Banks Require Additional Capital Injection?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sujit mundal.jpg" vspace="5" width="150" />On a recent trip to Chennai, I met an American lady seated next to me. It was a flight of about two hours and hence a fairly long time to converse. She introduced herself as Gene Turnbull, a senior research scholar at Stanford University; currently working on the financial sectors of emerging markets, mainly focusing on South Asia. What a coincidence? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What is your opinion of the financial markets in this subcontinent? She looked at me for a while and then said, I may need to start from a few not too old past events that plagued the entire global financial system.That's fine with me, I quipped. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She started. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">We need to look back at the global financial crisis which erupted in 2007 and severely damaged the western, mainly the advanced economies; the US was worst affected. That point in time, Asian economies, which are mostly emerging market economies, viz China, India, Indonesia etc were doing fine. They did not immediately feel the heat of the virtual collapse in the western markets, mainly the US and advanced West European Countries. China's dependence on exports was quite substantial and hence some fears loomed large about the sustainability of high rate of growth of the Chinese economy and the valuation of the currency. India was marginally better placed in the sense that the domestic demand continued to be firm and that supported the Indian growth. She further explained that the Asian economies were far more prepared in managing themselves. The governments and regulators also remained alert post Asian crisis of the late nineties. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What do you feel about the financial markets particularly in South Asia? I'm interested to know about Nepal. She continued . Perhaps this is not a good time for the banks, mainly in the west. They are besieged with low growth and erosion in capital stemming from sovereign debt exposures and stricter regulatory pressure. As a result, they are suffering from low return on capital. It looks like that would continue to be the case thanks to enhanced capital requirement under BASEL III. She, however, maintained that the banks in India, China and other emerging markets are more likely to sustain their returns on capital despite increased capital requirements under BASEL III. This will probably create a catalytic effect in attracting more capital in the emerging markets that are experiencing a broader economic landscape. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a sequel to the financial crisis of 2007, BASEL III did set forth revised rules for capital requirements for the banks. The minimum equity requirement, that is, Tier I capital will now be 7 per cent; a sharp increase from the present level of 2 per cent. Total capital requirement ( inclusive of Tier II) will increase from 8 per cent to 10.5 per cent. In addition, there will be a counter- cyclical buffer. To be precise, the banks may be required to operate with a capital in the range of 15-17 per cent in the years to come. You may know that the leading banks in Europe and the US already have capital adequacy of more than 14-15 per cent as mentioned. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The additional requirements under Basel III would necessitate capital injection of significant amount for the large banks in the west. The estimated amount of capital to be raised for meeting Basel III would be to the tune of 475 billion euros. The western banks would have to encounter at least three main challenges in the process of implementation of BASEL III viz firstly, the enormity of Euro Zone crisis, secondly, the slowdown in lending and contraction of balance sheets, and thirdly, stricter regulatory requirements emanating from the respective central banks. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">To tell you honestly, I was enjoying the analysis. She continued. You may well guess that the investors would think twice before putting their money in the western banks as the ROI would shrink, though the safety around their investments might be better than before. So, there would be an inclination for the investors to look towards the east. I asked her, What is your opinion about the banks in India? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She replied that although the Indian Banks are passing through a stressful period resulting from falling net margin in interest, higher incidence of nonperforming loans and more restrictions imposed by the central bank in respect of sectoral lending, these banks are better positioned to maintain a good return on equity in the long term. The growing domestic demand in the EME's (emerging market economies) and their conducive macroeconomic policies would help boost bottom lines of the banks in these countries including India. I then categorically asked her a question about the smaller economies in South Asia viz Nepal. I explained my interest in knowing about Nepal. She remained quiet for some time as if she was drowned in deep thought and then quipped, What is your specific question?</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I replied, What do you think about the banking system in this country? She was of the opinion that the country was in the early stage of development and the accompanying financial system needed higher level of governance and stronger foundation in the form of stricter implementation of regulations and transparency. She felt that the supervision system of the central bank needed further strengthening and more professional approach in the sense that they should not see wood for the tree.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I could not agree more that her observations were interesting. Against the back drop of a looming financial crisis in the Euro Zone and the very slow recovery in the US, it is quite likely that contagion effect can hit the emerging market economies including Nepal and this may lead to the crisis of confidence. Banks will experience falling returns, lesser ability to support credit off take and higher incidents of NPA. Considering all this, I asked her my final question on Nepali financial system, Do you think Nepali Banks require further injection of capital in order to maintain capital adequacy and create a cushion against possible erosion? She thought for a while and responded mildly, Yes, but it needs a lot of debate and political consideration . She was absolutely right. I think this is a serious subject for discussion and the sooner it is done, it's better for the country. </span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span><em><br />
	</em></span></span></p>
<p style="text-align: justify;">
	<strong><span style="font-size:12px;"><em>(Mundul is a Director with Standard Chartered Bank Nepal Ltd)<br />
	<br />
	<br />
	</em></span></strong></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'On a recent trip to Chennai, I met an American lady seated next to me. It was a flight of about two hours and hence a',
			'sortorder' => '424',
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	(int) 4 => array(
		'Article' => array(
			'id' => '518',
			'article_category_id' => '39',
			'title' => 'Qatar Airways: World 5-star Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramdas.jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Having started its operations in Nepal with a single flight each day about a decadeand- a-half ago, Qatar Airways has come a long way indeed. Aptly awarded a 5-star rating by Skytrax (a UK-based consultancy that carries out international-traveller surveys and ranks airlines and airports), it has increased its frequency to four flights each day beginning 1 October this year. Qatar Airways flies out of Kathmandu every day at 9:45 am, 8:30 pm, 9:30 pm and 11:30 pm.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">While the first two flights primarily carries migrant workers, the next two mostly have passengers who use the airline as a network carrier to reach their respective destinations in North America, South America, Africa and Europe, informs Ramdas Shivram, Country Manager for Nepal. Migrant workers boarding the 9:45 am and 8:30 pm flights go on to connect with GCC (Gulf Cooperation Council) countries and passengers on board 9:30 pm and 11:30 pm flights use the airline's hub Doha as a transit point to continue their onward journey to other continents. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The next two flights comprise expatriates living in Nepal, tourists as well as Nepalis living abroad, adds Shivram saying that around 5,000 passengers used the airline's services each way within the first 10 days of operations since flight frequency increased 1 October onwards. With four Airbus A320 carriers flying out of Kathmandu and, correspondingly, four flights coming into the city each day, Qatar Airways in Nepal sees the potential of selling in the region of 420,000 seats per annum. Shivram, who joined the airline in 2005 and took over its Nepal operations in November 2010, says Qatar Airways has expanded in Nepal after sensing a large potential in the country. On a global level, it aims to be the biggest international carrier. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Advertising &amp; Promotions </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">An essential part of its marketing strategy, the airline seeks to reinforce brand position efforts and provide a platform to deliver credibility for its brand. It makes every possible effort to expand brand visibility and link Qatar Airways brand attributes and values with its customers to establish lasting and loyal relationships with them. While ATL (Above the line) advertising is taken care of by its global head office, the airline indulges in local advertising and promotions by sponsoring sporting events such as golf, organising road shows, holding promotional programmes directed at travel agents, supporting educational programmes on television and publishing advertisements and media releases in major daily newspapers. Shivram cites an example, To promote knowledge about the recent increase in flight frequency, we organised a road show where we approached top 50 travel agencies in Nepal. It was a very successful event.<br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Work Culture</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Qatar Airways has 42 people working at its Kathmandu office, a sizeable number for a foreign airline. It has always tried to hire individuals who can work independently on their own. Shivram, who himself is equipped with a post graduate diploma in human resources, is well acquainted with critical issues such as organisational behaviour. He says that his expertise comes in handy while dealing with his colleagues at work. We try to hire the best talent available and send them to Doha for training. I personally believe in giving ample time and room for adaptation and mentor co-workers who show intent to shoulder greater responsibilities,he further states.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Market Potential <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline is growing at 35 per cent per annum globally and flies to 107 destinations (Oslo, Norway launched on 5 October this year being the latest one) worldwide with an impressive fleet of 100 aircrafts. It plans to serve more than 120 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America with a fleet of over 120 aircrafts by 2013. From Nepal's perspective too, Qatar Airways aims to become the number one airline in terms of time, connectivity and delivering best service. And to achieve this objective, it offers attractive schemes pertaining to specific destinations during the off season. Shivram rubbishes criticism from certain quarters that Nepal does not have a great deal to offer civil aviation in terms of numbers. He says, The fact that as many as 27 international carriers are operating in Nepal is proof enough that this market holds tremendous potential. He further believes that better infrastructure, improved navigation system and enhanced security arrangements at the Tribhuvan International Airport along with making it operational for 24 hours a day can do wonders for Nepal's civil aviation prospects. <img align="left" alt="plane" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ari.jpg" style="width: 344px; height: 145px; margin: 10px; padding: 10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Unprecedented Success <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline takes incredible pride in being a national carrier representing the State of Qatar. Voted Airline of the Year 2011 in the prestigious Skytrax industry audit, Qatar Airways has won the confidence of the travelling public. Since its re-launch in 1997, it has reached the pinnacle of the airline industry for outstanding in-flight service, superior onboard products, and operational excellence among others. Shivram attributes the record success to the airline's clear objectives, ambitions and a focused CEO in Akbar Al Baker. Since becoming the CEO of Qatar Airways in 1997, Al Baker has been instrumental in shaping Qatar Airways into one of the fastest growing and most highly acclaimed airlines in the world. Over the last decade, he spearheaded the airline's growth, which operated only four aircrafts in a regional capacity prior to his appointment. Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends, asserts Shivram. Despite being a foreign entity in Nepal, the airline has tasted success because it realised the need to get into the roots of the local culture and acted on it. Shivram says, Practicing the corporate philosophy of Qatar Airways along with correct product positioning and successfully establishing the right business environment has got us this far. Being responsible to internal as well as external customers is absolutely vital for any company's success, he concludes.<br />
	<br />
	<br />
	</span></p>',
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			'keywords' => '',
			'description' => 'Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends.',
			'sortorder' => '423',
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	(int) 5 => array(
		'Article' => array(
			'id' => '517',
			'article_category_id' => '37',
			'title' => 'Prolonged Economic Crisis: By Achyut Wagle A Case For Democratic Capitalism',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="economy" border="1" height="209" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/achyut wagle.jpg" style="width: 160px; height: 209px;margin:10px;padding:10px;" vspace="5" width="160" />When the USA was frantically trying to come out of perhaps the worst economic recession in modern times, the Eurozone reeled under even more serious cycle of economic meltdown. Angry verbal exchanges between British Prime Minister David Cameron and French President Nicholas Sarkozy in Brussels meeting on 23rd October and apparently crestfallen Sarkozy coming out of a meeting with German Chancellor Angela Merkel a couple of days earlier are surmiseable indications of the fact that the days of economic certainties in the world are still beyond horizon. The reportedly emerging consensus among the Eurozone leaders might find some solace for now. In fact, they have no alternative to evolving such consensus, but the days of worries of world economy wouldn't be over just by such isolated moves of bail-outs or write-offs unless the very cause(s) of these problems are addressed at the root. The most repeated statement of the present day economists and economic analysts is: Even if the USA and the Eurozone&nbsp; specifically Greece, Italy, Portugal, Ireland or Iceland -- came out from the current mess by some means, the world will not be the same again. Then, how would the new world look like? Nobody has a definitive answer. But, there is no alternative to finding out not only a convincing answer to this question but a workable framework to save the world from such too frequent and highly pervasive economic crises. Both, such frameworks and answers, can be devised by reviewing the past and taking unconventional strategies that suit to the present-day realities. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>1. Oversight Failures :</strong> When the subprime crisis was at its height in the US in 2008, Eurozone leaders were proudly boasting the robustness of their conservative supervisory regime of the financial system and were not subscribing the idea that their financial systems were not immune to similar- inbred if not contagious- crises. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The series of these crises have now exposed the fact the exiting supervisory and regulatory framework worldover has become virtually dysfunctional and a new one encompassing the contemporary, and if possible future, trends is not yet in place. Even worst, no meaningful homework has begun to that end, so far. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The movement of funds aided by mainly three distinct features-- the exponential growth in information technology, wider transport connectivity and high movement of people and new tools of trade in the money market like derivatives future-- have far outpaced the efficiency, jurisdiction and reform of both global and national financial systems oversight regimes. International flow of funds through legal channels, i.e. more or less detectable by any form of the regulatory radar, is less than 4 to 5 percent of the total estimated global transfers. On the legal side of the transfers, estimated value of world merchandise exports in 2010 was US $13.36 trillion and world commercial services exports in the same period was $3.64 trillion (Source WTO secretariat website and calculated on projected 10% rise in 2010 from 2009 actuals of world merchandise exports equivalent to $12.15 trillion and world commercial services exports $3.31 trillion). <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Similarly, according to an estimate by the World Bank, officially-recorded remittance flows in 2010 was about US$440 billion worldwide. And, crossborder investments in capital markets and real estate combined was to the tune of $330 billion. With all these transfers put together, even in exaggerated terms, the recorded total transfers of funds across the globe would hardly cross the $ 20 trillion mark. On the contrary, according to the Bank for International Settlements (BIS), amount of derivatives transactions stood at $601 trillion in December 2010, up from $583 trillion six months earlier. It was at the record level of $684 trillion in June 2008. Interest rate contracts form more than 75 percent of the derivatives futures transactions. (As reported in The Economist, May 31, 2011) The figures presented by the Daily Finance, a subsidiary portal of AOL, is even more appalling. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It says, One of the biggest risks to the world's financial health is the $1.2 quadrillion (one quadrillion is 1,000 billion) derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy Apart from these monetary-side regulatory gaps, fiscal regulation is also facing new challenges as the national boundaries are gradually becoming irrelevant partly by the sweep of globalization and partly made so by design, particularly in case of Eurozone, with the introduction of common currency, the Euro. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">With the introduction of the common currency, the national-level supervisory/regulatory authorities have become redundant and the national accounts failed to present the true picture of the economy as many crossborder transactions take place unrecorded. The window of currency conversion that used serve also as the basis of record of cash flows across the border is automatically out of practice. The forceful homogenization of the currencies of weaker and stronger economies has prompted unhindered and unregulated capital flights from weaker to stronger economies, breeding even graver crisis situations in weaker nations. Greece is the latest striking example. <img align="right" alt="ecomony" border="1" height="346" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/fig.jpg" style="margin:10px;padding:10px;" vspace="5" width="504" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Such capital flight is but natural phenomena, because weaker economy also meant less rate of return on investment, lesser degree of security and higher degree of unpredictability. And, common currency has facilitated it in a great deal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>2. The Political-Economy Issue:</strong> With the crisis aggravated more on every passing day, and resolution of it nowhere in sight, a number of ecopolitical issues have also come to fore. The worldwide fever of Capture Wall Street has created a new debate on possible collapse of capitalism. The advocates of egalitarian welfare state seem happy that the old good days of state-sponsored social safety model of economy would return soon. In the virtual mayhem, the virtues of both democracy and capitalism are pushed behind the dark shadow, a true concern for the future of the world economy and polity. In name of addressing the crisis, the electorates are kept completely aloof in taking the economic decisions that affect their lives the most. Their elected representatives are equally helpless as the common man on street, like in the case of Greece again, or their representatives like in the US take the decisions on the issues never mentioned in their election manifestoes, thus acting on democratically unmandated domain. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">These factors in due course are likely to raise more excruciating questions on the very rationale of election and their leaders authority to rule. This would certainly take way some beauties from the democracy. Another important question here is: has capitalism really failed? Or, are mere consumerism and irrational greed at the peril? The differentiation is not easy. But the fact is, it is not the capitalism that has failed but all the problems, perhaps without exception, are borne out of sheer anti-capitalistic and antidemocratic moves of the economies and their leaders at the helm. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">One of the greatest beauties of capitalism is the Economic Darwinism. The state must let the companies of whatever size that are already or become unable to compete in the market, fail. But, the problems multiplied to take the world at present situation when powerful economies set wrong precedent by bailing out ailing banks and companies at the expense of the tax-payers money. And, in the process, the decision makers did it without taking such important issues to the public through polls or referendum, which compromised the very tenets of the democracy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The ongoing global economic crisis, however, should be able to ignite a new debate on necessity of democratic capitalism as new future eco-political model. This new philosophy must not only be able to force the governments to act according to the principles of democracy and/or capitalism in isolation, but should establish it as a united theory where these two are treated as inseparable elements in future ecopolitical governance. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>3. The Future:</strong> The hypothesis of democratic capitalism is certainly useful to resolve the present crisis. Even more, this paradigm-shift would prove more appropriate as the shifting of economic might from West to East, from democratic to authoritarian country. Observing at the difficulty in resolving current crisis even in the highly transparent economies like the US and Europe, one can easily think of gravity of situation when similar problem arise in secretive but the second largest economic powerhouse like China. The simultaneous emphasis on democracy as that only ensures transparency and, respect to the ideals of capitalism that promotes free competition in any odd situation, can only in unison make the future world safer to live and do the business in business-like fashion.</span></p>',
			'published' => true,
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			'modified' => '2012-09-20',
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			'description' => 'The reportedly
emerging
consensus
among the
Eurozone leaders
might find some
solace for now.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '515',
			'article_category_id' => '52',
			'title' => 'Hoax Of Free Competition',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size:12px;"><img align="top" alt="" height="336" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/from the editor.jpg" vspace="5" width="500" /></span></p>
<p>
	<span style="font-size:12px;">Last couple of governments made headlines for declaring that appointments of the chiefs of public enterprises would be made through a free competition. Going a step further, present government opened˜tenders even for the constitutional positions like the chief and other commissioners for the Election Commission, Commission for the Investigation of Abuse of Authority (CIAA) and Public Service Commission. <br />
	</span></p>
<p>
	<span style="font-size:12px;">At the face, it appeared as a welcome idea as those crucial institutions could now expect to be headed by the most talented professionals than the political cronies of the party in power. Some of the selection process, like for the Executive Director of Nepal Electricity Authority (NEA), at the beginning appeared reasonably fair. The erstwhile government made the appointment on the basis of that very selection. Even the present government has appointed in couple of positions by calling for applications, like in case of the Chairman of Securities Board of Nepal (SEBON). <br />
	</span></p>
<p>
	<span style="font-size:12px;">However, status of application collected for constitutional bodies is yet in the dark. But, as it turned out now, all these so called free competitions were mere hoax. Ultimately, only hardcore cadres of the ruling party are getting appointment. The new NEA Executive Director turned out to be a devout UML party worker and Chairman of SEBON a staunch Maoist supporter. In both cases of NEA and SEBON, there were more qualified persons than those who were lucky enough to be picked for the job. But those PhD degree holders and true professionals were summarily discarded. <br />
	</span></p>
<p>
	<span style="font-size:12px;">Then, why is there drama of free competition as the people in power were freely appointing their near and dear ones in these positions for years? Because, this has several advantages for both the appointee and the appointer. Generally, such government appointments are made with a clause for maximum of (so many) years if it is a political appointment as in the past. But the person who is selected through free competition&nbsp; has a negotiation power not only on tenure but also for the perks. Then it has two advantages. First, the chosen cadre will have a fixed term appointment instead of uncertain maximum of. Second, he can bargain for better pay than the normal effective government pay-scale. In turn, the appointing party also can bargain for the appointee's contribution mostly monetary, called levyâ. <br />
	</span></p>
<p>
	<span style="font-size:12px;">What is important here is not the process but the intent of the appointer. If their intentions are to appoint the best professional, the free competition for mere publicity is an unnecessary waste of time and resources. On the contrary, if the ruling parties want their own cadres in any pretext, the so called free competition will only add to the worries of public enterprises, most of which are already in precarious situation.<br />
	<br />
	<br />
	</span></p>',
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	(int) 7 => array(
		'Article' => array(
			'id' => '514',
			'article_category_id' => '31',
			'title' => 'Nepali Market Is Strategically Very Important For Us',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>Indranil Sinha,</strong> the Director of Exports of Whirlpool India Limited was in Nepal recently, for the opening of two exclusive Whirlpool showrooms. He handles the international export of Whirlpool for South Asia. In an interview with New Business Age, he talked about the prospects of Whirlpool products in the Nepali market. Excerpts:</p>
<p>
	<strong>How is the trend of sales for Whirlpool products in Nepal?</strong></p>
<p>
	Nepal has been one of the best performing markets for us in the last few years. However, I think the penetration of home appliances is still very low in Nepal. In Kathmandu, the market is good, but outside the valley, it's not much to write home about. We have been present in Nepal for the last 15 years, so we have a good network. We try to make sure that the products reach all over Nepal. Our appliances have made a good name for themselves. I wouldn't say the market is very profitable because if the prices are high, the buyers switch to other companies very easily. We are not very conscious about profitability right now; we are just trying to develop a brand image.</p>
<p>
	<strong>The Nepali market is relatively a small one. How important is it for your portfolio?</strong></p>
<p>
	I don't think the market is really small. With a population of nearly 30 million, it's quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here. In Sri Lanka, the population is about 20 million, but the sale is around 250,000. In Nepal, the market is growing and so is our market share which is about 15 to 20 per cent. As the market grows, we want to maintain or even improve on our market share. In about five years, I see the market doing very well. Therefore, the Nepali market is strategically very important for us.</p>
<p>
	<strong>How tough is the competition? <br />
	</strong></p>
<p>
	The competition is very tough everywhere today, and Nepal is no exception. A number of Asian brands, Japanese or Korean, are strongly dominating the market. But for European or American brands, we are comfortably placed at number one. All our Asian competitors are dealing in home appliances and consumer electronics like television, mobiles, laptops, monitors and other products as well. But our focus is only on the home appliances. We basically manufacture products that are used around the kitchen and make life easier for the users. You might not see flashy lights and a lot of buttons in our products, but you will get genuine benefit and convenience from them.</p>
<p>
	<strong>What are the unique features of your product? What is it that gives you an edge over others? <br />
	</strong></p>
<p>
	We have a refrigerator model in which we have used a technology that keeps food fresh even if there is a power outage for 15 hours. We discovered that generally the compartments of the refrigerators are opened every 10 or 15 minutes in a household to fetch vegetables, water and other items. The door opens and closes so many times and at the same time, hot air goes in. So the refrigerator has to consume extra power to keep things cool, which is not efficient by any means. We have come up with Proton series of refrigerators where we have separated the vegetable storage compartment in a drawer at the bottom and the refrigerator compartment remains at the centre. So, the whole refrigerator does not need to be opened all the time. This makes the refrigerator consume less power. We have applied similar innovations for other appliances as well.</p>
<p>
	<strong>What are your future plans for the market here in Nepal? <br />
	</strong></p>
<p>
	We have recently opened two exclusive showrooms in Kathmandu. This will definitely help in making our product more visible. We are specially focusing on the market in Kathmandu, where there are opinion makers and trend setters. All the latest products will be there in the showrooms in the capital. We are also offering new schemes for the buyers and will be bringing in new products as well. We have new designs of kitchen chimneys, hobs, water purifiers, clothes dryer and microwave ovens.</p>
<p>
	<strong>Is there a possibility of Whirlpool establishing a manufacturing unit in Nepal? <br />
	</strong></p>
<p>
	Right now, we don't have any such plans. We already have three factories in India and two in China, so opening a manufacturing unit here will not be economically feasible. But still, it's a probability that we may open a facilitating office here in Nepal because at present, we are operating through a distributor.</p>',
			'published' => true,
			'created' => '2011-11-16',
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			'keywords' => '',
			'description' => 'With a population of nearly 30 million, Nepali market is quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here.',
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			'title' => 'Increased Awareness Of Incoterms Would Help Local Banks',
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			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="1" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/pavel andrle.jpg" style="width: 241px; height: 463px;" vspace="5" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Pavel Andrle</strong> is Secretary of the Banking Commission of International Chamber of Commerce-Czech Republic (ICC-CR) and regularly represents ICC-CR at the ICC Banking Commission meetings abroad. He has been deeply involved in the revision of UCP as a member of UCP 600 consulting group formed by over forty experts from all over the world. Andrle has also been closely involved in the revision of URDG 758. He has participated in the development of ICC-CR certified course Incoterms 2010 Masterclasses and currently serves as one of the ICC-CR official trainers for Incoterms 2010. He has been appointed ICC-CR expert to reply to enquiries related to Documentary Credits and Trade and Structured Finance development of technical assistance consultancy services of ICC-CR to banks, carriers, insurance companies and traders. Andrle was in Kathmandu recently and led a two day seminar for bankers on Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees&nbsp; URDG 758 organised by National Banking Training Institute (NBTI). In an interview with New Business Age, he talked about the features and benefits of the banking commission documents he trained the seminar participants on. Excerpts:</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Please tell us about this seminar that you had for the Nepali bankers.</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Well, it was a very successful two day seminar and about 30 bankers representing more than 20 banks participated in this programme. We focused on issues such as Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees URDG 758. The seminar was very useful for professionals working in the trade finance sector and dealing with documentary collections and documentary credits that a bank guarantees. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Could you please elaborate on Incoterms 2010?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Incoterms which translates to International Commercial Terms are developed by International Chamber of Commerce. Incoterms are part of Uniform Customs Practice (UCP) 600 widely practiced and followed by banks worldwide for mostly out of country transaction through Letter of Credits. The Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods and are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000. In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules applies regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation over water. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How important is URDG (Uniform Rules for Demand Guarantees) 758 and what does it imply?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The URDG 758 is a set of contractual rules that apply to demand guarantees and counter-guarantees. As the URDG are contractual by nature, they apply only if the parties to a demand guarantee or counter-guarantee so choose. The URDG can adequately provide an operational framework for any situation where a demand guarantee is required, whatever the situation is in the public or the governmental sector involved. Agreeing to issue a guarantee according to URDG spares the parties the effort of drafting extensive clauses to describe the independence of the guarantee, its irrevocability, its non-assign ability and the guarantor's duties and more. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the benefi ts with using URDG 758?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Once the URDG are incorporated in the guarantee or counter-guarantee text by contractual reference to the URDG, they are deemed to be entirely incorporated, unless specific article(s) are expressly excluded or amended. A URDG guarantee and counter-guarantee enter into effect from the date they are issued, unless their terms expressly postpone their entry into effect to agree with a later date or the occurrence of an agreed event. Accordingly, no demand for payment can be presented until the guarantee enters into effect following the occurrence of a specified date or event indicated in the guarantee.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How will these programmes help the Nepali banks and bankers? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks to exercise acceptable international norms in issuing and accepting Letter of Credits. Besides, many issues arising out of international trade can be mitigated. The programme will help the banking staff working at the Trade Finance Department of their respective banks on recent issues related with issuing and accepting Letter of Credits and how to quote and implement Incoterms in the Letter of Credits.</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><br />
	</span></p>',
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			'description' => 'The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks.',
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		'Article' => array(
			'id' => '512',
			'article_category_id' => '31',
			'title' => 'Our Product Is Of National Interest For Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="left" alt="" height="261" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/subhaog ghosh.jpg" style="margin:10px;padding:10px;" vspace="5" width="420" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Subhamoy Ghosh</strong> is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer. Ghosh joined Palfinger India on in June 2010 and looks after product management and business development of Palfinger Cranes in India along with overseeing finance and human resource functions. He was in Nepal recently to understand the market demands and requirements for Palfinger Products here. In an interview with New Business Age, he shared his understanding of the Nepali market and plans for Palfinger here. Excerpts:</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Can you tell us something about your products? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">We come from the field of transport solutions and our job is to make easy and quick loading as well as unloading of a truck so that it can go for another trip without wasting time. Transporters earn money when they make more trips and our main job is to give transport solution to the transporters. Besides being a lifting and shifting solution provider, we are a multiproduct group having seven major products. We are making our entry in Nepal with the truck loader crane and, in a couple of years from now, we will be introducing more from our product line. The Nepali market has some experience of using second hand Japanese trucks which come fitted with these kinds of cranes. On our part, we will be bringing two cranes: Stiff Boom Crane and Knuckle Boom Crane. Normally, cranes are known for loading and unloading using hooks but this one can perform even clamping and grabbing operations. The Knuckle Boom Crane can even drill a hole. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Is there any special reason behind choosing these two cranes specifi cally?</strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">In Nepal, everything has got stagnant and the market has become slow in the last five years. I believe that it is a good time to become better and catch up with the rest of the world. Nepal needs to develop its infrastructure very fast by constructing more roads, bridges, buildings, modernised airports etc. If the industrialisation in Nepal has to take place, abundant infrastructure needs to be there first. These cranes combined with trucks can play a fantastic role in infrastructural projects because these can lift materials and deliver to the projects. As Nepal is a geographically difficult terrain, it is not possible for any project to keep materials close to its vicinity. With truck loader cranes, we are adding versatility as they are more suitable for rental companies. Owning a crane independently may not be economically viable for companies in a small market like Nepal. Besides private players, the public firms too can be better served by these machines. Mechanisation is the solution for efficiency and can save human resource for other purposes while ensuring safety at the project sites. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How can small and large projects alike benefi t from these equipments? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">These can be used mainly in medium to large projects since they may not be cost effective for small projects due to the price factor. We are in the initial stage and trying to increase visibility of the product in the market as people should know what they can do with this kind of equipment. This crane can be used in various aspects such as construction, electrification, municipal waste, cargo distribution, at factories etc. So, we want to let the market decide how can the crane be best utilised as per various needs. Our job as a supplier is to give exposure to the market about the functionalities of these cranes. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you see the market prospects in Nepal? Are there any competitors in the Nepali market for you?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Our ambition is to introduce 20 to 25 cranes in the first year in Nepali market for various applications. Then we can expect to grow along with the economic growth of Nepal. In advanced countries, manpower is expensive and it is not ready to do manual jobs and even the law prohibits it to some extent. So they have one crane for every five to 20 trucks whereas in Nepal and India, there is not even one crane for 100,000 trucks. I believe that 20 to 30 cranes should be fitted to every 100 trucks deployed. As of now, there is no competition for us in Nepal for new trucks and new cranes. The only competition is from the used trucks which I believe is not good for Nepali environment as they do not even meet environmental safety standards. If the import of these used trucks can be stopped, we will have no competition at all. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>After sales service becomes a major issue whenever new equipments are launched. How do you plan to address this? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is the main reason why we have selected an able partner in Infratech. They have a strong presence in the market and enjoy recognition among customers. They will be further trained and groomed for this purpose but most importantly, these are maintenance free vehicles. Customers can not damage it even by choice as it has a host of safety protections, however, we don't want to take any risks and hence, we will also have a spare parts shop for the machines locally.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to establish your brand image in Nepal? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">What we do in any new market will be done here as well. Once the dealership is announced, we will try to reach our customers through various media vehicles. We have certain branding plans targeting our users and customers. We normally try to reach as many potential customers as possible and as frequently in a year. We will organise likeminded customers meet, for example, one meeting for construction people while another for government officials. We believe that communication exercises will help us establish a decent brand image here in Nepal. <img align="right" alt="" border="1" height="201" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ghosh 2.jpg" style="margin:10px;padding:10px;" vspace="5" width="144" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the challenges you see for yourself in the Nepali market? How do you plan to overcome them?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">From a commercial point of view, the duty structure is unimaginably high particularly for a non-manufacturing country like Nepal. Such a heavy duty is actually bound to put a lot of pressure on buyers since they might be discouraged to buy such products despite wanting to have them. Secondly, there is almost no general awareness about this product so convincing the customers on a priority basis will be a big challenge. For the commercial solution, we have to meet the government of Nepal to see if anything can be done because this is a product of national interest for the country. It is not for somebody's personal use and promises to add value to the growth and development of Nepal. Educating the market is our duty and I hope that our marketing efforts and visible involvement in the market will ensure this.</span></p>',
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			'created' => '2011-11-16',
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			'keywords' => '',
			'description' => 'Subhamoy Ghosh is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer.',
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		'Article' => array(
			'id' => '511',
			'article_category_id' => '31',
			'title' => 'The Nepali Market Is Dominated By SMEs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="bottom" alt="" height="357" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/shinji tada.jpg" vspace="5" width="198" /><img align="bottom" alt="" height="359" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/amit ali.jpg" vspace="5" width="199" /><strong><br />
	<br />
	Printers from Brother were available in the market for quite some time. What is the motive of officially launching the new line-up in the market now? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We were available for the last two months but we were still continuing with the current line-up. A couple of new models were brought a few months back and now the entire line-up is available. We decided to organise a formal launch now because we have changed this line up for the first time in three years. Laser printer comprises almost 90 per cent of our business so it is very important for us. Once the line-up was fully available, we decided to introduce the range formally in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you analyse the Nepali market for your products? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Tada: This is an emerging market. It has potential to grow in the future but so far, this is a price sensitive market. So, we have launched products that are specifically targeted at emerging markets. I think with this range, we can achieve good results and gain more market share. <strong>Ali: </strong>I think the entry level models three-in-one and fourin- one printers have the highest sales prospects in Nepal because these are products that are very popular already. We want to sell more colour and high end products for corporate users.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you compare the Nepali market with other Asian markets? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> I think that the customer profile is different in Nepal. In other markets, there are more corporate houses and big companies who are our customers. But, the Nepali market is dominated by small and medium enterprises (SMEs). There is very low presence of foreign investments and no big multinational companies whatsoever. This is one of the biggest differences. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> In Asian markets, we have different types of countries ranging from Australia, a very developed country to Vietnam, an emerging country. The main difference is in the profile of customers. Nepal is a little less developed compared to other Asian countries like Malaysia and Thailand which are better developed. They have strong corporate customers who are well educated. They are definitely cost conscious but they also know the importance of warranty. In Nepal, for example, around 90 per cent users depend on refill for laser products. This market needs a lot of education. A refill may save cost in the short term but over a period of, say, five years; it turns out to be complicated and damages the machine making it an expensive proposition. Our approach to the Nepali market is the same as in other regions because we are trying to enhance the education and awareness level of the customers. In terms of market growth and potential, this market has better prospects than any other Asian countries because they have already reached a certain level of penetration. The IT penetration is still low especially in the rural areas. We are optimistic that over the next 10 years, the IT sector will grow tremendously. Even the government sector has minimal exposure to IT so hopefully it may invest more in the next five years and we can grow along.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What is your strategy to cater to home as well as corporate users?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> The corporate houses are our main target customers especially SMEs. This can prove to be the strongest market segment for Brother. Along with a few big companies, there are many SMEs in Nepal. These laser products rightly suit our target customers’ needs and that’s why we have introduced these products here. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the specialities of Brother Products compared to other similar products?</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali: </strong>There are three main reasons why Brother Products are known all over the world: (a) Quality, (b) very easy to use products and (c) strong and reliable products. Our products are popular in the USA because they are easy to use and install and it is our biggest market in small office segment. In case of Nepal, we have seen the results over four years now and our products are also being used in very remote regions. We are bringing in laser products which are customised for Nepali condition which we don’t sell in another region, for example, the Gulf countries. These products are customised for Nepal’s voltage and electricity situation making them very strong and reliable for usage in remote areas as well. The Brother Products come with a threeyear warranty and we believe that this will appeal especially to the corporate customers. They can have good quality, stable and strong machines as well as service and maintenance which is taken care of, for three years. We are very balanced between price and performance as we are not the cheapest brand available but we are also not the most expensive one around. We offer a combination of good price and performance to the consumers.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Your products are said to be environment friendly too. Tell us more about it</strong>. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We are committed to make environment friendly products and the Brother Products have received Ecomark and Blue Angel certification from Europe. This is the toughest environment certification to get anywhere in the world and now-a-days in Europe, you cannot participate in tenders unless you have this certification. All our products are certified which means that the parts, components and materials we use to make our products are environment friendly and bio-degradable as much as possible. Our products consume very less power and, in laser products, we use separate toner and drum technology which means the materials used in those items are less dense and hence, more easy to recycle. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> We are trying to be an eco-friendly company and we are now producing different models that can print on both sides of a paper and thus ensuing lower paper usage. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is your volume wise sales target for the market here? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We keep an annual target for this market like any other market. Based on our distributor’s commitment and comfort level, we decide a target with mutual consent and increase it every year. So, in the last four years, we have grown four times and our plan is to grow four times further till 2015. We do have a very ambitious target and hope to meet it.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to meet this target?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><strong>Tada:</strong> We want to grow along with our distributors by taking care of the market. We have prioritised the Nepali market as it has a good potential. To make our business sustain and retain our customers, we need to provide good service to our customers besides sales. Once they buy a machine from Brother, the service they get from us determines whether they will choose to be a regular customer of Brother. The sales target for certain emerging markets will be introduced in due time and we believe that we will be able to achieve it.</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'Shinji Tada is the Managing Director of Brother International (Gulf) FZE (BI) and Amit Ali is the Deputy General Manager of Printing and Solutions Division at BI.',
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		'Article' => array(
			'id' => '510',
			'article_category_id' => '38',
			'title' => 'HR Budget',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need, cost is considered as a major factor. We all like saving of time and money at all levels whether in personal life or in business circumstances. The purpose of business entity is the profitable manufacturing and/or supply of goods and services to fulfill economic necessities ensuring satisfactory returns to all stakeholders mainly known as economic and social suppliers, that is,. investors/owners, members/employees of the enterprises, customers, and the society. Hence planning and budgets are developed in business enterprises to analyse and evaluate managerial decision making on account of spending and output achievement.&nbsp;</p>
<p style="text-align: justify;">
	 </p>
<p>
	Human Resources Management, in the process of effective utilisation of the people resources towards achievement of overall organisational goals; performs number of functions broadly named as:</p>
<ol>
	<li>
		Organisational Planning in support of determining its need, structure and relationship strategies. </li>
	<li>
		Staffing covering headcount planning, recruitment, selection and placement, job designs and profiling, orientation and separations.&nbsp;</li>
	<li>
		Skills Enhancement comprising of training need analysis, training activities and evaluation of programme offered. </li>
	<li>
		Compensation &amp; Benefit processing job evaluation, designing and operating suitable salary package/ structure and variable pay package. </li>
	<li>
		Motivation starting from performance appraisal moving through recognition to financial and nonfinancial incentives. </li>
	<li>
		Employee Relations beginning from discipline, counseling, grievance handling moving through recreation and welfare activities, eligibilities (leave, provident fund, gratuity etc) medical services to collective bargaining etc</li>
	<li>
		Personnel record comprising personal information gathering, database development, talent inventory etc making complete employee record. </li>
</ol>
<p>
	Therefore, the cost of human capital represents one of the largest operating expenses into any business. It impacts financial results indirectly in the form of recruitment, motivation and morale, skills enhancement etc impacting quality of operations that supports building customers’ confidence leading to customer retention resulting into revenue/profit. Developing effective human resources budgeting strategies leverages organisations to improve accuracy in cost prediction, control mechanism over budget and realising significant savings. HR budgeting brings together data from different sources, for example, HRIS (Human Resources Information System), Payroll, Performance Management, Sales forecast etc and generates full picture of current and future business positioning. The HR budget is operating budget within the organisation. </p>
<p>
	Budgeting involves information and data to enable finance project organisation’s overall objectives and profitability. The finance unit of an enterprise determines budget structure element and HR unit generates elements of people cost. There are mainly two methods that are applied in budgeting: a. Generic incremental method: Using current budget, next budget is developed through adjustments on each item in close consideration of expected business move, market inflation, consumer/customer sentiments, past success rate etc. b. Zero-based budgeting method: The process begins with zero as base and each item included in the budget is justified before inclusion. It is an organised approach to decide the funding level and performance level in the context of scarce resources and new priorities from scratch – as if no operations exist (before). Whilst creating human resources budget, absolute necessary attention is expected on income of the business moving to investment on people resources. Line items of expenditure are defined by object classes, that is, charts of accounts. While talking of HR budget, such line items include: • Headcount plan, that is, Number of employee projected (includes organisation structure) • Changes projections in compensation and benefits (inclusive of overtime payments) • New benefits/programmes planned • Assumptions around employee turnover • Assumptions/guidelines for realistic expense level • Social security for employees and corporate citizenship programmes • Other changes in policy, business strategy, law or regulation that may impact costs • Skills e n h a n c e m e n t / p e o p l e development/training cost, and • Cost control and reduction via consulting, savings from compensation, benefits, turnover reduction, developed internal trainers etc Projections are based on actual costs incurred in the past or guesses, depending on the nature of the expense and the data available.</p>
<p>
	It may be difficult to project in the circumstances of significant fluctuations in turnover and staffing needs. Thus HR associates need to gather every source of available data in order to make educated projections. It would also be wise to obtain feedback on essential HR moves from other functional heads that ensures buy-in of projections in view of instilling confidence on the inclusion of their expectations from HR. These are crucial in working out lowcost benefits contributing to increased employee satisfaction. With the shift from traditional to professional working of HR, clearly defined mission, vision and values for HR function becomes a path finder for people managers in streamlining process and securing alignment of total team towards one direction. Currently, HR function in any organisation is evaluated on the basis of people productivity and hence it is widely suggested to work around productivity improvement, product/ service quality delivery and instilling customer satisfaction that undoubtedly secures customer retention and contributes to sales growth with improved profitability. This enables HR to track revenue and profit per employee, that is, a comparative study of employees output against expenses per employee. Analytical Budgeting provides opportunity to HR practitioners around comparing achievements with competition and one’s own past performance that opens the door for continuous improvement. </p>
<p>
	The essence here lies in successful measurements of HR functions assignments and performance as it has a direct impact on the organisation as a whole. The recent studies and human scientists have directed a need to establish a clear numerical relationship between people management and financial performance as it would support translation of strategy into operations, managing and controlling overall performance down to business transactions as a result of improved decision making across the organisation. From an entrepreneur’s view point, employee shares of the rewards of production whether cash or other form of earning are commonly referred to HR expenditure and considered as “Cost”. HR practitioners need to identify the areas of businesses that are growing and work with responsibility centres in such areas. </p>
<p>
	Volunteer themselves around HR support in elimination of barriers experienced by such areas of business in improving productivity and margin. Also establish review process to evaluate impact of HR interventions and once positive impact is visible (which is sure to happen), the business head becomes the HR advocate with the Finance head that ensures full considerations and funding HR initiatives. HR strategies are never stagnant, it is most flexible and shifts focus with changes experienced whether economic or otherwise. </p>
<p>
	Therefore, it would be wise for HR function to prioritise their programmes and services focusing most important areas that have high and visible impact on people productivity as well as producing immediate return to make sure that their budget is accepted as value addition instead of cost. It needs to shift its focus to growth areas that can be served with prioritised HR services. This will improve response time and customer service in total too that will be added advantage for HR to be perceived as responsive productive unit and eradicate the common perception of unresponsive overhead unit within the organisation. To conclude, HR needs to demonstrate competitive advantage for the business in total from the programmes and approaches adopted for budgeting defining difference in ways and means for achievement that confirms result much superior than ever before so that confidence of total business is secured to maintain HR programmes.</p>
<p style="text-align: justify;">
	<em>(Dr Karna is the Executive Chairman of MARK Business Solutions Pvt Ltd and Ad Abhyas Marketing &amp; Communications Pvt Ltd. The article is based on various research reports and his practical experiences as management practitioner.)</em></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'keywords' => '',
			'description' => 'Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need,',
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	(int) 12 => array(
		'Article' => array(
			'id' => '509',
			'article_category_id' => '38',
			'title' => 'Ways Of Appraising Employees',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development. As the last fiscal year ended just a few months ago (i.e. at mid-July), many organisations are now conducting performance appraisals in order to evaluate the yearly performances of its employees. In this context, Real Solutions organised HR Kurakani on ‘Ways of appraising employees’ in order to discuss how to conduct appraisal effectively. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">HR practitioners from diverse fields discussed the ways of appraising and the different ways that it can be accomplished: <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Methods <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Every organisation has its own method of appraising an employee’s performance but some of the popular methods used by various organisations in Nepal are 360 degree appraisal, observation basis and balanced scorecard among others. The performance appraisal forms are filled either manually or through use of certain software packages developed for the purpose. Filling the PA forms should not be biased; but in practice, favoritism does exist within organisations. Therefore, PA should be transparent in order to bring out best results. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Forms <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The participating HR practitioners highlighted on designing questionnaires as per respective job descriptions and found it necessary that they are associated with organisational goals. The questionnaire should be able to analyse different aspects of an employee like communication skills, punctuality, competence, knowledge and overall behaviour among others. Another aspect to be considered while designing the PA forms is the language. The language should be simple, clear and must include both English and Nepali languages and sometimes in other language(s) too, in order to make PA process easier. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Trend <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">It was felt that most of the organisations in Nepal do not carry out appraisals while some others do it just for the sake of doing it. The organisations that conduct appraisals systematically and effectively include multinational companies and international nongovernmental organisations (INGOs).</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Outcome</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">If an organisation conducts PA and takes no action based on the result received, then there’s no point in going through the entire process. The action as a result should not always be an increment in terms of monetary compensation even though it is one of the major aspects. Besides monetary reward, the appraisal outcome can also include non-monetary rewards such as providing holiday packages, training facilities, appreciation and rewarding best employee among others, based on their performances. An increment in salary is expected on a yearly basis when PA is conducted. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The HR Kurakani participants discussed salary increment criteria such as performance based increment, increment as per government norms, increment as per inflation rate and increment considering an organisation’s values and growth. It was also discussed that yearly PA is not the best way of judging and rewarding employees. If a system can be introduced to appraise employees on a monthly basis, it could be more effective. The participants discussed the possibilities and practicality of such an arrangement. Since it requires greater time investment, the participants suggested conducting biannual PAs and pointed out different ways that can assist appraisals such as critical incident recording, electronic tracking system, introduction of cards for warnings in the event of mistakes committed and encouragement in case of perfect job, external evaluation etc. (The write up is based on an ‘HR Kurakani’ discussion on the topic ‘Ways of Appraising Employees’ conducted by Real Solutions Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The participants at the discussion included representatives from NGOs &amp; INGOs, Hotel Industry, IT and Communication, Automobile Companies, Trading and Service Industries as well as a freelancer. Shailendra Raj Giri, Managing Director of Real Solutions acted as the moderator for the discussion while Nibha Shakya, HR Executive of the company coordinated the event).</span></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'description' => 'Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development.',
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		'Article' => array(
			'id' => '508',
			'article_category_id' => '34',
			'title' => 'Indian Interest Rate 5 Times Higher Than Nepal’s',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank, Nepal’s average real interest rate between 1975 and 2010 remained at mere 1.32 per cent. Similarly, record of Reserve Bank of India (RBI) says average interest rate in India during the same period was 6.68 per cent. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepal had negative real interest rate (after adjusting for inflation) while India had positive real interest reate in most of the years during this period. Economists say that low real interest rate discourages savings and thus slows down the economy’s growth rate. Dr Chiranjivi Nepal, an Economist said that Nepali authorities must consider Indian policies while formulating monetary policy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">He added, “While Indian central bank has been diligently trying to make sure that the real interest rate is positive, Nepali policy makers seem unaware of the seriousness of this issue.” RBI, in the last 18 months increased bank rate more than 12 times to control inflation and maintain the real interest rate at positive side. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">However, Nepal’s bank rate has remained constant for a long time while the inflation has doubled in last five years. When annual consumer inflation reached 15 per cent, two years back, real interest rate was negative by more than 10 per cent. According to Dr Nepal, the liquidity crunch faced by Nepal’s banking system recently was due mainly to the capital flight induced by the negative real interest rate in Nepal.</span></p>',
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			'created' => '2011-11-15',
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			'keywords' => '',
			'description' => 'Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank,',
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			'id' => '507',
			'article_category_id' => '34',
			'title' => 'International Trademark For Nepali Coffee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for trademark registration in 10 countries including USA, Canada, European Union, Switzerland, Norway, Australia, South Korea, Japan, Hong Kong, and Singapore. Shyam Prasad Bhandari, President of FCT said Nepali coffee is sure to get trademark in many those countries. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Bhandari said a unique trademark is being developed so that Nepali coffee can be easily identified which in turn helps to enhance the trust level and promote it in the international market. He said it takes six to 18 months for approval and FCT is optimistic to get this brand recognition tool as the demand of Nepali coffee is now growing in these international markets. In the second phase, trademark will be registered in the countries like Bhutan, China, Taiwan, Kenya, UAE, among others. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">It has been agreed with Trade and Export Promotion Centre that 70 per cent of the registration cost will be borne by the government and the rest by the traders. Registration of trademark in 10 countries would cost something about Rs 5 million. After this global recognition, all the coffee produced in Nepal will bear an uniform logo. Currently, different producers are using different logos developed by them in isolation .</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for',
			'sortorder' => '413',
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$articles = array(
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		'Article' => array(
			'id' => '522',
			'article_category_id' => '42',
			'title' => 'Flat In Festival (Nepal Stock Market Review For 25 September To 25 October, 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="232" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram.jpg" style="width: 188px; height: 232px;margin:10px;padding:10px;" vspace="5" width="188" />The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session. The benchmark Nepse index plummeted 3.59 points or 1.09% to close at 327.99. The highest point during review period was on 12 October with 334.49 while the lowest was on 23 October with 326.42. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Normally, the festival season causes outflow of money from the stock market. However, this year it was not so. Many companies have already declared their earnings and announced the dividend rates while others are preparing to do so. The book closing days are also coming around for the AGMs. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">All these are making the investors to heed the market movement more closely. Investors are dismayed at the delay in the operation of CDS and Clearing Ltd. the Commission for the Investigation of Abuse of Authority (CIAA) has started investigation on the suspicion that there has been abuse of authority in employee recruitments and in some expense of this company. Regulations of CDS and Clearing Ltd are also pending approval from the Securities Board of Nepal (SEBON). One positive development of the period is the appointment of SEBON Chairperson. Newly appointed Chairperson Babu Ram Shrestha has already taken over the responsibility and it is hoped that the CDS Company will get its regulations approved soon. During the month, a number of financial institutions made some definite progress towards their plan of merger. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a result, the stock exchange has halted trading in the stocks of those companies. That has subdued the trading volume. Hence it can be said that the market will show sideways movement for few coming sessions. Performance by Sector Banking sector that has been dominating the volume of trade in the Kathmandu exchange lost 8.65 points or 3.09% to close at 279.69 during the review period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Insurance sub-index plummeted 5.53 points or 1.39% to 398.14. Finance sector receded 4.54 points or 1.66% to rest at 272.88. Hotel sector descended 3.59 points along with 3.10 points decline in development bank sector to 379.01 and 278.90 respectively. The others sector shed 1.17 points or 0.24% to settle at 26.94. However hydropower sector registered a heavy growth of 44 points or 7.23% to reach 608.67. <img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/1(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Trading sector gained 4.63 points or 1.85% to close at 250.71. Sensitive index that measures the performance of 117 blue chips descended 1.78 points or 2.22% to 80.02 while the float index calculated on the basis of real transaction skid 0.34 points to 26.94. Total of Rs. 474010954 was realized during the review period from 3000729 units of share traded via 18846 transactions. <img alt="stocktaking" border="1" height="295" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/2(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="519" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The accompanying figure illustrates the sector-wise distribution based on total amount of trade. As usual, the banking sector accounted for 49.62% of total trade. Likewise, hydropower sector accounted for 22.95% while development bank covered 11.07%. Finance sector accounted for 7.39% and remaining sectors made up for the rest. Technically, Simple Moving Average (SMA) is dominating the market as 200 days SMA is far from the index while 30 days SMA is moving together with the index indicating further possibility of sideways movement for few more sessions. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em>(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</em></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em><img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/3(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</em></span></p>',
			'published' => true,
			'created' => '2011-11-17',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session.',
			'sortorder' => '427',
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	(int) 1 => array(
		'Article' => array(
			'id' => '521',
			'article_category_id' => '57',
			'title' => 'Brand Endorsement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sajag karki(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal. Keeping in mind the economic and financial state of the nation, using brand ambassadors by business and companies as a means of branding is highly commendable. Companies are attracted to this sort of communication because celebrities have huge fan following and popularity which cuts across all demographics helping companies to build goodwill and boost sales figures. The use of celebrities in advertisements has been there in Nepal but endorsements are a recent phenomenon and are starting to give fruitful results for the investing companies. However, a very prudent decision must be made while choosing the right personality to suit a brand for a perfect match. One such popular brand ambassador in Nepal is Rajesh Hamal for Jagadamba Steels whereas he can also be seen in numerous other advertisements. It is a logical match as Hamal’s macho personality suits the endorsement of a robust product such as steel. Hamal’s public image has been exploited to give maximum mileage to the brand with positive feedback from the customers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Such big celebrity endorsers get a handsome remuneration package for the endorsements as well. One such high profile endorsement is that of Manisha Koirala for Home TV. Since the company has merged with Dish TV, Manisha and MaHa Jodi combinely promote Dish Home TV. MaHa Jodi’s comic approach along with Manisha’s aura has suited well with an entertainment related product. The MaHa duo is also the face of NLIC life insurance and Ambe Steels. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Their ever popular image has certainly helped awareness regarding the aforementioned companies but it seems a mismatch between the type of product and the personalities that the comedy celebrity duo presents forth. Apparently, life insurance and steel related product need serious approaches and use of comedy actors does not seem to do justice to the personality of the brand. Another comic actor Deepak Raj Giri is the face of Sikhar Shoes while Rekha Thapa is the brand ambassador for United Telecom Ltd (UTL). The actors seem to have done wonders for the respective companies as their popularity and likability has leveraged their endorsements. Similarly, youth icon Nima Rumba is the face of several brands in Nepal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Hence, the significance of using brand ambassadors has been felt recently in marketing products and services. Talking about celebrity brand ambassadors for multinational companies like Nike, Adidas, Coke, Pepsi etc, there has been a lot of buzz surrounding them as well. Michael Jordan’s endorsement of Nike is one of the most successful till date. He has also endorsed other successful brands such as Coke, Chevrolet, McDonald’s etc. In India, Coke has used Amir Khan and Aishwarya Rai in its endorsements whereas Pepsi being a young brand has stars like Ranbir Kapoor and Katrina Kaif to communicate the brand’s personality. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Shahrukh Khan is one of the celebrities with the most number of endorsements with numerous big brands under his belt. Not to forget, Amitabh Bachchan and the Bachchan family who combinedly endorse more than two dozen popular brands. As celebrities too are human beings who make mistakes, the negative effect of their personalities may have adverse affect on the brands they endorse. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is why companies are highly sensitive while choosing their endorsers. An alternative to celebrity endorsement is a character or mascot that represents a brand. Brand characters help grab attention as they are often colourful and promote eye candy factor. It also breaks the clutter in the marketplace and communicates key product benefits. Some popular examples are Pillsbury’s Poppin’ Fresh Doughboy and Eveready’s drumming pink bunny for their Energizer battery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Brand endorsement is not a cheap option, it's an expensive affair yet companies all over the world are attracted towards this form of marketing as it helps build their brands in the long run. With the rate at which Nepal is progressing in the advertising field, some interesting and innovative marketing approaches can be expected in the days ahead. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><em><span style="font-size: 14px;">(Karki is associated with JWT (Thompson Nepal Pvt Ltd). The article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com)</span></em></strong></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-11-01',
			'keywords' => '',
			'description' => 'Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal.',
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			'id' => '520',
			'article_category_id' => '41',
			'title' => 'The Changing Beer Market Dynamics',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;">From premium and international beer brands to locally brewed Nepali strong beer brands Nepal's beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices and price factor are among the overriding reasons for this shift. Consumers are spoilt for choices in today's market scenario and hence, they have started to prefer indigenous beer brands, asserts K P Rizal, Deputy General Manager at Sungold Brewery (Nepal) Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">This change in consumption trend has ensured that Gorkha Brewery Pvt Ltd, the market leader, has turned out to be the biggest loser in the bargain. It enjoyed an absolute monopoly in the market with over 80 per cent market share not too long ago with established and popular brands namely Carlsberg, Tuborg and San Miguel ruling the marketplace. Over the last couple of years, however, the brewery has seen a turnaround in fortunes primarily due to the change in consumers tastes and sense of pride attached with local brands. A market estimate suggests that Gorkha Brewery has seen its market share plummet sharply during this period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"The market has shifted to lesser priced brands and it has led to the leading brewery losing market share considerably," confirms Kishor Bhattarai Chief of Sales &amp; Marketing at Himalayan Brewery Ltd. Experts allege that international brands took the market for granted and hence, created room for local brands to find a stronger foothold in the market. More consumers are increasingly opting for strong beer brands that cost less as well as promise faster intoxication. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The price of a beer is what is truly driving the market at this point of time. "The mindset of the consumers is to buy a beer with high alcohol content at cheap price," agrees Thomas Schlau Technical Director and Master Brewer at Sthapit &amp; Schlau Pvt Ltd. He says people must enjoy beer and there is a need for a culture to develop around beer drinking. Sensing the shift from the premium and international beer brands to indigenous Nepali brands, market leader Gorkha Brewery has indulged in severe price slashing in a bid to regain lost territory, reiterate competitors. So much so that its flagship brand Gorkha is now the cheapest beer brand available in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Though, of course, the brewery continues to be the market leader due to its strong show in the premium segment which it monopolises with no competition in sight by a long way. Sthapit &amp; Schlau that began production in May 2010 by using the production facility at United Breweries Nepal Pvt Ltd in Hetauda Industrial district, started with a modest 2,500 cases a month. Within a year-and-a-half, it has registered a 100 per cent growth, claims Schlau, and produces 5,000 cases a month during the 'beer season' between March and October. We have been promoting both our brands Coblenzer Pilsener and Coblenzer Marzen as natural beer and it took us some convincing to sell initially but our hard work is beginning to pay off, he says. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It started off with distributing in cities such as Kathmandu, Dharan and Biratnagar and has moved on to cover Pokhara, Narayanghat and Gorkha under its distribution network this year. The brewery, buoyed by overwhelming response from several sections of the market, plans to aggressively expand its network in the coming years. Sungold Brewery that uses up, on an average, 60-70 per cent of its 140,000 cases-a-month-capacity brewery at Damkauli in Nawalparasi is currently growing at 25 per cent per annum. About two years ago, we were growing at 100 per cent annually but due to the declining growth of the industry, our growth too has been affected to an extent,” admits Rizal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The brewery currently enjoys 20 per cent market share, he claims. It is now focusing mainly on two brands Nepal Ice (started in 2007) and Real Gold (started in 2008). While Rizal concedes that a brand name is something to reckon when it comes to international brands, he is confident that his brands will hold their own in the market as time progresses. The brewery has a strong distribution mechanism in place with 200 distributors across Nepal. He elaborates, "Distribution and market expansion is a continuous process and market growth and access dictate our distribution strategy." Not content with its impressive domestic show, it is also in the process of developing Nepal Ice as an international brand by exporting it to destinations far and wide such as Japan, USA, UK, Hong Kong, Korea and Dubai. Himalayan Brewery, which is going through a transition phase currently with a new management having taken over operations about a year ago, is already doing decently with about 9 percent of the market share, claims Bhattarai. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"It was immensely satisfying for us to discover that our flagship brand Iceberg enjoys incredible brand recall in the market and it makes our job that much easier," Bhattarai states excitedly. With its brewery at Godavari in Lalitpur, it has around 100 distributors across Nepal and counting. Iceberg also awaits a brand line extension few months down the line. "We are looking at extending the brand to premium segment. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">There is every reason for a domestic beer to provide quality at par with international brands and compete on equal terms," reveals Bhattarai. Brewers rue the fact that advertising wise, they don't have the option of gaining mileage through the electronic media as promotion of alcoholic beverages is banned on this medium in Nepal as per a government directive. "From a marketer's perspective, it is sad indeed that we cannot avail the benefit of advertising through the electronic media," says Rizal. He is, therefore, limited to mainly use BTL (below the line) activities which includes branding of glasses, openers and signage etc, consumer sampling, sponsoring sporting events and musical concerts and, of course, print advertising. Schlau, while choosing 'Coblenzer' (the name is based on Schlau's hometown Coblenz in Germany) as a brand name, hoped that it will go down well with the consumers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">However, as he says, "My calculation was wrong that a foreign (read German) name will get us immense mileage, it took me a little time to realise that people here have an affinity towards Nepali-ism." He too primarily depends on print advertising to promote his beers and occasionally supports events. At Moksh Bar last month, he celebrated 'Oktoberfest', modeled after the famous German beer festival in Munich. On the other hand, Himalayan Brewery, after beginning to function under a new management, started its branding exercise from scratch including developing POP (point of purchase) displays like posters and danglers, says Dhiraj Tuladhar, Brand &amp; Business Development Officer at the Brewery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It has made an attempt to relate Kathmandu beer with cultural heritage by promoting occasions such as Nhu Dan (Newari New Year). "We are trying to cash in on the culture aspect and hope it works for us," adds Tuladhar. While it may appear that Nepali breweries make huge profit margins, they have a different story to tell altogether. Brewers allege that heavily levied taxes including excise duties and VAT are so high that beer drinking in Nepal has become a very expensive proposition for the end consumer. A case (12 bottles of 650 ml each) of Coblenzer Beer invites an excise duty of Rs 624 which translates to Rs 52 per bottle. It is extremely high. Can you imagine that a bottle of beer actually costs more than a full meal at a reasonable eatery? asks Schlau. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He elaborates, While a plate of daal-bhaat may cost you Rs 150 at a regular food joint, you will have to pay Rs 162 and Rs 167 respectively for a bottle of Coblenzer Pilsener and Coblenzer Marzen. Even though the beer industry in Nepal hasn't suffered as much as some of the other sectors in the economy, there has been a considerable decline in its annual growth rate. Enjoying a 40 per cent growth per annum about two years ago, it is now growing at a modest 12-13 per cent annually. Brewers blame this on the economic downturn the country has been facing over the last few years. Rizal blames it on poor financial activity, a result of the economy being on the slow side.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He says, "The real estate business was booming a couple of years ago. Today, restaurant visits have minimised and people are gradually shifting towards strong beer brands due to economic reasons." The slowdown in the economy has taken its toll and impacted the industry to a certain extent with restaurants and pubs registering less than expected footfall in recent times. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">A lot of people for whom spending lavishly weren't a problem at all; income disposal has begun to matter a great deal. A 500,000 cases a month market, the annual revenue of the beer industry hovers around Rs 10 billion mark presently. Beer professionals believe that the industry holds great potential and in the future, with signs of recovery in the economy, it can look forward to better days ahead.<br />
	<br />
	<br />
	</span></p>',
			'published' => true,
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			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'From premium and international beer brands to locally brewed Nepali strong beer brands Nepal’s beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices',
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	(int) 3 => array(
		'Article' => array(
			'id' => '519',
			'article_category_id' => '41',
			'title' => 'Do Nepali Banks Require Additional Capital Injection?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sujit mundal.jpg" vspace="5" width="150" />On a recent trip to Chennai, I met an American lady seated next to me. It was a flight of about two hours and hence a fairly long time to converse. She introduced herself as Gene Turnbull, a senior research scholar at Stanford University; currently working on the financial sectors of emerging markets, mainly focusing on South Asia. What a coincidence? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What is your opinion of the financial markets in this subcontinent? She looked at me for a while and then said, I may need to start from a few not too old past events that plagued the entire global financial system.That's fine with me, I quipped. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She started. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">We need to look back at the global financial crisis which erupted in 2007 and severely damaged the western, mainly the advanced economies; the US was worst affected. That point in time, Asian economies, which are mostly emerging market economies, viz China, India, Indonesia etc were doing fine. They did not immediately feel the heat of the virtual collapse in the western markets, mainly the US and advanced West European Countries. China's dependence on exports was quite substantial and hence some fears loomed large about the sustainability of high rate of growth of the Chinese economy and the valuation of the currency. India was marginally better placed in the sense that the domestic demand continued to be firm and that supported the Indian growth. She further explained that the Asian economies were far more prepared in managing themselves. The governments and regulators also remained alert post Asian crisis of the late nineties. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What do you feel about the financial markets particularly in South Asia? I'm interested to know about Nepal. She continued . Perhaps this is not a good time for the banks, mainly in the west. They are besieged with low growth and erosion in capital stemming from sovereign debt exposures and stricter regulatory pressure. As a result, they are suffering from low return on capital. It looks like that would continue to be the case thanks to enhanced capital requirement under BASEL III. She, however, maintained that the banks in India, China and other emerging markets are more likely to sustain their returns on capital despite increased capital requirements under BASEL III. This will probably create a catalytic effect in attracting more capital in the emerging markets that are experiencing a broader economic landscape. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a sequel to the financial crisis of 2007, BASEL III did set forth revised rules for capital requirements for the banks. The minimum equity requirement, that is, Tier I capital will now be 7 per cent; a sharp increase from the present level of 2 per cent. Total capital requirement ( inclusive of Tier II) will increase from 8 per cent to 10.5 per cent. In addition, there will be a counter- cyclical buffer. To be precise, the banks may be required to operate with a capital in the range of 15-17 per cent in the years to come. You may know that the leading banks in Europe and the US already have capital adequacy of more than 14-15 per cent as mentioned. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The additional requirements under Basel III would necessitate capital injection of significant amount for the large banks in the west. The estimated amount of capital to be raised for meeting Basel III would be to the tune of 475 billion euros. The western banks would have to encounter at least three main challenges in the process of implementation of BASEL III viz firstly, the enormity of Euro Zone crisis, secondly, the slowdown in lending and contraction of balance sheets, and thirdly, stricter regulatory requirements emanating from the respective central banks. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">To tell you honestly, I was enjoying the analysis. She continued. You may well guess that the investors would think twice before putting their money in the western banks as the ROI would shrink, though the safety around their investments might be better than before. So, there would be an inclination for the investors to look towards the east. I asked her, What is your opinion about the banks in India? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She replied that although the Indian Banks are passing through a stressful period resulting from falling net margin in interest, higher incidence of nonperforming loans and more restrictions imposed by the central bank in respect of sectoral lending, these banks are better positioned to maintain a good return on equity in the long term. The growing domestic demand in the EME's (emerging market economies) and their conducive macroeconomic policies would help boost bottom lines of the banks in these countries including India. I then categorically asked her a question about the smaller economies in South Asia viz Nepal. I explained my interest in knowing about Nepal. She remained quiet for some time as if she was drowned in deep thought and then quipped, What is your specific question?</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I replied, What do you think about the banking system in this country? She was of the opinion that the country was in the early stage of development and the accompanying financial system needed higher level of governance and stronger foundation in the form of stricter implementation of regulations and transparency. She felt that the supervision system of the central bank needed further strengthening and more professional approach in the sense that they should not see wood for the tree.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I could not agree more that her observations were interesting. Against the back drop of a looming financial crisis in the Euro Zone and the very slow recovery in the US, it is quite likely that contagion effect can hit the emerging market economies including Nepal and this may lead to the crisis of confidence. Banks will experience falling returns, lesser ability to support credit off take and higher incidents of NPA. Considering all this, I asked her my final question on Nepali financial system, Do you think Nepali Banks require further injection of capital in order to maintain capital adequacy and create a cushion against possible erosion? She thought for a while and responded mildly, Yes, but it needs a lot of debate and political consideration . She was absolutely right. I think this is a serious subject for discussion and the sooner it is done, it's better for the country. </span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span><em><br />
	</em></span></span></p>
<p style="text-align: justify;">
	<strong><span style="font-size:12px;"><em>(Mundul is a Director with Standard Chartered Bank Nepal Ltd)<br />
	<br />
	<br />
	</em></span></strong></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'On a recent trip to Chennai, I met an American lady seated next to me. It was a flight of about two hours and hence a',
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	(int) 4 => array(
		'Article' => array(
			'id' => '518',
			'article_category_id' => '39',
			'title' => 'Qatar Airways: World 5-star Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramdas.jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Having started its operations in Nepal with a single flight each day about a decadeand- a-half ago, Qatar Airways has come a long way indeed. Aptly awarded a 5-star rating by Skytrax (a UK-based consultancy that carries out international-traveller surveys and ranks airlines and airports), it has increased its frequency to four flights each day beginning 1 October this year. Qatar Airways flies out of Kathmandu every day at 9:45 am, 8:30 pm, 9:30 pm and 11:30 pm.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">While the first two flights primarily carries migrant workers, the next two mostly have passengers who use the airline as a network carrier to reach their respective destinations in North America, South America, Africa and Europe, informs Ramdas Shivram, Country Manager for Nepal. Migrant workers boarding the 9:45 am and 8:30 pm flights go on to connect with GCC (Gulf Cooperation Council) countries and passengers on board 9:30 pm and 11:30 pm flights use the airline's hub Doha as a transit point to continue their onward journey to other continents. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The next two flights comprise expatriates living in Nepal, tourists as well as Nepalis living abroad, adds Shivram saying that around 5,000 passengers used the airline's services each way within the first 10 days of operations since flight frequency increased 1 October onwards. With four Airbus A320 carriers flying out of Kathmandu and, correspondingly, four flights coming into the city each day, Qatar Airways in Nepal sees the potential of selling in the region of 420,000 seats per annum. Shivram, who joined the airline in 2005 and took over its Nepal operations in November 2010, says Qatar Airways has expanded in Nepal after sensing a large potential in the country. On a global level, it aims to be the biggest international carrier. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Advertising &amp; Promotions </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">An essential part of its marketing strategy, the airline seeks to reinforce brand position efforts and provide a platform to deliver credibility for its brand. It makes every possible effort to expand brand visibility and link Qatar Airways brand attributes and values with its customers to establish lasting and loyal relationships with them. While ATL (Above the line) advertising is taken care of by its global head office, the airline indulges in local advertising and promotions by sponsoring sporting events such as golf, organising road shows, holding promotional programmes directed at travel agents, supporting educational programmes on television and publishing advertisements and media releases in major daily newspapers. Shivram cites an example, To promote knowledge about the recent increase in flight frequency, we organised a road show where we approached top 50 travel agencies in Nepal. It was a very successful event.<br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Work Culture</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Qatar Airways has 42 people working at its Kathmandu office, a sizeable number for a foreign airline. It has always tried to hire individuals who can work independently on their own. Shivram, who himself is equipped with a post graduate diploma in human resources, is well acquainted with critical issues such as organisational behaviour. He says that his expertise comes in handy while dealing with his colleagues at work. We try to hire the best talent available and send them to Doha for training. I personally believe in giving ample time and room for adaptation and mentor co-workers who show intent to shoulder greater responsibilities,he further states.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Market Potential <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline is growing at 35 per cent per annum globally and flies to 107 destinations (Oslo, Norway launched on 5 October this year being the latest one) worldwide with an impressive fleet of 100 aircrafts. It plans to serve more than 120 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America with a fleet of over 120 aircrafts by 2013. From Nepal's perspective too, Qatar Airways aims to become the number one airline in terms of time, connectivity and delivering best service. And to achieve this objective, it offers attractive schemes pertaining to specific destinations during the off season. Shivram rubbishes criticism from certain quarters that Nepal does not have a great deal to offer civil aviation in terms of numbers. He says, The fact that as many as 27 international carriers are operating in Nepal is proof enough that this market holds tremendous potential. He further believes that better infrastructure, improved navigation system and enhanced security arrangements at the Tribhuvan International Airport along with making it operational for 24 hours a day can do wonders for Nepal's civil aviation prospects. <img align="left" alt="plane" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ari.jpg" style="width: 344px; height: 145px; margin: 10px; padding: 10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Unprecedented Success <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline takes incredible pride in being a national carrier representing the State of Qatar. Voted Airline of the Year 2011 in the prestigious Skytrax industry audit, Qatar Airways has won the confidence of the travelling public. Since its re-launch in 1997, it has reached the pinnacle of the airline industry for outstanding in-flight service, superior onboard products, and operational excellence among others. Shivram attributes the record success to the airline's clear objectives, ambitions and a focused CEO in Akbar Al Baker. Since becoming the CEO of Qatar Airways in 1997, Al Baker has been instrumental in shaping Qatar Airways into one of the fastest growing and most highly acclaimed airlines in the world. Over the last decade, he spearheaded the airline's growth, which operated only four aircrafts in a regional capacity prior to his appointment. Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends, asserts Shivram. Despite being a foreign entity in Nepal, the airline has tasted success because it realised the need to get into the roots of the local culture and acted on it. Shivram says, Practicing the corporate philosophy of Qatar Airways along with correct product positioning and successfully establishing the right business environment has got us this far. Being responsible to internal as well as external customers is absolutely vital for any company's success, he concludes.<br />
	<br />
	<br />
	</span></p>',
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			'keywords' => '',
			'description' => 'Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '517',
			'article_category_id' => '37',
			'title' => 'Prolonged Economic Crisis: By Achyut Wagle A Case For Democratic Capitalism',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="economy" border="1" height="209" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/achyut wagle.jpg" style="width: 160px; height: 209px;margin:10px;padding:10px;" vspace="5" width="160" />When the USA was frantically trying to come out of perhaps the worst economic recession in modern times, the Eurozone reeled under even more serious cycle of economic meltdown. Angry verbal exchanges between British Prime Minister David Cameron and French President Nicholas Sarkozy in Brussels meeting on 23rd October and apparently crestfallen Sarkozy coming out of a meeting with German Chancellor Angela Merkel a couple of days earlier are surmiseable indications of the fact that the days of economic certainties in the world are still beyond horizon. The reportedly emerging consensus among the Eurozone leaders might find some solace for now. In fact, they have no alternative to evolving such consensus, but the days of worries of world economy wouldn't be over just by such isolated moves of bail-outs or write-offs unless the very cause(s) of these problems are addressed at the root. The most repeated statement of the present day economists and economic analysts is: Even if the USA and the Eurozone&nbsp; specifically Greece, Italy, Portugal, Ireland or Iceland -- came out from the current mess by some means, the world will not be the same again. Then, how would the new world look like? Nobody has a definitive answer. But, there is no alternative to finding out not only a convincing answer to this question but a workable framework to save the world from such too frequent and highly pervasive economic crises. Both, such frameworks and answers, can be devised by reviewing the past and taking unconventional strategies that suit to the present-day realities. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>1. Oversight Failures :</strong> When the subprime crisis was at its height in the US in 2008, Eurozone leaders were proudly boasting the robustness of their conservative supervisory regime of the financial system and were not subscribing the idea that their financial systems were not immune to similar- inbred if not contagious- crises. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The series of these crises have now exposed the fact the exiting supervisory and regulatory framework worldover has become virtually dysfunctional and a new one encompassing the contemporary, and if possible future, trends is not yet in place. Even worst, no meaningful homework has begun to that end, so far. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The movement of funds aided by mainly three distinct features-- the exponential growth in information technology, wider transport connectivity and high movement of people and new tools of trade in the money market like derivatives future-- have far outpaced the efficiency, jurisdiction and reform of both global and national financial systems oversight regimes. International flow of funds through legal channels, i.e. more or less detectable by any form of the regulatory radar, is less than 4 to 5 percent of the total estimated global transfers. On the legal side of the transfers, estimated value of world merchandise exports in 2010 was US $13.36 trillion and world commercial services exports in the same period was $3.64 trillion (Source WTO secretariat website and calculated on projected 10% rise in 2010 from 2009 actuals of world merchandise exports equivalent to $12.15 trillion and world commercial services exports $3.31 trillion). <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Similarly, according to an estimate by the World Bank, officially-recorded remittance flows in 2010 was about US$440 billion worldwide. And, crossborder investments in capital markets and real estate combined was to the tune of $330 billion. With all these transfers put together, even in exaggerated terms, the recorded total transfers of funds across the globe would hardly cross the $ 20 trillion mark. On the contrary, according to the Bank for International Settlements (BIS), amount of derivatives transactions stood at $601 trillion in December 2010, up from $583 trillion six months earlier. It was at the record level of $684 trillion in June 2008. Interest rate contracts form more than 75 percent of the derivatives futures transactions. (As reported in The Economist, May 31, 2011) The figures presented by the Daily Finance, a subsidiary portal of AOL, is even more appalling. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It says, One of the biggest risks to the world's financial health is the $1.2 quadrillion (one quadrillion is 1,000 billion) derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy Apart from these monetary-side regulatory gaps, fiscal regulation is also facing new challenges as the national boundaries are gradually becoming irrelevant partly by the sweep of globalization and partly made so by design, particularly in case of Eurozone, with the introduction of common currency, the Euro. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">With the introduction of the common currency, the national-level supervisory/regulatory authorities have become redundant and the national accounts failed to present the true picture of the economy as many crossborder transactions take place unrecorded. The window of currency conversion that used serve also as the basis of record of cash flows across the border is automatically out of practice. The forceful homogenization of the currencies of weaker and stronger economies has prompted unhindered and unregulated capital flights from weaker to stronger economies, breeding even graver crisis situations in weaker nations. Greece is the latest striking example. <img align="right" alt="ecomony" border="1" height="346" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/fig.jpg" style="margin:10px;padding:10px;" vspace="5" width="504" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Such capital flight is but natural phenomena, because weaker economy also meant less rate of return on investment, lesser degree of security and higher degree of unpredictability. And, common currency has facilitated it in a great deal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>2. The Political-Economy Issue:</strong> With the crisis aggravated more on every passing day, and resolution of it nowhere in sight, a number of ecopolitical issues have also come to fore. The worldwide fever of Capture Wall Street has created a new debate on possible collapse of capitalism. The advocates of egalitarian welfare state seem happy that the old good days of state-sponsored social safety model of economy would return soon. In the virtual mayhem, the virtues of both democracy and capitalism are pushed behind the dark shadow, a true concern for the future of the world economy and polity. In name of addressing the crisis, the electorates are kept completely aloof in taking the economic decisions that affect their lives the most. Their elected representatives are equally helpless as the common man on street, like in the case of Greece again, or their representatives like in the US take the decisions on the issues never mentioned in their election manifestoes, thus acting on democratically unmandated domain. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">These factors in due course are likely to raise more excruciating questions on the very rationale of election and their leaders authority to rule. This would certainly take way some beauties from the democracy. Another important question here is: has capitalism really failed? Or, are mere consumerism and irrational greed at the peril? The differentiation is not easy. But the fact is, it is not the capitalism that has failed but all the problems, perhaps without exception, are borne out of sheer anti-capitalistic and antidemocratic moves of the economies and their leaders at the helm. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">One of the greatest beauties of capitalism is the Economic Darwinism. The state must let the companies of whatever size that are already or become unable to compete in the market, fail. But, the problems multiplied to take the world at present situation when powerful economies set wrong precedent by bailing out ailing banks and companies at the expense of the tax-payers money. And, in the process, the decision makers did it without taking such important issues to the public through polls or referendum, which compromised the very tenets of the democracy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The ongoing global economic crisis, however, should be able to ignite a new debate on necessity of democratic capitalism as new future eco-political model. This new philosophy must not only be able to force the governments to act according to the principles of democracy and/or capitalism in isolation, but should establish it as a united theory where these two are treated as inseparable elements in future ecopolitical governance. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>3. The Future:</strong> The hypothesis of democratic capitalism is certainly useful to resolve the present crisis. Even more, this paradigm-shift would prove more appropriate as the shifting of economic might from West to East, from democratic to authoritarian country. Observing at the difficulty in resolving current crisis even in the highly transparent economies like the US and Europe, one can easily think of gravity of situation when similar problem arise in secretive but the second largest economic powerhouse like China. The simultaneous emphasis on democracy as that only ensures transparency and, respect to the ideals of capitalism that promotes free competition in any odd situation, can only in unison make the future world safer to live and do the business in business-like fashion.</span></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-09-20',
			'keywords' => '',
			'description' => 'The reportedly
emerging
consensus
among the
Eurozone leaders
might find some
solace for now.',
			'sortorder' => '422',
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	(int) 6 => array(
		'Article' => array(
			'id' => '515',
			'article_category_id' => '52',
			'title' => 'Hoax Of Free Competition',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size:12px;"><img align="top" alt="" height="336" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/from the editor.jpg" vspace="5" width="500" /></span></p>
<p>
	<span style="font-size:12px;">Last couple of governments made headlines for declaring that appointments of the chiefs of public enterprises would be made through a free competition. Going a step further, present government opened˜tenders even for the constitutional positions like the chief and other commissioners for the Election Commission, Commission for the Investigation of Abuse of Authority (CIAA) and Public Service Commission. <br />
	</span></p>
<p>
	<span style="font-size:12px;">At the face, it appeared as a welcome idea as those crucial institutions could now expect to be headed by the most talented professionals than the political cronies of the party in power. Some of the selection process, like for the Executive Director of Nepal Electricity Authority (NEA), at the beginning appeared reasonably fair. The erstwhile government made the appointment on the basis of that very selection. Even the present government has appointed in couple of positions by calling for applications, like in case of the Chairman of Securities Board of Nepal (SEBON). <br />
	</span></p>
<p>
	<span style="font-size:12px;">However, status of application collected for constitutional bodies is yet in the dark. But, as it turned out now, all these so called free competitions were mere hoax. Ultimately, only hardcore cadres of the ruling party are getting appointment. The new NEA Executive Director turned out to be a devout UML party worker and Chairman of SEBON a staunch Maoist supporter. In both cases of NEA and SEBON, there were more qualified persons than those who were lucky enough to be picked for the job. But those PhD degree holders and true professionals were summarily discarded. <br />
	</span></p>
<p>
	<span style="font-size:12px;">Then, why is there drama of free competition as the people in power were freely appointing their near and dear ones in these positions for years? Because, this has several advantages for both the appointee and the appointer. Generally, such government appointments are made with a clause for maximum of (so many) years if it is a political appointment as in the past. But the person who is selected through free competition&nbsp; has a negotiation power not only on tenure but also for the perks. Then it has two advantages. First, the chosen cadre will have a fixed term appointment instead of uncertain maximum of. Second, he can bargain for better pay than the normal effective government pay-scale. In turn, the appointing party also can bargain for the appointee's contribution mostly monetary, called levyâ. <br />
	</span></p>
<p>
	<span style="font-size:12px;">What is important here is not the process but the intent of the appointer. If their intentions are to appoint the best professional, the free competition for mere publicity is an unnecessary waste of time and resources. On the contrary, if the ruling parties want their own cadres in any pretext, the so called free competition will only add to the worries of public enterprises, most of which are already in precarious situation.<br />
	<br />
	<br />
	</span></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-08-31',
			'keywords' => '',
			'description' => 'Last couple of governments made headlines for declaring that appointments of the chiefs of public enterprises would be made through a free competition.',
			'sortorder' => '421',
			'image' => null,
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	(int) 7 => array(
		'Article' => array(
			'id' => '514',
			'article_category_id' => '31',
			'title' => 'Nepali Market Is Strategically Very Important For Us',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>Indranil Sinha,</strong> the Director of Exports of Whirlpool India Limited was in Nepal recently, for the opening of two exclusive Whirlpool showrooms. He handles the international export of Whirlpool for South Asia. In an interview with New Business Age, he talked about the prospects of Whirlpool products in the Nepali market. Excerpts:</p>
<p>
	<strong>How is the trend of sales for Whirlpool products in Nepal?</strong></p>
<p>
	Nepal has been one of the best performing markets for us in the last few years. However, I think the penetration of home appliances is still very low in Nepal. In Kathmandu, the market is good, but outside the valley, it's not much to write home about. We have been present in Nepal for the last 15 years, so we have a good network. We try to make sure that the products reach all over Nepal. Our appliances have made a good name for themselves. I wouldn't say the market is very profitable because if the prices are high, the buyers switch to other companies very easily. We are not very conscious about profitability right now; we are just trying to develop a brand image.</p>
<p>
	<strong>The Nepali market is relatively a small one. How important is it for your portfolio?</strong></p>
<p>
	I don't think the market is really small. With a population of nearly 30 million, it's quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here. In Sri Lanka, the population is about 20 million, but the sale is around 250,000. In Nepal, the market is growing and so is our market share which is about 15 to 20 per cent. As the market grows, we want to maintain or even improve on our market share. In about five years, I see the market doing very well. Therefore, the Nepali market is strategically very important for us.</p>
<p>
	<strong>How tough is the competition? <br />
	</strong></p>
<p>
	The competition is very tough everywhere today, and Nepal is no exception. A number of Asian brands, Japanese or Korean, are strongly dominating the market. But for European or American brands, we are comfortably placed at number one. All our Asian competitors are dealing in home appliances and consumer electronics like television, mobiles, laptops, monitors and other products as well. But our focus is only on the home appliances. We basically manufacture products that are used around the kitchen and make life easier for the users. You might not see flashy lights and a lot of buttons in our products, but you will get genuine benefit and convenience from them.</p>
<p>
	<strong>What are the unique features of your product? What is it that gives you an edge over others? <br />
	</strong></p>
<p>
	We have a refrigerator model in which we have used a technology that keeps food fresh even if there is a power outage for 15 hours. We discovered that generally the compartments of the refrigerators are opened every 10 or 15 minutes in a household to fetch vegetables, water and other items. The door opens and closes so many times and at the same time, hot air goes in. So the refrigerator has to consume extra power to keep things cool, which is not efficient by any means. We have come up with Proton series of refrigerators where we have separated the vegetable storage compartment in a drawer at the bottom and the refrigerator compartment remains at the centre. So, the whole refrigerator does not need to be opened all the time. This makes the refrigerator consume less power. We have applied similar innovations for other appliances as well.</p>
<p>
	<strong>What are your future plans for the market here in Nepal? <br />
	</strong></p>
<p>
	We have recently opened two exclusive showrooms in Kathmandu. This will definitely help in making our product more visible. We are specially focusing on the market in Kathmandu, where there are opinion makers and trend setters. All the latest products will be there in the showrooms in the capital. We are also offering new schemes for the buyers and will be bringing in new products as well. We have new designs of kitchen chimneys, hobs, water purifiers, clothes dryer and microwave ovens.</p>
<p>
	<strong>Is there a possibility of Whirlpool establishing a manufacturing unit in Nepal? <br />
	</strong></p>
<p>
	Right now, we don't have any such plans. We already have three factories in India and two in China, so opening a manufacturing unit here will not be economically feasible. But still, it's a probability that we may open a facilitating office here in Nepal because at present, we are operating through a distributor.</p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'With a population of nearly 30 million, Nepali market is quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here.',
			'sortorder' => '420',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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	(int) 8 => array(
		'Article' => array(
			'id' => '513',
			'article_category_id' => '31',
			'title' => 'Increased Awareness Of Incoterms Would Help Local Banks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="1" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/pavel andrle.jpg" style="width: 241px; height: 463px;" vspace="5" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Pavel Andrle</strong> is Secretary of the Banking Commission of International Chamber of Commerce-Czech Republic (ICC-CR) and regularly represents ICC-CR at the ICC Banking Commission meetings abroad. He has been deeply involved in the revision of UCP as a member of UCP 600 consulting group formed by over forty experts from all over the world. Andrle has also been closely involved in the revision of URDG 758. He has participated in the development of ICC-CR certified course Incoterms 2010 Masterclasses and currently serves as one of the ICC-CR official trainers for Incoterms 2010. He has been appointed ICC-CR expert to reply to enquiries related to Documentary Credits and Trade and Structured Finance development of technical assistance consultancy services of ICC-CR to banks, carriers, insurance companies and traders. Andrle was in Kathmandu recently and led a two day seminar for bankers on Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees&nbsp; URDG 758 organised by National Banking Training Institute (NBTI). In an interview with New Business Age, he talked about the features and benefits of the banking commission documents he trained the seminar participants on. Excerpts:</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Please tell us about this seminar that you had for the Nepali bankers.</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Well, it was a very successful two day seminar and about 30 bankers representing more than 20 banks participated in this programme. We focused on issues such as Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees URDG 758. The seminar was very useful for professionals working in the trade finance sector and dealing with documentary collections and documentary credits that a bank guarantees. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Could you please elaborate on Incoterms 2010?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Incoterms which translates to International Commercial Terms are developed by International Chamber of Commerce. Incoterms are part of Uniform Customs Practice (UCP) 600 widely practiced and followed by banks worldwide for mostly out of country transaction through Letter of Credits. The Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods and are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000. In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules applies regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation over water. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How important is URDG (Uniform Rules for Demand Guarantees) 758 and what does it imply?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The URDG 758 is a set of contractual rules that apply to demand guarantees and counter-guarantees. As the URDG are contractual by nature, they apply only if the parties to a demand guarantee or counter-guarantee so choose. The URDG can adequately provide an operational framework for any situation where a demand guarantee is required, whatever the situation is in the public or the governmental sector involved. Agreeing to issue a guarantee according to URDG spares the parties the effort of drafting extensive clauses to describe the independence of the guarantee, its irrevocability, its non-assign ability and the guarantor's duties and more. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the benefi ts with using URDG 758?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Once the URDG are incorporated in the guarantee or counter-guarantee text by contractual reference to the URDG, they are deemed to be entirely incorporated, unless specific article(s) are expressly excluded or amended. A URDG guarantee and counter-guarantee enter into effect from the date they are issued, unless their terms expressly postpone their entry into effect to agree with a later date or the occurrence of an agreed event. Accordingly, no demand for payment can be presented until the guarantee enters into effect following the occurrence of a specified date or event indicated in the guarantee.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How will these programmes help the Nepali banks and bankers? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks to exercise acceptable international norms in issuing and accepting Letter of Credits. Besides, many issues arising out of international trade can be mitigated. The programme will help the banking staff working at the Trade Finance Department of their respective banks on recent issues related with issuing and accepting Letter of Credits and how to quote and implement Incoterms in the Letter of Credits.</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><br />
	</span></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks.',
			'sortorder' => '419',
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	(int) 9 => array(
		'Article' => array(
			'id' => '512',
			'article_category_id' => '31',
			'title' => 'Our Product Is Of National Interest For Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="left" alt="" height="261" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/subhaog ghosh.jpg" style="margin:10px;padding:10px;" vspace="5" width="420" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Subhamoy Ghosh</strong> is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer. Ghosh joined Palfinger India on in June 2010 and looks after product management and business development of Palfinger Cranes in India along with overseeing finance and human resource functions. He was in Nepal recently to understand the market demands and requirements for Palfinger Products here. In an interview with New Business Age, he shared his understanding of the Nepali market and plans for Palfinger here. Excerpts:</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Can you tell us something about your products? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">We come from the field of transport solutions and our job is to make easy and quick loading as well as unloading of a truck so that it can go for another trip without wasting time. Transporters earn money when they make more trips and our main job is to give transport solution to the transporters. Besides being a lifting and shifting solution provider, we are a multiproduct group having seven major products. We are making our entry in Nepal with the truck loader crane and, in a couple of years from now, we will be introducing more from our product line. The Nepali market has some experience of using second hand Japanese trucks which come fitted with these kinds of cranes. On our part, we will be bringing two cranes: Stiff Boom Crane and Knuckle Boom Crane. Normally, cranes are known for loading and unloading using hooks but this one can perform even clamping and grabbing operations. The Knuckle Boom Crane can even drill a hole. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Is there any special reason behind choosing these two cranes specifi cally?</strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">In Nepal, everything has got stagnant and the market has become slow in the last five years. I believe that it is a good time to become better and catch up with the rest of the world. Nepal needs to develop its infrastructure very fast by constructing more roads, bridges, buildings, modernised airports etc. If the industrialisation in Nepal has to take place, abundant infrastructure needs to be there first. These cranes combined with trucks can play a fantastic role in infrastructural projects because these can lift materials and deliver to the projects. As Nepal is a geographically difficult terrain, it is not possible for any project to keep materials close to its vicinity. With truck loader cranes, we are adding versatility as they are more suitable for rental companies. Owning a crane independently may not be economically viable for companies in a small market like Nepal. Besides private players, the public firms too can be better served by these machines. Mechanisation is the solution for efficiency and can save human resource for other purposes while ensuring safety at the project sites. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How can small and large projects alike benefi t from these equipments? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">These can be used mainly in medium to large projects since they may not be cost effective for small projects due to the price factor. We are in the initial stage and trying to increase visibility of the product in the market as people should know what they can do with this kind of equipment. This crane can be used in various aspects such as construction, electrification, municipal waste, cargo distribution, at factories etc. So, we want to let the market decide how can the crane be best utilised as per various needs. Our job as a supplier is to give exposure to the market about the functionalities of these cranes. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you see the market prospects in Nepal? Are there any competitors in the Nepali market for you?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Our ambition is to introduce 20 to 25 cranes in the first year in Nepali market for various applications. Then we can expect to grow along with the economic growth of Nepal. In advanced countries, manpower is expensive and it is not ready to do manual jobs and even the law prohibits it to some extent. So they have one crane for every five to 20 trucks whereas in Nepal and India, there is not even one crane for 100,000 trucks. I believe that 20 to 30 cranes should be fitted to every 100 trucks deployed. As of now, there is no competition for us in Nepal for new trucks and new cranes. The only competition is from the used trucks which I believe is not good for Nepali environment as they do not even meet environmental safety standards. If the import of these used trucks can be stopped, we will have no competition at all. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>After sales service becomes a major issue whenever new equipments are launched. How do you plan to address this? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is the main reason why we have selected an able partner in Infratech. They have a strong presence in the market and enjoy recognition among customers. They will be further trained and groomed for this purpose but most importantly, these are maintenance free vehicles. Customers can not damage it even by choice as it has a host of safety protections, however, we don't want to take any risks and hence, we will also have a spare parts shop for the machines locally.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to establish your brand image in Nepal? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">What we do in any new market will be done here as well. Once the dealership is announced, we will try to reach our customers through various media vehicles. We have certain branding plans targeting our users and customers. We normally try to reach as many potential customers as possible and as frequently in a year. We will organise likeminded customers meet, for example, one meeting for construction people while another for government officials. We believe that communication exercises will help us establish a decent brand image here in Nepal. <img align="right" alt="" border="1" height="201" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ghosh 2.jpg" style="margin:10px;padding:10px;" vspace="5" width="144" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the challenges you see for yourself in the Nepali market? How do you plan to overcome them?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">From a commercial point of view, the duty structure is unimaginably high particularly for a non-manufacturing country like Nepal. Such a heavy duty is actually bound to put a lot of pressure on buyers since they might be discouraged to buy such products despite wanting to have them. Secondly, there is almost no general awareness about this product so convincing the customers on a priority basis will be a big challenge. For the commercial solution, we have to meet the government of Nepal to see if anything can be done because this is a product of national interest for the country. It is not for somebody's personal use and promises to add value to the growth and development of Nepal. Educating the market is our duty and I hope that our marketing efforts and visible involvement in the market will ensure this.</span></p>',
			'published' => true,
			'created' => '2011-11-16',
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			'description' => 'Subhamoy Ghosh is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '511',
			'article_category_id' => '31',
			'title' => 'The Nepali Market Is Dominated By SMEs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="bottom" alt="" height="357" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/shinji tada.jpg" vspace="5" width="198" /><img align="bottom" alt="" height="359" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/amit ali.jpg" vspace="5" width="199" /><strong><br />
	<br />
	Printers from Brother were available in the market for quite some time. What is the motive of officially launching the new line-up in the market now? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We were available for the last two months but we were still continuing with the current line-up. A couple of new models were brought a few months back and now the entire line-up is available. We decided to organise a formal launch now because we have changed this line up for the first time in three years. Laser printer comprises almost 90 per cent of our business so it is very important for us. Once the line-up was fully available, we decided to introduce the range formally in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you analyse the Nepali market for your products? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Tada: This is an emerging market. It has potential to grow in the future but so far, this is a price sensitive market. So, we have launched products that are specifically targeted at emerging markets. I think with this range, we can achieve good results and gain more market share. <strong>Ali: </strong>I think the entry level models three-in-one and fourin- one printers have the highest sales prospects in Nepal because these are products that are very popular already. We want to sell more colour and high end products for corporate users.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you compare the Nepali market with other Asian markets? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> I think that the customer profile is different in Nepal. In other markets, there are more corporate houses and big companies who are our customers. But, the Nepali market is dominated by small and medium enterprises (SMEs). There is very low presence of foreign investments and no big multinational companies whatsoever. This is one of the biggest differences. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> In Asian markets, we have different types of countries ranging from Australia, a very developed country to Vietnam, an emerging country. The main difference is in the profile of customers. Nepal is a little less developed compared to other Asian countries like Malaysia and Thailand which are better developed. They have strong corporate customers who are well educated. They are definitely cost conscious but they also know the importance of warranty. In Nepal, for example, around 90 per cent users depend on refill for laser products. This market needs a lot of education. A refill may save cost in the short term but over a period of, say, five years; it turns out to be complicated and damages the machine making it an expensive proposition. Our approach to the Nepali market is the same as in other regions because we are trying to enhance the education and awareness level of the customers. In terms of market growth and potential, this market has better prospects than any other Asian countries because they have already reached a certain level of penetration. The IT penetration is still low especially in the rural areas. We are optimistic that over the next 10 years, the IT sector will grow tremendously. Even the government sector has minimal exposure to IT so hopefully it may invest more in the next five years and we can grow along.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What is your strategy to cater to home as well as corporate users?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> The corporate houses are our main target customers especially SMEs. This can prove to be the strongest market segment for Brother. Along with a few big companies, there are many SMEs in Nepal. These laser products rightly suit our target customers’ needs and that’s why we have introduced these products here. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the specialities of Brother Products compared to other similar products?</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali: </strong>There are three main reasons why Brother Products are known all over the world: (a) Quality, (b) very easy to use products and (c) strong and reliable products. Our products are popular in the USA because they are easy to use and install and it is our biggest market in small office segment. In case of Nepal, we have seen the results over four years now and our products are also being used in very remote regions. We are bringing in laser products which are customised for Nepali condition which we don’t sell in another region, for example, the Gulf countries. These products are customised for Nepal’s voltage and electricity situation making them very strong and reliable for usage in remote areas as well. The Brother Products come with a threeyear warranty and we believe that this will appeal especially to the corporate customers. They can have good quality, stable and strong machines as well as service and maintenance which is taken care of, for three years. We are very balanced between price and performance as we are not the cheapest brand available but we are also not the most expensive one around. We offer a combination of good price and performance to the consumers.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Your products are said to be environment friendly too. Tell us more about it</strong>. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We are committed to make environment friendly products and the Brother Products have received Ecomark and Blue Angel certification from Europe. This is the toughest environment certification to get anywhere in the world and now-a-days in Europe, you cannot participate in tenders unless you have this certification. All our products are certified which means that the parts, components and materials we use to make our products are environment friendly and bio-degradable as much as possible. Our products consume very less power and, in laser products, we use separate toner and drum technology which means the materials used in those items are less dense and hence, more easy to recycle. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> We are trying to be an eco-friendly company and we are now producing different models that can print on both sides of a paper and thus ensuing lower paper usage. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is your volume wise sales target for the market here? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We keep an annual target for this market like any other market. Based on our distributor’s commitment and comfort level, we decide a target with mutual consent and increase it every year. So, in the last four years, we have grown four times and our plan is to grow four times further till 2015. We do have a very ambitious target and hope to meet it.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to meet this target?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><strong>Tada:</strong> We want to grow along with our distributors by taking care of the market. We have prioritised the Nepali market as it has a good potential. To make our business sustain and retain our customers, we need to provide good service to our customers besides sales. Once they buy a machine from Brother, the service they get from us determines whether they will choose to be a regular customer of Brother. The sales target for certain emerging markets will be introduced in due time and we believe that we will be able to achieve it.</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'Shinji Tada is the Managing Director of Brother International (Gulf) FZE (BI) and Amit Ali is the Deputy General Manager of Printing and Solutions Division at BI.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '510',
			'article_category_id' => '38',
			'title' => 'HR Budget',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need, cost is considered as a major factor. We all like saving of time and money at all levels whether in personal life or in business circumstances. The purpose of business entity is the profitable manufacturing and/or supply of goods and services to fulfill economic necessities ensuring satisfactory returns to all stakeholders mainly known as economic and social suppliers, that is,. investors/owners, members/employees of the enterprises, customers, and the society. Hence planning and budgets are developed in business enterprises to analyse and evaluate managerial decision making on account of spending and output achievement.&nbsp;</p>
<p style="text-align: justify;">
	 </p>
<p>
	Human Resources Management, in the process of effective utilisation of the people resources towards achievement of overall organisational goals; performs number of functions broadly named as:</p>
<ol>
	<li>
		Organisational Planning in support of determining its need, structure and relationship strategies. </li>
	<li>
		Staffing covering headcount planning, recruitment, selection and placement, job designs and profiling, orientation and separations.&nbsp;</li>
	<li>
		Skills Enhancement comprising of training need analysis, training activities and evaluation of programme offered. </li>
	<li>
		Compensation &amp; Benefit processing job evaluation, designing and operating suitable salary package/ structure and variable pay package. </li>
	<li>
		Motivation starting from performance appraisal moving through recognition to financial and nonfinancial incentives. </li>
	<li>
		Employee Relations beginning from discipline, counseling, grievance handling moving through recreation and welfare activities, eligibilities (leave, provident fund, gratuity etc) medical services to collective bargaining etc</li>
	<li>
		Personnel record comprising personal information gathering, database development, talent inventory etc making complete employee record. </li>
</ol>
<p>
	Therefore, the cost of human capital represents one of the largest operating expenses into any business. It impacts financial results indirectly in the form of recruitment, motivation and morale, skills enhancement etc impacting quality of operations that supports building customers’ confidence leading to customer retention resulting into revenue/profit. Developing effective human resources budgeting strategies leverages organisations to improve accuracy in cost prediction, control mechanism over budget and realising significant savings. HR budgeting brings together data from different sources, for example, HRIS (Human Resources Information System), Payroll, Performance Management, Sales forecast etc and generates full picture of current and future business positioning. The HR budget is operating budget within the organisation. </p>
<p>
	Budgeting involves information and data to enable finance project organisation’s overall objectives and profitability. The finance unit of an enterprise determines budget structure element and HR unit generates elements of people cost. There are mainly two methods that are applied in budgeting: a. Generic incremental method: Using current budget, next budget is developed through adjustments on each item in close consideration of expected business move, market inflation, consumer/customer sentiments, past success rate etc. b. Zero-based budgeting method: The process begins with zero as base and each item included in the budget is justified before inclusion. It is an organised approach to decide the funding level and performance level in the context of scarce resources and new priorities from scratch – as if no operations exist (before). Whilst creating human resources budget, absolute necessary attention is expected on income of the business moving to investment on people resources. Line items of expenditure are defined by object classes, that is, charts of accounts. While talking of HR budget, such line items include: • Headcount plan, that is, Number of employee projected (includes organisation structure) • Changes projections in compensation and benefits (inclusive of overtime payments) • New benefits/programmes planned • Assumptions around employee turnover • Assumptions/guidelines for realistic expense level • Social security for employees and corporate citizenship programmes • Other changes in policy, business strategy, law or regulation that may impact costs • Skills e n h a n c e m e n t / p e o p l e development/training cost, and • Cost control and reduction via consulting, savings from compensation, benefits, turnover reduction, developed internal trainers etc Projections are based on actual costs incurred in the past or guesses, depending on the nature of the expense and the data available.</p>
<p>
	It may be difficult to project in the circumstances of significant fluctuations in turnover and staffing needs. Thus HR associates need to gather every source of available data in order to make educated projections. It would also be wise to obtain feedback on essential HR moves from other functional heads that ensures buy-in of projections in view of instilling confidence on the inclusion of their expectations from HR. These are crucial in working out lowcost benefits contributing to increased employee satisfaction. With the shift from traditional to professional working of HR, clearly defined mission, vision and values for HR function becomes a path finder for people managers in streamlining process and securing alignment of total team towards one direction. Currently, HR function in any organisation is evaluated on the basis of people productivity and hence it is widely suggested to work around productivity improvement, product/ service quality delivery and instilling customer satisfaction that undoubtedly secures customer retention and contributes to sales growth with improved profitability. This enables HR to track revenue and profit per employee, that is, a comparative study of employees output against expenses per employee. Analytical Budgeting provides opportunity to HR practitioners around comparing achievements with competition and one’s own past performance that opens the door for continuous improvement. </p>
<p>
	The essence here lies in successful measurements of HR functions assignments and performance as it has a direct impact on the organisation as a whole. The recent studies and human scientists have directed a need to establish a clear numerical relationship between people management and financial performance as it would support translation of strategy into operations, managing and controlling overall performance down to business transactions as a result of improved decision making across the organisation. From an entrepreneur’s view point, employee shares of the rewards of production whether cash or other form of earning are commonly referred to HR expenditure and considered as “Cost”. HR practitioners need to identify the areas of businesses that are growing and work with responsibility centres in such areas. </p>
<p>
	Volunteer themselves around HR support in elimination of barriers experienced by such areas of business in improving productivity and margin. Also establish review process to evaluate impact of HR interventions and once positive impact is visible (which is sure to happen), the business head becomes the HR advocate with the Finance head that ensures full considerations and funding HR initiatives. HR strategies are never stagnant, it is most flexible and shifts focus with changes experienced whether economic or otherwise. </p>
<p>
	Therefore, it would be wise for HR function to prioritise their programmes and services focusing most important areas that have high and visible impact on people productivity as well as producing immediate return to make sure that their budget is accepted as value addition instead of cost. It needs to shift its focus to growth areas that can be served with prioritised HR services. This will improve response time and customer service in total too that will be added advantage for HR to be perceived as responsive productive unit and eradicate the common perception of unresponsive overhead unit within the organisation. To conclude, HR needs to demonstrate competitive advantage for the business in total from the programmes and approaches adopted for budgeting defining difference in ways and means for achievement that confirms result much superior than ever before so that confidence of total business is secured to maintain HR programmes.</p>
<p style="text-align: justify;">
	<em>(Dr Karna is the Executive Chairman of MARK Business Solutions Pvt Ltd and Ad Abhyas Marketing &amp; Communications Pvt Ltd. The article is based on various research reports and his practical experiences as management practitioner.)</em></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'keywords' => '',
			'description' => 'Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need,',
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	(int) 12 => array(
		'Article' => array(
			'id' => '509',
			'article_category_id' => '38',
			'title' => 'Ways Of Appraising Employees',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development. As the last fiscal year ended just a few months ago (i.e. at mid-July), many organisations are now conducting performance appraisals in order to evaluate the yearly performances of its employees. In this context, Real Solutions organised HR Kurakani on ‘Ways of appraising employees’ in order to discuss how to conduct appraisal effectively. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">HR practitioners from diverse fields discussed the ways of appraising and the different ways that it can be accomplished: <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Methods <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Every organisation has its own method of appraising an employee’s performance but some of the popular methods used by various organisations in Nepal are 360 degree appraisal, observation basis and balanced scorecard among others. The performance appraisal forms are filled either manually or through use of certain software packages developed for the purpose. Filling the PA forms should not be biased; but in practice, favoritism does exist within organisations. Therefore, PA should be transparent in order to bring out best results. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Forms <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The participating HR practitioners highlighted on designing questionnaires as per respective job descriptions and found it necessary that they are associated with organisational goals. The questionnaire should be able to analyse different aspects of an employee like communication skills, punctuality, competence, knowledge and overall behaviour among others. Another aspect to be considered while designing the PA forms is the language. The language should be simple, clear and must include both English and Nepali languages and sometimes in other language(s) too, in order to make PA process easier. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Trend <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">It was felt that most of the organisations in Nepal do not carry out appraisals while some others do it just for the sake of doing it. The organisations that conduct appraisals systematically and effectively include multinational companies and international nongovernmental organisations (INGOs).</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Outcome</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">If an organisation conducts PA and takes no action based on the result received, then there’s no point in going through the entire process. The action as a result should not always be an increment in terms of monetary compensation even though it is one of the major aspects. Besides monetary reward, the appraisal outcome can also include non-monetary rewards such as providing holiday packages, training facilities, appreciation and rewarding best employee among others, based on their performances. An increment in salary is expected on a yearly basis when PA is conducted. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The HR Kurakani participants discussed salary increment criteria such as performance based increment, increment as per government norms, increment as per inflation rate and increment considering an organisation’s values and growth. It was also discussed that yearly PA is not the best way of judging and rewarding employees. If a system can be introduced to appraise employees on a monthly basis, it could be more effective. The participants discussed the possibilities and practicality of such an arrangement. Since it requires greater time investment, the participants suggested conducting biannual PAs and pointed out different ways that can assist appraisals such as critical incident recording, electronic tracking system, introduction of cards for warnings in the event of mistakes committed and encouragement in case of perfect job, external evaluation etc. (The write up is based on an ‘HR Kurakani’ discussion on the topic ‘Ways of Appraising Employees’ conducted by Real Solutions Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The participants at the discussion included representatives from NGOs &amp; INGOs, Hotel Industry, IT and Communication, Automobile Companies, Trading and Service Industries as well as a freelancer. Shailendra Raj Giri, Managing Director of Real Solutions acted as the moderator for the discussion while Nibha Shakya, HR Executive of the company coordinated the event).</span></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'keywords' => '',
			'description' => 'Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development.',
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	(int) 13 => array(
		'Article' => array(
			'id' => '508',
			'article_category_id' => '34',
			'title' => 'Indian Interest Rate 5 Times Higher Than Nepal’s',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank, Nepal’s average real interest rate between 1975 and 2010 remained at mere 1.32 per cent. Similarly, record of Reserve Bank of India (RBI) says average interest rate in India during the same period was 6.68 per cent. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepal had negative real interest rate (after adjusting for inflation) while India had positive real interest reate in most of the years during this period. Economists say that low real interest rate discourages savings and thus slows down the economy’s growth rate. Dr Chiranjivi Nepal, an Economist said that Nepali authorities must consider Indian policies while formulating monetary policy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">He added, “While Indian central bank has been diligently trying to make sure that the real interest rate is positive, Nepali policy makers seem unaware of the seriousness of this issue.” RBI, in the last 18 months increased bank rate more than 12 times to control inflation and maintain the real interest rate at positive side. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">However, Nepal’s bank rate has remained constant for a long time while the inflation has doubled in last five years. When annual consumer inflation reached 15 per cent, two years back, real interest rate was negative by more than 10 per cent. According to Dr Nepal, the liquidity crunch faced by Nepal’s banking system recently was due mainly to the capital flight induced by the negative real interest rate in Nepal.</span></p>',
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			'description' => 'Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank,',
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	(int) 14 => array(
		'Article' => array(
			'id' => '507',
			'article_category_id' => '34',
			'title' => 'International Trademark For Nepali Coffee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for trademark registration in 10 countries including USA, Canada, European Union, Switzerland, Norway, Australia, South Korea, Japan, Hong Kong, and Singapore. Shyam Prasad Bhandari, President of FCT said Nepali coffee is sure to get trademark in many those countries. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Bhandari said a unique trademark is being developed so that Nepali coffee can be easily identified which in turn helps to enhance the trust level and promote it in the international market. He said it takes six to 18 months for approval and FCT is optimistic to get this brand recognition tool as the demand of Nepali coffee is now growing in these international markets. In the second phase, trademark will be registered in the countries like Bhutan, China, Taiwan, Kenya, UAE, among others. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">It has been agreed with Trade and Export Promotion Centre that 70 per cent of the registration cost will be borne by the government and the rest by the traders. Registration of trademark in 10 countries would cost something about Rs 5 million. After this global recognition, all the coffee produced in Nepal will bear an uniform logo. Currently, different producers are using different logos developed by them in isolation .</span></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'keywords' => '',
			'description' => 'Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for',
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$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '522',
			'article_category_id' => '42',
			'title' => 'Flat In Festival (Nepal Stock Market Review For 25 September To 25 October, 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="232" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram.jpg" style="width: 188px; height: 232px;margin:10px;padding:10px;" vspace="5" width="188" />The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session. The benchmark Nepse index plummeted 3.59 points or 1.09% to close at 327.99. The highest point during review period was on 12 October with 334.49 while the lowest was on 23 October with 326.42. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Normally, the festival season causes outflow of money from the stock market. However, this year it was not so. Many companies have already declared their earnings and announced the dividend rates while others are preparing to do so. The book closing days are also coming around for the AGMs. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">All these are making the investors to heed the market movement more closely. Investors are dismayed at the delay in the operation of CDS and Clearing Ltd. the Commission for the Investigation of Abuse of Authority (CIAA) has started investigation on the suspicion that there has been abuse of authority in employee recruitments and in some expense of this company. Regulations of CDS and Clearing Ltd are also pending approval from the Securities Board of Nepal (SEBON). One positive development of the period is the appointment of SEBON Chairperson. Newly appointed Chairperson Babu Ram Shrestha has already taken over the responsibility and it is hoped that the CDS Company will get its regulations approved soon. During the month, a number of financial institutions made some definite progress towards their plan of merger. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a result, the stock exchange has halted trading in the stocks of those companies. That has subdued the trading volume. Hence it can be said that the market will show sideways movement for few coming sessions. Performance by Sector Banking sector that has been dominating the volume of trade in the Kathmandu exchange lost 8.65 points or 3.09% to close at 279.69 during the review period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Insurance sub-index plummeted 5.53 points or 1.39% to 398.14. Finance sector receded 4.54 points or 1.66% to rest at 272.88. Hotel sector descended 3.59 points along with 3.10 points decline in development bank sector to 379.01 and 278.90 respectively. The others sector shed 1.17 points or 0.24% to settle at 26.94. However hydropower sector registered a heavy growth of 44 points or 7.23% to reach 608.67. <img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/1(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Trading sector gained 4.63 points or 1.85% to close at 250.71. Sensitive index that measures the performance of 117 blue chips descended 1.78 points or 2.22% to 80.02 while the float index calculated on the basis of real transaction skid 0.34 points to 26.94. Total of Rs. 474010954 was realized during the review period from 3000729 units of share traded via 18846 transactions. <img alt="stocktaking" border="1" height="295" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/2(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="519" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The accompanying figure illustrates the sector-wise distribution based on total amount of trade. As usual, the banking sector accounted for 49.62% of total trade. Likewise, hydropower sector accounted for 22.95% while development bank covered 11.07%. Finance sector accounted for 7.39% and remaining sectors made up for the rest. Technically, Simple Moving Average (SMA) is dominating the market as 200 days SMA is far from the index while 30 days SMA is moving together with the index indicating further possibility of sideways movement for few more sessions. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em>(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</em></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em><img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/3(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</em></span></p>',
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			'created' => '2011-11-17',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session.',
			'sortorder' => '427',
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	(int) 1 => array(
		'Article' => array(
			'id' => '521',
			'article_category_id' => '57',
			'title' => 'Brand Endorsement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sajag karki(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal. Keeping in mind the economic and financial state of the nation, using brand ambassadors by business and companies as a means of branding is highly commendable. Companies are attracted to this sort of communication because celebrities have huge fan following and popularity which cuts across all demographics helping companies to build goodwill and boost sales figures. The use of celebrities in advertisements has been there in Nepal but endorsements are a recent phenomenon and are starting to give fruitful results for the investing companies. However, a very prudent decision must be made while choosing the right personality to suit a brand for a perfect match. One such popular brand ambassador in Nepal is Rajesh Hamal for Jagadamba Steels whereas he can also be seen in numerous other advertisements. It is a logical match as Hamal’s macho personality suits the endorsement of a robust product such as steel. Hamal’s public image has been exploited to give maximum mileage to the brand with positive feedback from the customers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Such big celebrity endorsers get a handsome remuneration package for the endorsements as well. One such high profile endorsement is that of Manisha Koirala for Home TV. Since the company has merged with Dish TV, Manisha and MaHa Jodi combinely promote Dish Home TV. MaHa Jodi’s comic approach along with Manisha’s aura has suited well with an entertainment related product. The MaHa duo is also the face of NLIC life insurance and Ambe Steels. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Their ever popular image has certainly helped awareness regarding the aforementioned companies but it seems a mismatch between the type of product and the personalities that the comedy celebrity duo presents forth. Apparently, life insurance and steel related product need serious approaches and use of comedy actors does not seem to do justice to the personality of the brand. Another comic actor Deepak Raj Giri is the face of Sikhar Shoes while Rekha Thapa is the brand ambassador for United Telecom Ltd (UTL). The actors seem to have done wonders for the respective companies as their popularity and likability has leveraged their endorsements. Similarly, youth icon Nima Rumba is the face of several brands in Nepal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Hence, the significance of using brand ambassadors has been felt recently in marketing products and services. Talking about celebrity brand ambassadors for multinational companies like Nike, Adidas, Coke, Pepsi etc, there has been a lot of buzz surrounding them as well. Michael Jordan’s endorsement of Nike is one of the most successful till date. He has also endorsed other successful brands such as Coke, Chevrolet, McDonald’s etc. In India, Coke has used Amir Khan and Aishwarya Rai in its endorsements whereas Pepsi being a young brand has stars like Ranbir Kapoor and Katrina Kaif to communicate the brand’s personality. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Shahrukh Khan is one of the celebrities with the most number of endorsements with numerous big brands under his belt. Not to forget, Amitabh Bachchan and the Bachchan family who combinedly endorse more than two dozen popular brands. As celebrities too are human beings who make mistakes, the negative effect of their personalities may have adverse affect on the brands they endorse. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is why companies are highly sensitive while choosing their endorsers. An alternative to celebrity endorsement is a character or mascot that represents a brand. Brand characters help grab attention as they are often colourful and promote eye candy factor. It also breaks the clutter in the marketplace and communicates key product benefits. Some popular examples are Pillsbury’s Poppin’ Fresh Doughboy and Eveready’s drumming pink bunny for their Energizer battery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Brand endorsement is not a cheap option, it's an expensive affair yet companies all over the world are attracted towards this form of marketing as it helps build their brands in the long run. With the rate at which Nepal is progressing in the advertising field, some interesting and innovative marketing approaches can be expected in the days ahead. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><em><span style="font-size: 14px;">(Karki is associated with JWT (Thompson Nepal Pvt Ltd). The article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com)</span></em></strong></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-11-01',
			'keywords' => '',
			'description' => 'Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal.',
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	(int) 2 => array(
		'Article' => array(
			'id' => '520',
			'article_category_id' => '41',
			'title' => 'The Changing Beer Market Dynamics',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;">From premium and international beer brands to locally brewed Nepali strong beer brands Nepal's beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices and price factor are among the overriding reasons for this shift. Consumers are spoilt for choices in today's market scenario and hence, they have started to prefer indigenous beer brands, asserts K P Rizal, Deputy General Manager at Sungold Brewery (Nepal) Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">This change in consumption trend has ensured that Gorkha Brewery Pvt Ltd, the market leader, has turned out to be the biggest loser in the bargain. It enjoyed an absolute monopoly in the market with over 80 per cent market share not too long ago with established and popular brands namely Carlsberg, Tuborg and San Miguel ruling the marketplace. Over the last couple of years, however, the brewery has seen a turnaround in fortunes primarily due to the change in consumers tastes and sense of pride attached with local brands. A market estimate suggests that Gorkha Brewery has seen its market share plummet sharply during this period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"The market has shifted to lesser priced brands and it has led to the leading brewery losing market share considerably," confirms Kishor Bhattarai Chief of Sales &amp; Marketing at Himalayan Brewery Ltd. Experts allege that international brands took the market for granted and hence, created room for local brands to find a stronger foothold in the market. More consumers are increasingly opting for strong beer brands that cost less as well as promise faster intoxication. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The price of a beer is what is truly driving the market at this point of time. "The mindset of the consumers is to buy a beer with high alcohol content at cheap price," agrees Thomas Schlau Technical Director and Master Brewer at Sthapit &amp; Schlau Pvt Ltd. He says people must enjoy beer and there is a need for a culture to develop around beer drinking. Sensing the shift from the premium and international beer brands to indigenous Nepali brands, market leader Gorkha Brewery has indulged in severe price slashing in a bid to regain lost territory, reiterate competitors. So much so that its flagship brand Gorkha is now the cheapest beer brand available in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Though, of course, the brewery continues to be the market leader due to its strong show in the premium segment which it monopolises with no competition in sight by a long way. Sthapit &amp; Schlau that began production in May 2010 by using the production facility at United Breweries Nepal Pvt Ltd in Hetauda Industrial district, started with a modest 2,500 cases a month. Within a year-and-a-half, it has registered a 100 per cent growth, claims Schlau, and produces 5,000 cases a month during the 'beer season' between March and October. We have been promoting both our brands Coblenzer Pilsener and Coblenzer Marzen as natural beer and it took us some convincing to sell initially but our hard work is beginning to pay off, he says. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It started off with distributing in cities such as Kathmandu, Dharan and Biratnagar and has moved on to cover Pokhara, Narayanghat and Gorkha under its distribution network this year. The brewery, buoyed by overwhelming response from several sections of the market, plans to aggressively expand its network in the coming years. Sungold Brewery that uses up, on an average, 60-70 per cent of its 140,000 cases-a-month-capacity brewery at Damkauli in Nawalparasi is currently growing at 25 per cent per annum. About two years ago, we were growing at 100 per cent annually but due to the declining growth of the industry, our growth too has been affected to an extent,” admits Rizal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The brewery currently enjoys 20 per cent market share, he claims. It is now focusing mainly on two brands Nepal Ice (started in 2007) and Real Gold (started in 2008). While Rizal concedes that a brand name is something to reckon when it comes to international brands, he is confident that his brands will hold their own in the market as time progresses. The brewery has a strong distribution mechanism in place with 200 distributors across Nepal. He elaborates, "Distribution and market expansion is a continuous process and market growth and access dictate our distribution strategy." Not content with its impressive domestic show, it is also in the process of developing Nepal Ice as an international brand by exporting it to destinations far and wide such as Japan, USA, UK, Hong Kong, Korea and Dubai. Himalayan Brewery, which is going through a transition phase currently with a new management having taken over operations about a year ago, is already doing decently with about 9 percent of the market share, claims Bhattarai. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"It was immensely satisfying for us to discover that our flagship brand Iceberg enjoys incredible brand recall in the market and it makes our job that much easier," Bhattarai states excitedly. With its brewery at Godavari in Lalitpur, it has around 100 distributors across Nepal and counting. Iceberg also awaits a brand line extension few months down the line. "We are looking at extending the brand to premium segment. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">There is every reason for a domestic beer to provide quality at par with international brands and compete on equal terms," reveals Bhattarai. Brewers rue the fact that advertising wise, they don't have the option of gaining mileage through the electronic media as promotion of alcoholic beverages is banned on this medium in Nepal as per a government directive. "From a marketer's perspective, it is sad indeed that we cannot avail the benefit of advertising through the electronic media," says Rizal. He is, therefore, limited to mainly use BTL (below the line) activities which includes branding of glasses, openers and signage etc, consumer sampling, sponsoring sporting events and musical concerts and, of course, print advertising. Schlau, while choosing 'Coblenzer' (the name is based on Schlau's hometown Coblenz in Germany) as a brand name, hoped that it will go down well with the consumers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">However, as he says, "My calculation was wrong that a foreign (read German) name will get us immense mileage, it took me a little time to realise that people here have an affinity towards Nepali-ism." He too primarily depends on print advertising to promote his beers and occasionally supports events. At Moksh Bar last month, he celebrated 'Oktoberfest', modeled after the famous German beer festival in Munich. On the other hand, Himalayan Brewery, after beginning to function under a new management, started its branding exercise from scratch including developing POP (point of purchase) displays like posters and danglers, says Dhiraj Tuladhar, Brand &amp; Business Development Officer at the Brewery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It has made an attempt to relate Kathmandu beer with cultural heritage by promoting occasions such as Nhu Dan (Newari New Year). "We are trying to cash in on the culture aspect and hope it works for us," adds Tuladhar. While it may appear that Nepali breweries make huge profit margins, they have a different story to tell altogether. Brewers allege that heavily levied taxes including excise duties and VAT are so high that beer drinking in Nepal has become a very expensive proposition for the end consumer. A case (12 bottles of 650 ml each) of Coblenzer Beer invites an excise duty of Rs 624 which translates to Rs 52 per bottle. It is extremely high. Can you imagine that a bottle of beer actually costs more than a full meal at a reasonable eatery? asks Schlau. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He elaborates, While a plate of daal-bhaat may cost you Rs 150 at a regular food joint, you will have to pay Rs 162 and Rs 167 respectively for a bottle of Coblenzer Pilsener and Coblenzer Marzen. Even though the beer industry in Nepal hasn't suffered as much as some of the other sectors in the economy, there has been a considerable decline in its annual growth rate. Enjoying a 40 per cent growth per annum about two years ago, it is now growing at a modest 12-13 per cent annually. Brewers blame this on the economic downturn the country has been facing over the last few years. Rizal blames it on poor financial activity, a result of the economy being on the slow side.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He says, "The real estate business was booming a couple of years ago. Today, restaurant visits have minimised and people are gradually shifting towards strong beer brands due to economic reasons." The slowdown in the economy has taken its toll and impacted the industry to a certain extent with restaurants and pubs registering less than expected footfall in recent times. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">A lot of people for whom spending lavishly weren't a problem at all; income disposal has begun to matter a great deal. A 500,000 cases a month market, the annual revenue of the beer industry hovers around Rs 10 billion mark presently. Beer professionals believe that the industry holds great potential and in the future, with signs of recovery in the economy, it can look forward to better days ahead.<br />
	<br />
	<br />
	</span></p>',
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			'created' => '2011-11-16',
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			'description' => 'From premium and international beer brands to locally brewed Nepali strong beer brands Nepal’s beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices',
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			'article_category_id' => '41',
			'title' => 'Do Nepali Banks Require Additional Capital Injection?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sujit mundal.jpg" vspace="5" width="150" />On a recent trip to Chennai, I met an American lady seated next to me. It was a flight of about two hours and hence a fairly long time to converse. She introduced herself as Gene Turnbull, a senior research scholar at Stanford University; currently working on the financial sectors of emerging markets, mainly focusing on South Asia. What a coincidence? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What is your opinion of the financial markets in this subcontinent? She looked at me for a while and then said, I may need to start from a few not too old past events that plagued the entire global financial system.That's fine with me, I quipped. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She started. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">We need to look back at the global financial crisis which erupted in 2007 and severely damaged the western, mainly the advanced economies; the US was worst affected. That point in time, Asian economies, which are mostly emerging market economies, viz China, India, Indonesia etc were doing fine. They did not immediately feel the heat of the virtual collapse in the western markets, mainly the US and advanced West European Countries. China's dependence on exports was quite substantial and hence some fears loomed large about the sustainability of high rate of growth of the Chinese economy and the valuation of the currency. India was marginally better placed in the sense that the domestic demand continued to be firm and that supported the Indian growth. She further explained that the Asian economies were far more prepared in managing themselves. The governments and regulators also remained alert post Asian crisis of the late nineties. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What do you feel about the financial markets particularly in South Asia? I'm interested to know about Nepal. She continued . Perhaps this is not a good time for the banks, mainly in the west. They are besieged with low growth and erosion in capital stemming from sovereign debt exposures and stricter regulatory pressure. As a result, they are suffering from low return on capital. It looks like that would continue to be the case thanks to enhanced capital requirement under BASEL III. She, however, maintained that the banks in India, China and other emerging markets are more likely to sustain their returns on capital despite increased capital requirements under BASEL III. This will probably create a catalytic effect in attracting more capital in the emerging markets that are experiencing a broader economic landscape. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a sequel to the financial crisis of 2007, BASEL III did set forth revised rules for capital requirements for the banks. The minimum equity requirement, that is, Tier I capital will now be 7 per cent; a sharp increase from the present level of 2 per cent. Total capital requirement ( inclusive of Tier II) will increase from 8 per cent to 10.5 per cent. In addition, there will be a counter- cyclical buffer. To be precise, the banks may be required to operate with a capital in the range of 15-17 per cent in the years to come. You may know that the leading banks in Europe and the US already have capital adequacy of more than 14-15 per cent as mentioned. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The additional requirements under Basel III would necessitate capital injection of significant amount for the large banks in the west. The estimated amount of capital to be raised for meeting Basel III would be to the tune of 475 billion euros. The western banks would have to encounter at least three main challenges in the process of implementation of BASEL III viz firstly, the enormity of Euro Zone crisis, secondly, the slowdown in lending and contraction of balance sheets, and thirdly, stricter regulatory requirements emanating from the respective central banks. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">To tell you honestly, I was enjoying the analysis. She continued. You may well guess that the investors would think twice before putting their money in the western banks as the ROI would shrink, though the safety around their investments might be better than before. So, there would be an inclination for the investors to look towards the east. I asked her, What is your opinion about the banks in India? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She replied that although the Indian Banks are passing through a stressful period resulting from falling net margin in interest, higher incidence of nonperforming loans and more restrictions imposed by the central bank in respect of sectoral lending, these banks are better positioned to maintain a good return on equity in the long term. The growing domestic demand in the EME's (emerging market economies) and their conducive macroeconomic policies would help boost bottom lines of the banks in these countries including India. I then categorically asked her a question about the smaller economies in South Asia viz Nepal. I explained my interest in knowing about Nepal. She remained quiet for some time as if she was drowned in deep thought and then quipped, What is your specific question?</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I replied, What do you think about the banking system in this country? She was of the opinion that the country was in the early stage of development and the accompanying financial system needed higher level of governance and stronger foundation in the form of stricter implementation of regulations and transparency. She felt that the supervision system of the central bank needed further strengthening and more professional approach in the sense that they should not see wood for the tree.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I could not agree more that her observations were interesting. Against the back drop of a looming financial crisis in the Euro Zone and the very slow recovery in the US, it is quite likely that contagion effect can hit the emerging market economies including Nepal and this may lead to the crisis of confidence. Banks will experience falling returns, lesser ability to support credit off take and higher incidents of NPA. Considering all this, I asked her my final question on Nepali financial system, Do you think Nepali Banks require further injection of capital in order to maintain capital adequacy and create a cushion against possible erosion? She thought for a while and responded mildly, Yes, but it needs a lot of debate and political consideration . She was absolutely right. I think this is a serious subject for discussion and the sooner it is done, it's better for the country. </span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span><em><br />
	</em></span></span></p>
<p style="text-align: justify;">
	<strong><span style="font-size:12px;"><em>(Mundul is a Director with Standard Chartered Bank Nepal Ltd)<br />
	<br />
	<br />
	</em></span></strong></p>',
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			'title' => 'Qatar Airways: World 5-star Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramdas.jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Having started its operations in Nepal with a single flight each day about a decadeand- a-half ago, Qatar Airways has come a long way indeed. Aptly awarded a 5-star rating by Skytrax (a UK-based consultancy that carries out international-traveller surveys and ranks airlines and airports), it has increased its frequency to four flights each day beginning 1 October this year. Qatar Airways flies out of Kathmandu every day at 9:45 am, 8:30 pm, 9:30 pm and 11:30 pm.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">While the first two flights primarily carries migrant workers, the next two mostly have passengers who use the airline as a network carrier to reach their respective destinations in North America, South America, Africa and Europe, informs Ramdas Shivram, Country Manager for Nepal. Migrant workers boarding the 9:45 am and 8:30 pm flights go on to connect with GCC (Gulf Cooperation Council) countries and passengers on board 9:30 pm and 11:30 pm flights use the airline's hub Doha as a transit point to continue their onward journey to other continents. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The next two flights comprise expatriates living in Nepal, tourists as well as Nepalis living abroad, adds Shivram saying that around 5,000 passengers used the airline's services each way within the first 10 days of operations since flight frequency increased 1 October onwards. With four Airbus A320 carriers flying out of Kathmandu and, correspondingly, four flights coming into the city each day, Qatar Airways in Nepal sees the potential of selling in the region of 420,000 seats per annum. Shivram, who joined the airline in 2005 and took over its Nepal operations in November 2010, says Qatar Airways has expanded in Nepal after sensing a large potential in the country. On a global level, it aims to be the biggest international carrier. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Advertising &amp; Promotions </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">An essential part of its marketing strategy, the airline seeks to reinforce brand position efforts and provide a platform to deliver credibility for its brand. It makes every possible effort to expand brand visibility and link Qatar Airways brand attributes and values with its customers to establish lasting and loyal relationships with them. While ATL (Above the line) advertising is taken care of by its global head office, the airline indulges in local advertising and promotions by sponsoring sporting events such as golf, organising road shows, holding promotional programmes directed at travel agents, supporting educational programmes on television and publishing advertisements and media releases in major daily newspapers. Shivram cites an example, To promote knowledge about the recent increase in flight frequency, we organised a road show where we approached top 50 travel agencies in Nepal. It was a very successful event.<br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Work Culture</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Qatar Airways has 42 people working at its Kathmandu office, a sizeable number for a foreign airline. It has always tried to hire individuals who can work independently on their own. Shivram, who himself is equipped with a post graduate diploma in human resources, is well acquainted with critical issues such as organisational behaviour. He says that his expertise comes in handy while dealing with his colleagues at work. We try to hire the best talent available and send them to Doha for training. I personally believe in giving ample time and room for adaptation and mentor co-workers who show intent to shoulder greater responsibilities,he further states.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Market Potential <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline is growing at 35 per cent per annum globally and flies to 107 destinations (Oslo, Norway launched on 5 October this year being the latest one) worldwide with an impressive fleet of 100 aircrafts. It plans to serve more than 120 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America with a fleet of over 120 aircrafts by 2013. From Nepal's perspective too, Qatar Airways aims to become the number one airline in terms of time, connectivity and delivering best service. And to achieve this objective, it offers attractive schemes pertaining to specific destinations during the off season. Shivram rubbishes criticism from certain quarters that Nepal does not have a great deal to offer civil aviation in terms of numbers. He says, The fact that as many as 27 international carriers are operating in Nepal is proof enough that this market holds tremendous potential. He further believes that better infrastructure, improved navigation system and enhanced security arrangements at the Tribhuvan International Airport along with making it operational for 24 hours a day can do wonders for Nepal's civil aviation prospects. <img align="left" alt="plane" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ari.jpg" style="width: 344px; height: 145px; margin: 10px; padding: 10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Unprecedented Success <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline takes incredible pride in being a national carrier representing the State of Qatar. Voted Airline of the Year 2011 in the prestigious Skytrax industry audit, Qatar Airways has won the confidence of the travelling public. Since its re-launch in 1997, it has reached the pinnacle of the airline industry for outstanding in-flight service, superior onboard products, and operational excellence among others. Shivram attributes the record success to the airline's clear objectives, ambitions and a focused CEO in Akbar Al Baker. Since becoming the CEO of Qatar Airways in 1997, Al Baker has been instrumental in shaping Qatar Airways into one of the fastest growing and most highly acclaimed airlines in the world. Over the last decade, he spearheaded the airline's growth, which operated only four aircrafts in a regional capacity prior to his appointment. Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends, asserts Shivram. Despite being a foreign entity in Nepal, the airline has tasted success because it realised the need to get into the roots of the local culture and acted on it. Shivram says, Practicing the corporate philosophy of Qatar Airways along with correct product positioning and successfully establishing the right business environment has got us this far. Being responsible to internal as well as external customers is absolutely vital for any company's success, he concludes.<br />
	<br />
	<br />
	</span></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends.',
			'sortorder' => '423',
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	(int) 5 => array(
		'Article' => array(
			'id' => '517',
			'article_category_id' => '37',
			'title' => 'Prolonged Economic Crisis: By Achyut Wagle A Case For Democratic Capitalism',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="economy" border="1" height="209" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/achyut wagle.jpg" style="width: 160px; height: 209px;margin:10px;padding:10px;" vspace="5" width="160" />When the USA was frantically trying to come out of perhaps the worst economic recession in modern times, the Eurozone reeled under even more serious cycle of economic meltdown. Angry verbal exchanges between British Prime Minister David Cameron and French President Nicholas Sarkozy in Brussels meeting on 23rd October and apparently crestfallen Sarkozy coming out of a meeting with German Chancellor Angela Merkel a couple of days earlier are surmiseable indications of the fact that the days of economic certainties in the world are still beyond horizon. The reportedly emerging consensus among the Eurozone leaders might find some solace for now. In fact, they have no alternative to evolving such consensus, but the days of worries of world economy wouldn't be over just by such isolated moves of bail-outs or write-offs unless the very cause(s) of these problems are addressed at the root. The most repeated statement of the present day economists and economic analysts is: Even if the USA and the Eurozone&nbsp; specifically Greece, Italy, Portugal, Ireland or Iceland -- came out from the current mess by some means, the world will not be the same again. Then, how would the new world look like? Nobody has a definitive answer. But, there is no alternative to finding out not only a convincing answer to this question but a workable framework to save the world from such too frequent and highly pervasive economic crises. Both, such frameworks and answers, can be devised by reviewing the past and taking unconventional strategies that suit to the present-day realities. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>1. Oversight Failures :</strong> When the subprime crisis was at its height in the US in 2008, Eurozone leaders were proudly boasting the robustness of their conservative supervisory regime of the financial system and were not subscribing the idea that their financial systems were not immune to similar- inbred if not contagious- crises. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The series of these crises have now exposed the fact the exiting supervisory and regulatory framework worldover has become virtually dysfunctional and a new one encompassing the contemporary, and if possible future, trends is not yet in place. Even worst, no meaningful homework has begun to that end, so far. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The movement of funds aided by mainly three distinct features-- the exponential growth in information technology, wider transport connectivity and high movement of people and new tools of trade in the money market like derivatives future-- have far outpaced the efficiency, jurisdiction and reform of both global and national financial systems oversight regimes. International flow of funds through legal channels, i.e. more or less detectable by any form of the regulatory radar, is less than 4 to 5 percent of the total estimated global transfers. On the legal side of the transfers, estimated value of world merchandise exports in 2010 was US $13.36 trillion and world commercial services exports in the same period was $3.64 trillion (Source WTO secretariat website and calculated on projected 10% rise in 2010 from 2009 actuals of world merchandise exports equivalent to $12.15 trillion and world commercial services exports $3.31 trillion). <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Similarly, according to an estimate by the World Bank, officially-recorded remittance flows in 2010 was about US$440 billion worldwide. And, crossborder investments in capital markets and real estate combined was to the tune of $330 billion. With all these transfers put together, even in exaggerated terms, the recorded total transfers of funds across the globe would hardly cross the $ 20 trillion mark. On the contrary, according to the Bank for International Settlements (BIS), amount of derivatives transactions stood at $601 trillion in December 2010, up from $583 trillion six months earlier. It was at the record level of $684 trillion in June 2008. Interest rate contracts form more than 75 percent of the derivatives futures transactions. (As reported in The Economist, May 31, 2011) The figures presented by the Daily Finance, a subsidiary portal of AOL, is even more appalling. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It says, One of the biggest risks to the world's financial health is the $1.2 quadrillion (one quadrillion is 1,000 billion) derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy Apart from these monetary-side regulatory gaps, fiscal regulation is also facing new challenges as the national boundaries are gradually becoming irrelevant partly by the sweep of globalization and partly made so by design, particularly in case of Eurozone, with the introduction of common currency, the Euro. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">With the introduction of the common currency, the national-level supervisory/regulatory authorities have become redundant and the national accounts failed to present the true picture of the economy as many crossborder transactions take place unrecorded. The window of currency conversion that used serve also as the basis of record of cash flows across the border is automatically out of practice. The forceful homogenization of the currencies of weaker and stronger economies has prompted unhindered and unregulated capital flights from weaker to stronger economies, breeding even graver crisis situations in weaker nations. Greece is the latest striking example. <img align="right" alt="ecomony" border="1" height="346" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/fig.jpg" style="margin:10px;padding:10px;" vspace="5" width="504" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Such capital flight is but natural phenomena, because weaker economy also meant less rate of return on investment, lesser degree of security and higher degree of unpredictability. And, common currency has facilitated it in a great deal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>2. The Political-Economy Issue:</strong> With the crisis aggravated more on every passing day, and resolution of it nowhere in sight, a number of ecopolitical issues have also come to fore. The worldwide fever of Capture Wall Street has created a new debate on possible collapse of capitalism. The advocates of egalitarian welfare state seem happy that the old good days of state-sponsored social safety model of economy would return soon. In the virtual mayhem, the virtues of both democracy and capitalism are pushed behind the dark shadow, a true concern for the future of the world economy and polity. In name of addressing the crisis, the electorates are kept completely aloof in taking the economic decisions that affect their lives the most. Their elected representatives are equally helpless as the common man on street, like in the case of Greece again, or their representatives like in the US take the decisions on the issues never mentioned in their election manifestoes, thus acting on democratically unmandated domain. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">These factors in due course are likely to raise more excruciating questions on the very rationale of election and their leaders authority to rule. This would certainly take way some beauties from the democracy. Another important question here is: has capitalism really failed? Or, are mere consumerism and irrational greed at the peril? The differentiation is not easy. But the fact is, it is not the capitalism that has failed but all the problems, perhaps without exception, are borne out of sheer anti-capitalistic and antidemocratic moves of the economies and their leaders at the helm. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">One of the greatest beauties of capitalism is the Economic Darwinism. The state must let the companies of whatever size that are already or become unable to compete in the market, fail. But, the problems multiplied to take the world at present situation when powerful economies set wrong precedent by bailing out ailing banks and companies at the expense of the tax-payers money. And, in the process, the decision makers did it without taking such important issues to the public through polls or referendum, which compromised the very tenets of the democracy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The ongoing global economic crisis, however, should be able to ignite a new debate on necessity of democratic capitalism as new future eco-political model. This new philosophy must not only be able to force the governments to act according to the principles of democracy and/or capitalism in isolation, but should establish it as a united theory where these two are treated as inseparable elements in future ecopolitical governance. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>3. The Future:</strong> The hypothesis of democratic capitalism is certainly useful to resolve the present crisis. Even more, this paradigm-shift would prove more appropriate as the shifting of economic might from West to East, from democratic to authoritarian country. Observing at the difficulty in resolving current crisis even in the highly transparent economies like the US and Europe, one can easily think of gravity of situation when similar problem arise in secretive but the second largest economic powerhouse like China. The simultaneous emphasis on democracy as that only ensures transparency and, respect to the ideals of capitalism that promotes free competition in any odd situation, can only in unison make the future world safer to live and do the business in business-like fashion.</span></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-09-20',
			'keywords' => '',
			'description' => 'The reportedly
emerging
consensus
among the
Eurozone leaders
might find some
solace for now.',
			'sortorder' => '422',
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	(int) 6 => array(
		'Article' => array(
			'id' => '515',
			'article_category_id' => '52',
			'title' => 'Hoax Of Free Competition',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size:12px;"><img align="top" alt="" height="336" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/from the editor.jpg" vspace="5" width="500" /></span></p>
<p>
	<span style="font-size:12px;">Last couple of governments made headlines for declaring that appointments of the chiefs of public enterprises would be made through a free competition. Going a step further, present government opened˜tenders even for the constitutional positions like the chief and other commissioners for the Election Commission, Commission for the Investigation of Abuse of Authority (CIAA) and Public Service Commission. <br />
	</span></p>
<p>
	<span style="font-size:12px;">At the face, it appeared as a welcome idea as those crucial institutions could now expect to be headed by the most talented professionals than the political cronies of the party in power. Some of the selection process, like for the Executive Director of Nepal Electricity Authority (NEA), at the beginning appeared reasonably fair. The erstwhile government made the appointment on the basis of that very selection. Even the present government has appointed in couple of positions by calling for applications, like in case of the Chairman of Securities Board of Nepal (SEBON). <br />
	</span></p>
<p>
	<span style="font-size:12px;">However, status of application collected for constitutional bodies is yet in the dark. But, as it turned out now, all these so called free competitions were mere hoax. Ultimately, only hardcore cadres of the ruling party are getting appointment. The new NEA Executive Director turned out to be a devout UML party worker and Chairman of SEBON a staunch Maoist supporter. In both cases of NEA and SEBON, there were more qualified persons than those who were lucky enough to be picked for the job. But those PhD degree holders and true professionals were summarily discarded. <br />
	</span></p>
<p>
	<span style="font-size:12px;">Then, why is there drama of free competition as the people in power were freely appointing their near and dear ones in these positions for years? Because, this has several advantages for both the appointee and the appointer. Generally, such government appointments are made with a clause for maximum of (so many) years if it is a political appointment as in the past. But the person who is selected through free competition&nbsp; has a negotiation power not only on tenure but also for the perks. Then it has two advantages. First, the chosen cadre will have a fixed term appointment instead of uncertain maximum of. Second, he can bargain for better pay than the normal effective government pay-scale. In turn, the appointing party also can bargain for the appointee's contribution mostly monetary, called levyâ. <br />
	</span></p>
<p>
	<span style="font-size:12px;">What is important here is not the process but the intent of the appointer. If their intentions are to appoint the best professional, the free competition for mere publicity is an unnecessary waste of time and resources. On the contrary, if the ruling parties want their own cadres in any pretext, the so called free competition will only add to the worries of public enterprises, most of which are already in precarious situation.<br />
	<br />
	<br />
	</span></p>',
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			'created' => '2011-11-16',
			'modified' => '2012-08-31',
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			'description' => 'Last couple of governments made headlines for declaring that appointments of the chiefs of public enterprises would be made through a free competition.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '514',
			'article_category_id' => '31',
			'title' => 'Nepali Market Is Strategically Very Important For Us',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>Indranil Sinha,</strong> the Director of Exports of Whirlpool India Limited was in Nepal recently, for the opening of two exclusive Whirlpool showrooms. He handles the international export of Whirlpool for South Asia. In an interview with New Business Age, he talked about the prospects of Whirlpool products in the Nepali market. Excerpts:</p>
<p>
	<strong>How is the trend of sales for Whirlpool products in Nepal?</strong></p>
<p>
	Nepal has been one of the best performing markets for us in the last few years. However, I think the penetration of home appliances is still very low in Nepal. In Kathmandu, the market is good, but outside the valley, it's not much to write home about. We have been present in Nepal for the last 15 years, so we have a good network. We try to make sure that the products reach all over Nepal. Our appliances have made a good name for themselves. I wouldn't say the market is very profitable because if the prices are high, the buyers switch to other companies very easily. We are not very conscious about profitability right now; we are just trying to develop a brand image.</p>
<p>
	<strong>The Nepali market is relatively a small one. How important is it for your portfolio?</strong></p>
<p>
	I don't think the market is really small. With a population of nearly 30 million, it's quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here. In Sri Lanka, the population is about 20 million, but the sale is around 250,000. In Nepal, the market is growing and so is our market share which is about 15 to 20 per cent. As the market grows, we want to maintain or even improve on our market share. In about five years, I see the market doing very well. Therefore, the Nepali market is strategically very important for us.</p>
<p>
	<strong>How tough is the competition? <br />
	</strong></p>
<p>
	The competition is very tough everywhere today, and Nepal is no exception. A number of Asian brands, Japanese or Korean, are strongly dominating the market. But for European or American brands, we are comfortably placed at number one. All our Asian competitors are dealing in home appliances and consumer electronics like television, mobiles, laptops, monitors and other products as well. But our focus is only on the home appliances. We basically manufacture products that are used around the kitchen and make life easier for the users. You might not see flashy lights and a lot of buttons in our products, but you will get genuine benefit and convenience from them.</p>
<p>
	<strong>What are the unique features of your product? What is it that gives you an edge over others? <br />
	</strong></p>
<p>
	We have a refrigerator model in which we have used a technology that keeps food fresh even if there is a power outage for 15 hours. We discovered that generally the compartments of the refrigerators are opened every 10 or 15 minutes in a household to fetch vegetables, water and other items. The door opens and closes so many times and at the same time, hot air goes in. So the refrigerator has to consume extra power to keep things cool, which is not efficient by any means. We have come up with Proton series of refrigerators where we have separated the vegetable storage compartment in a drawer at the bottom and the refrigerator compartment remains at the centre. So, the whole refrigerator does not need to be opened all the time. This makes the refrigerator consume less power. We have applied similar innovations for other appliances as well.</p>
<p>
	<strong>What are your future plans for the market here in Nepal? <br />
	</strong></p>
<p>
	We have recently opened two exclusive showrooms in Kathmandu. This will definitely help in making our product more visible. We are specially focusing on the market in Kathmandu, where there are opinion makers and trend setters. All the latest products will be there in the showrooms in the capital. We are also offering new schemes for the buyers and will be bringing in new products as well. We have new designs of kitchen chimneys, hobs, water purifiers, clothes dryer and microwave ovens.</p>
<p>
	<strong>Is there a possibility of Whirlpool establishing a manufacturing unit in Nepal? <br />
	</strong></p>
<p>
	Right now, we don't have any such plans. We already have three factories in India and two in China, so opening a manufacturing unit here will not be economically feasible. But still, it's a probability that we may open a facilitating office here in Nepal because at present, we are operating through a distributor.</p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'With a population of nearly 30 million, Nepali market is quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here.',
			'sortorder' => '420',
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			'id' => '513',
			'article_category_id' => '31',
			'title' => 'Increased Awareness Of Incoterms Would Help Local Banks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="1" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/pavel andrle.jpg" style="width: 241px; height: 463px;" vspace="5" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Pavel Andrle</strong> is Secretary of the Banking Commission of International Chamber of Commerce-Czech Republic (ICC-CR) and regularly represents ICC-CR at the ICC Banking Commission meetings abroad. He has been deeply involved in the revision of UCP as a member of UCP 600 consulting group formed by over forty experts from all over the world. Andrle has also been closely involved in the revision of URDG 758. He has participated in the development of ICC-CR certified course Incoterms 2010 Masterclasses and currently serves as one of the ICC-CR official trainers for Incoterms 2010. He has been appointed ICC-CR expert to reply to enquiries related to Documentary Credits and Trade and Structured Finance development of technical assistance consultancy services of ICC-CR to banks, carriers, insurance companies and traders. Andrle was in Kathmandu recently and led a two day seminar for bankers on Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees&nbsp; URDG 758 organised by National Banking Training Institute (NBTI). In an interview with New Business Age, he talked about the features and benefits of the banking commission documents he trained the seminar participants on. Excerpts:</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Please tell us about this seminar that you had for the Nepali bankers.</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Well, it was a very successful two day seminar and about 30 bankers representing more than 20 banks participated in this programme. We focused on issues such as Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees URDG 758. The seminar was very useful for professionals working in the trade finance sector and dealing with documentary collections and documentary credits that a bank guarantees. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Could you please elaborate on Incoterms 2010?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Incoterms which translates to International Commercial Terms are developed by International Chamber of Commerce. Incoterms are part of Uniform Customs Practice (UCP) 600 widely practiced and followed by banks worldwide for mostly out of country transaction through Letter of Credits. The Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods and are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000. In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules applies regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation over water. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How important is URDG (Uniform Rules for Demand Guarantees) 758 and what does it imply?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The URDG 758 is a set of contractual rules that apply to demand guarantees and counter-guarantees. As the URDG are contractual by nature, they apply only if the parties to a demand guarantee or counter-guarantee so choose. The URDG can adequately provide an operational framework for any situation where a demand guarantee is required, whatever the situation is in the public or the governmental sector involved. Agreeing to issue a guarantee according to URDG spares the parties the effort of drafting extensive clauses to describe the independence of the guarantee, its irrevocability, its non-assign ability and the guarantor's duties and more. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the benefi ts with using URDG 758?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Once the URDG are incorporated in the guarantee or counter-guarantee text by contractual reference to the URDG, they are deemed to be entirely incorporated, unless specific article(s) are expressly excluded or amended. A URDG guarantee and counter-guarantee enter into effect from the date they are issued, unless their terms expressly postpone their entry into effect to agree with a later date or the occurrence of an agreed event. Accordingly, no demand for payment can be presented until the guarantee enters into effect following the occurrence of a specified date or event indicated in the guarantee.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How will these programmes help the Nepali banks and bankers? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks to exercise acceptable international norms in issuing and accepting Letter of Credits. Besides, many issues arising out of international trade can be mitigated. The programme will help the banking staff working at the Trade Finance Department of their respective banks on recent issues related with issuing and accepting Letter of Credits and how to quote and implement Incoterms in the Letter of Credits.</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><br />
	</span></p>',
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			'description' => 'The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks.',
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	(int) 9 => array(
		'Article' => array(
			'id' => '512',
			'article_category_id' => '31',
			'title' => 'Our Product Is Of National Interest For Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="left" alt="" height="261" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/subhaog ghosh.jpg" style="margin:10px;padding:10px;" vspace="5" width="420" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Subhamoy Ghosh</strong> is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer. Ghosh joined Palfinger India on in June 2010 and looks after product management and business development of Palfinger Cranes in India along with overseeing finance and human resource functions. He was in Nepal recently to understand the market demands and requirements for Palfinger Products here. In an interview with New Business Age, he shared his understanding of the Nepali market and plans for Palfinger here. Excerpts:</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Can you tell us something about your products? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">We come from the field of transport solutions and our job is to make easy and quick loading as well as unloading of a truck so that it can go for another trip without wasting time. Transporters earn money when they make more trips and our main job is to give transport solution to the transporters. Besides being a lifting and shifting solution provider, we are a multiproduct group having seven major products. We are making our entry in Nepal with the truck loader crane and, in a couple of years from now, we will be introducing more from our product line. The Nepali market has some experience of using second hand Japanese trucks which come fitted with these kinds of cranes. On our part, we will be bringing two cranes: Stiff Boom Crane and Knuckle Boom Crane. Normally, cranes are known for loading and unloading using hooks but this one can perform even clamping and grabbing operations. The Knuckle Boom Crane can even drill a hole. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Is there any special reason behind choosing these two cranes specifi cally?</strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">In Nepal, everything has got stagnant and the market has become slow in the last five years. I believe that it is a good time to become better and catch up with the rest of the world. Nepal needs to develop its infrastructure very fast by constructing more roads, bridges, buildings, modernised airports etc. If the industrialisation in Nepal has to take place, abundant infrastructure needs to be there first. These cranes combined with trucks can play a fantastic role in infrastructural projects because these can lift materials and deliver to the projects. As Nepal is a geographically difficult terrain, it is not possible for any project to keep materials close to its vicinity. With truck loader cranes, we are adding versatility as they are more suitable for rental companies. Owning a crane independently may not be economically viable for companies in a small market like Nepal. Besides private players, the public firms too can be better served by these machines. Mechanisation is the solution for efficiency and can save human resource for other purposes while ensuring safety at the project sites. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How can small and large projects alike benefi t from these equipments? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">These can be used mainly in medium to large projects since they may not be cost effective for small projects due to the price factor. We are in the initial stage and trying to increase visibility of the product in the market as people should know what they can do with this kind of equipment. This crane can be used in various aspects such as construction, electrification, municipal waste, cargo distribution, at factories etc. So, we want to let the market decide how can the crane be best utilised as per various needs. Our job as a supplier is to give exposure to the market about the functionalities of these cranes. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you see the market prospects in Nepal? Are there any competitors in the Nepali market for you?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Our ambition is to introduce 20 to 25 cranes in the first year in Nepali market for various applications. Then we can expect to grow along with the economic growth of Nepal. In advanced countries, manpower is expensive and it is not ready to do manual jobs and even the law prohibits it to some extent. So they have one crane for every five to 20 trucks whereas in Nepal and India, there is not even one crane for 100,000 trucks. I believe that 20 to 30 cranes should be fitted to every 100 trucks deployed. As of now, there is no competition for us in Nepal for new trucks and new cranes. The only competition is from the used trucks which I believe is not good for Nepali environment as they do not even meet environmental safety standards. If the import of these used trucks can be stopped, we will have no competition at all. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>After sales service becomes a major issue whenever new equipments are launched. How do you plan to address this? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is the main reason why we have selected an able partner in Infratech. They have a strong presence in the market and enjoy recognition among customers. They will be further trained and groomed for this purpose but most importantly, these are maintenance free vehicles. Customers can not damage it even by choice as it has a host of safety protections, however, we don't want to take any risks and hence, we will also have a spare parts shop for the machines locally.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to establish your brand image in Nepal? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">What we do in any new market will be done here as well. Once the dealership is announced, we will try to reach our customers through various media vehicles. We have certain branding plans targeting our users and customers. We normally try to reach as many potential customers as possible and as frequently in a year. We will organise likeminded customers meet, for example, one meeting for construction people while another for government officials. We believe that communication exercises will help us establish a decent brand image here in Nepal. <img align="right" alt="" border="1" height="201" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ghosh 2.jpg" style="margin:10px;padding:10px;" vspace="5" width="144" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the challenges you see for yourself in the Nepali market? How do you plan to overcome them?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">From a commercial point of view, the duty structure is unimaginably high particularly for a non-manufacturing country like Nepal. Such a heavy duty is actually bound to put a lot of pressure on buyers since they might be discouraged to buy such products despite wanting to have them. Secondly, there is almost no general awareness about this product so convincing the customers on a priority basis will be a big challenge. For the commercial solution, we have to meet the government of Nepal to see if anything can be done because this is a product of national interest for the country. It is not for somebody's personal use and promises to add value to the growth and development of Nepal. Educating the market is our duty and I hope that our marketing efforts and visible involvement in the market will ensure this.</span></p>',
			'published' => true,
			'created' => '2011-11-16',
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			'keywords' => '',
			'description' => 'Subhamoy Ghosh is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '511',
			'article_category_id' => '31',
			'title' => 'The Nepali Market Is Dominated By SMEs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="bottom" alt="" height="357" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/shinji tada.jpg" vspace="5" width="198" /><img align="bottom" alt="" height="359" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/amit ali.jpg" vspace="5" width="199" /><strong><br />
	<br />
	Printers from Brother were available in the market for quite some time. What is the motive of officially launching the new line-up in the market now? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We were available for the last two months but we were still continuing with the current line-up. A couple of new models were brought a few months back and now the entire line-up is available. We decided to organise a formal launch now because we have changed this line up for the first time in three years. Laser printer comprises almost 90 per cent of our business so it is very important for us. Once the line-up was fully available, we decided to introduce the range formally in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you analyse the Nepali market for your products? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Tada: This is an emerging market. It has potential to grow in the future but so far, this is a price sensitive market. So, we have launched products that are specifically targeted at emerging markets. I think with this range, we can achieve good results and gain more market share. <strong>Ali: </strong>I think the entry level models three-in-one and fourin- one printers have the highest sales prospects in Nepal because these are products that are very popular already. We want to sell more colour and high end products for corporate users.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you compare the Nepali market with other Asian markets? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> I think that the customer profile is different in Nepal. In other markets, there are more corporate houses and big companies who are our customers. But, the Nepali market is dominated by small and medium enterprises (SMEs). There is very low presence of foreign investments and no big multinational companies whatsoever. This is one of the biggest differences. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> In Asian markets, we have different types of countries ranging from Australia, a very developed country to Vietnam, an emerging country. The main difference is in the profile of customers. Nepal is a little less developed compared to other Asian countries like Malaysia and Thailand which are better developed. They have strong corporate customers who are well educated. They are definitely cost conscious but they also know the importance of warranty. In Nepal, for example, around 90 per cent users depend on refill for laser products. This market needs a lot of education. A refill may save cost in the short term but over a period of, say, five years; it turns out to be complicated and damages the machine making it an expensive proposition. Our approach to the Nepali market is the same as in other regions because we are trying to enhance the education and awareness level of the customers. In terms of market growth and potential, this market has better prospects than any other Asian countries because they have already reached a certain level of penetration. The IT penetration is still low especially in the rural areas. We are optimistic that over the next 10 years, the IT sector will grow tremendously. Even the government sector has minimal exposure to IT so hopefully it may invest more in the next five years and we can grow along.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What is your strategy to cater to home as well as corporate users?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> The corporate houses are our main target customers especially SMEs. This can prove to be the strongest market segment for Brother. Along with a few big companies, there are many SMEs in Nepal. These laser products rightly suit our target customers’ needs and that’s why we have introduced these products here. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the specialities of Brother Products compared to other similar products?</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali: </strong>There are three main reasons why Brother Products are known all over the world: (a) Quality, (b) very easy to use products and (c) strong and reliable products. Our products are popular in the USA because they are easy to use and install and it is our biggest market in small office segment. In case of Nepal, we have seen the results over four years now and our products are also being used in very remote regions. We are bringing in laser products which are customised for Nepali condition which we don’t sell in another region, for example, the Gulf countries. These products are customised for Nepal’s voltage and electricity situation making them very strong and reliable for usage in remote areas as well. The Brother Products come with a threeyear warranty and we believe that this will appeal especially to the corporate customers. They can have good quality, stable and strong machines as well as service and maintenance which is taken care of, for three years. We are very balanced between price and performance as we are not the cheapest brand available but we are also not the most expensive one around. We offer a combination of good price and performance to the consumers.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Your products are said to be environment friendly too. Tell us more about it</strong>. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We are committed to make environment friendly products and the Brother Products have received Ecomark and Blue Angel certification from Europe. This is the toughest environment certification to get anywhere in the world and now-a-days in Europe, you cannot participate in tenders unless you have this certification. All our products are certified which means that the parts, components and materials we use to make our products are environment friendly and bio-degradable as much as possible. Our products consume very less power and, in laser products, we use separate toner and drum technology which means the materials used in those items are less dense and hence, more easy to recycle. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> We are trying to be an eco-friendly company and we are now producing different models that can print on both sides of a paper and thus ensuing lower paper usage. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is your volume wise sales target for the market here? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We keep an annual target for this market like any other market. Based on our distributor’s commitment and comfort level, we decide a target with mutual consent and increase it every year. So, in the last four years, we have grown four times and our plan is to grow four times further till 2015. We do have a very ambitious target and hope to meet it.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to meet this target?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><strong>Tada:</strong> We want to grow along with our distributors by taking care of the market. We have prioritised the Nepali market as it has a good potential. To make our business sustain and retain our customers, we need to provide good service to our customers besides sales. Once they buy a machine from Brother, the service they get from us determines whether they will choose to be a regular customer of Brother. The sales target for certain emerging markets will be introduced in due time and we believe that we will be able to achieve it.</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'Shinji Tada is the Managing Director of Brother International (Gulf) FZE (BI) and Amit Ali is the Deputy General Manager of Printing and Solutions Division at BI.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '510',
			'article_category_id' => '38',
			'title' => 'HR Budget',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need, cost is considered as a major factor. We all like saving of time and money at all levels whether in personal life or in business circumstances. The purpose of business entity is the profitable manufacturing and/or supply of goods and services to fulfill economic necessities ensuring satisfactory returns to all stakeholders mainly known as economic and social suppliers, that is,. investors/owners, members/employees of the enterprises, customers, and the society. Hence planning and budgets are developed in business enterprises to analyse and evaluate managerial decision making on account of spending and output achievement.&nbsp;</p>
<p style="text-align: justify;">
	 </p>
<p>
	Human Resources Management, in the process of effective utilisation of the people resources towards achievement of overall organisational goals; performs number of functions broadly named as:</p>
<ol>
	<li>
		Organisational Planning in support of determining its need, structure and relationship strategies. </li>
	<li>
		Staffing covering headcount planning, recruitment, selection and placement, job designs and profiling, orientation and separations.&nbsp;</li>
	<li>
		Skills Enhancement comprising of training need analysis, training activities and evaluation of programme offered. </li>
	<li>
		Compensation &amp; Benefit processing job evaluation, designing and operating suitable salary package/ structure and variable pay package. </li>
	<li>
		Motivation starting from performance appraisal moving through recognition to financial and nonfinancial incentives. </li>
	<li>
		Employee Relations beginning from discipline, counseling, grievance handling moving through recreation and welfare activities, eligibilities (leave, provident fund, gratuity etc) medical services to collective bargaining etc</li>
	<li>
		Personnel record comprising personal information gathering, database development, talent inventory etc making complete employee record. </li>
</ol>
<p>
	Therefore, the cost of human capital represents one of the largest operating expenses into any business. It impacts financial results indirectly in the form of recruitment, motivation and morale, skills enhancement etc impacting quality of operations that supports building customers’ confidence leading to customer retention resulting into revenue/profit. Developing effective human resources budgeting strategies leverages organisations to improve accuracy in cost prediction, control mechanism over budget and realising significant savings. HR budgeting brings together data from different sources, for example, HRIS (Human Resources Information System), Payroll, Performance Management, Sales forecast etc and generates full picture of current and future business positioning. The HR budget is operating budget within the organisation. </p>
<p>
	Budgeting involves information and data to enable finance project organisation’s overall objectives and profitability. The finance unit of an enterprise determines budget structure element and HR unit generates elements of people cost. There are mainly two methods that are applied in budgeting: a. Generic incremental method: Using current budget, next budget is developed through adjustments on each item in close consideration of expected business move, market inflation, consumer/customer sentiments, past success rate etc. b. Zero-based budgeting method: The process begins with zero as base and each item included in the budget is justified before inclusion. It is an organised approach to decide the funding level and performance level in the context of scarce resources and new priorities from scratch – as if no operations exist (before). Whilst creating human resources budget, absolute necessary attention is expected on income of the business moving to investment on people resources. Line items of expenditure are defined by object classes, that is, charts of accounts. While talking of HR budget, such line items include: • Headcount plan, that is, Number of employee projected (includes organisation structure) • Changes projections in compensation and benefits (inclusive of overtime payments) • New benefits/programmes planned • Assumptions around employee turnover • Assumptions/guidelines for realistic expense level • Social security for employees and corporate citizenship programmes • Other changes in policy, business strategy, law or regulation that may impact costs • Skills e n h a n c e m e n t / p e o p l e development/training cost, and • Cost control and reduction via consulting, savings from compensation, benefits, turnover reduction, developed internal trainers etc Projections are based on actual costs incurred in the past or guesses, depending on the nature of the expense and the data available.</p>
<p>
	It may be difficult to project in the circumstances of significant fluctuations in turnover and staffing needs. Thus HR associates need to gather every source of available data in order to make educated projections. It would also be wise to obtain feedback on essential HR moves from other functional heads that ensures buy-in of projections in view of instilling confidence on the inclusion of their expectations from HR. These are crucial in working out lowcost benefits contributing to increased employee satisfaction. With the shift from traditional to professional working of HR, clearly defined mission, vision and values for HR function becomes a path finder for people managers in streamlining process and securing alignment of total team towards one direction. Currently, HR function in any organisation is evaluated on the basis of people productivity and hence it is widely suggested to work around productivity improvement, product/ service quality delivery and instilling customer satisfaction that undoubtedly secures customer retention and contributes to sales growth with improved profitability. This enables HR to track revenue and profit per employee, that is, a comparative study of employees output against expenses per employee. Analytical Budgeting provides opportunity to HR practitioners around comparing achievements with competition and one’s own past performance that opens the door for continuous improvement. </p>
<p>
	The essence here lies in successful measurements of HR functions assignments and performance as it has a direct impact on the organisation as a whole. The recent studies and human scientists have directed a need to establish a clear numerical relationship between people management and financial performance as it would support translation of strategy into operations, managing and controlling overall performance down to business transactions as a result of improved decision making across the organisation. From an entrepreneur’s view point, employee shares of the rewards of production whether cash or other form of earning are commonly referred to HR expenditure and considered as “Cost”. HR practitioners need to identify the areas of businesses that are growing and work with responsibility centres in such areas. </p>
<p>
	Volunteer themselves around HR support in elimination of barriers experienced by such areas of business in improving productivity and margin. Also establish review process to evaluate impact of HR interventions and once positive impact is visible (which is sure to happen), the business head becomes the HR advocate with the Finance head that ensures full considerations and funding HR initiatives. HR strategies are never stagnant, it is most flexible and shifts focus with changes experienced whether economic or otherwise. </p>
<p>
	Therefore, it would be wise for HR function to prioritise their programmes and services focusing most important areas that have high and visible impact on people productivity as well as producing immediate return to make sure that their budget is accepted as value addition instead of cost. It needs to shift its focus to growth areas that can be served with prioritised HR services. This will improve response time and customer service in total too that will be added advantage for HR to be perceived as responsive productive unit and eradicate the common perception of unresponsive overhead unit within the organisation. To conclude, HR needs to demonstrate competitive advantage for the business in total from the programmes and approaches adopted for budgeting defining difference in ways and means for achievement that confirms result much superior than ever before so that confidence of total business is secured to maintain HR programmes.</p>
<p style="text-align: justify;">
	<em>(Dr Karna is the Executive Chairman of MARK Business Solutions Pvt Ltd and Ad Abhyas Marketing &amp; Communications Pvt Ltd. The article is based on various research reports and his practical experiences as management practitioner.)</em></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'keywords' => '',
			'description' => 'Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need,',
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	(int) 12 => array(
		'Article' => array(
			'id' => '509',
			'article_category_id' => '38',
			'title' => 'Ways Of Appraising Employees',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development. As the last fiscal year ended just a few months ago (i.e. at mid-July), many organisations are now conducting performance appraisals in order to evaluate the yearly performances of its employees. In this context, Real Solutions organised HR Kurakani on ‘Ways of appraising employees’ in order to discuss how to conduct appraisal effectively. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">HR practitioners from diverse fields discussed the ways of appraising and the different ways that it can be accomplished: <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Methods <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Every organisation has its own method of appraising an employee’s performance but some of the popular methods used by various organisations in Nepal are 360 degree appraisal, observation basis and balanced scorecard among others. The performance appraisal forms are filled either manually or through use of certain software packages developed for the purpose. Filling the PA forms should not be biased; but in practice, favoritism does exist within organisations. Therefore, PA should be transparent in order to bring out best results. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Forms <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The participating HR practitioners highlighted on designing questionnaires as per respective job descriptions and found it necessary that they are associated with organisational goals. The questionnaire should be able to analyse different aspects of an employee like communication skills, punctuality, competence, knowledge and overall behaviour among others. Another aspect to be considered while designing the PA forms is the language. The language should be simple, clear and must include both English and Nepali languages and sometimes in other language(s) too, in order to make PA process easier. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Trend <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">It was felt that most of the organisations in Nepal do not carry out appraisals while some others do it just for the sake of doing it. The organisations that conduct appraisals systematically and effectively include multinational companies and international nongovernmental organisations (INGOs).</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Outcome</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">If an organisation conducts PA and takes no action based on the result received, then there’s no point in going through the entire process. The action as a result should not always be an increment in terms of monetary compensation even though it is one of the major aspects. Besides monetary reward, the appraisal outcome can also include non-monetary rewards such as providing holiday packages, training facilities, appreciation and rewarding best employee among others, based on their performances. An increment in salary is expected on a yearly basis when PA is conducted. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The HR Kurakani participants discussed salary increment criteria such as performance based increment, increment as per government norms, increment as per inflation rate and increment considering an organisation’s values and growth. It was also discussed that yearly PA is not the best way of judging and rewarding employees. If a system can be introduced to appraise employees on a monthly basis, it could be more effective. The participants discussed the possibilities and practicality of such an arrangement. Since it requires greater time investment, the participants suggested conducting biannual PAs and pointed out different ways that can assist appraisals such as critical incident recording, electronic tracking system, introduction of cards for warnings in the event of mistakes committed and encouragement in case of perfect job, external evaluation etc. (The write up is based on an ‘HR Kurakani’ discussion on the topic ‘Ways of Appraising Employees’ conducted by Real Solutions Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The participants at the discussion included representatives from NGOs &amp; INGOs, Hotel Industry, IT and Communication, Automobile Companies, Trading and Service Industries as well as a freelancer. Shailendra Raj Giri, Managing Director of Real Solutions acted as the moderator for the discussion while Nibha Shakya, HR Executive of the company coordinated the event).</span></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'description' => 'Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development.',
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			'id' => '508',
			'article_category_id' => '34',
			'title' => 'Indian Interest Rate 5 Times Higher Than Nepal’s',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank, Nepal’s average real interest rate between 1975 and 2010 remained at mere 1.32 per cent. Similarly, record of Reserve Bank of India (RBI) says average interest rate in India during the same period was 6.68 per cent. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepal had negative real interest rate (after adjusting for inflation) while India had positive real interest reate in most of the years during this period. Economists say that low real interest rate discourages savings and thus slows down the economy’s growth rate. Dr Chiranjivi Nepal, an Economist said that Nepali authorities must consider Indian policies while formulating monetary policy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">He added, “While Indian central bank has been diligently trying to make sure that the real interest rate is positive, Nepali policy makers seem unaware of the seriousness of this issue.” RBI, in the last 18 months increased bank rate more than 12 times to control inflation and maintain the real interest rate at positive side. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">However, Nepal’s bank rate has remained constant for a long time while the inflation has doubled in last five years. When annual consumer inflation reached 15 per cent, two years back, real interest rate was negative by more than 10 per cent. According to Dr Nepal, the liquidity crunch faced by Nepal’s banking system recently was due mainly to the capital flight induced by the negative real interest rate in Nepal.</span></p>',
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			'created' => '2011-11-15',
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			'description' => 'Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank,',
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		'Article' => array(
			'id' => '507',
			'article_category_id' => '34',
			'title' => 'International Trademark For Nepali Coffee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for trademark registration in 10 countries including USA, Canada, European Union, Switzerland, Norway, Australia, South Korea, Japan, Hong Kong, and Singapore. Shyam Prasad Bhandari, President of FCT said Nepali coffee is sure to get trademark in many those countries. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Bhandari said a unique trademark is being developed so that Nepali coffee can be easily identified which in turn helps to enhance the trust level and promote it in the international market. He said it takes six to 18 months for approval and FCT is optimistic to get this brand recognition tool as the demand of Nepali coffee is now growing in these international markets. In the second phase, trademark will be registered in the countries like Bhutan, China, Taiwan, Kenya, UAE, among others. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">It has been agreed with Trade and Export Promotion Centre that 70 per cent of the registration cost will be borne by the government and the rest by the traders. Registration of trademark in 10 countries would cost something about Rs 5 million. After this global recognition, all the coffee produced in Nepal will bear an uniform logo. Currently, different producers are using different logos developed by them in isolation .</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for',
			'sortorder' => '413',
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$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '522',
			'article_category_id' => '42',
			'title' => 'Flat In Festival (Nepal Stock Market Review For 25 September To 25 October, 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="232" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram.jpg" style="width: 188px; height: 232px;margin:10px;padding:10px;" vspace="5" width="188" />The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session. The benchmark Nepse index plummeted 3.59 points or 1.09% to close at 327.99. The highest point during review period was on 12 October with 334.49 while the lowest was on 23 October with 326.42. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Normally, the festival season causes outflow of money from the stock market. However, this year it was not so. Many companies have already declared their earnings and announced the dividend rates while others are preparing to do so. The book closing days are also coming around for the AGMs. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">All these are making the investors to heed the market movement more closely. Investors are dismayed at the delay in the operation of CDS and Clearing Ltd. the Commission for the Investigation of Abuse of Authority (CIAA) has started investigation on the suspicion that there has been abuse of authority in employee recruitments and in some expense of this company. Regulations of CDS and Clearing Ltd are also pending approval from the Securities Board of Nepal (SEBON). One positive development of the period is the appointment of SEBON Chairperson. Newly appointed Chairperson Babu Ram Shrestha has already taken over the responsibility and it is hoped that the CDS Company will get its regulations approved soon. During the month, a number of financial institutions made some definite progress towards their plan of merger. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a result, the stock exchange has halted trading in the stocks of those companies. That has subdued the trading volume. Hence it can be said that the market will show sideways movement for few coming sessions. Performance by Sector Banking sector that has been dominating the volume of trade in the Kathmandu exchange lost 8.65 points or 3.09% to close at 279.69 during the review period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Insurance sub-index plummeted 5.53 points or 1.39% to 398.14. Finance sector receded 4.54 points or 1.66% to rest at 272.88. Hotel sector descended 3.59 points along with 3.10 points decline in development bank sector to 379.01 and 278.90 respectively. The others sector shed 1.17 points or 0.24% to settle at 26.94. However hydropower sector registered a heavy growth of 44 points or 7.23% to reach 608.67. <img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/1(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Trading sector gained 4.63 points or 1.85% to close at 250.71. Sensitive index that measures the performance of 117 blue chips descended 1.78 points or 2.22% to 80.02 while the float index calculated on the basis of real transaction skid 0.34 points to 26.94. Total of Rs. 474010954 was realized during the review period from 3000729 units of share traded via 18846 transactions. <img alt="stocktaking" border="1" height="295" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/2(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="519" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The accompanying figure illustrates the sector-wise distribution based on total amount of trade. As usual, the banking sector accounted for 49.62% of total trade. Likewise, hydropower sector accounted for 22.95% while development bank covered 11.07%. Finance sector accounted for 7.39% and remaining sectors made up for the rest. Technically, Simple Moving Average (SMA) is dominating the market as 200 days SMA is far from the index while 30 days SMA is moving together with the index indicating further possibility of sideways movement for few more sessions. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em>(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</em></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><em><img alt="stock taking" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/3(1).jpg" style="margin:10px;padding:10px;" vspace="5" /><br />
	</em></span></p>',
			'published' => true,
			'created' => '2011-11-17',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'The Kathmandu stock exchangeebbedout marginally during the Dashain-Tihar festival season of this year as the dip in the prices of banking stocks pulled the index for most of the session.',
			'sortorder' => '427',
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	(int) 1 => array(
		'Article' => array(
			'id' => '521',
			'article_category_id' => '57',
			'title' => 'Brand Endorsement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sajag karki(1).jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal. Keeping in mind the economic and financial state of the nation, using brand ambassadors by business and companies as a means of branding is highly commendable. Companies are attracted to this sort of communication because celebrities have huge fan following and popularity which cuts across all demographics helping companies to build goodwill and boost sales figures. The use of celebrities in advertisements has been there in Nepal but endorsements are a recent phenomenon and are starting to give fruitful results for the investing companies. However, a very prudent decision must be made while choosing the right personality to suit a brand for a perfect match. One such popular brand ambassador in Nepal is Rajesh Hamal for Jagadamba Steels whereas he can also be seen in numerous other advertisements. It is a logical match as Hamal’s macho personality suits the endorsement of a robust product such as steel. Hamal’s public image has been exploited to give maximum mileage to the brand with positive feedback from the customers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Such big celebrity endorsers get a handsome remuneration package for the endorsements as well. One such high profile endorsement is that of Manisha Koirala for Home TV. Since the company has merged with Dish TV, Manisha and MaHa Jodi combinely promote Dish Home TV. MaHa Jodi’s comic approach along with Manisha’s aura has suited well with an entertainment related product. The MaHa duo is also the face of NLIC life insurance and Ambe Steels. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Their ever popular image has certainly helped awareness regarding the aforementioned companies but it seems a mismatch between the type of product and the personalities that the comedy celebrity duo presents forth. Apparently, life insurance and steel related product need serious approaches and use of comedy actors does not seem to do justice to the personality of the brand. Another comic actor Deepak Raj Giri is the face of Sikhar Shoes while Rekha Thapa is the brand ambassador for United Telecom Ltd (UTL). The actors seem to have done wonders for the respective companies as their popularity and likability has leveraged their endorsements. Similarly, youth icon Nima Rumba is the face of several brands in Nepal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Hence, the significance of using brand ambassadors has been felt recently in marketing products and services. Talking about celebrity brand ambassadors for multinational companies like Nike, Adidas, Coke, Pepsi etc, there has been a lot of buzz surrounding them as well. Michael Jordan’s endorsement of Nike is one of the most successful till date. He has also endorsed other successful brands such as Coke, Chevrolet, McDonald’s etc. In India, Coke has used Amir Khan and Aishwarya Rai in its endorsements whereas Pepsi being a young brand has stars like Ranbir Kapoor and Katrina Kaif to communicate the brand’s personality. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Shahrukh Khan is one of the celebrities with the most number of endorsements with numerous big brands under his belt. Not to forget, Amitabh Bachchan and the Bachchan family who combinedly endorse more than two dozen popular brands. As celebrities too are human beings who make mistakes, the negative effect of their personalities may have adverse affect on the brands they endorse. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is why companies are highly sensitive while choosing their endorsers. An alternative to celebrity endorsement is a character or mascot that represents a brand. Brand characters help grab attention as they are often colourful and promote eye candy factor. It also breaks the clutter in the marketplace and communicates key product benefits. Some popular examples are Pillsbury’s Poppin’ Fresh Doughboy and Eveready’s drumming pink bunny for their Energizer battery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Brand endorsement is not a cheap option, it's an expensive affair yet companies all over the world are attracted towards this form of marketing as it helps build their brands in the long run. With the rate at which Nepal is progressing in the advertising field, some interesting and innovative marketing approaches can be expected in the days ahead. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><em><span style="font-size: 14px;">(Karki is associated with JWT (Thompson Nepal Pvt Ltd). The article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com)</span></em></strong></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-11-01',
			'keywords' => '',
			'description' => 'Nepal has recently seen a growing trend of companies appointing brand ambassadors for the promotion of products and to enhance their brand image. Though the use of celebrities and popular personalities for brand endorsement has been around globally, the trend has picked up only recently in Nepal.',
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			'id' => '520',
			'article_category_id' => '41',
			'title' => 'The Changing Beer Market Dynamics',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;">From premium and international beer brands to locally brewed Nepali strong beer brands Nepal's beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices and price factor are among the overriding reasons for this shift. Consumers are spoilt for choices in today's market scenario and hence, they have started to prefer indigenous beer brands, asserts K P Rizal, Deputy General Manager at Sungold Brewery (Nepal) Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">This change in consumption trend has ensured that Gorkha Brewery Pvt Ltd, the market leader, has turned out to be the biggest loser in the bargain. It enjoyed an absolute monopoly in the market with over 80 per cent market share not too long ago with established and popular brands namely Carlsberg, Tuborg and San Miguel ruling the marketplace. Over the last couple of years, however, the brewery has seen a turnaround in fortunes primarily due to the change in consumers tastes and sense of pride attached with local brands. A market estimate suggests that Gorkha Brewery has seen its market share plummet sharply during this period. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"The market has shifted to lesser priced brands and it has led to the leading brewery losing market share considerably," confirms Kishor Bhattarai Chief of Sales &amp; Marketing at Himalayan Brewery Ltd. Experts allege that international brands took the market for granted and hence, created room for local brands to find a stronger foothold in the market. More consumers are increasingly opting for strong beer brands that cost less as well as promise faster intoxication. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The price of a beer is what is truly driving the market at this point of time. "The mindset of the consumers is to buy a beer with high alcohol content at cheap price," agrees Thomas Schlau Technical Director and Master Brewer at Sthapit &amp; Schlau Pvt Ltd. He says people must enjoy beer and there is a need for a culture to develop around beer drinking. Sensing the shift from the premium and international beer brands to indigenous Nepali brands, market leader Gorkha Brewery has indulged in severe price slashing in a bid to regain lost territory, reiterate competitors. So much so that its flagship brand Gorkha is now the cheapest beer brand available in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Though, of course, the brewery continues to be the market leader due to its strong show in the premium segment which it monopolises with no competition in sight by a long way. Sthapit &amp; Schlau that began production in May 2010 by using the production facility at United Breweries Nepal Pvt Ltd in Hetauda Industrial district, started with a modest 2,500 cases a month. Within a year-and-a-half, it has registered a 100 per cent growth, claims Schlau, and produces 5,000 cases a month during the 'beer season' between March and October. We have been promoting both our brands Coblenzer Pilsener and Coblenzer Marzen as natural beer and it took us some convincing to sell initially but our hard work is beginning to pay off, he says. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It started off with distributing in cities such as Kathmandu, Dharan and Biratnagar and has moved on to cover Pokhara, Narayanghat and Gorkha under its distribution network this year. The brewery, buoyed by overwhelming response from several sections of the market, plans to aggressively expand its network in the coming years. Sungold Brewery that uses up, on an average, 60-70 per cent of its 140,000 cases-a-month-capacity brewery at Damkauli in Nawalparasi is currently growing at 25 per cent per annum. About two years ago, we were growing at 100 per cent annually but due to the declining growth of the industry, our growth too has been affected to an extent,” admits Rizal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The brewery currently enjoys 20 per cent market share, he claims. It is now focusing mainly on two brands Nepal Ice (started in 2007) and Real Gold (started in 2008). While Rizal concedes that a brand name is something to reckon when it comes to international brands, he is confident that his brands will hold their own in the market as time progresses. The brewery has a strong distribution mechanism in place with 200 distributors across Nepal. He elaborates, "Distribution and market expansion is a continuous process and market growth and access dictate our distribution strategy." Not content with its impressive domestic show, it is also in the process of developing Nepal Ice as an international brand by exporting it to destinations far and wide such as Japan, USA, UK, Hong Kong, Korea and Dubai. Himalayan Brewery, which is going through a transition phase currently with a new management having taken over operations about a year ago, is already doing decently with about 9 percent of the market share, claims Bhattarai. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">"It was immensely satisfying for us to discover that our flagship brand Iceberg enjoys incredible brand recall in the market and it makes our job that much easier," Bhattarai states excitedly. With its brewery at Godavari in Lalitpur, it has around 100 distributors across Nepal and counting. Iceberg also awaits a brand line extension few months down the line. "We are looking at extending the brand to premium segment. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">There is every reason for a domestic beer to provide quality at par with international brands and compete on equal terms," reveals Bhattarai. Brewers rue the fact that advertising wise, they don't have the option of gaining mileage through the electronic media as promotion of alcoholic beverages is banned on this medium in Nepal as per a government directive. "From a marketer's perspective, it is sad indeed that we cannot avail the benefit of advertising through the electronic media," says Rizal. He is, therefore, limited to mainly use BTL (below the line) activities which includes branding of glasses, openers and signage etc, consumer sampling, sponsoring sporting events and musical concerts and, of course, print advertising. Schlau, while choosing 'Coblenzer' (the name is based on Schlau's hometown Coblenz in Germany) as a brand name, hoped that it will go down well with the consumers. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">However, as he says, "My calculation was wrong that a foreign (read German) name will get us immense mileage, it took me a little time to realise that people here have an affinity towards Nepali-ism." He too primarily depends on print advertising to promote his beers and occasionally supports events. At Moksh Bar last month, he celebrated 'Oktoberfest', modeled after the famous German beer festival in Munich. On the other hand, Himalayan Brewery, after beginning to function under a new management, started its branding exercise from scratch including developing POP (point of purchase) displays like posters and danglers, says Dhiraj Tuladhar, Brand &amp; Business Development Officer at the Brewery. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It has made an attempt to relate Kathmandu beer with cultural heritage by promoting occasions such as Nhu Dan (Newari New Year). "We are trying to cash in on the culture aspect and hope it works for us," adds Tuladhar. While it may appear that Nepali breweries make huge profit margins, they have a different story to tell altogether. Brewers allege that heavily levied taxes including excise duties and VAT are so high that beer drinking in Nepal has become a very expensive proposition for the end consumer. A case (12 bottles of 650 ml each) of Coblenzer Beer invites an excise duty of Rs 624 which translates to Rs 52 per bottle. It is extremely high. Can you imagine that a bottle of beer actually costs more than a full meal at a reasonable eatery? asks Schlau. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He elaborates, While a plate of daal-bhaat may cost you Rs 150 at a regular food joint, you will have to pay Rs 162 and Rs 167 respectively for a bottle of Coblenzer Pilsener and Coblenzer Marzen. Even though the beer industry in Nepal hasn't suffered as much as some of the other sectors in the economy, there has been a considerable decline in its annual growth rate. Enjoying a 40 per cent growth per annum about two years ago, it is now growing at a modest 12-13 per cent annually. Brewers blame this on the economic downturn the country has been facing over the last few years. Rizal blames it on poor financial activity, a result of the economy being on the slow side.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">He says, "The real estate business was booming a couple of years ago. Today, restaurant visits have minimised and people are gradually shifting towards strong beer brands due to economic reasons." The slowdown in the economy has taken its toll and impacted the industry to a certain extent with restaurants and pubs registering less than expected footfall in recent times. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">A lot of people for whom spending lavishly weren't a problem at all; income disposal has begun to matter a great deal. A 500,000 cases a month market, the annual revenue of the beer industry hovers around Rs 10 billion mark presently. Beer professionals believe that the industry holds great potential and in the future, with signs of recovery in the economy, it can look forward to better days ahead.<br />
	<br />
	<br />
	</span></p>',
			'published' => true,
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			'keywords' => '',
			'description' => 'From premium and international beer brands to locally brewed Nepali strong beer brands Nepal’s beer market has seen a tremendous shift in the last couple of years. Industry insiders opine that varied tastes, numerous choices',
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	(int) 3 => array(
		'Article' => array(
			'id' => '519',
			'article_category_id' => '41',
			'title' => 'Do Nepali Banks Require Additional Capital Injection?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" height="196" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/sujit mundal.jpg" vspace="5" width="150" />On a recent trip to Chennai, I met an American lady seated next to me. It was a flight of about two hours and hence a fairly long time to converse. She introduced herself as Gene Turnbull, a senior research scholar at Stanford University; currently working on the financial sectors of emerging markets, mainly focusing on South Asia. What a coincidence? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What is your opinion of the financial markets in this subcontinent? She looked at me for a while and then said, I may need to start from a few not too old past events that plagued the entire global financial system.That's fine with me, I quipped. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She started. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">We need to look back at the global financial crisis which erupted in 2007 and severely damaged the western, mainly the advanced economies; the US was worst affected. That point in time, Asian economies, which are mostly emerging market economies, viz China, India, Indonesia etc were doing fine. They did not immediately feel the heat of the virtual collapse in the western markets, mainly the US and advanced West European Countries. China's dependence on exports was quite substantial and hence some fears loomed large about the sustainability of high rate of growth of the Chinese economy and the valuation of the currency. India was marginally better placed in the sense that the domestic demand continued to be firm and that supported the Indian growth. She further explained that the Asian economies were far more prepared in managing themselves. The governments and regulators also remained alert post Asian crisis of the late nineties. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I asked her, What do you feel about the financial markets particularly in South Asia? I'm interested to know about Nepal. She continued . Perhaps this is not a good time for the banks, mainly in the west. They are besieged with low growth and erosion in capital stemming from sovereign debt exposures and stricter regulatory pressure. As a result, they are suffering from low return on capital. It looks like that would continue to be the case thanks to enhanced capital requirement under BASEL III. She, however, maintained that the banks in India, China and other emerging markets are more likely to sustain their returns on capital despite increased capital requirements under BASEL III. This will probably create a catalytic effect in attracting more capital in the emerging markets that are experiencing a broader economic landscape. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">As a sequel to the financial crisis of 2007, BASEL III did set forth revised rules for capital requirements for the banks. The minimum equity requirement, that is, Tier I capital will now be 7 per cent; a sharp increase from the present level of 2 per cent. Total capital requirement ( inclusive of Tier II) will increase from 8 per cent to 10.5 per cent. In addition, there will be a counter- cyclical buffer. To be precise, the banks may be required to operate with a capital in the range of 15-17 per cent in the years to come. You may know that the leading banks in Europe and the US already have capital adequacy of more than 14-15 per cent as mentioned. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The additional requirements under Basel III would necessitate capital injection of significant amount for the large banks in the west. The estimated amount of capital to be raised for meeting Basel III would be to the tune of 475 billion euros. The western banks would have to encounter at least three main challenges in the process of implementation of BASEL III viz firstly, the enormity of Euro Zone crisis, secondly, the slowdown in lending and contraction of balance sheets, and thirdly, stricter regulatory requirements emanating from the respective central banks. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">To tell you honestly, I was enjoying the analysis. She continued. You may well guess that the investors would think twice before putting their money in the western banks as the ROI would shrink, though the safety around their investments might be better than before. So, there would be an inclination for the investors to look towards the east. I asked her, What is your opinion about the banks in India? <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">She replied that although the Indian Banks are passing through a stressful period resulting from falling net margin in interest, higher incidence of nonperforming loans and more restrictions imposed by the central bank in respect of sectoral lending, these banks are better positioned to maintain a good return on equity in the long term. The growing domestic demand in the EME's (emerging market economies) and their conducive macroeconomic policies would help boost bottom lines of the banks in these countries including India. I then categorically asked her a question about the smaller economies in South Asia viz Nepal. I explained my interest in knowing about Nepal. She remained quiet for some time as if she was drowned in deep thought and then quipped, What is your specific question?</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I replied, What do you think about the banking system in this country? She was of the opinion that the country was in the early stage of development and the accompanying financial system needed higher level of governance and stronger foundation in the form of stricter implementation of regulations and transparency. She felt that the supervision system of the central bank needed further strengthening and more professional approach in the sense that they should not see wood for the tree.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">I could not agree more that her observations were interesting. Against the back drop of a looming financial crisis in the Euro Zone and the very slow recovery in the US, it is quite likely that contagion effect can hit the emerging market economies including Nepal and this may lead to the crisis of confidence. Banks will experience falling returns, lesser ability to support credit off take and higher incidents of NPA. Considering all this, I asked her my final question on Nepali financial system, Do you think Nepali Banks require further injection of capital in order to maintain capital adequacy and create a cushion against possible erosion? She thought for a while and responded mildly, Yes, but it needs a lot of debate and political consideration . She was absolutely right. I think this is a serious subject for discussion and the sooner it is done, it's better for the country. </span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span><em><br />
	</em></span></span></p>
<p style="text-align: justify;">
	<strong><span style="font-size:12px;"><em>(Mundul is a Director with Standard Chartered Bank Nepal Ltd)<br />
	<br />
	<br />
	</em></span></strong></p>',
			'published' => true,
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			'keywords' => '',
			'description' => 'On a recent trip to Chennai, I met an American lady seated next to me. It was a flight of about two hours and hence a',
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	(int) 4 => array(
		'Article' => array(
			'id' => '518',
			'article_category_id' => '39',
			'title' => 'Qatar Airways: World 5-star Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramdas.jpg" style="margin:10px;padding:10px;" vspace="5" width="150" />Having started its operations in Nepal with a single flight each day about a decadeand- a-half ago, Qatar Airways has come a long way indeed. Aptly awarded a 5-star rating by Skytrax (a UK-based consultancy that carries out international-traveller surveys and ranks airlines and airports), it has increased its frequency to four flights each day beginning 1 October this year. Qatar Airways flies out of Kathmandu every day at 9:45 am, 8:30 pm, 9:30 pm and 11:30 pm.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">While the first two flights primarily carries migrant workers, the next two mostly have passengers who use the airline as a network carrier to reach their respective destinations in North America, South America, Africa and Europe, informs Ramdas Shivram, Country Manager for Nepal. Migrant workers boarding the 9:45 am and 8:30 pm flights go on to connect with GCC (Gulf Cooperation Council) countries and passengers on board 9:30 pm and 11:30 pm flights use the airline's hub Doha as a transit point to continue their onward journey to other continents. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The next two flights comprise expatriates living in Nepal, tourists as well as Nepalis living abroad, adds Shivram saying that around 5,000 passengers used the airline's services each way within the first 10 days of operations since flight frequency increased 1 October onwards. With four Airbus A320 carriers flying out of Kathmandu and, correspondingly, four flights coming into the city each day, Qatar Airways in Nepal sees the potential of selling in the region of 420,000 seats per annum. Shivram, who joined the airline in 2005 and took over its Nepal operations in November 2010, says Qatar Airways has expanded in Nepal after sensing a large potential in the country. On a global level, it aims to be the biggest international carrier. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Advertising &amp; Promotions </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">An essential part of its marketing strategy, the airline seeks to reinforce brand position efforts and provide a platform to deliver credibility for its brand. It makes every possible effort to expand brand visibility and link Qatar Airways brand attributes and values with its customers to establish lasting and loyal relationships with them. While ATL (Above the line) advertising is taken care of by its global head office, the airline indulges in local advertising and promotions by sponsoring sporting events such as golf, organising road shows, holding promotional programmes directed at travel agents, supporting educational programmes on television and publishing advertisements and media releases in major daily newspapers. Shivram cites an example, To promote knowledge about the recent increase in flight frequency, we organised a road show where we approached top 50 travel agencies in Nepal. It was a very successful event.<br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Work Culture</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Qatar Airways has 42 people working at its Kathmandu office, a sizeable number for a foreign airline. It has always tried to hire individuals who can work independently on their own. Shivram, who himself is equipped with a post graduate diploma in human resources, is well acquainted with critical issues such as organisational behaviour. He says that his expertise comes in handy while dealing with his colleagues at work. We try to hire the best talent available and send them to Doha for training. I personally believe in giving ample time and room for adaptation and mentor co-workers who show intent to shoulder greater responsibilities,he further states.</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Market Potential <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline is growing at 35 per cent per annum globally and flies to 107 destinations (Oslo, Norway launched on 5 October this year being the latest one) worldwide with an impressive fleet of 100 aircrafts. It plans to serve more than 120 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America with a fleet of over 120 aircrafts by 2013. From Nepal's perspective too, Qatar Airways aims to become the number one airline in terms of time, connectivity and delivering best service. And to achieve this objective, it offers attractive schemes pertaining to specific destinations during the off season. Shivram rubbishes criticism from certain quarters that Nepal does not have a great deal to offer civil aviation in terms of numbers. He says, The fact that as many as 27 international carriers are operating in Nepal is proof enough that this market holds tremendous potential. He further believes that better infrastructure, improved navigation system and enhanced security arrangements at the Tribhuvan International Airport along with making it operational for 24 hours a day can do wonders for Nepal's civil aviation prospects. <img align="left" alt="plane" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ari.jpg" style="width: 344px; height: 145px; margin: 10px; padding: 10px;" vspace="5" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>Unprecedented Success <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The airline takes incredible pride in being a national carrier representing the State of Qatar. Voted Airline of the Year 2011 in the prestigious Skytrax industry audit, Qatar Airways has won the confidence of the travelling public. Since its re-launch in 1997, it has reached the pinnacle of the airline industry for outstanding in-flight service, superior onboard products, and operational excellence among others. Shivram attributes the record success to the airline's clear objectives, ambitions and a focused CEO in Akbar Al Baker. Since becoming the CEO of Qatar Airways in 1997, Al Baker has been instrumental in shaping Qatar Airways into one of the fastest growing and most highly acclaimed airlines in the world. Over the last decade, he spearheaded the airline's growth, which operated only four aircrafts in a regional capacity prior to his appointment. Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends, asserts Shivram. Despite being a foreign entity in Nepal, the airline has tasted success because it realised the need to get into the roots of the local culture and acted on it. Shivram says, Practicing the corporate philosophy of Qatar Airways along with correct product positioning and successfully establishing the right business environment has got us this far. Being responsible to internal as well as external customers is absolutely vital for any company's success, he concludes.<br />
	<br />
	<br />
	</span></p>',
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			'description' => 'Our decision of continuing to expand even during the difficult period of global recession a few years ago has fetched us handsome dividends.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '517',
			'article_category_id' => '37',
			'title' => 'Prolonged Economic Crisis: By Achyut Wagle A Case For Democratic Capitalism',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size:12px;"><img align="right" alt="economy" border="1" height="209" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/achyut wagle.jpg" style="width: 160px; height: 209px;margin:10px;padding:10px;" vspace="5" width="160" />When the USA was frantically trying to come out of perhaps the worst economic recession in modern times, the Eurozone reeled under even more serious cycle of economic meltdown. Angry verbal exchanges between British Prime Minister David Cameron and French President Nicholas Sarkozy in Brussels meeting on 23rd October and apparently crestfallen Sarkozy coming out of a meeting with German Chancellor Angela Merkel a couple of days earlier are surmiseable indications of the fact that the days of economic certainties in the world are still beyond horizon. The reportedly emerging consensus among the Eurozone leaders might find some solace for now. In fact, they have no alternative to evolving such consensus, but the days of worries of world economy wouldn't be over just by such isolated moves of bail-outs or write-offs unless the very cause(s) of these problems are addressed at the root. The most repeated statement of the present day economists and economic analysts is: Even if the USA and the Eurozone&nbsp; specifically Greece, Italy, Portugal, Ireland or Iceland -- came out from the current mess by some means, the world will not be the same again. Then, how would the new world look like? Nobody has a definitive answer. But, there is no alternative to finding out not only a convincing answer to this question but a workable framework to save the world from such too frequent and highly pervasive economic crises. Both, such frameworks and answers, can be devised by reviewing the past and taking unconventional strategies that suit to the present-day realities. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>1. Oversight Failures :</strong> When the subprime crisis was at its height in the US in 2008, Eurozone leaders were proudly boasting the robustness of their conservative supervisory regime of the financial system and were not subscribing the idea that their financial systems were not immune to similar- inbred if not contagious- crises. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The series of these crises have now exposed the fact the exiting supervisory and regulatory framework worldover has become virtually dysfunctional and a new one encompassing the contemporary, and if possible future, trends is not yet in place. Even worst, no meaningful homework has begun to that end, so far. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The movement of funds aided by mainly three distinct features-- the exponential growth in information technology, wider transport connectivity and high movement of people and new tools of trade in the money market like derivatives future-- have far outpaced the efficiency, jurisdiction and reform of both global and national financial systems oversight regimes. International flow of funds through legal channels, i.e. more or less detectable by any form of the regulatory radar, is less than 4 to 5 percent of the total estimated global transfers. On the legal side of the transfers, estimated value of world merchandise exports in 2010 was US $13.36 trillion and world commercial services exports in the same period was $3.64 trillion (Source WTO secretariat website and calculated on projected 10% rise in 2010 from 2009 actuals of world merchandise exports equivalent to $12.15 trillion and world commercial services exports $3.31 trillion). <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Similarly, according to an estimate by the World Bank, officially-recorded remittance flows in 2010 was about US$440 billion worldwide. And, crossborder investments in capital markets and real estate combined was to the tune of $330 billion. With all these transfers put together, even in exaggerated terms, the recorded total transfers of funds across the globe would hardly cross the $ 20 trillion mark. On the contrary, according to the Bank for International Settlements (BIS), amount of derivatives transactions stood at $601 trillion in December 2010, up from $583 trillion six months earlier. It was at the record level of $684 trillion in June 2008. Interest rate contracts form more than 75 percent of the derivatives futures transactions. (As reported in The Economist, May 31, 2011) The figures presented by the Daily Finance, a subsidiary portal of AOL, is even more appalling. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">It says, One of the biggest risks to the world's financial health is the $1.2 quadrillion (one quadrillion is 1,000 billion) derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy Apart from these monetary-side regulatory gaps, fiscal regulation is also facing new challenges as the national boundaries are gradually becoming irrelevant partly by the sweep of globalization and partly made so by design, particularly in case of Eurozone, with the introduction of common currency, the Euro. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">With the introduction of the common currency, the national-level supervisory/regulatory authorities have become redundant and the national accounts failed to present the true picture of the economy as many crossborder transactions take place unrecorded. The window of currency conversion that used serve also as the basis of record of cash flows across the border is automatically out of practice. The forceful homogenization of the currencies of weaker and stronger economies has prompted unhindered and unregulated capital flights from weaker to stronger economies, breeding even graver crisis situations in weaker nations. Greece is the latest striking example. <img align="right" alt="ecomony" border="1" height="346" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/fig.jpg" style="margin:10px;padding:10px;" vspace="5" width="504" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">Such capital flight is but natural phenomena, because weaker economy also meant less rate of return on investment, lesser degree of security and higher degree of unpredictability. And, common currency has facilitated it in a great deal. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>2. The Political-Economy Issue:</strong> With the crisis aggravated more on every passing day, and resolution of it nowhere in sight, a number of ecopolitical issues have also come to fore. The worldwide fever of Capture Wall Street has created a new debate on possible collapse of capitalism. The advocates of egalitarian welfare state seem happy that the old good days of state-sponsored social safety model of economy would return soon. In the virtual mayhem, the virtues of both democracy and capitalism are pushed behind the dark shadow, a true concern for the future of the world economy and polity. In name of addressing the crisis, the electorates are kept completely aloof in taking the economic decisions that affect their lives the most. Their elected representatives are equally helpless as the common man on street, like in the case of Greece again, or their representatives like in the US take the decisions on the issues never mentioned in their election manifestoes, thus acting on democratically unmandated domain. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">These factors in due course are likely to raise more excruciating questions on the very rationale of election and their leaders authority to rule. This would certainly take way some beauties from the democracy. Another important question here is: has capitalism really failed? Or, are mere consumerism and irrational greed at the peril? The differentiation is not easy. But the fact is, it is not the capitalism that has failed but all the problems, perhaps without exception, are borne out of sheer anti-capitalistic and antidemocratic moves of the economies and their leaders at the helm. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">One of the greatest beauties of capitalism is the Economic Darwinism. The state must let the companies of whatever size that are already or become unable to compete in the market, fail. But, the problems multiplied to take the world at present situation when powerful economies set wrong precedent by bailing out ailing banks and companies at the expense of the tax-payers money. And, in the process, the decision makers did it without taking such important issues to the public through polls or referendum, which compromised the very tenets of the democracy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;">The ongoing global economic crisis, however, should be able to ignite a new debate on necessity of democratic capitalism as new future eco-political model. This new philosophy must not only be able to force the governments to act according to the principles of democracy and/or capitalism in isolation, but should establish it as a united theory where these two are treated as inseparable elements in future ecopolitical governance. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><strong>3. The Future:</strong> The hypothesis of democratic capitalism is certainly useful to resolve the present crisis. Even more, this paradigm-shift would prove more appropriate as the shifting of economic might from West to East, from democratic to authoritarian country. Observing at the difficulty in resolving current crisis even in the highly transparent economies like the US and Europe, one can easily think of gravity of situation when similar problem arise in secretive but the second largest economic powerhouse like China. The simultaneous emphasis on democracy as that only ensures transparency and, respect to the ideals of capitalism that promotes free competition in any odd situation, can only in unison make the future world safer to live and do the business in business-like fashion.</span></p>',
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			'description' => 'The reportedly
emerging
consensus
among the
Eurozone leaders
might find some
solace for now.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '515',
			'article_category_id' => '52',
			'title' => 'Hoax Of Free Competition',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size:12px;"><img align="top" alt="" height="336" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/from the editor.jpg" vspace="5" width="500" /></span></p>
<p>
	<span style="font-size:12px;">Last couple of governments made headlines for declaring that appointments of the chiefs of public enterprises would be made through a free competition. Going a step further, present government opened˜tenders even for the constitutional positions like the chief and other commissioners for the Election Commission, Commission for the Investigation of Abuse of Authority (CIAA) and Public Service Commission. <br />
	</span></p>
<p>
	<span style="font-size:12px;">At the face, it appeared as a welcome idea as those crucial institutions could now expect to be headed by the most talented professionals than the political cronies of the party in power. Some of the selection process, like for the Executive Director of Nepal Electricity Authority (NEA), at the beginning appeared reasonably fair. The erstwhile government made the appointment on the basis of that very selection. Even the present government has appointed in couple of positions by calling for applications, like in case of the Chairman of Securities Board of Nepal (SEBON). <br />
	</span></p>
<p>
	<span style="font-size:12px;">However, status of application collected for constitutional bodies is yet in the dark. But, as it turned out now, all these so called free competitions were mere hoax. Ultimately, only hardcore cadres of the ruling party are getting appointment. The new NEA Executive Director turned out to be a devout UML party worker and Chairman of SEBON a staunch Maoist supporter. In both cases of NEA and SEBON, there were more qualified persons than those who were lucky enough to be picked for the job. But those PhD degree holders and true professionals were summarily discarded. <br />
	</span></p>
<p>
	<span style="font-size:12px;">Then, why is there drama of free competition as the people in power were freely appointing their near and dear ones in these positions for years? Because, this has several advantages for both the appointee and the appointer. Generally, such government appointments are made with a clause for maximum of (so many) years if it is a political appointment as in the past. But the person who is selected through free competition&nbsp; has a negotiation power not only on tenure but also for the perks. Then it has two advantages. First, the chosen cadre will have a fixed term appointment instead of uncertain maximum of. Second, he can bargain for better pay than the normal effective government pay-scale. In turn, the appointing party also can bargain for the appointee's contribution mostly monetary, called levyâ. <br />
	</span></p>
<p>
	<span style="font-size:12px;">What is important here is not the process but the intent of the appointer. If their intentions are to appoint the best professional, the free competition for mere publicity is an unnecessary waste of time and resources. On the contrary, if the ruling parties want their own cadres in any pretext, the so called free competition will only add to the worries of public enterprises, most of which are already in precarious situation.<br />
	<br />
	<br />
	</span></p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-08-31',
			'keywords' => '',
			'description' => 'Last couple of governments made headlines for declaring that appointments of the chiefs of public enterprises would be made through a free competition.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '514',
			'article_category_id' => '31',
			'title' => 'Nepali Market Is Strategically Very Important For Us',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>Indranil Sinha,</strong> the Director of Exports of Whirlpool India Limited was in Nepal recently, for the opening of two exclusive Whirlpool showrooms. He handles the international export of Whirlpool for South Asia. In an interview with New Business Age, he talked about the prospects of Whirlpool products in the Nepali market. Excerpts:</p>
<p>
	<strong>How is the trend of sales for Whirlpool products in Nepal?</strong></p>
<p>
	Nepal has been one of the best performing markets for us in the last few years. However, I think the penetration of home appliances is still very low in Nepal. In Kathmandu, the market is good, but outside the valley, it's not much to write home about. We have been present in Nepal for the last 15 years, so we have a good network. We try to make sure that the products reach all over Nepal. Our appliances have made a good name for themselves. I wouldn't say the market is very profitable because if the prices are high, the buyers switch to other companies very easily. We are not very conscious about profitability right now; we are just trying to develop a brand image.</p>
<p>
	<strong>The Nepali market is relatively a small one. How important is it for your portfolio?</strong></p>
<p>
	I don't think the market is really small. With a population of nearly 30 million, it's quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here. In Sri Lanka, the population is about 20 million, but the sale is around 250,000. In Nepal, the market is growing and so is our market share which is about 15 to 20 per cent. As the market grows, we want to maintain or even improve on our market share. In about five years, I see the market doing very well. Therefore, the Nepali market is strategically very important for us.</p>
<p>
	<strong>How tough is the competition? <br />
	</strong></p>
<p>
	The competition is very tough everywhere today, and Nepal is no exception. A number of Asian brands, Japanese or Korean, are strongly dominating the market. But for European or American brands, we are comfortably placed at number one. All our Asian competitors are dealing in home appliances and consumer electronics like television, mobiles, laptops, monitors and other products as well. But our focus is only on the home appliances. We basically manufacture products that are used around the kitchen and make life easier for the users. You might not see flashy lights and a lot of buttons in our products, but you will get genuine benefit and convenience from them.</p>
<p>
	<strong>What are the unique features of your product? What is it that gives you an edge over others? <br />
	</strong></p>
<p>
	We have a refrigerator model in which we have used a technology that keeps food fresh even if there is a power outage for 15 hours. We discovered that generally the compartments of the refrigerators are opened every 10 or 15 minutes in a household to fetch vegetables, water and other items. The door opens and closes so many times and at the same time, hot air goes in. So the refrigerator has to consume extra power to keep things cool, which is not efficient by any means. We have come up with Proton series of refrigerators where we have separated the vegetable storage compartment in a drawer at the bottom and the refrigerator compartment remains at the centre. So, the whole refrigerator does not need to be opened all the time. This makes the refrigerator consume less power. We have applied similar innovations for other appliances as well.</p>
<p>
	<strong>What are your future plans for the market here in Nepal? <br />
	</strong></p>
<p>
	We have recently opened two exclusive showrooms in Kathmandu. This will definitely help in making our product more visible. We are specially focusing on the market in Kathmandu, where there are opinion makers and trend setters. All the latest products will be there in the showrooms in the capital. We are also offering new schemes for the buyers and will be bringing in new products as well. We have new designs of kitchen chimneys, hobs, water purifiers, clothes dryer and microwave ovens.</p>
<p>
	<strong>Is there a possibility of Whirlpool establishing a manufacturing unit in Nepal? <br />
	</strong></p>
<p>
	Right now, we don't have any such plans. We already have three factories in India and two in China, so opening a manufacturing unit here will not be economically feasible. But still, it's a probability that we may open a facilitating office here in Nepal because at present, we are operating through a distributor.</p>',
			'published' => true,
			'created' => '2011-11-16',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'With a population of nearly 30 million, Nepali market is quite big. It appears small only because of the low penetration. The sale of our appliances is only around 100,000 here.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '513',
			'article_category_id' => '31',
			'title' => 'Increased Awareness Of Incoterms Would Help Local Banks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="1" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/pavel andrle.jpg" style="width: 241px; height: 463px;" vspace="5" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Pavel Andrle</strong> is Secretary of the Banking Commission of International Chamber of Commerce-Czech Republic (ICC-CR) and regularly represents ICC-CR at the ICC Banking Commission meetings abroad. He has been deeply involved in the revision of UCP as a member of UCP 600 consulting group formed by over forty experts from all over the world. Andrle has also been closely involved in the revision of URDG 758. He has participated in the development of ICC-CR certified course Incoterms 2010 Masterclasses and currently serves as one of the ICC-CR official trainers for Incoterms 2010. He has been appointed ICC-CR expert to reply to enquiries related to Documentary Credits and Trade and Structured Finance development of technical assistance consultancy services of ICC-CR to banks, carriers, insurance companies and traders. Andrle was in Kathmandu recently and led a two day seminar for bankers on Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees&nbsp; URDG 758 organised by National Banking Training Institute (NBTI). In an interview with New Business Age, he talked about the features and benefits of the banking commission documents he trained the seminar participants on. Excerpts:</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Please tell us about this seminar that you had for the Nepali bankers.</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Well, it was a very successful two day seminar and about 30 bankers representing more than 20 banks participated in this programme. We focused on issues such as Incoterms 2010 and Documentary Payment instruments, ICC Rules for Documentary Credits UCP 600 and Demand Guarantees URDG 758. The seminar was very useful for professionals working in the trade finance sector and dealing with documentary collections and documentary credits that a bank guarantees. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Could you please elaborate on Incoterms 2010?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Incoterms which translates to International Commercial Terms are developed by International Chamber of Commerce. Incoterms are part of Uniform Customs Practice (UCP) 600 widely practiced and followed by banks worldwide for mostly out of country transaction through Letter of Credits. The Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods and are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000. In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules applies regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation over water. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How important is URDG (Uniform Rules for Demand Guarantees) 758 and what does it imply?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The URDG 758 is a set of contractual rules that apply to demand guarantees and counter-guarantees. As the URDG are contractual by nature, they apply only if the parties to a demand guarantee or counter-guarantee so choose. The URDG can adequately provide an operational framework for any situation where a demand guarantee is required, whatever the situation is in the public or the governmental sector involved. Agreeing to issue a guarantee according to URDG spares the parties the effort of drafting extensive clauses to describe the independence of the guarantee, its irrevocability, its non-assign ability and the guarantor's duties and more. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the benefi ts with using URDG 758?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Once the URDG are incorporated in the guarantee or counter-guarantee text by contractual reference to the URDG, they are deemed to be entirely incorporated, unless specific article(s) are expressly excluded or amended. A URDG guarantee and counter-guarantee enter into effect from the date they are issued, unless their terms expressly postpone their entry into effect to agree with a later date or the occurrence of an agreed event. Accordingly, no demand for payment can be presented until the guarantee enters into effect following the occurrence of a specified date or event indicated in the guarantee.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How will these programmes help the Nepali banks and bankers? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks to exercise acceptable international norms in issuing and accepting Letter of Credits. Besides, many issues arising out of international trade can be mitigated. The programme will help the banking staff working at the Trade Finance Department of their respective banks on recent issues related with issuing and accepting Letter of Credits and how to quote and implement Incoterms in the Letter of Credits.</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><br />
	</span></p>',
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			'description' => 'The bankers who participated in the seminar already had a fair knowledge of the issues that we discussed. However, the increased awareness of the said topics would certainly help local banks.',
			'sortorder' => '419',
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	(int) 9 => array(
		'Article' => array(
			'id' => '512',
			'article_category_id' => '31',
			'title' => 'Our Product Is Of National Interest For Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="left" alt="" height="261" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/subhaog ghosh.jpg" style="margin:10px;padding:10px;" vspace="5" width="420" /></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Subhamoy Ghosh</strong> is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer. Ghosh joined Palfinger India on in June 2010 and looks after product management and business development of Palfinger Cranes in India along with overseeing finance and human resource functions. He was in Nepal recently to understand the market demands and requirements for Palfinger Products here. In an interview with New Business Age, he shared his understanding of the Nepali market and plans for Palfinger here. Excerpts:</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Can you tell us something about your products? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">We come from the field of transport solutions and our job is to make easy and quick loading as well as unloading of a truck so that it can go for another trip without wasting time. Transporters earn money when they make more trips and our main job is to give transport solution to the transporters. Besides being a lifting and shifting solution provider, we are a multiproduct group having seven major products. We are making our entry in Nepal with the truck loader crane and, in a couple of years from now, we will be introducing more from our product line. The Nepali market has some experience of using second hand Japanese trucks which come fitted with these kinds of cranes. On our part, we will be bringing two cranes: Stiff Boom Crane and Knuckle Boom Crane. Normally, cranes are known for loading and unloading using hooks but this one can perform even clamping and grabbing operations. The Knuckle Boom Crane can even drill a hole. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Is there any special reason behind choosing these two cranes specifi cally?</strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">In Nepal, everything has got stagnant and the market has become slow in the last five years. I believe that it is a good time to become better and catch up with the rest of the world. Nepal needs to develop its infrastructure very fast by constructing more roads, bridges, buildings, modernised airports etc. If the industrialisation in Nepal has to take place, abundant infrastructure needs to be there first. These cranes combined with trucks can play a fantastic role in infrastructural projects because these can lift materials and deliver to the projects. As Nepal is a geographically difficult terrain, it is not possible for any project to keep materials close to its vicinity. With truck loader cranes, we are adding versatility as they are more suitable for rental companies. Owning a crane independently may not be economically viable for companies in a small market like Nepal. Besides private players, the public firms too can be better served by these machines. Mechanisation is the solution for efficiency and can save human resource for other purposes while ensuring safety at the project sites. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How can small and large projects alike benefi t from these equipments? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">These can be used mainly in medium to large projects since they may not be cost effective for small projects due to the price factor. We are in the initial stage and trying to increase visibility of the product in the market as people should know what they can do with this kind of equipment. This crane can be used in various aspects such as construction, electrification, municipal waste, cargo distribution, at factories etc. So, we want to let the market decide how can the crane be best utilised as per various needs. Our job as a supplier is to give exposure to the market about the functionalities of these cranes. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you see the market prospects in Nepal? Are there any competitors in the Nepali market for you?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Our ambition is to introduce 20 to 25 cranes in the first year in Nepali market for various applications. Then we can expect to grow along with the economic growth of Nepal. In advanced countries, manpower is expensive and it is not ready to do manual jobs and even the law prohibits it to some extent. So they have one crane for every five to 20 trucks whereas in Nepal and India, there is not even one crane for 100,000 trucks. I believe that 20 to 30 cranes should be fitted to every 100 trucks deployed. As of now, there is no competition for us in Nepal for new trucks and new cranes. The only competition is from the used trucks which I believe is not good for Nepali environment as they do not even meet environmental safety standards. If the import of these used trucks can be stopped, we will have no competition at all. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>After sales service becomes a major issue whenever new equipments are launched. How do you plan to address this? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">This is the main reason why we have selected an able partner in Infratech. They have a strong presence in the market and enjoy recognition among customers. They will be further trained and groomed for this purpose but most importantly, these are maintenance free vehicles. Customers can not damage it even by choice as it has a host of safety protections, however, we don't want to take any risks and hence, we will also have a spare parts shop for the machines locally.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to establish your brand image in Nepal? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">What we do in any new market will be done here as well. Once the dealership is announced, we will try to reach our customers through various media vehicles. We have certain branding plans targeting our users and customers. We normally try to reach as many potential customers as possible and as frequently in a year. We will organise likeminded customers meet, for example, one meeting for construction people while another for government officials. We believe that communication exercises will help us establish a decent brand image here in Nepal. <img align="right" alt="" border="1" height="201" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ghosh 2.jpg" style="margin:10px;padding:10px;" vspace="5" width="144" /><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the challenges you see for yourself in the Nepali market? How do you plan to overcome them?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">From a commercial point of view, the duty structure is unimaginably high particularly for a non-manufacturing country like Nepal. Such a heavy duty is actually bound to put a lot of pressure on buyers since they might be discouraged to buy such products despite wanting to have them. Secondly, there is almost no general awareness about this product so convincing the customers on a priority basis will be a big challenge. For the commercial solution, we have to meet the government of Nepal to see if anything can be done because this is a product of national interest for the country. It is not for somebody's personal use and promises to add value to the growth and development of Nepal. Educating the market is our duty and I hope that our marketing efforts and visible involvement in the market will ensure this.</span></p>',
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			'description' => 'Subhamoy Ghosh is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '511',
			'article_category_id' => '31',
			'title' => 'The Nepali Market Is Dominated By SMEs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><img align="bottom" alt="" height="357" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/shinji tada.jpg" vspace="5" width="198" /><img align="bottom" alt="" height="359" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/amit ali.jpg" vspace="5" width="199" /><strong><br />
	<br />
	Printers from Brother were available in the market for quite some time. What is the motive of officially launching the new line-up in the market now? <br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We were available for the last two months but we were still continuing with the current line-up. A couple of new models were brought a few months back and now the entire line-up is available. We decided to organise a formal launch now because we have changed this line up for the first time in three years. Laser printer comprises almost 90 per cent of our business so it is very important for us. Once the line-up was fully available, we decided to introduce the range formally in the market. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you analyse the Nepali market for your products? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Tada: This is an emerging market. It has potential to grow in the future but so far, this is a price sensitive market. So, we have launched products that are specifically targeted at emerging markets. I think with this range, we can achieve good results and gain more market share. <strong>Ali: </strong>I think the entry level models three-in-one and fourin- one printers have the highest sales prospects in Nepal because these are products that are very popular already. We want to sell more colour and high end products for corporate users.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>How do you compare the Nepali market with other Asian markets? </strong><br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> I think that the customer profile is different in Nepal. In other markets, there are more corporate houses and big companies who are our customers. But, the Nepali market is dominated by small and medium enterprises (SMEs). There is very low presence of foreign investments and no big multinational companies whatsoever. This is one of the biggest differences. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> In Asian markets, we have different types of countries ranging from Australia, a very developed country to Vietnam, an emerging country. The main difference is in the profile of customers. Nepal is a little less developed compared to other Asian countries like Malaysia and Thailand which are better developed. They have strong corporate customers who are well educated. They are definitely cost conscious but they also know the importance of warranty. In Nepal, for example, around 90 per cent users depend on refill for laser products. This market needs a lot of education. A refill may save cost in the short term but over a period of, say, five years; it turns out to be complicated and damages the machine making it an expensive proposition. Our approach to the Nepali market is the same as in other regions because we are trying to enhance the education and awareness level of the customers. In terms of market growth and potential, this market has better prospects than any other Asian countries because they have already reached a certain level of penetration. The IT penetration is still low especially in the rural areas. We are optimistic that over the next 10 years, the IT sector will grow tremendously. Even the government sector has minimal exposure to IT so hopefully it may invest more in the next five years and we can grow along.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What is your strategy to cater to home as well as corporate users?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> The corporate houses are our main target customers especially SMEs. This can prove to be the strongest market segment for Brother. Along with a few big companies, there are many SMEs in Nepal. These laser products rightly suit our target customers’ needs and that’s why we have introduced these products here. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are the specialities of Brother Products compared to other similar products?</strong></span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali: </strong>There are three main reasons why Brother Products are known all over the world: (a) Quality, (b) very easy to use products and (c) strong and reliable products. Our products are popular in the USA because they are easy to use and install and it is our biggest market in small office segment. In case of Nepal, we have seen the results over four years now and our products are also being used in very remote regions. We are bringing in laser products which are customised for Nepali condition which we don’t sell in another region, for example, the Gulf countries. These products are customised for Nepal’s voltage and electricity situation making them very strong and reliable for usage in remote areas as well. The Brother Products come with a threeyear warranty and we believe that this will appeal especially to the corporate customers. They can have good quality, stable and strong machines as well as service and maintenance which is taken care of, for three years. We are very balanced between price and performance as we are not the cheapest brand available but we are also not the most expensive one around. We offer a combination of good price and performance to the consumers.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Your products are said to be environment friendly too. Tell us more about it</strong>. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We are committed to make environment friendly products and the Brother Products have received Ecomark and Blue Angel certification from Europe. This is the toughest environment certification to get anywhere in the world and now-a-days in Europe, you cannot participate in tenders unless you have this certification. All our products are certified which means that the parts, components and materials we use to make our products are environment friendly and bio-degradable as much as possible. Our products consume very less power and, in laser products, we use separate toner and drum technology which means the materials used in those items are less dense and hence, more easy to recycle. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Tada:</strong> We are trying to be an eco-friendly company and we are now producing different models that can print on both sides of a paper and thus ensuing lower paper usage. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is your volume wise sales target for the market here? <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>Ali:</strong> We keep an annual target for this market like any other market. Based on our distributor’s commitment and comfort level, we decide a target with mutual consent and increase it every year. So, in the last four years, we have grown four times and our plan is to grow four times further till 2015. We do have a very ambitious target and hope to meet it.</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><strong>What are your strategies to meet this target?</strong> <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;"><strong>Tada:</strong> We want to grow along with our distributors by taking care of the market. We have prioritised the Nepali market as it has a good potential. To make our business sustain and retain our customers, we need to provide good service to our customers besides sales. Once they buy a machine from Brother, the service they get from us determines whether they will choose to be a regular customer of Brother. The sales target for certain emerging markets will be introduced in due time and we believe that we will be able to achieve it.</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '2012-10-31',
			'keywords' => '',
			'description' => 'Shinji Tada is the Managing Director of Brother International (Gulf) FZE (BI) and Amit Ali is the Deputy General Manager of Printing and Solutions Division at BI.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '510',
			'article_category_id' => '38',
			'title' => 'HR Budget',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need, cost is considered as a major factor. We all like saving of time and money at all levels whether in personal life or in business circumstances. The purpose of business entity is the profitable manufacturing and/or supply of goods and services to fulfill economic necessities ensuring satisfactory returns to all stakeholders mainly known as economic and social suppliers, that is,. investors/owners, members/employees of the enterprises, customers, and the society. Hence planning and budgets are developed in business enterprises to analyse and evaluate managerial decision making on account of spending and output achievement.&nbsp;</p>
<p style="text-align: justify;">
	 </p>
<p>
	Human Resources Management, in the process of effective utilisation of the people resources towards achievement of overall organisational goals; performs number of functions broadly named as:</p>
<ol>
	<li>
		Organisational Planning in support of determining its need, structure and relationship strategies. </li>
	<li>
		Staffing covering headcount planning, recruitment, selection and placement, job designs and profiling, orientation and separations.&nbsp;</li>
	<li>
		Skills Enhancement comprising of training need analysis, training activities and evaluation of programme offered. </li>
	<li>
		Compensation &amp; Benefit processing job evaluation, designing and operating suitable salary package/ structure and variable pay package. </li>
	<li>
		Motivation starting from performance appraisal moving through recognition to financial and nonfinancial incentives. </li>
	<li>
		Employee Relations beginning from discipline, counseling, grievance handling moving through recreation and welfare activities, eligibilities (leave, provident fund, gratuity etc) medical services to collective bargaining etc</li>
	<li>
		Personnel record comprising personal information gathering, database development, talent inventory etc making complete employee record. </li>
</ol>
<p>
	Therefore, the cost of human capital represents one of the largest operating expenses into any business. It impacts financial results indirectly in the form of recruitment, motivation and morale, skills enhancement etc impacting quality of operations that supports building customers’ confidence leading to customer retention resulting into revenue/profit. Developing effective human resources budgeting strategies leverages organisations to improve accuracy in cost prediction, control mechanism over budget and realising significant savings. HR budgeting brings together data from different sources, for example, HRIS (Human Resources Information System), Payroll, Performance Management, Sales forecast etc and generates full picture of current and future business positioning. The HR budget is operating budget within the organisation. </p>
<p>
	Budgeting involves information and data to enable finance project organisation’s overall objectives and profitability. The finance unit of an enterprise determines budget structure element and HR unit generates elements of people cost. There are mainly two methods that are applied in budgeting: a. Generic incremental method: Using current budget, next budget is developed through adjustments on each item in close consideration of expected business move, market inflation, consumer/customer sentiments, past success rate etc. b. Zero-based budgeting method: The process begins with zero as base and each item included in the budget is justified before inclusion. It is an organised approach to decide the funding level and performance level in the context of scarce resources and new priorities from scratch – as if no operations exist (before). Whilst creating human resources budget, absolute necessary attention is expected on income of the business moving to investment on people resources. Line items of expenditure are defined by object classes, that is, charts of accounts. While talking of HR budget, such line items include: • Headcount plan, that is, Number of employee projected (includes organisation structure) • Changes projections in compensation and benefits (inclusive of overtime payments) • New benefits/programmes planned • Assumptions around employee turnover • Assumptions/guidelines for realistic expense level • Social security for employees and corporate citizenship programmes • Other changes in policy, business strategy, law or regulation that may impact costs • Skills e n h a n c e m e n t / p e o p l e development/training cost, and • Cost control and reduction via consulting, savings from compensation, benefits, turnover reduction, developed internal trainers etc Projections are based on actual costs incurred in the past or guesses, depending on the nature of the expense and the data available.</p>
<p>
	It may be difficult to project in the circumstances of significant fluctuations in turnover and staffing needs. Thus HR associates need to gather every source of available data in order to make educated projections. It would also be wise to obtain feedback on essential HR moves from other functional heads that ensures buy-in of projections in view of instilling confidence on the inclusion of their expectations from HR. These are crucial in working out lowcost benefits contributing to increased employee satisfaction. With the shift from traditional to professional working of HR, clearly defined mission, vision and values for HR function becomes a path finder for people managers in streamlining process and securing alignment of total team towards one direction. Currently, HR function in any organisation is evaluated on the basis of people productivity and hence it is widely suggested to work around productivity improvement, product/ service quality delivery and instilling customer satisfaction that undoubtedly secures customer retention and contributes to sales growth with improved profitability. This enables HR to track revenue and profit per employee, that is, a comparative study of employees output against expenses per employee. Analytical Budgeting provides opportunity to HR practitioners around comparing achievements with competition and one’s own past performance that opens the door for continuous improvement. </p>
<p>
	The essence here lies in successful measurements of HR functions assignments and performance as it has a direct impact on the organisation as a whole. The recent studies and human scientists have directed a need to establish a clear numerical relationship between people management and financial performance as it would support translation of strategy into operations, managing and controlling overall performance down to business transactions as a result of improved decision making across the organisation. From an entrepreneur’s view point, employee shares of the rewards of production whether cash or other form of earning are commonly referred to HR expenditure and considered as “Cost”. HR practitioners need to identify the areas of businesses that are growing and work with responsibility centres in such areas. </p>
<p>
	Volunteer themselves around HR support in elimination of barriers experienced by such areas of business in improving productivity and margin. Also establish review process to evaluate impact of HR interventions and once positive impact is visible (which is sure to happen), the business head becomes the HR advocate with the Finance head that ensures full considerations and funding HR initiatives. HR strategies are never stagnant, it is most flexible and shifts focus with changes experienced whether economic or otherwise. </p>
<p>
	Therefore, it would be wise for HR function to prioritise their programmes and services focusing most important areas that have high and visible impact on people productivity as well as producing immediate return to make sure that their budget is accepted as value addition instead of cost. It needs to shift its focus to growth areas that can be served with prioritised HR services. This will improve response time and customer service in total too that will be added advantage for HR to be perceived as responsive productive unit and eradicate the common perception of unresponsive overhead unit within the organisation. To conclude, HR needs to demonstrate competitive advantage for the business in total from the programmes and approaches adopted for budgeting defining difference in ways and means for achievement that confirms result much superior than ever before so that confidence of total business is secured to maintain HR programmes.</p>
<p style="text-align: justify;">
	<em>(Dr Karna is the Executive Chairman of MARK Business Solutions Pvt Ltd and Ad Abhyas Marketing &amp; Communications Pvt Ltd. The article is based on various research reports and his practical experiences as management practitioner.)</em></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Basic needs are considered essential for survival. When we talk about business, the basic elements required to run a business are people resources, materials and machines depending upon the nature of business. While working on a basic need,',
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	(int) 12 => array(
		'Article' => array(
			'id' => '509',
			'article_category_id' => '38',
			'title' => 'Ways Of Appraising Employees',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development. As the last fiscal year ended just a few months ago (i.e. at mid-July), many organisations are now conducting performance appraisals in order to evaluate the yearly performances of its employees. In this context, Real Solutions organised HR Kurakani on ‘Ways of appraising employees’ in order to discuss how to conduct appraisal effectively. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">HR practitioners from diverse fields discussed the ways of appraising and the different ways that it can be accomplished: <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Methods <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Every organisation has its own method of appraising an employee’s performance but some of the popular methods used by various organisations in Nepal are 360 degree appraisal, observation basis and balanced scorecard among others. The performance appraisal forms are filled either manually or through use of certain software packages developed for the purpose. Filling the PA forms should not be biased; but in practice, favoritism does exist within organisations. Therefore, PA should be transparent in order to bring out best results. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Forms <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The participating HR practitioners highlighted on designing questionnaires as per respective job descriptions and found it necessary that they are associated with organisational goals. The questionnaire should be able to analyse different aspects of an employee like communication skills, punctuality, competence, knowledge and overall behaviour among others. Another aspect to be considered while designing the PA forms is the language. The language should be simple, clear and must include both English and Nepali languages and sometimes in other language(s) too, in order to make PA process easier. <br />
	</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">Trend <br />
	</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">It was felt that most of the organisations in Nepal do not carry out appraisals while some others do it just for the sake of doing it. The organisations that conduct appraisals systematically and effectively include multinational companies and international nongovernmental organisations (INGOs).</span></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">PA Outcome</span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">If an organisation conducts PA and takes no action based on the result received, then there’s no point in going through the entire process. The action as a result should not always be an increment in terms of monetary compensation even though it is one of the major aspects. Besides monetary reward, the appraisal outcome can also include non-monetary rewards such as providing holiday packages, training facilities, appreciation and rewarding best employee among others, based on their performances. An increment in salary is expected on a yearly basis when PA is conducted. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">The HR Kurakani participants discussed salary increment criteria such as performance based increment, increment as per government norms, increment as per inflation rate and increment considering an organisation’s values and growth. It was also discussed that yearly PA is not the best way of judging and rewarding employees. If a system can be introduced to appraise employees on a monthly basis, it could be more effective. The participants discussed the possibilities and practicality of such an arrangement. Since it requires greater time investment, the participants suggested conducting biannual PAs and pointed out different ways that can assist appraisals such as critical incident recording, electronic tracking system, introduction of cards for warnings in the event of mistakes committed and encouragement in case of perfect job, external evaluation etc. (The write up is based on an ‘HR Kurakani’ discussion on the topic ‘Ways of Appraising Employees’ conducted by Real Solutions Pvt Ltd. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">The participants at the discussion included representatives from NGOs &amp; INGOs, Hotel Industry, IT and Communication, Automobile Companies, Trading and Service Industries as well as a freelancer. Shailendra Raj Giri, Managing Director of Real Solutions acted as the moderator for the discussion while Nibha Shakya, HR Executive of the company coordinated the event).</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Performance appraisal (PA) is one of the most important methods an organisation can guarantee the continued performance of its employees and support their future development.',
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	(int) 13 => array(
		'Article' => array(
			'id' => '508',
			'article_category_id' => '34',
			'title' => 'Indian Interest Rate 5 Times Higher Than Nepal’s',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank, Nepal’s average real interest rate between 1975 and 2010 remained at mere 1.32 per cent. Similarly, record of Reserve Bank of India (RBI) says average interest rate in India during the same period was 6.68 per cent. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepal had negative real interest rate (after adjusting for inflation) while India had positive real interest reate in most of the years during this period. Economists say that low real interest rate discourages savings and thus slows down the economy’s growth rate. Dr Chiranjivi Nepal, an Economist said that Nepali authorities must consider Indian policies while formulating monetary policy. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">He added, “While Indian central bank has been diligently trying to make sure that the real interest rate is positive, Nepali policy makers seem unaware of the seriousness of this issue.” RBI, in the last 18 months increased bank rate more than 12 times to control inflation and maintain the real interest rate at positive side. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">However, Nepal’s bank rate has remained constant for a long time while the inflation has doubled in last five years. When annual consumer inflation reached 15 per cent, two years back, real interest rate was negative by more than 10 per cent. According to Dr Nepal, the liquidity crunch faced by Nepal’s banking system recently was due mainly to the capital flight induced by the negative real interest rate in Nepal.</span></p>',
			'published' => true,
			'created' => '2011-11-15',
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			'keywords' => '',
			'description' => 'Compared to Nepal, India has five times higher real interest rate. According to statistics of Nepal Rastra Bank,',
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	(int) 14 => array(
		'Article' => array(
			'id' => '507',
			'article_category_id' => '34',
			'title' => 'International Trademark For Nepali Coffee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;">Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for trademark registration in 10 countries including USA, Canada, European Union, Switzerland, Norway, Australia, South Korea, Japan, Hong Kong, and Singapore. Shyam Prasad Bhandari, President of FCT said Nepali coffee is sure to get trademark in many those countries. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size: 14px;">Bhandari said a unique trademark is being developed so that Nepali coffee can be easily identified which in turn helps to enhance the trust level and promote it in the international market. He said it takes six to 18 months for approval and FCT is optimistic to get this brand recognition tool as the demand of Nepali coffee is now growing in these international markets. In the second phase, trademark will be registered in the countries like Bhutan, China, Taiwan, Kenya, UAE, among others. <br />
	</span></p>
<p style="text-align: justify;">
	<span style="font-size:14px;">It has been agreed with Trade and Export Promotion Centre that 70 per cent of the registration cost will be borne by the government and the rest by the traders. Registration of trademark in 10 countries would cost something about Rs 5 million. After this global recognition, all the coffee produced in Nepal will bear an uniform logo. Currently, different producers are using different logos developed by them in isolation .</span></p>',
			'published' => true,
			'created' => '2011-11-15',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Nepali coffee is set to receive trademark also in international arena. Federation of Coffee Traders (FCT) in the recommendation of Nepal Tea and Coffee Development Board has filed application for',
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